Town Centre Securities reports positive trading

In the year to the end of June like-for-like passing rent rose 4.1% and occupancy fell to 95% from 99% from a year earlier, Town Centre said in a trading update.

The performance includes more rent from Leeds City Council for Merrion House, the council’s main city centre office. Group occupancy fell because of a vacant unit in Milngavie, Scotland.

Leeds and Manchester, where the company owns the Piccadilly Basin development, make up almost three-quarters of Town Centre’s portfolio with the rest in Scotland and London. The company is reducing its exposure to retail property, including the sale of a unit on Princes Street in Edinburgh for £3.3m.

Edward Ziff, chairman and chief executive, said: "We continue to make good progress against our strategic aims. The activity of the last 12 months reflects our strategy of continually improving the quality and sector mix of our portfolio for the long-term, whilst ensuring we have a balanced regional portfolio.”

Town Centre said its CitiPark car parking business was achieving strong revenue and profit growth and that trading at its newer branches was improving. The company will report annual results on 26 September.