LOCATIONS
LAND
15 Jan 10. The Ministry of Defence is facing another significant budget squeeze because receipts from asset sales, long used to sustain departmental spending, are expected to plummet over the next four years due to the property market downturn and a lack of sites ready for disposal. According to data obtained by the Financial Times, Defence Estates, the unit that manages the MoD’s land and buildings, expects the cash generated from disposals to drop from its current rate of around £300m a year to only £25m a year by 2012-13. Because disposal receipts are factored into the baseline defence budget, reduced targets or receipts mean more pressure on spending. Last year, for the first time, DE missed its annual targets, selling only £110m of assets against expectations of £305m. The shortfall meant that £200m had to be cut from the MoD’s budget. Worryingly for ministry budgets, DE expects the property downturn to continue. This year the DE was asked to raise £200m but now predicts that it will raise only about two-thirds of that amount.
“In the short to medium term … the cost of capital will rise, risk will be more accurately priced, private finance initiatives (if they can be financed) may become more expensive and the ability to generate funds from disposals reduced,” DE wrote in its recent development plan. (Source: FT.com)
BATTLESPACE Comment: Clearly the MoD is not making the best sue of one firm, Gilmerton Land Services, who specialise in reclamation of underground assets such as piping and copper cable. David Kinloch, who runs the Company has just written BAE systems a very large cheque for reclamation at the Bishopton ammo factory in Scotland. Landmark, the MoD’s land agency have reportedly dragged their feet on these issues. Whilst Gilmerton has won MoD work, the process is very long winded and could be speeded up.
11 Jan 10. Lockheed Martin dedicated an expanded state-of-the-art electronics fabrication and assembly facility during a ribbon cutting ceremony today. The new 50,000-square-foot addition effectively doubles the size of the company’s Lufkin Operations facility, providing adequate space for future production growth and potential modest hiring. Lockheed Martin’s Lufkin Operations produces electronics and sub-assemblies for the combat-proven Patriot Advanced Capability-3 (PAC-3) Missile, the Guided Multiple Launch Rocket System (GMLRS), the Army Tactical Missile System (ATACMS) and the Terminal High Altitude Area Defense (THAAD) Weapon System. The company anticipates steady growth in its Lufkin Operations on these programs over the next few years
15 Jan 10. GenCorp Inc. announced the formation of Easton Development Company, LLC to continue the execution of the planning, entitlement, development and value creation activities regarding the excess real estate owned by GenCorp and Aerojet in Sacramento, California.
For the past six years, the Company has been working to create the Easton master plan. Spanning approximately 6,000 acres, Easton is comprised of a series of smaller planning areas known as “boroughs.” The formation of EDC reinforces GenCorp’s commitment to the Easton brand and enhances the Company’s ability to attract new business and investment in the real estate assets going forward. In December 2008, Sacramento County approved the entitlements for the first two boroughs; the 1,208-acre Glenborough at Easton, and Easton Place, a 182-acre transit-oriented urban town center. (Source: Yahoo!)
11 Jan 10. The US Air Force has published a notice of intent proposing Jacksonville Air Guard Station to be the first choice for the base of the F-35 Lightning II aircraft. A joint strike fighter, the supersonic F-35 aircraft is based on stealth technology and systems. The F-35 will replace the air force’s aging aircraft such as the F-16, F/A-18 and A-10, following its entry into service in 2012. The air force is also considering Idaho, Utah, Vermont and South Carolina as other pos