Funding for the 92,900 sq m (1m sq ft) Trafford Centre at Dumplington near Manchester, may be adversely affected by the Finance Bill, according to Peel Holdings Chairman John Whittaker.
In the company’s interim statement Whittaker warned that the Bill, which is currently going through Parliament, contained provisions that could cut some of the benefits originally envisaged when the £217.6m funding was put in place last August.
He added: “It is still too early to assess any impact but retrospective legislation, as this would be, is rarely fair.”
Peel has agreed a development finance package for the Trafford Centre with a consortium comprising Lloyds Leasing, Lloyds Bank, Bank of Scotland and Royal Bank of Scotland.
The developer has let 50% of the Trafford Centre to tenants including Selfridges, Debenhams, UCI, Boots and C&A. Peel is also in negotiations with users for the sports complex on a 60.7 ha (150 acre) site adjacent to the centre.
Peel’s interim results for the half year ending 30 September 1996 show a pre-tax profit of £5.46m – up from £4.94m for the same period last year.
The results report a slow improvement in demand with voids down to 5.3% of the total rent roll compared with 8.9% two years ago. Net rental income increase marginally to £0.46m.
During the same period Peel spent £17m on land acquisition, but Whittaker said: “The Group will not be tempted to undertake excessive development risks simply to compensate for a flat investment market.”
EGi News 31/01/97
