TCSC Town Centre

 

TIDMTCSC 
 
RNS Number : 7730C 
Town Centre Securities PLC 
19 November 2009 
 

 19 November 2009 
TOWN CENTRE SECURITIES PLC 
("TCS" or "The Company") 
Interim Management Statement 
Town Centre Securities PLC, the Leeds based property investment and development 
company, announces its Interim Management Statement covering the period from 1 
July to 18 November 2009 ("the period"). 
Overview 
The period has seen property valuations stabilise. It is too early to predict 
prolonged recovery but the worst is behind us and we believe there may be modest 
increases in our half year valuation as at 31 December 2009. 
The tenant environment remains difficult and will remain so for the foreseeable 
future with further business failures and pressure on rents a constant 
challenge. We continue to believe that our investment portfolio, and in 
particular our exposure to value for money retailing, puts TCS in a good 
position. Despite our caution, we are seeing signs of improved tenant demand for 
retail and office space. 
Our focus remains on protection of existing resources and preservation of 
capital. However, TCS is securely financed and as a result, well positioned to 
react to opportunities as they emerge. 
Highlights of our activity in the period include: 
Financing 
At 18 November 2009, the Company had net debt of GBP149.7m (30 June 2009: 
GBP166.5m) comprising GBP106.2m of 5.375% debenture stock repayable in 2031, and 
GBP43.5m of bank loans at floating interest rates. 
TCS has two term loan facilities, together GBP85m, with maturity dates from 2012 
to 2014, and GBP15m of overdraft and money market facility. 
As reported in August 2009, we completed the buy back and cancellation of 
GBP43.8m of debenture stock, realising a profit of GBP9.0m and on a pro forma 
basis adding 17p to the net asset value per share of 202p at 30 June 2009. One 
of the benefits has been to extend significantly the headroom in our facilities 
(TCS now operates comfortably within its loan to value and interest cover 
covenants) without recourse to dilutive equity funding. 
  Acquisitions and Disposals 
  *  The sale of an office building at Piccadilly Basin in Manchester for a total of 
  GBP7.0m at an overall initial yield of 8.8 %, in July 2009. 
  *  The sale of all nine of the town houses and apartments completed as part of the 
  development at West Park, Harrogate for a total of GBP2.9m. 
  *  The sale of the upper floors at Deansgate, Manchester for GBP1.75m in July 2009 
  at an initial yield of 7%. 
  *  The acquisition of two retail stores in Wood Green and Holloway Road, London for 
  a total of GBP1.75m at an initial yield of 8% in August 2009 
 
Asset Management 
Occupancy levels have improved significantly in the period from 91.6% at 30 June 
2009 to 93.0% at 9 November 2009. 
Re-letting the 120,000 sq ft retail store at Piccadilly Basin and the 
refurbished 40,000 sq ft Town Centre House remain our top priorities and there 
has been encouraging progress with both. Aldi will be opening its planned 16,000 
sq ft food store at Piccadilly Basin later this month and there has been a 
notable increase in enquiries for the rest of the available space. 
Similarly, at Town Centre House, two new lettings have been secured and there is 
a strong level of enquiry for the now remaining 14,000 sq ft. Other new lettings 
at The Merrion Centre include a retail unit to Brighthouse, the UK's leading 
rent-to-own retailer with 180 outlets, and the vacant office space in Wade House 
to the Consumer Credit Council. 
We have also secured Jacobs, the independent photographic retailer, as a new 
tenant at Shandwick Place, Edinburgh which becomes their 18th store across the 
UK.  In Glasgow, Waitrose have recently opened their third Scottish store at our 
valuable 32,000 sq ft Byers Road site in the West End. 
Rent collection has continued to be satisfactory.  At the September 2009 quarter 
days over 97% of the rent due was collected within seven days and our bad debt 
experience remains comfortably within our expectations. The broad spread of our 
tenants (TCS has no tenants with more than three premises), and our focus on the 
value for money retail sector, has continued to insulate us from the worst of 
the operational problems that have faced the retail property sector. 
Developments 
It is now over two years since we commenced any development activity. 
Nevertheless we continue to be optimistic about the long term potential of the 
development sites in our portfolio. 
 
 
 
 
Car Parking 
Demand for car parking at our sites in Leeds and Manchester continues to be 
strong. We are actively seeking new car parks, both to own and manage, with a 
view to building a meaningful business within TCS. 
Edward Ziff, Chairman, commenting, said: 
"We are encouraged by signs of improvement in the occupational market and 
pleased to see indications of stability in property values. TCS is able to look 
to the future with a sound financial base and a robust and resilient investment 
portfolio." 
 
 
- ENDS - 
 
For further information, please contact: 
Town Centre Securities PLC 
www.tcs-plc.com 
Edward Ziff, Chairman and Chief Executive                           0113 222 
1234 
Smithfield 
Reg Hoare / Rebecca Whitehead                                       0207 360 
4900 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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