6th Nov 2015 07:38
LONDON (Alliance News) - Shopping centre developer and owner Intu Properties PLC on Friday said it remains confident of delivering rental growth for the full year and said its occupancy rate has improved in the second half.
The FTSE 100-listed group said it remains on target to deliver like-for-like net rental income growth for 2015, having seen a 1.0% decline in the first half, after improving lettings and rising occupancy was seen in the period from July 1 to November 6.
Retail demand has improved in the second half, with Intu signing 84 new long-term leases for a total of GBP18.0 million in annual rent, 11% higher than the previous passing rent on the properties and in line with the group's valuation assumptions. For the full year, its new leases are running 12% above previous passing rates.
Occupancy at its properties has increased to 95.5%, up 40 basis points since the end of June, while footfall is marginally higher in the UK and rose 5.0% in Spain, both ahead of their respective benchmarks.
The group said its development plans in the UK are on track, with GBP60.0 million worth of work completed at the Intu Victoria Centre and Intu Potteries.
"The economic recovery is now more obviously rippling out from London and the South East to other regions of the UK and our prime centres across the country are seeing strengthening underlying retailer sales performance," said David Fischel, Intu's chief executive.
"As this translates into improved demand for space and rising occupancy, we look forward to a return to like-for-like net rental income growth for 2015 and are well positioned for a more meaningful uplift next year," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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