Intu encouraged by retail recovery

TRAFFORD Centre owner Intu Properties said the retail sector is continuing a “gradual” recovery.

In an interim management statement covering the period since July, it said there has been a 15-month unbroken trend of increasing like-for-like non-food retail sales which it puts down to improved consumer sentiment influenced by the stronger housing market and reduced expectations of employment.

“Occupiers are beginning to show more confidence, with continued strong demand from catering and leisure operators and successful retailers taking the opportunity to upsize,” said the company.

Occupancy is unchanged from June at 95%, which includes 1% being traded by administrators but there have been “no significant tenant failures in the quarter”.

Intu signed 57 long-term leases during the period, worth £11m in annual rent. The latest agreements have taken the total for the year to 152 producing £33m.

Intu, formerly Capital Shopping Centres, also owns half of the Arndale in Manchester and 14 other retail centres. Manchester’s Peel Group holds around 20% of the business.