DevSecs see progress in Hammersmith, Shepherds Bush

hammersmith groveDevelopment Securities have released their preliminary results, which discuss positive progress on West London schemes.

At Hammersmith Grove (pictured) they are hoping for a determination of their  planning application for the NCP car park site in March 2011. The Hammersmith site accommodates 275,000 sq. ft. net of prime offices in two buildings with the first phase comprising 105,000 sq. ft. net. They say they “intend to build this speculatively on a forward-funded
basis.”

In Shepherds Bush, where they are in a joint venture with Orion Land & Leisure Limited to fund the planning and land acquisition costs to facilitate a 300,000 sq. ft. mixed-use residential and
retail redevelopment of Shepherds Bush Market, they report further progress. “We have been selected as preferred developer by the London Borough of Hammersmith and Fulham and entered into option agreements with the key landowners”, says the results statement. They are preparing to submit a planning application in the second quarter of 2011.

Development Securities announced a profit before tax of £2.6 million for the year ended 31st December 2010 compared to a loss before tax of £11.4 million for the year ended 31st December 2009. They grew shareholder funds benefited with a £100.2 million issue of new equity in July 2010 (the second equity raising in 12 months following a Firm Placing, Placing and Open Offer of £100.0 million in June 2009) which increased net assets for the 2010 year end to £333.1 million from £244.0 million at the end of the previous year.

The results statement says the Group has “made excellent progress in investing the proceeds from its two recent equity raisings”, with acquisitions totalling £233.6 million since July 2009 into a range of investment properties and development opportunities.

Total returns from the investment property portfolio of 15.2 per cent equalled the IPD UK Quarterly Property Index for 2010, which DevSecs says is a “strong performance given that our portfolio has no representation in Central London markets”. The comparable return from the Index for property outside Central London was 10.1 per cent.

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