Interim Management Statement

RNS Number : 0828B

Cardiff Property PLC

11 August 2008

 



THE CARDIFF PROPERTY PUBLIC LIMITED COMPANY ('the Company')

INTERIM MANAGEMENT STATEMENT

11 August 2008

The Company makes the following statement under the Financial Services Authority Disclosure and Transparency Rules, Section 4.3 - Interim Management Statements.

From 30 April 2008, the date of the announcement of the results for the half year ending 31 March 2008, to the date of this Statement, no material commercial property transactions have taken place.

During the period the Company, as announced on 8 May 2008, 19 June 2008 and 4 August 2008, purchased a total of 20,673 ordinary shares for cancellation. The total consideration, including costs, was £ 136,436 which will be charged directly to retained earnings.

In the Thames Valley a number of major lettings for new high grade office buildings have been reported indicating that rental levels remain unchanged. Local Agents report that numerous enquiries have been received from companies looking to upgrade their office space during the next few years but in the current climate final decisions are being deferred. 

The majority of new office development schemes in the Thames Valley have been placed on hold. The difficulty in securing funding for speculative schemes and the prospect of paying full business rates on empty property whilst securing a letting are strong arguments to defer development whilst awaiting a recovery in the market.

The Group, including Campmoss Property Company Limited, our 47.62% jointly controlled entity, continues to actively manage its property portfolio as well as pursuing new and revised planning permissions and applications, as referred to in the chairman's statement accompanying the last annual and half yearly results. No major office development schemes are expected to be commenced ahead of either a full or partial pre-letting being achieved.

Demolition of Clivemont House, Maidenhead and minor ground works have been completed. Agents have been appointed for the proposed new 50,000 sq ft office building which will offer flexible high grade office space capable of occupation by either a single entity or on a floor by floor basis.

At Highway House, Maidenhead planning permission for a new 46,000 sq ft high grade office scheme was granted last year and access works in connection with that permission are anticipated to commence shortly. Agents have also been appointed to seek a forward letting.

At Datchet Meadows located between Datchet and Slough, the development of 35 apartments is expected to complete during the next few months. A show flat is now available on site and a number of reservations for both sales and letting are being negotiated. Datchet Meadows is a secure gated development standing within its own landscaped grounds. In line with the rest of the market, sales are expected to be slow and a number of apartments when completed will be let over the medium term.

Uncertainty in the financial markets continues to affect confidence in the commercial and residential property market and, as expected, values continue to fall. As announced at the half year the Group expects to show a reduction in the value of its investment portfolio in line with the market. The results for the year ending 30 September 2008 are expected to be announced at the end of November 2008.  

The interim dividend of 3.3 pence per shares in respect of the six months ended 31 March 2008 was paid to shareholders on 4 July 2008.

The Group, including Campmoss, has adequate resources to complete the current development programme. There have been no significant changes in the financial position of the company since the publication of the results for the half year ending 31 March 2008.  

J Richard Wollenberg

Chairman

 

END

 

 

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