Town Centre Securities PLC Acquisition of The Cube in Leeds (8818Y)
28 August 2018 - 4:00PM
UK Regulatory
TIDMTOWN
RNS Number : 8818Y
Town Centre Securities PLC
28 August 2018
28 August 2018
Town Centre Securities PLC
('TCS' or the 'Company')
Acquisition of The Cube in Leeds
Town Centre Securities PLC, the Leeds, Manchester, Scotland, and
London property investment, development and car parking company, is
pleased to announce the acquisition of The Cube, 123 Albion Street,
Leeds for GBP12 million from Aviva. Contracts have been exchanged,
with completion of the purchase set for 1 October 2018; the
purchase will be funded from TCS's existing resources and planned
disposals. The re-financing of Merrion House in July this year gave
TCS considerably greater financial flexibility.
The Cube is located opposite the Merrion Centre, TCS's largest
asset. It is a refurbished and extended former 1960's office
building, comprising of 22,000 sqft of ground floor leisure units
with leases to Hard Rock Café and Mecca Bingo, together with 50,000
sqft of offices over three floors let to Capita and the Government.
It also includes the freehold for 84 apartments which are leased to
Persimmon Homes at a peppercorn rent. The acquisition is consistent
with our focus on true mixed-use assets and lowering our exposure
to retail, which has helped ensure we have been protected from the
worst of the turmoil on the high street.
The purchase price of GBP12m represents an initial yield of over
12.5% on the passing income. With lease expiries in 2019 and 2020
the yield will reduce to around 9%, a strong and sustainable return
for a city-centre asset.
Edward Ziff, Chairman and Chief Executive, said:
"The Cube represents a strategic acquisition for TCS, as we
further expand our ownership in Leeds, with its proximity to the
Merrion and other key destinations in the City Centre. It will
provide us with asset management opportunities and importantly the
additional income will help mitigate the effect of further asset
sales that we plan from our portfolio.
"This transaction demonstrates our ambitious growth plans, and
the momentum that we are building with both our exciting
development pipeline and strategic acquisitions such as The Cube
and Ducie House, in our Piccadilly Basin development."
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 8742
Reg Hoare / Alistair de Kare- Silver tcs@mhpc.com
Notes to Editors:
Town Centre Securities PLC (TCS) is a Leeds based property
investor and car park operator with assets of approximately
GBP385m. With more than 50 years' experience, a commitment to
sustainable development and a reputation for quality and
innovation, TCS creates mixed use developments close to transport
hubs in major cities across the UK. Its current portfolio delivers
an annual income of more than GBP26m.
For more information visit www.tcs-plc.co.uk
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END
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