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19 Nov 2010 10:30
FOR IMMEDIATE RELEASE
19 November 2010 LONDON & ASSOCIATES PROPERTIES PLC INTERIM MANAGEMENT STATEMENT
London & Associated Properties PLC ("LAP" or "the Company"), the specialist retail investor, today releases it's Interim Management Statement for the period to 19 November 2010.
Trading over the period continued to be satisfactory in spite of the current economic situation within the UK. LAP remains focused on cash flow and is pleased to report that approximately 95% of rents due on the September quarter day were collected within 14 days. As at today, some 99% of rents for that period have been received.
The shops at our principal centres, King Edward Court, Windsor, and Orchard Square, Sheffield, remain fully let. In addition we have completed a significant number of lettings at our two markets in Brixton, London, which now feature as noteworthy places in Visitor's guides to London and have been acclaimed in both national and local press. For the first time in 20 years our Brixton markets are operating at full capacity as a result of our concerted efforts over the last 12 months. This higher income has made a noticeable difference to the profitability of both these markets.
Vacancies across the total portfolio remain at just under 2% by rental value from a total annualised rental income of £16.3million.
Since the half year review, we have completed the disposal of Antiquarius, our investment in King's Road, London, for £17.8 million in cash. We used part of the proceeds to pay down £12.75 million from our revolving credit facility with Royal Bank of Scotland. The balance has been added to our cash reserves.
As a result of this transaction, we now have reduced the borrowings on our revolving credit facility to £48 million. We have also commenced the cancellation of the swaps related to this borrowing, and have paid £1.95million to break a nominal £10million of swaps. This will lead to an annual cash saving approaching £0.5 million. Cancellation of other swaps that are no longer required after paying down loans will be considered over the coming months.
Since reporting its half year results, LAP has been appointed by a leading firm of accountants to asset manage a substantial portfolio of shopping centres that were placed in administration. Since our appointment we have improved cash flow and have instigated a number of management initiatives. On the back of these initiatives, the centres are currently being marketed for sale and LAP is overseeing and advising on the disposal process.
The quality of our portfolio continues to leave us relatively well placed to ride out the current economic difficulties. We therefore remain cautiously optimistic.
Ends. Contact:
London & Associated Properties PLC. Tel: 020 7415 5000
John Heller, Chief Executive
Robert Corry, Finance Director
Baron Phillips Associates Tel: 020 7 920 3161
Baron Phillips
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