Conygar Investment Company’s net asset value has fallen below £100m following the writing down of £1.4m of costs in connection with its plans to develop a residential scheme at the 14.7-acre Fruitmarket site in Bristol.
The scheme was written down to reflect market conditions impacting the viability and progression of the project, said Conygar.
NAV was £91.2m in the six months ended 31 March, down from £122.3m in same period last year. Alongside the write-down, the reduction was caused by debt financing and administrative costs.
The group incurred a loss of £3.8m over the period, which it said was “substantially derived” from net operational, financing and administrative losses of £2.4m as it continues the transition of its consented development plots at its Island Quarter project in Nottingham to income-producing assets.
Despite the decline in NAV, the firm remained confident, with a 693-bed Island Quarter student scheme in Nottingham (pictured) set to complete before the end of this month and student lettings “progressing well”. Around 40% of all enquiries are converting, said the group.
Conygar has also submitted detailed plans for a second phase of student accommodation at the site, proposing a further 383 beds.
Chief executive Robert Ware said: “Investment activity will take time to return to the levels seen before the market downturn. However, as inflation and interest rates recede, such that costs become more stabilised, the viability of funding opportunities should improve.
“Given the significant progress made at the Island Quarter, Nottingham, and with investors prioritising high-quality and sustainable investments we are optimistic that opportunities will evolve over the coming months and years which should enable us to maximise the returns from this and our other development sites.”
Image © DAY Architectural
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