Capital Shopping Centres (CSC) has recorded a surge in profits after they purchased one of the largest commercial properties in the UK, the Trafford Centre back in January. The company’s earnings increased by 53% from £43 million to £66 million since the purchase.
CSC currently has a portfolio of 14 shopping centres, and is worth a whopping £6.7 billion. The centres include some of the largest in the UK: Trafford Centre in Manchester, Lakeside in Thurrock, Metrocentre in Gateshead and Braehead in Glasgow. The centres equate to 16 million square feet of retail space and attract around 300 million customers per year.
The Trafford Centre has proved to be a successful purchase for CSC and was originally opened in 1988 and is currently worth a staggering £1.6 billion. It has over 200 stores with 62 bars, restaurants and cafes which attract over 30 million people per year.
Although people are currently keeping their purses on a tight leash, and with food and energy prices rising, people are still treating themselves to shopping trips, enabling the economy to recover quicker. David Fischel, Chief Executive Officer for Capital Shopping Centres Group expressed, “The Trafford Centre has proved an excellent addition and the Group has a range of active management projects and extensions in the pipeline to deliver future growth. Although the economic environment remains challenging, large centres such as those owned by CSC with a strong catering and leisure component are continuing to outperform”. With this in mind, retailers are competing for the best commercial property spaces to attract the most visitors, enabling CSC to increase rents by 6.1%. CSC saw their net rental income grow from £135 million to £178 million from January to July 2011.
This year CSC has been recognised for its hard work and commitment with an award from The British and International Councils of Shopping Centres and also was awarded the UK’s Top Shopping Centre Investment Manager in the Trevor Wood report ‘Going Shopping’.
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