Town Centre Regulatory News (TOWN)

15 November 2012

TOWN CENTRE SECURITIES PLC

("TCS" or "the Company")

Interim Management Statement

Town Centre Securities PLC, the Leeds based property investment and development company, presents its Interim Management Statement covering the period from 1 July 2012 to 14 November 2012 ("the period").

Overview

The highlight of the period was the acquisition of two new investment properties, at a total cost of £9.4m, 6/7 Park Row, Leeds, occupied by Lloyds TSB Bank and 880 Harrogate Road, Bradford occupied by Barratts Trading Limited. Both properties offer future growth opportunities when the current leases are due for renewal. Overall, our investment portfolio has performed in line with expectations and our car park division has performed well.

Asset Management

We remain focused on managing our assets and have further reduced our void level to 2%. Lease renewals and new lettings continue to be a priority. The income from acquisitions has offset the downward pressure on rental income.

Rent collections within five days of the due date were once again over 99% indicating that our broad spread of tenants and focus on the value for money retail sector continues to stand us in good stead.

We have commenced refurbishment work on the Merrion Way project at the Merrion Centre creating new retail and leisure units following entering into agreements for lease with Pure Gym and restaurant operator, Cosmo. These represent 55% of the anticipated additional rental income and there is good interest in the remaining units.

Financial position

As at 14 November 2012, the Company had net debt of £152.9m, (30 June 2012: £144.6m) comprising £106.0m of 5.375% debenture stock repayable in 2031, and £46.9m of bank loans. The increase includes the impact of acquisitions.

There is significant headroom in our facilities and we continue to operate comfortably within all covenants.

Acquisitions and Disposals

We completed two acquisitions during the period, as referred to above, and made no disposals. We are seeking further opportunities to improve our property portfolio and car parking business through acquisitions where we can create value. 

Developments

We continue to explore opportunities at our Whitehall Road site in Leeds and Piccadilly Basin in Manchester and have submitted a detailed planning application for our proposed New Waitrose store development at Milngavie outside Glasgow.

Car Parking

Car parking like for like revenues improved by almost 10% during the first quarter as we maintained our marketing initiatives. Volumes at the Merrion Centre Multi-Storey Car Park continued to grow adding 15% to like for like income, which has helped drive the increased footfall in the Merrion Centre.

 Edward Ziff, Chairman, commenting, said:

"We have made further progress during the period including our two acquisitions which provide opportunities for future growth. I am pleased that we have maintained high occupancy levels in a very competitive market place reflecting our investment in major cities. The current economic environment remains uncertain and our view remains cautious."

Ends

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