TIDMLAS
FOR IMMEDIATE RELEASE
19 November 2010
LONDON & ASSOCIATES PROPERTIES PLC
INTERIM MANAGEMENT STATEMENT
London & Associated Properties PLC ("LAP" or "the Company"), the specialist
retail investor, today releases it's Interim Management Statement for the
period to 19 November 2010.
Trading over the period continued to be satisfactory in spite of the current
economic situation within the UK. LAP remains focused on cash flow and is
pleased to report that approximately 95% of rents due on the September quarter
day were collected within 14 days. As at today, some 99% of rents for that
period have been received.
The shops at our principal centres, King Edward Court, Windsor, and Orchard
Square, Sheffield, remain fully let. In addition we have completed a
significant number of lettings at our two markets in Brixton, London, which now
feature as noteworthy places in Visitor's guides to London and have been
acclaimed in both national and local press. For the first time in 20 years our
Brixton markets are operating at full capacity as a result of our concerted
efforts over the last 12 months. This higher income has made a noticeable
difference to the profitability of both these markets.
Vacancies across the total portfolio remain at just under 2% by rental value
from a total annualised rental income of GBP16.3million.
Since the half year review, we have completed the disposal of Antiquarius, our
investment in King's Road, London, for GBP17.8 million in cash. We used part of
the proceeds to pay down GBP12.75 million from our revolving credit facility with
Royal Bank of Scotland. The balance has been added to our cash reserves.
As a result of this transaction, we now have reduced the borrowings on our
revolving credit facility to GBP48 million. We have also commenced the
cancellation of the swaps related to this borrowing, and have paid GBP1.95million
to break a nominal GBP10million of swaps. This will lead to an annual cash saving
approaching GBP0.5 million. Cancellation of other swaps that are no longer
required after paying down loans will be considered over the coming months.
Since reporting its half year results, LAP has been appointed by a leading firm
of accountants to asset manage a substantial portfolio of shopping centres that
were placed in administration. Since our appointment we have improved cash flow
and have instigated a number of management initiatives. On the back of these
initiatives, the centres are currently being marketed for sale and LAP is
overseeing and advising on the disposal process.
The quality of our portfolio continues to leave us relatively well placed to
ride out the current economic difficulties. We therefore remain cautiously
optimistic.
Ends.
Contact:
London & Associated Properties PLC. Tel: 020 7415 5000
John Heller, Chief Executive
Robert Corry, Finance Director
Baron Phillips Associates Tel: 020 7 920 3161
Baron Phillips
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