£84m value on two Irish shop centres

THE St Stephen's Green Shopping Centre and the Swan Centre at Rathmines have been revalued at £85 million by landlord British Land in group property valuations ascribing detailed figures for the key Dublin shopping centres for the first time.

Although comparative valuations for the Dublin properties are not available, British Land indicated that the annual revaluation, had thrown up a "useful increase in values of the two shopping centres."

After the disposal of Dutch and American investment properties over the past years, the group's "overseas" property assets are now limited only to the two Irish property holdings commanding a combined value of £85 million. British Land's involvements in other Irish property developments, notably the International Financial Services Centre, have been presold.

Mr John Ritblat, chairman of British Land, said that construction of the extension to the St Stephen's Green Shopping Centre is "progressing well." "The entire 43,000 sq ft restaurant/retail content of the scheme will be ready for fit out by Planet Hollywood and T K Mazz well in advance of the completion date in December 1997," he said. "The Inn on the Green, which is the new 113 hotel element of the scheme presold to the Fitzwilliam Hotel Group, is due to open at the same time.

"The Custom House Docks Development goes from success to success. Well over 1.25 million square feet have been built and sold, including over 700,000 square feet of offices, 333 apartments and an hotel and, in addition, a 400 space car park.

"One further office building of 51,000 sq ft net is under construction for completion in November 1997 and negotiations are under way for its leasing or sale with a number of interested parties. "Only 43,000 sq ft of a series of terraced offices known as Exchange Place are currently available. "Our remaining office block in Blackrock was profitably sold during the year.

Annual figures from British Land for the year to March 31st provided confirmation of the recovery in the UK commercial property with revaluations lifting the value of total properties under its management, including joint ventures, to £5.8 billion. Net assets per share increased 14.3 per cent per share to 487 pence while pretax profits increased 47 per cent to £91 million leading to a 40 per cent uplift in earnings per share to 15.7 pence. Total dividend payments are 5.3 per cent higher at 9.0 pence per share.

Overall, values of the group's own properties increased 5.9 per cent to £4.45 billion led a 6.0 per cent rise in retail values.

Shop ping centres, including the St Stephen's Green and Swan Centre shopping centres in Dublin, surged 8.8 per cent while retail warehouse values surged as much as 14.7 per cent following a 20.3 per cent gain in 199596.

The strong rise in retail property values contrasted with a 0.7 per cent decline in 1995-96 before the revival in UK consumer spending began to get under way. But UK office values are on the rise as well with City offices up 6.9 per cent and West End offices up 4.8 per cent compared with a 7.1 per cent fall in 1995-96.

"Improvements in the economy coupled with low rates of interest and inflation have created a more favourable climate for property," commented Mr Ritblat. "The continuance of a political climate accepting the free market is also highly significant for us, as the property perspective is a long one.