Fisher German magazine issue 7 Summer 2011

www.fishergerman.co.uk

magazine

Summer 2011 | Issue 07

Systematic

approach Precise satellite imagery of fields is helping farmers improve yields and drive down costs

A professional perspective

Making the right move

Owning an estate puts land agents on the inside track

The reasons behind the national obsession with moving house

Taken to tax Renewable energy projects can help to reduce farmers’ tax bills

Andrew Jackson & Henry Sale, managing partners

Welcome Business acumen, clarity of thought and a proactive approach are vital in today’s challenging economy. While many businesses are struggling to survive, determination and drive has enabled Fisher German to expand its office network to 13 and our commitment to excellent client service has been rewarded with a strong flow of new instructions.

These include the disposal of UK Coal’s £54m property portfolio, the management of Total UK’s 230km petroleum pipeline and our involvement in 15 offshore wind farms and 150 onshore wind farms worth £2.25bn.

Our clients are at the heart of everything we do and we continue to serve them with unparalleled standards of service. This service was recently strengthened by Fisher German’s merger with John Sanders which boosted our national office presence and welcomed Christian Sanders, Morgan Aps and Matthew Barker as new partners. In addition, 21 surveyors were promoted to either partnership or associate level.

While market conditions remain difficult, we see new and exciting opportunities and have clear plans on how to continue to grow across our different sectors. We understand the need to stay true to the core values of our firm while embracing the necessary changes to better serve our clients. As always, we will ensure that we are best positioned to seize the opportunities of today’s environment while continuing to provide the highest level of service.

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In this issue news & views 04

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M ajor petrol pipeline contract secured for Total UK

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elping the Government relay its H oil pipeline Merger with John Sanders boosts office network Planning department is prospering Pipeline safety rules need research Grape expectations – rent a vineyard

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l

l

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rural consultancy 18 A professional perspective There’s nothing like first hand knowledge, says David Legh

20 Reaping precise rewards GPS and digital mapping give today’s farmers the technology for precision agriculture

features

04

10 The right skills set Expert sales and management techniques are needed when selling a large, diverse portfolio

12 Making the right move UK householders have a habit of moving home every five years for a number of reasons

14 Getting in the zone Enterprise zones can cut tax and simplify planning – but may not be good news for all landlords

16 Firm foundations

12

Good client relations are crucial in the challenging world of development

24 Taken to tax Renewable energy projects can cut farmers’ tax bills

26 An energetic market Clever design is key to saving energy

28 Where the wind blows Interest is high in offshore wind farms

24

30 There’s a PIG in the pipeline High tech devices keep the UK’s pipelines running smoothly

sector Spotlight

getty images

32 Sector insight 22 Consider your options Expert advice is crucial for successfully developing land

Fisher German experts provide food for thought

34 Sector directory Location and contact information for Fisher German offices

The Fisher German magazine is intended

to secure accuracy and cannot accept

to be an informative guide. It should not

liability for errors, fact or opinion.

be relied on as giving all advice needed to

Fisher German magazine is published by

make decisions. Fisher German LLP has tried

Grist. www.gristonline.com

30

Fisher GERMAN Magazine 3

news&views

A Total success Fisher German has won a major contract to manage Total UK’s 230km fuel pipeline

Helicopter patrols The three year contract includes full maintenance and management of the line, including the overhead helicopter patrols, as well as providing the first point of contact for landowners, emergency services, councils and other utility providers.

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Tam Bream, a partner at Fisher German and chairman of the Pipeline Industries Guild, says that Fisher German is delighted to have won the contract. “We have a great deal of experience with this pipeline as we were heavily involved in the planning and construction process.

This is a major step for Fisher German as we continue to expand our service provision and improve and update the service provided to Total.”

The contract will boost our knowledge of corporate clients’ requirements” Tam Bream, partner at Fisher German and chairman of the Pipeline Industries Guild

Boost knowledge Improving Total UK’s service will also expand Fisher German’s industry position, according to Tam. “The addition of this contract will boost our knowledge of corporate clients’ requirements, enabling us to better address their needs.” To accommodate the additional workload, the team has been expanded to three full time maintenance operators and a contract administrator. l

For further information contact Tam Bream on 01530 410809 or email tam.bream@fishergerman.co.uk

image source

Fisher German has secured the contract to manage Total UK Ltd’s 230km fuel pipeline, which runs from Immingham in Lincolnshire to the Buncefield Fuel Depot in Hemel Hempstead and from Colnbrook to Heathrow Airport.

The firm manages three out of four of the largest refined petroleum product pipeline networks in the UK and its 28 year experience of managing pipelines was a key factor in winning the contract. The firm’s utilities & infrastructure department will be responsible for full land and emergency response management for the Total underground pipeline.

news&views

The existing pipeline must be replaced to avoid the risk of leaks

Drawing The line Fisher German is working with OPA and local authorities on a major GPSS project in the south east Fisher German’s utilities & infrastructure department is working on a major project for the Oil and Pipelines Agency (OPA). OPA manages the nationwide network of oil pipelines, known as the Government Pipelines and Storage System (GPSS), on behalf of the Ministry of Defence (MOD), and has instructed Fisher German to deal with all land agency matters that relate to the relay of 28km of oil pipeline which runs between Tonbridge in Kent and Godstone in Surrey. Fisher German acts as retained land agents for the agency.

“The project is very exciting as it is the longest relay of government pipeline for 30 years and is the first to require the MOD to make a planning application for such works since losing Crown immunity from planning legislation in 2006. We prepared the application and submitted it on the MOD’s behalf,” says Matthew Willoughby of Fisher German. “It’s been a stimulating and informative process for the entire project team at Fisher German, the MOD and local planning authorities.”

Surveys have shown that the pipeline between Tonbridge and Godstone has a number of defects and has reached the end of its functional life. “For obvious reasons there is a no leaks policy on oil pipelines so it has to be replaced before that possibility becomes a risk,” explains Matthew. “We’ve been involved with the project since 2007. Initial work involved consultation with landowners, local authorities and other interested parties as well as arranging access for the numerous ecological surveys that

were required. We acquired all of the necessary rights in land and were granted planning consent by the three local planning authorities in December last year.”

Before allowing contractors on site the utilities & infrastructure department had to discharge a number of planning conditions in the short period of time available between consent being granted and the start of the bird nesting season, by which time all hedgerows along the route had to be removed. Construction has started and the Fisher German project team is continuing to work with

It’s been a stimulating ... process for Fisher German, the MOD and local planning authorities” Matthew Willoughby, Fisher German

OPA, the contractors and the affected landowners to ensure the smooth running of the works.

“It’s the first time that we’ve submitted a planning application for such a significant GPSS project and the team has done a fantastic job in meeting the client’s requirements,” explains Matthew. l

For more information contact Matthew Willoughby on 01530 410864 or email matthew.willoughby@fishergerman.co.uk

Fisher GERMAN Magazine 5

news&views Left to right Morgan Aps, Stuart Flint and Christian Sanders

John Sanders and Fisher German join forces Merger will improve firms’ presence and capabilities and further strengthen client services Leading chartered surveyor firms, Fisher German and John Sanders, have joined forces. The merger between the national firm Fisher German and Worcestershire based John Sanders will increase Fisher German’s office network to 13 and strengthen both firms’ client service capabilities.

Stuart Flint, head of property agency, believes that the merger is a fantastic step for both firms. He explains: “We are joining forces with a very well respected estate agent that has an excellent knowledge of the Worcestershire area where Fisher German has had a presence for many years. John Sanders has an enviable reputation, specialising in the sale of good quality properties, as well as providing rural consultancy and professional services. We envisage significant expansion in the region on the back of this merger.”

John Sanders was set up in 1991 by Christian Sanders and his late father John Sanders, and specialises in property agency and rural consultancy. The firm covers Worcestershire, Herefordshire, North Gloucestershire, South Shropshire and the West Midlands area. The union will see Christian Sanders, Morgan Aps and Matthew Barker become partners at Fisher German.

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Christian Sanders believes that the merger will really expand the estate agency side of the business and give John Sanders’ clients national reach in addition to local office presence.

“Fisher German also provides inhouse planning and development services and deals in good quality estates,

We envisage significant expansion in the region on the back of this merger” Stuart Flint, Fisher German

country houses, farms and equine properties. This will add considerably to the service we already offer,” he adds.

Fisher German’s Blackpole East Worcester office will continue to offer Fisher German services and the merger will strengthen the property agency sector, providing a more visible presence in the geographical area. l

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

news&views

It’s all down to planning Professional expertise and a diverse client base are key to the planning department’s success, says Kay Davies

Fisher German’s planning team continues to go from strength to strength. Six years ago the department consisted of just one planner but, despite challenging market conditions, it now has seven professional planners with a dedicated support team.

Department expansion

istockimages

The expansion of the department, at a time when many private practices have had to enforce either redundancy or a reduced working week on staff, is testimony to the professional skills and expertise of the team. It also reflects the firm’s corporate philosophy of progression and expansion.

Kay Davies, head of planning, believes that Fisher German’s client base has also contributed to the

department’s expansion. “The department is not typical of the mainstream planning consultancies who were more exposed to the recession working for large house builders and developers,” she explains. “While we do undertake large housing schemes this is mixed with a diverse range of other clients. Most notably, the stability of historic estates and rural clients, a framework agreement providing land and planning services to Severn Trent Water and a surge in renewable energy projects have balanced the work base to minimise risk and increase opportunity.”

As the firm grows its business, clients will benefit from both inhouse continuity and an expanding range of services. l

The expansion of the department... is testimony to the professional skills and expertise of the Fisher German team”

For further information contact Kay Davies on 01530 410824 or email kay.davies@fishergerman.co.uk

Kay Davies, Fisher German

Fisher GERMAN Magazine 7

news&views

In the pipeline The complex Pipeline Safety Regulations need further research to ensure a satisfactory outcome for all concerned parties

The Buncefield Oil Depot explosion, 12 Dec 2005

change may render an existing piece of pipeline network no longer feasible to operate or, alternatively, sterilise large tranches of developable land.”

Proposed changes to Pipeline Safety Regulations 1996 The regulations are split into two parts.

There are general duties that apply to all pipeline operators and additional duties that apply to operators of major accident hazard pipelines (MAHP). Following the

The magnitude and implications of the initial potential proposals mean that further research is wise” Andrew Bridge , Fisher German

that the magnitude and implications of the initial potential proposals mean that further research is wise. “Hopefully, this will ensure that the outcome provides a practical solution to the concerns relating to major accident hazard pipelines,” he explains.

“The implications could be significant to infrastructure owners and developers alike and, as such, the costs associated with

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Buncefield incident in December 2005, the HSE is considering reclassifying gasoline pipelines as MAHPs. This would be done in amendments to the Pipeline Safety Regulations 1996 and would place additional requirements on the pipelines, including a proposed consultation distance around them for planning issues.

The current methodology adopted

by the HSE for establishing consultation distances is based on ‘average’ conditions along pipeline routes and the risks posed under ‘average’ conditions within the zone. Currently, the amendments would set the consultation distance at 80m. If gasoline pipelines are upgraded to MAHP, local authorities would be required to seek advice from the HSE on all planning applications for development within the consultation distance.

There is also a proposal to adopt staged consultation distances, which would mean more stringent planning restrictions immediately adjacent to the pipelines with fewer planning restrictions applying as the distance increases. Restrictions are likely to vary depending on the land use and area of the proposed development. In addition, there is a proposal for additional protection measures or mitigating measures to be carried out to pipelines to enable certain developments and encourage approval from the HSE. l

For further information on Pipeline Safety Regulations, contact Andrew Bridge on 01530 410828 or email andrew.bridge@fishergerman.co.uk

istockimages

The Pipeline Safety Regulations, enacted in 1996 in conjunction with the 2003 amendments, have been a constant source of debate and modifications have been scrutinised since 2004. However, as the issue is so complex and sensitive, the Health and Safety Executive (HSE) has asked that further consultation and research is carried out before any decisions are taken.

Andrew Bridge, partner in the utilities & infrastructure sector at Fisher German, says

news&views

grape expectations An amazing opportunity to rent an award winning vineyard at a beautiful location has just come onto the market Wine enthusiasts have a rare opportunity to capitalise on their passion for the grape with a great business opportunity. An established, award winning vineyard, located at the exceptionally beautiful Renishaw Hall in Derbyshire, is available to rent through Tim Shuldham of Fisher German. First planted in 1972 in the estate’s walled garden by the late Sir Reresby Sitwell, it was the most northerly vineyard in Europe until 1986.

Initially, the wine was produced at Renishaw Hall estate, but it is now made 35 miles away in Nottinghamshire and is marketed under The Renishaw Hall label. The English regional wine and quality sparkling wine can be bought from the onsite shop and café and is offered at the various weddings and functions held at Renishaw Hall.

Adding depth to the vintage Renting the vineyard includes managing and producing wine from a mixture of 1,459 Madeline Angevine and Seyval vines, which cover around an acre of the estate’s walled garden. Plantings have taken place as recently as 2009 and these

young vines will be coming into production in 2011. In addition, grapes grown under glass in the kitchen garden add depth and strength to the vintage. Potential production for 2011 will be in the region of 3,000 bottles which should increase to 3,600 in 2012.

Production from day one The impending retirement of a long serving Renishaw gardener has led to this great rental opportunity. With the help of Tim Shuldham, Sir Reresby’s daughter Alexandra Hayward decided that the vineyard needed dedicated and experienced attention to allow it to continue to thrive and produce its award winning wine. The vineyard is offered on a farm business tenancy.

“For a viticulturalist who does not wish to start from scratch and wait years to establish the vines, this rental opportunity offers production from day one, a distinguished and established brand in the Renishaw Hall name and a readymade sales channel through the visitors that the estate attracts,” explains Tim Shuldham. l

Renting the vineyard includes managing and producing wine from a mixture of 1,459 Madeline Angevine and Seyval vines”

For further information contact Tim Shuldham on 01777 860755 or email tim.shuldham@fishergerman.co.uk

Tim Shuldham, Fisher German

Fisher GERMAN Magazine 9

The

right skills set

1

A diverse land and property portfolio worth £50m requires expert sales and management techniques 3

T

he sale of a varied property portfolio that stretches from Northumberland down to the East Midlands with a value in excess of £50m requires tactical and careful management.

Fisher German was recently awarded dual agency sale of such a portfolio from UK Coal.

David Merton, partner and head of rural consultancy at the firm, believes that Fisher German’s considerable experience in the sales and management of agricultural land, residential and commercial properties, combined with its local office network and national presence, was key to winning the contract.

“The portfolio has three main sectors: agricultural land; development land; and residential properties, all of which require specific sales expertise. We’re managing the sales centrally, but our national office network, with their indepth local knowledge, is essential to

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maximising the sales potential,” explains David. “It’s a broad portfolio and reflects Fisher German’s expertise and breadth of capabilities. We’re working very closely with UK Coal on marketing the properties and land and producing a bespoke short and medium term strategy for each and every sale.”

Agricultural and strategic land The land is being sold subject to a development clawback clause and the mineral rights are being reserved in order to give UK Coal the potential for future income from the land.

The main thrust of the portfolio is agricultural land, standing at 8,000 acres and worth in the region of £40m.

The mix of land sweeps from Cannock in Staffordshire up to Northumberland and is divided into 30 sites, ranging in size from three acres of woodland in Derbyshire up to 1,000 acres of mixed agricultural and amenity land at Tamworth.

“Fisher German initially got involved with the project as I was negotiating the purchase of 2,500 acres of agricultural land from UK Coal for a long standing Fisher German client. The sale gave

Category of sales

Sales methods

• 8,000 acres of agricultural land; • 770 acres of stategic land, with development potential; and • 35 residential properties.

• auction, for 2,500 acres; and • private treaty, for 5,500 acres.

property agency

2

1. Residential property at Mastin Moor, Chesterfield. Sold by auction.

2. Land at Mastin Moor, Chesterfield.

3. Part of the agricultural portfolio. Sold by auction at Arkwright Town, Chesterfield.

4. Longmore Cottage, residential property with 8 acres at Heather, Ashby de la Zouch. Sold by private treaty.

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Fisher German’s sales and management expertise is proving invaluable in the transactions of our broad portfolio” Owen Michaelson, managing director (property), UK Coal plc

UK Coal an insight into how Fisher German could work with them and their current agents on future projects and has formed an excellent basis for our current relationship,” says David.

As agricultural land values are very strong at the moment, David is advising UK Coal to realise the sale of this sector of the portfolio as soon as possible. “It’s a good time to sell agricultural land, there’s a lot of appetite at the moment for investment,” notes David. “The portfolio is appealing to a range of buyers, from existing tenants and adjoining landowners looking to secure or expand their assets, to lifestyle purchasers keen to acquire a piece

of England. We’re using a variety of sales techniques, from private treaty to auction, to secure the best buyers.

“In particular cases, we’re targeting potential buyers before bringing the land to the open market. Some of the acreage is being sold as investment land subject to long term Agricultural Holdings Act tenancies, some with farm business tenancies and some with vacant possession. It’s an extremely diverse portfolio which plays to the firm’s strengths.”

As joint agents, Fisher German is mainly focusing on the sale of land and property from Sheffield down to the East

Midlands and is targeting sales according to the specific assets or terms of the land or property.

“The strategic land portfolio with development potential might seem a suitable sale to just one large developer.

However, as this sector of the portfolio has 16 separate sites across the country ranging from eight acres up to 130 acres, we will, of course, also target other interested and local parties. Some of the land is perfect for short term investment, while other areas would suit a longer term development strategy,” explains David.

The residential tranche of the portfolio includes 35 properties located around the UK from Telford in Shropshire up to Scotland.

Challenging sales market The instruction of such a large and diverse portfolio is very significant and draws on the multiple strands of Fisher German’s management skills across all sectors, from land and tenancy management to residential and commercial sales.

“The sales market is quite challenging,” notes David. “Most of the properties are let so we need to consider the existing tenants and then decide how to sell – either with vacant possession or subject to the tenancy.”

“Fisher German’s expertise is proving invaluable in negotiating the best terms and conditions in the transactions of our broad portfolio,” says Owen Michaelson, managing director (property) UK Coal plc. l

For more information contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

Fisher GERMAN Magazine 11

property agency

Making the

right move On average, the UK’s population moves house every five years. Matthew Allen considers the reasons behind the nation’s fixation with relocating

T

he state of the UK property market is something of a national obsession and has long been the focus of dinner party conversations. The recent extraordinary fluctuations in house prices have only added to this fascination. But with the market now showing signs of renewed activity, the UK’s enthusiasm for moving house is no longer limited to dinner party speculation.

Hyperbole is being replaced by action and the UK is, once again, on the move.

As a nation we have a compulsion to relocate to a different address at great expense on a regular basis. While this enthusiasm is mainly based on an attempt to climb the property ladder, this eagerness to become embroiled in what

concerns, a desire to release equity and health problems, choose to move to a smaller or cheaper property. This trend is likely to increase as the UK’s population continues to age. Over the last 25 years the percentage of the population aged 65 and over has increased from 15 per cent in 1984 to 16 per cent in 2009, an increase of 1.7m people.

The Academy’s research reveals other considerations that prompt a move, including job relocation, a growing family or simply the desire to live in a ‘nicer’ home. The more traditional reasons that can force a move, such as divorce and bereavement, also feature in reasons to move but are not key factors in relocating.

However, Fisher German’s own research

Fisher German’s own research reveals the reasons for moving house have some strong regional variations” Matthew Allen, Fisher German can be a highly stressful activity on such a regular basis, is not just a desire to trade up. Some interesting statistics produced

by The Academy in its Home Moving Trends 2010 survey of 1,600 people across the UK who, last November, had either sold their homes or put them on the market, reveal that there are a number of other major factors feeding the UK’s seemingly insatiable appetite to relocate.

Bigger is sometimes better At the top of The Academy’s list 23 per cent of the survey’s respondents cite the desire to live in a bigger or better property. This rationale is closely followed by downsizers at 18 per cent who, for various reasons ranging from financial

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reveals the reasons for moving house have some strong regional variations.

Surprisingly, schools feature towards the bottom end of The Academy list of reasons to move, but some Fisher German offices consider that this is a key driver when relocating. Often, one of the main criteria for property choice when it comes to putting down roots in an area is the proximity and availability of the best schools. High premiums are often paid for properties in and around some of the best comprehensive, grammar and public schools.

Fisher German’s Banbury office has a large number of applicants who state proximity to schools, including Tudor Hall, Bloxham School and Winchester House, prominently in their list of requirements

in a house search. The firm’s Worcester office has strong demand from parents of pupils at King’s School and Malvern College, to mention a few, and the desire for short school runs to Bromsgrove School keeps our Bromsgrove office busy with inquiries. Many schools throughout the UK exert similar influences, with demand intensifying in the summer months when the need to secure a home in time for the new school year is at its peak.

Capital return Investment may not have featured in The Academy’s list a decade ago, but purchasers of residential property are increasingly keen to secure possible income or capital returns on a property.

Houses with secondary accommodation are also sought after, and not necessarily for an elderly relative. Self contained accommodation can often be a means of providing income via an assured shorthold tenancy or a holiday let. Project purchases are also popular in today’s market.

Buyers, fuelled by the many television programmes that focus on property improvements and development, are often looking for ways to add value to property, and the prospect of a house that might need renovating or is ripe for development can be very appealing.

While today’s property market remains challenging and transactional volume is much lower than average, it is, arguably, the perfect time to buy a larger house.

With the general consensus that property prices have bottomed out and an upswing in the cycle is ever more tangible, it really is a good time to make your move. l For further information contact Matthew Allen on 01295 226287 or email matthew.allen@fishergerman.co.uk

the main reason for moving home?

16%

downsizing

23%

wanted a bigger home

9%

9%

new job/work from home

wanted a nicer home

8%

7%

growing family

investment

6%

divorce/ separation

7%

retirement/ ill health

5%

bereavement

4% 3%

financial pressure

schools

3%

inheritance Source: The Academy (training courses for estate agents) Home Moving Survey 2010 (1,600 people in Britain surveyed)

Fisher GERMAN Magazine 13

commercial

Getting

zone in the

Enterprise zones can have unfortunate implications for some commercial landowners, as Kevin Benson discovers

E

nterprise zones (EZs) are making a comeback, much to the dismay of many a commercial landlord. The UK Treasury is making £100m available to fund 11 new EZs over the next four years, according to Chancellor George Osborne, and a further 10 EZs will be created in the future. While the new EZs will be set up in areas that already have local enterprise partnerships, their exact locations are still not certain.

EZs are not a new phenomenon – over 38 were created between 1981 and 1996.

The zones bring with them tax breaks, capital allowances and simplified planning rules and this round will see funding for super fast broadband. More importantly, EZs can occupy buildings business rates free until the end of the 10 year EZ status.

Worrying implications EZs create significant physical development in areas identified in need of regeneration. However, they tend to attract some of the largest of the country’s

commercial property developers and there is a strong argument that EZs are of more benefit to the developer and the landowner than to local business.

It is sometimes said that EZs drain occupation from surrounding areas into the zones. In order for a business to qualify for an EZ it usually has to relocate from a different county or local authority.

However, if county or local authority borders are close by, the move may only be a few miles in some instances. Where this happens the implications for Fisher German clients could be severe.

Landlords left with falling values Large production facilities or distribution centres are not the only businesses attracted to EZs. Many developers quickly latch onto the EZ status of land and look to acquire parcels for speculative development. This can have a number of repercussions, including landlords offering tenants rental discounts, rent free periods or reverse premiums to entice an existing tenant to renew a lease. Landlords of

Fisher German has experience of occupiers playing off a landlord in a non-EZ area against a landlord within an EZ” Kevin Benson, Fisher German

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vacant properties are then faced with heavily incentivised competition that they simply cannot compete with. All of the above can lead to a general fall in rental and capital values in areas that are close enough for local occupiers to consider a move to an EZ.

Vacant buildings When occupiers move into a building with an EZ status to take advantage of its financial benefits, landlords are often left with vacant buildings and the prospect of long term issues over voids and falling values. In the current climate, business rates will also add significantly to the costs associated with vacant buildings.

The effect on areas surrounding EZs will have to be considered, even though the £100m budget for the first wave of EZs is more modest than the budgets for the previously created EZs.

Leeds

Manchester

Liverpool

Sheffield

Nottingham

Black Country

Birmingham Solihull

London

Fisher German offices Some of the probable EZ locations

Fisher German has experience of occupiers playing off a landlord in a nonEZ area against a landlord within an EZ and can advise clients on such a situation.

The new EZs are not necessarily in towns and cities that have seen closures of coal mines and manufacturing loss as per the last round of EZs. In fact, they are likely to include London, Sheffield, Nottingham, Manchester, Leeds, Liverpool and Birmingham.

If your nearest EZ sees substantial speculative development you should take action now to negate its potential impact on your property holding. l

For further information contact Kevin Benson on 01777 719148 or email kevin.benson@fishergerman.co.uk

Commercial updates Crown House The last edition of the Fisher German magazine featured Crown House in Worksop. Following its refurbishment the first letting has been completed.

Over 5,500 sq ft has been let to Nottinghamshire Police and the Probation Service as an administrative base.

EPC From 1 July 2011 an Energy Performance Certificate (EPC) will be required within seven days of the start of marketing for all commercial properties put on the market after this date. Agents in both residential and commercial markets will be responsible for ensuring the EPC is available. This is contrary to the current legislation which puts the onus on commercial property owners to produce the EPC with the agent merely responsible for advising the owners that an EPC is required.

From 1 October 2011 an EPC must be included within all marketing material as the option to include an EPC rating in the property details will no longer apply.

Fisher German works closely with a number of EPC suppliers and has already made provision for the display of EPCs within all commercial marketing material.

Fisher GERMAN Magazine 15

planning & construction

Firm Foundations Development projects are often notoriously challenging.

John Palmer underlines the importance of good client relationships when undertaking such a scheme

D

evelopment projects are never straightforward. However, if the buildings are in a conservation area, of historical interest and require planning permission for both commercial and residential purposes, then the road to completion is, not surprisingly, often complex and ambiguous. In such circumstances the importance of a good relationship between the consultants employed to manage and drive the project and the client cannot be underestimated.

A development at Rearsby, near Leicester, brought to a successful conclusion in 2010 by Fisher German, had all of the above challenges and more. John Pochin, the owner of this property, credits his long standing relationship as a client of Fisher German as a key factor in the project’s success.

Relationship is vital to success “I’ve worked with John Palmer and other members of the firm for over 25 years.

This relationship was vital to the success of the development – we understand each other very well,” he explains. The Rearsby project, the redevelopment of a 19th century derelict farmyard and house, was designed to bring in additional income

to John Pochin’s property at Rearsby.

However, Fisher German and John Pochin have faced a long struggle to bring the project to completion.

“In 2000 John Pochin and I could both see that the land and buildings offered several development opportunities,” says John Palmer, partner at Fisher German.

“I was confident that our planning and surveying skills could bring the

This relationship was vital to the success of the development and I’m very pleased with the end result” John Pochin development to a successful conclusion but there were numerous obstacles that we had to overcome. John’s original idea to develop low cost, affordable housing was rejected by Rearsby Parish Council, and the next request to redevelop the house and farm outbuildings for domestic and commercial usage also faced some opposition. However, we persevered and a pre-agreed application was accepted.

Whenever we hit a brick wall, for example

10 years in the making • initial vision of renovating the main house and developing low cost, affordable housing was rejected; • a second proposal that included the creation of a further residential dwelling and two offices also met with objections; • planning permission was granted on the third application; and • a 5 per cent yield on expenditure has been achieved.

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stringent landscaping conditions that included the preservation of an ancient oak tree, the team came up with an alternative development option and we forged ahead.”

“We had to keep plugging away,” agrees John Pochin. “We all worked incredibly well together, which really helped the project along. We’ve made use of all the buildings in great fashion. We now have

• Fisher German’s building services included design work after planning, tendering process to appoint contractors; • construction (managing quality of work); and • statutory compliance, health & safety, submission of plans, discharge of planning, negotiation of access and working around restrictions.

two housing units, an office unit and the whole area has been tidied up while retaining its character.”

Keen conservationist John Pochin is a keen conservationist and Fisher German’s planning & construction, renewable energy and rural consultancy skills were all put to the test to ensure that his conservation and ecological goals were met at Rearsby.

“It’s important to restore old buildings wherever possible, bring them up to date and utilise them,” he explains. “A well dating from the 19th century has been retained in the grounds of the development and an old baking oven that was uncovered in the main house is now a major feature of the renovation. We’ve also managed to incorporate renewable energy features such as ground source heat pumps, high insulation and a water harvesting tank.

“I take great pleasure in the fact that Fisher German has steered me through all the project’s mire and I’m very pleased with the end result at Rearsby.” l

1

1. The Rearsby project complete with oak tree.

2. The well dates from the 19th century.

3. An inscription of a worker’s name from the bakery days.

4. The refurbished offices.

5. The courtyard of the house; the development mixes the best of the old with the new.

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2

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For more information contact either John Palmer on 01858 411216, email john.palmer@fishergerman.co.uk or Richard Benson on 01530 410825, email richard.benson@fishergerman.co.uk

Fisher GERMAN Magazine 17

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A professional persp First hand experience of running a country estate sets the professional land manager apart. David Legh reports

T

he study of land management is often the favoured precursor to running a country estate. When I inherited Cubley Estate, near Ashbourne in Derbyshire, at just 24, after studying at the Royal Agricultural College, I always intended to continue a full time professional career alongside ownership of the estate. This first hand experience has been of benefit to clients during my career with Fisher German and it is a strength of our organisation that others have had similar direct experience.

The Cubley Estate was purchased by family trustees in 1968; more land had been added and the estate was undergoing significant modernisation by the time I took it over eight years later. The estate now totals 2,000 acres and consists of eight principal farms, a number of cottages, woodland and some diversification. We run a shoot, have

18 Fisher GERMAN Magazine

carried out some development and have facilitated an affordable housing scheme.

Many people remember 1976 as the year of the great drought. For me it was a watershed year. The national economy was in deep crisis with rampant inflation and income tax of 98 per cent payable on the top slice of investment income.

Chancellor Denis Healey had imposed periodic capital transfer tax charges on discretionary trusts. Cubley, being in such a trust, was in deep jeopardy, so the trustees resolved to appoint it to me

absolutely. Within a month my father had suffered a huge paralysing stroke threatening many years of careful tax planning; in the same month the largest farm tenant quit his farm having failed to pay his rent. My wife and I decided to take the farm in hand and start our own farming business.

So in my year of professional qualification, 1976, I was making substantial business decisions in my own right while learning to offer advice to clients at a professional level. l

It is a strength of our organisation that others have had similar direct experience�

David Legh, Fisher German

rural consultancy David Legh gives us his personal principles of country estate management

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Respect has to be won My wife Jane and I are very conscious that we had to earn our spots. Before we arrived the community was coping very well without us.

Take nothing for granted.

1. A small village farm.

2. A view of the estate.

3. The Church at Cubley.

4. A woodland bridge over the Cubley brook.

5. Cubley Lodge.

Personal judgment versus commercial result Sometimes we have gone against sound commercial advice and suffered financial loss as a consequence; often these have turned out to be the right personal decisions. Decide, pause, revisit, then execute.

The importance of communication Tenants must have regular opportunities to put across their points of view and a landlord must set down standards and objectives. Achieving balance between encouraging youthful enthusiasm and noting the experience of elders is difficult. The trustee model works well in this respect. Do not be frightened to innovate, but heed experience as well.

5

rspective The priorities of the young professional surveyor are: • to pass the APC; • to apply theoretical skills in a practical context; • to enjoy good client relationship skills; and • to be commercially aware.

Those of the aspiring landowner are: • to know that the agent is moving

The role of the Church The Church plays a key role in the rural community. Throughout the 1980s and 1990s my wife took on increasing lay responsibility in the community; in 2005 she was licensed as a Reader and joined the ministry team. Jane then decided to train for Holy Orders as a nonstipendiary Minister and was ordained Priest in 2010. Jane and I are in a doubly privileged position to reconnect Church and community in Cubley.

The resident landowner A community like ours is fundamentally conservative; newcomers 30 years ago were treated with some caution. Today, a high proportion of the present population has joined the village since our arrival and the relationship between estate and community is now established as working in the background.

We are too small a community to install artificial barriers of class, colour or creed.

with the times; • to identify business or

commercial opportunities; • t o maintain the quality of relationships with tenants and staff; and • t o ensure the investment is adding value rather than merely subsidising lifestyle.

Fisher German understands the importance of bringing creativity and innovation to an estate, while respecting traditional estate management values. While the importance of ensuring that the client has continuity in the partner contact cannot be overemphasised, specialists can add value and may be brought in to oversee specific projects.

David Legh’s profile David was High Sheriff of Derbyshire in 2006/7 and is a deputy lieutenant of the county. He was chairman of Fisher German for nine years and formerly chairman of the national taxation committee and regional chairman of the CLA. He was awarded the RAC/RICS Annual Fellowship in Rural Land Management 2010 for his report 40 Years Owning a Rural Estate – a retrospective and the challenges ahead.

For further information contact David Legh on 01785 273988 or email david.legh@fishergerman.co.uk

Fisher GERMAN Magazine 19

Reaping

precise rewards Precision technology is becoming increasingly popular among farmers. James Goodson considers its benefits

Satnav technology can help boost efficiency for farmers

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rural consultancy

Fast facts

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rowers today are operating in difficult economic and market situations. They face higher fuel and input costs, a demand for improved yields and the pressure of increased environmental awareness and compliance. However, precision technology can offer solutions to finding a balance between these competing needs.

Based on observing and responding to intra-field variations, precision agriculture relies on new technologies, such as satellite imagery and information technology, to identify and measure within-field variability and its causes. It prescribes site specific input applications that match varying crop and soil needs, and applies the inputs as prescribed.

Precision agriculture is also helped by the farmers’ ability to locate their position in a field using a satellite positioning system such as GPS. It can help to improve the efficiency of farm operations including cultivations and better targeted fertiliser

increased from £200/tonne to well over £300/tonne in just nine months.

To sustain profitability in the grains industry a better understanding of the variable cost of production among grain farmers is essential.

Growers are increasingly researching different ways to reduce their costs and increase their yields. The drive to increase production is led by looking at the area of variety selection. However, an equally important part of planning, due to the increased volatility in both commodity prices and inputs, is the actual cost of production (COP), which must be one of the first things that every farm business needs to examine.

The land where cost is king All UK growers regularly encounter both price and production uncertainty.

In broad acre cropping there has been a strong focus by agricultural scientists, agribusiness representatives and growers

The use of this technology, combined with GPS, is fast becoming the norm on large farming businesses” James Goodson, Fisher German and agrochemical applications. This can save on fertilisers and sprays, reduce fuel costs and improve soil structure.

The use of this technology, combined with GPS, is fast becoming the norm on larger farming businesses and, in a few cases, has enabled some businesses to win tenders for extra blocks of land because of the advantages to the landowner in input cost reduction.

PHOTOS: GETTY IMAGES

Looking closely at costs With the huge variation in commodity prices, sometimes moving £20 in either direction in one trading day, farming businesses are taking a closer look at the true cost of production for crops grown.

An increase in crop prices results in a predicted rise in input costs which are accelerating quickly. One example is nitrogen fertiliser where prices have

to manage grain production by targeting yield. The same cannot be said for grain price, however. There has been limited attention paid to the relationship between cost budgeting and targeting a realistic but profitable price. In order to manage price risk, it is critical to know the COP of a tonne of grain. An understanding of the variable costs necessary to produce, harvest and deliver grain to market can help the grower in both grain pricing and agronomic decision making.

COP is important as it can be used to assess both cropping and marketing decisions for the future. Each farming business has a different level of COP with wide variations for feed.

In addition to COP, farmers should assess how the recent rise in diesel fuel may be affecting their machinery costs per acre/hectare, particularly if they

Precision agriculture first emerged in the US in the early 1980s and entered Europe in the mid 1980s.

The UK and France were the first European countries to embrace the concept. The methodology uses hyper specific GPS and digital mapping to tightly control the application of seeds, pesticides and water to crops and livestock.

Satellite imagery of fields enables farmers to target delivery to areas as small as 2.5cm. Farmers benefit from minimum waste, reduced pesticide residue and maximum profits.

undertake contracting work for others. For example, a rise from 40p per litre to now near 70p per litre can be the difference between making or losing money on some operations.

A useful precision farming tool that is being increasingly used to save fuel costs is controlled traffic farming (CTF). CTF is a management tool (heavily reliant on the accuracy of the GPS system installed on the machine), that can reduce the damage to soils caused by heavy or repeated agricultural machinery passes on the land. This damage and its negative consequences have been well documented and include increased fuel use, reduced crop yields and poor soil function in terms of water infiltration, drainage and greenhouse gas mitigation. Although CTF is still in its infancy as far as adoption is concerned, it offers a solution that would see tracked areas in fields reduced to areas of less than 10 per cent in future. l

Here to help with COP Fisher German’s farms department can help farmers with COP calculations, machinery costs and a range of other business advice to enable farming businesses to make the most of enhanced commodity prices while being as cost efficient as possible.

For further information contact James Goodson on 01636 642507 or email james.goodson@fishergerman.co.uk

Fisher GERMAN Magazine 21

Consider Expert advice can help landowners decide on the best agreement when exploiting the development potential of their sites

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eveloping land can be complex, expensive and time consuming.

It can also be somewhat overwhelming for the average landowner to undertake on his own.

However, as the potential rewards are generally too good an opportunity to miss, many landowners use a development partner tied in to option agreements or promotion agreements. Both types of agreement have their place, depending on the size and scale of the development, and Fisher German has a wealth of experience in helping landowners decide on the agreement that is best for them and maximising their returns.

Option agreement: This is a contract to buy land which is binding only on the seller, as the option holder may choose not to buy. It enables the buyer of land to ‘buy an opportunity to purchase the land itself later’. Most option agreements involve a lump sum paid up front to the landowner by the developer, who then invests his own time and money in the promotion of the land for development with 22 Fisher GERMAN Magazine

the aim of obtaining planning permission.

At the point that consent is granted, the developer has the right to exercise his option and buy the land, albeit at an agreed discounted rate from market value.

Unfortunately, option agreements can be problematic. Once planning consent has been granted and the developer confirms his intention to buy the land, the developer will look to pay as little as possible! Every conceivable value reducing tactic is likely to be used, which is when expert valuation and negotiation advice is required.

Stephen Rutledge at Fisher German has extensive experience in negotiating the best terms for landowners and has recently dealt with a valuation and

your

negotiation for a landowner in a dispute over the value of a parcel of greenfield residential development land. The matter was referred to an independent expert and Stephen represented the owner with submissions and counter submissions.

Following Stephen’s thorough valuation submissions, the independent expert determined a higher market value for the site than the developer had previously offered.

Promotion agreement: The key difference with a promotion agreement is that once planning consent has been granted, the land is sold on the open

Every conceivable value reducing tactic is likely to be used, which is when expert valuation and negotiation advice is required” Stephen Rutledge, Fisher German

rural consultancy

options PHOTO: ISTOCK.com

market and the developer takes a share of the proceeds of sale. Both parties have the same objectives and this counteracts (or ‘overrides’) the desire of the developer to play down the value and avoids the need for lengthy negotiations. Both parties can therefore be sure that they are obtaining true market value for the land.

Stephen is involved with the preparation of both option and promotion agreements, and the valuation of development land, and has excellent links with developers, many of whom are actively looking for sites once more. Smaller, ‘oven ready’ and derisked sites are particularly sought after. With a national network of 13 offices, Fisher German has links to developers on a national level and can offer expert advice for anyone considering developing land. l

For further information contact Stephen Rutledge on 01295 226292 or email stephen.rutledge@fishergerman.co.uk

Recent work Development scheme at Bloxham, Oxfordshire Fisher German acted for the landowners of land held under an option agreement by a well known developer. The developer had been promoting the subject land for development and had secured planning consent for the erection of 61 dwellings.

The developer gave notice in writing to the landowner in late 2010, stating its desire to ascertain the purchase price and agree the development value under the option agreement. After in depth negotiations, the landowner was unable to accept the price offered by the developer and an independent expert was then appointed.

Submissions and counter submissions were made by both the landowner’s agent (Stephen Rutledge) and the developer’s agent, which the independent expert used to prepare his own report and determine the purchase price of the land.

A purchase price was agreed well over the amount originally offered by the developer.

Development land at Towcester Acting for the landowner Fisher German negotiated a promotion agreement with a developer. Planning consent for the creation of 90 new homes with contributions towards local infrastructure was recently secured, and Fisher German is now marketing the site jointly with the developer.

Fisher GERMAN Magazine 23

Taken to tax Renewable projects aren’t just good for the environment, they can also help to reduce farmers’ tax bills, says Mark Newton

Building the project The current tax year is the last when annual investment allowance (AIA) is available at 100 per cent on the first £100,000 of building the project and writing down allowances at 20 per cent.

If a farmer has already spent £100,000 on machinery, this AIA is not available. However, if it has not been used up on machinery purchases and if the farmer is a 50 per cent tax payer, then the annual return on the project of, for example, 15 per cent will then increase to 30 per cent with the 50 per cent saving in tax on the build cost.

Income tax Larger scale farmers are likely to pay up to 40–50 per cent income tax on the profit of the renewable project. As earned income the project should qualify for 100 per cent tax relief if it is paid into a farmer’s self invested pension policy (SIPP). However, it is important to remember that there is

24 Fisher GERMAN Magazine

now a ceiling of £50,000 per annum, and a limit of £1.5m on the total value of the SIPP. Therefore, if the annual income of the renewable project is higher than £50,000 per annum, the project could be put in the names of several members of the farming family which would keep them all below the annual contribution of £50,000. It is also possible, but more complicated, to have the project within the SIPP so the income then rolls up tax free. However, the VAT will not be

decide to withdraw profits out of the company, they will need to pay additional income tax on the dividends.

Inheritance tax (IHT) Many farmers will have diversified projects on their farms which are non agricultural. Common examples include let cottages or farm buildings that have been converted to offices. These properties may not qualify for 100 per cent agricultural property IHT relief and the tax payable on these assets at death is currently 40 per cent.

If the farmer wants a wind turbine that costs £500,000, then he should borrow the £500,000 against these non agricultural assets to build it, thereby reducing the IHT on these assets by this amount.

After two years of running the wind turbine project himself, it should then qualify for 100 per cent business property relief. So a project costing £500,000 would save 40 per cent = £200,000 in IHT, which is a very good form of tax planning for older farmers.

Mark advises: “All farmers have different financial situations and should take tax advice from their accountants.

There are lots of good tax planning ideas for renewable projects, but in the case of the AIA the project needs to be built in the next 12 months, before the 100 per cent tax relief is lost. Time is of the essence.” l

A farmer can choose to shelter the project within a company and pay only 20 per cent tax on profits up to £300,000” Mark Newton, Fisher German refundable when the project is built, and it will also be subject to inheritance tax (see next column).

If an individual owner undertakes a renewable project on his own private house, such as photovoltaic (PV), then the feed-in-tariff (FIT) income should be free of income tax. Therefore, for higher rate tax payers, this option is more attractive and can double the return for a 50 per cent tax payer.

Corporation tax Alternatively, a farmer can shelter the project within a company and pay only 20 per cent corporation tax on profits up to £300,000. However, when individuals

For further information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

GETTY IMAGES

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he environment isn’t the only beneficiary when it comes to renewable projects. Many farmers find that, with the right advice, their tax bills can also reap significant benefits. Mark Newton, head of the renewable team at Fisher German, notes: “In the current profitable arable sector, there are a number of medium to larger scale farmers who are paying 40–50 per cent tax. However, by correctly structuring the build of a renewable project, farmers should find themselves paying less income tax.”

There are a number of ways of organising the development of renewable projects to benefit from tax breaks. Mark advises that farmers should consider the following options.

renewable energy Wind farms can be an excellent way to tax plan

Fisher GERMAN Magazine 25

An

energetic

The energy efficient, innovative designs of Home Revolution are a successful formula for today’s eco friendly society

U

K households now account for nearly 30 per cent of the nation’s carbon emissions.

However, ever depleting fuel stocks and a more eco friendly society are prompting us to take a more proactive approach to addressing the state of the nation’s energy supplies and employ new methods of reducing our reliance on traditional energy solutions.

While renewable energy is not the whole answer to the related problems of dwindling fossil fuel supplies, energy shortages and global warming, it can play an increasingly vital role in resolving these concerns. Home Revolution, working with Fisher German, advises clients on how to address domestic and corporate energy challenges with new build concepts and radical designs that are environmentally sensitive.

Home Revolution’s energy efficient building and site design concepts are often

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in areas where developments would not be allowed due to planning constraints.

However, alongside Fisher German’s planning expertise, the firm’s proposals are usually sufficiently innovative to allow exceptions to be made. Although the UK’s depressed housing market has put some clients’ projects on hold, Home Revolution has seen a significant upswing in developments this year and has produced a number of new detailed proposals with a further three pending.

All the developments are bespoke and are designed to sit in harmony with their surroundings.

Water mill will tackle flooding In Northamptonshire an eco friendly design solution works the old with the new to combat a flooding problem. A modern water mill has been proposed on the site of an old demolished water mill and will use traditional materials that incorporate

cutting edge design. A water turbine will harness the old mill race and a very large attenuation mill pond will alleviate the present problem of downstream flooding.

A circular house that has been proposed in east Derbyshire will have a central courtyard that overcomes temperature fluctuations. The courtyard is covered, but its glazed roof raises and lowers to control temperature and air flow. And in Staffordshire a contemporary design has been developed where all ventilation and temperature control is achieved through renewable energy and biomass sources. The high internal mass, together with an indoor swimming pool, act as thermal stores to damp out temperature fluctuations.

Home Revolution’s developments illustrate that imaginative contemporary design can combine energy efficiency with remarkable and delightful living environments, allowing maximum benefit

renewable energy Home Revolution’s exciting and innovative design portfolio includes: The circular house in Derbyshire with central courtyard; drawing details of a design concept in progress; circular footings for the main rotating house of The Dumble; and an interior shot of The Dumble

market to be enjoyed from renewable energy.

While it can be difficult to power a typical older home from renewable energy sources alone, it is certainly possible with conversions or new builds if different principles (and mindset) are adopted. Achieving building designs, standards and specifications that only require a small fraction of the 20/30KW peak demand for an older property is now quite straightforward, and this is where renewable energy can really come into its own in a practical and cost effective way. An ‘affordable’ installation of, for example, 5KW peak can more

than satisfy the low energy requirements of such an appropriate new build. This also allows the export of any spare capacity to the National Grid – for which generous purchase schemes have now been provided.

Minimal heating required Robin Hamilton, engineer, entrepreneur and founder of Home Revolution with Fisher German, has been working on The Dumble, his home in Ashbourne, Derbyshire, since 2007.

The revolutionary, self sufficient house rotates at around two inches a minute and traps twice as much sunlight as a conventional house. The project fell behind schedule due to the recession and a personal injury last year but both are making a steady recovery. Robin and his wife have been living at The Dumble for 20 months.

“It is delightful and phase one has exceeded

Imaginative contemporary design can combine energy efficiency with remarkable and delightful living environments” Robin Hamilton, Home Revolution

all our expectations, which bodes well for phase two, the main rotating house,” explains Robin. “All ground work for this is completed, the build is ‘out of the ground’, and we hope to make further progress next year.” Only minimal heating was required during cold weather, which proved the efficiency of the concept and insulation, even though some of the energy management systems are not yet operational.

The Dumble demonstrates that a responsible, energy efficient and cost effective green design can produce a dramatic and exciting building. The same concept and techniques can be applied to smaller and larger buildings (domestic or commercial) and will help save our planet’s natural resources, combat soaring energy costs and reduce the impact of climate change. l

For further information contact Robin Hamilton on 07831 586103 or email robin@home-revolution.com

Fisher GERMAN Magazine 27

Where the

wind blows Offshore wind farms are more popular than ever thanks to support from the UK Government and overseas investors.

Claire Priestner reports

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s renewable energy targets started to slip, the UK Government had to look beyond onshore wind and the offshore round 1 and round 2 developments. Within the last 18 months, the Crown Estate, owner of the seabed and location of the offshore turbines, and the Government, subsidising the industry through renewable obligation certificates, have worked tirelessly to develop round 3 offshore wind farm projects. This has resulted in wind farm developers with a track record in the industry being awarded different offshore sites throughout the UK, with some on scales of four to five times those of round 1 and round 2. All are being carefully managed by the Crown Estate. It is forecast

28 Fisher GERMAN Magazine

that by 2015, 6.6GW will be installed offshore, which forms only a small part of the 25GW target of round 3.

Offshore racing ahead Offshore developments are racing ahead, with investment mainly from overseas energy giants including DONG (Danish), Vattenfall (Swedish), Eon (German), EDF (French) and Eneco (Dutch). They

have been encouraged by Government subsidies, the statutory consents regime and a Crown Estate motivated to raise the number of GW expeditiously.

Unfortunately, onshore developments continue to move at a slower pace towards construction due to the current FITs review, a restrictive planning regime and negative public perception.

Current turnkey wind energy costs for

The UK’s island location has prompted a revival in the construction of offshore wind farms�

Claire Priestner , Fisher German Priestner

renewable energy The UK’s windy coastal waters are ideal for wind farms

offshore developments are three times the cost of onshore projects. Onshore wind energy costs are determined by turbine expenditure, whereas for offshore the main outlay is for foundations and grid connection. However, costs for both should be driven down with mass production.

ISTOCKIMAGES

Wind farm worries still remain Property owners’ uncertainty about wind farm projects often relates to the visual impact of the turbines on the landscape and their effect on property prices, despite the fact that RICS reports have shown the impact on property prices to be minimal.

Property prices near to turbines might be depressed during construction but bounce back within five years. However,

the NIMBY principle associated with onshore wind, in particular, still remains.

Statutory consents required for onshore and offshore extend to a long list but, generally, onshore below 50MW requires planning permission and above 50MW can be referred to the Department of Energy and Climate Change (DECC).

All offshore developments in round 3 will now run through the DECC IPC regime, (including the onshore grid connection).

The Government’s encouragement of wind energy means it is almost a foregone conclusion, providing all the correct assessments have been completed, that permissions will be granted for offshore wind and those onshore projects

above 50MW. The windy nature of the UK’s coastal waters has led to a review and renewed enthusiasm for the construction of offshore wind farms, supported by the Government and the Crown Estate. The largest project currently under construction is London Array Limited at 1,000MW. Fisher German Priestner, a sister company to Fisher German specialising in onshore and offshore wind, is currently actively involved in 15 offshore wind farms in the UK. l

For further information contact Claire Priestner on 01565 757984 or email claire.priestner@fgplimited.co.uk

Fisher GERMAN Magazine 29

There’s a

PIGin the pipe A

s rural chartered surveyors, Fisher German are very familiar with pig farming.

Its cyclical nature makes it one of the most precarious farming activities, either enjoying a 10 year high or a serious slump, which can lead to a difficult financial situation. Bizarrely, Fisher German’s utilities & infrastructure team are also connected to ‘PIGs’. Pipeline inspection gauges or PIGs are used to perform a number of routine operations, on various pipelines, without the need to interrupt the flow of product within the

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pipeline. With the down costs of pipelines, not being able to move product from point A to point B, this has made them an invaluable tool within the pipeline industry.

Squealing PIGs of wire and straw The original PIGs were first developed to clean pipelines. Made out of wire and straw, they were fairly crude and were said to squeal like a pig! This is possibly the source of the acronym PIG. PIGs are now made from various materials and are able to remove rust, scale and even

paraffin deposits from the pipelines they traverse. PIG plugs were developed to allow different products to pass along the pipeline in the early 1960s. They provided a clear point of separation and reduced the loss of products that can be caused by mixing.

The ever increasing need to ensure the integrity of pipelines means that the use of inline inspection tools and intelligent PIGs has now come to the fore, particularly in relation to pipelines under third party management with Fisher German. These inspections are vital to ensure the

CORBIS IMAGES

PIGs are invaluable tools for managing and maintaining clients’ pipelines. Clare Phillipson reports

utilities & infrastructure

Giving the PIG a bath ensures smooth running of the pipeline

pipelines can continue to operate at the pressures they were designed for. Given that some of the pipelines have been in the ground for over 50 years, these inspections now form part of the routine delivery of support services, to ensure the pipelines’ integrity is maintained. It is not unusual for an inline inspection tool to be used prior to an intelligent PIG, as this gives information relating to the internal bore of the pipeline, including any restrictions that may have occurred during construction or as a consequence of use.

The inline inspection tools are significantly cheaper than an intelligent PIG so if they are damaged or become stuck during this proving run, they can be sacrificed.

line

• internal cleaning of pipelines; • product separation within the pipeline (plugs); • inspection of the condition of the pipeline walls (when it is known as an inline inspection tool); and • capture and recording of geometric information relating to the pipeline, such as size and position (when it is known as an intelligent PIG).

Intelligent PIGs of all sizes The first intelligent PIG was run in 1961

by Shell Development and this proved that a self contained instrument could travel along a pipeline whilst measuring and recording wall thickness. This technology has been further developed over the past 50 years and there is now a vast array of intelligent PIGs available which can be used in a variety of pipeline constructions, products and sizes, including manufacturing processes.

Within the third party management of clients’ pipelines, Fisher German has been actively involved with PIG runs since the late 1980s. Over the past 20 years, the firm has supported clients in a variety of ways, from advising the landowners and occupiers that small black boxes will be placed on their land during the PIG run (these allow for the PIG to locate itself), to supporting the project team where areas of concern have been identified. In these cases, the pipeline must

Within the third party management of clients’ pipelines, Fisher German has been actively involved with PIG runs since the late 1980s” Clare Phillipson, Fisher German

PIGs are mainly used for:

be exposed and the feature checked and rectified if necessary.

These internal inspections allow our clients to build up a picture of each pipeline and this information then informs the routine maintenance requirements over the next three or five year period.

Fisher German has found that PIGs are an invaluable tool in managing clients’ pipelines, maintaining safety standards and improving efficiency. l

For further information contact Clare Phillipson on 01530 410813 or email clare.phillipson@fishergerman.co.uk

Fisher GERMAN Magazine 31

Sector insight Don’t sell yourself short

Land values remain high

David Merton, head of rural consultancy

Outsourcing on the increase

Stuart Flint, head of property agency Achieving the best possible price for a house sale involves careful planning.

Stuart Flint says that house owners who forward plan the sale of a property invariably achieve a higher price than those who sell in haste.

“A year’s notice can make a considerable difference to a sale.

For example, anyone intending to sell a property in 2012 should contact Fisher German now for advice on how to present and market their house.

Vendors need to consider a variety of issues from tax planning, development considerations and alterations to interior design. An investment of just £5,000 on cosmetic improvements to a house can often result in a return of up to four times that amount in capital value.”

One recent seller of a country house in Leicestershire had allowed 18 months to sell the property, so Fisher German was able to photograph the house to its best advantage through the seasons to produce dramatic marketing material.

Other examples include quirky strategies to enhance value. Stuart recently transformed a multipurpose room by arranging the short term rental of first class gym equipment transforming the space into a state-of-the-art fitness suite that really appealed to buyers.

The demand for estates and agricultural land and the lack of supply have caused the recent rise in values to continue.

Part of the reason for this increase in values is the equally meteoric, and perhaps similarly unexpected, increase in agricultural commodity prices.

While the fluctuations in farm gate prices have been very difficult to read, the general tone has been for farm profitability to improve, particularly for 2009 and 2010. However, this year may be a different story. While crop prices are at similar levels or higher than the peaks of 2010, yields will be significantly affected by the drought conditions being experienced by many.

Overall, there is definitely an air of optimism. Rental incomes and profits from let and inhand agricultural property are increasing substantially and are, once again, providing competitive returns in a mixed use estate portfolio. However, taking advantage of this option, either in the timing of asset sales or purchases or in managing the huge fluctuations in commodity prices and the movements in rentals that this is causing, is not straightforward. The rural consultancy team has expertise and experience in delivering exceptional results in this rapidly changing business environment.

The economic recession has inevitably impacted the construction industry, with planning applications down by 20 per cent for the first half of 2011 compared to 2010. However, despite the conditions, Richard Benson says that some market areas are enjoying an upswing in business.

“The Government cuts, in some ways, have worked to our benefit. The slashing of funds has forced some organisations to outsource to a greater degree. As a result, we have received instructions for work that previously would have been undertaken inhouse.

“We have received requests from two national bodies in the health care and residential property management sectors, to assist with their strategic development, maintenance and capital projects and these will lead to beneficial long term relationships.

“While the opportunities associated with major housing development schemes have diminished, our planning team has grown recently and has a number of new and exciting projects under way in the utility and renewable energy fields.

The building consultancy team has also established an excellent reputation in alternative energy including biomass boilers, ground source heat pumps and sustainability.

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

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For further information please contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

Richard Benson, head of planning & construction

For more information contact Richard Benson on 01530 410825 or email richard.benson@fishergerman.co.uk

sector spotlight

Fisher German’s sector heads review the latest market activity and analyse key client concerns

Transactions looking stronger

The importance of consultation

It’s all down to timing

As the commercial property market headed towards the Easter and Royal Wedding break, the question on the minds of those with an interest in property was “Will the slight upturn in activity seen at the beginning of the year return?”

While it is too early to give a de facto answer, Fisher German is, as always, striving to give clients up-to-date advice, taking into account the difficult market conditions.

Landlords and occupiers will still have to haggle hard to achieve the best deals. Many tenants are using the fact that landlords of vacant properties are paying business rates to their advantage, while landlords and owners have taken some comfort in the slightly increased number of transactions over the first quarter of 2011.

Although market conditions will remain challenging throughout the remainder of 2011, we do expect to see a small increase in transactions and our clients will be the first to benefit from any increased activity.

The utilities & infrastructure team has an extensive brief, advising on a network of thousands of kilometres of pipelines and cables across the UK. A significant amount of its work relates to the repair and refurbishment of existing apparatus, as well as new infrastructure, to service the growing renewable energy sector.

“Recent changes in the interpretation of planning and environmental protection legislation mean that early engagement with parties whose interests could be affected by the proposed works is essential,” says Andrew.

“Statutory requirements are tighter than before and asset owners must be thoroughly prepared for the consultation process at the very start of the planning phase to ensure that procedural delays are kept to a minimum, do not delay or disrupt the project timetable and avoid the costs that arise from such delays.”

Safe operation of these infrastructure networks is key to the UK’s economic fortunes, as the vast majority of fuels and chemicals are transported via these pipelines. The majority of pipeline downtime in the UK is due to unauthorised third party activity. Through Linesearch.org and Linewatch services Fisher German is at the leading edge of the safety management of these assets.

The review of feed-in-tariffs (FITs) is causing some anxiety in the renewable energy market. However, Mark Newton says there are still opportunities for landowners to benefit from the FITs available. “We’re seeing a lot of activity in the small to medium scale wind, solar projects up to 50KW and the increase in FITs rates in the AD market. As the main firm of surveyors in the market for the UK’s clearing banks we undertake due diligence work and valuations for renewable investments.

“The Government’s fast-track review of FITS was announced on 9 June and has confirmed the FITs rate reduction for solar over 50KW and a small increase in AD FITs from 1 August. A comprehensive review of the whole FITs scheme will be completed by the end of 2011 and any changes will occur from 1 April 2012, so time is of the essence.

Wind farms offer the best financial returns – a 250KW turbine can earn £100,000 per annum for an investment of just £600,000 – but obtaining planning approval can be complicated. Returns on solar power are not as good at 10-15 per cent, but with investments of up to £130,000 for a 50KW project and a more straightforward planning process, they can be up and running in three to four months. The Government is also offering £860m in payments for renewable heat incentives, which is a great opportunity in the biomass boiler market.”

Kevin Benson, head of commercial

For more information contact Kevin Benson 01777 719148 on or email kevin.benson@fishergerman.co.uk

Andrew Jackson, head of utilities & infrastructure

For more information contact Andrew Jackson on 01530 410812 or email andrew.jackson@fishergerman.co.uk

Mark Newton, head of renewable energy

For more information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

Fisher GERMAN Magazine 33

Sector directory Contact details for Fisher German’s 13 national offices

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

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

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

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

Worcester agency

Bromsgrove

Phone: 01905 726220 worcesteragency@fishergerman.co.uk City Wells House, Sidbury, Worcester, WR1 2HZ

Phone 01527 575525 bromsgrove@fishergerman.co.uk 8 New Road B60 2JD

sectors and underlying services commercial

planning & construction

property agency

renewable energy

landlord & tenant property management sales & lettings telecommunications

applications & appeals architectural design building surveying development & promotion environmental management project management

auctions development equestrian estates farms and land residential

anaerobic digestion biomass eco friendly buildings hydro solar pv wind energy

34 Fisher GERMAN Magazine

sector spotlight

Retford Phone 01777 709943 retford@fishergerman.co.uk.

21 Exchange Street DN22 6BL

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

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

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

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

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

rural consultancy

utilities & infrastructure

compulsory purchase estates expert witness farms rural valuations

electricity fibre optics gas Linesearch.org oil & chemicals water

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

For more information visit:

www.fishergerman.co.uk Fisher GERMAN Magazine 35

0800 1075522 www.fishergerman.co.uk