North West Square | U + I hunt for Mayfield funding continues
Work has started to clean up the site and create the new park in Mayfield. v. Mark Waugh
The developer is still on the lookout for lenders to support the offices and parking for the first phase of the Great Manchester project, the developer said in updating the stock market on the ‘Roots and Branches Review’ of the ‘business.
U + I shares fell 5% on Wednesday morning as they reported a pre-tax loss of £ 86.7million in April, down from a loss of £ 58.6million the year before. The net asset value of its portfolio fell 30% to £ 202million. A series of divestitures reduced debt to £ 72.1m, a debt level of 35.5%, from 44.9%, against a target of 25-35% by year-end 2022.
U + I started an internal upheaval in January when it produced a £ 50million loss for the semester and saw CEO Matthew Weiner leave.
Richard Upton has gone from deputy to CEO. He called today’s results “extremely disappointing” as he reflected on “clinical decisions” that had resulted in “new transactions and write-downs of assets”, largely related to projects in Dublin. , Norwich, Slough and Bromley.
In Manchester, U + I is focused on “securing patient capital funding arrangements” for the delivery of the remainder of the first phase, 320,000 square feet of office space spread over two blocks, and an 11-storey car park. U + I have already said that they will start on site with these buildings this year.
There is £ 24.9million of work underway at Mayfield to create the public park funded by a £ 23million government grant, with £ 2million future capital required, U + said I.
Mayfield’s gross development value for all phases is £ 1.5bn and gross profit margin is £ 400m.
The program is implemented by the Mayfield Partnership, a public-private company comprising the U + I regeneration specialist, Manchester City Council, Transport for Greater Manchester and developer LCR.
Overall, Mayfield is poised to transform a previously abandoned part of Manchester’s industrial heritage to deliver 1,500 homes, 1.6m2 of office space, 300,000 square feet of retail and leisure, and 11 acres of new public realm. The park is slated to open to visitors in September 2022.
During the period, U + I sold an apartment and leisure property called Vicus in Liverpool Road Manchester as part of a fundraising and debt reduction plan. The company also sold the Chill Factore ski slope next to the Trafford Center, generating a gain of £ 1.1million for its joint venture owned vehicle.
The Mayfield project team includes Bennetts Associates, Morris & Company, Faithful + Gould, Stace, RoC, WSP, Buro Happold, Studio Egret West, Civic Engineers, CBRE, PP O’Connor.
Upton added, “We have refined our business to focus on what we do best – creating thoughtful and inclusive regeneration that delivers significant socio-economic benefits. We just intend to do more of that where we can demonstrably deliver exceptional total returns. The distinction of the company, the breadth of our core regeneration pipeline and the planned divestitures of non-strategic projects present a strong opportunity for significant growth in shareholder value in the years to come.