Town Centre Securities cedes Leeds’ Eastgate to Hammerson

 

Town Centre Securities confirmed this morning that it had ceded total control of the Eastgate Quarters scheme in Leeds to joint venture partner Hammerson as it focuses on its core business of asset management.

Details of the arrangement came as the Leeds based property investment and development company posted pre-tax profits of £7.6m for the year ended 30 June, down slightly from £7.8m the previous year.

TCS said: “We have now concluded an agreement with Hammerson by which they have assumed total control of the Eastgate Quarters scheme in Leeds which we had been jointly developing with them.

“Under the agreement we have no obligations to costs going forward and this allows us to focus on our core business.  We will continue to be involved in a local liaison role. As stated above, our strongly held view is that the best short-term opportunities are likely to present themselves within our existing portfolio, particularly in the Merrion Centre.”

Elsewhere the group posted flatlining underlying earnings per share of 14.8p (2009: 14.8p).

Net asset value per share lifted from 202p in the previous period to 269p while triple net asset value per share was up to  306p (2009: 264p).

 

The investment property portfolio valuation of £272.5m reflected an 11.2% increase on a like for like basis 

The group is proposing a final dividend of 7.34p (2009: 5.4p). It also reported reduced borrowings of £141.3m (2009: £166.3m) while gearing is now 99% (2009: 155%).

 

The group said it was well within its existing facilities and covenants and that it has significant headroom for asset purchases and development within our existing portfolio

Total voids reduced to 6.8% (2009: 8.4%) while the group secured 38 lettings and 31 lease renewals and extensions during the period.

 

Chairman and chief executive Edward Ziff said: “This year, in contrast to the previous year, has been much more stable for the property sector and for Town Centre Securities.  I am encouraged by the way in which we successfully negotiated the severe downturn and demonstrated the strength and resilience of our business.”

 During the year the group agreed payments to Edward Ziff and Richard Lewis totalling £2.1m as compensation for sacrifice of pension benefits resulting from the termination of the Group’s existing pension arrangement.

 

paul.norman@estatesgazette.com

 

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