Hudson Quarter

This two acre property was very much the ”jewel in the crown” from the Signal portfolio, acquired in September 2013. The office building was 45 years old and comprised 100,000 sq ft which was predominantly vacant and required significant capital expenditure. We looked at numerous options to maximise shareholder returns.

The property fundamentals are key to why we see this property as being transformational to our Company with significant capital enhancement options. Transport connections are excellent, having a direct non-stop train service to King’s Cross in 1 hour 50 minutes. Plans to regenerate the vast area of vacant railway land known as York Central include the upgrade of the adjacent station. Residential sales values have remained strong and even in the financial crisis of 2009 plateaued rather than fell. The demand for office space is strong and rental values were predicted to grow at the time of purchase.

Between December 2014 and August 2017, we engaged with City of York Council and local interest groups to obtain planning permission for a new build development. The final scheme comprises three blocks totalling 127 high end residential apartments and a Headquarters grade A office building of 35,000 sq ft as well as a further ground floor unit of 4,500 sq ft and associated car parking.

The blocks are all set within landscape gardens close to the historic city wall.

Demolition was completed in December 2018 following which Caddick Construction was appointed contractor for a £33.6m development of the site. This is part funded by a £26.5m debt facility from Barclays with the balance from our cash reserves. Practical completion remains on course for spring 2021.

RESIDENTIAL SALES

As at 30 June 2020, we have exchanged contracts on 32  apartments, while 5 apartments are currently under offer. We continue to see demand for the units and anticipate continued sales during the construction process.

OFFICE LETTINGS

We have sought a single occupier for the Hudson Quarter office property. Interest is strong from a number of tenants, some of whom seek the whole or part of the building. We continue to negotiate with a number of parties and will announce progress in due course. In the meantime, we have pre-let the ground floor of Victoria comprising c.4,500 sq ft to a subsidiary of Knights plc for ten years at £25 psf, which is the highest rent achieved in York.

A UNIQUE OPPORTUNITY IN THE UK’S BEST PLACE TO LIVE AND WORK.

On the historic site of pioneering and world changing events, championed by the formidable ‘Railway King’ George Hudson, Hudson Quarter leads the next exciting phase in the transformation of York.

A prestigious, sustainably built, mixed-use development with planning permission for 127 apartments, 35,000 sq ft of offices, 4,500 sq ft of commercial space and car parking, all within the ancient city walls of one of the finest cities in the world.

Project completion is scheduled for 2021.

No. of apartments:

127

APARTMENTS SOLD AT 31 MARCH 2020:

28

EXPECTED COMPLETION:

Spring 2021

AREA OF OFFICE SPACE:

39,500 sq ft

Sector

Office/Residential

Walk: under 5 mins

1 Network Rail

2 City of York Council

3 Aviva

4 Langleys Solicitors

5 Sainsbury's

6 Micklegate Cafés, Bars and Restaurants

7 National Railway Museum

Walk: under 10 mins

8 Yorkshire Museum

9 Prime Retail

10 All High Street Banks

11 Betty's Tea Room

12 M&S and Market

13 Jorvik Viking Centre

Walk: under 15 mins

14 Clifford's Tower

15 Castle Museum

16 Hiscox

17 York Minster

18 York St John University