Interim Management Statement

RNS Number : 9489P

Cardiff Property PLC

27 July 2010

 



27 July 2010

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

INTERIM MANAGEMENT STATEMENT

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

From 29 April 2010, the date of the announcement of the results for the half year ending 31 March 2010 to the date of this statement, no material property transactions have taken place.

As announced on 10 May 2010 the Company acquired 236,000 of its own ordinary shares for cancellation.   The total consideration, including costs, was £1,778,997 which will be charged directly to retained earnings.

The Thames Valley Commercial Property market continues to suffer from low levels of occupier demand.   New lettings are being agreed and agents report a reasonable level of enquiries but actual take up of new and second hand commercial space is insufficient to suggest any recovery in demand or rental levels.

New speculative commercial property development in the Thames Valley has virtually ceased. The majority of new office buildings completed over the past 12-18 months remain vacant.

The last quarter of 2009 and first half of 2010 saw some recovery in commercial property capital values.  However, as the likelihood of a sustained recovery in rental growth has diminished, any further increase in capital values is unlikely.   Commercial property continues to have its investment attractions providing adequate security of income is achievable.

Residential values in Surrey and Berkshire have maintained their marginal increase since the beginning of the year.   The number of enquiries and viewings remain at a reasonable level but purchasers and investors still remain cautious.

The group, including Campmoss Property, our 47.62% jointly controlled entity, continues to pursue new and revised planning permissions.  In the current environment, even with planning permission, the group is unlikely to proceed with any new development unless a pre-letting has been secured.   The main emphasis will be towards managing the existing portfolio and maintaining the level of gross rental income.

At Tangley Place, Worplesdon, our proposed 92 bedroom care home scheme, discussions continue with prospective tenants .  

At Highway House, Maidenhead, new access works have now commenced.   Planning permission for a new 45,000 sq ft B1 office scheme was granted in 2008 and our Agents continue to seek either a full or partial letting before any further development takes place.

At Market Street, Bracknell, we continue to await the outcome of discussions with the Local Planning Authority.

At Datchet Meadows, Slough, the majority of apartments have been let on Assured Shorthold Tenancy Agreements.   Two sales are currently in solicitors hands.   Capital values and rental levels are similar to last year.

The Thames Valley commercial and residential property market continues to suffer from a lack of activity.  In the current economic and fiscal climate capital values and rental levels are not expected to improve.

The group, including Campmoss, has adequate resources to carry out projects currently in progress.   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 2010.

The interim dividend of 3.3p per share in respect of the six months ending 31 March 2010 was paid to shareholders on 2 July 2010.

For further information:

The Cardiff Property plc                                               Richard Wollenberg                       01784 437444

Arbuthnot Securities                                                     Richard Johnson                               020 7012 2000

 

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