Regeneration specialist buoyed up by major development projects in Yorkshire
Urban regenerator and property development company, Muse Developments, which has offices in Leeds, has contributed to year end results released by parent company Morgan Sindall Group, the listed construction and regeneration group.
Morgan Sindall Group delivered strong profit growth in 2019, with adjusted operating profit up 11% to £90.4m on revenue of £3,071m, up 3%.
In addition, the Group’s balance sheet remains strong, with average daily net cash in the year increasing to £109m and year end net cash of £193m.
Muse had a year of continuing to deliver new schemes through partnerships across the UK. The company currently has 17 projects on site, with a gross development value of £750m, and is expecting to begin construction on a further 18 projects in 2020.
The company’s order book and forward development pipeline now stands at £2.3bn, including three major new projects secured in Rotherham, the Wirral and Slough of which Muse’s share totals a gross development value of £400m.
Muse was also selected as preferred developer for a Grade A office development at City Park in Bradford.
More than 1,000 new homes are currently under construction within Muse’s portfolio, across a variety of tenures including private sale, build to rent and affordable.
Matt Crompton, managing director at Muse, said: “2019 was another strong year for Muse, with performance in line with expectations and significant progress on many of our key regeneration schemes across the UK.
“We continue to collaborate with our partners to create innovative new places, bringing together the best of the public and private sector to deliver real transformational change and maximise social impact.
“One of our key focus areas going forward is working closely with local authorities to help them ‘re-imagine’ their high streets by looking at alternative, complementary, sustainable uses for town centres. We already have a strong track record of creating vibrant new places, specifically designed to serve their local communities.”
Some of Muse’s key developments in Yorkshire include: Flagship industrial and distribution development, Logic Leeds, where a multi-million pound fitout is soon to complete on electronics giant Premier Farnell’s 362,000 sq ft distribution hub, which is the largest ever pre-let warehouse development in Leeds.
The building was bought by Aberdeen Standard Investments (ASI) for more than £39m. ASI also forward funded an additional 361,000 sq ft unit, following a pre-let to a high-profile global retailer. Muse has recently sold two further units, totalling 56,000 sq ft, with construction due to complete in autumn this year.
At Forge Island in, Rotherham, the re-purposing of this key area moved a step closer, with Muse and Rotherham Borough Council finalising legal agreements to deliver the landmark new mixed-use destination.
The proposed scheme includes a cinema, food and drink outlets, a hotel, and a car park, with the new leisure facilities set within an attractive public space and a new pedestrian bridge connecting to the wider town centre. A planning application will be submitted later this year, with construction commencing in 2021.
In Bradford, Muse was recently selected by Bradford Council to deliver an office development at the award-winning City Park.
The innovative, BREEAM ‘Excellent’ rated 56,403 sq ft Grade A office building, together with complementary public realm, will be located close to Centenary Square. Muse and the council will work together throughout 2020 to evolve the design of the building and progress a planning application.