Land Securities, the largest UK REIT, has re-activated its development pipeline to cater for the impending upturn in demand for prime office space in Central London. British Land and Great Portland Estates, two other REITS, have also unveiled development projects for the UK capital.

Land Securities, the largest UK REIT, has re-activated its development pipeline to cater for the impending upturn in demand for prime office space in Central London. British Land and Great Portland Estates, two other REITS, have also unveiled development projects for the UK capital.

The plans have been drawn up in anticipation of tighter supply in the London office rental market as waves of leases come up for renewal in the next few years. According to the Financial Times, up to 325,000 m2 will be up for renegotiation in 2014 - five times the amount this year.

The firm said four central London developments totalling 10,000 m2 are under way and are scheduled for delivery between 2010-13. Planning has been secured for development schemes in London totaling 25,000 m2, with about another 10,000 m2 of London development and refurbishment opportunities in design.

Land Securities said it was in talks with potential partners for a joint venture on its flagship Walkie-Talkie office project at 20 Fenchurch Street.

CEO Francis Salway said: 'We have an unrivalled pipeline of potential projects in our London Portfolio, with over 110,000 m2 of developments already underway and up to a further 400,000 m2 of development and refurbishment opportunities. In retail we have plans aligned to the ongoing evolution in the sector and, through a focus on leasing and delivering occupier-led developments, we will drive growth in capital values.'

Land Securities announced a pre-tax profit of £1 bn (EUR 1.2 bn) for the 12 months to end-March compared to a loss of £4.8 bn in the previous year.

Meanwhile, rival UK REIT British Land has committed nearly £500 mln to develop 111,000 m2 of prime office space, including its flagship Cheesegrater project. And on Thursday Great Portland Estates announced that two transactions totalling £111 mln (EUR 128 mln) in the City of London provided 'numerous opportunities to drive returns through lease re-structuring, refurbishment and in the longer term, a possible wholesale redevelopment'.