Holyhead Waterfront scheme devalued due to Covid hit
THE developer behind the Holyhead Waterfront marina scheme says the valuation of the development has slumped £5m.
Conygar Investment Company is behind the £100m development which includes 326 homes, a 500-berth marina, retail, leisure, restaurants, hotel and office space on Newry Beach in Holyhead.
They also own the former Shell depot at Rhosgoch on Anglesey which had been tipped as a support site for the
Wylfa Newydd nuclear plant development.
But last week they reported a slump in the value of the schemes due to Covid and Hitachi pulling out of the Wylfa project.
It saw them post losses before tax for the year of £8.2 million.
They said the continuing effect of Covid – “compounded by the impact of a fast approaching Brexit” – meant the outlook was uncertain.
They said: “The impact of Hitachi announcing their withdrawal from the proposed nuclear development at Wylfa, a lack of alternative investors, the impact of Covid-19 on Wales and the response of the Wales Government plus the undoubted pending recession has meant that we have reassessed the carrying values of Holyhead Waterfront and Rhosgoch, leading to write downs of £5 million and £0.5 million respectively.
“We believe that Wylfa will not happen without significant UK government support, both financial and political, for a credible nuclear operator.”
The Holyhead project is now valued at £5m and Rhosgoch at £2.5m.
On the marina scheme, they added: “At the Holyhead Waterfront scheme in Anglesey, we continue to work on the detailed design and reserved matters application in tandem with the marine consenting process.
“We expect to submit both applications in addition to a harbour revision order in early 2021.”
On Rhosgoch, they said: “Following the decision by Horizon Nuclear Power to terminate their option for our 203 acre site in Rhosgoch, and the subsequent announcement by Hitachi in September 2020 of its withdrawal from the Wylfa nuclear power project, we are now considering alternative uses for the site.
“It is possible that the potential use will be in the renewables sector and we are in early stage discussions with various operators in this regard.”
Robert Ware, chief executive, said: “The outlook is highly uncertain.
“We expect the impact of COVID-19 to significantly affect the progression of and carrying values for our investment and development properties over the coming year.
“While there remains considerable uncertainty as to how the pandemic will play out, compounded by the impact of a fast approaching Brexit, and pressures on market rents from business closures and rising unemployment, it is extremely difficult confidently to predict the future.”
The company still has net assets of £88.8m.