Spinningfields developer says sales point to recovery
ARROW Property investments, the parent company of Spinningfields’ developer Allied London, declared a pre-tax loss of £18.5m on turnover of £14.3m in 2009, but said there had been “some recovery in capital values” since its year end.
These allowed the firm to complete the sale of its main asset, the 350,000 sq ft 3 Hardman St building in Manchester in a deal worth £183.5m since the year end as well as selling off four other assets “at a price reflecting their book value of £27m”.
The London-based company, chaired by Allied London chief Mike Ingall, said that it used the proceeds of the sale to European fund manager Aerium to pay off the group’s largest loan facility, which released two other properties from the bank’s security.
Accounts show that at its 2009 year end, the company had net debts of almost £306m (2008: £274.3m). The company’s net asset value also fell to £48.4m (£67.2m).
The company hailed the success of 3 Hardman Street prior to the sale, with a directors’ report accompanying the accounts pointing to a slew of successful lettings agreed last year to the General Medical Council, Brown Shipley, Shoosmiths, PKF Beachcrofts, M&S and WH Smith.
Arrow said that the proceeds of the other four assets sold off since the year end would be used “partly to repay debt and to provide funds for further development and improvement works”.
It also said that it agreed a deal with one of its lenders in October to provide an extra £9m which would also be used to refurbish some of its buildings.
Accounts filed separately for One The Avenue Investments, an Arrow Property company which owned the 41,000 sq ft upmarket retail building anchored by Armani, show that it declared a loss of £1.3m last year prior to trading beginning.
Its liabilities also outweighed its assets by more than £10m as its outstanding debts (including money owed to group companies topped £22m. However, the building was also subsequently sold to Warwick-based IM Properties in September for £18.6m.
