New tenant on horizon at Piccadilly Basin

PROPERTY company Town Centre Securities is hoping to have a new tenant on its landmark Piccadilly Basin site in Manchester in the next few months.

The Yorkshire company said another chunk of the 120,000sq foot site – vacated by collapsed furniture retailer Ilva – was under offer, but did not name the interested party.

Discount food chain Aldi has already entered the space – taking 16,000 sq ft – while there has been rumours that department store chain Beales and a gym operator are interested too.

The update came as TCS returned to profit and said it was on the look out for new stock.

Edward Ziff, chairman and chief executive of the Leeds-based firm, said TCS was in a “robust position” thanks to tight control of  its finances.

For the six months ended December 31, 2009 TCS made a £31.5m profit compared to a £72.9m loss last time.

Net asset value per share increased to 257p from 202p, while TCS made a £9m profit on the repurchase of debenture stock.

TCS is proposing and interim dividend of 3.02p per share.

Despite the positive interim results, Mr Ziff said the company was still viewing 2010 with caution but said there was “evidence of  a slight improvement” in the property sector.

Occupancy levels across TCS’s stock rose to 93% over the period, while the company brought in £17m from property sales, including disposals in Wrexham and Manchester.

Empty space at the Piccadilly Basin scheme in Manchester represents 50% of total voids.

Gross borrowings at December 31 were £146.7m compared to £185.3m on June 30, following the repurchase of debenture  stock and property sales.
Mr Ziff added that activity was coming back into the investment market.