Conygar ‘in discussions’ over 250,000 sq ft Island Quarter office space
Conygar, the developer behind the huge Island Quarter redevelopment scheme in Nottingham, is set to raise over £10m through a share placing.
The company will issue 6.7 million shares at 150p each to help bring forward a new substation to the site and fund the equity component of the student scheme and potentially progress the design and planning for an office scheme.
Conygar says it is in discussions with a number of businesses for office space totalling 250,000 sq ft at the Island Quarter site. If the negotiations progress, says the firm, some of the cash raised will go towards funding the design and planning for the office space.
A statement from the company said: “Numerous discussions have occurred, several of which are ongoing and some of which have just commenced, involving potential investors, potential partners and potential occupiers for all or different parts of the development. At present, none of these discussions have reached an advanced stage.”
Conygar has reported “steady progress” on The Island Quarter. The construction of the first phase, which includes the £6m Cabal Turn food-led scheme, has continued and is still on track to be completed in late spring 2022. Following the granting of the permission for the student accommodation element of the site, the company has focused on finalising the Section 106 Agreement and liaising with contractors to ensure a start on site in 2022.
Robert Ware, CEO of Conygar, said: “The placing we are announcing today is to fund part of the next phase of the exciting 36 acre Island Quarter site in Nottingham.
“There are a number of potential uses for the proceeds, including bringing a new electricity substation to the site, funding the equity component of the student accommodation scheme and potentially progressing the design and planning for an office scheme. Significant progress has already been made on The Island Quarter, with planning permission granted for over two million square feet to include new homes, grade A office space, a creative market, a lifestyle hotel, retail units, student accommodation and associated public realm.”