Uncertain retail climate leads to caution for TCS

TOWN Centre Securities today sounded a note of caution for the property market after admitting it was approaching the future with caution.

The Leeds-based property investment and development company said in an interim management statement this morning that it had continued to focus on the management of its existing portfolio of properties and car parks.

The owner of the Merrion Centre, which is set to undergo a major refurbishment programme, said trading had been in line with management expectations and had been consistent with the same period last year.

Chairman Edward Ziff said: “We continue to maintain a very strong focus on managing our assets effectively and this is reflected in our void rate remaining close to 3%. 

“We are pleased with progress so far at Urban Exchange where our tenants are trading satisfactorily.  There is, however, uncertainty for the retail sector at present and we remain cautious about the future as a result.”

TCS said it had been working with its tenants at its Urban Exchange scheme in Manchester to develop a successful brand for the outlet centre. Only one unit of 7,000 sq ft remains unoccupied at the 140,000 sq ft scheme.

The group said the construction of the 13,500 capacity Leeds Arena had accelerated plans for it refurbishing the Merrion Centre, which it hopes to be on site to advance in early 2012.

TCS said discussions were at an “advanced stage” to complete the refinancing of its banking facilities and it said it was on the hunt for investment opportunities to grow its property and car park portfolios.

The group said it was progressing its joint venture with Metric Property Investments in Rochdale and, subject to suitable tenants being found, TCS expects to be on site in the latter half of 2012.

Car parking revenues are also in line with expectations despite increasing competition and market conditions.