Muse helps Morgan Sindall Group's results
Urban regeneration and property development company Muse Developments, has contributed to preliminary results for the year ended 31 December 2015, released today (23 February 2016) by parent company Morgan Sindall Group plc, the construction and regeneration group.
The Group’s adjusted operating profit was up 34 per cent to £38.8 million (2014: £28.9 million) on revenues of £2,385 million which rose 7 per cent on the previous year (2014: £2,220 million). This was driven by 20 per cent revenue growth in Fit Out and in Construction & Infrastructure which was up 5 per cent. The Group’s strategically important mixed-tenure regeneration housing activities in Affordable Housing, also saw a 29 per cent revenue increase. The reported operating loss for the year was £10.3 million (2014: £26.5 million profit) after taking account of exceptional operating items relating to two old construction contracts taken over on the acquisition of Amec in 2007. The Group finished the year with a net cash position of £58 million (2014: £56 million). Adjusted earnings per share were up 35 per cent on last year at 63.0p (2014: 46.7p). The dividend for the year is 29.0p, up from 2014’s 27.0p per share.
During 2015, the national developer and regeneration specialist - which has offices in London, Manchester, Glasgow and Leeds - moved forward on 24 projects with a total construction value of £422 million. The company also maintained a healthy order book and development pipeline, which now stands at £2.2 billion.
Key development activities for Muse in 2015 included:
Lewisham: Construction progressed on the first phase of development at Lewisham Gateway, which will deliver 193 apartments in two buildings of 25 and 15 storeys with ground floor retail and leisure space. This phase of the scheme is due for completion this year. Work also started on the the second phase which will provide a further 169 new homes. Muse is delivering the four phase £230 million scheme in partnership with the Mayor of London, the London Borough of Lewisham, Transport for London Bus Services and the Homes and Communities Agency.
Canning Town: The first two phases of English Cities Fund’s Rathbone Market scheme in Canning Town have been completed and construction of the third phase, which will create an additional 216 new homes, is well advanced. English Cities Fund is a joint venture between Muse, Legal & General and the Homes and Communities Agency.
Brentford: Construction of the first phase of apartments at Brentford Lock West has been largely completed and the second phase which will deliver a further 156 homes, will commence in 2016. Muse is delivering the development in partnership with the Canal and River Trust. The new waterside neighbourhood will create up to 520 townhouses and apartments.
Brixton: Planning permission for the Your New Town Hall project was secured in September by Muse which is working in partnership with Lambeth Council to deliver the scheme. The development will provide a new 125,000 sq ft civic office building and a refurbished Grade II-listed town hall, both for Lambeth Council, alongside 194 new homes in Brixton town centre. The project will rationalise the council’s estate and make substantial annual operational cost savings.
Basingstoke: Construction of a 110,000 sq ft combined Waitrose and John Lewis at Home store was completed at Basing View in November, forming the first phase of a commercially-led scheme which will ultimately deliver 650,000 sq ft of new development. The £200 million Basing View scheme is being delivered with Basingstoke and Deane Borough Council.
Reading: Construction of the £35 million second and final phase of the highly successful Chatham Place development has been completed, delivering a further 184 apartments in two buildings of nine and 19 storeys with ground floor retail space.
Plymouth: The key development activity for Muse in Plymouth in 2015 was completion of the 102-home Quadrant Quay development, which is the third residential phase of English Cities Fund’s £160 million Millbay regeneration. All 92 private homes in the Quadrant Quay development have been sold. The overall Millbay regeneration project includes 600 dwellings, business and retail space and the creation of a leisure and cultural destination at the heart of Millbay. A planning application has been submitted for the next residential phase of 136 dwellings on Quadrant Quay. Millbay is transforming a 15-acre harbourside area into a vibrant new waterfront community focussed around Plymouth’s historic docks.
Bristol: Construction of the £42 million first phase of 194 apartments and 8,650 sq ft of retail and leisure space at Wapping Wharf in Bristol neared completion with the majority of private dwellings now sold. Muse is working in a joint venture with landowner Umberslade on this major waterfront regeneration which is a key piece of Bristol centre’s landscape and the last remaining large-scale redevelopment opportunity in the Harbourside Regeneration and City Docks Conservation Areas. It has been backed by the Homes and Communities Agency’s Get Britain Building funding programme and will provide a mix of affordable, private rent and open market housing.
Swindon: An agreement was exchanged between Muse and Primary Health Properties at the Kimmerfields scheme in Swindon to develop a new health centre, pre-let to the NHS, which will sit alongside the multi-storey car park and assisted living residential building delivered in the first phase.
Hucknall: In Nottinghamshire, Muse continued to make progress on the construction of the £250 million mixed-use Rolls-Royce Hucknall development at Watnall Road which is being built on the former 150-acre Rolls-Royce site in Nottinghamshire. This included the completion of a £5 million infrastructure works project which has opened up the residential element of the scheme, facilitating the sale of two parcels of land totalling 19 acres to Persimmon Homes and Harron Homes, which are under construction. Muse is Rolls-Royce plc’s development partner for the mixed-use scheme which will provide 900,000 sq ft of employment space and 900 new homes.
Manchester: Progress was made on the restoration of the Grade II-listed landmark ‘Mackie Mayor’ building on Swan Street, which has laid derelict since the early 1990s, . This is the seventh and final phase of Muse’s Smithfield regeneration scheme in Manchester’s Northern Quarter. The building is expected to be of interest to a range of potential occupiers for leisure, retail or commercial use. Over the past 13 years, the Smithfield regeneration has created more than 350 apartments, two hotels and over 30,000 sq ft of ground floor space. Muse will shortly be submitting an application for the New Victoria scheme in Manchester, where it is planning to develop two residential buildings and an office building adjacent to Victoria Station.
Salford: English Cities Fund – a joint venture between Muse, Legal & General and the Homes and Communities Agency - secured planning consent for a further Private Rented Sector (PRS) scheme at New Bailey, in Salford where 90 PRS homes are currently under construction. The new scheme, is part of Salford Central, a 44-acre, £650 million regeneration of Salford’s civic and historic centre. Construction of One New Bailey, a 125,000 sq ft office development, will be completed in May this year. The second residential phase comprising a development of 36 new town houses is also under construction at Timekeepers Square, off Chapel Street.
Warrington: Muse Developments in partnership with Warrington Borough Council and Warrington & Co, secured a deal with cinema operator Cineworld to anchor a new leisure development in the centre of Warrington, as part of the Bridge Street Quarter regeneration scheme. Cineworld will be the principal tenant of the 300,000 sq ft retail and leisure-led development which will provide Warrington with a state-of-the-art, 13-screen, 2,500 seat, multiplex cinema. When complete, the £107 million scheme will also provide a new 42,000 sq ft market hall, family restaurants, a new 1,100 space multi-storey car park, new council offices, retail units and a new public square.
Stockport: Construction started on the second phase of Stockport town centre’s £145 million new gateway development, Stockport Exchange which Muse is delivering with Stockport Council. The phase will include a 115-bed Holiday Inn Express, a 50,000 sq ft, five-storey office building with ground floor retail space and a new public area outside Stockport train station. Part of the Council’s Investing in Stockport programme, Stockport Exchange is a flagship office development for the town that will see a new commercial district and commuter hub created in the heart of the town centre.
Crewe: Muse secured planning consent in December for a mixed-use development, incorporating both residential and commercial development, on a 70-acre site at Basford East in Crewe.
Chester: In December, Muse completed One City Place, a six-storey office development next to Chester Railway Station forming part of the new £100 million Central Business Quarter. The 70,000 sq ft of office space has been developed speculatively and represents the first of seven proposed office buildings which will provide state-of-the-art business space in the city centre and accommodate an estimated 3,500 jobs by 2028.
Yorkshire & North East
Leeds: Muse completed construction of the first 80,000 sq ft industrial shed at Logic Leeds, a 110-acre manufacturing and distribution park within the Aire Valley regeneration area. Construction also progressed on a 50,500 sq ft distribution warehouse for John Lewis which is due for completion this spring. Logic Leeds is the first ‘big shed’ industrial park to be developed in Leeds for some time. The scheme which is adjacent to J45 of the M1, will offer 1.4 million sq ft of development space, providing industrial units from 20,000 sq ft upwards.
In Doncaster, Muse completed the first phase of The Gables, a £4.6 million development of 54-energy-efficient one-, two- and three-bedroom homes in the town centre. Over 75% of the new homes, which have been built by Morgan Sindall Group’s specialist housing provider Lovell, have been sold and a second phase is planned. The Gables is part of the £300 million regeneration of Doncaster Civic and Cultural Quarter which Muse is delivering as Doncaster Metropolitan Borough Council’s development partner. Planning approval was also secured for a state-of-the-art six screen Savoy cinema and family restaurants at the scheme. The Residence Lakeside, Muse’s new £5.6 million development of 51 two-, three- and four-bedroom houses, also launched in June 2015. Built by Morgan Sindall Group’s specialist housing provider Lovell, the homes are selling well.
South Shields: Construction started on the first phase of South Shields 365, Muse’s £100 million regeneration scheme in the town centre. Planning permission for a new transport interchange, which forms part of the next phase, was also secured in November. The first phase will include a new library and digital media centre called The Word, a 40-space car park and improvements to the adjoining Market Place. The South Shields 365 plan proposes a radical town centre redevelopment with a new retail quarter in the Fowler Street West area. The scheme will create 175,000 sq ft of retail and leisure facilities including a food store and a hotel.
Stockton-on-Tees: At the Northshore development in Stockton-on-Tees, Muse completed a 43,000 sq ft head office building for the housing specialists, Thirteen Group, and Northshore Fusion Hive, a 36,000 sq ft business and innovation centre, developed in partnership with Teesside University, which aims to drive digital industry growth across the Tees Valley. Work also continued on ‘Vivo’, a residential scheme of 76 two-, three- and four-bedroom family homes which Lovell, Morgan Sindall Group’s affordable housing specialist is building. Northshore is a 56-acre, £300 million mixed-use development which Muse is delivering in partnership with the Homes and Communities Agency, working closely with Stockton Borough Council.
Construction of the £107 million mixed-use Marischal Square development in Aberdeen, being built by Morgan Sindall Construction & Infrastructure, will be completed in July 2017. The scheme comprises 175,000 sq ft of BREEAM excellent office space, seven bar and restaurant units and a 126-bed Residence Inn by Marriott hotel. Extensive new public realm will complement the listed Provost Skene’s House and Marischal College, the largest granite building in Europe.
Conwy: Muse has been appointed as Conwy Council's preferred development partner for a scheme which will provide new civic offices in Colwyn Bay town centre and the redevelopment of an existing Grade II-listed building.
Nigel Franklin, joint managing director at Muse Developments, said: “2015 has been a year of growth for Muse and we’re proud of our positive contribution to our parent company’s results. We’ve continued to work in close partnership, particularly with the public sector, to deliver high-quality, sustainable and pioneering mixed-use regeneration schemes, spanning across sectors and throughout the UK.
“Areas of growth include the number and value of projects on site, a record for the company and a 51% increase on the previous year. We’ve also secured 10 major planning consents, more than doubled residential sales, been selected as preferred developer on six new projects and increased our workforce by 10%. “We’re confident that our healthy development pipeline and favourable market conditions will allow us to continue this success into 2016.”