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19 May 2011 14:30
FOR IMMEDIATE RELEASE
19 May 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 from 1 January 2011 to 19 May 2011.
We continue to treat cash flow as a high priority. None of our term loans expire within the next 12 months and LAP remains within its banking covenants. Since the year-end we have reduced the revolving credit facility with the Royal Bank of Scotland by £13 million to £47 million as we considered it unlikely that we borrow further against the facility before expiry.
Operationally, we continue to make progress. At King Edward Court, Windsor, we accepted in April a surrender of a lease to Boots, following their relocation to the much larger former Woolworths store which is outside of our ownership. The old Boots unit is to be sub divided into three shops, including the vacant first floor offices, with one facing onto Peascod Street and two into King Edward Court. Planning consent has now been obtained and work will start shortly. Two of the units are under offer to strong retailers, whilst the third will be held vacant until nearer completion. Once these lettings complete, the centre will be fully let.
Elsewhere at King Edward Court, we have completed two lettings on unit shops to Prªt Manger and Temptation Gifts, a local multiple retailer who was on-line retailer of the year in 2009 and 2010. Both of these lettings demonstrate ongoing rental growth at the Centre.
We are pleased to report that at Brixton the new lease for the two markets to In Shops Limited, a subsidiary of Groupe Geraud, has now been completed on the terms we outlined in the year-end report With their expertise the markets should flourish, enabling us to benefit in the medium term from the expected success through our profit share arrangement.
Orchard Square, our shopping centre in Sheffield, also remains fully let.
We are close to completing our first joint venture with a property fund. This will take place once the fund has acquired its first asset. Contracts should be exchanged on this asset in the very near future, and we will make the appropriate announcement then.
Following the successful completion of the asset management project undertaken on behalf of Grant Thornton, a firm of Chartered accountants, reported at the year-end we have been asked to give preliminary advice on a number of additional impaired properties, for which we will receive advisory fees.
A cash interim dividend of 0.75p per share was paid on 21 January 2011 and a cash final dividend of 0.4p per share will be paid on 1 July 2011 to Shareholders on the register at the close of business on 10 June 2011, subject to shareholder approval at the Annual General Meeting.
Within LAP's portfolio, vacant units account for only 1.5% of the Company's total rent roll. LAP believes that its low vacancy rates reflect the quality of its shopping centres and that there is still reasonable occupational demand for quality retail space in the right location.
Ends.
Contact:
London & Associated Properties PLC. Tel: 020 7415 5000
John Heller, Chief Executive
Robert Corry, Finance Director
Baron Phillips Associates Tel: 020 7920 3161
Baron Phillips
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