The owner of Dundee’s Overgate shopping centre expects to bring new retail names to the building after posting a 9% hike in revenue profits during the six months to September.
It is understood property firm Land Securities, which also owns the out-of-town Kingsway West Retail Park, is poised to reveal new fashion and health food outlets in the coming days, with the stores likely to open their doors in the New Year.
The company used its interim results statement to stress it was working hard to ensure shoppers had access to the “best retail offering possible” at its properties in Dundee, Glasgow and Livingston.
Land Securities’ update follows the £189 million sale of Aberdeen’s Bon Accord and St Nicholas shopping centres last month, in which it was a joint venture partner with British Land.
It also comes after Dundee councillors refused fresh planning consents which would have led to retail giant Next opening a Home & Garden outlet at Kingsway West.
Land Securities’ senior portfolio manager for Scotland, Katherine Armstead, said the group’s locations continued to perform well “despite tough market conditions”.
She hailed high retention levels and a void rate below the national average and singled out Dundee’s Overgate for particular praise, saying it remained “the dominant retail offering in the city”.
“We will soon be announcing new lettings at the centre which I am sure will be popular with shoppers,” Ms Armstead added.
The group said it had no update on small-scale expansion plans which could, in time, lead to new building on open ground off Willison Street.
It had been exploring what it called “asset-management opportunities” while an ambitious £50m plan to double the size of the shopping centre remains on ice.
Meanwhile, it expects to add a “family-focussed activity” to The Centre in Livingston and praised trading at the Glasgow’s Buchanan Galleries.
Bolstered by a £209.8m valuation surplus, the group’s pre-tax profit climbed to £397.9m from £131.4m during the equivalent period last year.
Acquisitions worth £210.2m have been completed since March.
Chief executive Robert Noel said his firm’s strategy was planning the next generation of retail parks and shopping centres.
“We have kept voids low, sold assets in non-core locations and recycled the capital into leisure as consumer demand for experiences grows,” he said.
The group’s other focus is developments in London, where lettings are stepping up at two projects in Victoria.
Land Securities said the “solar glare issue” which saw the curved glass faade of the 37-storey ‘Walkie Talkie’ building on Fenchurch Street melt car parts earlier this summer was close to resolution and had not affected rentals there.
A further £691m has been committed to developments in the UK capital since March, Land Securities added.
“We are maintaining our balance sheet discipline, basing our decisions on property fundamentals and remain confident in our strategy,” Mr Noel said.
Land Securities’ board recommended a 2.7% rise in the interim dividend to 15.2p.
Land Securities also announced the appointment of 3i managing partner Cressida Hogg and Jupiter Fund Management chief executive Edward Bonham Carter as non-executive directors from January 1.
Former Marks & Spencer boss Sir Stuart Rose will step down after 11 years on the board.