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BUILDING FOR THE FUTURE
SKY HIGH AMBITION How Bristol can build a sustainable future for the environment, people and the economy
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Wednesday, April 22, 2015
BUILDING FOR THE FUTURE ● The 66 Queen Square development will be the greenest in Bristol
Being green and ambitious pays dividends Rlylt Zpjohykz
lead director JLL, South West & Wales
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O in the year that Bristol celebrates being European Green Capital how does the city’s office market shape up in terms of sustainability? Bristol has a pretty good track record. Back in 2010, the Environment Agency took 70,000 sq ft at Horizon House in what was then the UK‘s greenest office building boasting, ground source heat, PV solar panels and rainwater collection. Perhaps one might expect this given the nature of the occupier but the letting was a commercial deal which made sense for both developer and tenant. The recession naturally saw a lull in property activity but now Bristol can once again point to market leading sustainable green buildings. 2 Glass Wharf at Temple Quay, the 98,000 sq ft office building, developed by Salmon Harvester is rated very
JLL.CO.UK
● Jeremy Richards, lead director of JLL
good in terms of sustainability. It uses the harbour water in its cooling system and has secured its first tenant in PWC who themselves are driving the sustainability agenda amongst corporate business. However, the most recent and strongest message that sustainability pays is evidenced in the development of 66 Queen Square. The site was purchased by Skanska with the express intention of building Bristol’s greenest building. As a consequence, the historic Queen Anne House has not only been retained but also integrated into the development and long-term energy saving features including photovoltaic panels, LED lighting and water saving fittings have been incorporated. The building is targeting BREEAM excellent and an EPC rating of A. The design and green credentials of 66 Queen Square was a key part of KPMG’s decision to relocate there later this year. It’s no coincidence that both
“ The most recent and strongest message that sustainability pays is evidenced in the development of 66 Queen Square. Skanska and KPMG are lead sponsors of Bristol’s European Green Capital. Equally, the building has recently secured a market leading price and no doubt its future proofed features were a major consideration for the investor. These new office buildings in Bristol are a good showcase but the real challenge for the UK’s property industry is the 98 per cent of older buildings which need to be refurbished or redeveloped. The built environment accounts for
40 per cent of all carbon emissions, success in this area is key if the industry is going to build a more sustainable environment. The conversion of many office buildings into hotels and residential, is important as it retains the embedded energy within the original structure. At JLL, we have recently launched our own sustainability plan – Building for Tomorrow – in line with campaigns such as M&S’s Plan A and Hammerson’s Positive Places. Our aim is to become the most sustainable property consultancy in the UK. We are seeking to build a business that will meet tomorrow’s client needs, staff aspirations, the competitor landscape, and tomorrow’s societal expectations. Building for Tomorrow gives us this platform and helps us all to work together in building a better future. Meanwhile, we are upgrading our own workplace across the UK so we practice what we preach!
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Wednesday, April 22, 2015
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Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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HAT do we mean when we talk about building for the future? It’s a number of things. First, building what we need as a growing economy, the right places to live, work and play. Second is the right infrastructure so we can get to and from those places, easily and without doing too much harm. And finally building in a way that we cherish our environment, be that in terms of bold design, eliminating waste or energy efficiency. If you had to sum it up in one word, it would be sustainable. In Bristol, we are already building for the future. We are building new homes, many in the northern fringe but other areas too. The recent designation of South Bristol as a housing zone should encourage more brown field development for example. We are building new places to work, though not yet enough. New office blocks in Queen Square and Glass Wharf are now up, and the Filwood Green business park is under way, but developers seem to be a little uneasy about starting some of the other big schemes in the planning pipeline. At the same time, through permitted development rights, we’ve been getting rid of some of the more rundown office stock and turning it into more of those all-important homes. Ones in the city centre cutting the need to travel for work. And we are soon to be building places to play. A major expansion of Cribbs Causeway shopping mall is awaiting approval, or otherwise, from planners. The long, long-waited arena looks finally likely to get off the ground thanks to determination from Bristol City Council, mayor George Ferguson and support from the West of England Local Enterprise Partnership. So we’re working on part one. Part two, the infrastructure, is improving too with the electrification of the railway under way and motorway improvements under discussion (more on those overleaf). What about part three? The construction industry has certainly been working hard to change perceptions and its attitudes on the environment. Matthew Heaman, a partner with Hoare Lea and committee member of the Great Western Forum for the Built Environment, admits waste is a big challenge. “Construction waste makes up approximately a third of all waste arising in the UK each year,” he said. “25 million tonnes of construction waste ends up in landfill without any form of recovery or reuse. “Construction projects targeting best practice recycling targets would seek to divert 90 to 95 per cent of
● How the long-awaited Bristol Arena will look
“ Building successful places and making sure all new developments across the city are designed for the needs and aspirations of the people who live there remain key priorities.” Mayor George Ferguson construction waste from landfill. For example, concrete from demolition projects can be crushed and re-used as aggregate under, paving and roads or in the foundations of a new building.” Fellow forum member Lynne Wellington, of construction firm Willmott Dixon, says recycling waste is one good step but the next is not producing it in the first place.
“Waste creation is reduced through a waste strategy process – an innovative, quantifiable system of managing and monitoring waste,” she said. “By holding designing-out-waste workshops and recording waste volumes we understand the source of waste related to every project and therefore target those areas to reduce it.” It’s one element of the 10-point plan the company, which built the new Southmead Hospital, uses on projects. Others include sharing best practice among different firms, cutting carbon emissions on site by steps such as avoiding diesel generators, and reducing water use. The sustainable agenda goes beyond the construction phase. Derek Quinn, executive director at Bristol-based Midas Construction – the firm building the Filwood Green eco business park in Knowle, said: “Clients are increasingly asking us to consider the whole life cost of a building. “Developments like Filwood Green
Business Park really highlight how the market is demanding green, energy-efficient sites that are not only good for the environment but are cheaper to run. “As well as a wetland ecology area, electric vehicle charging points, cycling and walking facilities and the infrastructure for a metrobus, the Filwood project is making full use of modern-day construction techniques. “It is the first ever BREEAM Outstanding development of its type for the whole of the South West and includes a range of automated services to reduce energy, the building will generate 20 per cent of its energy via solar panels which are fitted to 60 per cent of the roof. “Having a thermal-insulated building means that you don’t need to cool it down so much, so there is only a need for air conditioning units in the bathrooms, and the remainder of the building employs natural ventilation. This also reduces CFCs entering the building.
“It’s becoming more common to have systems like this in place in new builds, measures like this require more robust building materials to create the right level of insulation, and that comes at a higher initial cost, but the key to all this is that the energy efficiency savings for the long term are substantial.” Peter Harris, former FBE chairman and regional director of engineers Silcock Dawson, said buildings needed to consider environmental, social and economic sustainability. “A simple demonstration of social sustainability is in the way we lay out buildings,” said Peter. “On the majority of our projects where practically possible we organise the building services with flexible solutions, to suit adjustable internal partitioning layouts. “Minimising defects, routine maintenance and lifetime costs is quite easily achieved by designing out the systems in the first place, passive before active is always our philosophy.” It is hugely positive to see developers aspiring to higher standards because customers demand it. But policymakers still have a role to play. Bristol City Council’s policies aims to keep the city vibrant and that means having good locations for businesses long into the future. That means flexible buildings, equipped with the latest technology and making them energy efficient. It requires 20 per cent of energy in new buildings to come from renewable sources and encourages developers to tap into ‘heating districts’ power and heat supplied to several buildings through underground pipes from a central location. It hopes these will make Bristol more resilient to changes in the energy market. One man who knows something about development from both sides, is Bristol mayor and long-time architect George Ferguson. “It’s really important to promote sustainable development throughout the city, and we are consistently doing more and more work to encourage developers to see the importance and, indeed, economic benefits of helping to build a greener future,” he said. “Building successful places, making sure all new developments across the city are designed for the needs and aspirations of the people who live there – remain key priorities, not just during our year as European Green Capital but far beyond.” It sounds like the policy-makers and developers are, broadly at least, on the same page. Which should be good when it comes to building for the future of Bristol.
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Building a sustainable future for our city
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Wednesday, April 22, 2015
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BUILDING FOR THE FUTURE Bringing us closer to the capital
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FIRST Great Western has been awarded a new franchise to cover a very intense period of change on the railway, and the huge programme of investment currently under way is poised to bring a significant positive boost to commercial and social life of the region when it all goes live in 2017. It may not be bricks and mortar, but these are key improvements being built that will bring the city and the region significantly closer to London. There’s no doubt business travellers will appreciate the 54 additional journeys each day and the shorter journey times that First Great Western has promised between Bristol and London. The extra speed and space the new electric trains, scheduled to be introduced from 2017 will deliver will be welcomed on those journeys too. We can look forward to 20 per cent extra capacity on every train and a journey time that is 17 minutes shorter. At Bristol Parkway, a new multi-storey car park is already relieving parking capacity issues at this busy station, and with rail travel still on the increase, local commuters in the South West can look forward to a 52 per cent rise in the number of services available to them. This is on top of a 10% increase already introduced since 2011. At the heart of this colossal change is the strength of the partnerships that have been forged throughout the Western Route between Local Authorities; Enterprise Partnerships; The West of England partnership; Network Rail and First Great Western. The railway company’s regional development manager, Matthew Banes, says: “These partnerships throughout the route have been working on a sustainable formula for positive change for some years, and will result in addressing many of the key transport infrastructure concerns that underpin the commercial lifeblood of these communities. “Local authorities need to deliver stretching goals in terms of addressing road congestion and making environmental changes which work together to improve the quality of life of those they serve, and the integrated package of positive changes currently being introduced helps them deliver these aspirations in dramatic and inspiring ways. “This is a great example of organisations working together with the common aim of delivering on their promises for the good of all.” It’s good news for Bristol, the commercial heart of the region and European Green Capital 2015. In giving the award, The European Commission recognised Bristol’s success in creating a green city with a high quality of life, and the city’s ability to demonstrate rapid progress; environmental awareness; and a green business culture. Green infrastructure is therefore crucial to the city’s future prosperity. There can be little doubt the regeneration of the railway and all the benefits that it brings will play a significant role in sustaining those values in the years ahead.
HUGE IMPROVEMENTS WILL P Managing director First Great Western
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VER the next few years your railway will change out of all recognition. Much-loved High Speed Trains will disappear to be replaced by brand-new electric trains that will bring more seats and faster journeys. It’s an exciting time to be managing director of First Great Western and I’m really looking forward to getting to grips with the changes that will bring Bristol an extra 45 London services a day and a whole host of great improvements around our region. Our HSTs have been around for as long as I can remember, being introduced after that long, hot summer in 1976. Since then they’ve travelled many millions of miles but it’s now time for them to bow out. Far from being more of the same, their replacements are the latest in train design and Hitachi will be building most of them in Britain. Once they start running in 2017, they’ll be maintained at depots across FGW’s network, including at Stoke Gifford where Hitachi is building new facilities. We call these fantastic new trains Super Express Trains. They can run on electric power using the overhead wires that my Network Rail colleagues are now erecting. They can also run with on-board diesel engines which allows them to serve passengers at stations beyond the wires. But they’re not the only fresh trains. I’m bringing air-conditioned trains to work services out to Avonmouth, Bath, Taunton, Cardiff and Portsmouth in place of today’s four-wheel Pacers – which have never been popular – and Sprinters that date from the mid-1980s. Their replacement Turbo trains are not brand-new but I’m confident they’ll be a step change forward for commuters and local passengers. They’ll bring more seats at peak times to make that journey to work more bearable – a 52 per cent increase for Bristol. With partners, we’re investing £50 million to make stations better and there’s a £2.2 million fund aimed at putting ideas from local communities into action. I can’t wait to see what ideas come forward. I’m looking to help local councils push forward with their MetroWest plans to return passenger trains to Portishead and the Henbury Loop. We’ll continue our support for the TransWilts rail project which has proved so incredibly successful in its first year. More trains running towards Gloucester and Cheltenham from Swindon will provide more seats and more travel opportunities. All these great improvements will help our economy. We’re helping local people reach jobs and services. We’re helping local businesses reach customers – every extra passenger on our trains could mean a car taken off the road,
● One of the new Super Express Trains, coming to Bristol in 2017
“ We’re helping local people reach jobs and services. We’re helping local businesses reach customers – every extra passenger on our trains could mean a car taken off the road, providing space to travel and trade. Mark Hopwood
providing space to travel and trade. We’re already rolling out wifi to help you keep in touch with friends and family. We’ll be bringing 100 extra staff to help you with your journeys. I want to see more trains running on time and have committed in this new deal to delivering that pledge. It will not be an easy task with so much work to do with Network Rail’s £7.5 billion improvement plans and our new trains to introduce. But I have great confidence in my great team of railwaymen and
women. They are the people who work hard day and night to bring you the service you want. The changes coming to your railway are so big that I think our railway’s creator, Isambard Kingdom Brunel, would be proud of the way we’re modernising the railway he built. After all, his railway transformed our part of the world into a vibrant and prosperous area. That’s why I’m deliberately looking back at our great heritage as we move forward to become once more the Great Western Railway.
Wednesday, April 22, 2015
PUT REGION IN FAST LANE
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Potential ready to be unlocked Oh}pu \ovtwzvu
Assistant Editor (Business) gavin.thompson@b-nm.co.uk
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● Mark Hopwood of First Great Western
RISTOL is an attractive proposition for investors. The overheating of both property and talent prices in London is forcing companies to locate further afield. Meanwhile property investors are seeing the potential of good returns and on small investments than they would have to make in the capital. Crucial to Bristol’s appeal is its location and infrastructure. A direct rail link to London, at the cross roads of the M4 and M5 linking South Wales, the South West, West Midlands and, again, London. There’s also land available, albeit out of town, with Avonmouth/Severnside said to be the largest brown field development site in Western Europe. And there’s plenty of development on the cards in the northern fringes of the city, around Filton, Emersons Green and Cribbs Causeway. But while infrastructure has served the area well, it can’t assume the job is done. Current and future investment in infrastructure is vital to unlocking further development. Matt Cross, head of inward investment agency Invest Bristol and Bath, said the electrification of the Great Western Railway to Paddington was already having an impact, and it won’t even be ready for another two years. “That story is a really important one to us,” he said. “It really helps. A lot of the companies we are dealing with are coming out of London. “They need somewhere to continue to grow where they can hire the right level of talent but also can get back into London quickly. “So the electrification of the line making journeys shorter and linking into CrossRail so you can get across London is hugely important.” It’s not just about rail. Matt believes two new motorway junctions would have clear benefits too, a new junction on the M49 – which was awarded funding in the Autumn Statement last year – and another on the M4 close to the Bristol and Bath Science Park in Emersons Green. “Motorway junctions unlock potential,” said Matt. “There is no doubt that Avonmouth and Severnside is constricted because of its access. “While it is an such an amazing location between three motorways, there is only one point of entry to the motorway and that’s through the more congested southern end of the site. “All the huge acreage at the north end of the site has got so much potential for major manufacturers and distribution and the junction would enable us to unlock that. “Similarly at Emersons Green, businesses want to be up and down the M4 quickly and a junction there would see it become a fundamental part of the M4 corridor.” So while Bristol’s road, rail and air links make it a good bet, there’s plenty more untapped potential to come.
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Wednesday, April 22, 2015
BUILDING FOR THE FUTURE
LONG-TERM PLANNING NEEDED TO The demand for new homes continues to grow but supply is falling further behind. Rupert Janisch reports
● One of the major schemes planned, on Filton airfield, includes 2,675 new homes, part of the wider Cribbs Patchway New Neighbourhood, which will deliver around 5,700 new homes.
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T’S widely agreed that a shortage of affordable housing is one of the biggest issues facing our society today. Even though a generation of homeowners have benefited hugely from rising house prices, the point has surely come at which the problems of affordability have outgrown the benefits of price escalation. The housing market in London is still strong, driven partly by foreign buyers driving up prices. But across the rest of the UK, the market is stuttering, as prices fall in some regions and rise slightly in some others. An exception is Bristol, where property agents will tell you that demand is exceptionally high and some have even predicted 24 per cent rises over the next five years. A result is that the housebuilding industry in the city region is being productive, as new developments come to fruition across the area. Gordon Isgrove, senior director at Bilfinger GVA in Bristol, said: “The housing market in the greater Bristol region is performing well; house prices have been rising, development activity increasing – all underpinned by strong demand generated from the strength of our diverse economy in Bristol and decades of under-provision of new housing. “There are a number of large new housing developments across the area that will provide a supply of new homes over the next decade, these include Emerson’s Green and Cribbs Patchway New Neighbourhood and North Yate extension in South Gloucestershire, the former Cadburys factory in Keynsham, the former Bath MoD sites in BANES, Hengrove Park, Central apartment market in Bristol and Locking Parklands, Haywood Village and Parklands in North Somerset.” Despite the new developments, Gordon sounded a note of caution, warning that activity is still short of where it needs to be. He said: “The pace and provision of delivering new homes is still however well below that which is required – suggested figures indicate we need to build around 240,000 new homes in the UK per annum, but in fact we are only building around 120,000 each year. “This is the fundamental problem with our housing market in key economic areas such as Bristol. All of the government initiatives, such as help to buy, have helped improve the housing market to date, but very few of these are addressing the supply of new housing.” It begs the question why this is the case and why political parties have failed to address this over the decades. According to Gordon, it is because building in someone’s neighbourhood is unpopular and not a vote winner. He said: “Planning policy has been changed by different governments
“ The pace and provision of delivering new homes is still well below that which is required – suggested figures indicate we need to build around 240,000 new homes in the UK per annum, but in fact we are only building around 120,000 each year. Gordon Isgrove, senior director at Bilfinger GVA in Bristol
but has failed to allow the market to deliver what is in demand. Until supply of new housing is addressed and increased, which will take years, house prices will remain high and the young will grow up as a generation of renters.” “What is required is a more robust approach by local authorities in allocating more housing sites, as well as being quicker in turning around planning applications – maybe a fast-track system to deliver planning permission for major sites. Local authorities need more resources to deal with major applications to ensure they are dealt with efficiently and expediently. “Government initiatives need to target increasing the supply of housing in the right areas, which could include increasing funding for major
● Demand for houses in Bristol is exceptionally high
urban extensions for the provision of infrastructure. “We also need house builders, developers and the construction industry to step up and increase their output. “The last recession had a devastating impact upon the small-to-medium-size developers, and as a consequence we have lost a significant and important proportion of this market. “The next Government needs to consider how it can help new and small developers grow in order to increase output. There is a great opportunity for housing associations to become more actively involved in direct development – some of them already are – but we need the whole of this sector to be more aggressive in this approach.”
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Wednesday, April 22, 2015
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SOLVE THE HOMES CRISIS “ There is a fundamental problem with our housing market in key economic areas such as Bristol. All of the government initiatives, such as help to buy, have helped improve the housing market to date, but very few of these are addressing the supply of new housing.” Gordon Isgrove, senior director at Bilfinger GVA in Bristol
It seems that Wiltshire “and Gloucestershire are now the Bristol dormitory, with buyers coming from a BS postcode and pushing themselves out within a half hour’s travelling distance of the city.”
James Pyle, James Pyle & Co, Wiltshire
“ We strongly believe that new talent needs to be brought through to address the shortage of skills as development rises to a higher level with a greater number of homes being built year on year.” Keith Simmons, Taylor Wimpey argument in favour of prime greenfield sites to. A notable example is land by Junction 13 of the M5, west of Stonehouse, where residents are gamely battling against development but which, given its prime location close to the settlements of Cheltenham, Gloucester, Stroud and also Bristol, you suspect that market forces may win the day before too long. Indeed the rise of house prices in Bristol is having a knock-on effect for the surrounding areas, too. James Pyle is the owner of independent estate agency James Pyle & Co, based in Malmesbury in Wiltshire but selling property all over the Cotswolds and down into Stroud and the Five Valleys. He said that areas within commuter distance of Bristol are seeing
healthy numbers of sales, even if other areas such as Wiltshire and rural Gloucestershire are struggling. “We used to see people coming out of Reading and the South East who were working in Swindon, and maybe Bristol or Bath,” he said. “So the Junction 17/18 of the M4 area, places like Malmesbury for example, were quite often occupied by couples working in both. “Of late we don’t have a transient population moving into Swindon but it seems that Wiltshire and Gloucestershire are now the Bristol dormitory, with buyers coming from a BS postcode and pushing themselves out within a half hour’s travelling distance of the city. “Anecdotally, I’ve heard from an agent I know in Bristol that
everything is getting sold on sealed bids and often about £20,000 over the asking price. Agents are getting several buyers for every property in Bristol, which seems to be a bit of a hot spot. “So Bristol’s bucking the national trend, whereas the marketplace further out in the more rural areas is a little bit patchy. Given that it’s an election year I wouldn’t expect anything different. Until the election is out of the way then I can’t envisage a return to normality, because people tend to hold their breath before the election happens.” But whatever the short-term politics, it’s clear that we need long-term strategic planning, bold policy makers and a focus on skills and training if we are to build the homes we need for the future.
Quick wins in green drive
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014 was a bumper year for the Bristol office market. Transaction volumes reached levels not seen since before the 2008 financial crisis, and with many firms now looking to expand their floor-space in the city, it looks likely that a number of newcomers will also be establishing themselves over the coming year. Alongside this renewed sense of buoyancy, Bristol is celebrating its year as European Green Capital, resulting in an additional focus on buildings which meet sound environmental credentials. This can include providing healthy working environments for staff, reducing energy costs and carbon emissions, and demonstrating commitment to the sustainability agenda. Sustainability assessments are the most straightforward way of obtaining robust indications of the holistic performance of a potential asset. A BREEAM ‘Excellent’ or ‘Outstanding’ rating will be of particular interest to those firms looking to take on an environmentally sound asset. Refurbishment and re-fits within a building can also provide significant opportunities to improve on sustainability performance. Again, sustainability assessment methods can be used to inform the planning, and the SKA rating system can provide a sound and practical basis to incorporate sustainable features into the fabric and M&E systems. Though sustainability assessments certainly have their uses, arguably the most important – yet often overlooked – issue to consider is operational performance; even the most energy efficient building will perform poorly if operated in an inefficient way. In this context, occupational performance data is crucial. Recent research by the Department of Energy & Climate Change (DECC) indicated that nearly 30 per cent of energy-cost savings which are available through improved efficiency, could be achieved with zero capital expenditure. These findings illustrate clearly that the incorporation of detailed metering and controls can help building operators identify ‘quick wins’ – easy modifications where cost and carbon savings can easily be made. Essentially, the message is this: to look for buildings with high BREEAM or LEED ratings is a solid strategy for finding the most environmentally sound properties. However, occupiers need to be aware that in order to truly benefit from a sustainably designed building, there must be a commitment to ongoing measurement, monitoring and thorough management of energy and resource use in order to fully reap the benefits.
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Housebuilders such as Taylor Wimpey describe the market in the Bristol area as “vibrant”, and cite other factors as holding the industry back. Managing director of the Bristol office, Keith Simmons, said: “We strongly believe that new talent needs to be brought through to address the shortage of skills as development rises to a higher level with a greater number of homes being built year on year.” Such arguments also raise many of the other issues facing the housing market, such as the debate over the use of brownfield sites, which some figures suggest could provide room for up to a million homes around the UK. And it could be that popular opinion is sufficiently swinging to tip the
senior sustainability advisor Colliers International South West
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The ourney continues. We’re proud to have been appointed as custodians of the Great Western Railway for another 3½ years. It allows the hard work of upgrading the network and our services to continue. Together with Network Rail we are in the middle of a £7.5 billion improvement programme. It represents the greatest investment since Isambard ingdom Brunel rst built our railway. ike the great man, our vision is to pump lifeblood into the region once more. How By conducting the biggest eet upgrade in a generation. With bigger, faster, more frequent trains with free on-board Wi-Fi, and an extra 3 million seats per year across the network, by 2018. New Super Express Trains will be introduced from 2017, with 15% more standard class seats. We’re adding 45 services from Bristol to ondon per day, and cutting the ourney time by up to 17 minutes. We will be bringing in bigger, more modern trains from 2016 and adding 52% extra seats to our services in and around Bristol. We’re also investing £50 million in stations with our partners. But our commitment to the region extends beyond the tracks. We’ve created a £2.2 million fund to help lower-income communities. We’re developing a Get Into Railways mentoring programme with the Prince’s Trust. And introducing free travel to interviews for the long-term unemployed. Helping people, supporting communities and improving services. We’ll be working tirelessly for the next 3½ years to build a greater west.
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#GreaterWest Find out what this means for you at firstgreatwestern.co.uk/GreaterWest and on Twitter @FGW