11th Feb 2015 10:24
LONDON (Alliance News) - Urban&Civic PLC said Wednesday that it is seeing "continued good progress across all aspects of the business" in the four months to end-January, as well as good progress on the development of a 330 bedroom hotel at Stansted airport.
In a statement ahead of its annual general meeting the real estate company said conditional contracts have been exchanged which provide for it acquiring the virtual freehold of a 2 acre site for a new hotel with direct pedestrian access into the Stansted airport terminal for a fixed consideration of GBP8 million.
Outstanding conditions are expected to be satisfied by the end of March, and construction is expected to begin in July. The target is for the hotel to be open for trading by Christmas 2016.
Elsewhere, government grant funded demolition to allow for early development of Alconbury is now complete, and there has been an "encouraging level of commercial enquiries."
Preliminary works on the first primary school at Alconbury has begun and negotiations are advancing with local housebuilding partners for 127 new residences. Construction is expected to start in the Autumn with first occupations in spring of 2016.
The company expects to complete the acquisition of its contracted joint interest from BT Group PLC on its project in Rugby no later than the end of March. It said that progress on the site has not been hampered by a delay in the completion of this acquisition, and no interest is payable on the outstanding consideration of GBP16.7 million.
It has begun the relocation of the resident newt population at the Rugby site ahead of schedule, which it said should allow early works on the site to be brought forward to the summer.
The company said it is making good progress in discussions about bringing back existing buildings in Waterbeach into use. The second sessions for the proposed local development plans for South Cambridgshire District and Cambridge City are about to commence, Urban&Civic said.
Construction at the Feethams leisure scheme in Darlington and the Middlesborough Gateway Sainsbury's food store remains on schedule, and it expects to see the remaining profit on delivery from the Gateway development in the current year.
At its Herne Bay development the company expects to be on-site after Easter, with handover and rental to begin in Spring 2016.
The company expects to receive GBP6 million from the sale of its minority holding of an office and residential development at Howick Place that is currently under offer.
Additionally, it has held meetings with Manchester City Council after it bought two development sites last year. It said that the council appears "supportive of our plans for what are regarded as key projects for the city."
"The clear need to build houses on strategic sites serving fast growing populations appears one of the few areas of genuine political consensus in the run up to the Election. Altogether, the Group feels to be in a good place," said Executive Chairman Nigel Hugill in a statement.
Shares in Urban&Civic are trading up 1.0% at 270.85 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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