TCS prospers in face of spending pressures
TOWN Centre Securities has seen the number of empty stores drop dramatically despite pressures on the retail sector.
The Leeds-based group, which owns shopping venue the Merrion Centre in Leeds, said that its void level now stands at just 2.97%, which is the lowest level in its recent history and a drop from 4.6% at the beginning of the year.
It added that it had achieved a 1.8% like-for-like increase in its rent roll since the start of the year, with 99% of its March quarter day rents collected within five days of the due date.
TCS said that it was continuing with its ongoing plans to refurbish the Merrion centre, adding that it had recently signed deals with tenants including KFC and Coral that will allow it to improve the Merrion Street elevation.
It also said that the opening of the Leeds Arena meant the firm was advancing plans to upgrade the Merrion Centre’s car park and add new retail and leisure units on the ground floor.
The company described the recent run of lettings at its Urban Exchange scheme in Manchester as its main achievement since the start of the year.
It has recently agreed deals with Marks & Spencer, which is opening a 19,000 sq ft outlet store, and with 24-hour gym operator Pure Gym for a further 19,000 sq ft on the lower ground floor of the development.
TCS said that it expects both new tenants to be trading by September, which will leave just one 7,000 sq ft unit available at the 120,000 sq ft building, which had been occupied by Danish furniture retailer Ilva before it went into administration in 2008. Other tenants at the scheme include Go Outdoors and food retailer Aldi.
Chairman Edward Ziff said: “I am delighted to report the excellent letting progress at Urban Exchange in Manchester. We are incredibly pleased to have been able to let a building of this magnitude thereby creating a successful scheme in the midst of a challenging economic climate.”
Ziff said that the firm had “continued to perform strongly” since its half-year ended on December 31, with net debt reducing by £5.7m to £138.9m.
TCS also argued that it has “significant headroom” in its existing loan facilities and that it was continuing to operate comfortably within its banking covenants.
The company is continuing to look for additions to its portfolio, but added that “available opportunities have not met our criteria for property acquisitions where we can create value”.
“This relies on identifying properly priced opportunities with value now rather than the promise of value in the future,” the company said.
