Work to start on White Rose extension next year.

Land Securities Group, which is Britain’s largest listed property developer, posted a 5.7 per cent rise in first-half adjusted net asset value, after strong performance in its retail and London leasing businesses.

The company said its adjusted diluted net asset value - a key measure for developers as it reflects the value of their buildings - rose to 1,367 pence per share from 1,293 pence in the six months ended September 30.

It increased its interim dividend by 3.2 per cent to 16.3 pence per share.

Land Securities also said it had agreed to let space in its Zig Zag office building in London’s Victoria business district to Deutsche Bank on a 15-year lease, in a sign of demand for its properties. The building is now 77 per cent pre-let.

In a statement, Land Securities said: “At White Rose, Leeds, we have detailed planning permission for a 65,000 sq ft leisure extension. We aim to start on site early next year with completion due in 2017. The extension is anchored by an 11 screen Cineworld cinema, including new IMAX technology, and six new restaurants, four of which are already in solicitors’ hands.”

Chief executive Robert Noel said: “Land Securities continues to deliver the right space at the right time, and it’s paying off. Our retail portfolio is performing well and leasing levels in our London developments remain strong.

“In retail, our portfolio is focused around our core themes of dominance, experience and convenience. Since the start of the financial year, we have sold selectively, recycling capital into the redevelopment of Westgate, Oxford, and other development opportunities. Operationally we are strong, with retailer sales and footfall up in our shopping centres and voids down.

“In London, we continue to benefit from our well-timed development programme delivering schemes into today’s supply constrained market. So far this financial year, a further 500,000 sq ft has been let or is in solicitors’ hands. We’re focused on completing and letting up the remainder of our committed projects while progressing a future pipeline.

“Our strategy is working and we are well positioned for the future. We have better assets, with higher quality income, and our balance sheet is stronger than ever. We are delivering for our customers, our communities and our shareholders and look forward to the second half of the year with confidence.”