CSC outperforms ahead of demerger
Published: 05 May, 2010
As it prepares for its demerger from Liberty International, Capital Shopping Centres has reported strong performance in the first quarter of 2010.
In his final management update as chairman of Liberty International, Patrick Burgess said: “We are pleased that the UK retail market has stabilised. Capital Shopping Centres’ occupancy has been maintained at 98 per cent and we have seen a much lower level of retailer failures than the first quarter of 2009. With the pipeline of new shopping centres sharply curtailed by recent economic conditions, prospects for the performance of CSC’s existing assets are encouraging.
“The demerger announced on 9 March is now largely complete and we expect the two companies to start to trade separately on 10 May. We believe that Capital Shopping Centres and Capital & Counties are well positioned as stand-alone businesses to execute their own significant strategic plans and deliver strong shareholder returns over time.”
Capital Shopping Centres said the level of retailer failures was sharply down. In the first quarter of 2009 failures accounted for 92 units and 4.1 per cent of passing rent. By contrast the first quarter of 2010 saw just 18 units and 0.7 per cent of passing rent enter administration.
Activity in the letting market has remained positive while estimated footfall is up over 3 per cent year-on-year for CSC’s established centres, building on 2009’s footfall increases.
At St David’s in Cardiff The million-sq ft extension is now 76 per cent let or in solicitors’ hands by area and 74 per cent by income. New openings include Carluccio’s, JoJo Maman Bebe and Hollister.
CSC opened its major new mall, St Andrew’s Way, Eldon Square on 16 February 2010. The mall is fully let. Footfall has been strongly ahead since opening, with new retailers such as Apple, Hollister, Superdry and Guess introduced to the city. Detailed planning consent has now been received for the new 60,000-sq ft flagship store for Next at Eldon Square, Newcastle with various other remodelling projects in the planning process.
In addition, CSC is continuing to explore the feasibility of a number of major extensions to larger centres with a view to strengthening their market position.
