Commercial Property News

 Land Securities Group Plc, Britain’s largest REIT, may revive a plan to build the London skyscraper known as the Walkie-Talkie as rents start to rebound.

Land Securities,  put the project on hold in 2008 because of the slump in the commercial property market. The Walkie Talkie, named because of its resemblance to two-way radios, was due to be built on a site at 20 Fenchurch Street in the City.

“We have just started to think about the potential timing,” CEO Francis Salway said on a conference call with reporters today. “A development in the West End is viable at today’s rents.” The City of London, though, is “probably about nine to 12 months behind.”

Land Securities wouldn’t proceed with the Walkie-Talkie until it found a tenant to fill the 600,000 square feet (55,000 square meters) of office space in the Rafael Vinoly-designed building, the company said in May 2008. The tower would have a height of 155 meters (509 feet).

Land Securities also published it's Q3 trading results today and said that it was starting construction on 3 major London office projects in the West End, at Park House Mayfair, Wellington House SW1 and Selbourne House SW1, with a total development cost, including land and finance, of around £655million, with all set to be complete by summer 2013.

A mixture of residential and business property are to be built at the sites and director of development for Land Securities London Portfolio Colette O'Shea said that the designs "will really make a difference to the West End".

She added that they also highlight the firm's "consistent commitment to the future of London through investment and thoughtful design".

Park House, which will be the largest development on Oxford Street for 40 years, will include 15,140 sq m of office space, while Selborne house is set to feature 8,140 sq m of offices.

Last month, the company announced the purchase of the Atlas Site property on Glasgow's Buchanan Street.

Commenting on the quarter,  Francis Salway said:

"The business continues to perform well against our operational targets and we are pleased that our portfolio is proving its appeal to occupiers with ongoing lettings, while our financial strength allows us to be first off the block with our London development programme."