Newport Holdings Plc - Mixed-Use Development - Swansea, Salubrious Place

Date: 20 Feb 2003

Newport Holdings Plc (“Newport”) announces that it has acquired a 51% interest from Christowe Holdings Limited (“Christowe”) in Brunswick Swansea Limited (“Brunswick Swansea”) with a capital injection of £330,000 and support to the funding facility. A £1million loan note has been granted to Christowe redeemable five years after practical completion of the development, representing part of the increased value in the investment on practical completion. Brunswick Swansea owns the entire share capital of Brunswick Mansford Ltd (“Brunswick Mansford”) which in turn holds a 200 year lease from The City of Swansea Council on a development site known as Salubrious Place, Wind Street, Swansea.

This will be a mixed leisure complex being constructed in two phases. Salubrious Place is situated at the edge of Swansea City Centre, in the designated “café quarter” area centred around Wind Street, where Newport has an existing building let to Inventive plc and the Family Housing Association.

This area has been successful in attracting national leisure operators and the Salubrious Place scheme is immediately adjacent to the main office and retail area of the City and has prominence to the main coastal road. The site is within walking distance of Swansea Marina, The Maritime Museum and Leisure Centre.

The development of Phase one will commence construction, in March 2003, and will cost some £11m, and comprises:

• A 116 bedroom Hotel - agreement to lease signed with Scottish & Newcastle for 35 years. With initial rent of £220,400 per annum

• A 253 space car park - agreement to lease signed with National Car Parks Ltd for 25
years with initial rent of £131,500 per annum

• A 11,840 sq ft restaurant - agreement to lease signed with Bakersfield Entertainment Ltd
trading as Mood for 25 years with initial rent of £132,000 per
annum

• A 10,000sq ft restaurant - agreement to lease a first floor restaurant area for 25 years
with initial rent of £60,000 per annum

With these anchor tenancies in place the scheme is effectively 50% let. DTZ Debenham Tie Leung and E J Hales are the joint letting agents. On completion and letting the first phase will produce an initial estimated income in the region of £1million per annum. The development has an anticipated 20 month build programme and Opco Limited have been appointed as main contractors, with the Bank of Scotland funding the development.

Bob Carlton-Porter, Executive Chairman of Newport commented “This is a major key scheme in the development of Swansea City Centre and we are now in a position to share in the development profits as well as securing a well covenanted new investment. This development will be instrumental in creating new jobs for the City and we will be pleased to be associated with that objective.

“Newport will be managing the contract and its finances. This major scheme represents a continuance of the company’s policy of seeking to secure premier investments with excellent quality tenants, but now with the attraction of additional profit potential.”

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