Drop in footfall for Capital Shopping Centres

Capital Shopping Centres, which owns 10 of the top

25 shopping centres in the UK including Manchester’s Trafford Centre, Lakeside and Cribbs Causeway, has reported a 2 per cent drop in footfall at its shopping centres in the year to date.

This figure though is still better than the national average, when compared to a decrease in UK footfall of 3 per cent that Experian has reported.

The interim management statement report also stated a drop in occupancy across its shopping centres, down 2.4 per cent from the end of 2011 to 94.3 per cent occupied. This is due in part to Christmas tenant administrations and expiry of seasonal lettings. In addition, the company added that 3 per cent of its rentals, a total of 75 units, entered administration in the first quarter of 2012.

The statement did bring some good news as CSC added that it had signed 42 new long term leases, in aggregate £10 million of annual rent, around 10 per cent above previous passing rent and in line with ERV for those units. These include: Forever 21 coming to the Trafford Centre following the opening this autumn of their flagship at Lakeside; and Superdry is to extend into an adjacent unit at The Trafford Centre and to open in the former HMV store in Manchester Arndale.

David Fischel, Chief Executive of Capital Shopping Centres Group PLC, commented: “CSC is determined to provide the best experience to shoppers and to continue to attract leading retailers to our prime regional centres, with 27 new stores opening in the period. While the UK retail environment remains tough, we continue to benefit from last year’s transformational Trafford Centre acquisition as we focus on securing the right retailers in the right places paying the right rents with the objective of achieving strong total returns from our assets.”