Annual Review Managing Director s review. Our Team. Henry Boot Developments 2017

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1 Annual Review 2017

2 2 3 Annual Review Managing Director s review Our Team Henry Boot Developments 2017

2017 sees growth continue David Anderson Managing Director Henry Boot Developments Welcome to the second Henry Boot Developments Annual Review.

3 2017 sees growth continue David Anderson Managing Director Henry Boot Developments Welcome to the second Henry Boot Developments Annual Review. I would like to thank everyone for the positive feedback received following our first review covering 2016, and I hope that this second edition, detailing what we got up to in 2017, is equally as interesting was an even more active year than the last, which itself was a record year for the Company, and this was reflected in the broad range of development projects the Company was involved in. One highlight was the opening of our sixth regional office, in Birmingham City Centre, which reflected the increasing number of projects we are taking forward in the Midlands region. Overall, the Company saw a 20% growth in staff numbers and a marked increase in turnover, asset value and profits, which reflected the continued hard work, enthusiasm and professionalism of every team member. Much has been written about the wider challenges facing the UK economy and how these may or may not affect business activity going forward. There is clearly an air of caution in property markets, which on a positive note, has perhaps tempered potential market excesses that if allowed to go unchecked never ends well. However, our experiences in the year have shown that such caution has not in the main triggered significant reductions in demand either from occupiers or investors. There are undoubtedly significant structural changes taking place which are continuing to affect different sectors in different ways, some positive and some negative, and we continue to address these with fresh ideas and innovative solutions. Henry Boot Developments core strength is its people and their willingness to build and nurture strong relationships with a wide range of individuals and organisations, who become our customers and partners, often for many years. We have sought to maintain an involvement in a broad range of development projects throughout the UK, including those in retail, industrial & warehousing, offices and the residential sectors. This strategy might be seen as unconventional to many in the industry where increasing sector specialisation is perhaps the norm, but this strategy provides Henry Boot Developments with a highly robust and resilient business model which has served it well over the long term. The enthusiasm, imagination and creativity of all our people, and those we work with, is reflected in the quality of the innovative solutions we deliver on a broad range of property developments, which provide business solutions to organisations, and bring regeneration and wealth creation to the wider community. I expect this to continue unabated in the future and I hope that this Annual Review will give you a further insight into what is coming. As always if you would like to know more about any of the projects featured or have an idea or opportunity you think we might be interested in please do get in touch.

4 4 5 Annual Review 2017 key statistics 251m turnover 134% increased profitability

5 5 million sq ft of deliverable business space secured 1bn commercial development pipeline

6 7 Annual Review Sector activity Business space continued to be our most active sector, reflecting the ongoing healthy demand from occupiers and investors.

This was in addition to the completion of a further 575,000 sq ft of distribution space.

to pursue bespoke new build solutions to meet requirements.

6 6 7 Annual Review Sector activity Business space continued to be our most active sector, reflecting the ongoing healthy demand from occupiers and investors. During 2017 we agreed terms on eight new sites totalling over 640 acres, capable of delivering over five million sq ft of new employment space. This was in addition to the completion of a further 575,000 sq ft of distribution space. Business Space Occupier demand remains robust, especially in the logistics and manufacturing sub-sectors, where the supply of existing quality accommodation is very limited, necessitating occupiers to pursue bespoke new build solutions to meet requirements. The trend towards owner occupation has continued to be evident but pre-let floorspace continues to play a significant role, underpinned by continued investment yield compression throughout ,000 sq ft of employment space under development in 2017 The retail & leisure sectors have continued to be one of the most challenging, as occupiers continue to grapple with major structural change. The increase in online retailing is blurring the definition of retail space, which could now potentially encompass not only the traditional retail unit but also showrooms, trade counters and even warehousing. The impact has undoubtedly resulted in a decline in the demand for traditional retail space, an increased emphasis on representation in larger regional centres and a decline in sub-regional retail locations. Patterns of consumer behaviour have also changed significantly, notably in the food retail sector. Retail & Leisure Henry Boot Developments was actively involved in delivering almost 1 million sq ft of retail and leisure space in 2017 These trends are reflected in our activities where there has been an increase in the proportion of edge of centre retail warehouse development, both for stand-alone units and larger retail parks, often supported by complimentary leisure uses, and a decline in the more traditional town centre schemes, where occupier demand continues to be weak. Examples of this include our retail warehouse and leisure scheme in Livingston town centre, completed and sold during This scheme included occupiers such as Dunelm, B&M Retail, Marston s and Starbucks. A second smaller convenience retail scheme in Monmouth was also developed and sold in the year, with both investments achieving values ahead of expectations, reflecting the continued investor appetite for the right retail and leisure investments.

Our activities in the residential sector continue to be diverse and centre on delivering apartments for rent and sale through both new build and conversion projects.

exercise. Elsewhere, we were delighted to complete the development and sale of the first phase of the residential conversion of the former Terry s chocolate factory in York.

7 Our activities in the residential sector continue to be diverse and centre on delivering apartments for rent and sale through both new build and conversion projects. Our largest scheme in this sector is Kampus, a 540 unit build-to-rent scheme in Manchester City Centre where construction commenced in the middle of 2017 following a successful forward funding exercise. Elsewhere, we were delighted to complete the development and sale of the first phase of the residential conversion of the former Terry s chocolate factory in York. This 163 unit, 170,000 sq ft apartment scheme was completed and sold to owner occupiers in record time. Residential The end development value of current residential schemes is forecast to be over 230 million All these projects reflect our continued appetite for quality city centre apartment projects where a high-quality product can be delivered meeting existing demand. This market is not homogenous and demands the careful consideration of local circumstances and characteristics. Our aspirations in this sector are not to pursue year-on-year increases in the numbers of apartments delivered, but to ensure that each scheme is of the appropriate scale and character fitting the location, whilst offering the market the right product at an affordable price. Joint ventures are and will continue to be the single most significant part of our project pipeline, both in terms of the number of individual projects and their collective GDV. In 2017 we were actively operating 14 pre-existing joint ventures with a wide range of partners. These partnerships delivered over 175 million of investment in the year. Our extensive experience of joint ventures means we can offer creative solutions to often intractable problems to deliver the outputs needed. These problems are not just financially focused and can include other priorities such as regeneration and employment creation. Joint Ventures Over 70% of the Company annual turnover came from existing joint venture projects in the year During 2017 notable events included the delivery of over 500,000 sq ft of new employment space at Markham Vale, we reached the midpoint in the 3-year phase 1 development programme of the 800,000 sq ft exhibition and conference centre in Aberdeen, and commenced the development of the 540 unit build-to-rent Kampus scheme in Manchester. We were selected as partner on a further nine projects encompassing over 600 acres throughout the UK. These included regionally significant developments such as the International Advanced Manufacturing Park in Sunderland, Nexus 25, a major new business park in Taunton and a 100 million employment led regeneration project in North London. Our partnerships rely on us building strong relationships and trust with our partners, that will endure over many years, creating innovative risk transfer and control mechanisms to ensure the partnership objectives are delivered in a timely and financially viable manner.

8 9 Annual Review Sector highlights Business Space

office building to create 31,500 sq ft of business

Sunderland 370 acre nationally significant automotive

160,000 sq ft speculatively developed industrial park

development pre-let to Atkins PLC New Horizon,

established employment area Airport Business Park,

8 8 9 Annual Review Sector highlights Business Space Blake House, Uxbridge Refurbishment and extension of office building to create 31,500 sq ft of business space International Advance Manufacturing Park (IAMP) Sunderland 370 acre nationally significant automotive and advanced manufacturing park Thorne Park, Thorne 160,000 sq ft speculatively developed industrial park Woodcote Grove, Epsom 110,000 sq ft HQ office development pre-let to Atkins PLC New Horizon, Nottingham 48 acre regionally significant site in an established employment area Airport Business Park, Southend-on-Sea 52 acre business park in partnership with Southend-on-Sea Borough Council

9 Ferdinand Bilstein Markham Vale Scheme Value 21m 212,800 sq ft Design & Build unit for German car component manufacturer and supplier at our flagship Markham Vale scheme Business Space

10 11 Annual Review Sector highlights Retail &

the site of the new AECC, Aberdeen Equitable

centre high-end retail pitch Monmouth District

The Oaks, Daventry Town centre regeneration

10 10 11 Annual Review Sector highlights Retail & Leisure Aloft, Aberdeen 150 bedroom hotel on the site of the new AECC, Aberdeen Equitable Building, Manchester Purchase of prime city centre high-end retail pitch Monmouth District Centre, Monmouth Edge of centre retail scheme The Oaks, Daventry Town centre regeneration project in partnership with Daventry District Council

11 The Silk Works Manchester Scheme value 18m Eight storey city centre hotel for Moxy by Marriott. Retail & Leisure

12 13 Annual Review Sector highlights Residential

development Wyvern Park, Skipton 50 acre mixed use

York Redevelopment of the iconic former Terry s

apartments Centre Gate, Bristol City centre office to

12 12 13 Annual Review Sector highlights Residential Kampus, Manchester 540 unit city centre PRS development Wyvern Park, Skipton 50 acre mixed use residential and business park The Chocolate Works, York Redevelopment of the iconic former Terry s chocolate factory and clock tower into 185 luxury apartments Centre Gate, Bristol City centre office to residential conversion providing 86 student beds developed in partnership with Markey Group

13 Equitable Building Manchester Scheme value 23m Redevelopment of city centre former Habitat store. Conversion of upper floors to high-end residential. Residential

14 14 15 Annual Review Sector highlights Joint Venture partners Derbyshire County Council Daventry District Council Aberdeen City Council Luton Borough Council Southend-on-Sea Borough Council Crown Estates Ares Management Crofty Developments Ltd PJ Livesey Capital & Centric London Borough of Enfield Barnfield Construction Ltd Markey Group Sainsbury s Calderdale & Huddersfield NHS Trust Sunderland City Council South Tyneside Borough Council Walsall Borough Council Summerfield Developments Ltd Great Manchester Property Venture fund

15 Springfield Health, The Chocolate Works York Nexus 25 Taunton Markham Vale Derbyshire Kampus Manchester The Oaks Daventry AECC Aberdeen

16 17 Annual Review Testimonials Nexus 25 Taunton Working in collaboration with the experienced team at Henry Boot Developments we are transforming the Silk Works, Manchester into a 145 bed boutique

16 16 17 Annual Review Testimonials Nexus 25 Taunton Working in collaboration with the experienced team at Henry Boot Developments we are transforming the Silk Works, Manchester into a 145 bed boutique Moxy by Marriott Hotel. This beautiful heritage building in the heart of the city had existing planning consent for office space. Henry Boot Developments understood our vision from the outset and were instrumental in us getting the go ahead for Spinningfield s only hotel. We enjoyed working with Henry Boot Developments and wouldn t hesitate to do so again. As one of the most wellestablished property development businesses in the country, Henry Boot Developments has a strong track record in delivering strategic employment sites. This experience combined with their local presence and market knowledge made them a sound choice as a joint venture delivery partner. We look forward to working with Henry Boot Developments and Taunton Deane and Somerset Council to deliver the exciting Nexus 25 development, which is so important for the area. We relocated our UK operation to a 213,000 sq ft bespoke distribution facility at Henry Boot Developments flagship Markham Vale scheme. We had very specific requirements which required a great deal of collaboration between ourselves and the team at Henry Boot Developments. We have been really impressed with the delivery of our new unit both in terms of lead time and specification. The national distribution hub was delivered on time and within budget. Our facility is now operational and I would have no hesitation in recommending Henry Boot Developments. Anil Khanna Managing Director Khanna Enterprises Chris Winter CEO Summerfield Developments Paul Dodgson Operations Director Ferdinand Bilstein UK

Other 2017 Highlights Vivienne Clements won Property

Property Awards Along with our sister companies we

We threw a party at Hotel du Vin to celebrate the

production Seasons Greetings at The Vaults,

All proceeds from the ticket sales were donated to

memorial at our Markham Vale development to remember

17 Other 2017 Highlights Vivienne Clements won Property Personality of The Year at the Insider Yorkshire Property Awards Along with our sister companies we raised over 22,500 for St Luke s Hospice, Sheffield We threw a party at Hotel du Vin to celebrate the launch of our Birmingham office We hosted the production Seasons Greetings at The Vaults, Manchester. All proceeds from the ticket sales were donated to Forever Manchester We sponsored a Walking Together memorial at our Markham Vale development to remember miners who lost their lives Our Kampus, Manchester development scooped the North West Insider Residential Deal of the Year

18 19 Annual Review Our people Henry Boot Developments

Birmingham, Bristol, Glasgow, London and Manchester.

Manager Tim Burn Senior Project Manager Vivienne Clements

Assistant Project Manager John Cullen Director Roisin Davies

Hutchinson Director Thomas Matthews Senior Project Manager

Priestley Development Georgina Ronksley Property Assistant

Wordsworth Assistant Project Manager Ruth Wright Office

18 18 19 Annual Review Our people Henry Boot Developments operates from its six regional offices located in Sheffield, Birmingham, Bristol, Glasgow, London and Manchester. Sheffield David Anderson Managing Director Hamer Boot Regional Manager Tim Burn Senior Project Manager Vivienne Clements Director Anthony Clitheroe Senior Development Joe Cooke Assistant Project Manager John Cullen Director Roisin Davies Development Ollie Exton Work Placement Development Ed Hutchinson Director Thomas Matthews Senior Project Manager Andrew Milne Development Will Moroney Senior Management Andrew Priestley Development Georgina Ronksley Property Assistant Simon Ross Development Tom Wheldon Regional Manager Jamie Wordsworth Assistant Project Manager Ruth Wright Office Administrator Birmingham Leanne Mathers Office Manager Simon Raiye Senior Development Justin Sheldon Regional Manager

Bristol James Cinicola Development Lynne Exarheas Administration and Marketing

Mathias Senior Development Julian Painter Director Glasgow Kathleen Dall

Pamela Mitchell Senior Development Nigel Munro Regional Project Manager

Davenport Development Adrian Schofield Director Manchester Adam Brady Director

Manifold Senior Development Chris Stalker Kampus Development Manager Dean

19 Bristol James Cinicola Development Lynne Exarheas Administration and Marketing Coordinator Edward Gurhy Senior Project Manager Mo Hassan Development Craig Mathias Senior Development Julian Painter Director Glasgow Kathleen Dall Office Administrator Nick Harris Director Lisa Lees Office Administrator Pamela Mitchell Senior Development Nigel Munro Regional Project Manager Gillian Schoneville Development London Harry Bunbury Senior Development Luke Davenport Development Adrian Schofield Director Manchester Adam Brady Director Tom Dunn Development Caroline Hines Company Marketing Coordinator Steve Manifold Senior Development Chris Stalker Kampus Development Manager Dean Thompson Regional Manager Laura Thomson Office Manager and PA Amy Thorburn Walker Project Marketing Coordinator

20 Sheffield Vivienne Clements +44 (0) Birmingham Justin Sheldon +44 (0) Bristol Julian Painter +44 (0) Glasgow Nick Harris +44 (0) London Adrian Schofield +44 (0) Manchester Adam Brady +44 (0)

Annual Review

Annual Review 2016 @henrybootdev 2 3 Managing s review 2016 was a great year David Anderson Managing Henry Boot Developments Welcome to the first Henry Boot Developments. I hope it will give you a better insight into