Major development plans unveiled for Plymouth harbour
Property firm Sutton Harbour has revealed plans for a major regeneration scheme close to the current harbour.
The Plymouth firm is planning a regeneration to the east of Sutton Harbour including the consented Sugar Quay development.
Following purchases of land in the area the company is exploring further strategic opportunities to acquire land which will see the development of a new urban village with strong links to the harbour, city centre and other local amenities.
Sutton Harbour is also looking at the regeneration of the former airport site and intends to submit a planning application later this year.
A five-year-long protection for aviation operations, expires in March 2024. The company has maintained the site for over 11 years, since closure of the airport, and the proposed plans are expected to show the significant opportunity in the alternative use of the site for healthcare, education, mixed-use housing and commercial space.
The company said in a statement to the stock market it has raised approximately £2.9 m through a direct subscription.
It added that trading in the second half year continued in line with management’s expectations.
The marinas and car parks achieved record revenues for the year ended 31 March 2023.
The construction of the 14-apartment building, Harbour Arch Quay, has progressed well with completion expected by early June.
The company has exchanged contracts on 10 apartments, including the two penthouses.
Exchange of contracts on two further apartments is hoped to take place shortly and the last two apartments are being marketed.
Sutton Harbour is moving its head office to the ground floor of the new building in the summer.
Having proven the market for the size, format and location of these apartments, the company is now working on a similar sized development at Sutton Harbour, targeting a start on site by January 2024.
As expected, the second half year results were undermined by increasing costs, notably increasing interest rates and the high cost of energy.
Whilst the higher interest rates have persisted into the new financial year, the company expects to reduce bank debt from the net proceeds received from the Harbour Arch Quay development.
Energy costs, which for the second half year were running at approximately 3.5 times the cost of the first half year, are now reducing with the outlook for energy costs in the first half of the new financial year expected to be approximately half of the energy costs for the six-month period to 31 March 2023.
Further reductions are expected in the second half of the new financial year.
A recent unaudited independent valuers’ report valued the Sutton Harbour portfolio, excluding development sites, at £55.355m, a £1.185m increase on the 2022 valuation.
The valuation of the owner-occupied assets (marinas, car parks and fisheries) reflects the continued strong trading by both the marinas and car parks operations. Investment property values have held up well and the deficit relates almost entirely to a single property let as office accommodation.
