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Can Liverpool ride out the property slump?
As residential developers across the country announce job cuts in an attempt to fend off the credit crunch, Liverpool's apartment-led regeneration efforts look increasingly risky, said experts in the city this morning. "The next two years for the market in Liverpool city centre may prove to be some of the most difficult in its recent history," said Daniel Stear, head of residential property at Kirwans Solicitors. "Many major high street lenders are unlikely to provide more than a 70 per cent loan to buyers of new-build flat developments in Liverpool." But Mark Beardwood, head of real estate at law firm DLA Piper, thinks Liverpool is better placed than markets like Manchester and Leeds, which have far more unsold apartments. "There is a heavy rental demand and we are seeing developers being more imaginative - for example looking at apartment-hotels and working with housing associations. Prices are also comparatively lower here," he said.
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Property
Festival spirit at last
The Secretary of State has this morning approved the £250m plans of Langtree McLean to transform the former International Garden Festival site into a residential community and waterside park. The scheme has consent for 1,308 apartments and 66 town houses at the Otterspool site, which has fallen into neglect since the 1984 festival. The decision also paves the way for the restoration of 56 acres of public parkland. John Downes, managing director of Langtree, said: "This decision follows four years of hard work culminating in more than 100 consultation events, over 6,500 man-hours and a considerable financial investment."
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Good prospects in Hunts Cross
Developer and investor Prospect GB has this morning launched the first phase of its Meridian Business Village in Hunts Cross. Prospect revealed that two of the self-contained office buildings at the 40,000 sq ft scheme are under offer, with strong interest in another two units. Development manager Jane Thompson said: "We are delighted to have received this level of interest from predominantly small local companies in what amounts to a quarter of the available buildings in our first phase and believe this is due to the flexibility we can offer in terms of leasehold and freehold properties."
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McLean prepared to buy
With Redrow's trading update yesterday described as one of the weakest in a weak sector by analysts, good news is thin on the ground in residential property. Persimmon, Taylor Wimpey and Barratt all continue to announce cuts, while Bovis Homes has slashed its dividend. But Flintshire-based David McLean Homes remains bullish, saying that it plans to build its portfolio of sites as land values fall. It reported strong sales at its scheme next to Chester racecourse.
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Business
Beneath the Surface
Surface Transforms, the Ellesmere Port-based manufacturer of high technology carbon ceramic materials for braking systems, this morning said that it expects to report turnover of £508,000 for the year to the end of May, an increase of 90 per cent. The AIM-listed company, which recently announced a major four-year sales contract, expects to report post-tax losses to be down 8 per cent to around £594,000 and a growth in its order book of 137.9 per cent.
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You're the Man
The Isle of Man Government has retained its top-level AAA rating from ratings agency Standard and Poor's, despite global economic uncertainty. Treasury minister Allan Bell said: "Despite the current volatility in world markets, the Isle of Man continues to demonstrate that it is a world-class jurisdiction in which to do business."
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Rooney's agent banned
Paul Stretford, the founder of Proactive Sports Management and the agent of Wayne Rooney, has been banned from acting as a football agent for 18 months and fined £300,000. The Football Association's independent commission found Stretford guilty of seven charges relating to his acquisition of the rights to represent Rooney in 2002 and to a trial in 2004 when charges were dropped against three men accused of blackmailing him. Stretford described the verdict as a travesty.
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Spending to slow, says PwC
Consumer spending growth in the UK will slow to just 0.5 per cent in 2009, according to the latest UK Economic Outlook by PricewaterhouseCoopers. With utilities bills, food, rental payments and debt servicing all rising, discretionary spending will suffer. PwC estimates that debt service costs rose to record levels of just under 20 per cent of household disposable income in 2007 and will provide a persistent drag on consumer spending growth. David McKeith, North West senior partner, said: "The outlook for household spending growth in the UK is looking more subdued now than at any time since the early 1990s."
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Agency ready to roll with livestock funding
The Northwest Regional Development Agency is rolling out the first funding in the region from the Rural Development Programme for England. Initial funding of £6.6m will be released from the Livestock Programme - created to improve the efficiency of businesses in the livestock sector - via six preliminary projects and the agency is seeking applicants interested in running those projects on behalf of the region. Follow-on funding of £9.9m will become available later in the programme to support capital investment requirements.
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Deals
Plastic fantastic deal
AWB Plastics has acquired Wrexham-based rival Silvergate Plastics - a business division of Vita Thermoplastic Compounds - for £1.7m. The deal was financed by the AWB management team with capital from Finance Wales and Venture Finance. Silvergate Plastics, a Wrexham-based business, employs more than 50 members of staff and last year recorded a turnover close to £6m.
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New Insider out this week
Power moves in new issue of Insider

Insider’s July issue features a ranking of the 100 most powerful people in the North West, including 32 new faces and some dramatic moves up – and down – the list. Phil Redmond, joint deputy chairman of the Liverpool Culture Company, is back near the top of the list, while city council leader Warren Bradley has moved down from last year’s berth at 38 in the list. A new entry this year is Simon Edwards of Midas Capital, a man entrusted to look after billions of pounds of personal wealth. If you want to know more, check out the magazine this week.


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