Orascom launches project in the UK
Orascom Development Holding (ODH) is launching a project in Cornwall. The plan is to build a large residential complex with an office park as well as retail and restaurant space.
ODH says it is currently planning to launch the first phase of West Carclaze Garden Village (WCGV) in Cornwall, UK. WCGV is reportedly a mixed-use development aimed primarily at local first-time home buyers. Plans call for a total of 1,500 to 1,800 homes surrounded by green spaces and lakes.
The project also includes a 420-seat elementary school, an office park, a "village center" with nonprofit buildings and retail and restaurant businesses, and a 7-megawatt solar array.
Groundbreaking next spring
A land area of over 6.5 million sqm can be used for the realization of WCGV. In the first phase, a total of 270 residential units in detached and semi-detached houses and apartments will be built on nearly 200,000 sqm. The groundbreaking ceremony is scheduled for February 2020, and the project will go on the market from June of the coming year. According to plans, the first phase will be completed by the third quarter of 2024.
ODH expects total sales of 79 million pounds, the equivalent of about CHF 101 million. Cash flow will be positive and the project profitable from 2022, the company added. Estimated cumulative losses before profitability would be 1 to 2 million pounds, or 1.3 to 2.6 million CHF.
State funding in prospect
According to ODH, the British government has classified the project as a "Garden Village" and "Eco-Town," and the National Health Service (NHS) is considering a "Healthy Town" designation. The designations stem from British government initiatives such as those to promote the provision of affordable and sustainable housing. ODH expects the designations to not only give it a high profile and increased market presence, but also "significant government support, including concessionary funding," the company said.
ODH intends to realize the project through its British subsidiary Eco-Bos Developments Limited, in which the industrial company Imerys holds a stake of 25%. The subsidiary is expected to develop a large number of projects over the next two decades and contribute to ODH's strategic goal of diversifying into the relatively stable and attractive market for European homes. (ah)
