Developer China Gateway has been forced to re-work plans for a 1.5m sq ft business park for Chinese businesses in
The developer today announced it had been unable to fulfil a pre-let agreement, which expired this month, with a Chinese government-backed electronics firm for a 1m sq ft warehouse on 50 acres of the site due to a lack of development finance.
China Gateway, which changed its name from Commercial Group Properties last June, had announced it was to start work on the scheme this year, but said construction had now been delayed until next year at the earliest.
Plans for a manufacturing and warehouse complex in Wigan, Greater Manchester, had also been put on hold the company said, while it had sold its holdings in a third planned business park in Dover, Kent, for around £5m.
Chairman Robin Bolton said the company’s results, for the year to 30 November, covered “the worst of the recession, and my prediction that we would be in a position to commence construction at Manston could not be fulfilled due to the lack of any available development finance in the market place”.
However, Bolton revealed a revised strategy was agreed this month with
Each business would purchase a “seat” in the hubs, using it to market their company.
China Gateway said it would begin construction when 50 seats had been sold. One has been sold so far.
The developer also revealed today it had bought a further 5.5 acres next to the Manston site from Kent county council and Thanet district council.
In the year to 30 November, it saw its net asset value rise slightly from £22.4m to £23.8m. Profit after tax was £1.2m.
patrick.clift@estatesgazette.com
