The Deal Issue 2 May 2014 by JanuarysCambridge

Issue Issue 2 May 2014

Delivering Property Solutions januarys.co.uk

Triumph for Homerton! We celebrate our work to help Homerton College extend its housing, educational and commercial offering

focus on: students We launch our annual event made for the next generation of property professionals

welcome Welcome to The Deal, our publication that showcases some of the instructions we have handled during Q1 of 2014. There is a real sense of renewed market confidence as the economy continues to recover and we are seeing a great increase in activity. This issue, we put the spotlight on a sector of the local property market that is currently “red hot” – the student accommodation sector. The continued growth of the city’s two universities, the strong reputation of Cambridge as an international ‘brand’ and the further emergence of local providers marketing their courses internationally are all factors contributing to the demand for this attractive new asset class for investors. We also cover our initial ‘Develop’ workshop, a hugely successful joint initiative with the University of Cambridge Land Economy Department aimed at giving practical’ real life experiences to the next generation of property professionals.

contents 3 STUDENT HOUSING

4 COMMERCIAL AGENCY

5 PROFESSIONAL SERVICES

6 PLANNING

7 DEVELOP

8 COMMUNITY

Enjoy the rest of spring and hopefully a great Summer, and we look forward to seeing and working with you over the coming months. Colin Brown, Managing Director

Inside this issue p4

Homerton College

Following the acquisition of the former Michael Young Centre, we secure planning consent for a new student community on behalf of Homerton College.

The Marque The Marque offers unrivalled central premium retail space – could your business make a lucrative investment in Cambridge’s tallest building?

2 | The Deal

Block Management Our property team launches its fully comprehensive residential block management service made with developers and company managers in mind.

Develop Our inaugural knowledge sharing event aimed to help bridge the gap between our team of young professionals and the next generation of property experts.

STUDENT HOUSING

The student housing market in Cambridge THIS issue of The Deal focuses on the very real problem of the shortage of student accommodation in Cambridge. We explore some of the ways our clients are investing in this lucrative market and how we’re guiding them through the process.

3,016 – the amount of rooms the University of Cambridge needs to accommodate undergraduates and postgraduates to 2031

89% - the percentage of student beds in Cambridge that currently belong to the city’s universities

29,087 the combined student population of Anglia Ruskin University and the University of Cambridge

2.5% - combined percentage the University of Cambridge plans to grow undergraduate and postgraduates admissions by per year in order to maintain its globally successful institution

Seeking an alternative investment? Will Rooke from our commercial team discusses how the spotlight is firmly on the private student housing sector for property investors looking for robust yield-driven opportunities. With over £2.1bn of investment activity in 2013, there is certainly an appetite among developers for private student housing schemes. With an attractive average yield of more than six per cent it’s an interesting sector for investors to consider. Cambridge has a disproportionately low percentage of private student accommodation, with 89 per cent of student beds in the city falling under the ownership of the University of Cambridge or Anglia Ruskin. It’s a trend that is also starting to influence the Cambridge development

Eighty nine per cent of student beds in Cambridge belong to the city’s universities

market and there is huge potential for switched-on investors to ride the wave. Private operators owned 47 per cent of student beds in the UK in 2012-13 with performance remaining stable through the economic downturn. Cambridge is an attractive proposition for investors, with a student population of 29,087 and a shortage of accommodation, especially for Anglia Ruskin students. Some of our clients have been guided into this unexploited market by our team, with various projects already underway. We’ve just obtained planning consent on a scheme for a further education college at Homerton College. It’s a good size and will provide 126 student beds, particularly relevant for the international students that keep the academic sector buoyant throughout the summer. We are often aware of sites before they hit the market and as we’ve been immersed in the Cambridge property scene for nearly 80

With a student population of 25,000, there is plenty of opportunity for investors in Cambridge

years, this insight means we can facilitate schemes that developers might otherwise miss out on. The planning process can be notoriously slow, so getting the inside track early on allows us to work with the in-house team to get both the financial and valuation work done, but also kick-start the dialogue with the council.

Issue 2 | 3

COMMERCIAL AGENCY

Planning triumph for Homerton College

The new scheme was approved in February 2014

WE are pleased to announce that we have gained full planning consent to build a new student community and residential accommodation near the Homerton Business Centre, between Purbeck Road and Harrison Drive, on behalf of Homerton College. We were instructed by Homerton College to acquire the former Michael Young Centre which we successfully completed in autumn 2011. Having carried out a full property

assessment and identified Abbey College as a potential occupier for part of the site, the college accepted our recommendation to promote a mixed use development with the commercial element to be anchored by Abbey College. Following this, we handled the pre-letting negotiations on behalf of the college and gained planning consent. Our planning team gained consent for a hybrid application that will see new sixth form premises and a boarding school

Premium retailers to make a Marque in Cambridge Following the completion of Cambridge’s ‘tallest residence’ The Marque on 25 February, commercial occupiers are being encouraged to capitalise on the prestigious retail space that occupies the ground floor of the luxury 92-apartment scheme. After we successfully sold and pre-let units two and four, the two remaining retail units have been released to the market on a to let/for sale basis by our agents. The units, which are 2,580 and 9,680 sq ft in size, currently benefit from open A1 shops consent but are considered suitable for alternative uses including A2 and D1, subject to planning. The highly desirable and affluent location of the new development, where Hills Road meets Cherry Hinton Road, offers retailers unrivalled visibility and a lucrative trading opportunity along two of the main arterial routes into the city.

4 | The Deal

“The Marque is a key development for Cambridge and an attractive prospect for retailers who have something exciting to offer the broader residential, business and academic community,” says our senior surveyor Doug Stanton.

The Marque is in close proximity to Addenbrooke’s Hospital and the Biomedical Campus

with 126 rooms built to the north of the site for Abbey College. Ninety residential dwellings and commercial premises will also be erected at the southern end of the site. The decision was made by Cambridge City Council’s planning committee which approved the application by six votes to nil. New educational facilities including 22 classrooms, eight laboratories and a school hall will also be built to provide for the extra students the college wishes to accommodate. A number of existing buildings on the site were constructed after the Second World War, are of poor quality and not conducive to meeting the needs of today’s students. Simon Dazeley, Januarys chairman and Homerton portfolio handler, said: “I am delighted that we have secured this prelet and obtained a dense and attractive planning consent that can accommodate some of the existing tenants on the site within the new development proposal. We have also recently identified a partner for the college to carry out the residential element of this important redevelopment”.

NEWS IN BRIEF

Merrifield sale a CLUSTER of purpose built labs on the outskirts of Cambridge city centre have been sold by our team on behalf of a private investor. The client initially approached our commercial team with a view to letting the high spec units at the Merrifield Centre. However, after being approached by Discover with a lucrative offer for purchase, we advised the client that a freehold sale would be in their best interest. Doug Stanton, who facilitated the sale, said: “Although we were initially approached to let the units, we were satisfied that the offer put forward on behalf of Discovery would allow our client to gain optimum value.”

PROFESSIONAL SERVICES

Block management service up and running OUR property management team is pleased to launch its fully comprehensive residential Block Management Service that can be tailored to individual property needs. The team has in depth knowledge of the local market and currently manage properties across East Anglia. They take a proactive role in managing clients’ individual needs and offer a bespoke service. Their aim is to offer a personal, efficient and cost effective management service on a property-by-property basis. Specifically aimed at developers and managers, the team would welcome the opportunity to talk to people in these roles about their individual property management requirements.

Our services include: • Service charge administration • Preparation of year end accounts • Management of resident meetings • Company administration services • Facilities management including routine site inspections • Full maintenance service • Monitoring contractors and contract management • Health and safety compliance • Provision of buildings insurance

IT PAYS TO KNOW For growing businesses, overhead costs like rent can count for a large portion of outgoings. Januarys surveyor and registered valuer Graham Smith offers essential guidance about what to consider when reviewing rent with your landlord: 1. Don’t ignore the review process It is normal practice for rents to be reviewed every three or five years. If you disagree with a new proposed rent, you still need to comply with the steps required by the lease rent review process in good time. 2.

3. One size doesn’t fit all No lease is alike and rent review clauses vary between each one. Review clauses can be complex so it’s important to make sure you fully understand them before you sign a lease.

The property management team offer a bespoke, tailored service to clients

High praise for professional services team Our professional services team is celebrating after achieving a strong rating in a recent Royal Institution of Chartered Surveyors (RICS) audit. RICS has introduced a more robust assessment system for registered valuers to stamp out irresponsible behaviour in the industry. Previously, professionals were only expected to conduct an assessment online. The team achieved an excellent ‘B’ grade after being assessed over a five hour period during which procedures and documentation were subject to intense

Rents can decrease as well as increase Depending on the terms of your lease, rent can remain consistent, increase or decrease subject to market conditions. Make sure you know the basis of your review process.

scrutiny. A ‘C’ grade is the standard score achieved and only two ‘A’ scores have been awarded nationally. The auditors have failed a number of businesses subject to the assessment to promote responsible practice. Graham Smith, director at Januarys, said: “The audit provides reassuring evidence of the quality product we are providing to a number of national banks. As a result, we are now expanding our team to ensure we continue to evolve the level of professional service we offer.”

Seeking third party advice Your lease will state a specific procedure to follow. If a disagreement arises between you and your landlord about an increase, refer to a surveyor before an arbitrator to negotiate the new rent.

If you’re unsure, ask a professional Leases can be long and complicated and it’s a good idea to seek guidance from a registered valuer or surveyor to make sure you’re fully advised on the conditions of your lease.

Our experienced professional services team is well placed to help with a range of issues. From landlord and tenant issues to valuations and building surveys, they can provide the most relevant and practical advice.

Issue 2 | 5

PLANNING

New urban extension approved at Godmanchester OUR planning team has secured outline planning consent for a new sustainable urban extension to Godmanchester on behalf of The Fairfield Partnership after a lengthy and complex planning process. The Bearscroft development will be situated to the south east of the market town. Outline permission has been granted by Huntingdonshire District Council for up to 753 houses, forty per cent of which will be affordable, including social rented and shared ownership housing. Additional employment land for “B1” class uses such as offices, light industrial and research and development premises is also to

be provided as well new local amenities including a primary school, shopping facilities, recreational areas and a potential doctor’s surgery. Acting on behalf of our client, we promoted the land through the Local Development Framework process and headed up the planning application which resulted in planning consent for the development. The site was initially earmarked for development by Huntingdonshire District Council in its core strategy and forms part of the Council’s adopted housing strategy up until 2026. Associate director Paul Belton said: “We

are pleased to have secured permission at Bearscroft after a complicated but rewarding planning process. This sustainable urban extension will provide extra resources that will benefit Godmanchester as a whole. Prime examples are the delivery of much needed housing, including affordable housing and the provision of more primary school places locally. The approved plans include a new two form entry primary school to help cater for existing as well as emerging local needs.” We anticipate that the first houses will begin construction in 2015.

Student rooms for Milton Road

An application for 211 student rooms at 1 Milton Road has been submitted

WE have submitted an application for 211 student rooms at 1 Milton Road in Cambridge city centre. The site is currently occupied by retailers and has been historically used as office and industrial space. The building is in need of reform and is currently not fit for use. Its central location close to Jesus Green and Midsummer Common deems it a prime location for potential office space.

6 | The Deal

Cambridge City Council has seen a threefold increase in planning applications for student accommodation in the last 12 - 24 months. With demand for undergraduate accommodation growing at an average of 0.5 per cent per annum and postgraduate by two to three per cent per annum, many areas in Cambridge are being considered for development.

FOCUS ON: DEVELOP

Developing the next generation! At Januarys, we’re keen to nurture the talent of property professionals who will be key players in the future of our industry. We employ some of the most experienced professionals in our trade who have a wealth of knowledge and expertise to share with the next generation of property experts. ‘Develop’ was our inaugural event to kick start this process. Focusing on using our team to stimulate the minds of Land Economy post graduate students from the University of Cambridge, we got to work! The students addressed the shortage of student housing in the city at a special workshop held in Cambridge on 7 March. Our ‘Develop’ event, which was supported by Lloyds Bank, established a bridge between current and upcoming professionals by encouraging Land Economy students to tackle the topical problem affecting the built environment in Cambridge. University of Cambridge Land Economy lecturer, Dr Nicky Morrison, said: “Develop was a good opportunity for my students to interact with young professionals already making an impact in the property industry. The task was very relevant to their course and the relaxed atmosphere at the event provided a great forum for discussion.” In practical and interactive break-out sessions, teams of postgraduates were given five sites that could potentially be used for student housing. They then compiled a case for which of the plots would be the most suitable to develop, stating the reasons behind their conclusions. The Januarys

(L-R) Colin Brown from Januarys with winning team ‘Developers United’ and University of Cambridge lecturer Dr Nicky Morrison

Cambridge University Land Economy postgrads joined Januarys to tackle student housing issues in Cambridge

team and Barry Coote, relationship director at Lloyds Bank, rewarded the group they felt presented the soundest argument with restaurant vouchers. The “Developers United” team strongly argued the case for a student development on Milton Road. Januarys managing director Colin Brown commented: “Mindful that our industry can be tough to break into, we are very keen to support tomorrow’s property professionals and Develop has given us a great opportunity to do this in an informal setting. The students gained valuable insight from the younger members of our team, who are well placed to engage and

share their considerable knowledge with the postgraduates. We were very pleased to see in our feedback forms that all the students who attended would like to take part in another workshop because they found it very useful.” With the continued support of the University of Cambridge and Lloyds Bank, we are planning to partner again next year to ensure Develop becomes an annual event.

What did the students think?

“Exceeded expectations, well organised, good turn out and enjoyable”

“I found Develop very useful. It will help with my studies at uni and develop my practical knowledge”

“Having industry professionals on hand to guide the activity was a great help”

“I would definitely recommend the workshop to other students”

Issue 2 | 7

COMMUNITY

Happy retirement! We said goodbye to our planning secretary Lindsay Thompson in February as she retired. She played an important role in our business, linking everything (and everyone!) in the planning team together to make sure we could run a smooth operation. We wish Lindsay the best of luck in her retirement – she’s recently bought a puppy who is bound to keep her busy!

UPCOMING EVENTS

Dates in our diary Jun 5 2014

Jul 11 2014

Sept Lindsay retires from Januarys after five years’ service

Januarys at play Januarys and its sister company Bradshaws took to the bowling alley for a New Square Holdings social in March. Organised by Kirstie Watts from Bradshaws, 20 staff took to two lanes to show off their bowling prowess.

(L-R) Mark Wood from Bradshaws, Sam Turner, Doug Stanton and Helen Smith from Januarys, Pauline McKinven from Bradshaws and Colin Brown from Januarys

We stretch our legs Four members of our team took part in a 67 mile bike ride following encouragement from managing director and cycling enthusiast Colin Brown. Graham Smith, Justin Bainton, Paul Belton and Colin Brown started the circuit in St Ives on 23 March in what proved to be rather challenging weather conditions. The team also took part in the AECOM 100K bike ride which saw industry professionals take to the road in a competitive challenge.

24 2014

Cambridge City Centre – 5.30pm Tour de France treasure hunt

Trinity Hall, Cambridge – 2pm We sponsor the Cambridgeshire Chambers of Commerce’s first garden party Cambridge Airport – 11am We are the main sponsors at the Cambridgeshire Chambers of Commerce exhibition - come and say hello!

Nick’s testing triathlon Our very own Nick Muncey will be taking to the water as well as the land when he competes in the Kimbolton triathlon on 20 July in aid of Arthur Rank Hospice Charity. Now the weather is warming up, Nick has been taking every opportunity to jump on his bike, don his running vest and dive in the pool to make sure he’s ready for the challenge.

Nick is currently in training for his triathlon in aid of the Arthur Rank Hospice Charity

We continue our support of ARHC

WE are pleased to announce that we will continue supporting the Arthur Rank Hospice Charity for a second year following a successful partnership in 2013. We donated almost £2,700 last year as a result of several fundraising initiatives and activities including our inaugural treasure hunt around Cambridge city centre last May which raised £1,673.