DevSec finds buyer for Chester resi scheme
PROPERTY group Development Securities has been buoyed by progress at its residential site in Broughton near Chester.
In its half-year results the listed group said the 19-acre site was now under offer to a house builder, “at a price in line with our expectations”.
Following a planning dispute over the land the Welsh minister for environment, sustainability and housing granted planning consent for 280 homes last month.
In the six months to August Development Securities made a pre-tax loss of £700,000 compared to a loss of £1.3m last year. Revenue was higher, up to £56.7m from £19m. It made £11.9m from its development and trading portfolio.
Chairman David Jenkins blamed the loss on the weak economic activity and continued downward pressure on capital returns.
He said: “We remain confident that we will unlock a series of further gains in the next twelve months and in the medium-term through disposals of selected assets. As anticipated, the results of our strategy are coming towards fruition.”
The group has just agreed a 12-month extension to its £47.5m banking facility with with Lloyds for the Manchester Arena, taking maturity to June 2014. Net debt at August 31 was £147.1m, representing gearing of 48.3%.
Marcus Shepherd has been appointed as finance director, replacing Graham Prothero who is joining Galliford Try.
Mr Shepherd joins from Aviva Investors where he has been the finance director for Global Real Estate since January 2009.
