Arsenal were reported in the Telegraph as saying this week, of the 600 flats in the redeveloped Highbury, 550 buyers have completed with all but three of the remaining 50 expected to completed soon.
If true, that’s fantastic news – in a poxy news summer with a continual drip of negative news stories, and potentially more financially valuable to Arsenal than securing a Champions League place this season. However it does fly seriously in the face of economic gravity.
There were fears that with the London prices dropping, the ‘flippers’ – those who buy off plan and sell for a profit after completion – would walk away from their deposits along with some buy- to-let purchasers, for that matter. Arsenal, of course could have rented the flats during the temporary dip, like some other developers, and would have had strong demand in the market for that option until the market recovers through lack of supply.
The last set of accounts reported that the current Highbury Square debt was £105m and rising and £30m of deposits had been received. According to AST’s Nigel Phillips analysis: “So reaching completion of Highbury Square and Queensland Road during the next 18 months will be a major achievement. If all goes to plan and the level of completion defaults is low Arsenal should net at least £100m which will repay the £50m debt facility and one assumes be allocated to squad investment (to cover both transfers and wages).”
And as far as cash flow goes, the credit crunch doesn’t look like it is hitting the Emirates, with Arsenal reported to have sold 40,000 season tickets – the same as this time last year, even though prices have increased 2.6% and many tickets are over the £1000 mark.
Meanwhile, Islington Council planners have told Arsenal to scale back the last part of the Emirates regeneration programme with a new planning officer criticising the ‘scale, mass and bulk’ of the original scheme which received outlline planning consent in 2005.
Kevin O’Leary, the council’s director of environment and regeneration also pointed out the the retail and leisure facilities would conflict with those in Holloway Road.
CZWG the architects for the scheme changed the original plans from 288 apartments in five blocks with a 14 storey maximum height height to 725 apartments with the tallest at 21 storeys, and replacing an indoor sports club with a cinema, fitness centre and restaurants.
That has been scaled back to within one storey of the original plan, however the number of flats remains nearly the same – with 50% affordable.
The cinema plans have gone, and there are no plans to re-instate the indoor sports sports centre, despite a 3000 strong petition. The Council settled for the 50% affordable housing requirement and £1.8m cash to improve existing sports facilities.