Autumn 2014 >> A refreshing look at us, our world and yours

Transcription

1 focus Autumn 2014 >> A refreshing look at us, our world and yours Filton Airfield plans go to Council Master-Planning Plymouth s South Yard Record office rent for Bristol >> Full stories inside INSIDE >> Unite Students appointment Empty rates refunds available on refurbished properties

2 Welcome Recovery in the commercial property market has gradually strengthened over the past year. From Gloucestershire to Devon, Bristol to Cardiff, a myriad of new developments are now underway and acting as catalysts for further investment. Earlier this year, Alder King was instructed to lead the development consultancy, planning and future realisation of the 400 acre former Filton Airfield and neighbouring Brabazon Hangars in north Bristol. A planning application has just been submitted. In this issue of AK Focus, we share the latest news of this and other high profile schemes across the region and highlight recent success stories achieved for clients. Former Habitat building to become student hub Record rent for Bristol as PwC confirms move to 2 Glass Wharf PwC has agreed terms for three floors at Salmon Harvester s 40 million speculative office development 2 Glass Wharf, Temple Quay in Bristol. PwC is taking 37,157 sq ft of the 100,000 sq ft scheme at 28 per sq ft, a record rent for the city and the largest letting for a building under construction for several years. Rorie Henderson, Development Director at Salmon Harvester Properties, comments, As we near completion, 2 Glass Wharf is taking shape as the city s flagship office building. We are delighted to have signed such a prestigious tenant and with considerable interest in the remaining space we hope to announce the scheme is fully let before Christmas. This is the first of our three development projects planned at Temple Quay. We have submitted a planning application for the adjacent site 3 Glass Wharf, which incorporates 109,255 sq ft of offices with retail and leisure on the ground floor, plus basement car parking. Simon Price, head of agency at Alder King, said: Confirmation of this letting to PwC three months ahead of the building s practical completion is a ringing endorsement of the scheme and Salmon Harvester s confidence in Bristol s economy. It also clearly demonstrates the increasing demand for prestigious Grade A office space in the city centre. Contact: sprice@alderking.com Beacon House, the former Habitat store in Bristol, is to be given a new lease of life after the University of Bristol acquired the flagship building for use as a student hub. The Grade 2 Listed property had been on the market since Habitat went into administration over three years ago. Alder King Planning Consultants recently secured planning permission for the partial redevelopment of the property to provide retail accommodation and new student study space. However following the University s acquisition of the entire property, a new comprehensive application will be submitted for a central study and learning hub for students, providing an additional 350 study seats with separate areas for group working. In addition plans are also afoot for a café and perhaps a bookshop or bank in the 28,499 sq ft building. Alder King advised the University on the acquisition and our building consultancy team, having undertaken an in-depth survey of the property as part of this process, has recently been commissioned to project manage a package of substantial repair and improvement works to the fabric of the building. This will include internal stripping out and other works to fully facilitate the University s subsequent fitting-out of the restored and improved property. Alder King s planning team will continue to co-ordinate planning applications at the site. The purchase is the latest in a series of investments by the University in teaching and research facilities totalling over 200 million over the last two years. The University intends that the new student hub will be open for the start of the next academic year. Contact: sprice@alderking.com Beacon House, Bristol. Former Bristol Habitat building to become flagship learning centre.

3 Planning application in on Filton Airfield In October 2014, Alder King submitted on behalf of BAE Systems plc a major planning application for one of the most significant and transformational development proposals in the North Bristol Fringe of the last 20 years. The 354 acre former Filton Airfield closed in 2012 and was adopted for development in South Gloucestershire s Core Strategy a year later. In the intervening period there was extensive discussion and public consultation leading to the current proposal which envisages a new community offering 2,675 new homes, a new employment area delivering over 7,500 high value new jobs and a 100 million package of new transport, community and green infrastructure. sports and other community facilities including one Secondary and two Primary schools will be provided. The Alder King team, led by partner John Benson, is providing comprehensive development, viability planning and disposal advice. There will now be an intense period of activity over the coming months as the application is thoroughly considered, planning agreements are negotiated and the proposals take further steps towards the commencement of physical development. The Airfield forms a significant part of the wider Cribbs Causeway/Patchway New Neighbourhood (CPNN) which, on completion in 20 years time, will deliver approaching 5,700 new homes in the North Bristol Fringe and lead to the reconnection of many communities previously disjointed by the significant east west barrier created as a result of the airfield s original construction in 1910 and subsequent extension in the 1940 s. Alongside many new residential communities, the development proposals also include a major employment component. This will form part of the Filton Enterprise Area and is focussed on enhancing the area s established reputation for advanced engineering and aerospace, seeking to encourage growth in established businesses and attracting new inward investment to the region. The site s aeronautical heritage is also being celebrated with the creation of the Bristol Aerospace Centre on land and buildings donated by BAE. The Centre will showcase and celebrate the region s continued world-class achievements in aerospace whilst conserving and sharing this aviation heritage and will also provide a permanent home for Concorde. The new community will be served by significantly enhanced public transport infrastructure including the MetroBus and a transformed network of cycle and pedestrian links serving the development and beyond. Previously broken north south green corridors will be reconnected and significant public open spaces, Alder King and BAE Systems are also working with the Great Western Air Ambulance and National Police Air Service to identify a permanent site for them. All parties are committed to finding an appropriate site that allows them to continue operating their essential helicopter services for the Bristol and wider area. This opportunity represents one of the most complex brownfield mixed use development proposals in the region, says John. Mike Craddock of BAE Systems said: We are delighted to be working with Alder King to deliver this hugely important regeneration. Alder King s expertise in leading a first class team of designers, engineers and other multi-disciplined consultants to deliver a proposal of this complexity on behalf of BAE has proven invaluable and underlines the strength of our relationship with Alder King in the region. Contact: jbenson@alderking.com

4 Big boost to Gloucestershire s development pipeline Moog Controls new office/production facility at Tewkesbury. Gloucestershire s commercial property market is powering ahead with an unprecedented volume of bespoke new development. Close to 250,000 sq ft of new speculative or pre-let space is being developed in response to improving confidence, particularly in the manufacturing and engineering sectors, and the on-going shortage of available quality space. From Tewkesbury in the north to Quedgeley West in the south, developers are either on site, awaiting planning or just completed on seven schemes totalling 240,000 sq ft. Adrian Rowley, partner in Alder King s Gloucester office, says: While there is speculative and pre-let activity elsewhere in the South West, the volume of development now underway in Gloucestershire is at an unprecedented level. Developers have recognised that investment in the development pipeline at this point in the market cycle is likely to deliver good returns. At Quedgeley West, St Modwen is constructing a 35,000 sq ft freehold turnkey facility for Vision Profiles, a supplier of high quality aluminium extruded profiles. St Modwen is also on site developing a speculative 28,000 sq ft unit scheduled for practical completion in January At Waterwells Business Park in Gloucester, Glenmore has just completed Phoenix House, a speculative 22,000 sq ft building. Goodman s latest development at Gloucester Business Park is a 52,000 sq ft office headquarters pre-let to Horizon Nuclear Power. Planning consent has been obtained and handover is scheduled for Horizon has the opportunity to expand its occupation further to 67,000 sq ft. At Triangle Park in Gloucester, construction is underway on a new 25,000 sq ft commercial vehicle showroom and maintenance facility for Rygor Mercedes Benz, joining Morrisons and Costa Coffee. A 1.88 acre plot with outline planning consent for another motor dealership is available. Meanwhile in Tewkesbury, a pre-let has been secured on a 45,000 sq ft office and production facility for Moog Controls with completion scheduled for Car dealerships act as development catalyst at Exeter s Matford Green Planning consent has been granted for the development of two new car dealerships representing Volkswagen and Toyota Lexus at Matford Green Business Park in Exeter. This leaves just one remaining showroom plot. The 35,000 sq ft VW showroom and workshop and the 24,000 sq ft Toyota Lexus facility will be the first buildings on the Business Park which has planning consent for up to 500,000 sq ft of employment space and 30,000 sq ft for a public house, restaurant and small-scale retail facilities. The Business Park will meet the needs of the substantial employment base of Matford and Marsh Barton and is expected to generate in excess of 2,000 jobs. Noel Stevens of Alder King s Exeter office commented: In the wake of these consents, there has been strong interest in the final plot from other motor trade operators keen to secure high profile opportunities to relocate and upgrade existing dealership facilities. The arrival of VW and Toyota Lexus will create a strong automotive destination and act as a catalyst for the development of the remaining site. Access works are now underway and construction will commence in autumn Contact: nstevens@alderking.com Construction is now complete at Tewkesbury Trade Park, a new six unit trade counter/warehouse scheme totalling 20,000 sq ft, of which 6,000 sq ft has been let to Screwfix. The dwindling supply of quality commercial property has spurred developers into action, continues Rowley. Gloucestershire s economy will benefit hugely from this development pipeline over the coming months. More information on all these schemes is available from Alder King s Gloucester office on Contact: arowley@alderking.com

5 Early Hinkley investment at Bridgwater s Woodlands Court Somerset County Council has acquired the freehold of a 2.6 acre site at Woodlands Court Business Park in Bridgwater for the development of a Low Carbon Energy Innovation & Collaboration Centre. This 31,000 sq ft building will offer offices and workspace for companies involved in the construction of the new Hinkley Point C nuclear power station. The 7 million development, to be built with funding from the European Regional Development Fund and local authority, represents a major investment in the county, creating new jobs and a prominent gateway into the town, says Alder King partner Andrew Maynard who acted for Roselea Properties. This is one of the first clear examples of investment linked to the Hinkley Point development, he says. Together with a number of other transactions completed recently, this high profile announcement confirms Woodlands Court as one of the most active business park locations in Somerset. Earlier this year, Alder King secured Bridgwater s first design and build transaction in five years with a new 34,500 sq ft distribution centre for GeoPost and construction work is now underway on an 18,264 sq ft speculative scheme on an adjacent plot, with three units already in solicitors hands. Remaining units in the new scheme, ranging from 741 sq ft to 1,938 sq ft, are available on a leasehold and freehold basis and will be ready for occupation from spring Contact amaynard@alderking.com Master-planning proposals for flagship Plymouth City Deal plan underway Alder King has been appointed as part of a high profile team by Plymouth City Council to drive forward proposals for unlocking 18 acres of land at South Yard in Devonport Naval Base, Plymouth. The consultancy team is preparing proposals on the redevelopment of South Yard into a Marine Industries Production Campus, providing a focal point for marine employment, research and innovation centres across the South West Peninsula. This could leverage some 110 million of public and private investment, providing potentially 350,000 sq ft of office, high tech and manufacturing employment space and create up to 1,100 new jobs. The team is assessing current and future interest, broader market demand and the technical challenges of the site to underpin a master-plan that maximises the Yard s economic potential while preserving its rich naval heritage. Alder King will coordinate and submit a planning application to Plymouth City Council later this year. If approved, the site will be transferred from the Naval Base to Plymouth City Council in March Dale Evans, partner in Alder King s planning department, said: This is one of the most ambitious regeneration projects in the South West and will give a vital boost to the local economy, with new investment and the creation of much-needed jobs. Alder King s Exeter office is providing development consultancy and agency services. Contact: devans@alderking.com rcollison@alderking.com

6 Empty Rates claims available on refurbished properties Property owners who have paid Empty Rates on a property while it underwent refurbishment in the past four years can now make a backdated claim for a refund. The news follows a recent Court decision by the Upper Tribunal (Lands) which rejected the Valuation Office Agency s claim that a property undergoing refurbishment was in repair and therefore liable for Empty Rates. Business rates partner Alan Morrish said: Rates used to be a really simple tax. When you occupied a property you paid rates and when you did not, you did not. Then the government changed the law and made owners liable for full rates on empty properties. To compound the agony, the Valuation Office Agency (VOA), the government body responsible for rating, has been taking a really hardline stance of late, especially in relation to buildings being refurbished. The net result has been a flood of recent case law as owners undertaking refurbishments rightly seek to mitigate their empty rates bills. The better news is that, in almost every case which has been to Court, the ratepayer has been successful. The latest decision from the Upper Tribunal (Lands) has now opened the doors for property owners to make a claim for overpaid rates for properties which underwent refurbishment as far back as 1st April Contact: amorrish@alderking.com Will 2015 see the return of strategic planning in Bristol City Region? Strategic planning for homes and jobs in the West of England in the past decade has often been beset by unhelpful changes in national policy at critical stages in local policy formulation. First there was the Regional Spatial Strategy (RSS) that sought to establish a sub-regional strategy for the four unitary authorities of Bristol City, BANES, South Gloucestershire and North Somerset. The RSS proposed major urban extensions in the Green Belt to help accommodate 138,000 homes and a similar number of jobs by Of course, the implications were unpopular but as the four UAs began to progress their local plans in response, the Localism agenda appeared. Following the election of the Coalition Government in 2010 and at the height of Localism, Bristol City pursued a much lower strategy for growth, despite clear evidence that the need was much greater. The other three UAs used the adoption of the Bristol Core Strategy as a means of arguing that there is no unmet need from Bristol that they had to accommodate. Regrettably the realisation that Localism was ineffective came too late, and the change in Government stance through the introduction of the NPPF and the duty to cooperate meant little as the other Core Strategies were already sufficiently well advanced through the system. It has resulted in a lack of a co-ordinated approach and an inward-looking focus in each of the UAs that prevents much needed studies (such as a Green Belt review) from taking place. Very few of those RSS urban extension sites have survived the process. There are however reasons to be optimistic. Each of the adopted Core Strategies is dependent on an early review to ensure they are compliant with the NPPF. Bristol City is committed to having its review in place by June A Strategic Housing Market Assessment (SHMA) has been commissioned and the results are expected towards the end of this year. Assuming Bristol City cannot meet all of its needs within its tight administrative boundary, it will have to engage with its neighbours and demonstrate how those needs are being met elsewhere. Much will depend on the results of the SHMA but if the indicators are true then it is entirely possible that those and many other Green Belt sites will be back on the agenda in 2015; maybe a new settlement will be required? We just have to hope there are no further changes to planning policy following next year s General Election to threaten the process again. Contact: sfitton@alderking.com

7 Alder King appointed asset manager to Unite Students commercial portfolio Alder King, which has acted as property manager to Unite Students commercial property portfolio since 2009, has had its role expanded to include asset management services. Alder King now provides the UK s leading student accommodation provider with a full asset management service including property management, lettings, rent reviews and lease renewals, building consultancy and service charge consultancy. Andrew Watson, partner at Alder King, said: We are very pleased to be given the opportunity to provide this enhanced role for Unite Students. We will be working to maximise the income streams and capital values of its commercial assets through a programme of proactive asset management. Unite Students portfolio now extends to 130 retail and leisure units across the UK. Contact: awatson@alderking.com Moonraker Point, Unite Students flagship development in London. Mansford acquires Cardiff s Castle Quarter portfolio Mansford Real Estate, advised by Alder King s Cardiff office, has acquired the Castle Quarter portfolio in Cardiff city centre from Curzon Real Estate for in excess of 20 million. The portfolio includes several Listed Victorian retail arcades with over 140 tenants occupying 160,000 sq ft of retail, leisure, office and residential space. James Nicholas, partner in Alder King s Cardiff office, said: There was huge unrealised potential in this multi-sector, income-producing portfolio. Mansford is now embarking on a programme of intensive asset management to develop, crystallise and extract value. The acquisition adds to Mansford s existing ownership at Millennium Plaza in Cardiff. Contact: jnicholas@alderking.com Birds Lane retail scheme in the bag Alder King has successfully steered a boutique retail scheme in Wales through its development life cycle, culminating in the recent completion of a lease agreement for the last remaining unit. First appointed in 2009, Alder King has worked closely with family firm RS Bird throughout the development of Birds Lane, a food store anchored retail scheme in Cowbridge, west of Cardiff, providing development consultancy, planning, project management and retail agency services. Alder King is retained as managing agent. Alder King has let the final unit to independent café operator Aroma. The coffee shop joins anchor store Waitrose, fashion retailers Fat Face and Rohan and Caffe Nero at Birds Lane located adjacent to Cowbridge High Street. Emma Smith of Alder King s retail agency team said: It is very satisfying to see this boutique development receive such positive validation in the market and achieve full occupancy in spite of the challenging market conditions that have prevailed in the retail sector over the past few years. The scheme has greatly enhanced Cowbridge s retail credentials and has helped to raise both the town s profile and footfall. Contact: esmith@alderking.com

8 Deals digest Lul Association Three office lettings totalling 4,623 sq ft at Units 9, 5 and 6 Castleton Court, St Mellons Business Park in Cardiff to t2 group, RPS and Right at Home. Rowe & Co Cornwall Avon & Wiltshire Mental Health Partnership NHS Trust Freehold sale of a 4,380 sq ft former care home in Swindon s Conservation Area off an asking price of 425,000 for residential redevelopment. Chadwick Holdings New Faces We have made several new appointments recently to strengthen our teams and serve a growing number of new instructions. James Nicholas Partner, Cardiff Lee Lapham Partner, Cardiff Professional Letting of 7,046 sq ft Unit 3 Wyndham Way Retail Centre in Portishead to discount retailer 99p Stores on a new 10 year lease. Private Client Freehold sale of a four acre plot of greenfield land at Bishop Sutton, near Bristol to Barratt Homes for the development of 41 homes. The sale was Investment disposal of the Burger King restaurant at 473 Newport Road in Cardiff to a private investor for 990,000, reflecting a NIY of 7.16%. The property is let to Burger King until 2024 at an annual rent of 75,000. Woodard Corporation Simon Fitton Partner, Bristol Planning Simon Lewis Partner, Cardiff Building Consultancy subject to planning consent. Topland Sale of the former St Margaret s School site in Exeter to Grenadier Estates for an undisclosed sum. The Exeter-based Catherine Norris Bristol Planning William Grant Exeter Professional developer plans to convert the 49,096 sq ft Grade 2 Listed buildings into residential apartments. Deloittes William Acock Exeter Professional Martin Baker Swindon Agency A new leasing strategy at Whitefriars in Bristol city centre has delivered around 26,500 sq ft of lettings since January The property is now 80% occupied following lettings to CLIC Sargent, Research Media, Prysm Group and University Hospitals Bristol NHS Foundation Trust. Buckfast Abbey Trustees Registered and St Michaels Small School Freehold sale of 6,100 sq ft offices at 18 Miller Court, Tewkesbury to Midland Communications to facilitate its continued expansion. Terramond Rebecca Harries Bristol Agency Laurie Marsh Bristol Building Consultancy Unconditional sale of the 7,956 sq ft Grade Sale of 6.47 acres of land at Rockingham 2 Listed St Georges Chapel, Truro to local developer and investor MBT Ltd. Park, Avonmouth to King Lifting and John Wainwright & Co, leaving just one plot of 1.82 acres available. Matthew Burnett Exeter Building Consultancy Lucy Round Bristol Investment Bristol Exeter Taunton Swindon Cardiff Gloucester Truro Follow us on Twitter@AlderKing, LinkedIn & Google+ Ben St Quintin Bristol Residential Development Rose Fox Bristol Planning