TIDMCDFF
RNS Number : 5334M
Cardiff Property PLC
17 July 2014
THE CARDIFF PROPERTY PLC
INTERIM MANAGEMENT STATEMENT 17 JULY 2014
The company makes the following statement in accordance with DTR
4.3 of the FCA Handbook.
From 1 May 2014, the date of the announcement of the results for
the six months ending 31 March 2014 to the date of this statement,
save as set out in this statement, no material property
transactions have taken place.
As announced on the 13 May the company acquired 12,241 of its
ordinary shares for cancellation. The total consideration including
costs was GBP123,126.
The Market
The UK economy, particularly in the South East, continues to
expand and providing the anticipated rise in interest rates are
modest and managed over the next few years, the Thames Valley
commercial and residential property markets should continue to
benefit.
Letting and investment activity in the Thames Valley commercial
property market is improving. The majority of new lettings has
centred towards retail and business units primarily by smaller
business enterprises or start-ups, reflecting the growth areas of
the economy. Enquiries for new and existing office space in the
Thames Valley remains quiet although new lettings indicate a modest
recovery.
In Surrey and Berkshire, the group's main area of operation,
residential sales and lettings have remained active. Improved
capital value and rental levels achieved over the last few years
have been maintained.
The Commercial Property Portfolio
At the White House, Egham (5 ground floor retail units with
offices above), all retail units and office suites are now occupied
on medium term leases.
At the Maidenhead Enterprise Centre, Maidenhead, (6 business
units) all units are occupied on medium term leases. Recent
lettings have achieved higher rental levels although leases
continue to incorporate tenant breaks.
At Heritage Court, Egham (4 retail units), all units are
occupied on a mix of medium and short term leases. Ground rents are
received from previously sold apartments on the upper floors.
At The Windsor Business Centre, Windsor (3 business units), all
units are occupied on short term leases with one tenant holding
over awaiting renegotiation of terms.
The company also retains a business unit in Cardiff let on a
medium term lease to The Royal Mail as a Post Office Sorting Centre
and a freehold residential property in Egham currently let on an
Assured Shorthold Tenancy Agreement.
The group includes Campmoss Property, our 47.62% joint venture,
which retains property in Worplesdon, Bracknell, Burnham, Woking,
Maidenhead and Slough.
At The Priory, Burnham (Business Centre and 3 floors of
adjoining offices), the Business Centre is fully occupied and two
floors of office space let on medium term lease. Following
refurbishment one of the floors remains available.
At Kiln Lane, Bracknell (14 business units and adjoining office
unit), 13 units and the office unit are occupied on a mix of short
and medium term leases. The remaining unit is available on a
flexible lease.
At Gowring House, Market Street, Bracknell (3 retail units with
5 upper floors), all ground floor retail units are occupied on
medium term leases with the first and second floors similarly
occupied by a gym and junior fitness centre. The remaining three
upper floors are currently being refurbished to create 18
residential units comprising 9 two bedroom and 9 one bedroom
apartments. A marketing programme for both sales and letting is now
in progress. The apartments will be offered for sale on long term
leases or let using an Assured Shorthold Tenancy Agreement.
At Market Street, Bracknell (14 retail units) 12 units are
occupied on medium term leases. Planning permission was recently
granted for the demolition of the remaining two retail units
allowing a new development of eight retail units on ground and
first floor. Works are currently in progress and pre-letting
enquiries have been encouraging.
At Britannia Wharf, Woking (office building on 4 floors), the
ground floor is occupied with the 2(nd) and 3(rd) floors currently
undergoing refurbishment following the surrender of an existing
lease. The vacant space including the lower ground floor office
area is being marketed and offered on a flexible short term
lease.
At Clivemont House and Highway House, Maidenhead (both vacant
sites), previous planning permissions were granted for a total of
94,000 sq ft new office space. The commencement of any new
speculative office development is not considered viable given the
current uncertain office letting market. As a result of the
improving local residential market and potential attraction of
Crossrail, discussions are taking place with the Local Authority
for a residential development at Clivemont House.
At Worplesdon View, Worplesdon (78 bed care home), the property
is let on a 30 year institutional lease with rental increases
linked to RPI. Planning permission for additional living space has
been granted and discussions with the tenant are currently taking
place.
At Datchet Meadows, Slough (37 apartments), 25 apartments are
sold on long leases, 5 let on Assured Shorthold Tenancy Agreements
and 7 are under offer for sale on long leases. The level of demand
for these units has remained high throughout the year.
Outlook
A number of new Thames Valley based commercial and residential
property opportunities have been actively pursued but keen
competition has ruled out any new acquisitions. Suitable
opportunities will continue to be appraised.
A number of new office and business unit lettings have recently
been completed and early indications of interest in the group's
retail and residential schemes at Bracknell are positive.
Financial
There have been no significant changes in the financial position
of the company since the publication of the results for six months
ending 31 March 2014. Campmoss, our joint venture, has reduced
indebtedness following the further sales at Datchet as mentioned
above.
The group has adequate resources to complete the proposed and
current development programme.
Dividend
The interim dividend of 3.3p per share in respect of the half
year ending 31 March 2014 was paid to shareholders on 4 July
2014.
J Richard Wollenberg
Chairman
For further information:
The Cardiff Property plc Richard Wollenberg 01784 437444
Westhouse Securities Richard Johnson 0207 601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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