5th Feb 2016 09:59
LONDON (Alliance News) - Leeds-based property investor and car park operator Town Centre Securities PLC announced on Friday the acquisition of four retail units in London, the disposal of a site in Glasgow, and the signing of a 25-year lease with Premier Inn for a hotel being built on Whitehall Road in Leeds.
In a portfolio activity update, Town Centre Securities said it purchased four retail units, located in Wood Green, London, for a total of GBP7.3 million, and said the properties will provide a combined income of GBP400,000 per year, reflecting a yield of 5.5%.
It said it will refurbish the units to raise the rental income potential of the properties and a programme to convert the upper floors into residential accommodation is already underway.
Town Centre Securities said part of the funding for this will come from its capital recycling programme, in which it is selling properties to free up funds for new, higher growth opportunities. Under this scheme, it said it disposed of a site on Bothwell Street in Glasgow for GBP7.0 million.
Elsewhere, Town Centre Securities announced it had signed a lease with Premier Inn, part of Whitbread PLC, for a 136-bedroom hotel to be built on Whitehall Road in Leeds as part of Town Centre Securities' Whitehall Riverside Scheme, aimed at regenerating the West End of the city.
"We continue to focus on investing in higher-growth opportunities including our own development pipeline, whilst continuing our capital recycling programme to provide some of the funding," said Chairman and Chief Executive Edward Ziff.
The build contract is GBP10.0 million, and the value of the site upon completion, expected in 2017, is estimated to be in excess of GBP12.5 million.
Town Centre Securities shares were up 3.2% on Friday at 311.75 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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