TCS narrows losses, looks to two big Leeds schemes
Town Centre Securities chairman and chief executive Edward Ziff spoke of continued resilience, as the property group reported losses of £3.4m, compared to £7.8m the previous year.
TCS’s portfolio has seen its valuation decrease by 2.4% year-on-year from June 2024, the company said in declaring its financial results for the year to 30 June 2025. Statutory net assets stand at £112.3m.
Ziff said: “This was a year of continued resilience for Town Centre Securities, despite international geopolitical and domestic issues causing uncertainty in the UK economy. We have focused on our core operations, maintaining a cautious approach rooted in financial prudence, and positioning TCS for long-term value creation.
“Our property rental business, car park and hotel operations continue to deliver resilient underlying revenues and earnings in a challenging macro-economic environment. These conditions have led to outward movements in the underlying yields and a further small valuation reduction of our property portfolio.
“In the last year we have seen inflation reducing but still above the Bank of England’s target of 2%, and alongside this the base rate has reduced; however, with our continued low levels of variable interest rate bank debt, I am confident that we are in a strong position in these uncertain times.”
TCS remains on the front foot – in June it appointed agents on Z, an 11-storey, 111,000 sq ft office at Leeds’ Whitehall Riverside, hinting at its preparedness to start building once a pre-let is secured. Summer also saw the group secure approval for another major scheme, a student living-led redevelopment and expansion project at the Merrion Centre.
Ziff continued: “Our attention is focused on both our core operations and on investing in our development programme over the coming years. However, we remain mindful that taking advantage of potentially accretive opportunities needs to be balanced against retaining robust finances.”
“Overall, the business has been reset, with a more diverse portfolio of assets and historically low levels of variable rate borrowing.”
TCS said its long term strategy of active management and redevelopment, to drive income and capital growth, has continued – the firm has a diversified portfolio comprising 30% invested in retail and leisure; 29% offices; 14% car parks; 14% residential; 9% developments; and 4% hotels.
Leeds and Manchester account for 89% of TCS’s portfolio. The void rate across its portfolio decreased to 7.4% at 30 June 2025 from 8.1% at 30 June 2024, while rent collection for the period stayed the same at 99.2%.
TCS described as “comfortable” its loan-to-value headroom over bank facilities of £24.6m based on 30 June 2025 borrowings and valuations.
