A developer which has put plans for two waterfront skyscrapers on hold due to the coronavirus outbreak has increased its banking safety net to £27million in case of further disruption caused by the pandemic lockdown.
Sutton Harbour Group Plc (SHG), which owns a huge chunk of Plymouth’s vast waterfront and the long lease on its mothballed airport, has successfully negotiated a revised bank facility with National Westminster Bank plc.
This extends SHG’s revolving credit facility by £2million for 12 months with the possibility of a further year-long extension, on terms no less favourable than the pre-existing facility.
The idea is to provide additional headroom should it be needed as a result of disrupted trading caused by the Covid-19 Government lockdown restrictions.
The total bank facility is now increased to £27million from £25millon.
In March, SHG put its ambitious development plans on hold, including the start of work on two huge Plymouth waterfront skyscrapers and two floating events pontoons.
SHG had said it would start work on the giant Sugar Quay tower and the neighbouring Harbour Arch Quay block in 2020, but that was before the outbreak of COVID-19.
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The AIM-listed company decided to put the schemes on hold and the money that would have been used for the projects, the combined costs likely to be more than £70million, could be ploughed into the company if necessary.
The company also halted plans to build two floating pontoons at the Barbican, in Plymouth, and an extension to the car park near the city’s National Marine Aquarium.
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The developer, which owns Plymouth’s King Point Marina and Sutton Harbour Marina, also predicted serious effects from the Government’s restrictions on business and movement of people.
It said the cancellation of a programme of summer events held around Sutton Harbour, notably the special Mayflower 400 anniversary commemoration, will diminish car parking revenues and undermine the collectability of tenants' rents, many of whom are in the tourism and hospitality sectors and depend upon a good summer season.
SHG now stressed it continues to remain in close contact with its tenants, customers and key stakeholders and is keeping a close watch on changes to Government restrictions to allow preparations for the re-opening of facilities, in accordance with official guidance, to be made.
A statement to the stock exchange said: “Following the Government guidance, the company is pleased that berth-holders are now accessing their boats berthed in the marinas and that the re-awakening of the facilities is proceeding with appropriate care.”
