Encouraging outlook for developer, despite pandemic’s impact

Urban regeneration and property development company, Muse Developments, has contributed to half year results released today by listed parent company Morgan Sindall Group.

Morgan Sindall has delivered its results for the half year to 30 June 2020 which were impacted by the COVID-19 pandemic.

Adjusted profit before tax is down 57% to £15.7m and revenue down 4% to £1,363m.

However, the Group says its balance sheet remains strong, with average daily net cash in the period increasing to £153m and period end net cash of £146m.

Morgan Sindall says its secured workload is up 5% to £8bn, so it is confident of future success and growth.

Muse, which has offices in Leeds, Manchester and London, currently has 17 projects on site, with a gross development value of £392m, and is expecting to begin construction on a further 11 projects in the second half of 2020.

Planning consent was achieved on four projects with a total development value of £70m.

The company’s order book and forward development pipeline now stands at £2.3bn. In addition, preferred developer status was secured on three major new projects, including one in Bradford.

Some of Muse’s key developments in Yorkshire include:

• Flagship industrial and distribution development, Logic Leeds – practical completion was reached on a 361,000 sq ft state-of-the-art distribution hub for Amazon, which was forward funded by Aberdeen Standard Investments. Muse is also on site with two further units that were sold in 2019, totalling 56,000 sq ft, with construction due to complete in autumn this year.

• Forge Island in Rotherham – the repurposing of this key area moved a step closer, with Muse receiving unanimous planning approval from Rotherham Borough Council 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.

• In Bradford, Muse was selected by Bradford Council to deliver a new office development at City Park, as part of the council’s wider re-purposing of the city centre. The BREEAM ‘Excellent’ rated 56,403 sq ft Grade A office building, together with complementary public realm, will be located close to Centenary Square. Site investigation works are currently underway, with Muse and the council working together throughout 2020 to evolve the design of the building and progress a planning application.

Matt Crompton, managing director at Muse, said: “Our teams across the business have showed real stoicism and tenacity, working remotely and diligently to minimise the impact of Covid-19, as we progress many of our key regeneration schemes across the UK safely and in line with government guidelines.

“While the half year results have been impacted by the effects of Coronavirus, we remain in a strong position as we continue to collaborate with our partners to create inspiring new places and spaces; bringing together the best of the public and private sector to drive economic and social prosperity at a time when it’s needed most.

“One of our key focus areas going forward is using our experience of creating vibrant new places to work closely with local authorities to help them re-purpose their towns and cities by looking at adaptable, complementary and sustainable places that also maximise social value for local communities.”