Shopping centres boost for Capital

BY TOM STEVENSON

Deputy City Editor

The increasing value of out-of-town shopping centres was confirmed yesterday by Capital Shopping Centres, the recently floated property company that specialises in retail investments.

The value of CSC's portfolio, which includes the Lakeside centre alongside the M25 in Essex, rose 7.5 per cent in the 10 months from flotation from £748.5m to £805m, benefiting from a rise in income of 23 per cent compared with 1993.

Donald Gordon, chairman, said the drift of shoppers away from the high street continued during the year with 110 million people visiting CSC's seven centres during the year. Lakeside alone had 20 million shoppers through its doors.

"Shopping, particularly on Sundays, has become a social outing and a way of life for the entire family. There is a shift in spending from inadequate high streets to regional centres." he said.

Mr Gordon's comments will add fuel to the growing lobby against out-of- town centres, which are seen as the principle culprits in the the rapid decline of many British towns.

John Gummer, the environment secretary, has moved to curb planning consent for retail developments at odds with his desire to see revitalised, viable town centres.

According to some estimates about three quarters of the UK population now lives within 30 miles of a large regional shopping centre. Within three years a third of all retail sales will be made away from the high street.

Despite the valuation benefit of tighter planning rules, Mr Gordon hit out at the government's change of policy: "We would question the wisdom of an artificial suspension of consents. In the long-term it is open to debate whether free market forces can be influenced other than to the detriment of choice to the shopping public."

In the nine months to December, pre-tax profits were £28.1m, earnings per share were 6.3p and the maiden dividend of 5.25p was slightly higher than the 5p forecast in CSC's flotation prospectus. The shares closed 6p higher at 204p.