Its that time of year for CGP to let its shareholders know how its doing or not doing and a Chairman's Report etc seems needed soon. One can expect further paper losses as land asset values have fallen and CGP can only make a profit when it develops and sells.
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Fellow CGP watchers will have noticed CGP becoming one of the AIM 'walking dead' with shares going as low as 3p, rallying oddly in April to 45p following IOTG announcing an offer of £3 million for KCC land at Manston Business Park and settling back to 28p.
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Its holdings at Dover would appear to be going nowhere at the moment; prospects at Westwood Park Wigan are looking dismal with West Midlands Development Agency and Wigan Borough Council rumoured to be considering other options. That leaves Manston Business Park and Thanet's China Gateway project as the main priority perhaps.
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CGP's problem in this recession is simply capital to proceed. Its running costs are minimal but it owes Israel Discount Bank £28 odd million that originally had to be paid back by Nov 2009 (6 months away). One can discount the recent MOU with UNIDO; CGP had an MOU with Chinamex and others in 2007 and collecting MOUs is perhaps the new version of stamp-collecting. However, if CGP is to proceed its only likely source of serious money is from China and China has lots of it and will beat both the USA and the UK out of recession and come thundering back onto the world stage.
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What has this got to do with KCC and TDC and EKO LLP (their little property company that is not under democratic control.)? The map above shows the land KCC owns at Manston Business Park; CGP's approved plans and existing development. TDC and KCC have been urged by me and others to release this land to CGP to enable it to proceed to develop an environmentally safer and less disturbing development to Acol. If this land had been made available last year as I urged TDC to do, sensible job creating development on Manston Business Park becomes a reality. This is what the TDC Councillors decided in October 2008 , after all.
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The problem is that KCC and TDC (EKO LLP) have been holding CGP to ransom, demanding £2.25 million for 5 acres for the envisaged Gateway building and a small ransom strip, whilst retaining the rest it owns. Just to make matters worse KCC paid over £6 million for 70 acres (which also includes strips and bits) in 2006 at the top of the market and even then it was reputed to be an excessive price.
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The IOTG reported on 17 April that CGP have made an offer to KCC worth £3 million to purchase 27 acres. This is good news. Chinese investment will come to Manston Business Park if the project is big enough; it could be with the extra land. That was 6 weeks ago and rumour has it that EKO LLP has not responded and that no face to face meeting with legal bods attached has yet taken place. How long will KCC and TDC stall on this. E & R reports at KCC, waffle, but still no decision? When will Councils and Councillors realise that business in a fast moving world cannot crawl along at the incompetent and slow pace that seems apparent here.
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If you are wondering why am so keen to see CGP use the whole site you will need to read back to last year's posts. Quite simply, this land is designated employment land; TDC has granted planning consent and yet CGP needs space. The present approved plans are unsatisfactory and pose a threat to Acol and the aquifer. CGP could redesign the whole project with more space and place X type warehouses and all HGV movement close to the entrance of Columbus Avenue, away from Acol and the aquifer.
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With the jobless level in Thanet now in excess of 4,000 it is time for EKO LLP to stop playing at being a property company and think about its priority of inward investment (albeit Chinese) and job creation. Environmentally, CGP could be 'persuaded' at the same as selling it the land, to move the HGV's away from Acol and the aquifer.
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This is a sad case of little men like Cllr Latchford and his KCC 'oppo' playing at property development and politics instead of realising where the priorities lie. It is not a question of hoping CGP's development will raise EKO's prices and thus making a tidy return; the land will remain a weed patch and no jobs will be created. We have a derelict Dreamland and a Manston Business Park empty and land-banked by our own Councils. This cannot be right, can it? If necessary take a loss on the land and get good and environmentally sound development underway as soon as possible. Just forget about Phases 2 & 3 on other farmland though.
Click to expand the historic Thanet pictures, some thoughts on shops and
shopping in Ramsgate and of course a Christmas ramble
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So starting with some archive photos of Ramsgate shops.
Of course back in the day Ramsgate was full of, "are you being served"
shops, a situation base...
34 minutes ago