Don't be fooled by the name. Since property giant Liberty International last year hived-off its London estates as a separate listed entity and rechristened itself Capital Shopping Centres (CSC), it has had no exposure to the capital whatsoever. And that's the problem. With no stake in London's international economy, which has been buoyed out of recession by the weak pound, it looks like a pure play on austerity Britain.
IC TIP:
Sell
at
341p
Tip style
Sell
Risk rating
High
Timescale
Long Term
Bull points
- High-quality portfolio
- Decent dividend payout
Bear points
- Finding tenants will be tough
- Little scope for valuation gains
- No organic growth in the rent roll this year
- No major development plans
The company claims it will be protected by the top-notch quality of its portfolio. CSC owns some of the largest out-of-town shopping centres in the UK - including the vast Trafford Centre in Manchester - as well as a number of smaller city centre malls in cities such as Cardiff and Norwich.