Last checked at 4 Nov 2009 11:55
FOR IMMEDIATE RELEASE
4 November 2009 LONDON & ASSOCIATED PROPERTIES PLC: INTERIM MANAGEMENT STATEMENT
London & Associated Properties PLC ("LAP" or "the Company"), the specialist retail property investor, today releases its Interim Management Statement for the period to 4 November 2009.
LAP reported at the time of its half year statement, covering the six months to 30 June 2009, that it had experienced very low tenant failure and strong cash collection. This has continued into the third quarter with over 95% of rents being collected within 14 days of becoming due, while as at today's date approximately 99% of all rents have been collected. Across the portfolio there is vacancy rate of less than 2%.
The Company has now completed its redevelopment at Upper Street, Islington and has handed over the building to the tenant, fashion retailer Jack Wills. The lease completed on 29 September. As part of the agreement the fashion retailer was given a three month rent-free incentive and will therefore commence rental payments from the beginning of January 2010 for a lease that runs until 2019.
LAP's other development, the former Antiquarius building on King's Road, Chelsea, is complete and the Company handed over the property to the tenant, US fashion retailer Anthropologie, on 23 October 2009. The lease to Anthropologie is for 15 years. The tenant received an 18 week rent-free incentive and will commence rental payments in February 2010.
These two properties, amounting to 28,000 sq ft, have cost around 2.25m to develop, including all fees, and will produce a combined annual rental income of 1.5m, an incremental 0.8m per annum over the previous leases.
At the beginning of October, LAP announced the sale of its Solihull retail investment for 11.45m to the Universities Superannuation Scheme. The property was valued at 12.75m in the December 2008 year-end accounts. This sale was completed in September and 9.6m of the proceeds were used to pay down a revolving credit facility. The balance was added to the Company's cash reserves.
There has been no material change to the Company's financial position since its half-year report and LAP continues to be cautiously optimistic about the future.
Ends. Contact:
London & Associated Properties. 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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