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Cardiff PropertyAnnouncement

06/09/2014 16:45

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RNS Number : 5334M
Cardiff Property PLC
17 July 2014 
 
THE CARDIFF PROPERTY PLC 
 
INTERIM MANAGEMENT STATEMENT 17 JULY 2014 
 
The company makes the following statement in accordance with DTR 4.3 of the
FCA Handbook. 
 
From 1 May 2014, the date of the announcement of the results for the six
months ending 31 March 2014 to the date of this statement, save as set out in
this statement, no material property transactions have taken place. 
 
As announced on the 13 May the company acquired 12,241 of its ordinary shares
for cancellation. The total consideration including costs was £123,126. 
 
The Market 
 
The UK economy, particularly in the South East, continues to expand and
providing the anticipated rise in interest rates are modest and managed over
the next few years, the Thames Valley commercial and residential property
markets should continue to benefit. 
 
Letting and investment activity in the Thames Valley commercial property
market is improving. The majority of new lettings has centred towards retail
and business units primarily by smaller business enterprises or start-ups,
reflecting the growth areas of the economy. Enquiries for new and existing
office space in the Thames Valley remains quiet although new lettings indicate
a modest recovery. 
 
In Surrey and Berkshire, the group's main area of operation, residential sales
and lettings have remained active. Improved capital value and rental levels
achieved over the last few years have been maintained. 
 
The Commercial Property Portfolio 
 
At the White House, Egham (5 ground floor retail units with offices above),
all retail units and office suites are now occupied on medium term leases. 
 
At the Maidenhead Enterprise Centre, Maidenhead, (6 business units) all units
are occupied on medium term leases. Recent lettings have achieved higher
rental levels although leases continue to incorporate tenant breaks. 
 
At Heritage Court, Egham (4 retail units), all units are occupied on a mix of
medium and short term leases. Ground rents are received from previously sold
apartments on the upper floors. 
 
At The Windsor Business Centre, Windsor (3 business units), all units are
occupied on short term leases with one tenant holding over awaiting
renegotiation of terms. 
 
The company also retains a business unit in Cardiff let on a medium term lease
to The Royal Mail as a Post Office Sorting Centre and a freehold residential
property in Egham currently let on an Assured Shorthold Tenancy Agreement. 
 
The group includes Campmoss Property, our 47.62% joint venture, which retains
property in Worplesdon, Bracknell, Burnham, Woking, Maidenhead and Slough. 
 
At The Priory, Burnham (Business Centre and 3 floors of adjoining offices),
the Business Centre is fully occupied and two floors of office space let on
medium term lease.  Following refurbishment one of the floors remains
available. 
 
At Kiln Lane, Bracknell (14 business units and adjoining office unit), 13
units and the office unit are occupied on a mix of short and medium term
leases. The remaining unit is available on a flexible lease. 
 
At Gowring House, Market Street, Bracknell (3 retail units with 5 upper
floors), all ground floor retail units are occupied on medium term leases with
the first and second floors similarly occupied by a gym and junior fitness
centre. The remaining three upper floors are currently being refurbished to
create 18 residential units comprising 9 two bedroom and 9 one bedroom
apartments. A marketing programme for both sales and letting is now in
progress. The apartments will be offered for sale on long term leases or let
using an Assured Shorthold Tenancy Agreement. 
 
At Market Street, Bracknell (14 retail units) 12 units are occupied on medium
term leases.  Planning permission was recently granted for the demolition of
the remaining two retail units allowing a new development of eight retail
units on ground and first floor.  Works are currently in progress and
pre-letting enquiries have been encouraging. 
 
At Britannia Wharf, Woking (office building on 4 floors), the ground floor is
occupied with the 2nd and 3rd floors currently undergoing refurbishment
following the surrender of an existing lease. The vacant space including the
lower ground floor office area is being marketed and offered on a flexible
short term lease. 
 
At Clivemont House and Highway House, Maidenhead (both vacant sites), previous
planning permissions were granted for a total of 94,000 sq ft new office
space. The commencement of any new speculative office development is not
considered viable given the current uncertain office letting market. As a
result of the improving local residential market and potential attraction of
Crossrail, discussions are taking place with the Local Authority for a
residential development at Clivemont House. 
 
At Worplesdon View, Worplesdon (78 bed care home), the property is let on a 30
year institutional lease with rental increases linked to RPI. Planning
permission for additional living space has been granted and discussions with
the tenant are currently taking place. 
 
At Datchet Meadows, Slough (37 apartments), 25 apartments are sold on long
leases, 5 let on Assured Shorthold Tenancy Agreements and 7 are under offer
for sale on long leases. The level of demand for these units has remained high
throughout the year. 
 
Outlook 
 
A number of new Thames Valley based commercial and residential property
opportunities have been actively pursued but keen competition has ruled out
any new acquisitions. Suitable opportunities will continue to be appraised. 
 
A number of new office and business unit lettings have recently been completed
and early indications of interest in the group's retail and residential
schemes at Bracknell are positive. 
 
Financial 
 
There have been no significant changes in the financial position of the
company since the publication of the results for six months ending 31 March
2014. Campmoss, our joint venture, has reduced indebtedness following the
further sales at Datchet as mentioned above. 
 
The group has adequate resources to complete the proposed and current
development programme. 
 
Dividend 
 
The interim dividend of 3.3p per share in respect of the half year ending 31
March 2014 was paid to shareholders on 4 July 2014. 
 
J Richard Wollenberg 
 
Chairman 
 
For further information: 
 
The Cardiff Property plc                      Richard Wollenberg              
 01784 437444 
 
Westhouse Securities                         Richard Johnson                  
   0207 601 6100 
 
This information is provided by RNS
The company news service from the London Stock Exchange