Town Centre well-placed for an upturn in economy

At the Merrion Centre, Pure Gym opened a new leisure unit in early October.

Costa Coffee and Cosmo, a pan-Asian cuisine restaurant with 11 units in the UK, have also taken possession.

A further two units are in solicitors’ hands leaving three available to let.

Leeds-based Town Centre said the three units have attracted “significant interest” following the opening of the adjacent arena in July.

It has also extended the lease on the bowling alley on Merrion Way for a further 25 years.

Since July 1, four tenants have entered administration including shoe chain Barratts at its property in Apperley Bridge, Bradford. Town Centre has obtained council support for residential redevelopment of the property.

Over the past four months, Town Centre said that occupancy has slipped slightly from 98 per cent to 97 per cent. The group has exchanged contracts with Leeds City Council to refurbish and extend Merrion House in an agreement which will enable all the council’s main services in Leeds to operate from a single, modern facility.

The council will enter into a new 25-year lease from practical completion, which is expected to be in 2017, and will take a 50 per cent interest in the site.

Detailed planning consent has been won for a 128-bedroom hotel and a council resolution to grant outline planning consent for a 600,000 sq ft mixed use development at Whitehall River- side.

This will include three eight-storey office buildings and a 500-space multi-storey car park.

Chairman Edward Ziff said the car parking operation is benefiting from the investment in new parking management equipment in Leeds during the last 12 months.

“In particular, our increased use of social media allows us to benefit from changing consumer purchasing behaviour and payment technologies,” he said.

He added that the firm is well placed to take advantage of the early signs of economic improvement.

“I am delighted with the agreement with Leeds City Council to refurbish and extend Merrion House, demonstrating the strategic importance of the Merrion Centre in Leeds city centre.

“Economic recovery is slow, but our strong asset management capability maintains our high occupancy levels which underpins our rental income and profitability,” he added.

The group announced a return to profit in the year to June 30. It made an annual pre-tax profit of £3.6m, up from a £4.2m loss last year.