Trafford Centre continues recovery from pandemic impact on retail

Retail and leisure site, The Trafford Centre, is recovering following the impact of the COVID-19 pandemic.

Trafford Centre Finance issued an investor update that outlined progress at the site, which was built in 1998 and extended in 2009.

Originally developed by Peel Group and now owned by CPPIB since 2020, the site is one of six super-regional shopping centres in the UK, and number one outside London.

In August this year, bondholders agreed to the group returning to REIT status. This is expected to occur early next month.

Currently there are 153 tenants in total, with 93.5% of space currently occupied as at June 30.

There has been an improvement in valuation by two per cent, to £913m, due to improvement in income, compared with an eight per cent average decline across the UK retail property sector.

Footfall has consistently improved since the pandemic, and in the second quarter was slightly ahead of the previous quarter, at 0.6%, but 10% below pre-pandemic levels.

At the end of Q2, the cumulative 2023 year to date footfall figure sat at +2.8% versus 2022. Quarter three has been more positive with the latest YTD figure running at +4.6% versus 2022.

By June, billed rental stood at £14,601,330, while the figure collected was £13,934,388, a 95% rate, compared with 94% the previous year.

The latest figures show that total revenues in the half year 2023 were £44m, up from £41.9m in 2022.

The site achieved an operating profit of £37.5m, compared with £26.6m the previous year. Cash at the end of the period stood at £30.8m, up from £26.4m in 2022.