The Sheffield shopping mall's parent company British Land has just reported its first annual loss in 20 years, with a profit of £2.45 billion in 2006/07 vanishing into a £1.56 billion deficit for the year ending March 2008.

The company has reassessed the value of its assets in the light of the economic downturn, reducing Meadowhall's worth by nearly 10 per cent to £1.5 billion.

The group - which had considered selling off a large part of Meadowhall last year - said the 1.5m square foot shopping centre had recovered well from the devastation of last year's flooding with rental values up 2.9 per cent.

Following the flooding last June more than 100 stores on the centre's lower level had to be refurbished.

British Land said the centre had since secured more than 30 new lettings and lease renewals covering more than 240,000 square feet.

New stores included a flagship Topshop and units housing All Saints, Hobbs and The Pier.

Meadowhall, which first opened in September 1990, has an occupancy rate of 97.6 over cent and makes a net income in excess of £70 million a year.

Chief executive Stephen Hester said: "We are in a stressed economic and market environment. Nevertheless, British Land has never been in better shape to weather the downturn and emerge with growth prospects intact or even enhanced."

British Land is working with Sheffield city council on plans for the land it owns next to the centre. The proposals include offices, residential and car showroom facilities.

READ MORE
Your letters.
Today's features.
Latest sport.
Main news index.