News

Cardiff says new Thames Valley developments unlikely

News

Nathan Cross

27 July 2010

Offices, Residential

South East

Investor and developer Cardiff Property says it is unlikely to proceed with any new development in the Thames Valley unless it can secure a pre-letting.

In an interim management statement for the period 29 April to present, the company said its main emphasis will be on managing the existing portfolio and maintaining the level of gross rental income.

The group, which has a £30m portfolio in Heathrow, Surrey and Berkshire, said the Thames Valley commercial property market continued to suffer from low levels of occupier demand.

“New lettings are being agreed and agents report a reasonable level of enquiries but actual take up of new and second hand commercial space is insufficient to suggest any recovery in demand or rental levels,” the company said.

“New speculative commercial property development in the Thames Valley has virtually ceased.

“The majority of new office buildings completed over the past 12-18 months remain vacant.”

Updating on progress among its developments, the company said:

– At Tangley Place, Worplesdon, discussions for tenants continued its proposed 92 bedroom care home scheme.

– At Highway House, Maidenhead, new access works have now commenced. Planning permission for a new 45,000 sq ft office scheme was granted in 2008 and the agents continue to seek either a full or partial letting before any further development takes place.

– At Market Street, Bracknell, the company is waiting on the outcome of discussions with the Local Planning Authority.

– At Datchet Meadows, Slough, the majority of apartments have been let on Assured Shorthold Tenancy Agreements. Two sales are currently in solicitors hands. Capital values and rental levels are similar to last year.

Cardiff Property said it had enough resources to carry out projects currently in progress and there had been no significant changes in the financial position of the company since announcing its half year results to 31 March.

nathan.cross@estatesgazette.com

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Investor and developer Cardiff Property says it is unlikely to proceed with any new development in the Thames Valley unless it can secure a pre-letting. In an interim management statement for the period 29 April to present, the company said its main emphasis will be on managing the existing portfolio and maintaining the level of gross rental income. The group, which has a £30m portfolio in Heathrow, Surrey and Berkshire, said the Thames Valley commercial property market continued to suffer from low levels of occupier demand. “New lettings are being agreed and agents report a reasonable level of enquiries but actual take up of new and second hand commercial space is insufficient to suggest any recovery in demand or rental levels,” the company said. “New speculative commercial property development in the Thames Valley has virtually ceased. “The majority of new office buildings completed over the past 12-18 months remain vacant.” Updating on progress among its developments, the company said: – At Tangley Place, Worplesdon, discussions for tenants continued its proposed 92 bedroom care home scheme. – At Highway House, Maidenhead, new access works have now commenced. Planning permission for a new 45,000 sq ft office scheme was granted in 2008 and the agents continue to seek either a full or partial letting before any further development takes place. – At Market Street, Bracknell, the company is waiting on the outcome of discussions with the Local Planning Authority. – At Datchet Meadows, Slough, the majority of apartments have been let on Assured Shorthold Tenancy Agreements. Two sales are currently in solicitors hands. Capital values and rental levels are similar to last year. Cardiff Property said it had enough resources to carry out projects currently in progress and there had been no significant changes in the financial position of the company since announcing its half year results to 31 March. nathan.cross@estatesgazette.com To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.