Asset values rising for Westside developer
Urban & Civic, the firm that is developing the Westside project in Wolverhampton, has seen the value of its assets nationwide rise more than £30m over the last year, to £424.5 million.
The company recently sealed a deal for a one third share of a 400 acre development site at St Neots, in Cambridgeshire, with the aim of building nearly 3,000 homes there.
It is already working on the development of 6,500 homes on the Waterbeach site in Cambrideshire.
But Urban & Civic's pre-tax profits for the first six months of the year have fallen to £4.2 million, half the £8.4m recorded a year ago.
The company said this was due to "pause in commercial sales", although more are expected in the coming months.
U&C has now signed a development agreement with Wolverhampton council for the proposed £55 million, 6.4-acre Westside city centre redevelopment.
Phase 1 envisages a multiplex 12-screen cinema, 90,000 sq ft of additional leisure and restaurants, a hotel with more than 100 bedrooms and a multi-storey car park.
U&C said: "Council-led enabling works continue and there appears good demand from anchor occupiers.
"Construction on the first phase remains subject to funding but is on track to start in early 2018, completing within two years.
"Phase 2 would deliver more than 300 new city centre homes and 50,000 sq.ft. of retail and leisure space. Works on this section of the development are likely to be completed in 2022."
Commenting on the results, chief executive Nigel Hugill said that the competitive position of Urban&Civic as a master developer on large projects was now clear: "The election statements only serve to reinforce the importance attached across the political spectrum to additional large-scale housing delivery.
"Urban&Civic is the most significant new entrant into that market in recent years, with delivery experience honed by over a quarter of a century building infrastructure and critical mass into consistently successful major projects.
"Our Master Developer model is capital efficient, delivering guaranteed quality for our housebuilder customers. Exactly what they want. Our shareholders enjoy real benefits as well. The business captures an increased premium on serviced land, with contracted annual minimum payments that afford good cash flow security. Expect to see us realising other assets to invest more in strategic projects."
