21st Jan 2019 10:03
LONDON (Alliance News) - Property investor and car park operator Town Centre Securities PLC on Monday said it saw a slowdown in like-for-like passing rent, as it continues to reposition its portfolio.
For the six months to the end of December, the key measure grew by 0.9%, slower compared to the 4.1% growth reported for the year ended June 30, 2018.
In addition, overall occupancy increased slightly to 96% from 95% the previous period.
During the period, Town Centre refinanced the Merrion House property in Leeds, providing financial flexibility for the company, and the CitiPark business saw a rise in profit and revenue.
Town Centre continued to reposition its property portfolio, which saw the proportion of retail and leisure assets drop to 52% from 70% in 2016.
During the recent six months, the company sold the Rochdale Central Retail Park for GBP13.2 million. In turn, Town Centre acquired The Cube In Leeds for GBP12.8 million, a Glasgow retail unit for GBP2.6 million, and a retail and residential unit in London for GBP1.7 million.
Together, these acquisitions will generate ongoing annual income of GBP1.4 million.
Town Centre has continued to work with Leeds City Council to develop a 126-room "Apart-Hotel", with construction work due to begin within the year.
In Manchester, The 91-unit residential scheme known as Burlington House is expected to be practically completed in May, and private rented sector development Eider House is due to start ground works within the year.
"We continue to improve our portfolio and maintain our track record of managing the business for long-term success, notwithstanding that the combination of Brexit uncertainty and continued seismic change in retailing makes it a tougher environment in which to operate. This means the importance of our development pipeline, that we have built up over time into a sizable opportunity, is clearer than ever," said Edward Ziff, chairman and chief executive.
Town Centre Securities will publish its interim results on February 26.
Shares in Town Centre Securities were untraded on Monday, last closing at 224.00 pence.