Hammersmith Grove, London W6
In October 2006, following a detailed selection process, Development Securities
was selected by Transport for London as its preferred development partner
for the 1.5-acre Hammersmith Car Park Site immediately adjacent to Hammersmith
Underground Station. Consultation with the relevant planning authority is
underway, with the anticipation that construction on site can commence by
the end of 2007, in order to deliver the completed 350,000 sq. ft. building
to include offices, retail, and a cinema by the end of 2009.
West Quay III, Southampton
Significant milestones have been achieved at the West Quay Road site in
the centre of Southampton. Firstly, in the autumn, we signed an Agreement
to Lease with Carnival PLC to develop their new 150,000 sq. ft. UK headquarters
building and then, early in 2007, we secured detailed planning consent for
this project, the first of what we hope will be a two phase mixed-use scheme
adjacent to the existing West Quay Shopping Centre. Finally, in March 2007,
we exchanged contracts with Lime Property Fund LP to fund the site and development
of the building. Practical completion of the first phase is estimated for
2009. If our current negotiations are successful, the second phase of this
urban regeneration project is expected to provide a further 50,000 sq. ft.
of office, 75,000 sq. ft. of residential or hotel use and 5,000 sq. ft.
of retail accommodation together with a 20,000 sq. ft. casino.
Broughton
In the first half of 2006, Flintshire County Council approved the resolution
to grant planning consent for both the 170,800 sq. ft. extension to the
existing Broughton Retail Park and the related highway link from the A55.
Whilst realisation of any profit potential from this phase will ultimately
await the conclusion of discussions with British Land PLC, we did move ahead
in November 2006 by acquiring not only the land necessary to construct the
interchange that will provide enhanced access to the expanded retail facilities,
but also the 10 acres of land required to construct a reservation for the
existing, protected local population of greater crested newts.
In October 2006, Flintshire County Council ratified in their emerging Unitary
Development Plan (UDP) the status of our 19-acre site as allocated for residential
purposes. The number of units that the Council considered could be accommodated
on the land was increased by 35 to 260 dwellings, in line with our earlier
planning application. At the same meeting in October, the Local Authority
confirmed within the emerging UDP, that a further two acres of our land
has been designated for non-retail commercial use. The emerging UDP is expected
to be ratified within the next 15 months.
Heart of Slough
During 2006, English Partnerships gained approval for a £17 million
gross infrastructure investment to enable the Heart of Slough regeneration
scheme. We are now preparing the outline masterplan alongside our joint
venture partners, Berkeley Homes, Slough Borough Council and English Partnerships,
with a view to commencing development in 2008, with completion of the first
phase anticipated two years later. In September, we acquired Compair House,
a key strategic site that will permit the permanent relocation of the existing
town centre bus station, thus releasing the existing facility for redevelopment
to provide approximately 300,000 sq. ft. of commercial space adjacent to
the town’s transport hub. We are encouraged by the continued gradual
reduction in the office vacancy rate in Slough and expect still further
strengthening of the local occupational market in the medium term.
Princes Road,
Wells
In early 2006, in joint venture with respected town centre developer Centros
Miller, Development Securities acquired three strategic sites at the edge
of Wells town centre. The sites form part of a wider area identified by
Mendip District Council for a comprehensive, retail-led, mixed-use development
in excess of 100,000 sq. ft. The joint venture has recently signed a Lock
Out Agreement with the Local Authority which is the significant first step
in the preparation of a masterplan for the wider project. We are also working
with the adjoining occupier, Tesco PLC, to incorporate an enlarged food
store into the master plan, to the benefit of all parties.
