TCS has high hopes for Leeds Arena

In a statement to accompany its annual results, the company said it had a “cautious” outlook with regards to the UK economy.

The company said building work had started on the new Leeds Arena, a 13,500 seat concert and events venue which is opposite TSC’s Merrion Centre.

In a statement, the company said: “This has presented us with a number of opportunities including a leisure development of bars, restaurants and a gym to replace the former Merrion Market creating a new frontage for the centre.”

A detailed planning application has been lodged and subject to a satisfactory consent, the company expects to be on site in the first quarter of 2012 with completion to coincide with the Arena opening in Spring 2013.

The Leeds-based company said it would shortly complete the refurbishment of the retail units and offices on Merrion Street, where it has pre lets to KFC, Coral and Q Park.

Statutory profit after tax in the year ended June 30, amounted to £15.3m, compared with £39.6m the year before. The company said that this included a valuation surplus of £6.7m reflecting the returns on investing in and managing the portfolio in what had otherwise been a flat market.

Last year’s result included a valuation surplus of £25.4m and a £9m profit on the debenture buy back.

Overall occupancy levels rose from 93.2 per cent to 96.9 per cent, and the Merrion Centre’s income grew for the sixth consecutive year. There had been a significant improvement at TSC’s Urban Exchange, in Manchester following lettings to Go Outdoors, M&S and Pure Gym. Disposal of assets raised proceeds of £6.5m.

The chairman and chief executive Edward Ziff, said: “We continue to implement our strategy for growth. Our results reflect our emphasis on securing income for shareholders and the returns we have made by investing in our existing portfolio.

“We remain cautious about the economy however and are wary of the potential for tenant failures and pressure on rental levels. Our investment in Urban Exchange in Manchester demonstrates our ability to successfully redevelop and manage major retail assets and to attract major tenants.

“We firmly believe that projects at Merrion Centre in particular and across our remaining portfolio will in due course enhance our asset value and income generation, ultimately improving our returns and thereby enhancing shareholder value.”