Confident outlook at ‘reset’ property investment business
Leeds-headquartered property investment, development, hotel and car parking company, Town Centre Securities, (TCS) has hailed a strong financial position as it publishes its final results for the year ended 30 June 2024.
It has reported a reduced statutory loss before tax of £8m (FY23: loss of £29.5m) and gross revenue of £29m (FY23: £27.6m).
The like-for-like value of TCS’s portfolio decreased by 4.7% (£12.1m) after capital expenditure of £4m in the year and 99% of all rent and service charge income invoiced in the year was collected.
Chairman and chief executive, Edward Ziff, said: “We have benefited from the last three years’ disposal and asset management programmes and reduction in borrowings, which positioned us well to contend with the ongoing macro-economic challenges.
“Our property rental business, car park and hotel operations continue to deliver resilient underlying revenues and earnings.
“Our attention is now focusing on investing in our development programme over the coming years. However we remain ever mindful that taking advantage of potentially accretive opportunities needs to be balanced against retaining robust finances.
“Overall, the business has now been reset, with a more diverse portfolio of assets, lower levels of gearing and more importantly historically low levels of variable rate borrowings – and is now looking predominantly at bringing forward our development pipeline.
“As we were going to print, we received sad news regarding two former directors of the company. David Whitehead, a former executive director and John Nettleton, a former non-executive director have both sadly passed away in the last few days.
“Full obituaries for both individuals will be incorporated into next year’s annual report. In the meantime our thoughts and prayers are with both families at this time.
“Both gentlemen added considerably to the company with their own skills. I am personally much indebted to them and I am extremely grateful for all they did, their friendship and wise counsel. I and all who knew them will miss them enormously.”
TCS adds that its strategy of active management and redevelopment, to drive income and capital growth has continued.
The business says it now has a well diversified portfolio comprising: 30% invested in retail and leisure; 29% offices; 16% car parks; 13% residential; 8% developments; and 4% hotels. 88% of the portfolio is in Leeds and Manchester.
TCS says its development pipeline has an estimated GDV of over £400m. In December 2023 it lodged a planning application for student apartments at the Leeds Merrion Centre. This incorporates a 1,110 new bed purpose built student accommodation scheme.
The company also increased the number of car parks operated under its CitiPark brand to 20, with three new car park management agreements secured in the year.
TCS notes it continues to explore opportunities to acquire assets in Leeds and Manchester and has an appetite to make acquisitions in London.
