Development Securities’ £400 million Heart of Slough regeneration scheme has suffered a setback after the local authority decided not to proceed with its proposal for a new headquarters due to the economic climate.
The announcement comes just a week after the developer received consent for two offices, one of which was to be the Slough City Council headquarters, and a new bus station.
In an interim management statement, for 1 January to 15 May, Development Securities revealed: “At the Heart of Slough regeneration scheme, the local authority have decided due to current financial conditions not to proceed for the time being with the proposal for their new headquarters building.
“However, last week the local authority resolved to grant outline planning consent for two prime office buildings. The consent fits within the proposed Heart of Slough masterplan, but is capable of independent implementation as and when the occupational market recovers.”
But the company said it was in a strong cash position, benefiting from completion of major developments including West Quay in Southampton.
It said: “Despite increasingly difficult market conditions, the company has positioned itself defensively through prudent management of its balance sheet and maintaining liquidity through its partnership approach to funding its active, large-scale development projects.
“As a result, the company hopes to selectively target opportunities that will arise out of this market turmoil, whilst also having regard to protecting shareholder interests in the short to medium term.”