TCS hails successes at Urban Exchange

TOWN Centre Securities, the Leeds-based property investment and development company, announced underlying pre-tax profits of £8.2m for the year to the end of June – up from £7.6m last year.

The company also said there had been “significant improvements” at its Urban Exchange development in Manchester where lettings to Go Outdoors, M&S and Pure Gym had left just 7,200 sq ft vacant. The unit had previously been occupied exclusively by Danish furniture retailer Ilva until was placed into administration in 2008.

The company also said it was looking to capitalise on the opening of the Leeds Arena after seeing income from the Merrion shopping centre grow for the sixth year in a row.

TCS has asked for planning permission for a new development of bars, restaurants and a gym to replace the former Merrion Market and create a new frontage for the centre, with a view to capitalising on the development of the Leeds Arena nearby.

TCS chairman and chief executive Edward Ziff said: “We continue to implement our strategy for growth.  Our results reflect our emphasis on securing income for shareholders and the returns we have made by investing in our existing portfolio. 

“We remain cautious about the economy however and are wary of the potential for tenant failures and pressure on rental levels.

“Our investment in Urban Exchange in Manchester demonstrates our ability to successfully redevelop and manage major retail assets and to attract major tenants.

“We firmly believe that projects at Merrion Centre in particular and across our remaining portfolio will in due course enhance our asset value and income generation, ultimately improving our returns and thereby enhancing shareholder value.”

Occupancy levels across the TCS portfolio grew from 93.2% to 96.9% while the disposal of assets generated £6.5m.