By Jacqueline Mackenzie
UK real estate investment trust Liberty International (LBT) said on Wednesday that it sees opportunities emerging from the unsettled UK financial and property markets of 2008.
The group, which through Capital Shopping Centres (CSC) has significant interests in 14 UK regional shopping centres and through Capital & Counties has substantial assets in central London, on Wednesday reported a 6% rise in adjusted earnings per share to 36 pence for the year ended December from 33.9 pence a year ago.
Net rental income grew 10% to GBP374 million, while profit before tax was up 6% to GBP129 million.
Chief executive David Fischel told a conference call that the business is "in good shape".
"We are well placed to take advantage of opportunities in our existing assets," he said.
The group has GBP1.4 billion in assets in London - the Covent Garden area, including the historic Covent Garden Market, in central London around Regent Street, and through a joint venture with Great Portland Estates, a 50% share in Earls Court and Olympia.
Fischel said if opportunities for acquisitions arise the group will take them.
"We have always been driven by opportunities. We do like central London and see London as the long-term beneficiary of globalisation."
He added that Covent Garden is an amazing asset, attracting 40 million customers a year. Together with its other assets at the heart of the West End, Fischel sees "massive opportunities to improve the whole area".
"So we like London, but we also like shopping centres - that's 75% of our business. There are stacks of opportunities within the existing business. We don't need acquisitions to grow."
He added, however, that if opportunities come along "we are ready to look at them".
The group has committed expenditure of around GBP300 million on several projects at its shopping centres throughout the UK.
CSC's development activities are progressing "according to programme" with two major projects under way - the 967,500 sq ft extension of St David's, Cardiff, opening in Autumn 2009, and the 480,000 sq ft extension of Eldon Square, Newcastle, where the largest phase opens in spring 2010.
"In both cases, we have entered into fixed price construction contracts to ensure control of costs, we have secured anchor tenants and lettings are in line with expectations. We anticipate ample retailer requirements for the attractive and well-configured retail space," the group said.
The compulsory purchase order inquiry for the 750,000 sq ft Westgate, Oxford, refurbishment and extension took place in December 2007 and, subject to a satisfactory outcome, Liberty International will be in a position to commit to the project in 2008 for an opening in 2011.
At MetroCentre, Gateshead, together with its partners, it has acquired the adjoining 220,000 sq ft Metro Retail Park for GBP82.5 million, increasing its overall ownership to over 2 million sq ft.
It has obtained planning permission for the intended upgrade of the leisure and dining facilities.
Source: I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
