18th Jul 2014 06:59
LONDON (Alliance News) - Development Securities PLC Friday said the period since March 1 has been an "exciting" time for the company, as it added to its portfolio, notably through the GBP20.9 million acquisition of Cathedral Group Holdings Ltd in May.
The acquisition of the mixed-use regeneration developer added nine projects in Greater London and the South East of England to Development Securities' portfolio, representing over five million square feet of residential-led mixed-use development.
"This has been an exciting period for the company, with the acquisition of Cathedral Group significantly strengthening both our pipeline and our resources," Chief Executive Michael Marx said in a statement.
During the period, Development Securities also secured GBP44.1 million in funding to bring forward the development of two mixed-use regeneration projects. One of the regeneration schemes is at Shepherd's Bush market in west London. The six-acre site has outline planning consent for a GBP150 million mixed-use regeneration project that will include a revitalised market, up to 211 residential units, and over 14,000 square feet of retail and leisure space.
In June, Development Securities acquired a 1.7 acre development site in Dublin for EUR40.5 million as part of a joint venture with Colony Capital LLC. The site has planning permission for a 166,000-square-foot prime office building and demolition works are now underway to prepare for a start on site within the next six months, it said.
The company also said "with demand for good quality, regional secondary assets strengthening, we have continued to dispose of investment assets within our portfolio where our business plan is now complete."
In March, it sold a retail scheme in Winchester for GBP23.3 million followed by the GBP6.5million sale of Bruges Place, an office building in North London.
In April, the company restructured its EUR47.0 million floating-rate loan notes and associated hedging and cash collateralisation arrangements, shortening the maturity of the loan to 7 years from 13 years. Development Securities said this has reduced its combined interest, hedging and transaction costs by GBP800,000 a year.
Looking ahead, the company said it remains committed to its long-term goal of generating enhanced returns through regeneration, predominantly in Greater London and the South East of England.
"We have maintained a high level of activity across our diversified portfolio of projects during the period, as we continue to deliver value and growth through real estate regeneration," Developement Securities said.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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