Plain sailing as SA1 forges on
YOU might find it hard to believe, but it's not all doom and gloom these days.
Pick up the paper, turn on the television or radio and all you hear is miserable talk about a recession, jobs going and people feeling the pinch this Christmas.
But you don't have to look very far for an antidote to this torrent of bad news — just across the Tawe, in fact.
Developers have handed the city a £9.2 million boost by announcing a new investment in SA1 Swansea Waterfront, with Tesco opening a small store, and Whitbread the big name behind a new hotel.
And the Post can reveal there is more good news in the pipeline, with the company behind this development looking into two other major investments in SA1.
It's not so much about optimistically defying the downturn as carefully planning for it, taking steps to ensure Swansea is not left lagging when the economy eventually starts picking up again.
Waterstone Estates (Swansea) has acquired a half-acre waterfront site from the Assembly Government.
It will comprise around 63,000 sq ft of high-quality commercial space to include a 132-bed hotel for the Whitbread Group, together with a restaurant with views overlooking the Prince of Wales Dock.
Tesco, meanwhile, will open one of its Express convenience stores.
The development is expected to bring 120 jobs to the city — not including those created during the construction phase.
Waterstone Estates managing director Simon Jehu told the Post the company had been working on it for 18 months.
"We remain absolutely committed to SA1, because we can see what the vision of the future is," he said.
"Although the market is slowing down, a long-term development such as SA1 will have peaks and troughs. We have a long-term strategy to come through it.
"There are varying views about how deep and how long the recession will be. In reality, by the time this development is finished, we are looking at two years before it is open as a venue.
"Most opinions are that we will be on our uppers again and moving forward after 18 months to two years."
A planning application has gone to Swansea Council. Assuming it is approved — probably early next year — the company will need around three months to finalise its designs before work starts.
Funded by Allied Irish Bank in Cardiff, the development will be on a prime site bordering Langdon Road and overlooking the 12- hectare Prince of Wales Dock — the focal point of SA1, set to be developed into a marina.
Mr Jehu said the residential side of SA1 was slowing down, but was confident this would be offset by commercial developments.
"The schemes going ahead will tide it over through this period, and the jobs will strengthen the residential market as well," he said.
"The residential side will be pretty flat for the next year or so, but the commercial schemes coming along look to a longer horizon.
"They are not sold to individuals like houses or flats are, it is not a personal investment. With the commercial side, people take a longer-term view."
For the uninitiated, SA1 is the Assembly Government's £400 million flagship transformation of a disused dockland area into a dynamic and vibrant new quarter.
To date, it has invested more than £38 million, with some £150 million of private sector investment already commenced or under contract. The target is £400 million private sector investment.
So far, the development has created 920 jobs, against a target of 3,000.
Mr Jehu confirmed Waterstone Estates was looking at two other mixed-use investments at SA1, but could not give details.
"We are optimistic. We are working hard with the Assembly Government to take some further things forward," he said.
"But these things don't move quickly. If we are working on something now, it's unlikely we will get anything secured within eight to 12 months.
"We need to be working on them now because, by that time, we are confident we will have hit the bottom and be riding up again.
"We cannot influence the economy. We can only react and look to developments that can be sustained through the downturn."
Swansea Council leader Chris Holley and West Wales Chamber of Commerce president Steve Penny have welcomed the £9.2 million investment.
Assembly Minister for the Economy and Transport Ieuan Wyn Jones was equally enthusiastic.
He said it was all the more significant, given the current economic circumstances.
"It does send out a strong vote of confidence and a signal that Wales is a place to do business.
"It also illustrates that high- quality projects like SA1 continue to be an attractive proposition for developers, and attract high- quality investment.
"These new facilities on SA1 will benefit residents and businesses, and create jobs during the construction phase as well as the operational phase."