Leeds property developer Town Centre Securities weathers impact of retail disruption
Property developer Town Centre Securities (TCS) said trading was in line with expectations as the firm continued to deliver on a strategy of repositioning its portfolio, investing in its estate, and improving its development pipeline.
The Leeds-based firm said it continued to produce consistent operational results during the year ended June 30, 2019, despite a challenging market and that it remains focused on delivering improving long-term returns.
The retail sector has been through a turbulent period in recent years with a string of Company Voluntary Arrangements (CVAs) and administrations.
However, Leeds-based TCS said it has mitigated the disruption through its ability to quickly re-let units.
Like-for-like passing rent was up 2.6 per cent while overall occupancy level was at 96 per cent, TCS said.
The firm sold Rochdale Retail Park for £13.2m in January 2019.
Edward Ziff, chairman and chief executive, said: “We continue to improve the business for the long term in line with our strategy of repositioning our portfolio, strengthening it through asset management and investing in our development pipeline.
“I am particularly pleased with the completion of Burlington House, our Private Rented Sector property in Piccadilly Basin, Manchester. It is a high-quality asset and its early popularity re-enforces our belief in the wider Piccadilly Basin development opportunity.
“We have been able to mitigate the continued disruption within the Retail sector, through our proven ability to quickly re-let units impacted by CVAs and administrations while improving rents; this highlights the quality of our assets and the fact that stronger performing retailers trade well within them.
“We are not complacent however, and our sale this year of Rochdale Retail park reinforces our willingness to continue to focus on recycling our portfolio, thus freeing up funds for investment and development.”
TCS has also achieved planning permission to build a 17-storey office tower above a section of the Merrion Centre in Leeds.
It also acquired mixed use property The Cube in Leeds for £12m in October 2018.