Trafford Centre value raises 3.5% to £926m
The shopping centre “continues to be a ‘must-have’ location for retailers and restaurants,” according to its owner’s latest financial statement.
Trafford Centre is owned by Trafford Centre Limited, part of the Canada Pension Plan Investment Board, which acquired the retail destination in 2020 from Intu Trafford Centre Group.
The company’s 2023 results show that the 2.2m sq ft Trafford Centre has increased its valuation from £895m in 2022 to £926m in 2023.
Helping that effort was a series of lettings, most notably M&S’s 140,000 sq ft lease in November. The centre also saw 14 brands enter the shopping complex, including Lego, Mango, Bath & Bodyworks, ProCook, Lululemon, and New Balance.
The retail asset also saw 30 expiring rents renewed at a rate more than the estimated rental value.
These strong letting figures saw the centre’s rental income reach £64.6m for 2023, £2.3m more than the previous year. Footfall and occupancy level figures also saw a slight increase, with footfall going from 20.1m in 2022 to 20.8m in 2023. Similarly, occupancy went from 91% in 2022 to 91.1%.
However, this was not enough to transform profit figures. Trafford Centre’s pre-tax profit was £69.7m in 2022. In 2023? That figure was £29.2m. The culprit looks to be in the change in fair value of derivative financial instruments surrounding interest rates – with 2022 boasting a £78.8m boost. In 2023, the figure was a £7.4m loss.
Looking beyond the financials, the group gave an update on its sustainability initiatives as the Trafford Centre works to achieve net zero carbon by 2030 in scope one and two emissions.
To that end, 93% of the units in the shopping centre have an EPC rating of C or better. The complex has also achieved its goal to not send any waste to the landfill, instead recycling 62% of the waste generated on site. Another 32% was used to create fuel, while the remaining 6% was anaerobically digested.
The group also noted in its report that nine goslings hatched at Trafford Centre last year. “The company is delighted they have returned in 2024,” it states.
Such a better family destination than town
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We thought so too.
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