Town Centre Regulatory News (TOWN)

16 May 2014

TOWN CENTRE SECURITIES PLC("TCS" or "the Company")Interim Management Statement

Town Centre Securities PLC, the Leeds based property investor/developer and car park investor, presents its Interim Management Statement covering the period from 1 January 2014 to 16 May 2014 ("the period").

Overview

The Company's investment property and car park operations are performing well and in line with the Board's expectations. The Company is progressing a number of development opportunities at the Merrion Centre and Whitehall Riverside in Leeds, in Glasgow and elsewhere.

Portfolio occupancy is 97.2% (31 December 2013: 97.6%).

Asset Management

Our investments in the core cities of Leeds, Manchester, Edinburgh and Glasgow remain well let. At the Merrion Centre, we have made further lettings since the half year as part of the New Front redevelopment, to Bulgogi Grill, Jones Bar and the Proper Sandwich Company. This leaves only two units available. Work has commenced on the car park refurbishment due for completion before Christmas 2014; we are working on a phased basis to minimise both the disruption for customers and loss of income.

At Shandwick Place in Edinburgh we continue to actively manage our properties and we have recently secured a letting to Ask Italian Restaurants.

Rent collection remains strong with over 99% of our quarter day rents collected within five days.

Development of assets

We have made good progress on the Merrion House project; the contractor tender process is underway and we hope to secure planning consent by the end of June.

We are also progressing the development of a 36,000 sq ft Waitrose supermarket adjoining our Homebase store in Milngavie, Glasgow.

We are continuing to seek tenant interest in the hotel and office developments at Whitehall Road Leeds.

Sales and Purchases

We have recently made property disposals of around £10m in Scotland; the proceeds will be used initially to pay down debt although we are seeking to re-invest where we see growth potential. We have purchased a retail unit on Holloway Road, London let to Mothercare.

Debt

As at 15 May 2014, the Company had gross borrowings of £156.4m, (31 December 2013: £158.1m) comprising £106.0m of 5.375% debenture stock repayable in 2031, and £50.4m of bank loans and overdrafts.

TCS has three term loan facilities, together totalling £90.0m, with maturity dates in late 2015 and 2016 and a £5.0m overdraft facility. There is significant headroom in our facilities and we are operating well within our loan to value and interest cover covenants.

Car Parking

We continue to perform in line with our expectations and are now starting our programme of expanding the business. We have recently exchanged contracts on the purchase of a long leasehold 600 space multi-storey car park in Ilford, Essex.

Edward Ziff, Chairman, commenting, said:

"Town Centre Securities PLC is well placed to take advantage of the early signs of economic improvement. Our activity levels are high in our property management and development and we are now starting the expansion of the car park business."

Ends

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