Back to Announcements

Interim Management Statement
RNS - London Stock Exchange | 18/11/2011
Interim Management Statement


18 November 2011


                          INTERIM MANAGEMENT STATEMENT

London & Associated Properties PLC ("LAP" or "the Company"), the
specialist retail investor, today releases its Interim Management Statement for
the period to 20 May 2011 to 17 November 2011.

LAP continuesto regard cash flow as a top priority and we are pleased to report
that our operational performance remains robust.

At King Edward Court, Windsor, we have now placed the construction contract for
the sub-division of the former Boots unit,and are on site. The contract sum is
fixed at £1.15 million and we accepted a surrender premium from Boots that will
cover most of the cost of these works. We are creating two units fronting on to
the mall, the first of which has been pre-let to Cotswold Outdoor, the outdoor
clothing specialist, at a rent rising to £140,000pa. We are also creating a unit
onto Peascod Street, which has been pre-let to Superdry, the fashion retailer,
at £185,000pa. The remaining unit is currently being marketed and interest to
date is encouraging.

We consider that the redevelopment of this unit and the quality of tenant that
we have attracted demonstrate the continuing success of this shopping centre.
The passing rent from Boots was £400,000pa and we expect to comfortably exceed
that once the third letting has completed.

The remainder of King Edward Court is fully let, with the exception of a small
shop which recently vacated and is already under offer.

The rest of our portfolio continues to perform satisfactorily. Orchard Square
in Sheffield remains fully let. Additionally last year we let our two markets
in Brixton to In Shops Ltd on 25 year leases. Both markets are fully occupied
with a waiting list of potential retailers. We expect the markets to continue
to trade well and in due course we will benefit from the profit share
arrangement under the terms of the leases.

We completed a new joint venture in June 2011with Columbus Capital, part of
Schroders' Real Estate Investment and Asset Management Business when we
acquired Langney Shopping Centre in Eastbourne. Langney is trading in line with

We have been appointed by Grant Thornton to asset manage a portfolio of assets
in a West London suburb, for which we will receive advisory fees. We have also
been asked to carry out strategic reviews on retail portfolios by other
parties, including firms of Chartered Accountants and banks.

LAP remains within all of its banking covenants notwithstanding the well
documented difficulties being experienced in the wider economy. Our £47 million
revolving credit facility with Royal Bank of Scotlandis due for renewal within
the next 12 months. We currently have £45.1 million drawn. We are commencing
negotiations with RBS who have indicated that they are looking to renew the

It is difficult to see any improvement in the UK economy in the short-term and
we will remain focused on operational performance and cash flow.



John Heller, Chief Executive, LAP.

Robert Corry, Finance Director, LAP Tel: 020 7415 5000

Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161