Trafford Centre value hits £2.2bn

The value of the Intu Trafford Centre passed through the £2bn mark at the end of last year according to the latest annual results from owner Intu Properties.

The 1.9m sq ft centre was valued at £2.2bn on 31 December, a 16% increase worth £300m on the valuation 12 months earlier.

The headline rent is now £425/sq ft Zone A at the mall which has 233 stores, 95% occupied and generating £86.9m rent a year.

Intu said in its final results today that the Trafford Centre had "benefited from the strong yield improvement seen on super-regional centres and an increase in the headline rents as a result of evidence from new lettings."

Intu also owns 48% of the 1.6m sq ft Manchester Arndale shopping centre, the remainder being held by M&G Real Estate. The Arndale was valued at £430m, a more modest 7% rise on a year earlier.

Across the whole portfolio of UK and Spanish malls owned by Intu, net asset value increased 8.2%, or £648m, to £8.9bn. The debts to assets ratio was 44%.

During the year, Intu signed 210 long-term leases for £34m new annual rent at an average 5% above previous passing rent.

David Fischel, chief executive of Intu Properties, commented: "Intu's improved 2014 results demonstrate we are well positioned to benefit further from rising consumer confidence and strengthening demand from retailers for quality space. As the UK's leading owner and manager of prime regional shopping centres, we welcome over 400 million customer visits through our centres each year and our clear focus on delivering outstanding customer experience under the intu brand is proving a powerful factor in the successful performance of our centres. Following excellent acquisitions both in the UK and Spain in the last few years, we also look to the organic growth opportunity from driving forward our £1.9bn development programme."

Shares in Intu slipped 17p to 355p.

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