Land Securities Marketing Analysis

Report presented by Kelly BENAKSAS

Student Number : Q12503193

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STRATEGY FOR MANAGEMENT AND MARKETING (STR364)

BUSINESS ADMINISTRATION

2119 words                                                                                2015/2016

Table of contents

INTRODUCTION        

I.        Real Estate Market in the United Kingdom        

1.        Market analysis from an economic and political point of view        

2.        Real estate market : a competitive market in the UK        

II.        Land Securities Groupe PLC        

1.        Presentation of the company        

2.        Strategy of the company        

3.        Business model as a competitive adavantage : Buy, Develop, Manage, Sell        

III.        The Zig Zag Building (or Thoughtful Building)        

1.        Project’s presentation        

2.        Application of Land Securities’s stratagy        

IV.        Aspirations of the Land Securities’ key stakeholders        

1.        Investors        

2.        Shareholders        

3.        Employees        

4.        Customers        

CONCLUSION        

References        

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INTRODUCTION

The real estate market in the UK registered significant transactions in the last two year.        

Indeed, 2014 was an excellent year for the real estate market in the UK with an average performance for properties between 18% and 19% ; supported by investment operations of about 53 billion pounds.

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London is then described as a « city of refuge » by investors and the third city (after Munich and Berlin) where it is worth investing, according to the ranking made by Emerging Trends in Real Estate Europe.

Moreover, in 2014, foreign investors were the main investors in the UK with 39% of the volume of transactions. British institutions represent also the second largest class of investors, with 30% of the country’s investments.

Thus, the demand for quality assets remains high in the UK. That is considered as a performance tool and as a store of value for British and foreign investors.

Since the market is attractive, there are a lot of competitors specified (or diversified) in the office, industrial and retail market.

        Among all the companies that interact in the market, we will focus on Land Securities and its strategy to stay among the market’ leaders.

1. Real Estate Market in the United Kingdom

1. Market analysis from an economic and political point of view

First of all, make the state of the current market in England and therefore the elements to be taken in account by the companies exerting on this market

The present economic situation pushing market’ players to invest in the real estate market.

Indeed, even if the crisis impacted heavily the market in 2008, it is possible to see now a recovery of the economy with an increase of the demand and size of transactions. The high value of Central London Office transactions is nearly three times bigger than the long run average. It is possible to say the London markets have resumed their importance and performance.

Furthermore, the stability of sterling and the market liquidity are advantages which allows investors to invest without a lot of risk.

However, The Bank of England, three former British finance ministers and the Organisation for Economic Cooperation and Development (OECD) are concerned about the swelling of a property bubble in the UK. London was able to register new all-time records in terms of prcie, especially for this last year where the level reached in 2008 was exceeded. For the territory as a whole, the summot formed 6 years ago has not yet been reached. Probably a matter of a few months.

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Poltical and legal criterias are also significant in this market.

When investors invest, it is important to take into account that builings are subject to English law and therefore the British government. Moreover, if investors want to construct buildings they have to know that planning permission for building are hard to have ; and there are environmental stadars to be observed.

1. Real estate market : a competitive market in the UK

According to the UK-REIT Survey 2012, there are 25 UK-REITs owning 45 billion pounds of property assets, and the market continues to grow now.

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