THE Braehead shopping centre on the outskirts of Glasgow ran a £12 million deficit in the six months to June 30, it has been revealed.
In its interim results, shopping centre operator intu said the third-party market value of Braehead was £533.1 million, down from £546.2m at December 31.
The group said the reduction in value was a result of the continuation of the less buoyant occupier and investment market in Scotland, and Intu’s chief financial officer Matthew Roberts added the prospect of a second independence referendum has put downward pressure on prices.
He said: “We’ve seen that over the last few years, the last two or three years Braehead has been one of our more challenging letting environments.
“Valuation is driven by the letting performance and what yield they can get for each pound of rent and with all the political uncertainty in Scotland, it’s not just our asset that has seen a price reduction.”
Overall, the group described its performance as robust, with an £18m surplus in the value of its estate. Net rental income up three per cent to £226.2m. The £7m increase came from the impact of acquisitions, which was partially offset by like-for-like net rental income reducing by 1.5 per cent against a strong comparative in 2016.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here