Developer Landsec is ramping up plans to establish a £2bn residential platform by 2030 as it shifts investment focus away from London offices and into large-scale housing schemes in the capital and Manchester.

The property giant is preparing to start on site from late 2026 across a trio of major residential-led projects that will deliver more than 6,000 homes.

At Finchley Road in north London, enabling works and demolition have already been completed for the first phase of a consented 1,800-home scheme. Detailed planning is in place for the first 600 homes, with a variation decision expected later this year.

Landsec’s first major urban housing scheme in London at the O2 centre strip site in Finchley

In Manchester, Landsec has restructured its agreement with JV partners at the Mayfield site to unlock the potential for around 1,700 homes. A decision on detailed plans for the first 879 units is also expected in the second half of 2025.

The third key site is in Lewisham, south-east London, where a masterplan covering up to 2,800 homes – including student and co-living accommodation – is awaiting planning sign-off.

Landsec aims to recycle £3bn of capital out of offices and non-core assets to fund the residential push and a further £1bn of retail acquisitions.

Chief executive Mark Allan said: “Our capital allocation decisions from here are about ensuring that the growth outlook for our portfolio in 3-5 years’ time is as positive as it is for our current portfolio today.

“That is why we have set out a clear plan to increase investment in major retail by a further £1bn and establish a £2bn+ residential platform by 2030, to be funded by rotating £3bn of capital out of offices.”

The firm expects gross yields on housing schemes of around 6.5%, with net yields of 4.8–5.5%.

Meanwhile, Landsec has committed £600m to top-tier retail assets including Liverpool ONE and Bluewater over the past year and is targeting another £1bn of investment in prime shopping destinations where yields are currently hitting 7–8%.