Disposals push up Bredero losses

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The Independent Online
LOSSES on the disposals of the Bon Accord shopping centre in Aberdeen and a development property in Southampton pushed Bredero Properties further into the red in the first half of the year.

The group, which is 49 per cent- owned by Slough Estates, lost pounds 4.4m before tax in the six months to June ( pounds 1.3m loss). The deficit was caused by a pounds 5.4m exceptional charge, about pounds 3.5m of which related to the sale of the Bon Accord centre to Land Securities.

The remainder was due to the Southampton property that the group had intended to develop but is now negotiating to sell because of planning changes.

The Bon Accord sale raised pounds 58m, helping to cut borrowings from pounds 96m to pounds 69m. Most of the interest in this was charged against its Centre West development in Hammersmith and its shopping centre in Paisley. Peter Badcock, finance director, said Paisley, which opened in May, was one of the most successful developments to date.

Last month, it sold a long lease on a third of Centre West to Coca Cola, although Bredero has taken over its West End office as part of the deal.

The loss per share increased from 3.9p to 13.4p and there is again no dividend. The shares closed down 1p at 21p.