Autumn 2015 > A refreshing look at us, our world and yours in this issue: > Automotive sector drives growth in Exeter > Going green for Green Week > Dramatic growth in Cardiff + more inside
Welcome... Promotions: moving on up to the latest issue of AK Focus in which we share a selection of recent news from across the business. Alder King has delivered a strong performance in the first three quarters of 2015. Our agency and investment teams are busy delivering a high volume of deals large and small on behalf of clients while our consultancy teams are equally active on high profile schemes the length and breadth of the UK. To support this on-going demand for our services, we are making a number of strategic staff appointments and promotions in growth areas of our business, particularly our planning, professional services and building consultancy teams. Another highlight has been our active involvement earlier this year in Business Green Week as part of Bristol s year as European Green Capital more details are included in this issue. We are delighted to announce six promotions from across the business. Planner Matt Halstead and investment specialist Oli Stretton have been appointed partners while Andrew Cullen, Lucy Round, Rebecca Priestley and Ben St Quintin are all promoted to associate. Matt Halstead joined Alder King s planning team in 2008 and specialises in the coordination of major planning applications, including environmental impact assessments and strategic site promotion. His appointment as partner recognises the key role he has played in securing high profile planning consents for clients including the University of Bristol and BAE Systems. Oli Stretton who joined Alder King as a graduate before qualifying as a chartered surveyor in 2003 becomes a partner in the firm s investment team. Oli has over 10 years experience in investment agency and is a key member of the team, having made a significant contribution to new business development. He advises on both investment acquisitions and disposals of commercial property assets for a wide range of clients across the UK. Oli s investment colleague Lucy Round is also promoted to associate in recognition of her significant contribution to the team since joining the firm last year. Ben St Quintin from our residential development land team and the current President of the Bristol Junior Chamber of Commerce is promoted to associate in recognition of his exceptional performance since joining the firm last year. Ben has recently advised the City of Bristol College on the complex sale of Brunel House and also advises major private landowners on the residential development of their land holdings. Rebecca Priestley who joined our property management team in 2011, becomes an associate after assuming increased responsibility for a multi-million pound portfolio of retail, office and industrial properties, including EE s UK network buildings portfolio of switch and data centres. Andrew Cullen who is based in our Swindon office, also becomes an associate. An RICS Registered Valuer, Andrew joined our professional team in 2005, advising clients on valuation, landlord and tenant and business rates issues. He has also developed a speciality in financial viability casework for both developers and local authorities across the UK. His promotion reflects his significant contribution to the firm s development viability service. Above, from left to right: Andrew Cullen, Lucy Round, Martyn Jones, Rebecca Priestley, Oli Stretton, Ben St Quintin and Matt Halstead. Martyn Jones, Alder King s senior partner, said: These individuals, from all disciplines of the business, have worked extremely hard to help deliver what has been a very successful year for the firm and we re delighted to recognise their contribution with these welldeserved promotions. We hope you enjoy this issue of AK Focus and look forward to working with you over the coming months. Martyn Jones Senior partner Automotive sector drives growth at Matford Green A new generation of state of the art car showrooms is taking shape at Matford Green Business Park in Exeter, cementing the city s reputation as a leading automotive hub and kick-starting development on one of its primary development sites. Five prestigious car marques have chosen to relocate from Marsh Barton Trading Estate to Matford Green, Eagle One s 26 acre development which has planning consent for up to 500,000 sq ft of employment space. VW opened a new 35,000 sq ft showroom and workshop in August. Work is underway on a combined 24,000 sq ft Toyota and Lexus dealership for Snows Group which is due to complete at Easter 2016. Marshall Motor Holdings recently submitted a planning application for a 31,000 sq ft Audi dealership and the final four acre plot is now under offer to another high profile dealership. Exeter is home to over 30 car showrooms, representing brands including Ferrari, Maserati, Porsche, Aston Martin, Jaguar, Mercedes-Benz and Land Rover along with mainstream brands like Vauxhall and Volvo. The majority are located on Marsh Barton Trading Estate. Noel Stevens, partner in our Exeter office, says: Exeter s concentration of dealerships attracts customers from across the UK. Forward-thinking dealerships are taking the opportunity to commission state of the art showrooms with larger display areas, modern workshops and extensive car parking facilities. The relocations will generate spin-off opportunities for unrepresented brands and complementary occupiers keen to establish a presence in the city and will stimulate investor interest over the next 12 24 months. With Phase 1 at Matford Green now complete, there is strong demand for Phase 2 where plots and buildings are available on a freehold or leasehold basis. Noel Stevens Contact: nstevens@alderking.com
The growing demand for bespoke student digs Dire predictions that the rise in student tuition fees would result in a fall in the number of applicants for Higher Education have not been borne out, says planning partner Alan Pearce. In fact the latest statistics from UCAS suggest the opposite, with the number of new students in 2014/15 topping half a million for the first time. Speculative industrial development needed to drive economic prosperity The South West and South Wales urgently need greater industrial land allocation and more speculative development in key locations to drive economic prosperity across the region, says Andrew Ridler, industrial partner. Unit 8 at Access 18, Avonmouth under construction and available February 2016 Groundworks underway at Hawke Ridge Business Park, Wiltshire The continued growth in the number of students has led to an accelerating and competitive market for purpose-built student accommodation. New developments are consented or underway in many of the UK s key University cities. Main picture: Howard Gardens, Cardiff Inset: Caradog House, Cardiff After two years of increasing take-up and comparatively little new development, the level of supply across the region is at its lowest level for 10 years, hampering the development of businesses looking to expand or relocate. We re advising on schemes totalling over 4,500 beds. To date this year we ve secured planning consent for 1,300 beds in former office and college buildings in Cardiff but there is still a significant shortfall in the city while in Exeter, the number of student dwellings has doubled over the past five years to 2,975, three quarters of which was purpose-built. Historically student accommodation was provided by the University in the form of Halls of Residence. However with student populations increasing year on year, the shortage in university provision has been taken up by the private residential sector through HMOs. This often leads to community concerns over parking, noise and refuse. The provision of new bespoke student accommodation not only helps alleviate pressure on residential areas but gives universities a key selling point when attracting students. Permitted Development Rights, allowing office to residential conversions, have allowed an increasing number of redundant office buildings to be converted or redeveloped to provide student accommodation which is essentially residential but configured differently. Most planning officers and members are now engaged with this principle and we have seen a shift change at Committee level, from initial resistance to appreciation that new development can meet the continued demand for student accommodation and free up existing housing stock used as HMOs. Alan Pearce Contact: apearce@alderking.com Current Student Residential Planning Projects The Alder King planning team plays an important role in the delivery of planning consents in the student residential sector, with over 10 projects underway in England and Wales and others at an early confidential stage. We have managed planning applications for new build schemes, conversion of existing buildings, variation permissions via NMA and MMA submissions to meet specific client requirements and co-ordinated the discharge of planning conditions/section 106. Most schemes incorporate some commercial uses at ground floor level. CONSENTED SCHEMES BEDS King Square Studios, Bristol Phase 1 301 Froomsgate, Bristol 480 Windsor House, Cardiff 321 Howard Gardens, Cardiff Caradog House, Cardiff 378 Yell House, Reading 395 671 (possibly increasing to 685 via NMA) The current supply/demand imbalance is a hangover from the mid-noughties when industrial property in urban areas was frequently sold for higher value uses, particularly residential and office redevelopment. This has created a vacuum that has really only become apparent now that demand has increased. The case for speculative development is most definitely there. Developers including St Modwen, Summerfield and Roselea Properties have seen almost immediate returns on investment, securing new occupiers on their speculative schemes at Avonmouth, Quedgeley, Wellington, Weston-super-Mare and Bridgwater and achieving increased rental/ capital value levels. At Woodlands Business Park in Bridgwater, 11 out of 14 small light industrial units developed by Roselea have been let or sold since the start of the year and the scheme is still under construction. Summerfield s Westpark 26 scheme at Wellington is seeing similar activity levels. In Wiltshire, family-owned developer HPH Ltd has begun groundworks at its Hawke Ridge Business Park to capitalise on the economy s resurgence. The 35 acre enterprise hub located between Trowbridge and Westbury at the heart of the A350 corridor has planning consent for up to 500,000 sq ft for uses including roadside, storage, distribution, manufacturing, R&D and offices. It is one of very few sites currently being delivered in Southern England that can accommodate a major national or international relocation for a large space user. The industrial market is undergoing rapid change, says Ridler, and is being driven by dramatic changes in the retail market and the response of the logistics sector. We need to be able to respond to this with strategically located, flexible accommodation that can meet the requirements of diverse occupiers. Developers should be encouraged by the experience of others and speed up plans for new industrial development in sites with good accessibility, for example on Bristol s northern fringe and at junctions along the M4/M5 motorways. New prime stock will release second-hand space, creating a ripple effect in the market. However timing is of the essence to capitalise on the current market cycle. Andrew Ridler Contact: aridler@alderking.com
Business Rates: Back to the Future Dramatic growth of our Cardiff office From left to right: Owen Young James Nicholas Rhydian Sandbrook Lee Lapham Helen James Nicole Kruger and Simon Lewis It is back to the future on business rates, after the Chancellor George Osborne announced a major overhaul of the business rates system, the largest single change to local government finance in over 25 years. In future the entire 26 billion raised annually from business rates will be devolved to local councils. The current system, established in 1990, is based on local councils collecting business rates on behalf of Whitehall. The cash is then redistributed in grants to town halls around the country. This system is now to be abolished, along with the uniform business rate which imposes a single tax rate on every council. In future, councils will be allowed to keep every penny raised in business rates and set their own tax rate. The theory is that as councils become more efficient and competitive, business rates could be much lower in say Swindon than they are in Gloucester. There is a real incentive for local authorities to attract business as the extra revenue will help fund essential council services. Elected mayors in cities like Bristol and London will also be allowed to add a premium to fund major infrastructure projects. Whilst all of this seems laudable, there is a sting in the tail. The original system was set up to prevent small local councils being exposed to a severe downturn in rates revenue if a single large employer closed, for example a nuclear power station in a small rural council area. Those with long memories will remember Derek Hatton and the eye-wateringly high business rates set on Merseyside. At present councils are more or less certain of their rates income from year to year. This proposed change has not just moved the goal posts, they have been packed up and taken home. Revised CDM Regulations now in effect Following a lengthy consultation by the HSE, the new Construction (Design and Management) Regulations 2015 came into effect on 6 April, with the transition date ending on 6 October. The changes are significant for consultants, contractors and clients on commercial schemes but now also relate to domestic works involving more than one contractor. As well as the extended scope of projects covered by the Regulations, the roles have also been changed. Most importantly, the CDM Coordinator function is now replaced by the Principal Designer who is appointed by the client. The Principal Designer oversees a scheme to address health and safety concerns. There are also modifications to client responsibilities including the sharing of relevant information between all parties. We have provided CDM Coordinator/PD services for projects up to 25 million and can advise on the responsibilities of the Principal Designer to ensure clients and their design teams are compliant with the new regulations. James Jacobs Looking forward, local councils will inevitability look to maximise rates revenue. Property owners are an obvious target. I fear two things: firstly those who own vacant property will see their rates liability increase as the current reliefs available are removed; and secondly, it is possible landlords will be required to pay an additional rates contribution on let property. We have gone full circle. My copy of the Local Government Finance Act 1988, which brought in the poll tax and the uniform business rate, will soon be in the recycling bin for collection by the local council. Alan Morrish Contact: amorrish@alderking.com Contact: jjacobs@alderking.com CDM REGULATIONS WORKSHOPS Alder King is hosting a programme of CDM Regulations 2015 workshops. To register interest, please contact James on 01392 353080 or by email. Our Cardiff office has undergone a major programme of expansion over the past 18 months, making five senior appointments to further strengthen its service offering to Welsh businesses. Partner James Nicholas was the first to join in 2014 providing high level strategic advice across a wide range of disciplines including asset management, investment, agency and lease advisory, as well as business generation. Valuation specialist Lee Lapham joined as partner in September 2014 to head up Alder King s professional team. He subsequently brought in his former valuation colleague Helen James as an associate. Simon Lewis was appointed as partner in October 2014 to lead and develop our building consultancy team in Cardiff. He has now been joined by senior building surveyor Rhydian Sandbrook. Going green in Bristol Alder King showed its support for Bristol s year as European Green Capital by taking part in Business Green Week in June. Each day of Business Green Week focused on a different theme with the aim of encouraging businesses to adopt greener business practices and create a legacy beyond the week and 2015. Partner Chris Haworth, who led our Green Team, says: We held a variety of themed initiatives and events through the week designed Contact: chaworth@alderking.com Owen Young, partner and head of Alder King in Cardiff said: We set out 18 months ago to invest in new high level talent to support the growth of our Cardiff office and I m delighted with the calibre of the team we have built. We are already seeing the benefits of this investment with exciting new instructions from clients on both sides of the water. Alder King s Cardiff office provides multi-disciplinary property services to private and public sector clients including agency, investment and development consultancy, building consultancy services, planning and professional services including valuation and lease advisory. to get people engaging with sustainable issues, from travel to well-being, as well as having some fun. Activities included an environmental film screening, planting bee-friendly plants at our Bristol head office, launching our electric bike programme, and a Big Green Picnic in a local park, complete with a hula hooping workshop! We will continue to look at how we can reduce our impact on the environment to create the legacy that the Green Capital initiative aims to inspire. Chris Haworth
Deals digest Planning consents Gloucester City Council Bristol Grammar School Sale of 2.3 acre former Blackbridge Allotments site in Gloucester to New Dawn Homes. The deal includes the provision of new allotments and defined contributions to local education and play areas. PARTNERS OF LYONS DAVIDSON Planning consent for a new Performing Arts Centre, including a new build theatre and the refurbishment of existing buildings to provide an outstanding new integrated facility for music, drama and dance. plymouth City council/aecom Investment sale of 43 Queen Square, an office building on Bristol s historic Queen Square. Single let to Lyons Davidson Solicitors on a 20 year lease. Sold to CBRE GI for 4.9 million, 6.32% NIY. HALBADIER LTD Planning and Listed Building Consent for a Marine Industries Production Campus (mixed use employment) on 7.46 ha of land at South Yard, Devonport. Alder King has been retained to advise on the implementation phase. Square Bay Following refurbishment project managed by our building consultancy team, the letting of 22,509 sq ft at Nibley Court, Westerleigh Business Park in Yate to a Bristol financial company, is Bristol s largest office letting of 2015 to date. PRIVATE CLIENT Planning permission via appeal for 58 new dwellings on the former Royal High Junior School campus in Bath s conservation area. British Solar Renewables 7,572 sq ft industrial letting of Unit N1 The Levels Business Park, part of Capital Business Park in Cardiff, to Cardiff Sports Nutrition. This follows two other lettings earlier this year at The Levels totalling 12,598 sq ft. Planning permission for a 9MW solar park at Southern Counties Shooting Ground, Dorset on a part park/greenfield AONB site overcoming Sport England objections. New faces tom chapple building consultancy bristol Jack Appleton Planning Bristol Rhydian Sandbrook Building ConsultancY Cardiff Chris Barraclough Professional Taunton/Exeter Bristol 0117 317 1000 Exeter 01392 353080 Swindon 01793 615477 Truro 01872 222174 Cardiff 029 2022 0000 Gloucester 01452 623290 Taunton 01823 444879 www.alderking.com Follow us on: