News

Liberty International reports ‘exceptionally busy’ first quarter

News

Bridget O’Connell

20 April 2007

Investment/finance, Retail

Liberty International will report an “exceptionally busy” first three months as a REIT in a trading update at the company’s AGM today.

Arndale Centre

The FTSE 100-company will reveal “substantial strengthening” of the group’s financial position due to the proceeds of the first quarters transactions combined with £335m of equity raised from November’s share placing.

Transactions in the first quarter included the £426m strategic partnership between subsidiary Capital Shopping Centres (CSC) and GIC Real Estate for 40% share of CSC’s interest in the MetroCentre, Gateshead.

The formation of a £460m central London joint venture with Great Portland Estates and the £127m purchase of the Royal Opera House retail units in Covent Garden were also completed in the first quarter.

“Robust” financial ratios, including a debt to asset ratio of 36% at 31 December 2006, set the company up to continue with the expansion of the business which has aggregate investment properties exceeding £8bn.

The company will confirm that it is to report on a quarterly basis and first quarter results, which include a full external independent property valuation, are to be expected in early May 2007.

An adjusted net asset value per share of 1425p due to notional acquisition costs deducted from market values will be reported as equivalent to 1327p at year end.

In relation to CSC, occupancy levels at the subsidiary’s completed shopping centres remain high at 98.4%, virtually unchanged from 98.6% reported at 31 December 2006.

These occupancy figures exclude new developments, particularly the Manchester Arndale Northern Extension where the final phases of the major 550,000 sq ft addition opened in autumn 2006. The whole 1.4m sq ft centre is now 94% committed by rental value.

“Good progress” continues to be achieved on CSC’s development pipeline, extending existing prime retail locations.

Chairman, Sir Robert Finch said: “REIT status brings many advantages including tax transparency for shareholders, significantly increased flexibility to recycle and enhance our investment properties and an internationally recognised property holding vehicle.

“After an exceptionally busy start to the year, our sound financial position and the underlying strengths of our business mean we are well placed to continue to prosper and to respond to challenges which lie ahead.”

Liberty International will report an “exceptionally busy” first three months as a REIT in a trading update at the company’s AGM today. The FTSE 100-company will reveal “substantial strengthening” of the group’s financial position due to the proceeds of the first quarters transactions combined with £335m of equity raised from November’s share placing. Transactions in the first quarter included the £426m strategic partnership between subsidiary Capital Shopping Centres (CSC) and GIC Real Estate for 40% share of CSC’s interest in the MetroCentre, Gateshead. The formation of a £460m central London joint venture with Great Portland Estates and the £127m purchase of the Royal Opera House retail units in Covent Garden were also completed in the first quarter. “Robust” financial ratios, including a debt to asset ratio of 36% at 31 December 2006, set the company up to continue with the expansion of the business which has aggregate investment properties exceeding £8bn. The company will confirm that it is to report on a quarterly basis and first quarter results, which include a full external independent property valuation, are to be expected in early May 2007. An adjusted net asset value per share of 1425p due to notional acquisition costs deducted from market values will be reported as equivalent to 1327p at year end. In relation to CSC, occupancy levels at the subsidiary’s completed shopping centres remain high at 98.4%, virtually unchanged from 98.6% reported at 31 December 2006. These occupancy figures exclude new developments, particularly the Manchester Arndale Northern Extension where the final phases of the major 550,000 sq ft addition opened in autumn 2006. The whole 1.4m sq ft centre is now 94% committed by rental value. “Good progress” continues to be achieved on CSC’s development pipeline, extending existing prime retail locations. Chairman, Sir Robert Finch said: “REIT status brings many advantages including tax transparency for shareholders, significantly increased flexibility to recycle and enhance our investment properties and an internationally recognised property holding vehicle. “After an exceptionally busy start to the year, our sound financial position and the underlying strengths of our business mean we are well placed to continue to prosper and to respond to challenges which lie ahead.”