Low void levels boost London & Associated
Published: 30 April, 2010
Shopping centre investor London & Associated Properties reported an improved set of results for the year to 31 December 2009.
LAP's portfolio – principally comprising King Edward Court in Windsor and Orchard Square in Sheffield – rose in value by 4.6 per cent year-on-year to £213.6m and triple net asset value increased 41 per cent to 74.2p a share from 52.7p.
" Our performance in 2009 has been positive,” said chairman Michael Heller. “I am satisfied that our policy of upgrading and investing in the quality of our portfolio has insulated us from the worst of the economic downturn. I remain reasonably optimistic that we are well placed to cope with what is likely to be another challenging year for property companies."
John Heller, chief executive reported that at King Edward Court in Windsor, the centre returned to full occupancy having lost two retailers to some form of insolvency in December 2008. The two units were let to Robert Gatward, an existing tenant that needed to expand, and Fat Face.
“In addition we have managed to increase Zone A rents to over £115 for the shops fronting onto the principal mall, a record for this part of the centre,” said Heller.
And in Sheffield Orchard Square remains fully let with the exception of one small unit that forms part of a future development site. During 2009 LAP let a prime shop fronting Fargate to Republic, the fashion retailer, at a record rent for the city.
But Heller warned: “The UK economic recovery continues to be fragile with a large rise in consumer savings and a low level of confidence. Consequently, we expect the polarisation already apparent between prime and secondary properties to continue to widen.”
