Joined: Oct 12 2005 Posts: 4231 Location: Barnsley
No, read it again = I said "until they have sold" enough units - not built.
As you say, they can't build until they release the £12m (at least WMDC learned something from the Yorkcourt debacle).
There is no way Axiom are releasing £12m until they have sold enough space.
Who knows just how many units they have sold right now (or rather holding) - maybe they have enough to go ahead, but they need to fund the S106 and the J32 build all in one go.
dboy wrote:No, read it again = I said "until they have sold" enough units - not built.
As you say, they can't build until they release the £12m (at least WMDC learned something from the Yorkcourt debacle).
There is no way Axiom are releasing £12m until they have sold enough space.
Who knows just how many units they have sold right now (or rather holding) - maybe they have enough to go ahead, but they need to fund the S106 and the J32 build all in one go.
I agree they are unlikely to release the monies until they have enough committed customers, however the sale of the units is not the trigger point, the trigger point is when they want to start construction, as they can’t even put a spade in the ground until they release the £12m, also their 2 biggest potential customers have already pulled out and found other sites along the M62, my guess is, the project at J32 will not be carried out by Axiom whilst that S106 is in place, the most likely outcome is a different developer and a reduces S106 in castlefords benefit, does that sound familiar?
What's pink & hard first thing in the morning? The financial time crossword
Joined: Oct 12 2005 Posts: 4231 Location: Barnsley
financialtimes wrote:I agree they are unlikely to release the monies until they have enough committed customers, however the sale of the units is not the trigger point, the trigger point is when they want to start construction, as they can’t even put a spade in the ground until they release the £12m, also their 2 biggest potential customers have already pulled out and found other sites along the M62, my guess is, the project at J32 will not be carried out by Axiom whilst that S106 is in place, the most likely outcome is a different developer and a reduces S106 in castlefords benefit, does that sound familiar?
Lol, you're saying the same as me.
They won't build at J32 until they hit enough sales. They won't release the S106 money until they hit enough sales AND want to start the J32 build. When they do want to build, they will HAVE to release the S106 money - though as you say, it may not look like £12m by that time!
Also, as we found out to our cost, £12m today is not the same value as £12m in 12 months time.
financialtimes wrote:I agree they are unlikely to release the monies until they have enough committed customers, however the sale of the units is not the trigger point, the trigger point is when they want to start construction, as they can’t even put a spade in the ground until they release the £12m, also their 2 biggest potential customers have already pulled out and found other sites along the M62, my guess is, the project at J32 will not be carried out by Axiom whilst that S106 is in place, the most likely outcome is a different developer and a reduces S106 in castlefords benefit, does that sound familiar?
Are they still planning to redevelop the whole ground for £12m?
They won't build at J32 until they hit enough sales. They won't release the S106 money until they hit enough sales AND want to start the J32 build. When they do want to build, they will HAVE to release the S106 money - though as you say, it may not look like £12m by that time!
Also, as we found out to our cost, £12m today is not the same value as £12m in 12 months time.
Not quite the same, “they are unlikely to release the S106 money, also giving clarity to what the trigger point is as the sales aren’t “essential” but they maybe necessary
What's pink & hard first thing in the morning? The financial time crossword
Joined: Oct 12 2005 Posts: 4231 Location: Barnsley
financialtimes wrote:Not quite the same, “they are unlikely to release the S106 money, also giving clarity to what the trigger point is as the sales aren’t “essential” but they maybe necessary
Ah, of course, they could choose to pay the S106 money up front, before they sell units or wish to commence the build.
But they won't.
They are only in this to make money.
The S106 money will sit in their bank until the very last moment - in my opinion.
They have nothing to gain by doing otherwise.
*They may, of course, have a full book of clients for J32 - we'll see in due course.
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