Trafford Centre continues growth under new owner
CAPITAL Shopping Centres this morning reported a 32% increase in income during the six months to June 30 2011 to £178m on the back of a five-months contribution from Manchester’s Trafford Centre.
Profits during the period were 34% lower at £193m, which the firm blamed partly on the costs of the £1.6bn deal. However, fears raised by rival bidder Simon Property Group during deal negotiations that it Simon was overpaying and that te deal would dilute CSC’s value currently appear to be unfounded. By June 30,
CSC’s net asset value per share actually increased by 1p to 391p.
The total value of Capital Shopping Centres’ portfolio increased by 35% to £6.9bn, while external debt also grew by 35% to £3.3bn.
The company said that the Trafford Centre had continued to perform strongly since it was acquired in February, with footfall up by 8%.
It also added that management of the centre had now been intergrated into its own activities.
David Fischel, chief executive officer of Capital Shopping Centres, said: “The Trafford Centre has proved an excellent addition and the Group has a range of active management projects and extensions in the pipeline to deliver future growth.
“Although the economic environment remains challenging, large centres such as those owned by CSC with a strong catering and leisure component are continuing to outperform”.
Overall, CSC said that occupancy levels in its centres remained high at around 97% and that overall footfall at its centres were up 3%.
“With 6 per cent growth in like-for-like net rental income and increased footfall at our centres, CSC has delivered a sound operating performance in the first half of 2011,” said Fischel.
