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18 Nov 2011 14:00
Interim Management Statement
FOR IMMEDIATE RELEASE18 November 2011 LONDON AND ASSOCIATED PROPERTIES PLC: INTERIM MANAGEMENT STATEMENT
London & Associated Properties PLC ("LAP" or "the Company"), the specialist retail investor, today releases its Interim Management Statement for the period to 20 May 2011 to 17 November 2011.
LAP continuesto regard cash flow as a top priority and we are pleased to report that our operational performance remains robust.
At King Edward Court, Windsor, we have now placed the construction contract for the sub-division of the former Boots unit,and are on site. The contract sum is fixed at £1.15 million and we accepted a surrender premium from Boots that will cover most of the cost of these works. We are creating two units fronting on to the mall, the first of which has been pre-let to Cotswold Outdoor, the outdoor clothing specialist, at a rent rising to £140,000pa. We are also creating a unit onto Peascod Street, which has been pre-let to Superdry, the fashion retailer, at £185,000pa. The remaining unit is currently being marketed and interest to date is encouraging.
We consider that the redevelopment of this unit and the quality of tenant that we have attracted demonstrate the continuing success of this shopping centre. The passing rent from Boots was £400,000pa and we expect to comfortably exceed that once the third letting has completed.
The remainder of King Edward Court is fully let, with the exception of a small shop which recently vacated and is already under offer.
The rest of our portfolio continues to perform satisfactorily. Orchard Square in Sheffield remains fully let. Additionally last year we let our two markets in Brixton to In Shops Ltd on 25 year leases. Both markets are fully occupied with a waiting list of potential retailers. We expect the markets to continue to trade well and in due course we will benefit from the profit share arrangement under the terms of the leases.
We completed a new joint venture in June 2011with Columbus Capital, part of Schroders' Real Estate Investment and Asset Management Business when we acquired Langney Shopping Centre in Eastbourne. Langney is trading in line with expectations.
We have been appointed by Grant Thornton to asset manage a portfolio of assets in a West London suburb, for which we will receive advisory fees. We have also been asked to carry out strategic reviews on retail portfolios by other parties, including firms of Chartered Accountants and banks.
LAP remains within all of its banking covenants notwithstanding the well documented difficulties being experienced in the wider economy. Our £47 million revolving credit facility with Royal Bank of Scotlandis due for renewal within the next 12 months. We currently have £45.1 million drawn. We are commencing negotiations with RBS who have indicated that they are looking to renew the loan.
It is difficult to see any improvement in the UK economy in the short-term and we will remain focused on operational performance and cash flow.
Ends.
Contact:
John Heller, Chief Executive, LAP.
Robert Corry, Finance Director, LAP Tel: 020 7415 5000
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
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