Empty properties reach 1m sq ft for Peel

THE land and property division of North West giant Peel Holdings has more than 1 million sq ft of space in its rental portfolio standing vacant, latest accounts show.

The volume of empty properties in the company’s portfolio increased 17% on the previous year (2008: 853,000 sq ft), with an estimated rental value of around £5.5m being lost.

More than 50% of the vacant space is industrial, with much of that in the group’s land holdings in Liverpool and Glasgow, it said.

Meanwhile, the group’s development department netted more than £18m from the sale of land at business parks, including Calder Park in Wakefield; Riverside Business Park in Barrowford; and Digital Park, Salford; as well as a 50% shareholding in land at James Watt Dock, Glasgow to the local urban regeneration company.

It also focused on securing planning consents on existing landholdings, particularly in relation to regeneration schemes Wirral Waters and Liverpool Waters and the £50bn Ocean Gateway investment strategy along the ship canal corridor.

One strategic land acquisition it made was of Worsley Garden Centre in Salford, which the company said would be an important addition to the portfolio and compliment is aspirations for Salford Forest Park.

However, the £100m racecourse complex development has buffers since the accounts were signed off, when Peel’s plans were rejected by the secretary of state John Denham earlier this month.

The Salford Forest Park development would have covered almost three hectares and included a hotel, nature reserve and golf course. But Mr Denham’s decision notice said the plans could cause “very substantial harm” to greenbelt land.

During the year Peel Holdings (Land and Property) demerged with Glasgow Habour Limited and Peel Investments (Gloucester).

However, it also re-merged with Peel Holdings (Telecommunications) and Peel Holdings (Environmental), having demerged with them in the previous year, in order to give the individual businesses more focus.

Turnover for the group, including the merged divisions, stood at £83m, down from £102.6m a year earlier. But pre-tax profits before interest payments and other charges were down 37.6% to £48m.

After taking into account the division’s high debt-related charges of £70.7m it made a loss of £22.6m, compared with a £9.6m profit last time.