Repositioning continues at TCS

Retail and leisure assets curt to to 52% of portfolio, down from 70% in 2016.

In at trading statement for the half-year ended 31 December 2018 Town Centre Securities, the Leeds, Manchester, Glasgow and London property investor and car park operator, said it had continued to make good progress in the on-going repositioning of its portfolio. The most recent asset sales and purchases activity further reduces the proportion of retail and leisure assets to 52%, down from 70% in 2016.

In December 2018 the Rochdale Central retail park was sold for £13.2m, previously generating £1.15m annual net rent. Acquisitions included The Cube in Leeds for £12.8m, a retail unit in Gordon Street, Glasgow for £2.6m, and a retail and residential unit on Chiswick High Road, London for £1.7m. In total these acquisitions will generate on-going annual income of over £1.4m.

The overall occupancy level increased to 96% from 95% in June 2018. TCS saw eight CVAs or insolvencies from tenants in the last 12 months including Poundworld and Mothercare, representing 2.5% of the total rent roll. By December 2018, six of the eight units had been re-let with rent ahead of previous levels with new tenants including Iceland and The Works. The two most recently vacated units are being actively marketed, accounting for just 0.5% of the total rent roll.

Chairman and chief executive Edward Ziff said: “We continue to improve our portfolio and maintain our track record of managing the business for long-term success, notwithstanding that the combination of Brexit uncertainty and continued seismic change in retailing makes it a tougher environment in which to operate. Furthermore, while we reduce the overall proportion of retail in our portfolio, the resulting greater focus on supermarket and convenience retailing is helping de-risk the company from the worst of the high street disruption.”

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