Portfolio Activity Update

RNS Number : 1452O

Town Centre Securities PLC

05 February 2016

 

5 February 2016

TOWN CENTRE SECURITIES PLC

('The Company' or 'TCS')

PORTFOLIO ACTIVITY UPDATE

GOOD PROGRESS MADE ON ACQUISITIONS, CAPITAL RECYCLING PROGRAMME AND WHITEHALL ROAD DEVELOPMENT SCHEME

Town Centre Securities PLC, the Leeds based property investor and car park operator, today announces a portfolio activity update, which includes an acquisition of four retail units with nine apartments in Wood Green, London, further progress with the Company's capital recycling programme and the signing of a 25 year lease with Premier Inn to build a 136 bedroom hotel on Whitehall Road, Leeds.

Acquisition in Wood Green, London

TCS has acquired the freehold interest in four retail units located in Wood Green, London. The properties were purchased for a total of £7.25 million and will provide a combined income of £0.4 million per annum, reflecting a yield of 5.5%.

The retail units are well located, with excellent access to public transport links. TCS intends to take opportunities to improve the tenant mix which will drive the yield and rent forward as well as to take advantage of refurbishment potential to raise the rental income of the units. A programme to convert the upper floors into residential accommodation is already progressing.

Capital recycling programme continues

TCS has made further progress in its capital recycling programme. This has continued with the disposal of 33 Bothwell Street in Glasgow for £7 million, which is above the previous valuation. The proceeds from the disposals will be redeployed into new, higher growth opportunities.

Premier Inn lease agreed for Whitehall Road

Premier Inn has signed a 25 year lease with TCS to build a 136 bedroom hotel on Whitehall Road as part of TCS's commitment to help regenerate the West End of the City with its Whitehall Riverside Scheme.

The build contract is £10 million and the value of the site upon completion, which is expected in 2017, is estimated to be in excess of £12.5 million.

Edward Ziff, Chairman and Chief Executive, commented:

"We continue to focus on investing in higher growth opportunities including our own development pipeline, whilst continuing our capital recycling programme to provide some of the funding.  

"We have been working closely with Leeds City Council to assist in the regeneration of the West End of Leeds through our Whitehall Riverside development. The addition of Premier Inn is key to the scheme, which already has consent for over 400,000 square foot of office accommodation, restaurant, café and leisure space, as well as a 500 space multi-story car park."

-Ends-

For further information, please contact:

Town Centre Securities PLC                                                                                                        www.tcs-plc.com

Edward Ziff, Chairman and Chief Executive                                                                              0113 222 1234

Duncan Syers, Finance Director

MHP Communications 

Reg Hoare/ Gina Bell/ Hugo Dale-Harris                                                                                    020 3128 8100

 

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