Capital Shopping Centres

Asset management initiatives are a constant feature of the business. In particular, the Boardwalk development at Lakeside, Thurrock, of 11 restaurants overlooking the lake and a refurbished cinema, has traded strongly since opening in June 2007, enhancing activity throughout the centre. At MetroCentre, Gateshead, we have, with our partners, GIC, acquired the adjoining 220,000 sq. ft. Metro Retail Park for £82.5 million, increasing our overall ownership to over 2 million sq. ft. We have obtained planning permission for the intended upgrade of the leisure and dining facilities in the Yellow and Blue Quadrants, with a view to continuing our improvement programme, most notably delivered by the successful 370,000 sq. ft. Red Mall extension which opened in Autumn 2004.

CSC is a retail property business, not a retailer. Our net rental income growth is more correlated to rent reviews, typically on a five year cycle in the UK, and active asset management initiatives, than short-term fluctuations in retail sales. In terms of rent reviews, 2007 was relatively quiet with 11 per cent of CSC’s net rental income coming up for review. These reviews are progressing in line with expectations.

Below are brief details of our CSC shopping centres, with links to their public websites. Additional information on each centre may be found on the Capital Shopping Centres website.

• Braehead, Renfrew, Glasgow (98,470 sq. m. / 1.06 million sq. ft.)
  - Xscape, Braehead (42,730 sq. m. / 460,000 sq. ft.)
• Chapelfield, Norwich (49,240 sq. m. / 530,000 sq ft)
• Cribbs Causeway, Bristol (92,440 sq. m. / 995,000 sq. ft.)
• Eldon Square, Newcastle (90,670 sq. m. / 976,000 sq. ft.)
• Lakeside, Thurrock (133,180 sq. m. / 1.43 million sq. ft.)
• Manchester Arndale (130,060 sq. m. / 1.4 million sq. ft.)
  - New Cathedral Street, Manchester (18,580 sq. m. / 200,000 sq. ft.)
• MetroCentre, Gateshead (189,390 sq. m. / 2.04 million sq. ft.)
• St David’s, Cardiff (39,670 sq. m. / 427,000 sq. ft.)
• The Chimes, Uxbridge (40,880 sq. m. / 440,000 sq. ft.)
• The Glades, Bromley (43,020 sq. m. / 463,000 sq. ft.)
• The Harlequin, Watford (67,450 sq. m. / 726,000 sq. ft.)
• The Potteries, Stoke-on-Trent (52,600 sq. m. / 566,000 sq. ft.)
• Victoria Centre, Nottingham (91,140 sq. m. / 981,000 sq. ft.)
• Westgate, Oxford (69,680 sq. m. / 750,000 sq. ft.)