SHOPPING centre owner intu saw £40 million wiped off the value of Braehead last year as the centre felt the effects of a less buoyant occupier and investment market in Scotland.
Intu saw shares climb 6.75 per cent yesterday as it revealed a seven per cent increase in underlying earnings to £200 million on revenue up four per cent to £594m.
But profits plummeted by two-thirds to £172 million on net rental income of £447m as a result of the group having to treat the book value of the increase or decrease in its biannual asset revaluations as a profit or loss.
This year saw a £63.8m revaluation deficit, after a high increase in 2015. This included the £40.8m deficit on Braehead, its only site in Scotland. The market value of Braehead was cut by 6.7 per cent to £546.2m.
Intu’s long-planned extension to Braehead is now slated for 2019 onwards. Planning permission for the extension was granted last year and Matthew Roberts, chief financial officer, said the group was currently in discussions with retailers about pre-letting new spaces – including department stores.
The 1.1 million square feet site currently has 122 stores and generated rental income of £27.2m, up £1m on last year. Its occupancy is 97 per cent.
“Braehead is fighting back well,” said Mr Morris. “Footfall in the last few months is strong and we have some exciting plans.”
This includes refurbished entrances, and a new-look bowling facility while a planning application has been submitted for a large trampoline operator.”
The planned extension would see the addition of a new department store, plus a mixed-use arena.
Overall, the group delivered six per cent growth in underlying earnings per share to 15p, and lifted its year-end dividend to 14p per share.
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