Aldi to open store on Ilva site

DISCOUNT retailer Aldi is to open a 17,000sq ft store in Piccadilly Basin in Manchester, it emerged today.

Landlord Town Centre Securities, said the letting to the successful grocery chain, was a “very important first step in re-establishing the value of its retail store”, which was hit by the UK collapse of Scandinavian homewares chain Ilva.

Yorkshire-based  TCS said the new supermarket would open in November and that it was looking at other “exciting ideas for the rest of the property.”

In its annual figures Town Centre Securities posted a pre-tax loss of £112m last year due to the fall in value of its portfolio, but said  it was in a strong position to take advantage of market opportunities going forward.

The group said that it had improved underlying profits to £7.9m in the 12 months to June 30 thanks to the sale of some of its properties and prudent cost cutting measures.

The revaluation of its portfolio saw £107.7m wiped off its value, following a drop of £75.3m the previous year.

Following its year end the company bought back £43.8m of debenture stock at a cost of £34m which has reduced its debt by £9m, net of costs.

The group said it had completed major refurbishment projects at the Merrion Centre in Leeds, Deansgate in Manchester and West Park, Harrogate.

Chairman and chief executive Edward Ziff, said: “We acted quickly and decisively ahead of a tumultuous year for the commercial property industry.

“The early sale of properties and the reduction of costs in our business, however unwelcome, have enabled us to improve underlying profit, hold the dividend and work well within our financing covenants.

“Together with the debenture buy back completed in August, these actions put us in a strong position to take advantage of the opportunities which I believe will emerge as the market begins to stabilise.”