Meadowhall’s sales rise amid tough climate

LANDLORD London & Stamford Property said Meadowhall shopping centre’s performance boosted its portfolio amid a tough consumer environment.

However, the group said its net asset value per share slipped to 118.3p in the six months to the end of September, compared with 120.7p a year earlier.

The group, which owns 15.7 per cent the Sheffield shopping centre, said overall sales there increased by one per cent during the period. Some 23 new leases were signed with retailers and another nine with restaurants and caterers.

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“As one of only six super regional shopping centres in the UK, the retailing picture at Meadowhall has remained strong despite the challenging UK economic environment,” said the group.

“We continue our focus on refreshing the retail offer and this period saw the successful openings of new fashion stores for Vans, Van Mildert and Moss.”

L&S said the refurbishment of the Oasis food court is complete, allowing it to introduce new brands such as Giraffe, Rice, Chaophraya and Las Iguanas.

The group said it saw a 51 per cent increase in underlying trading profit to £13m from £8.6m six months earlier.

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However, after exceptional items it slipped to a £3.4m loss versus £23.2m profits a year earlier.

Executive chairman Raymond Mould said: “Over the course of the last six months, the economic and financial uncertainty emanating from Europe has cast a shadow over the UK economy.

“In times such as these, we consider it is necessary to remain cautious and, as a result, we have worked to maintain significant free cash balances to ensure that the business retains its great flexibility and its opportunistic nature.

“We find ourselves currently in a complex market, where prime yields remain firm, sustained by the low cost of capital with significant levels of capital available for prime investment. We have at the same time seen weakening in non-prime property, and we think that will continue due to the increasing occupational risk as a result of the UK economy.

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“Nevertheless we are delighted to have secured £157.5 million of further investment during this period.

“Our existing firepower of about £700m in addition to any resultant cash from disposals, coupled with our asset management skills, put us in a very strong position to take advantage of opportunities as they arise.”