TCS sells Deansgate property

Michael Hunt

Leeds-based Town Centre Securities has disposed of a building on Deansgate in Manchester for £5.2m.

The property has been sold to asset management group Threadneedle, which is the same building previously occupied by the former Daisy & Tom toy store. The company sold the upper floors of the building last July.

Within an interim management statement on the London Stock Exchange this morning, the company said during the period from 1 January to 13 May 2010 disposal proceeds have amounted to £5.65m and that the proceeds from the disposal in Manchester will be "used to reduce borrowings".

TCS did not give further details in its statement of which property has been sold but it is has confirmed to Place that it has sold the lower floor units at the Deansgate building, which is currently let to Stables.

As at 13 May 2010, the company said it had net debt of £141.0m, which was reduced from £146.7m on 31 December 2009.

TCS also added that it has loan facilities, a combined £85m, with maturity dates from 2012 to 2014, and "£15m of overdraft and money market facility". The company said there is significant headroom in its facilities and that it continues to operate comfortably within its loan to value and interest cover covenants.

TCS let part of the large former Ilva store at Piccadilly Basin in Manchester to supermarket chain Aldi recently and is currently in talks with two new retailers about occupying space within the site before the end of the year, although it did not mention it within this morning's statement.

TCS said occupancy levels have improved further in the period from 93% at 31 December to 93.9% at 13 May 2010.

Edward Ziff, chairman, said: "Since our half year results we have successfully focussed on increasing income from our existing portfolio in a gently improving market. We are pursuing retail and car park investment opportunities to grow our business and take advantage of our sound financial position."

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