The predictions effectively put thousands of shopping-centre tenants around the country on notice to expect significant rent rises. "For the immediate future, our revenue-growth prospects are underpinned by the forthcoming cycle of five year-rent reviews," says chairman Donny Gordon, "which specifically involves our three largest regional shopping centres: Braehead, Lakeside and MetroCentre where in each case we expect major recent initiatives to produce very positive rental growth."

The strength of the UK retail market was reflected in interim results published today. Adjusted net asset per share was up 6% to €1.44 ($1.77) after a revaluation revealed €248.7 ($306 million) surplus and pre-tax profits were up 14.8% to €91.5 million ($112.7 million).

Most of Liberty's assets are retail and regional shopping centres, and the entire portfolio is valued at €7.8 billion ($9.6 billion). Roughly €419.5 million ($516 million) of committed project expenditure remains to be spent, primarily on the Red Mall at MetroCentre and Chapelfield Shopping Centre, Norwich, where lettings are well advanced. "In addition, potential but as yet uncommitted projects amount in aggregate to a further €1.5 billion ($1.8 billion)," adds Gordon.

On the question of REITs, chief executive David Fischel says Liberty would consider moving some of its portfolios into such a vehicle providing it was beneficial to shareholders. "If the level of conversion charge is set too high, we won't do it," he says, "but I'm hoping the government will take a sensible attitude. There is no doubt that REITs would be positive for the industry, and Liberty would be an attractive candidate given its high quality retail portfolio."