Town Centre Regulatory News (TOWN)

15 November 2013

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

Town Centre Securities PLC, the Leeds based property investor and car park operator, presents its Interim Management Statement covering the period from 1 July 2013 to 14 November 2013 ("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% (30 June 2013: 98%).

Asset Management

Our investments in the core cities of Leeds, Manchester, Edinburgh and Glasgow remain well let. At the Merrion Centre, Pure Gym opened the first of our new leisure units in early October and Costa and Cosmo have also taken possession. A further two units are in solicitors hands leaving three available to let with significant interest following the opening of the adjacent Arena in July. We have also extended the lease on the bowling alley on Merrion Way for a further 25 years.

At Shandwick Place in Edinburgh the tram works have now been completed and we continue to actively manage our properties. Since the year end Morrisons have opened their first local store in Scotland in the former Jessops unit and we are seeing a significant revival in tenant interest in this location.

Rent collection continues to be strong with over 99% of our quarter day rents collected within five days. Four tenants entered administration during the period including (as announced on 11 November) Barratts Trading Limited at our property in Apperley Bridge, Bradford, where we have obtained council support for residential redevelopment of this property.

Development

We exchanged contracts with Leeds City Council to refurbish and extend Merrion House in an agreement which will enable all the council's main services in Leeds to be offered from a single, modern facility. The Council will enter into a new 25 year lease from practical completion, which is expected to be in 2017, and will take a 50% interest in the asset.

Detailed planning consent for a 128 bedroom hotel and a council resolution to grant outline planning consent for a 600,000 sq ft mixed use development at Whitehall Riverside, including three eight-storey office buildings and a 500 space multi storey car park has also been obtained. At a time when there is little or no available large floor plate, Grade A facilities in Leeds we are actively seeking tenant interest.

We are due to commence construction in the spring of 2014 on a 36,000 sq ft Waitrose supermarket adjoining our Homebase store in Milngavie, Glasgow.

Debt

As at 14 November 2013, the Company had gross borrowings of £157.7m, (30 June 2013: £159.1m) comprising £106.0m of 5.375% debenture stock repayable in 2031, and £51.7m 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 benefitting from our investment in new parking management equipment in Leeds during the last 12 months. In particular our increased use of social media allows us to benefit from changing consumer purchasing behaviour and payment technologies.

Edward Ziff, Chairman, commenting, said:

"Town Centre Securities PLC is well placed to take advantage of the early signs of economic improvement. I am delighted with the agreement with Leeds City Council to refurbish and extend Merrion House demonstrating the strategic importance of the Merrion Centre in Leeds city centre."

"Economic recovery is slow but our strong asset management capability maintains our high occupancy levels which underpins our rental income and profitability."

Ends

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