Property values hold up for Peel
PEEL Group’s land and property division saw values hold up last year but it recorded a sharp increase in vacant space.
According to newly-filed accounts for Peel Holdings (Land and Property) the Manchester-based group valued its rental estate at £724.6m in the year to the end of March, down just £3.7m.
This portfolio generated annual rent of £66.2m, marginally up on £66m last time, but the amount of vacant space increased by 27% to 891,704 sq ft, from 700,048 sq ft.
In the year to March 31 overall turnover from continuing activities was up 1% to £91.7m, but the business made a pre-tax loss of £20m – up from an £18.2m loss last time – due to the scale of interest payments of £63.15m.
The division has net borrowings of £885m, but payments shrank by around £15m following two refinancings.
The business’s land development arm secured planning consents for Wirral Waters and Liverpool Waters during the year – the largest private-led regeneration projects in the country. And it continued to work on planning for its Atlantic Gateway project, a £50bn strategy for development along the Manchester Ship Canal corridor. It valued its developable assets at £359m, up £3m.
Peel’s land and property arm also owns 27,000 acres and said sales increased significantly to £4m, with agricultural values remaining strong.
In June 2011 Peel agreed a deal with housebuilder Barratt to develop 80 acres across six sites in the North. It is hoping to build 1,000 homes over five years and work has already started on sites in Wigan and South Liverpool which could ultimately produce 450 homes.
