2009 review
On target performance in subdued conditions
Despite tough trading conditions, Muse Developments delivered a satisfactory performance in 2009 and achieved an operating profit of £0.7m (2008: £7.8m), on revenue of £32m (2008: £84m).
£520m of new development projects secured
The Urban Regeneration division secured over £520m of long-term development partnerships during 2009. These included a £300m project to regenerate Doncaster town centre, the initial phase creating Doncaster’s first public square, a world-class performance venue and council offices. Future phases include a library and art showcase area, leisure facilities, office developments, housing and car parking.
The division also signed a £220m redevelopment agreement with Blackpool Council. This includes high quality offices, modern town centre parking facilities and a public transport interchange. The plan also allows for the possibility of replacement law courts, divisional police headquarter buildings, a health centre and a new library.
Muse Developments is currently involved in the master planning, design or construction phases of 24 major schemes.
Residential success returns with a rising market
Construction of three significant residential phases of mixed use schemes was completed during 2009. These projects at Reading, Plymouth and Leeds released 460 units onto the open market, of which 60% were sold by the year end. The tentative recovery in the housing market gives the division increased confidence in future residential development phases.
Innovative approach to regeneration
The Urban Regeneration division has a highly experienced team, which applies an innovative approach to regeneration thereby developing the best possible solutions for its commercial and public sector partners across the UK. A combination of lasting relationships, commercial performance and consistent quality gives it a solid base for future success. The division is always looking for fresh ways to exploit new opportunities even in difficult market conditions.
Outlook
Similar trading landscape in 2010
A recovery in the development market will be driven by a revival in occupier demand. Although conditions are expected to remain subdued for the next 12 months, the division is in a strong position to capitalise on the return to growth that should follow. In the medium-term occupier demand is expected to recover, which will help to increase returns from the capital invested in its high quality development portfolio.
Secured pipeline for 2010 and beyond
The division's future development pipeline at the start of the year stood at £1.4bn (2008: £1.3bn). This pipeline represents the total capital value of the secured development portfolio and will be realised over the next five to ten years. This level of secured workflow gives the division confidence on its outlook for the medium-term.
BelowMuse Developments
Partners
Doncaster Borough Council
Location
Doncaster
Proposed civic offices building at the Waterdale development in Doncaster. The landmark 25 acre scheme will create a new civic and cultural quarter and help regenerate the town centre with facilities including a new performance venue, leisure facilities, new civic buildings and town centre homes. The project will also create high quality public space in the town centre.
BelowMuse Developments
Partner
London Borough of Newham
Location
Canning Town, East London
This is a radical scheme to build a new commercial district, new housing and a refreshed high street near Canary Wharf. The development of 700,000 square feet of mixed use spaces will deliver 651 private and affordable dwellings, along with new retail and leisure amenities and revitalise a local market. The 5.5 acre site is within the Thames Gateway and Olympic areas.
