Development Securities is now entering the realisation phase of the investment strategy it set out in 2009. It has been a long and difficult journey for shareholders - including those who followed our very premature buy advice in 2009 - but the value on offer in the shares is now staggering.
The most recent update, for the period since 1st March, is an impressive catalogue of development projects, mainly on the fringes of London. In Abbey Wood, South East London, DevSec has pre-let a large food store to Sainsbury's, though it has yet to get planning permission for what it hopes will be a mixed-use scheme, including a hotel and 200 flats. In Greenwich, where it has got planning permission for another 2.2-acre mixed-use scheme, it pre-sold the housing plots to Willmott Dixon and the student accommodation plans to McLaren. And so the list goes on.
