Interim Management Statement (3208S)
November 18 2011 - 2:00AM
UK Regulatory
TIDMTCSC
RNS Number : 3208S
Town Centre Securities PLC
18 November 2011
18 November 2011
TOWN CENTRE SECURITIES PLC ("TCS" or "the Company") Interim
Management Statement
Town Centre Securities PLC, the Leeds based property investment
and development company, presents its Interim Management Statement
covering the period from 1 July 2011 to 17 November 2011 ("the
period").
Overview
The Company has continued to focus on the management of its
existing portfolio of investment properties and car parks.
Performance overall has been consistent with the same period last
year and is in line with our expectations.
Asset Management
We have been working with our tenants at Urban Exchange in
Manchester to develop a successful brand for this outlet centre as
we believe there is an opportunity to market the centre to the
benefit of landlord and tenants. Only one unit, 7,000 sq ft, out of
140,000 sq ft, remains unoccupied.
Following the refurbishment of the Merrion Street retail units
at our Merrion Centre in Leeds we handed new shop units over to KFC
and Coral for their fit out. Responding to the commencement in
February 2011 of the construction of the Leeds Arena, a 13,500
capacity concert and events venue located immediately adjacent to
the Merrion Centre, we continue to advance our plans for the
refurbishment of the multi-storey car park and creation of
additional retail/leisure units at ground floor level. We expect to
receive planning and hope to be on site in the early part of
2012.
Our void level has been maintained at around 3%, following the
considerable reduction in voids achieved through letting the vacant
space at Urban Exchange and other asset management over the last
year.
Rent collection continues to be very strong with 99% of our
September quarter day rents collected within five days of the due
date. The broad spread of our tenants and our focus on the value
for money retail sector stand us in good stead. However, we remain
wary about rent collection, lease renewals and unforeseen voids due
to the risk of tenant failures and administrations. The tenant
market is challenging and we closely monitor tenant
performance.
Financial performance
As at 17 November 2011, the Company had net debt of GBP142.8m,
(30 June 2011; GBP140.1m) comprising GBP106.0m of 5.375% debenture
stock repayable in 2031, and GBP36.8m of bank loans. This is
consistent with our expectations.
There is significant headroom in our facilities and we continue
to operate comfortably within our loan to value and interest cover
covenants. Discussions are at an advanced stage to complete the
refinancing of our bank facilities. As previously indicated,
inevitably we will incur higher borrowing costs compared to the
more favourable margins in our existing facilities.
Acquisitions and Disposals
No acquisitions or disposals were completed in the period. We
are continuing to look for opportunities to grow our property
portfolio and car parking business. So far, available opportunities
have not met our criteria for property acquisitions where we can
create value. This relies on identifying properly priced
opportunities with value now rather than the promise of value in
the future.
Developments
As announced in September, we are progressing our joint venture
arrangement with Metric Property Investments plc at Rochdale. Work
continues on identifying suitable tenants with a view to being on
site in the latter half of 2012.
Car Parking
Year on year, car parking revenues are in line with our
expectations given increasing competition and market conditions.
Parking volumes at the Merrion Centre Multi-Storey Car Park have
continued to grow as a result of our active asset management and
this is helping to drive footfall in the Merrion Centre.
Edward Ziff, Chairman, commenting, 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."
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.com
Edward Ziff, Chairman and Chief
Executive 0113 222 1234
Chris Kelly, Finance Director
MHP Communications
Reg Hoare / Vicky Watkins 020 3128 8100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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