Fisher German magazine issue 6 Winter2010

Page 1

Winter 2010 | Issue 06

Property agency

Residential Country estates case study Commercial

Strategy for

success Re-energise your estate’s performance with professional advice

A green light The CSR was mostly good news for renewable energy

Make the most of your assets www.fishergerman.co.uk

Returns from farming are hitting record levels


Welcome to the Fisher German magazine Since the last issue of our magazine, the Comprehensive Spending Review (CSR) has taken place. Not surprisingly, the review outlined the biggest reduction in government expenditure since the second World War. Its impact on the property market is now becoming clearer. Unfortunately, for many in the housing market and first-time buyers in particular, the reluctance of banks to give affordable loans looks set to continue. The general housing market is also likely to be held back by tax rises, slow earnings growth and increased unemployment. Expert marketing of property is essential in such challenging times. On page 12 Stuart Flint reveals the new tools we use to ensure that clients’ properties are showcased to the optimum audience. However, while we understand the importance of harnessing today’s technological tools to market properties, Stuart emphasises that an agent’s personal touch in securing a sale must never be underestimated. Renewable energy remains a key focus for us. On page 24 Henry Sale reports that the CSR was mostly good news for this sector and advises that investing in renewable energy can make sound business sense. The agricultural market as ever is fundamental to our business. Witnessing wheat prices increase by over 50% in the last four months means a welcome boost to many of our clients. The importance of agriculture in the world economy is becoming more of a feature. The farming sector is currently in good health with returns hitting highs not seen for 10 years. Richard Sanders believes that farmers and landowners should currently be focusing on making the most of their assets, see page 30. We are also seeing continued growth in the field of utilities and infrastructure. The investment in our utilities is governed by statutory investment and this is set to continue irrespective of the wider economy. The essential skills needed when applying for planning permission are explored in this issue and there is an update on the controversial HS2 scheme and how we can help anyone affected by the proposal. We also celebrate some key external appointments, including Tam Bream’s role as national chairman of the highly prestigious Pipeline Industries Guild. We hope you enjoy reading the magazine and would be delighted to receive your comments and any suggestions for the next issue.

Andrew Jackson & Henry Sale, managing partners

Fisher GERMAN Magazine


In this issue news & views

features

l Proposed

a strategy for 22 success

HS2 route market l Tam Bream chair of The Pipeline Industries Guild l Pipelines team moves to Hungerford l New website launched l Renewables round up l Telecoms

a green lighT

24

The CSR has been mainly beneficial for renewable energy

Property agency technically speaking

Professional advice can re-energise an estate’s performance

At your service 26 12

Fisher German harnessed its resources to bring a complex project to fruition

Today’s technology has revolutionised how property is marketed

a structured approach

fine estates of affairs

Applying for planning permission can be a complex procedure

14

Demand is exceeding supply in the prestigious country estate market

a fair to 16 middling market

28

make the most 30 of your assets Returns from farming are hitting record levels

32

England’s middle market is performing well, despite challenging conditions

a potentially explosive situation

a professional 18 perspective

Linewatch is an invaluable tool for the construction industry

The rental or sale of commercial property needs specific skills

Spotlight

in the higher scheme

20

directory

34

HLS Schemes are sometimes accessible to even intensively farmed operations

Contact details, location and services information of the Fisher German offices

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 Curved Media. www.curvedmedia.co.uk

Fisher GERMAN Magazine


news&views general practice

Birmingham

drawing the line Property owners affected by the proposed HS2 route might be eligible for compensation. Marcus Blake advises on the way forward

For further information on HS2 and, in particular, the Exceptional Hardship Scheme, contact Marcus Blake on 01295 226286

Fisher GERMAN Magazine


news&views

On 8 September 2010 HS2 announced the latest refinement for its high speed rail route between London and Birmingham. This was after the introduction of the Exceptional Hardship Scheme (EHS) to assist home owners near the route who needed to move house immediately. HS2 is already making arrangements to purchase property along this route in the coming months. With compulsory purchase orders to acquire land along the route not expected until at least 2015, and the Secretary of State unlikely to confirm whether the scheme will go ahead until the end of 2011, the introduction of EHS has provided much needed help to home owners wishing to sell property along the proposed route. Fisher German is one of a small group of firms assisting home owners and HS2 by providing unbiased market valuations (ignoring the proposed HS2 scheme) for those houses to be purchased under EHS. This also gives Fisher German a valuable insight into the route and the impact it has on the surrounding properties. As more information becomes available on the route, and the impact it will have on properties

on or near the proposed line, Fisher German has been able to provide reasoned advice to farmers, landowners and house holders in the locality. A sound understanding of the proposed scheme, and the impact it may have on farming businesses, commercial/equine property and country estates, means that Fisher German is already advising land owners on action required prior to the route being safeguarded by the Government. Marcus Blake of Fisher German’s Banbury office says: “With HS2 gathering momentum, it is important for property owners along the route to seek early advice to ensure that they have their interests and concerns taken into account as the public is given an opportunity to provide feedback to the scheme. Owners need to think long and hard about how the high speed rail link will impact on the remainder of their assets if the scheme gets built.” Fisher German’s specialist team has extensive experience of large infrastructure projects and is available to help anyone on or near the proposed route. If you believe that you might be affected by the scheme, contact Fisher German for further advice.

London

Fisher GERMAN Magazine


news&views General practice

Out of site, out of mind

The spate of mergers in the telecoms market is resulting in surplus sites and putting farmers who rent out their land under intense pressure to reduce rates

Landowners have benefited from the strong growth in the telecoms market over the last decade by leasing their land to telecom companies looking to erect their masts. With rent from a standard 15m mast in a rural area providing an annual income of up to £6,000, the venture has proved to be a lucrative form of diversification. But, unfortunately for farmers, a series of mergers in the telecoms industry, including Orange and T-Mobile and Vodafone and O2, has resulted in redundant masts and surplus sites through mast sharing. The Orange T-Mobile merger alone is expected to reduce the number of masts used by at least 5,000. This has prompted the telecoms companies to attempt to freeze or drive down rental terms or even renege on their leases. “Landowners have been put in an extremely difficult position and should be very wary about any moves by the operators who want to share sites,” says Chris Hicks of Fisher German. “Some of our clients have received letters from their tenants requesting a reduction in rent or even a threat to break a lease. We have negotiated on over 3,000 telecom sites on behalf of landowners and are now working to ensure that they get the best terms possible, despite the difficult market conditions. Landlords should exercise extreme caution when approached by tenants or their agents with a request to share or decommission sites. Before entering into any negotiation with the operators or their agents, they should contact Fisher German for professional advice.” Some landlords with portfolios of sites are finding it hard to cope with the constantly changing demands of the operators and Fisher German was recently appointed to manage the telecoms portfollios of Greene King, Westminster City Council, Wessex Water and Pinnacle Towers with a further two appointments to additional portfollios about to be made.

Fisher GERMAN Magazine

For further information contact Chris Hicks on 01858 411202


news&views

Tam Bream and Robin Eyles appointed to Pipeline Industries Guild company news

Since his appointment as national chairman of the prestigious Pipeline Industries Guild, Tam Bream (left), a partner in the utilities and infrastructure team at Fisher German, has been focussing on improving communications and increasing benefits for the Guild’s members. Tam, who has been involved with the Guild for 12 years, explains: “I’ve worked on ensuring that members get better value without an increase in costs. They also now have access to myself or another board member whenever they have issues they want to discuss.” Richard Price, customer engagement manager at Southern Water and deputy national chairman at the Guild, adds: “It is a great pleasure working with and supporting Tam. His energy, commitment and enthusiasm is a credit to him and highly beneficial to the Guild. He will be a hard act to follow.” Robin Eyles, a partner in Fisher German specialising in rural consultancy and general practice work, has been elected as chairman of the Eastern Branch. Robin says: “I have been involved with this branch since its inception four years ago and have had the pleasure of seeing the branch grow into an active and enthusiastic organisation.”

company news

David Merton chairman of CLA’s Derbyshire branch David Merton, a partner at Fisher German, is enjoying a successful year as chairman of the Derbyshire branch of the Country Land & Business Association (CLA). David, who specialises in rural consultancy at Fisher German, says: “Securing the future of the Derbyshire countryside for those who live and work there is something I feel strongly about. The CLA East Midlands has a unique position from which to be the point of reference for rural affairs.”

Fisher GERMAN Magazine


news&views

Fisher German pipelines team moves to Hungerford

The Fisher German pipelines team, originally based in Southampton, has relocated to Hungerford high street. Initially the office will look after all of the pipeline work previously carried out in Southampton and also the rural consultancy work carried out for Berkshire clients, including three estate management clients.

company news

As the Hungerford office is located on the M4 corridor and is closer to Fisher German’s office network, in time the office will be able to offer the full range of Fisher German services. To contact the pipelines team tel 01488 662750 email hungerford@fishergerman.co.uk

Fellowship for Fisher German’s David Legh David Legh has been awarded the prestigious RACS RICS Annual Fellowship in Rural Land Management for 2010. David received his award at the RAC, Cirencester, on 21 June. Specialising in estate consultancy and management, David, a farmer and estate owner himself, presented his fascinating paper 40 years of owning an estate – a retrospective and the challenges ahead.

Fisher GERMAN Magazine


news&views http://www.fishergerman.uk

SIte set high

Fisher German’s brand new corporate website has been launched. Developed with award winning digital design company World Archipelago, the site has undergone a complete transformation. The sharp new design incorporates the latest web technology and provides Fisher German launches superb navigation and functionality. Clients exciting new website will also notice the site’s impressive property search function. The six core sectors of service: general practice, renewable energy, property agency, utilities & infrastructure, commercial and rural consultancy are well signposted on the site which is extremely user friendly. In addition, the introduction of social networking facilities will provide greater reach and accessibility. Joint managing partner, Henry Sale, says that the design is unlike any of Fisher German’s competitors. “It offers clean, uncomplicated information, while retaining the level of professionalism and technicality that is expected by our clients. It marks another fantastic step in our progression.”

Fisher GERMAN Magazine


news&views

utilities & infrastructure

National Grid appointment for Fisher German

For further information contact Amy McSorley on 01530 410867

10 Fisher GERMAN Magazine

National Grid has appointed Fisher German as land agents to its Hole House Farm Reinforcement Project. A new 3.25km, 900mm diameter, high pressure gas pipeline is planned at Hole House Farm, Cheshire, with construction due to start in Spring 2011. The pipeline is part of an expansion of gas storage facilities in former brine cavities to provide additional energy security in the face of declining gas production in the North Sea. The pipeline will reinforce supplies to EDF’s gas storage cavities in the area and will allow a greater volume of gas to be transported into the transmission system.


news&views

renewable energy

Going with the wind Fisher German’s wind energy team continues to see a rise in medium scale wind turbine enquiries and currently has planning instructions for 28 turbines and over 33 instructions for feasibility reports. This is in addition to the 150 wind farms the firm has been involved with to date. Hallmark Tractors, a renowned supplier in the farming community and distributor for small wind turbines, is also now using Fisher German for many of its planning applications. Fisher German is busy with other renewable energy projects too. The firm has won planning permission for a 500kw anaerobic digestion project and has two instructions for solar park projects.

For further information contact Mark Newton on 01858 411215

Fisher GERMAN Magazine 11


property agency

Residential

Technically speaking A technical revolution has transformed the property market. Stuart Flint reveals the opportunities the new era brings and how agents should complement today’s technological tools

12 Fisher GERMAN Magazine


property agency

W

hat a difference 10 years has made to how residential properties are marketed. Buyers, vendors and agents now have a multitude of tools available to assist their property journey, such as Google Street View, property portal websites listing properties available globally, video tours and Land Registry data detailing every sold price. Not forgetting iPhone and iPad applications. However, selecting the most appropriate technology to market properties from the bewildering assortment available and using it wisely is an art in itself. Twenty years ago, most estate agents used card boxes. Each hand written card detailed the contact details for a potential buyer and matching was done by hand, sometimes quite slowly. Relevant property brochures were then posted first or second class. Now, however, highly sophisticated software such as RPS, which Fisher German installed in 2010, makes the property matching process virtually instantaneous. This pc based contact database system instantly identifies potential purchasers and emails the relevant property details to them within seconds. Viewings can be set up within a matter of hours, propelling the whole selling process forwards. Human input, however, should not be underestimated. The best agents are equipped with the key communication skills and personal touch, vital in what could be an impersonal environment. Many property transactions are complex and the telephone is still the prime tool of the professional agent. Fisher German has just launched its new website which has the latest applications to facilitate finding that perfect property. However, ensuring that the best price is negotiated for the vendor is still the agent’s domain, and a careful approach should ensure that the buyer is so delighted with his or her purchase that the sale goes through trouble free. An agent’s communications skills are essential to each and every transaction. Technological advancement means that sellers now have much more choice when selecting an agent. A pretty window on a local high street is no longer necessary. However, an agent with great local knowledge, a purchaser profile and a first class understanding of the new platforms available to market properties are key. Seventy per cent of households in the UK now have online access, that is over 18m households that can conduct a property search from the comfort of their own homes. Fisher German lists properties on a number of communal websites that give vendors and purchasers a global audience. Rightmove, for example, is ranked in the top 20 most visited websites in the UK, ahead of giants such as Yahoo. This site attracts a staggering 40m users a month. Visits via such portals are often the start of highly effective emarketing, using that all-important contact database. At the touch of a button, hundreds of applicants can be emailed brochures, sent web links or given property updates. Websites such as UpMyStreet.com offer a vast array of neighbourhood information including schools, crime statistics, historical house price data and even how many miles it is to the nearest train station, bus stop or shop. Google Earth was revolutionary for potential purchasers but Google Street View can now take a buyer right to the front of a home in which he or she is interested and move along and across the street to see the area surrounding the property. These devices have reduced viewing volumes but, happily, vendors now encounter more serious buyers at viewings as research on both the house and its area have usually been conducted from the comfort of the buyers’ homes. So is it time for agents to hang up their boots? Far from it. The same, if not more, information needs to be compiled and must be delivered professionally, in a user friendly manner at speed. Prime web listings are very costly for agents but vital; a huge proportion of the market exposure is lost without them. As agents we cannot work miracles, particularly in a challenging market, but we need to know, and our clients need to be assured, that we have left no stone unturned. l

Google Street View can now take a buyer right to the front of a home in which he or she is interested” For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

Fisher GERMAN Magazine 13


property agency

The Heads Farm Estate

Estate case studies

Fine estates of affairs

The vital statistics The Brecon Estate T Land area Number of lots Distance from London Guide price for whole Status Fisher German offices

The country estate market is riding out the recession with purchasers chasing properties, says Stuart Flint

D

uring 2010, Fisher German has been very busy in the estates market. The firm has acquired several estates for clients, some after lengthy searches, and has been pursuing a number of sales, some privately, others placed on the open market. The Brecon Estate and the Heads Farm Estate were two of this year’s instructions and, while both stunning properties, they appeal to different markets. The Brecon Estate is located amid spectacular countryside between the Brecon Beacons and Hay-on-Wye, and the Heads Farm Estate is beautifully situated on the edge of the Berkshire Downs. These two prestigious estates were launched onto the open market in 2010; both have a multitude of attractions. The extensive Brecon Estate nestles amid rolling hills and small valleys in the Welsh borders. It is a first rate farming estate with eight let farms, eight houses and six further cottages. The mixed farms support a range of arable cropping, while beef and sheep enterprises are grazed widely on the extensive pastureland. There is also some spectacular shooting set around 200 acres of mature estate woodland. The Heads Farm Estate lies on the edge of the village of Chaddleworth and has exceptional views over the Downs. It is a diverse residential estate with a substantial principal house and seven further residential properties. In addition to extensive stabling and multipurpose outbuildings there is a good mix of pasture and productive arable land, all with vacant possession. The estate includes a charming village cricket pitch. The Brecon Estate has attracted wide interest. Demand for the whole has been dominated by investors, a few private individuals among them, but predominantly institutional investors who are

14 Fisher GERMAN Magazine

The Brecon Estate

1594 acres (645 hectares) 13 174 miles ÂŁ15,000,000 For sale Worcester


property agency

The Heads Farm Estate 704 acres (285 hectares) 10 63 miles ÂŁ9,250,000 Sold Market Harborough and Banbury

Good farming estates will continue to attract hungry investors accepting low yields� always keen to consider estates of this size for their portfolios. A greater level of interest and offers have, however, been generated in the individual lots and it looks increasingly likely that the estate will be divided to achieve the optimum overall result. Much demand has come from existing farmers looking to consolidate operations; this, in turn, will bring some attractive smaller farms in the region onto the market. In contrast, during the short time that the Heads Farm Estate was available prior to an exceptional sale outcome, demand for the whole dominated enquiries. This is perhaps to be expected when there is a quality principal house but is not always the case. The Berkshire address and the proximity to the M4 and London is undoubtedly a major factor in attracting country house buyers looking for a lifestyle purchase rather than just a productive agricultural holding. Motorway and airport access can be more important than crop yields to high net worth individuals looking for their country seat. The two properties have different dynamics but the patterns for estate sales are notoriously unpredictable and marketing campaigns need to be flexible and very carefully conceived. The fickle nature of the market has much to do with the supply shortage. Potential estate buyers looking in a confined geographical area are likely to face years of futile searching. Success is most likely by way of a private purchase but there are precious few opportunities and they can be easily missed if there is just one more active buyer stalking the market. While the challenging residential property market persists, the estates market continues to shine. Good farming estates will continue to attract hungry investors accepting low yields and often looking to solve a roll over conundrum. Well managed estates with good houses will always be eagerly contested by a wealthy target audience. The Brecon Estate and the Heads Farm Estate have been two highlights of a good year for estates sales but, as might be expected, there is no sign of improved liquidity in the sector. l For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

Fisher GERMAN Magazine 15


property agency Residential

2

1

3

4

5

6

A fair to middling market

Despite challenging market conditions the middle market is performing reasonably well. Alasdair Dunne reports

16 Fisher GERMAN Magazine

T

he residential property market has been challenging, to say the least, over the last three years. Mortgage criteria have been onerous and, although liquidity is showing signs of improving, lending is still tight. Different price brackets in the residential market have their own concerns to contend with, which is still putting the brakes on property sales generally and the low and high ends of the market specifically. However, perhaps surprisingly, the middle market has proved to be much more resilient and is achieving better sales. The middle market, in terms of Middle England, is defined as houses marketed between £500,000 and £1m. While selling houses in this price range has hardly been easy, there has been more activity and more deals have been done in this bracket than in any other in 2010. The lack of movement at the lower end of the market is largely rooted in concerns over job security and lack of available funding. This is both deposit funding from people’s cash reserves and problems associated with obtaining mortgage finance.


property agency

7

8

9

10

11

12

For further information contact Alasdair Dunne on 07501 720412 or email alasdair.dunne@ fishergerman.co.uk

1 Sutton on the Hill, Derbyshire 2 Stone, South Yorkshire 3 Thorpe-by-Water, Rutland 4 Bednall, Staffordshire 5 Dingley, Leicestershire 6 Hulme End, Derbyshire 7 Carsington, Derbyshire

8 Claydon, Oxfordshire 9 Moreton, Oxfordshire 10 North Kilworth, Leicestershire 11 Market Harborough, Leicestershire 12 Chipping Warden, Oxfordshire

The middle market has proved to be much more resilient and is achieving better sales” The dynamics at the top end of the market are very different. With residential sales in excess of £1,000,000, the target buyers are generally well funded with a great proportion of equity in the purchase price. The lack of property available in the upper echelons is less to do with the availability of reasonably priced money: it thrives on confidence. The purchaser profile is private sector professionals and business owners who are more concerned about their ability to achieve their desired pricing and the wider economic picture generally. A significant proportion of high value house moves have been put on hold as potential purchasers batten down the hatches to consider their financial futures and the likely sale prospects for their property. Fisher German has seven times as many potential buyers on its applicant database looking to spend £500,000 to £1,000,000 as opposed to £1,000,000 to £2,000,000. While the price difference dictates that there will inevitably be a relatively big variance in potential purchasers, this is far larger than normal. Top end purchasers have become increasingly lethargic, while middle market buyers appear

to be fed up of treading water and are keen to move forward. For those with a sense of job security, their financial position feels strong, probably thanks to a sustained period of making low repayments on a tracker mortgage. Within the middle market the well maintained and nicely presented houses, whatever their age or style, are attracting the most interest and generating the best price results. Prospective purchasers are keen to cap their investment and are often happy to upsize and stretch themselves provided they perceive fair value, but many are deterred by the uncertain costs associated with refurbishment projects. Property that involves extensive refurbishment needs a keen guide figure in this price sensitive market. The prognosis for 2011 is difficult to predict. However, more and more people are increasingly keen to move. If the supply of properties increases in early spring then market activity should definitely increase. And while a dynamic market may still be some way in the distance, the middle market, in particular, should gather pace. l

Fisher GERMAN Magazine 17


property agency Crown House C. 1972

Crown House 2010

Commercial

Expert advice is key when renting or selling commercial property in today’s challenging market

A professional perspective

F

isher German offers an expert and professional service to commercial property owners of all sizes serviced from a range of prestigious market town office locations. Its experienced team of commercial surveyors also offer a full range of commercial agency, professional and valuation services. Crown House is a great example of the quality commercial property agency work that Fisher German undertakes. A prestigious, landmark building in the centre of Worksop, Nottinghamshire, Crown House is currently undergoing extensive refurbishment. The property, which had been empty for two years, was recently purchased by Hurstwood Holdings, a North West based development company. Fisher German’s local knowledge and proven track record in letting office and retail space in these difficult economic times were the main reasons for Hurstwood Holdings employing the firm to advise on the re-letting of Crown House.

18 Fisher GERMAN Magazine

Crown House is located in a prominent position close to the main retailing area of the town and opposite the bus station. Divided over three floors with floor plates of circa 539m2 (5,802 sq ft), the property offers a mixed use scheme with retail units on the ground floor and offices to the first and second. Kevin Benson, partner at Fisher German, comments: “The challenge is balancing the space available, occupier demand and the likely rents against the cost of the overall refurbishment. It is also important that we advise our clients about the tenant profile likely to occupy such a space. This is where local knowledge, coupled with broader regional and national experience, is invaluable. “The cost of splitting the offices into smaller units, the management of these areas and the loss of lettable areas led us to the conclusion that the offices would be better split into individual floor plates capable of further division. The installation of a lift to make the building DDA compliant and a new access from


property agency

Crown House is a great example of the quality commercial property agency work that Fisher German undertakes” Newcastle Avenue, the main thoroughfare, were seen as key in attracting interest to the upper floors. “On this point, we applied lateral thinking to the types of employers who might occupy such a building and have been in contact with government departments, medical organisations, alternative therapy and leisure employers.” The offices in Crown House are largely open plan with cellular offices to the rear of the building and are fitted to a good specification, comparable with that of competing second hand offices in the surrounding towns and cities. As the relatively large area of the ground floor did not lend itself too well to the secondary nature of the retail space, smaller retail units with multiple access points were introduced to meet the demand from smaller local retailers. The space is flexible, however, and could be let to a larger national occupier. Interest in Crown House has been excellent so far with terms out to a potential tenant for the whole of the first floor. l

For further information on this development or to discuss any aspect of commercial property contact Kevin Benson on 01777 719148 or email kevin.benson@ fishergerman.co.uk

Specialists in commercial property and land advice including: agency – sales, lettings and acquisition; rent review and lease renewals; valuation; landlord and tenant; property management; and

development. clients include: occupiers; pension funds; investment companies; developers; business owners; and private clients.

Fisher GERMAN Magazine 19


feature | rural consultancy

In the higher scheme Intensively farmed operations are rarely eligible for entry to HLS Schemes but, with James Goodson's help, Wootton Marsh Farms bucked the trend

Did you know l more than 6.3m hectares (over two thirds of England’s farmland) are in agri-environment schemes (more than 44,000 Environmental Stewardship agreements covering 5.5m hectares plus predecessor scheme agreements are still in force covering approximately 820,000 hectares); and l 26,000 Entry Level Stewardship agreements are due to expire in 2010/11.

20 Fisher GERMAN Magazine


rural consultancy | feature

C

ontrary to popular belief, Higher Level Stewardship Schemes (HLS), run by Natural England, are not limited to areas of historical importance or Sites of Special Scientific Interest. Of course, farms with naturally occurring features or habitats are usually in Entry Level Stewardship (ELS) with some being eligible for HLS, but well managed farms producing intensive crops such as onions, sugar beet and potatoes, as well as cereals and oilseeds, it is fair to say, are rarely granted entry into HLS. Wootton Marsh Farms, located north east of Kings Lynn in Norfolk, is one of those rare cases. Managed by Andrew Lensen, from the Velcourt farming group, and owned by Sarah Keene and her father Tony, the farm is a highly productive unit that grows high value crops. However, like many farming businesses, the management team at Wootton Marsh were mindful of the aims of the Campaign for the Farmed Environment (CFE), its objective being to retain and exceed the environmental benefits previously provided by set aside. There were also concerns about the effects on the business of potential future legislative requirements such as the implications of the Water Framework Directive, Nitrate Vulnerable Zones (NVZs), and potential changes to Local Environment Risk Assessment for

Pesticides (LERAPS) aquatic buffer zones. Like many other farms, the business was already in ELS and also had an additional Countryside Stewardship Scheme (CSS) that was soon to expire. In considering the aims of the CFE and trying to pre-empt potential future changes in legislation, James Goodson of Fisher German’s farming department, proposed that Wootton Marsh Farms

Gerry from Natural England who was keen on supporting the scheme as there are various important bird species on the farm – the Marsh Harrier is just one visitor to the holding. The various options in the scheme include an area of 20 hectares of overwintered stubbles and wild bird seed mixture plots which should be very beneficial in providing some winter feed to birds. Areas of historic importance were also found after studying the local Historic and Environment Record maps, these are ancient saltern mounds (mounds of waste material from salt production) and evidence of Late Iron Age and RomanoBritish settlements and activities. More modern historic sites found were areas associated with World War II, such as searchlight batteries and tank bunkers. The various capital items included in the scheme consist of fencing around fields that have been reverted for historic reasons and numerous otter holts (shelters for these rare mammals) along the River Babbingley, a minor river in the northwest of the county that runs from its source at the village of Flitcham to Wootton Marshes where it terminates. The scheme was drawn up mindful of the productive capacity of the land and once it was confirmed that the most productive areas of the farm would not be affected, the owners and Andrew Lensen and Douglas Inglis from Velcourt farming group agreed to instruct James to press ahead with the application. The agreement went ‘live’ in October this year. “This agreement has been particularly rewarding for all concerned as it shows how the combination of a successful business growing high value crops can successfully run alongside Natural England’s desire to deliver significant environmental benefits in high priority situations and areas,” says James. l

Wootton Marsh Farms' team were initially surprised about the benefits of the scheme available to an intensively managed farm” applied for entry into HLS. As the Wootton Marsh Farms' team were initially surprised about the benefits of the scheme available to an intensively managed farm, James produced a report on just how the scheme could be of advantage to the farm and how it could help to address possible future legislative requirements, as well as potentially adding additional income to the farming business. James then consulted with Roger

Applying for HLS HLS aims to deliver significant environmental benefits in high priority situations and areas. Natural England has produced a set of targeting maps to increase the environmental benefits delivered through HLS. The maps are the first systematic joining together of information on biodiversity, landscape, natural resource protection, public access and historic interest. The HLS scheme is usually combined with ELS or OELS options and can contribute to a wide range of capital works such as restoration of hedgerows or farm buildings. Applicants need to demonstrate good environmental management for a target area or themed feature. HLS agreements last for 10 years with payments made every six months. For further information contact James Goodson on 01636 642507 or email james.goodson@fishergerman.co.uk

Fisher GERMAN Magazine 21


feature | rural consultancy

A strategy for success Running a farm or estate is a huge responsibility but professional advice can help to lighten the load, advises Henry Sale

22 Fisher GERMAN Magazine


M

any individuals successfully run a farm or estate enterprise. However, occasional input from a consultant with relevant business experience can be of great benefit. An impartial review of an estate’s existing strategy can produce suggestions that will improve its performance enormously. Some farm and estate businesses are run without a clear strategy and, as a result, they lose their focus and consequently performance dips. The decline may take a number of years but its impact on the business is still negative. When running or managing an estate there are a number of key issues owners need to consider that will alleviate their ever increasing burden of responsibility.

People Impartial third party involvement can reinvigorate relationships between owners, employees and tenants. This involvement can reap rewards and get flagging estate businesses back on the road to recovery and a positive business performance.

Family Most farms and estate businesses are owned by a family and very often have other siblings with financial interests. Managing these interests is a critical part of making a business succeed. If the whole family understands the business strategy and future plans for the estate it is easier to get everyone onside when any difficult decisions need to be made.

Risk profile Every business has a different view as to what is a reasonable level of borrowing but there must be a strategy to repay this.

The estate might need external intervention to realise that it needs to adopt a different strategy” Income requirements A healthy estate is dependent on sources of income. The question that should be asked is whether the estate is making the most of its assets? Sometimes it is difficult to concede that the current strategy is not working and a new one is needed to move the estate into profit.

Investment criteria What rate of return is being achieved from the estate’s investments and can these be improved upon? The estate might need external intervention to realise that it might need to move in a different direction.

Succession It is crucial that an estate is in good order to pass on to the next generation. It is not just a business but a passion and gift which is handed down from generation to generation. It should be inherited in a good position so that the next custodian is proud and excited about the estate’s future.

Core property It is often helpful to identify certain property which could be sold off to assist with investment in other projects or restructuring. In some instances it can take many years to achieve a position where a non core property can be sold. Although the objectives of a plan may be fixed, the route to achieve this will often change due to circumstances. An estate’s business plan and strategy must have the flexibility to cope with this. The rural economy will be subject to some huge variations in profitability over the next few years and this will necessitate the need to change. Fisher German's professional skills and experience of working with many farms and estates means that it is ideally placed to help owners develop a business plan and a strategy that will deliver their objectives. Too many owners are faced with a bewildering array of advice, much of it conflicting, and it can be difficult to see the way forward. However, a good external consultant can give owners the confidence to make the necessary decisions to move their businesses forward. l

For further information contact Henry Sale on 01858 411217 or email henry. sale@fishergerman.co.uk

Fisher GERMAN Magazine 23


feature | renewable energy

A green light The CSR has proved to be mostly good news for those involved in the renewable energy sector. Henry Sale looks at the highs and lows of the review

C

hanging the rules after the game has started seems to be the direction the Government is taking following the spending review, but then this was bound to be the case with a new Government and a coalition one at that. However, Fisher German is still extremely confident about the prospects of the renewable energy sector and it is still firmly on the Government's agenda – the aim remains for the UK to produce 15% of energy from renewables by 2020. At the time of writing this article, the following direction had been given on the effect of the spending review on energy and climate change.

24 Fisher GERMAN Magazine


The Government has pledged £400m for green heating schemes”

Renewable Heat Incentive Chancellor George Osborne said: “RHI will go ahead to simulate a tenfold growth rate in the sector.” The Government has committed £860m to ensure farmers, landowners and other operators will be paid premium prices for every unit of renewable heat they produce. The funding will come from the Government through annual management expenditure. This funding will ensure the UK meets the 2020 target while making efficiency savings of 20% or £105m a year. It was not clear, however, if the 1 April 2011 introduction date would be met and early indications suggest 2012. The Government has also pledged £400m for green heating schemes. Fisher German believes that this is excellent news for clients who can generate heat from clean energy sources such as solar and ground source heating systems. Following this announcement, the Country Land and Business Association President, William Worsley, commented: “The RHI will transform the woodfuel market, resulting in better management for Britain’s woodlands and helping to create and manage wildlife effectively.”

Feed in Tariffs (FiTs) FiTs, which pay farmers and landowners for every green unit of electricity they produce, may be rebalanced in order to save £40m by 2014/15. This means that the levels of FiTs may change for certain technologies but it is still too early to say which technologies will be affected. Any changes to FiT levels should not be implemented until the first scheduled review of tariffs,

which takes place in 2013. The aim of this rebalance is to focus on the most cost effective technologies. Fisher German’s message to clients is the same as it was when FiTs were first announced. If a farmer or landowner wishes to introduce a form of renewable energy on his land which benefits from the higher FiT levels then he should have started the process already. If the process has not been started it should be started immediately or the opportunity could be missed.

Green bank A 'proper' bank is being set up with £1bn of government funding which will be raised from the sale of government assets. The success of this bank will also be very much dependent on raising private capital through private sector financing for green infrastructure projects. By setting up this bank, the coalition hopes to create jobs, reduce carbon emissions and help meet the UK’s target of 80% reduction in emissions by 2050. Fisher German is confident that the motivation from private investors is there to provide finance. Henry Sale, joint managing partner at Fisher German, comments: “We have been in discussion with numerous banks and private investors over the last few years who are very interested in funding such projects. The problem arises when the goalposts are changed as no private investor wants to invest in an unknown. A more complete picture and clearer direction on the most profitable forms of renewable energy will be needed before the money is offered.”

CSR Where does the spending review leave Fisher German clients who have already embarked on renewable energy projects? Solar panels Ground source heating On farm anaerobic digestion Small to medium wind turbine Wind farms onshore Wind farms offshore Hydro schemes The thumb neutral is not negative, it just means that more guidance will be needed before a full assessment can be made. Certain on farm anaerobic digestion plants and wind farms are still very viable. Fisher German can advise further on the pluses and minuses for individual clients.

Other investment There will be over £200m for the development of low carbon technologies including offshore wind technology. Fisher German’s joint venture, Fisher German Priestner, is already involved in a number of offshore wind projects and can advise any interested parties further on this. l

For further information contact Henry Sale on 01858 411217 or email henry.sale@ fishergerman.co.uk

Fisher GERMAN Magazine 25


feature | teamwork

W

inning planning permission to convert modern agricultural buildings in the open countryside for commercial development is a complex and often lengthy process. However, with professional advice the development potential of a site can be achieved in a timely and efficient manner. Fisher German recently harnessed its professional resources from several offices to ensure that the development plans for Alkerton Oaks Business Park came to a smooth fruition. The business park is part of Upton Estate which sits in 2,000 acres of countryside on the Oxfordshire/ Warwickshire border. The estate runs an inhand farming business, residential and commercial lets and has a thoroughbred stud with racing stables. Fisher German has provided a wide range of professional advice to the estate for a number of years. While the estate's inhand farming operation is very successful, it is also a market leader in terms of diversifying its business. The estate’s central location, close to the M40, prompted Paul Clayson of Fisher German and Rob Allan, the estate manager, to discuss converting the redundant dairy buildings for commercial use. The idea was passed to Marcus Blake at Fisher German who has great local knowledge of the area. Marcus then worked with the Planning Department of Cherwell District Council to achieve a change of use from a dairy unit to a business park. By steering the project through the planning process, and using a number of successive applications to establish, and then expand, the overall development, Marcus ensured that the design, layout and use of the buildings would be more aesthetically pleasing, which won the local council over. The site with planning permission was

It’s good to be green Many businesses now feel they need to offset their carbon footprint in as many ways as possible. Renewable heat is provided to tenants at Alkerton Oaks via a biomass woodchip boiler which utilises woodchip from the estate’s woodland. Fisher German oversaw the procurement and build of the boiler as part of the Alkerton

26 Fisher GERMAN Magazine

Fisher German drew on its considerable professional resources to manage the build and development of a high spec business park at Upton Estate

At your Oaks development. Tenants at the business park benefit from cheaper heating costs than those of traditional fossil fuel and can promote a green ethos to their clients. A similar biomass woodchip boiler installation was also undertaken by David Legh of Fisher German for the Thorpe Estate near Tamworth.


teamwork | feature

service The end result is modern, high specification space with excellent flexibility”

A satisfied customer “This is a flagship development offering exactly the package from which to operate and develop our businesses,” says Andrew Bamber, project manager at SGS United Kingdom, a business tenant at Alkerton Oaks. “It ticks all the boxes in offering high quality accommodation in an environment that we are proud to bring our clients to.”

then passed to Richard Vincent, a building consultant at Fisher German, for his advice. “When Paul raised the idea of converting some of the estate’s old farm buildings to create a business park, I knew that Fisher German had the building, planning, local knowledge and project management skills for the scheme,” explains Richard. "The prominent position of the buildings next to the main road made the idea extremely viable and we aimed to develop high specification space with great flexibility." However, Richard’s structural appraisal revealed that a number of the redundant farm buildings at Upton were not suitable for conversion. “Converting the old portal frame buildings for change of use to modern day building regulations and standards would have been more expensive than starting from scratch, so we decided to take down two of the existing structures and start again,” says Richard. The project was worked and re-worked a number of times by the building consultancy department until the client was happy with the overall development. “This is often the case with commercial developments, due to ever changing markets,” Richard explains. “After consultation with the client we decided that a design and build contract would allow the necessary development of the initial design into a cost effective build solution, with Fisher German acting as the clients’ agents overseeing the project management. We chose Watson and Cox, as they have great local knowledge and excellent design, build and relationship skills,” says Richard. The end result is modern, high specification space with excellent flexibility in terms of space available (from 200 sq ft to 20,000 sq ft) and a mix of office, industrial and storage accommodation. “The business park is a unique and exciting development with the standard of accommodation matching the excellent location,” notes David Powell of Fisher German, who helped to manage the construction of the business park and the letting of its units. “Alkerton Oaks must be considered by any business looking to move to new premises or relocate to the Central Midlands.” For further information on the accommodation at Alkerton Oaks please see: www.uptonestate.co.uk/index.php/ light-industrial l For further information contact Richard Vincent on 01530 410819 or email richard.vincent@fishergerman.co.uk

Fisher GERMAN Magazine 27


feature | commercial

planning to succeed The importance of an experienced planning team cannot be underestimated when applying for permission to build a renewable energy project. Naomi Light advises on how to plan for success

28 Fisher GERMAN Magazine


C

urrent planning policies and the Government Feed in Tariffs (FiTs) initiative are enabling many farmers and landowners to slash their energy bills and bring in additional income through renewable energy. However, while there is enormous scope for farmers and landowners to benefit from such schemes, the planning process can be far from straight forward. The Fisher German planning team works closely with its clients on planning applications for renewable energy projects nationwide and has enjoyed many successes on projects as diverse as wind turbines, photovoltaic panels (PVs) and anaerobic digestion (AD) plants. The planning team was recently involved in the exciting project for permission to establish a 500kw AD facility with silage clamp at Stetchworth Estate Farms. The 1,335 hectare estate, at Newmarket, on the Cambridgeshire/ Suffolk border, is owned by the Marquis of Stafford and has won a number of awards for utilising environmentally sensitive solutions

as part of its farming methods and estate management. However, keen to move towards a minimal carbon footprint, the estate, with the help of Fisher German, was keen to focus on renewable energy solutions for its farm power requirements. “As the digestion facility relies solely on energy crops that are grown within the estate we could overcome a number of problematic planning considerations, such as additional traffic movements and the importation of waste materials usually associated with AD facilities. This was all very positive for the project,” says Naomi Light, associate planner at Fisher German. An important part of Fisher German’s remit when applying for planning permission is to establish a good relationship at the initial stages of the project with both the Environment Agency and the local council to iron out any potential problems before the planning application process even starts. “Building a close relationship from the outset helps identify and address any issues. This means minimal delays when applying for planning permission,” explains Naomi. l

Planning process Fisher German prepared a number of additional documents to support the application, including: l an initial screening opinion; l an ecology survey to check the site and surrounding area for protected species flood risk; l a drainage survey; l a transport assessment calculating additional traffic movements as a result of the development; and l a landscape assessment to show how the AD plant was screened and hidden from the surrounding area. Planning permission has been granted for the Stetchworth Farm Estates which should see great benefits from its AD plant. “The end waste product is a valuable fertiliser and will be used as a substitute for chemical fertilisers in the production of the energy crops,” says Naomi. “While Stetchworth Farm Estates has chosen a plant to meet the farm’s electricity requirements, any excess energy will be fed back to the National Grid providing additional revenue for future farm projects.” Although Stetchworth's proposals do not consider using the excess heat, Fisher German is dealing with other applications for AD plants which will be able to supplement heating in nearby residential properties, outbuildings or even open opportunities for future glasshouses. This is an area for future consideration and investment when researching benefits from AD.

For further information contact Naomi Light on 01530 410854 or email naomi.light@ fishergerman.co.uk

Fisher GERMAN Magazine 29


feature | rural consultancy

Make the

most W

hile it may have taken longer to impact on UK agriculture than first expected, the rapidly increasing world population and sophistication of diets in the developing world has forced a substantial increase in food prices as shortages in supply occur and soft commodity prices have spiked at levels which are generating farm business profit levels which have not been seen for more than 10 years. These market conditions should continue for the foreseeable future and landowners are advised to move their business focus to their land once more.

30 Fisher GERMAN Magazine

of your

Landowners should move their business focus to their land once again�

Agricultural land portfolios will benefit from intensive, professional management, not just because this will generate exceptional returns in high price years, but also because it will mitigate against deficits in lower price years. The supply of soft commodities to meet this rising demand will continue to fluctuate substantially between years due to the increasing extremes of weather and crop planting patterns. Supplies of raw materials into arable crops and feedstuffs into livestock systems

will also fluctuate and will continue to peak and trough in a cycle which does not necessarily match the output price cycle. This new market environment will give estates and other land owners the opportunity to bring their agricultural assets up to a performance level which again exceeds returns available from their other, commercial, residential or diversification assets. l


For an informal discussion on how to maximise the performance of your agricultural estate contact Richard Sanders on 01858 411234 or email richard.sanders@ fishergerman.co.uk

assets Farming profitability is hitting levels not seen for more than 10 years. Richard Sanders advises landowners to focus on maximising the returns from their land Key elements to maximise margins: l top husbandry performance levels – the

difference between the best and worst performance levels is extreme; l crop marketing systems which are effective in an extremely volatile market. Accepting a good average above the cost of production will not be good enough; l use of technology to minimise crop input requirements. Enterprise variable costs will rise to a level which will warrant capital investment in technology to reduce application rates; l good cashflow management – higher costs will require significantly greater cash investment. At the same time, crop sales decisions must be divorced from cash requirements to

allow effective crop marketing systems to operate; and l efficient administration systems. Bureaucracy will continue to be a burden on business managers and will distract them from focusing on the issues above, unless robust systems of administration are put in place. There is still some way to go in terms of optimising the crop marketing systems available to farmers. Fisher German is developing longer term working relationships with professional marketing groups and sophisticated commodity trading businesses with a view to offering marketing options to our clients. They will then be able to take advantage of price fluctuations between

and within years and extract more of the margin available between the grower and the end user. Fisher German is also working with soil nutrient management specialists and variable rate application software providers to improve the “on the ground” implementation of soil nutrient test results to reduce and optimise applications of fertiliser products. This new environment of periodic tightening of supply will provide the opportunity to generate substantial returns from well managed farm businesses. However, these same businesses will also need systems in place to mitigate the effects of periodic oversupply which may, as before, coincide with a period of high input costs.

Fisher GERMAN Magazine 31


feature | utilities & infrastructure Linewatch can help to minimise risk of damage from high pressure pipeline ruptures

potenti explosive situation

U

tility companies dig around 4m holes annually in the UK, and every year there are a number of near miss situations where work is being carried out close to high pressure pipelines without the operator’s consent or knowledge. The potential for third party damage rises sharply where pipelines enter urban areas or are sited close to communication routes. Damage to underground services is highly dangerous, expensive and causes considerable disruption and delay to work. In other parts of

32 Fisher GERMAN Magazine

One way of mitigating exposure to such a disaster is to use the Linewatch service managed by Fisher German� the world ruptures have resulted in injuries and, in extreme cases, fatalities. Serious environmental damage also often results from a rupture and there are inevitably significant financial implications for the party that caused the damage.

One way of mitigating exposure to such a disaster is to use the Linewatch service managed by Fisher German. Linewatch promotes a greater awareness of the high pressure, buried oil or gas pipelines in the UK owned and/or operated by companies who, between them, represent the majority of oil and ethylene pipelines in Scotland, England and Wales. Linewatch also advises on the safety precautions necessary when working


Fact file

potentially For further information contact Kevin Bosanquet on 01488 662755. www.linewatch.co.uk

The consequences of damage to an MAHP Twenty five people were killed and 150 seriously injured in Ghislenghien when a high pressure gas MAHP was damaged during the construction of a factory car park. The damage went unnoticed for 14 days until the pipeline ruptured and caused a massive explosion. Kevin notes: “The consequences of an incident are potentially catastrophic. Apart from the potential for a massive pollution event (some of these pipelines have the potential to pump a million litres of petrol an hour!), there is also a very real threat of fatalities and serious injury. The Ghislenghien incident and the gas pipeline explosion in San Bruno, California, on September 10 this year where eight people died, are graphic reminders of this.”

l failure to comply with safety

rules and regulations could cost a company as much as £15m or more if prosecuted by HSE; l the 15 members of Linewatch account for some 5,961km of buried pipeline conveying the transportation fuels, chemicals and gases; l all pipelines operate at high pressure, typically in excess of 66 bar, some up to 100 bar; l the pipelines range in diameter from 100mm to 406mm and usually have a black coating; and l the pipelines are predominantly cross country but are also found in street works where they either cross or run down the road in both rural and urban areas. In 2009, a total of 201 unauthorised works were recorded by Linewatch. In slightly different circumstances these incidents might have led to major accidents.

near the pipelines, helping to protect both personnel and the environment. Kevin Bosanquet, Linewatch manager, of Fisher German, explains: “Linewatch has had great success in reducing the number of near miss incidences to pipelines in recent years. We’re particularly proud of the work that we’ve done with BT and SSE in helping the company to reconsider its procedures. We’ve just signed up Star Energy to Linewatch, our fifteenth member, and are looking forward to further increasing our membership.” The consequences of a near miss were highlighted in 2007 in the UK. High pressure natural gas MAHPs were uncovered during the construction of an extension to an office car park. The unauthorised work was noticed by an inspector from the pipeline operator visiting an adjacent site and he put an immediate stop to work, preventing a potential disaster with devastating consequences. Due to his negligence the client, who had no experience of managing construction risks close to MAHPs and had no concept of the potential damage that could have been caused, faced an increase in insurance premiums, lengthy delays to the construction work, replacement of the pipeline marker posts and cathodic protection and a detailed investigation by HSE. If the construction work had caused an explosion and injury or death, the client and groundwork contractor would have been put out of business by the costs and both would have been investigated for breaches of Health and Safety legislation and manslaughter. l

Fisher GERMAN Magazine 33


St Helens Knutsford Phone 01565 757970 knutsford@fishergerman.co.uk 2 Royal Court Tatton Street Cheshire WA16 6EN

Phone 01744 451145 sthelens@fishergerman.co.uk Rainford Hall Crank Road WA11 7RP

Stafford Worcester Phone 01905 453275 worcester@fishergerman.co.uk 2 Birch Court Blackpole East WR3 8SG

Phone 01785 220044 stafford@fishergerman.co.uk 2 Rutherford Court ST18 0AR

Hungerford Phone 01488 662750 hungerford@fishergerman.co.uk The Cuttings, 120 High Street, Hungerford RG17 0LU

Sectors and underlying services Commercial

General practice

Property agency

Building consultancy Planning Property consultancy Property management Sales & lettings

Compulsory purchase Expert witness Telecommunications Valuations

Auctions Development Equestrian Estates Farms Residential

34 Fisher GERMAN Magazine


Retford

Ashby de la Zouch Phone 01530 412821 ashby@fishergerman.co.uk The Grange 80 Tamworth Road LE65 2BY

Market Harborough Phone 01858 410200 harborough@fishergerman.co.uk 40 High Street LE16 7NX

Phone 01777 860755 retford@fishergerman.co.uk. 21 Exchange Street DN22 6BL

Newark Phone 01636 642500 newark@fishergerman.co.uk 12 Halifax Court Fernwood Business Park Cross Lane NG24 3JP

Banbury Thame Phone 01844 212004 thame@fishergerman.co.uk Market Offices North Street Oxfordshire OX9 3FP

Phone 01295 271555 banbury@fishergerman.co.uk 50 South Bar OX16 9AB

For more information visit: www.fishergerman.co.uk

Renewable energy

Rural consultancy

Utilities & infrastructure

Anaerobic digestion Biomass Eco friendly buildings Hydro Wind energy Solar pv

Estate consultancy Estate management Farm consultancy Farm management Sporting

Electricity Fibre optics Gas Linesearch.org Oil & chemicals Water

Fisher GERMAN Magazine 35


0800 1075522 www.fishergerman.co.uk


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.