Land Secs readies for new buys

By Sinead Cruise

LONDON (Reuters) - Real estate company Land Securities is preparing for a homecoming to the battered commercial property investment market, fuelling hopes a two-year correction in prices is now in its twilight.

After months in the investment wilderness, the country's largest real estate investment trust, said on Wednesday it was preparing to join a growing legion of opportunistic buyers keen to exploit a sharp 45 percent fall in values since June 2007.

"With a strengthened balance sheet we are now assessing opportunities for new investment," Chief Executive Francis Salway said.

"We maintain our view that patience is a virtue and that opportunities will arise over years not just months, particularly in terms of disposals by banks," he said.

By 10:57 a.m. British time, Land Securities' shares were trading 3.3 percent up at 454.75 pence, ahead of a 2.1 percent rise in the FTSE 350 Real Estate Index. KBC Peel Hunt upgraded the shares to a Buy rating with a 490 pence target price.

"Management have made good progress de-leveraging since the rights issue and have achieved half our expected sales target," analysts at KBC Peel Hunt said.

The stock has lost almost half its value in the year to date, following analysts' criticisms of below-benchmark results, reports of boardroom tension and a lack of strategic clarity since it axed a demerger plan in November.

Salway said the firm was honing in on income-producing buys in the retail sector, but was also weighing acquisitions in Greater London, where it could add value to real estate via redevelopment.