Land Securities Property Group Essay Example | Topics and Well Written Essays - 2000 words

Land Securities Property Group - Essay Example Investors often went for choosing commercial properties in place of bonds as investments because it offered very good return. Soon after 2007, this lucrative area of investment really became a nightmare zone for investors. The real estate industry faced setbacks due to globalisation, change in the economic scenario, recession, and sub-prime mortgage crisis. The property prices fell up to 50 percent. The commercial property industry revived by 2009 but the revival was not constant. There no stability in this industry anymore. The profits and losses in the real estate industry have become unpredictable. Moreover, the risk involved in investing in commercial property also pulled back the investors from such investments (Pickup & Derbyshire, 2010, p. 259-263). The economic downturn affected all the countries round the world. The intensity may be different but the dropping sales figures and decreasing revenue has been the scenario for most of the countries. The shops remained empty and th is further affected the property owners dealing in commercial property business. Many banks and companies declared themselves insolvent and filed for bankruptcy. In the backdrop of such economic scenario, we will analyse the position of the Commercial real-estate industry. Land Securities Group is one of the major players in the commercial property Industry in United Kingdom. Though the balance sheet of the company is showing positive results, but the market is not. The company is big and the capital base of the company is strong. The retail industry is facing huge losses And Retail giants such as Game, HMV or other super markets are have empty shops. In the study the analysis of the company Land Securities Group, is done keeping in mind the objectives behind the analysis: To study the competitive advantages and Strategies of Land Securities To analyse the complete external and internal environmental condition of the company. To see the status of its competitors To make projections regarding the future prospects of the commercial property Industry. Company Profile Land Securities Group is one of the largest commercial property companies in United Kingdom. It came into existence in the year 1944. Their main area of business is to develop shopping centres, retail shops and warehouses, offices and other commercial buildings. They are into maintenance, development, repairing of the property in both public and private sectors. Land Securities group is also into development of the urban community. For this purpose it has planned a multi-billion development program. Land Securities has a total of ? 4.9 billion of retail portfolio value. It owns more than 24 shopping centres and 19 retail parks. About ? 20.6 million sq. ft. of retail accommodation is developed by land securities group. The company is listed in London stock exchange. It has an operating income of ? 1244.1 million in 2011. Land Securities group also provides employment to more than 700 people. The compa ny has received several awards. It has received the Landlord of the year award, BCSC Gold Awards for retail Town Scheme and also National Property Company of the year award in 2011 (Landsecurities, 2012). Environmental Analysis PEST ANALYSIS PEST Analysis is mainly done to study the external environment for the company. Land Securities group is a company mainly situated in UK, which is going through its longest