Muse Developments helps Morgan Sindall Group's results
Urban regeneration and property development company Muse Developments, which has offices in London, Manchester, Glasgow and Leeds, has contributed to preliminary results for the year ended 31 December 2016 released on 23 February 2017 by parent company Morgan Sindall Group plc, the construction and regeneration group.
The Group’s adjusted operating profit was up 26 per cent to £48.8 million (FY 2015: £38.8 million) on revenues of £2,562 million which rose 7 per cent on the previous year (FY 2015: £2,385 million). The reported operating profit for the year was £47.4 million (FY 2015: £10.3 million loss). The Group finished the year with a significantly improved net cash position of £209 million (FY 2015: £58 million). Adjusted earnings per share were up 34 per cent on last year at 84.7p (FY 2015: 63.0p). The dividend for the year is 35.0p, a 21% increase from 2015’s 29.0p per share. The Group’s order book was also up 29% to £3.6 billion.
Muse performed well in 2016 with £380 million of construction across 19 projects. The company also maintained a healthy order book and development pipeline, which now stands at £2.4 billion.
“2016 was another successful year of working closely with our partners to create vibrant, sustainable and attractive new places for the benefit of communities and occupiers,” says Matt Crompton, joint managing director of Muse. “We’ve continued work on a wide range of developments across the UK, with projects totalling a construction value of £380 million currently on site.
“Across the variety of sectors we operate in, there remains opportunities and challenges and we’ll continue to identify innovative methods of funding to unlock complex regeneration schemes.
“Last year’s achievements include planning consents secured on 12 projects with a development value of £550 million; Muse selected as preferred developer on four new projects and shortlisted on a further three. The future continues to look positive, with our forward development pipeline maintained at £2.4 billion.”
Key projects for Muse Developments in 2016 included:
• Lewisham: Construction of the first two residential buildings and major infrastructure improvements at Lewisham Gateway in South East London was completed and all 193 apartments have been sold or reserved. Works started on two further 22- and 15-storey buildings in the second phase of the scheme which will provide 169 new homes with ground floor retail space and restaurants. Muse is delivering the £375 million scheme in partnership with the Mayor of London, the London Borough of Lewisham, Transport for London and the Homes and Communities Agency.
• Canning Town: Lumire, a 216-home development was completed at English Cities Fund’s (ECf) Rathbone Market scheme in Canning Town. This is the final phase of the £180 million regeneration mixed-use development which has created over 650 dwellings, retail accommodation, a community facility and two public spaces including the permanent home of the newly revitalised Rathbone Market. ECf is a joint venture between Muse, Legal & General and the Homes and Communities Agency.
• Brixton: Works commenced in April on the £160 million Your New Town Hall regeneration project which will create a new 120,000 sq ft civic office and customer service centre, and a refurbished Grade II-listed town hall. Phase 1 is being built by Morgan Sindall Construction & Infrastructure. Muse is working in partnership with Lambeth Council to deliver the scheme which includes the provision of 194 new homes, including 78 affordable homes, in Brixton town centre. The Council’s new accommodation is due for completion in spring 2018 and is part of a drive to transform civic facilities and buildings in Brixton and reduce Lambeth’s core office buildings from 14 to two, saving significant annual operational costs.
• Swindon: In Swindon town centre, construction continued on a £10 million, 27,000 sq ft health centre, pre-let to the NHS, at the Kimmerfields development. The health centre is due to open in spring 2017 and will provide a high-quality environment for a wide range of care services. Forward funded by Primary Health Properties, it will sit alongside the 850-space multi-storey car park and assisted living residential building delivered in the first phase. It is expected that two GP practices will serve over 20,000 patients from the new centre and a wide range of commissioned health services will be provided by the three Commissioning Groups of NHS England, the CCG and Swindon Borough Council.
Kimmerfields is a major mixed-use scheme Muse is delivering in partnership with Swindon Borough Council and the Homes and Communities Agency. It will ultimately provide a public square and a series of new streets surrounded by retail and leisure space, a hotel, a new bus interchange, office space and new homes, delivered over several phases.
• Plymouth: Plans have progressed for a further phase of residential development at Millbay. The development achieved planning approval in 2016 and will feature a mix of 137 houses and apartments with associated parking. Construction is due to start during summer 2017. The scheme which is being delivered by English Cities Fund - a joint venture between Muse, Legal & General and the Homes and Communities Agency - is transforming a 15-acre harbourside area into a vibrant new waterfront community focused around Plymouth’s historic docks. 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.
• Bristol: At Wapping Wharf, Muse has started enabling works on a second phase of housing development which will create 248 homes with 113 for open market sale and 135 homes sold on to a private rented sector housing provider. Muse is working in a joint venture with landowner Umberslade on this major waterfront regeneration which is a key piece of Bristol city 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 Home Builders Fund funding programme and will provide a mix of affordable, private rent and open market housing.
• Hucknall: As Rolls-Royce’s development partner, Muse is transforming the 150-acre former factory site into a commercial and residential development which when completed, will provide 900,000 sq ft of employment space and 900 new homes. Construction is progressing well on the scheme which last year saw the launch of Harrier Park, a new 70-acre manufacturing and logistics park, adjacent to Rolls-Royce’s Hucknall manufacturing plant, which is expected to create around 2,000 new local jobs.
Work has also started on the development’s next phase of road infrastructure which will provide a route directly into the business park from the Hucknall bypass. Housebuilders Persimmon Homes and Harron Homes are delivering the first residential phases of the scheme which are well underway.
• Manchester: Muse, in partnership with Network Rail, secured planning for its New Victoria scheme, a £185 million mixed-use development next to Victoria Station in Corporation Street, which is currently a surface level car park. The masterplan includes an eight-storey, 150,000 sq ft office building, with car parking beneath, and 520 one-, two- and three-bedroom apartments in two high-rise buildings. The development will be delivered alongside high-quality public space, landscaping and on-site car parking.
• Warrington: Work commenced on the £107 million Time Square development, previously known as Bridge Street Quarter, in Warrington town centre. Cineworld will be the principal tenant of the 300,000 sq ft retail and leisure-led scheme which will provide Warrington with a state-of-the-art, 13-screen, 2,500 seat, multiplex cinema. The project will also see the development of a 42,000 sq ft market hall, family friendly restaurants, new council offices, retail units and a new public square. Planning permission was also granted for a multi-storey car park which is under construction along with new highway works.
• Salford: At New Bailey, ECf (a joint venture between Muse, L&G and the Homes and Communities Agency) completed One New Bailey, a 125,000 sq ft office development and gained planning permission for a second Grade A office building – Two New Bailey. Two private rented (PRS) sector buildings are also under construction providing 135 and 90 new homes respectively. Construction is close to completion at Timekeepers Square, a development of 36 new town houses just off Chapel Street. Works have also started on ECf’s nearby 22-townhouse Carpino Place development.
• Stockport: The second phase of Stockport town centre’s £145 million new gateway development, Stockport Exchange, was completed. Muse is delivering the scheme next to the train station with Stockport Council. The phase includes a 115-bed Holiday Inn Express and a 50,000 sq ft, five-storey office development with a Sainsbury’s Local on the ground floor, and a new public area and road improvements. 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 Stockport.
Yorkshire & North East
• South Shields: The first phase of South Shields 365, a £100 million regeneration scheme in the town centre was completed in 2016 with the delivery of a new library and digital media centre called The [Home of the Written] Word. Improvement works to the Market Place were also completed. Construction of a new transport interchange, which forms part of the next phase, is expected to begin in 2018. The South Shields 365 plan proposes a radical town centre redevelopment with a new retail quarter in the Barrington St/King St area. The scheme will create 140,000 sq ft of retail and leisure facilities.
• Stockton-on-Tees: Construction progressed well at the ‘Vivo’ residential development in Northshore, with the completion last year of a second phase of 76 two-, three- and four-bedroom new family homes by Muse’s joint venture with sister company Lovell. A third phase of 82 new homes is due to start later this year. Stockton Borough Council also approved funding for a new 125 bed hotel for Hampton by Hilton and a planning application has been submitted. 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.
• Aberdeen: Construction on the Marischal Square development progressed well during 2016 with contractors Morgan Sindall Construction & Infrastructure completing the structural work on the scheme which was marked by a topping out ceremony in November. Due for completion in July this year, the development already has leading businesses signed-up to take premises including Marriot International, All Bar One, Mackie’s and Prezzo. When completed, Marischal Square will include 14,500 sq ft of civic space in front of 16th century Provost Skene's House, two office buildings providing 175,000 sq ft of BREEAM excellent Grade A office space with secure parking, seven restaurants and café bars occupying the ground floor space, and a 126-bed Residence Inn by Marriott.