TIDMTOWN
RNS Number : 4359L
Town Centre Securities PLC
19 July 2017
19 July 2017
Town Centre Securities PLC
('The Company' or 'TCS')
Year-end Trading Update & Notice of Results
Town Centre Securities PLC, the Leeds based property investor
and car park operator, today announces an update for its financial
year ended 30 June 2017 and its notice of results.
Overview
The Board is pleased to report that TCS ended its year strongly
with significant development, asset management and capital
recycling activity completed and ongoing. Since the half year
results reported on 23 February 2017, we have completed three key
transactions whilst our Ibis Styles hotel and Merrion House
developments are on schedule and are contributing to trading
profits.
Principal highlights are set out below:
Trading
-- Overall occupancy level 99% (June 2016: 96%)
-- 178 management transactions during the financial year (2016: 141)
-- Like-for-like passing rent up by 2.3% (2016: 2.8%)
-- Trading in the Merrion Centre remains strong and we are continuing to grow its rental income
-- Car Parking continues to grow its revenues and profits
Good progress with developments
We anticipate an increase in future underlying trading profits
flowing from our Leeds developments and completion is on schedule
as follows:
-- Premier Inn at Whitehall Road successfully completed and
handed over in March 2017. The hotel has a 25 year lease with an
initial annual rent of GBP680,000 with RPI uplifts;
-- Obtained detailed consent for office and car parking scheme at Whitehall Road;
-- Ibis Styles Merrion Hotel opened on 8 April 2017 and initial
trading has been better than expected. Previously stated
expectations are for annual trading profits of over GBP600,000;
-- Merrion House development on track to complete in early 2018,
and is expected to result in an increase in annual rent of
c.GBP900,000.
Intensive asset management
We recently agreed an innovative swap deal with Evans of Leeds
("Evans") on 5 June 2017 in relation to our Piccadilly Basin
(Manchester) and Buckley House (Leeds) holdings:
-- Sale of Dakota site for GBP2.775m to Evans
o 0.6 acre site which forms part of our Piccadilly Basin
ownership sold to Evans, who have obtained planning permission for
a 137 bedroom 5 star Dakota Deluxe Hotel;
o On site car parking revenues foregone will not have a
significant impact on TCS revenues;
o The Dakota hotel is a further component of the on-going
development opportunities:
o TCS is currently on site with a 91 unit residential
development and has obtained detailed consent for a further 126
unit development;
o TCS intends to retain the completed residential investments as
part of an ongoing programme - the Strategic Planning Framework for
the site has a total of 850 residential units with an expected
value of GBP250m.
-- Acquisition of remainder of Leeds JV from Evans for GBP1.8m
o TCS has purchased Evans' joint venture shares to take 100%
ownership of Buckley House on Vicar Lane, Leeds, where TCS already
holds adjacent buildings and now controls the full island site at
the front of the Victoria Gate (John Lewis) shopping centre;
o This purchase will allow TCS to push ahead with asset
management plans for this prime piece of property in Leeds
city.
Substantial capital recycling disposal
-- Sale of Empire House, Sauchiehall Street, Glasgow, completed
on 8 June 2017 for a headline price of GBP17.5m and an exit yield
of 6.8%, which is ahead of the previous valuation;
-- We expect to achieve further sales in Scotland in the future,
in line with our strategy of re-investing in higher growth
opportunities, principally in the South East of England.
Growing our car parking business, CitiPark, with our 16(th) car
park acquired
-- 140 space multi-storey freehold car park next to
Rickmansworth station in London purchased on 8 June 2017, for a
total of GBP2.3m, having previously managed the car park for 12
months as a tenant. We will be looking to bring forward
redevelopment plans for the investment.
-- We have continued our investment in technology and have
rolled out the Tesla destination charging network across our
portfolio.
Notice of results
The Company expects to issue its final results for the financial
year ended 30 June 2017 on 13 September 2017.
Edward Ziff, Chairman and Chief Executive, commented:
"We are very pleased with the outcome for the financial year and
look forward to reporting good results in September. We have made
strong progress with our development programme, alongside continued
capital recycling and asset management.
"In the new financial year we anticipate further acquisition and
investment opportunities to grow TCS. We look forward to the future
with confidence."
-Ends-
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.co.uk / @TCS PLC
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Mark Dilley, Group Finance Director
MHP Communications 0203 128 8100
Reg Hoare/Gina Bell
This information is provided by RNS
The company news service from the London Stock Exchange
END
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