Town Centre Securities sees positives in regional property market
TOWN Centre Securities signalled an improvement in sentiment towards the regional property market as it announced positive results.
The Leeds based property investor, developer and car park operator announced an improvement in underlying profit and increases in the value of its investment portfolio and net assets over the six months to the end of 2013.
Chairman and chief executive Edward Ziff said: “I am delighted that we are now seeing an improved sentiment towards the regional property market. Our investments in the major cities of Leeds, Manchester, Edinburgh and Glasgow have seen improvements in valuation in the first half year.
“I am very pleased to report a 4% increase in the value of our investment portfolio and a 6% increase in net assets during the first half. Our strong asset management capability continues to maintain our high occupancy levels which in turn underpin our rental income and profitability. Our performance remains in line with our expectations and we look forward to the future with greater confidence.”
The group said that underlying profit before tax was £4m, up from £3.8m last time, with underlying earnings per share 7.5p, up from 7.2p.
Net asset value per share is 283p, up from 263p while the group’s gross borrowings reduced to £158.1m.
The group said the overall occupancy level was maintained at 98% with more than 60 letting transactions during the period and 70% of its new retail and leisure units at the Merrion Centre in Leeds are let or exchanged while it will complete work on refurbishing the Merrion Centre multi-storey car park before Christmas.
TCS added: “Following exchange of contracts with Leeds City Council in September for the refurbishment and extension of Merrion House, we will be submitting a detailed planning application shortly. Tender returns for the construction of a supermarket for Waitrose at Milngavie, Glasgow are expected in the next month, facilitating a start on site this spring. Waitrose are planning the store opening in spring 2015.
“We are progressing the sale of our site at Apperley Bridge, Bradford for which we now have planning permission for a residential scheme. At Whitehall Riverside, Leeds, we have obtained detailed planning consent for a 128 bedroom hotel and outline planning consent for a 600,000 sq ft mixed use development, including three eight-storey office buildings and a 500 space multi-storey car park. At a time when there is little or no available large floor plate, Grade A facilities in Leeds we are actively seeking tenant interest.”
