TCS optimistic about building bright future
PROPERTY group Town Centre Securities has said it will continue to look for investment and development opportunities despite what it described as “very challenging times” for the sector.
The Leeds-based group described the impact of the problems in the banking and financial system on property investment as “significant” and said it did not believe the full effects had been felt.
However, the company said it believed its strategy of trying to improve future yields by refurbishing its existing portfolio and progressing with its developments would help it perform in line with expectations.
But Town Centre said although new lettings would generate cash these had created short-term reductions in rental income which had increased costs which could not be recovered.
In an interim management statement for the company’s third quarter to March 31, chairman Edward Ziff said: “Our well located portfolio, based in the major conurbations of Leeds, Manchester and Glasgow along with our long-term and largely fixed rate debt facilities provides a stable foundation to manage the prevailing market.
“We believe that difficult conditions are likely to remain for some time and will restrict significant investment in new projects.
“In the meantime, we remain committed to optimising our existing portfolio, managing our major development schemes and adding to our portfolio where suitable opportunities emerge.”
The company said it had recently agreed renewals of more than £100m of its bank facilities for five years, with the majority of borrowing being at fixed rates. It said this would protect it from difficulties in financial markets.
Over the period Town Centre sold two properties in Newcastle and York for a total of more than £4m.
It said work was progressing at its sites at the Merrion Centre in Leeds and at West Park in Harrogate.
The company also said land acquistion at the Eastgate Quarter scheme in Leeds was running to plan.
Net debt stands at £214m of which 89% is at fixed rates.
