We are continuing to meet the difficult market head on and our diversity and flexibility has opened up a number of opportunities since the last issue of the magazine. We are delighted to report that our expansion plans have seen us appointed as land agents to Thame Farmers Auction Mart in Oxfordshire, and our new offices in Newark have seen us set down further roots to expand in this area. To further enhance our proactive business strategy, we have appointed a new chairman, Barry Gamble, a former director of the national agricultural department at Grant Thornton and a former chairman of Fountains plc. John Pitts is also now fulfilling his role as senior partner. After nine successful years, David Legh has handed over these appointments while continuing as a partner in the firm. Our traditional estate management and pipeline and utility sectors remain strong and our efforts in promoting the many types of renewable energy available to landowners has seen us become involved in many new exciting projects. Financing such schemes can be complicated but rewarding and, as such, we have formed a strategic partnership with Harry Bond and James Russell of Tamar Energy who can help secure financing for anaerobic digestion (AD) projects. See page 28 for more information. The magazine also focuses on our pipeline and utility teams, explaining the many projects they are involved in and highlighting the benefits of an agent who understands the challenges in this industry, both from a landowner and corporate perspective. Finally, on page 10, we welcome Stuart Flint who is heading up our residential property agency. Stuart joins us from Knight Frank. We hope you find this issue of interest and would be very pleased to hear your views.
Henry Sale & Andrew Jackson, managing partners
Fisher GERMAN Magazine
news&views Diversification
A complete range of services for all our clients needs: 32 farm consultancy 33 valuations 34 private land sales 35 agricultural occupancy
Fisher German has recently been advising SphereMania Ltd, a franchised adventure sport company that has been offering Sphereing experiences at 11 sites throughout the UK for over a decade. Sphereing is a relatively new phenomenon that involves being harnessed inside an inflatable ball before being pushed down a hill for an amazing and energising adventure. The firm has already undertaken various projects with SphereMania. One such assignment involved James Rybij, who owns its Nottingham franchise, and his father Richard Rybij, a keen investor in land, who approached Fisher German for assistance with the purchase of Westwood, an agricultural site in Nottinghamshire. Richard planned to use the land principally for agricultural purposes, allowing James to rent part of the site for six months of the year to operate the SphereMania Nottingham franchise which, at 300m, is the longest Sphereing site in Europe. After the initial purchase, Richard engaged with the firm for professional advice to obtain retrospective planning permission, after the local authority concerned began to apply pressure (under the General Permitted Development Order 1995, a temporary
use of open land can operate for up to 28 days without prior planning consent). “We handled the case from cradle to grave,” explains David Merton of Fisher German. Richard adds: “I have been in business for 35 years, during which time I have dealt with many companies. Fisher German is one of the most professional organisations I’ve ever come across. “As an investor, I will be meeting with them again and, from my son’s perspective, SphereMania Nottingham will use them whenever it needs professional advice.” The firm has since obtained instruction with regard to retrospective planning permission for a site in Bourtonon-the-Water and hopes to play a similar role with a new site in south Wales. SphereMania franchisor, Robert Price, says: “I am really happy with the service Fisher German has provided and look forward to working with them on future ventures – whether it’s planning issues, looking for new sites or purchasing land.” As an example of land diversification the ventures are very successful – creating around 25 local jobs during the summer period at each site and boosting the revenue of local tearooms and public houses. “SphereMania is great fun and a fantastic life balance,” adds Robert.
The Fisher German magazine is intended to be an informative guide. It should not be relied on as giving all advice needed to make decisions. Fisher German LLP has tried to secure accuracy and cannot accept liability for errors, fact or opinion. Fisher German magazine is published by Abstract Associates. www.abstractassociates.co.uk
For further information contact David Merton on 01530 410806. To learn more about Sphereing, visit www.spheremania.com
Fisher GERMAN Magazine
news&views building consultancy
New venture Bluebells Dairy is a fantastic example of converting redundant farm buildings Fisher German’s Building Consultancy team has recently completed the management of construction works at Bluebells Dairy. The Dairy is a new venture for Brunswood Farm, a tenanted farm on the Locko Park Estate, Derbyshire, and involved the conversion of a redundant farm building into a farm shop, restaurant and ice cream parlour. Following its successful application to the East Midlands Development Agency (EMDA), Bluebells Dairy received a £144,000 Rural Development Programme for England For further information please contact Andrew Bridge on 01530 410828
The scheme has secured the future of the farm’s livestock” grant towards the cost of the scheme, which has secured the future of the farm’s livestock. The site also includes a petting zoo and a play area. EMDA has been advised by the Department for Environment, Food and Rural Affairs that in the next five years, £12 million of its regional funding allowance should be made available to East Midlands-based livestock businesses like Bluebells.
Fisher German produced a series of proposals to suit the client’s requirements and to satisfy the conditions of the grant. Following the design stage, the works were tendered to obtain competitive costs, and a contract let between the client and a contractor ensuring cost control and quality management. The project was completed on time and to budget.
pipelines and utilities
A new Geo Fibre Optic Network contract will meet 2012 industry targets Fisher German recently won the contract for third-party enquiries and property management of the Geo Fibre Optic Network, owned by Geo Networks Limited. The firm has been working with the network since the instalment of cabling in 2001 when it was involved with the referencing and routing of the network. The network is unusual as it
Fisher GERMAN Magazine
is mainly located in farmland. “The largest section is referred to as the ‘backbone’ as it has loops that run through England and Scotland,” explains Andrew Bridge. “This network, with others, will be integral in meeting the industry targets of providing broadband to all UK residents by 2012.” The contract also involves looking after the network’s above-ground installations
and facilities, to ensure the safe running of the networks and the management of the leases and rents of the properties. Fisher German has been dealing with utilities since the 1930s and has been involved in the management of linear apparatus since the early 1980s. Andrew says that damage awareness is vital in this type of project. “Damaging cables or pipes may have significant ramifications. To protect against this, liaison with landowners is crucial. In addition, we use numerous other tools, such as Linesearch, our online utility search website, which has had a significant effect in raising damage awareness.”
news&views
For further information please contact Richard Benson on 01530 410825 or email richard.benson@fishergerman.co.uk
pipelines and utilities
There has never been a better time to get involved with Linesearch
For further information please contact Clare Phillipson on 01530 410813
Linesearch, Fisher German’s online utility search website, welcomes FibreSpeed (a high-performance optical fibre network in North Wales), as the third new member to join the site this year. The site now has approximately 25,000km of infrastructure and receives more than 60,000 enquiries each month. Linesearch is a single point of contact for all infrastructure owners/ operators potentially affected by proposed works, and allows users to enter a search from just 25 metres up to an area of 5,000 metres. Linesearch is free of charge to users and can be a crucial tool for companies who must ensure that health
and safety guidelines are followed in detail. Linesearch is also of great environmental benefit, as it helps to streamline the process of the installation or maintainance of pipes and complements ISO environmental management. Clare Phillipson of Fisher German says that the site has grown dramatically since it was first introduced and is intended to form the basis for a single point of contact for its members. “We aim, through Linesearch, to make it as quick and easy as possible for third parties to establish if their proposed works affect any of our members’ apparatus,” she explains.
Fisher GERMAN Magazine
news&views professional
Early professional advice is crucial for anyone affected by compulsory purchase schemes
For further information please contact Richard Scriven on 01636 642505 or email richard.scriven@fishergerman.co.uk
utilities
The increasing volume of traffic in the UK has led the Government to implement numerous road improvement schemes. But while they improve the road network, they have a significant impact on farmers, landowners and rural businesses. Land is usually acquired through compulsory purchase; it is therefore crucial for landowners to have an experienced professional negotiating on their behalf. Fisher German has carried out extensive work in this area. The firm is currently acting for over 40 landowners on the A46 Widmerpool to Farndon road improvement in Leicester and Nottinghamshire. The compulsory acquisition of farmland leads to a number of issues including single farm payment claims, environmental schemes and single payment
entitlements. Therefore, early professional advice and advance planning are essential to minimise any tax implications. The negotiation and settlement of claims can take years and, while legislation provides for interest to be accrued until the settlement of a claim, the Highway Authority rate of interest, set according to the Bank of England base rate, is currently nil. Therefore with the lack of accruing interest, those affected should consider advance payments. Compensation may also be available to those who have not directly lost land but have suffered consequences through matters such as noise, fumes or lighting. Again, early professional advice is essential to document the pre-scheme levels as a baseline for future negotiations.
Tittesworth Water, Staffordshire © Severn Trent Water
Fisher German awarded major Severn Trent Water contract in North West region Severn Trent Water, the Midlands based water and sewerage company, has awarded a major new land and planning contract to Fisher German. The new contract will run for a minimum of three years and involves the delivery of all Severn Trent Water’s land assembly and planning work for the AMP 5 capital works programme for its North West region. The Staffordshire, Shropshire, Cheshire, Black
Fisher GERMAN Magazine
Country and Wales areas will be covered and looked after by the Stafford and Ashby offices. George Simpson, who is leading the Fisher German team, says that the firm has invested months of hard work in tendering for the job and is delighted at being awarded the contract: “We are very much looking forward to working with Severn Trent Water to deliver everything we have promised them.”
For more information, contact George Simpson on 01785 273995 or email george.simpson@fishergerman.co.uk
news&views company news
Fisher German has been appointed as land agent to Thame Farmers Auction Mart (TFAM), one of the country’s most successful livestock markets. The firm will offer professional, property sales and associated land agency advice to TFAM clients and contacts, at its
Fisher German has opened a new office in Newark, Nottinghamshire. Following the acquisition of John Hopkinson & Co in 2008, the move to larger, state of the art offices is another step in the firm’s expansion plans. “The business has moved from its premises in Alverton in the heart of the Vale of Belvoir to a new high specification office development at Fernwood on the south side of Newark. “Newark, a town strategically located on the A1 and the main east coast rail line, has been awarded the growth point status. Add the dualling of the A46 south from Newark and this makes an ideal location for the firm to
Thame Farmers Auction Mart harnesses property and land management skills new Thame office at the market. Advice will be available on a wide range of matters including single
payment scheme issues, valuations, planning and development and green energy initiatives to the Buckinghamshire,
Expansion plans in ideal new location
Pictured left to right are: Robert Hurst, Dawn Webb, Richard Scriven, James Goodson, Tricia Townson and Mark Chandler
Oxfordshire, Bedfordshire and Hertfordshire farming communities. The firm’s diverse range of services, local knowledge and committed and professional approach to rural business issues and opportunities were key factors in the appointment. Stephen Rutledge, responsible for overseeing the arrangement, says: “My team has enjoyed meeting everyone at the Thame and Foscote markets and is looking forward to helping and advising the farming and landowning community in the region on a diverse range of subjects.” Brian Lloyd, Chairman of Thame Farmers Auction Mart, adds: “After a thorough tender process we decided to appoint Fisher German as we feel they are best placed to deliver what our clients need. They also offer progressive thinking about how we can adapt to the ever changing agricultural marketplace.” For more information, contact Stephen Rutledge on 01295 226292 or email stephen.rutledge@ fishergerman.co.uk
expand into Nottinghamshire, Lincolnshire, Derbyshire and South Yorkshire,” explains Richard Scriven, office partner. Part of the planned expansion was the appointment of Robert Hurst earlier this summer as a partner. Robert was formerly a director of Savills in Lincoln and is highly experienced in valuing and land agency work. Robert says: “We are delighted to be in the new office as we see Newark as an ideal location to serve our existing clients and expand our offering to the rural property sector within this region.” If you would like to speak to the team about any land matter, contact 01636 642500.
Fisher GERMAN Magazine
news&views
Fisher GERMAN Magazine
news&views
Business owners should engage in professional advice pending the Valuation Office Agency’s business rate revaluation By the time you read this article you should have received notification from the Valuation Office Agency (VOA) that your business’s rateable value may be increased with effect from 1 April 2010. The valuation will be based on values as at 1 April 2008 and will affect tenants, owner occupiers and landlords of commercial property including barn conversions, wind farms, telecommunication sites and other non-exempt commercial property. The Government will be announcing the business rate multiplier in due course, which is likely to reduce from the current rate if, as anticipated, the rateable values increase. A further factor to take into consideration is the effect of the depression on property values as a result of the ‘credit crunch’. Although this manifested itself in August 2007, the adverse effect on property values
For more information contact John Pitts on 01530 410810 or email john.pitts@ fishergerman.co.uk
It will not be possible to apply percentage increases across the board” was not felt until after this date. It is possible that, for some sectors of the property market, values may have fallen since the date of the last revaluation (April 2005, based on values in April 2003), although most are likely to increase. But the question is by how much? It will not be possible to apply percentage increases on property sectors or locations across the board. Therefore, the results may be quite interesting. We strongly advise tenants, landlords and owner-occupiers
to engage a firm of professionally qualified chartered surveyors who are experienced in rating matters to provide advice under the Royal Institution of Chartered Surveyors Code of Practice for Rating. This ensures the highest professional standards. Beware of firms canvassing their services who propose to offer advice on reducing your rates if they are not professionally qualified. The VOA will notify businesses of their new assessments and they will also be available online. For more information visit: www.voa.gov.uk.
For further information and a copy of the RICS Code of Practice contact John Royle on 01744 458841 or email john.royle@fishergerman.co.uk
Common sense has finally prevailed after new legislation was brought in following the controversial case of Mason v Boscawen. The original decision in Mason v Boscawen suggested that changes to VAT rates should amount to a rent review, which caused great concern to landlords, farmers, agents
and advisors. The new legislation, which normalises the position of rent reviews and notices and leaves them how they were before the case, has come as a great relief to those in the agricultural world. Most people felt that the implications from the original decision were probably ‘not right’.
Fisher GERMAN Magazine
property showcase Residential agency
Exciting expansion plans for 2010 and a new head of residential agency will ensure Fisher German clients receive an even better service
A
t last, some encouraging signs in the UK housing market following an almost unprecedented period of contraction thanks to the ‘credit crunch’. Autumn activity levels are encouraging and confidence in the domestic economy is improving. This therefore seems the perfect time for Fisher German to develop its residential agency services with an ambitious expansion plan that will be implemented from January 2010. Generally, the public perception is that the market is ‘at the bottom’ and there is an eagerness to resume house buying and selling following a sustained period where transactional volume has been below 50% of normal levels. This increase in confidence is clearly identifiable but the fortunes of next year will depend upon the liquidity in the mortgage market. With inflationary pressures remaining subdued, the UK base rate has been at a record low of 0.5% for much of the year. The rise in mortgage volumes has started to feed through to transactions and, as confidence grows, stock levels should rise significantly from the poor supply of 2009. Fisher German is predicting a much more dynamic market in 2010. However, house prices are likely to remain static except for ‘prime’ properties in each sector which are likely to once again stimulate competitive bidding. Potential vendors should ensure early pre-sale advice, either now or early in the new year, to ensure optimum preparation for marketing. The firm’s experience in the residential sector means that it is perfectly placed to capitalise on a strengthening market and an exciting business plan is in place to significantly expand the residential agency departments throughout the network. To lead the expansion plan, Stuart Flint has joined Fisher German as a partner and head of residential agency. Stuart spent 19 years at Knight Frank working in various parts of the UK and brings a wealth of agency experience to the firm. Commenting on the recent appointment, Henry Sale, joint managing partner, says: “Stuart will bring to Fisher German the national leadership the firm requires to take the residential agency side of the business to the next level.” Stuart Flint adds: “Fisher German has a very strong brand and is highly regarded in many fields. The agency department is capable of significant growth and we intend to build a market leading network of offices based on the high quality services in place and the professional reputation the firm has long established.” The firm is recruiting key staff in a number of locations and numerous initiatives are underway to transform the agency business. Fisher German will continue to specialise in the sale of rural and village property from agricultural land disposals to extensive commercial farms, and from period cottages to substantial country houses and estates. For further information, or to be put in touch with your local office’s expert team, please contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk
10 Fisher GERMAN Magazine
The residential agency department is capable of significant growth� Stuart Flint, Fisher German
Fisher GERMAN Magazine 11
property showcase
Prices have stabilised quickly and trading has started again” Stuart Flint, Fisher German
manor farm, gaydon
Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.
£2,200,000
The Old School House. Guide price of £420,000
12 Fisher GERMAN Magazine
Contact: Banbury office The Grange, Thorpe Satchville, Guide price of £695,000. Telephone: 01295 271 555
Email: banbury@fishergerman.co.uk
property showcase The Old Vicarage, Cold Ashby. Guide price of £950,000
The Manor House. Guide price of £1,250,000
Rural residential
A place in the country
Stuart Flint notes an air of confidence in the residential trading market
T
Hythe House. Guide price of £650,000
he difference between the autumn of this year and that of last year has been remarkable in the country house market. Last year activity was very slow, confidence was low and prices reduced quickly. From the peak of the market, which was approximately May 2007, prices have reduced in the Midlands area by between 15% and 25%. However, the market has taken on board the new conditions, prices have stabilised quickly and trading has started again. England has certainly been more fortunate than Ireland where the market has nearly halved and trading remains incredibly tough. Fisher German specialises in country property and has a good selection currently on the market. The Banbury office recently brought to market the Manor House at Everdon. The stone Manor House has a mature and picturesque lake that overlooks the celebrated village cricket ground with views to the rolling countryside beyond. The property has three reception rooms, three bathrooms and a tennis court. Everdon is a very popular and attractive village convenient for the M1 (junction 16 is just seven miles away) and the M40 for Rugby and Towcester. Offers are invited in the region of £1,250,000. Not far to the east of Everdon lies The Old Vicarage at Cold Ashby, on sale at a guide price of £950,000. The property is a Grade II listed building which mainly dates from the Victorian times. A very attractive family kitchen with Aga has been added by the present family and the vicarage now has three reception rooms, five bedrooms and three bathrooms. The Old Bakehouse with thatched roof is outside and includes an office, bedroom and utility room. The property stands in two acres, with lovely gardens and a paddock together with planning permission for stables. Another listed property, Hythe House in Lutterworth, is for sale through the Market Harborough office. Hythe House, with a guide manor farm, gaydon price of £650,000, Sustrud is one ofmin thehenis mostdelenim attractive and largest houses dunt la faci tin velesse in Lutterworth. The house has a beautiful to seven nissenis nulputat, quametstaircase, wisi. Eliminup henis bedrooms, variousdelenim outbuildings and lovely gardens. dunt la faci tin velesse nissenis nulputat, The Old Schoolhouse Waterhouses in the Staffordshire quametinwisi. Moorlands is offered to the market by the the features: Reception hall;Stafford drawingoffice. room;On morning southern border ofroom; the Peak District, the garden has a stunning dining room; billiard room; family kitchen; deck area that overlooks River Hamps. The accommodation cellars; the domestic offices; superb master suite; 5is bedrooms (2 would with bathrooms); firstlooking floor flexible with up tofurther four bedrooms and suit someone reception room;not 2 further bathrooms; delightful for an unusual home that, while too remote, is ideally situated formal informal for outdoor pursuits. Theand property hasgardens. a guide price of £420,000.
£2,200,000
Contact: Banbury office For more information contact Stuart Flint on 07501 720422 Telephone: 01295 271 555 or email stuart.flint@fishergerman.co.uk
Email: banbury@fishergerman.co.uk
Fisher GERMAN Magazine 13
property showcase
Many homes in the equine category do not ‘tick all the boxes’ so purchasers will have to compromise on some aspects” Robert Russell, Fisher German
Equestrian property
Tracking up Robert Russell says that the equestrian property market is still in good shape
T
he generalisation that the property market has slumped in the past two years is not totally true. Certainly, the residential market has seen prices drop by up to 25%, but it is now regaining momentum. The development market has been hit hardest with very little trade occurring in late 2007 and the whole of 2008. It is difficult to comment on prices without transactions, but some believe that prices dropped by as much as 50%. However, there are signs of a recovery and interest in new opportunities is gaining ground. So, how has equestrian property fared in this recession? Robert Russell, head of the equestrian department, has taken soundings across a wide spectrum including livery yards, riding schools, point-to-point trainers, national hunt and flat trainers, eventers and equine organisations. All have been surprisingly positive about the market, confirming that the recession has had little effect on the number of horses in their yards and that few owners have withdrawn. A high percentage have increased the
14 Fisher GERMAN Magazine
quality of the services provided and all mentioned that they were, and need to be seen to be, cutting costs and offering value for money. The eventing and racing worlds seem to have remained buoyant and certainly the best horses are still selling at near 2007 prices. There is strong demand for “turn key” animals, ie, fully trained event horses and proven racehorses that can immediately deliver success for the new owners. The position with young horses is very different and these are selling at approximately half the previous price. One steeplechaser trainer told Robert that he had sold more horses in August this year than he had in the previous two years. So, many in the equestrian world are in a confident mood and believe there is a bright future. This confidence is a vital ingredient for a healthy property market. Many buyers have been sitting on the fence but in recent months have decided that the market has changed and now is the time to manor farm, gaydon buy. South View Farm at Wigginton came to the market in October Sustrud min henis delenim dunt la faci tin velesse 2008 with about 20 acres, 10 loose horse nissenis nulputat,boxes, quamet wisi.walker Elimin and henislunging arena. After a quiet start, interest fromtin equestrian buyersnulputat, was delenim dunt la faci velesse nissenis stimulated this summer and it is now sold. More recently, a stone quamet wisi. house in Oxfordshire with a Reception range of outbuildings androom; aboutmorning 18 features: hall; drawing acres was offered in three lots. After plusroom; viewings, 25kitchen; offers room; dining room;100 billiard family were received. This clearlydomestic illustrates the current cellars; offices; superbpent-up master demand. suite; 5 further bedrooms (2 withcompetition bathrooms);will firstremain floor With few properties coming to the market, reception room; taking 2 further bathrooms; delightful strong. Private auctions are again place with a number of formal informal gardens. purchasers chasing primeand property.
£2,200,000
Contact: Banbury office For futher information please contact Robert Russell on 01295 226284 or email robert.russell@fishergerman.co.uk Telephone: 01295 271 555
Email: banbury@fishergerman.co.uk
property showcase Barrowcliffe Farm. Guide price of £1,850,000
Set in the centre of Quorn country, in Queniborough, Leicestershire, Barrowcliffe Farm is being offered by Fisher German’s Market Harborough office with 74 acres and excellent equestrian facilities. The farmhouse has three reception rooms and four bedrooms while externally there are 10 stables, four crew yards, an indoor walker, a large barn and other storage workshop areas, together with a manège. Villa Farm. Guide price of £975,000
One equestrian property attracted 100 viewings and 25 offers” Robert Russell, Fisher German
The expert view
“The racing world is very positive and strong, and the cycle is relatively long at three to five years, which assists the immediate effect of any downturn,” explains Nick Cheyne, Client Relations Director of Weatherbys. “The number of horses sold in training and declaring is down as you would expect for the peak figures of 2007, but not as much as many feared.” Kim Bailey, National Hunt trainer adds: “The jump world has been very resilient in the face of the current economic downturn. This has surprised many in the business.” Mike Etherington-Smith, Chief Executive of British Eventing, comments: “The top end of the sport is very perky and the lower levels, after a bit of a lull in the middle of the year perhaps due to not having had the cancellations as we have had in the last two years, have picked up again and are looking very buoyant. Although our membership and registrations are very slightly down this year, the number of people using day tickets, and the total number of starters across the sport, has increased which is a fine sign for the future.”
Villa Farm near Nantwich in Cheshire is being offered for sale by Fisher German’s Knutsford office. It comprises a farmhouse with a range of outbuildings that include three cottages, equestrian facilities, internal stables, a manège and paddocks. School Farm. Guide price of £450,000 to £500,000
manor farm, gaydon
Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.
School Farm in Cropredy, Oxfordshire, a farmhouse with £2,200,000 outbuildings andContact: 15 acres, was one of office 15 lots offered at a highly Banbury successful Fisher German auction. Over people attended Telephone: 01295 271300 555 with School FarmEmail: exceeding the guide figures. banbury@fishergerman.co.uk
Fisher GERMAN Magazine 15
property showcase Meadow Farm, Blackthorn. Guide price of £850,000
Agricultural property
A steady trade
Some recent sales have been rather more buoyant, but with feed wheat back below £100/tonne, it’s difficult to see strong price rises
A
t the beginning of the year Fisher German stated that 2009 might see a fairly ‘stable market’ for agricultural property. So far this prognosis has been about right, but the last month or two have seen signs of something more buoyant than ‘stable’. The RICS Rural Land Market Survey for the half year to the end of June reported a fall of 1% for arable land prices, 2% for pasture land prices and 7.5% for all farmland transactions including residential farms. A fall of 7.5% is difficult to accept and with a limited number of transactions these statistics are always subject to question. The market has been the subject of very little change indeed in the first six months of the year. Since then, in July and August, the market has felt a little stronger. Some sale
Fisher German is sticking with the prediction of a steady market for 2009” Charles Haselwood, Fisher German
prices, particularly of decent complete farms, have begun to look strong, while a few properties continue to struggle to find serious interest. In a very bullish market the poorer properties seem to make more than they should in relation to the better properties. Perhaps the divergence which is a feature of the present market confirms a steady market. The RICS headline was hobby farmers retreat while commercial farmers bounce back. The relationship between farmer buyers and lifestyle buyers has been a headline issue on a number of occasions in recent years. With residential property values having fallen, say 20%, over the last year or two, it is not surprising that residential farm prices have also been affected. However, lifestyle buyers are still a very strong influence in the market and with such a limited supply of residential farms, the market could not be described as being in ‘retreat’. Equally, it is difficult to see how commercial farmers can ‘bounce back’ all that much. Try doing the sums on servicing a purchase from normal farming operations with feed – wheat, for example, is currently back below £100/tonne. Fisher German is sticking with the prediction of a steady
16 Fisher GERMAN Magazine
Crab Tree Farm, Northamptonshire/ Leicestershire borders is recently under offer. 474 acres at a guide price of £2,400,000
market for 2009 with a small side bet that the buoyant end of the market may dominate the lower end. The result by the close of the year may be that average prices for the second half of the year will be up just a little. Bare land sales in blocks of over 100 acres are selling at the bottom end for about £4,000 to £4,500 per acre for grassland or very manor farm, gaydon ordinary Grade 3 or 4 arable land and at up to £5,500 to £6,000 per Sustrud min henis delenim dunt la faci tin velesse acre for the best Grade 3 arable land in areaswisi. of strong demand. nissenis nulputat, quamet Elimin henis Smaller blocksdelenim of land continue to make premium prices. In dunt la faci tin velesse nissenis nulputat, particular, the firm’s Stafford quamet wisi. office sold 30 acres of Grade 3 arable land by auction infeatures: August for £290,000hall; (£9,660 per acre) Reception drawing room;against morning a guide price of £225,000. Similarly, Worcester officekitchen; was room; dining room; the billiard room; family instructed to act on behalf of a purchaser 50 acres of pasture cellars; domestic offices;of superb master suite; 5 further bedrooms (2awith bathrooms); first floor land and had to pay £7,000 per acre; farmer buyer eventually reception room; 2 further bathrooms; delightful outbid a non-farmer. and gardens.Holdings Act A public sale offormal land let oninformal an Agricultural tenancy is relatively uncommon. However, the Banbury office has £2,200,000 just sold 218 acresContact: of bare land (85% arable 15% woodland), subject Banbury office to such a tenancy Telephone: at Charlton, in Northamptonshire. This was sold 01295 271 555 in late SeptemberEmail: and made £3,846 per acre, for land which, with banbury@fishergerman.co.uk
property showcase Dry Leys Farm, Quainton. Guide price of £1,750,000
Properties of interest
The Banbury Office and Fisher German’s new Thame Office have a number of farms in the Buckinghamshire/ Oxfordshire borders area: Manor Farm, Poundon, near Bicester, is 186 acres of mainly arable land and incudes a range of farm buildings. It has sold, subject to contract, at close to the guide price of £1 million. Laurel Farm, Singleborough, near Buckingham, sits in 33 acres with a period, five bedroom farmhouse with a small range of buildings. It has been sold, subject to contract. Neals Farm, Swanbourne, near Winslow, is about 77 acres with a modern, four bedroom farmhouse (subject to an agricultural occupancy condition). It is for sale at a guide of £1,250,000. Meadow Farm, Blackthorn, near Bicester, totals 73 acres. It includes a four bedroom farmhouse (with an agricultural occupancy condition) and has a small range of buildings. It is for sale at a guide price of £850,000. Dry Leys Farm, Quainton, near Aylesbury, includes 176 acres, a listed farmhouse, traditional buildings with planning permission for residential conversion and farm buildings. It is for sale at a guide price of £1,750,000 in three lots. Brakes Farm, Nash, North Bucks, in nearly 40 acres, included a farmhouse requiring major renovation. It sold in early September at auction for £660,000 against a guide price of £600,000 to £650,000. For more information about any of these properties, contact Andrew Ranson or Matthew Allen on 01295 271555.
vacant possession, might have made £5,000 - £5,500 per acre. The Ashby office has two farms for sale in the 120-130 acre bracket, and both are at the stage of attracting offers at the time of going to press. One in Staffordshire, in the Utoxeter/Cheadle area, is 122 acres of pasture land at a guide of £620,000. The other is near Ashbourne in Derbyshire, and has planning permission to add a small house (with an agricultural occupancy condition) to 124 acres of pastureland and a range of modern livestock buildings at a guide of £595,000. The Market Harborugh office has recently reported the sale, subject to contract, of Crab Tree Farm, Brampton Ash in Northamptonshire close to the border with Leicestershire. This is a 474 acre block of mainly Grade 2 and 3 arable land and includes 54 acres of strategically placed woodland and a substantial shoot lodge which, between them, offer clear potential to develop a quality shoot. For further information about agricultural property generally contact Charles Haselwood on 01295 226289
Brakes Farm, Nash, North Bucks. Recently sold at auction for £660,000
manor farm, gaydon
Sustrud min henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. Elimin henis delenim dunt la faci tin velesse nissenis nulputat, quamet wisi. features: Reception hall; drawing room; morning room; dining room; billiard room; family kitchen; cellars; domestic offices; superb master suite; 5 further bedrooms (2 with bathrooms); first floor reception room; 2 further bathrooms; delightful formal and informal gardens.
£2,200,000 Contact: Banbury office Telephone: 01295 271 555 Email: banbury@fishergerman.co.uk
Fisher GERMAN Magazine 17
18 Fisher GERMAN Magazine
property showcase Auctions
Transparent transactions Auctions are proving popular to executors, trustees and vendors who have been struggling to sell, says Andrew Ranson
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ot all property is suited to the sometimes misunderstood method of sale by auction. The latest statistics show that, although auctions have been growing in popularity, in England and Wales less than 5% of properties are sold in this way. This is for a number of reasons, but not least because many vendors and purchasers are simply unfamiliar with the process, and not used to the commitment that a purchaser, in particular, makes at the fall of the hammer. However, there are many people who grumble about the shortcomings of the ‘English way of selling property’. Auctions overcome many of these shortfalls, providing considerably more certainty to both parties and often the route to an exceptional sale price. Some of Fisher German’s vendors that have benefited from successful auction sales this year have been executors and trustees who have a duty not to just sell at ‘best price’, but also sometimes to demonstrate this. This year, Fisher German’s success rate is over 85%, which is well above the national average of 71%. Fisher German has sold a run of properties for executors this summer. Auctioneer, Andrew Ranson, says: “Quite often the sort of properties being sold offer significant potential to renovate or improve, perfect properties to stimulate competitive bidding. “In our last few collective sales we have sold a range of properties for executors and trustees including a number of bungalows requiring modernisation, some pretty cottages in need of renovation and even two smallholdings with development potential to turn into well-appointed and considerable family homes with buildings and their own land. “This year for our executor vendors, who are normally very realistic, we have achieved a 100% success rate and, in many cases, sale prices have been well above everyone’s expectations.” For example, 14 Main Street, Mixbury, was guided at £150,000-£175,000 but, after more than 30 viewings, eventually sold for £217,000. Most properties that are entered into a Fisher German auction proceed to auction, but the right to ‘sell prior’, is always reserved. Twice this year the firm has received offers of more than double the level of the guide prices. Andrew explains: “Auctions can be an excellent way of drawing out a ‘special purchaser’ who feels they just can’t take the risk of waiting for the auction, or who perhaps values the more confidential nature of a private offer.” Fisher German is not immune to the fall in the number of properties being offered this year, which is nationally down 15% but has seen an increase in the number of vendors who have had their properties on sale with other agents, perhaps at a slightly unrealistic price, and when changing agents are prepared to be a bit more realistic. Andrew is confident that an auction marketing campaign can attract interest in a property that is sometimes lost within the mass of conventional private treaty marketing. “We are also attracting quite a following from a broad range of purchasers and investors,” he concludes.
The Holt, Middleton Cheney. Guide price of £575,000
For further guidance on auctions or to be put in touch with your local office’s auction team please contact Andrew Ranson on 01295 226288 or email andrew.ranson@fishergerman.co.uk
Fisher GERMAN Magazine 19
feature | pipelines and utilities
Landowners and utility firms must work together to accommodate the increasing number of pipelines going underground. Andrew Bridge and George Simpson report that good relationships are key to a project’s success
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usy and congested roads are forcing pipelines transporting liquids and gases underground in increasing numbers, highlighting the importance of mutually beneficial relationships between utility firms and the owners and occupiers of agricultural land. Andrew Bridge, based in the Ashby de la Zouch office, explains: “Roads will only continue to get busier, so trying to move products by tanker will just get more difficult. A large percentage of pipelines for the water and gas industries used to
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be situated under roads, but this is increasingly no longer a viable option as the routes have become congested with other services. Today’s increased emphasis on health and safety also prevents road transportation from being a viable option. Using pipelines across private land reduces the requirement to use the roads but is dependent on landowners and utility firms working together.” Although the goals and needs of landowners and utility firms may seem to be at odds, Fisher German has forged many harmonious partnerships between the two parties, thanks to the firm’s innate understanding and knowledge of both sides of the spectrum. Its utilities team has worked with utility firms for over 75 years and serves virtually all the major oil and gas transmission companies, as well as electricity, water and other network infrastructure businesses. In addition, members of the team are often from a rural background which
gives them an understanding and empathy with the landowners. “Our experience and rural knowledge means that we are used to dealing with large projects that need to be achieved within limited timescales and tight budgets. We know where there are likely to be sticking points and how to resolve them. For example, drilling through a permanent pasture field water pipe might not seem like a serious issue to the engineer on the project, but for the farmer who has 300 cows to deal with this is business critical. The importance of rural knowledge cannot be underestimated and it is vital that resentment between the two parties involved is never allowed to build up.
feature | estates
For further information contact Andrew Bridge on 01530 410828 or George Simpson on 01785 273995 or visit www.fishergerman.co.uk
“We aim to make the project run as smoothly as possible and talk face to face with the parties to ensure that both sides understand the other’s constraints and concerns,” adds Andrew. “Some civil engineers and project managers have limited empathy or understanding of the rural environment so our experience and personal relationships with land owners helps enormously.” George Simpson at the firm’s Stafford office is heavily involved in pipeline schemes for the water industry. “A lack of knowledge of rural issues on the part of a number of contractors and project managers can lead to the unrealistic programming of
Using pipelines across private land is dependent on landowners and utility firms working together” schemes, as insufficient time is allowed to deal with what can be important and complex issues for owners and occupiers of agricultural land. This type of issue can lead to conflict between the two sides, which benefits neither party.” The firm adds value to these types of projects by bridging any gap with a wealth of knowledge, understanding and empathy with both parties
– whether it is acting for the landowner or the utility company. This helps to ensure that both sides benefit from the relationship. Inevitably, on some occasions, Fisher German is employed by both the land owner and the utilities firm, bringing into question the issue of potential conflicts of interest. Where this does happen careful management of the firm’s strict policies on conflicts of interest come into play and both parties have the comfort of dealing with a firm working to professional standards under the RICS Rules of Conduct. l
Fisher GERMAN Magazine 21
feature | estate management
“A
t heart, I’m a great traditionalist. In fact, some might call me old fashioned,” says John Pochin, owner of the Edmondthorpe and Barkby Estates in Leicestershire. Measuring over 7,500 acres in total, Edmondthorpe has been owned by the Pochin family since the 18th century and Barkby since the 13th century. John took over the running of Edmondthorpe and Barkby in 1981 following his father’s death and, although he might have traditional values including a great love of conserving the English countryside, he can hardly be described as old fashioned. Since inheriting the estates, John has worked tirelessly using forward-thinking management techniques to transform the debt-ridden, neglected estates into profitable, flourishing ventures. When John started to run Edmondthorpe, its 2,500 acres bore more resemblance to the prairie-style fields of America than traditional English countryside. The far-reaching vistas developed by tenant farmers were at massive odds with John’s dreams of a traditional English estate with environmental conservation at the top of his agenda. In order to reclaim Edmondthorpe’s heritage, John worked closely with Fisher German to bring the land back in hand. Now, only 289 acres of Edmondthorpe are let and the estate boasts an abundance of smaller fields where hedges are trimmed just once every three years, allowing wildlife to nest and breed. Several hundred acres of woodland, six miles of hedging, and 26 beetle banks, have been planted, historic parkland has been restored and there is now a 35-acre water meadow. The massive transformation
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was far from straight forward as John’s inheritance of the estates was accompanied by seven-figure debts. “It was a very difficult time,” he explains. “The hall at Barkby was riddled with dry rot which alone cost millions to put right. In order to fund my plans for Edmondthorpe we had to undertake a 400-acre housing development at Barkby. Getting planning permission was an uphill battle and Fisher German was invaluable in helping us win it. The development meant I could reinvest in the in hand farms and cottages and enabled me to buy more land. I inherited 5,200 acres but the estates now encompass 7,500 acres. Again, Fisher German, and particularly Michael Sandell and John
Palmer, were instrumental in acquiring the additional acreage.” While the development at Barkby was vital to allow Edmondthorpe to begin its restoration, Countryside Stewardship agreements have also been key to the renovation. “Since 1st July, Edmondthorpe has entered the Higher Level Stewardship scheme, thanks to James Goodson and Louise Montgomerie of Fisher German,” says John. “The advantage is that we haven’t had to change any aspect of how we manage the farm land but we benefit from help with its upkeep.” While Edmondthorpe is run profitably, the high levels of wildlife conservation and game survival do come at a cost, for
The high levels of wildlife conservation and game survival do come at a cost”
example, different crops are spread around the farm rather than grouped in more economical blocks. “Perhaps Edmondthorpe could be run more profitably, but what do you term farm income?” asks John. “The way we run the estate has resulted in the highest density of grey partridge in the East Midlands. We also have scores of songbirds and butterflies which, to me, are worth just as much as more traditional income. If I only owned one estate we couldn’t run Edmondthorpe in the same manner but I run all estates, farms and cottages as one single business and not separate entities.” The jewel in Edmondthorpe’s crown is the award-winning grey partridge Somme
Shoot, so-called because of John’s deep interest in that horrific battle. The idea for the shoot was rooted in John’s childhood. “As a child, I learned much about wildlife and wild flowers from my mother who was a keen botanist. Later, as a teenager, I used to accompany George Joyce, the son of my great-grandfather’s land agent and a family friend, around the shoot in Walsingham, Norfolk. He taught me a lot about game management in general and the grey partridge in particular.” John’s dream came to fruition in 1990 when he established the Somme Shoot with the help of the Game and Wildlife Conservation Trust. It now boasts 163 pairs of grey partridge and produces up to 12 days of shooting a year with bags of between 60 and 180 each day. It was awarded the Carter Jonas Grey Partridge award for 2008/9 and many other estates now visit Edmondthorpe to learn from its conservation and management techniques. As to the future, John hopes to continue with his conservation work at Edmondthorpe and is also preparing to rebuild the hall that burnt down in 1942. “It would be amazing to see a Pochin resident on the estate again, but whether it’s in the near future or in my son’s generation is yet to be seen.” While the renovation of the hall is a work in progress, the Somme Shoot is admired by many. “George Joyce told me that it would take 10 years before I would eat the fruit of my labours on a shoot at Edmondthorpe. And, as with most things he was virtually spot on – it took nine years to the day before I shot my first partridge,” recalls John. Here’s hoping that the rest of his plans prove to be as successful and he continues to preserve the many charms of Edmondthorpe. l
Edmondthorpe Estate Before the shoot was established at Edmondthorpe there was very little wildlife on the estate. Now, in addition to the abundant grey partridge, there are also six pairs of barn owls, four other native species of owl, 40 pairs of redlegged partridge and an abundance of butterflies, songbirds, birds of prey, wild pheasants, water voles and hares. For further information on estate management contact John Palmer on 01858 411216 or email john.palmer@fishergerman.co.uk
Fisher GERMAN Magazine 23
feature | gas storage
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s the production of gas from the North Sea declines and the UK becomes increasingly reliant on storage for security of supply, gas storage facilities are an important asset to the UK gas market. A comparison of the UK’s current storage capacity with international facilities shows that the UK can only store around 4% of its annual consumption, compared to France at 24% and Germany and the USA at 21%. In the event of a major supply disruption, the UK only has 14 days of storage and is particularly dependent on the Centrica owned Rough facility which comprises more than 80% of the UK’s storage. There are a number of methods for storing gas: l Distribution system via pipelines (called ‘line pack’) to meet day to day changes in demand by adjusting the pressure in the pipes; l Liquefied natural gas (LNG) where natural gas is cooled and compressed to turn it into liquid. While it can be stored in tanks it is more common to find LNG terminals around the coast where it is transported by ship and stored briefly
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Rough storage (above and right), October 2007
feature | gas storage
In the event of a major supply disruption, the UK only has 14 days of storage” at the port where it is degasified and deposited into pipelines. LNG acts like a petrol station and can only supply gas on peak demand; l Salt caverns which are purpose built caves allowing large quantities of gas to be stored. Although these take three years to form, the facilities are flexible and gas can be quickly and easily removed and injected from the caverns. Salt is suitable for storing gas as it is impervious. Where the salt is thick, the underground caverns are created by solution mining where water is pumped down a pipe inside a well into the salt. The water dissolves the salt creating brine which flows For more information contact Claire Priestner on 01565 757984 or email claire.priestner@fishergerman.co.uk
back up the well. The brine is slowly pulled out and the gas injected. There are only four areas in the UK where the salt is suitable for such storage: Lancashire; Dorset; Cheshire; and Yorkshire; l Depleted old oil and gas fields where the rates of input and extraction are low, making this storage best for seasonal changes in demand. Both gas storage in salt caverns and depleted fields play an important role in ensuring the supply of gas to the UK. However, while the Government currently supports these methods, the cost implications of developing them can often prevent the schemes even being considered. Developing salt caverns is very expensive – twice as much as the development of depleted fields. And even though depleted fields have many benefits, including being low risk with proven hydrocarbon containment capacity, the costs often put the schemes on hold. Developers, therefore, are currently urging the Government to consider introducing a storage obligation on gas
suppliers requiring them to store a proportion of their gas in the UK to assist with the development of gas storage. However, this is particularly difficult as it is hard to raise finance when facilities take five years to develop and developers cannot predict the price of gas in five years’ time. Neither the operation nor the ownership of gas storage facilities is a licensed activity under the Gas Act. Amendments were made to the EEC obligations governing onshore and offshore facilities through amendments to the Gas Act and Petroleum Act and now anyone seeking the right to store gas may apply to secure that right, provided he or she has first attempted to negotiate in good faith. A developer may seek compulsory rights under the Gas Act 1965 and 1986 to store gas underneath a third-party property, including pipelines and wells. Due to the compulsory rights afforded to developers, it is always advisable to negotiate the gas storage and pipeline rights with a developer, rather than the developer seek compulsory rights, as the highest considerations have been achieved through negotiation. The developer no longer lives in fear of compulsory rights and, if agreement cannot be reached in a reasonable time, the developer will seek those compulsory rights and, based on payments made, this may only result in a consideration as low as £50 for gas storage and £30/metre for the pipeline. A prime example of this is in the recent case Bocardo SA v Star Energy UK Onshore Limited 2008. Here, the Court of Appeal’s view was that if Star Energy had, under the statutory scheme, applied for rights to lay pipelines in the substrata of Bocardo SA’s property at a depth of around 800 ft, Bocardo SA would have received £50 as standard compensation. The Court of Appeal furthermore concluded that Star Energy would have been sufficiently generous in negotiations if the matter had not been considered under a statutory scheme, if it had offered £1,000. It is therefore key that when valuers are negotiating with developers for gas storage facilities, they know their values and know the consequences of a breakdown in negotiations and compulsory rights being activated. This market knowledge is particularly important when compulsory rights for facilities for gas storage, which are a national need, are strongly supported by the Government and can be granted in as little time as four months. l
Fisher GERMAN Magazine 25
feature | environmental stewardship
For further information on Environmental Stewardship or any other rural funding schemes, contact David Powell on 01295 226296 or email david.powell@fishergerman.co.uk
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feature | environmental stewardship
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armers and land owners don’t often maximise the benefits from Environmental Stewardship, an agri-environment scheme to fund environmentally beneficial projects on their land. Stewardship, which includes Entry Level Stewardship (ELS) and Higher Level Stewardship (HLS), was launched in 2005 and Fisher German has helped many clients enter into both schemes and maximise the potential benefits. Stewardship schemes can provide significant financial benefits to estate and farming businesses. There are also many intangible advantages from the schemes, such as ensuring compliance with Single Payment Scheme requirements, enhancing the capital value of the estate and adding value to existing enterprises such as equestrian, tourism or shooting. David Powell of Fisher German explains: “Many landowners that have entered into Environmental Stewardship, especially HLS, have not maximised the opportunities the scheme offers. We have helped clients with Stewardship applications where we have sought to maximise the benefits of the scheme. Stewardship is no different to any other diversification enterprise, it needs careful planning and management to reap the rewards. Clients who have sought our professional advice are often surprised as to the great benefits that Stewardship can provide to a farming business in terms of increased revenue, resource protection, cost saving and adding value to existing enterprises.” As the current volatility of commodity prices makes it difficult to produce accurate budgets, having some guaranteed income from Stewardship
Having some guaranteed income from stewardship payments can be invaluable” payments can be invaluable. David says that Stewardship does not necessarily result in a loss in production, often quite the opposite, especially when combined with other diversification enterprises. The firm offers clients a complete package from professional advice on how Stewardship can be integrated into existing enterprises, through to maximising the scheme’s benefits and completion of the application process and ongoing advice on management options. This often includes the project management of capital works under HLS, which can be underrated.
The Upton Estate in Warwickshire is an excellent example of where HLS provides a significant contribution to the 1,400 acre in hand arable farming enterprise. Rob Allan, estate manager, has worked closely with Fisher German, The Farming and Wildlife Advisory Group and Marek Nowakowski, who runs the Wildlife Farming Company, to ensure that all opportunities from HLS capital works are maximised. Rob explains: “The capital works funding is extremely important as it provides a significant proportion of capital funding to estate projects such as boundary maintenance, parkland management and historic building restoration.” For further details visit: www.uptonestate.co.uk. l
Environmental Stewardship Environmental Stewardship is an agri-environment scheme that provides funding to farmers and other land managers in England who deliver effective environmental management on their land. The scheme is managed under the ERDP. Its main objectives are to: l conserve wildlife and biodiversity l maintain and enhance landscape quality and character l protect the historic environment and natural resources l promote public access and understanding of the countryside l conserve genetic resources l provide flood management. The scheme has three levels: l Entry Level Stewardship l Organic Entry Level Stewardship l Higher Level Stewardship.
Fisher GERMAN Magazine 27
feature | renewable energy
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armers could find they have an alternative and, potentially, lucrative source of revenue lying untapped on their land. Anaerobic digestion (AD), the production of biomethane by the anaerobic digestion of a biodegradable product, is one of the most economically viable sources of renewable energy and offers farmers a financially sustainable diversification opportunity. A variety of waste can be used to produce biomethane which can then be burnt in a combined heat and power plant (CHP) to generate electricity and heat. Biomethane can also be scrubbed to remove the carbon dioxide and fed into the National Gas grid. And the advantages of AD don’t stop there: the by-product of the process is a digestate which can be used as a fertiliser; uncontrolled methane emissions from agriculture are reduced; expensive storage facilities are not needed as waste slurries and manure are converted into methane gas; and organic waste to landfill can be diverted – not only
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A by-product of the process is a digestate which can be used as a fertiliser” saving space but also greenhouse gas emissions of up to 900KgCO2e/tonne of food waste. AD plants can also help livestock and dairy farmers work towards the 2008 Nitrate Vulnerable Zones regulations for the disposal of manure and liquid slurries. While several European countries, including Germany, Holland and Denmark, have embraced the concept of AD with more than 4,000 plants in Germany alone, the UK is just waking up to the opportunities. There are currently only 10 AD plants in the country. But this looks set to change as the UK Government encourages farmers to consider the benefits of AD through the Renewable Obligation initiative and capital grant funding. The NFU has also pledged to deliver 1,000 farm based AD plants and 100
larger scale AD plants by 2020. David Kinnersley, of Fisher German, believes that AD plants will make an important contribution to the farming community, both financially and in terms of a net environmental contribution and, as such, the firm is embarking on an exciting partnership with Harry Bond and James Russell of Tamar Energy, a company that specialises in investing in AD projects in the UK. The new venture will combine the agricultural business, land management and renewable energy expertise of Fisher German with Harry and James’ capital investment skills, enabling a greater number of farmers to access this alternative income revenue and reduce their carbon emissions. “AD provides the most attractive alternative to the disposal of biodegradable waste in landfill. It also provides a solution to help livestock farmers work towards
feature | renewable energy
compliance with NVZ regulations, reduce energy costs and earn additional income from the electricity and potentially heat,” explains David. James and Harry cut their financial teeth in private equity and investment banking. Their move to set up Tamar Energy sits well with their family backgrounds – both hail from farming businesses and are strong advocates of AD, with Harry building one of the first agriculture-based plants in the Midlands. “Now is the time to invest in AD,” says James. “Previously, the returns were not sufficient as they cost a minimum of £1.5m to build, maintain and operate, there has to be a significant reward factor. AD plants are reliable if they’re run well, and operate 90% of the time. They can also generate gas which could be very useful considering the UK’s dwindling reserves and are a means for the rural community to retain more of the value of the primary product they produce.” David adds: “The return on capital is extremely good with electricity generated by way of anaerobic
digestion attracting two Renewable Obligation Certificates (ROCs) per megawatt generated. The potential return on capital could be somewhere in the region of 20%.” While Government funding is an attractive proposition for farmers considering building an AD plant, David warns that the strings attached can delay the project significantly. “It can be the icing on the cake for AD,” he explains, “but Government funding shouldn’t be the main driver for the project.” Harry concurs: “Essentially, AD can help to maximise the value of the rural economy and the business prospects of Fisher German’s clients. Farming is an extremely challenging business and is very exposed to the volatile commodity markets. AD should give farmers a new opportunity to diversify and benefit from an additional income stream that is non-cyclical in nature and not contingent on favourable weather conditions.” l
The benefits of AD l central Government is
encouraging the development of AD plants through the Renewable Obligation initiative l an alternative income stream for farmers l the plants provide an alternative to landfill waste and reduce greenhouse gas emissions l a way for livestock farmers to work towards NVZ regulations l suitable sites should be able to provide sufficient fuel to generate in excess of 1MW of electricity per annum l farmers have the potential to become self sufficient in heat and electricity l plants provide an opportunity for farmers to cooperate through the creation of a joint venture company set up to solely run the AD plant l AD plants reduce farmers’ reliance on oil based fertilisers. If you think you have a potential site or would like to find out more about AD contact David Kinnersley on 01295 226294 or visit www.fishergerman. co.uk or www.tamarllp.com
Fisher GERMAN Magazine 29
feature | estate management
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smaston Manor site sits at the heart of the historic and beautiful Osmaston Estate in Derbyshire. At around 3,500 acres, Osmaston is one of the county’s finest agricultural and residential estates and forms part of the Walker-Okeover’s property portfolio which also includes Okeover Estate in Staffordshire. While the Manor’s tranquil location in the middle of Osmaston Park ensures utmost privacy, it is also conveniently close to the towns of Ashbourne and Matlock with the cities of Derby, Nottingham and Stoke also located nearby. Historically, Osmaston was very much run as a traditional estate, but under Fisher German’s guidance new ideas and ventures have been, and continue to be, developed to diversify the estate’s business into new activities that will generate additional revenue. The manor site is a case in point. Standing in the grounds of the old Osmaston Manor House, demolished by the present owner’s grandfather in 1965, the site remained pretty much inactive until the current owner hosted his wedding reception there in 2007. The future of the manor site had long been the subject of family debate and the decision to host a wedding in the beautiful surroundings gave the impetus to recreate some of the site’s former splendour. Preparing the site for the wedding
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Osmaston Estate provides a glorious location for weddings and corporate events, but winning planning permission to erect a semi-permanent marquee at the Manor Site held its challenges. Neil Hogbin reports
involved the restoration of the neglected stone walls, terraces and ponds. However, the parkland setting remained in all its glory with far reaching vistas, lakes and specimen trees providing a magnificent backdrop. Once restored to its former glory, the Osmaston site provided the perfect location for a one-off family wedding and prompted Fisher German to encourage the owner to promote the site as an exciting new venture for wedding receptions, corporate days and other events. While planning permission was not required for the owner’s wedding, as anyone is
entitled to erect a marquee on his or her property without consent for up to 28 days in a year, running the site commercially requires a far greater window in which to operate and needed planning permission. The firm, therefore, had to mastermind a persuasive campaign to gain permission in what can be a problematic area. Despite an initially favourable meeting with the local planning officer, the proposed application for a semi-permanent marquee was ruled to be contrary to local planning policy. The site was deemed to be in open countryside and any development
For further information contact Neil Hogbin or Naomi Wilton on 01530 412821
Planning permission was eventually granted thanks to comprehensive reports supplied to the planning authority during the decision-making process” would always come under close scrutiny, even though the structure was only temporary and would be dismantled and taken away for part of the year. One of the concerns expressed by the planning authority was the fear of setting an undesirable precedent that could result
in a proliferation of marquees populating the countryside and the fact that the business was not sustainable. The firm worked hard to convince the planning committee that the proposal would have minimal impact on the countryside and that, despite the committee’s concerns, the use of the marquee would be sustainable with a significant benefit to the local economy and community. A detailed acoustic
survey was also organised to monitor current and predicted noise levels at various distances from the site to ensure that noise levels would not impact on the surrounding countryside. Planning permission was eventually granted thanks to comprehensive reports supplied to the planning authority during the decision-making process and, although it came with various conditions attached, none were particularly onerous. The hard work and resilience was not in vain – the site has already hosted many weddings and forward bookings are now stretching to 2011. The site’s success has also prompted further developments at Osmaston – including plans to turn a redundant sawmill on the estate into a venue for civil ceremonies. The first stage in this project will be to secure much needed grant funding to put the building back into a sound state of repair and an application has been lodged with English Heritage. The grant of planning shows the successful teamwork of two departments within the firm delivering the best possible result for the client. The grant of the various site permissions has added significant value to the client’s property portfolio and will form an important additional income stream. l
Fisher GERMAN Magazine 31
Spotlight on services
Richard Sanders advises that long lasting solutions are key to keeping on top of today’s challenging farming conditions Farm Management Department The agricultural sector is facing pressure from volatile markets, CAP reforms and climate change issues. The Fisher German farm management team blends practical experience and strategic vision and can generate workable long term solutions to business issues. The farm consultants work with farmers, landowners and investors in the UK and Europe to develop, manage and maximise owners’ assets. Farm management and contract farming arrangements Whether owners want to take a step back from the physical work or outsource management, Fisher German will put land out to tender, negotiate agreement terms and, if required, manage the land, subsidy and environmental schemes. A full management service includes financial and operational, planning and budgeting, tailored to individual client’s needs.
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A full management service ... tailored to individual client’s needs” Farm consultancy If you require a fresh approach to your business, the team can help. Clients benefit from services which include: l complete business appraisals to individual enterprise analysis l machinery costings and benchmarking software enable the team to identify core issues for farm profitability l cost of production analysis l setting up joint venture businesses between farmers l planning labour and machinery use on farm l mentoring businesses on change strategies whether expansion or developing niche markets. Farm consultancy
Richard Sanders
telephone 01858 411234 richard.sanders@fishergerman.co.uk
Environmental schemes The introduction of the Entry and Higher Level Schemes has provided opportunities
to generate a return from maximising the conservation value of farmland. The team not only understands the opportunities these schemes can generate but also optimises them in conjunction with the agricultural business to provide a holistic approach. The team is involved in schemes that range from upland moors to lowland farms, from pre-application assessment to full submissions. Renewable energy The rise in energy prices, government renewable energy targets and the increasing realisation that farm businesses have an important role to play in climate change mitigation is generating some exciting opportunities for land based energy generation. The team has considerable experience across a range of renewable energy projects with the anaerobic digestion (AD) of farm products of particular interest. AD is an opportunity to help tackle NVZ issues in the livestock sector and waste from the fresh produce sector while generating an alternative income stream for farmers.
Spotlight on services proceedings for disputes on property matters and asset valuations for companies. Although this list is by no means exhaustive, it highlights the most common examples of when valuations are required. Why? To provide valuations which are prepared on a common basis. The preparation of formal valuations has been standardised over the years and the RICS has mandatory guidelines for the preparation of such valuations. They are commonly referred to as Red Book valuations and are carried out under the RICS Valuations Standards. These valuations require considerable research in order to provide all of the necessary background information, for a complete and detailed valuation. It is likely that, in addition to the general information regarding descriptions and detail of the property, further information about planning, highways and access specific to the property in question will be required. This will, understandably, vary from one valuation to another depending on the type of property.
John Pitts explains the what, when, why and how of valuations What? What is required? It must be established why the valuation is being undertaken – this will then dictate how it will be carried out. Valuations generally fall into two categories: l. Formal valuations, which are carried out under the mandatory guidelines of the professional body, generally the Royal Institution of Chartered Surveyors (RICS), and which may also be required to comply with other guidelines such as the Civil Procedure Rules 2. Other valuations, which may not have mandatory and procedural guidelines, include those associated with agency instructions, whether for sales, purchases and lettings, or just to give guidance to parties
considering the financial affairs of that business, whether corporate or personal. For example, inheritance tax/ estate duty planning or the restructuring of a business or partnership. When? Informal valuations may be needed and are likely to be required at the behest of the party seeking the advices. Formal valuations are dictated by the event for which they are required. They are likely to be sought for probate valuations under the Inheritance Tax Act, Capital Gains Tax valuations in connection with transfer/ sales of assets, matrimonial and divorce proceedings, partnership rearrangements or dissolutions, litigation
Valuations
John Pitts
telephone 01530 410810 john.pitts@fishergerman.co.uk.
How? Formal Red Book valuations need to be carried out by a chartered surveyor with sufficient experience and knowledge of the type of property or asset that is being valued. The surveyor should also have a sound knowledge of the local area. Such valuations cover residential, commercial, industrial, minerals and waste, sporting, rural and other types of property assets. The valuation report should set out the methodology as to how the valuer has arrived at his or her findings and values. When selecting a chartered surveyor, the client should select a valuer of suitable calibre to supply a high quality report. This is particularly important if the matter is contentious and there is a need to go to court or dispute resolution to resolve any issues. At that stage the surveyor, as an expert witness, would have to provide evidence and face cross examination.
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Spotlight on services
William Young warns that the sale of land to a neighbour can leave the vendor with not as good a deal as first appears As land values hold firm in the economic downturn and less open market transactions are available, a number of landowners are acquiring adjacent land to add value to their property, or selling some of their land to release capital. Selling land in a private deal has long been commonplace between ‘special purchasers’, such as neighbours. A ‘special purchaser’ is someone who is likely to pay more than the typical market value for a property as he or she often gains an additional premium by acquiring it. This could range from the sale of a slither of land to acquiring the next door farm. In either case, William Young of Fisher German warns that a number of implications will affect the value of the retained property.
Professional advice
William Young
telephone 01858 411243 william.young@fishergerman.co.uk
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While the sale or acquisition of land to a neighbour may attract a premium, what initially seems an attractive price may disappoint later on and it is important to consider the effect of the sale on the value of the retained property.
William explains: “The sale of land privately is no different to an open market sale. In fact, it is often more complicated. Vendors/purchasers need to consider issues such as taxation liability, access rights, third-party uses and restrictive
Selling land off the market in a private deal has long been commonplace between ‘special purchasers’”
covenants.” He adds: “Our service often adds value, from negotiating the price and sale provisions in favour of the client, to protecting the client’s interests and ensuring that any negative effects on value are mitigated.” A recent private sale of a commercial block of arable land involved Fisher German providing detailed valuation advice and negotiating favourable sale terms on behalf of the vendor. These included retaining the shooting rights and right of access to retained land. Fisher German also produced a conveyance plan and ensured that practical issues such as the ownership and maintenance of boundaries were properly addressed. William says: “It is important once a deal is agreed to document the agreed Heads of Terms. This will ensure that everything which has been agreed is incorporated into the conveyance of title by the client’s solicitors.” Seeking professional advice at an early stage of any potential sale or acquisition can be invaluable in maximising the disposal or investment and ensuring a smooth transaction.
Spotlight on services
Removing agricultural occupancy conditions gives greater flexibility to the occupancy, management and disposal of a property, says Stephen Rutledge
The diversification of farm businesses and estates and the reduction of their labour forces has meant that more cottages and farm houses have become available to either let or sell away from the core property. However, many of the dwellings are subject to Agricultural Occupancy Conditions (AOC), limiting their occupancy to current or former agricultural workers. As such, an AOC can discount the value of a property by up to 40%, particularly in a difficult market. Owners of property subject to such conditions should investigate whether there is a possibility of removing them or negating their effect. The removal of an AOC gives greater flexibility to the occupancy, management
Local authorities can be reluctant to lift planning conditions� and disposal of a property. An AOC can be removed in a number of ways. For example, a property can be marketed for sale, subject to the AOC, in order to demonstrate that there is no demand for such a property with an AOC. However, this can take a substantial period of time and incur marketing expenses. An alternative route is to apply for a Certificate of Lawfulness which confirms that the Council is effectively barred from enforcing the condition. The decision making process in determining a Certificate of
Professional advice
Stephen Rutledge
telephone 01295 226292 stephen.rutledge@fishergerman.co.uk
Lawfulness is quasi judicial in nature, meaning that the onus of proof is with the applicant and a decision is made based on fact. Given that an exception to general planning policy will have been made for the permission to have been granted in the first place, local authorities can be reluctant to lift planning conditions. It is therefore critical that a thorough investigation is undertaken to put together the best case for the removal of an AOC. If the certificate is refused, the chances of success on appeal are generally low, as an Inspector is much more technically demanding when considering an appeal. In such a complex area professional planning advice should be sought as early as possible in the process.
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