Strong half year for Town Centre Securities
Property investment, development and car parking company Town Centre Securities Plc has hailed a strong half year, boosted by a strong portfolio and asset disposals.
In the half year to the end of December, the Leeds-based company said it has continued to make good progress in the on-going strengthening and improvement of its portfolio, and in the CitiPark car parking operation.
Since its year end results reported in September, TSC has made further asset disposals, was appointed development and joint venture partner with Leeds City Council in a key new scheme, and is due to complete the Merrion House development in the next few weeks on time and budget.
The company said like-for-like passing rent is up by 2.2% (30 June 2017: 2.3%) while reporting overall occupancy levels of 99% while its CitiPark continues to grow its revenues and profits.
TCS has been selected by Leeds City Council to develop a scheme in George Street, Leeds to deliver a 117-unit aparthotel with a further nine commercial units.
Meanwhile, the company said its ibis Styles hotel in Leeds, which opened in April 2017 and is operated under a management agreement, has performed strongly in its first nine months of trading.
Disposals made over the last 12 months comprise four properties sold for over £25m in total, all at, or above, valuation. TCS said the disposals have provided capital to invest in its development programme. On an annualised basis the combination of the two new hotels and the increase in Merrion House rents will more than offset the £1.5m income lost due to these disposals.
The company recently announced the appointment of Jeremy Collins, former John Lewis property director, to the board as an independent non-executive director.
Edward Ziff, chairman and chief executive, said: “We continue to successfully deliver considerable change within our portfolio. The combination of asset recycling, intensive asset management, and a strong development pipeline ensure that our future potential is being enhanced, whilst providing new opportunities for growth in income and valuations.
“The strength of our unique portfolio, and the success of the most recent development phase have allowed us to be bold in the sale of more mature assets. Furthermore, the strength of our CitiPark business continues to support financial delivery, whilst also bringing new opportunities such as YourParkingSpace.co.uk. We look forward to the future with confidence.”
