LandSecs hits out over transport

LACK of investment in London's transport and infrastructure is threatening its position as one of the world's leading financial and cultural centres, according to the chief of Britain's largest property company.

Ian Henderson, chief executive of Land Securities, urged immediate action 'to ensure that London's position as a major generator of wealth for this country is not impaired'.

Henderson complained about the squabbling by politicians at both national and local level. 'The issue appears to be high on the political agenda but no action is being taken,' he said. 'This has resulted in London being unable to meet the standards expected of a world-class city.'

Henderson singled out London Underground as the main problem 'both for London workers and tourists'. He also wants to see more money spent on the capital's infrastructure. 'Trains and drains are vital for London's future,' he said.

The group is contributing its own changes to the London skyline. The former MI5 tower block, the Empress State Building in Earls Court, west London, is to be refurbished by Land Securities as a series of small offices on short leases.

The distinctive blue and white building, topped by a glass airport-style observation station, was the secret outpost of MI5 during the Cold War. Land Securities plans to extend the building to attract small businesses and start ups with short-term leases.

Land Securities has concentrated on London in the past few years and in the six months that ended in September it boosted pre-tax profits by 12.6% to £168.6m. Chairman Peter Birch said: 'Although economic conditions remain uncertain, interest rates are at a long-term low in the UK, making property yields attractive for investors.' Land Securities shares added 12p to 875p.

Another property man, Mike Slade, who has switched property group Helical Bar almost exclusively into London in the past five years, believes that the 'froth is coming off' office and shop rents. He said London rents are coming down, but that London will retain its position as Europe's best market.

In the six months to September pre-tax profits at Helical slipped to £11.1m, having been boosted by large property sales to £15.1m in the same period last year. The interim dividend is increased 10% to 5.5p. Helical Bar shares slipped 2 1/2p to 766 1/2p.