Trafford Centre outperforms market
DESPITE the difficulties in the wider retail market, The Trafford Centre enjoyed a bumper 2011, according to newly-filed accounts.
The centre, which was bought from Peel by Capital Shopping Centres (CSC) in a £1.6bn deal in January 2011, saw its turnover grow to £97m, compared with £70.9m for the nine months to December 2010. Rental income also increased to £81.2m (9 months 2010: £57.2m), although pre-tax profits dipped slightly to £26.2m (£32.1m). This was due partly to higher interest payments of £54.2m (£25.1m) on its debts.
Visitor numbers also increased by 1.1%, despite the fact that shoppers have generally been making fewer car journeys.
A report accompanying the Trafford Centre’s accounts prepared by CSC’s finance director, Matthew Roberts, said that it “continued to improve as evidenced by improving tenant mix, new bigger and better flagship stores and net rental income growth.”
It attracted a new group of retailers including Banana Republic, Boux Avenue, VANS, Elvis Jesus Jeans, North Face and Bose.
“In total, 18 new stores and 23 refits account for £15m of new tenant investment into the centre,” said Roberts.
“Our continued strategy to refuse to compromise tenant mix has been a key part of the success of the centre, attracting new customers and maintaining a very strong retail and catering line-up that is refreshed.”
He added that several of the centre’s retailers – including Superdry, La Senza and WH Smith – had taken extra space in the centre,
Several tenants who have been in the centre since its opening in 1998 are on 15-year leases which are due to expire in 2013.
“With the continued appetite for new space on ERV rental terms and the low level of voids in the centre, we are now well-placed to move forward in renewing, re-gearing and securing new high quality tenants to the centre,” said Roberts.
In a recent trading update, CSC said it was planning a £50m investment in the centre, including “a major new leisure attraction” at Barton Square, which is understood to be an aquarium.
