Town Centre Securities PLC Sale of Rochdale Central Retail Park (6955K)
December 17 2018 - 5:29AM
UK Regulatory
TIDMTOWN
RNS Number : 6955K
Town Centre Securities PLC
17 December 2018
17 December 2018
Town Centre Securities PLC
( 'TCS' or the 'Company')
Sale of Rochdale Central Retail Park
Town Centre Securities PLC, the regional property investor and
car park operator, today announces that it has exchanged contracts
for the sale of Rochdale Central Retail Park and its adjoining 4.7
acres of land to Rochdale Council for GBP13.2 million, payable in
cash on completion.
As at 30 June 2018 the combined site was valued at GBP14 million
and generated annual net rent of GBP1.15 million.
The park totals 70,000 sq ft with current tenants Argos,
Halford, Matalan and Poundstretcher all with relatively short
leases. Through its prior ownership of the Rochdale Canal Company,
TCS has actively managed a number of developments around Central
Retail Park. As a result, the park is strongly let at an average of
GBP16.50 per sq ft, although this is ahead of current market
rates.
Having reduced our exposure to retail and leisure from 70% to
55% of the portfolio over the past two financial years, this
further disposal reduces that exposure to 52% on a pro forma
basis.
The sale is unconditional and is expected to complete on 4
January 2019. The proceeds will initially be used to reduce TCS's
indebtedness.
Edward Ziff, Chairman and Chief Executive of TCS, said:
"This disposal is in line with our on-going strategy of
repositioning TCS's portfolio; reducing our exposure to mature
out-of-town retail, and enabling further diversification of our
assets and investment in our development and investment
pipeline.
"Despite making significant improvements to the retail park in
recent years we identified this asset as having further downside
potential. This sale removes that risk whilst at the same time
having the benefit of lowering debt and giving further headroom for
future investments.
"Our recent sales and purchase activity reflect our strategy of
investing in assets that offer the ability to create value and
income through intensive asset management. We continue to
concentrate our, now smaller, retail portfolio by targeting good
value prime assets or supermarket and convenience retail. We see
this approach as being key to generating long term growth and
taking advantage of the tough retail environment."
ENDS
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.co.uk / @TCS PLC
Edward Ziff, Chairman and Chief Executive
0113 222 1234
Mark Dilley, Group Finance Director
MHP Communications
020 3128 8572 / 8742
Reg Hoare / Alistair de Kare-Silver tcs@mhpc.com
Notes to Editors:
Town Centre Securities PLC (TCS) is a Leeds, Manchester, Glasgow
and London based property investment and car parking operator with
assets of over GBP400m. With more than 50 years' experience, a
commitment to sustainable development and a reputation for quality
and innovation, TCS create mixed use developments close to
transport hubs in major cities across the UK. Their current
portfolio delivers an annual income of more than GBP30m.
For more information visit www.tcs-plc.co.uk
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END
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