Our strategy comprises of three priority areas as we reshape the portfolio and position Landsec for growth
We have identified six areas of competitive advantage for Landsec:
1. The quality of our portfolio – our Central London portfolio, in particular, represents a strong foundation from which to build a growth-focused strategy. Its quality, resilience and liquidity will allow us to recycle capital into growth areas over time.
In retail, outlets were performing strongly prior to Covid-19 and are showing the strongest signs of recovery. While regional shopping centres are structurally challenged, the quality of our centres means we have the opportunity to reimagine this space.
2. Our track record, reputation and relationships have been crucial to our success in the past and will be critical in the future.
3. Our scale enables us to access and deploy capital quickly and cost effectively.
4. Our development expertise – between 2010 and 2017, we delivered £1.5bn of value across a 3.4 million square foot development programme. The skills we have deployed in London offices, and retail, are adaptable and transferable into adjacent sectors where we see opportunities for growth.
5. Our ESG leadership is recognised as important to our customers, shareholders and other stakeholders. We are proud to lead the industry in this area and see ESG as a source of strength for the business going forward.
6. Our people bring together all our sources of competitive advantage and can unlock the potential in our portfolio.

Sustainable places. Connecting communities. Realising potential.
In order to deliver a successful strategy, businesses need a clear purpose which articulates the value they bring to all their stakeholders.
Our purpose captures the things that Landsec already understands and does well. But it also captures the things society, and cities in particular, will need in order to thrive. We have the opportunity to excel in these areas to establish real, lasting competitive advantage.
In developing our strategy, we considered long term macro trends. We identified six global forces of change likely to shape the future and which will be key to understanding the opportunities and threats that Landsec is likely to encounter in the long term.
- Rapid urbanisation – One in three people will live in cities of at least 500,000 habitants by the year 2030 (source: UN).
- Demographic and social change - A global population boom, paired with people living longer and having fewer children, will drive significant demographic shifts.
- Technologically advanced living - The digital landscape will continue to disrupt how we live, work, communicate, shop and beyond.
- Climate change and resource scarcity - Growing energy, water and food demands, alongside rising weather and health events show the global need to reverse environmental degradation.
- Borderless access - The liberalisation of global economic policy and the accessibility of air travel has opened borders, supply chains and trade patterns.
- Shifts in global economic power - Political unrest, populism, trade wars and mounting recessions are reshaping the map of economic power and driving new culture clashes.
Our strategy factors in all of these global forces for change whether they are impacting the built environment or they have wider societal and economic implications.

Our places
Central London
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Major retail destinations
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Mixed-use urban neighbourhoods
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In central London, we develop, own and manage offices that offer a variety of propositions to meet the evolving needs of occupiers, who range from global corporates to small, fast-growing businesses. Demand for our high-quality, sustainable office space is healthy, and
this part of the portfolio can offer a blend of returns; from high-quality, low-risk income, through to profits from new development.

In retail, we own and manage high quality, major retail destinations that offer something special to brands and shoppers alike, in an increasingly omnichannel world. Shoppers are attracted to places that offer experiences they can’t easily get elsewhere; brands are drawn to places where they can showcase their offer to a high number of shoppers. Our job is to bring the two together. Our high-quality portfolio, strong brand partner relationships and deep understanding of shoppers give us a real competitive edge.

Our focus on developing and investing in mixed-use urban neighbourhoods recognises that the lines between where we live, work and spend our leisure time are becoming increasingly blurred. This is creating an urgent need to reshape our cities so they are fit for the future. We are using our scale, expertise and experience to help adapt the built environment to meet people’s changing needs. These projects take shape over a number of years and multiple phases, meaning each project can offer an attractive blend of income, growth and development-led returns over several years. Importantly, the phased nature of these projects means we can realise returns in stages, rather than wait for the overall completion of the project.
Key performance drivers
We have a track record of delivering developments in London and across the UK. Our expertise lends itself to large, complex, long-term projects that can focus on the needs of multiple customer segments.
We also take an innovative approach - leading our sector in applying Design for Manufacture and Assembly and Modern Methods of Construction. Our sustainable development practises can help lower our carbon impact and differentiate our end-product with customers, eventually leading to increased returns.

Our strategy is driven by disciplined capital allocation. We are investing in sectors and assets that can thrive throughout the cycle to achieve a premium net asset valuation. We also consider managing property for fee income or using attractively priced partner capital.

Our customers are at the heart of our strategy. We apply a customer-centric approach to all aspects of our business. Some examples include:
- Building a deep understanding of evolving customer needs to ensure we design market-leading propositions.
- Measuring and tracking all facets of the customer experience across our portfolio to enable proactive interventions and validate the impact of our actions on key customer metrics e.g. churn and retention.
- Enabling clear articulation of who our customers are and how we can deliver value to them.
- Customer centricity has always been important, but as our customers manage and respond to the challenges of Covid-19 and other changes in their needs, customer focus will be essential to ensure we find mutually beneficial solutions.
This performance driver is not about how much data we have, but how we use it to enhance all aspects of our business. A data driven approach will enable us to:
- Build data as a strategic asset for the long-term, blending proprietary and public data to enable focused, strategic decision making.
- Set the foundations, then benefit from our transition to being a 'modern digital business’.
- Create increased/additional value and income through new propositions and routes to market.
ESG leadership remains an essential strength and has always been central to how we do business as occupiers and consumers increasingly expect our spaces to satisfy both sustainability and wellbeing credentials. Whether it is the way we design and operate our buildings, or activity to reduce our carbon footprint or the importance we place on making sure our assets and activity enhance local communities and support those most in need of help.
We lead the industry in pursuit of our science-based environmental targets. We take a proactive approach to our social and environmental impact, making investments which lead to positive employee and stakeholder experiences. this helps ensure the business remains attractive and relevant, and creates value in the long term.
Delivering
For our shareholders
Total returns, delivered through the cycle
A focus on creating value
Higher operational leverage, offset by lower financial leverage
For other stakeholders
A continued commitment to transition to zero
A partnership-based approach
The creation of vibrant communities with a lasting sense of place
For our culture and organisation
Outward-facing and customer-led
Lean, agile, nimble, empowered and supportive
Driven to be customer-centric and data-led