Property firm’s results “in line with expectations”
A Leeds property investment, development and car parking company has today released its annual accounts, showing an EPRA profit before tax of £7m which was “in line with expectations.”
Town Centre Securities (TCS) released results for the Year to June 2017, which highlighted that occupancy also remains high across its portfolio at 99%. The company saw a like for like investment property valuation decrease of 1.4% (2016:0.2%), development property increase of 20.1% (2016:23.5%) and that overall property valuation was flat (2016:2.2%).
A EPRA profit before tax of £7m (2016: £6.6m), which excludes property revaluation and property disposals, was reported – which the company said was is in line with expectations.
The year saw TCS complete sales of properties in Scotland for a total of £19.5m and good progress with the Merrion Centre enhancements in Leeds, with the arena quarter now fully let – adding another £155,000 annualised to income.
The total number of transactions stood at 178, up from 141 in the previous year. A development programme was on track to deliver increases of £1.8m per annum in income and over £10m in net assets.
In its property division,Merrion House in Leeds is expected to complete in January 2018 and the ibis Styles Hotel in Leeds, which opened in March, is trading above expectations. On Whitehall Road in Leeds, the firm handed over the premises to Premier Inn in February.
The firm sold the long lease of a 0.6 acre section on a Manchester site for £2.775m to Evans, who have obtained planning permission for a 137 bedroom 5 star Dakota Deluxe Hotel
TCS has purchased Evans’ joint venture shares to take 100% ownership of Buckley House on Vicar Lane, Leeds, for £1.8m. TCS now controls the full island site at the front of the new Victoria Gate (John Lewis) shopping centre.
An expansion was seen in the car parking business, CitiPark, and a 16th car park was acquired at Rickmansworth underground station for £2.3m; a freehold 140 space multi storey branch.
Edward Ziff, chairman and chief executive of TCS, said: “We are pleased with the progress that we achieved last year which belied the market backdrop of economic and political uncertainty following the Brexit referendum.
“Our continuing intensive management of the portfolio has again produced increases in rental income and capital value, broadly mitigating those assets which experienced market driven falls in value.
“Our capital recycling programme has accelerated with the disposals from our Scottish portfolio and we expect to make further disposals this year. We are actively looking to reinvest the proceeds of these sales as and when we see the right opportunities.
“The development programme has gone well and continues to drive increases in income throughout the portfolio which has allowed us to be bold in terms of disposing of mature properties. The portfolio holds extensive further development opportunities.“
Richard Lewis, the group property director of Town Centre Securities, will speak about the Whitehall development and the wider growth of Leeds city centre at a property lunch hosted by TheBusinessDesk.com on Friday 29 September, from noon-3pm at Bibis on Sovereign Street, Leeds. The last few remaining tickets are available, pleaces must be booked online advance.