2010 Kent Property Market

2010 Kent Property Market THE ANNUAL GUIDE TO INVESTMENT & DEVELOPMENT IN KENT

KENT PROPERTY MARKET 2010

Contents

1

Welcome

12

Retail performance

22

Inward investment

3

Property market

14

Feature on Kent Design

24

Regeneration

4

Economy

17

Legal update

29

Green infrastructure and offshore wind power

6

Business park performance

18

Rural performance

30

Strategic developments

8

Office performance

20

Leisure and tourism performance

33

Contact details

10

Industrial and distribution performance

21

Residential performance

34

Acknowledgements

St James the Great Primary School, West Malling

High Speed domestic train

Welcome Welcome to the nineteenth edition of the Kent Property Market Report, produced by Kent County Council’s regeneration and economy division, Cluttons LLP and Locate in Kent, with support from Cripps Harries Hall LLP and Smiths Gore, and endorsed by RICS. The report reviews activity and major property deals throughout 2009-10, showing that despite the economic outlook, the Kent commercial property sector is continuing to perform comparatively well against the UK and south east. The report also looks in detail at the rural, retail, tourism and housing sectors.

The economy section reports that although there is shallow and uncertain growth forecast for the UK in 2010-11, Kent is in a favourable position compared to some other parts of the country due to its diversity and lack of dependence on a single sector. The area is also starting to reap the benefits of the new high speed trains and despite the downturn, development plans are well advanced and proceeding, and include some of the most significant investment opportunities in the south east.

The regeneration section features current and planned developments across Kent and Medway, focusing particularly on the growth areas of Thames Gateway Kent and Ashford and also regeneration projects in Canterbury and the coastal towns.

The strategic developments pages feature all key commercial sites and developments throughout Kent, as well as providing useful contact details and location map.

The full report can also be accessed via an interactive website www.kentpropertymarket.com.

If you would like further information on any of the developments or projects featured please do not hesitate to contact us. For contact details please see page 33.

Cluttons LLP is an independent, professional firm of chartered surveyors delivering a wide range of commercial and residential property services including professional and valuation advice, property management, agency and development advice, rating, and project and building consultancy.

Kent County Council’s regeneration and economy division is responsible for working with the public, private and voluntary sectors to support Kent’s economy, bring forward sustainable communities and encourage new business.

Locate in Kent provides a comprehensive, confidential and free business relocation and advisory service for all companies looking to relocate to or expand in Kent and Medway.

Kevin Lynes - Cabinet Member for Regeneration and Economic Development, Kent County Council

Alison Owen - Partner, Cluttons LLP

Paul Wookey - Chief Executive, Locate in Kent Ltd

We hope you find the report useful and informative.

This year’s report also highlights the importance of good design in all types of development that meets clients’ and government’s expectations, especially during a challenging economic environment.

1

KENT PROPERTY MARKET 2010 Beaufort Apartments, Sandgate

Beaufort is a beachfront development of luxury apartments, consisting of two contemporary buildings, just 30m from Sandgate Castle. (Architect: Lee Evans Partnership) 2

Property Market

Investment yields Equities

% Change a year

2

Industrial rental values in Kent suffered for the second consecutive year in 2009 with values declining by -2.6%, although not as dramatic as the UK average which diminished by -4.5%. In spite of the reduction in rents, industrial yields in Kent shortened 37bp to 8.8% during 2009. This reduction compares with a fall of 10bp for both the UK and the south east.

*basis points (bp)

Dec 2009

Dec 2008

Dec 2007

Dec 2006

Dec 2005

Dec 2004

Dec 2003

Dec 2002

Dec 2001

Dec 2000

UK property total returns All property

Retail

Office

25

Industrial

Forecast

20 15 10

-5

2012

0

2011

5

2010

Throughout the year there has been a significant decline in retail warehouse rental values with Kent values down -7.3% in 2009, following a fall of -0.5% in 2008. Values nationally fell more softly by -6.0% in 2009, following a fall of -0.4% and across the south east values fell similarly by -5.9% in 2009 and -0.5% in 2008. In terms of yields, retail warehouse shortened across the UK, south east and Kent to 7.1%.

Source: Cluttons LLP

2008

High street retail rental values took a dramatic turn in 2009 as retailers suffered from consumer retrenchment; in Kent alone rental values fell by -5.2%. High street retail yields shortened, with yield compression of 49bp to 7.3% seen in the latter months of 2009. The UK and south east showed similar trends, with yields shortening by 40bp to 7.1% and 60bp to 7.0% respectively.

0

2009

Ten years of positive rental value growth for Kent offices came to an end in 2009, with rental values showing a fall of -4.8%.

Despite the sharp decline, Kent has continued to outperform both the UK and south east averages, where office rental values in 2009 fell by -13.7% and -7.7% respectively.

4

2007

Kent property market

6

2006

Looking forward, capital values are expected to increase by 6% by the end of 2010, before weakening in 2011 with a small rise of 2%, followed by some improvement in 2012.

Rental values are expected to fall in 2010 by -2%, returning to positive growth in 2012 after a year of static values. All property total return is predicted to be 8% in 2011, whilst over the longer term, the period 2010 to 2014 is expected to show total returns of 10.3% per annum.

8

2005

Over the last year the focus for most lenders has been on getting existing loans in order rather than investing in new business, with many actively seeking to reduce their exposure to commercial property. Although lending across the year increased marginally from 2009, there are as yet few signs of a significant recovery.

In 2009, Kent office yields rose by just 15bp*, remarkably lower than the rise of 244bp recorded in 2008. National trends demonstrated that after a lengthening of yields in the first half of 2009, the latter half of the year saw some yield compression. In the south east region, yields rose by 10bp to 9.4%, whereas the UK average yield shortened by 30bp to 8.0%.

% p.a.

In the first half of 2010 investment levels were up year-on-year with around ÂŁ16.4billion of commercial property transactions taking place to the end of July. However, levels remain well below the heady days of 2007 as the availability of debt finance for commercial property remains much lower.

Property

10

UK property market The stabilisation of the UK commercial property market has continued over the last year; the IPD index shows that UK total returns remained in positive territory through the second half of 2009 and into 2010 across all property sectors.

Gilts

-10 -15 -20 -25

Source: Cluttons LLP

3

KENT PROPERTY MARKET 2010

Economy Global economic outlook

The outlook for the UK

In most economies, the past year has seen an end to the deepest recession in recent decades. After sharp falls in output in 2008 and 2009, Britain, Europe and the United States have returned to growth in 2010. Meanwhile, the emerging markets of Asia continue to expand rapidly.

Britain is growing again. The quarter on quarter growth rate in the three months to June 2010 was the fastest in nine years, and average forecasts project growth of 1.5% in 2010, rising to 1.9% in 2011. This outlook is rather better than that of the eurozone, reflecting improvements in Britain’s competitive position following the depreciation of sterling in 2008/09.

Interest rates are unchanged at 0.5% since 2009 and are likely to remain low.

However, there are still dangers ahead. Concerns over levels of sovereign debt in several European countries have highlighted the risks of government borrowing, with austerity measures being implemented across the continent.

As stimulus packages come to an end and governments’ focus on retrenchment, the risk of falling demand impacting growth is real.

Government policy in 2010 will focus particularly on the stabilisation and reduction of the UK’s budget deficit, historically high at 10.5% of GDP. The government has announced significant spending cuts, with a rise in VAT to 20% kicking in from January 2011. While reducing future costs of

Competitiveness indicators

4

Indicator

Kent

South East

GB/UK

Source Date

Gross value added (GVA) per head (£)

£16,102

£21,248

£20,430

2007

Gross disposable household income per head (£)*

£15,587

£16,792

£14,889

2008

Gross median full-time weekly earnings (£)*

£520

£536

£491

2009

No qualifications (%) - working age*

11.7%

8.9%

12.4%

2008

NVQ 1 (%) - working age*

16.8%

14.5%

13.7%

2008

NVQ 2 (%) - working age*

16.9%

16.1%

16.0%

2008

NVQ 3 (%) - working age*

18.4%

17.3%

15.9%

2008

NVQ 4 or above (%) - working age*

25.6%

31.5%

29.0%

2008

Employee change 1998-2008 (%)

12.6%

9.7%

9.5%

2008

% Employees in the knowledge economy

14.0%

20.6%

18.7%

2008

Annual average unemployment rate (%)

3.2%

2.9%

4.0%

2009

New businesses as a % of stock

11.1%

10.9%

11.7%

2008

Business survival rates after 3 years (%)

63.3%

67.4%

64.6%

2008

All figures include Medway, apart from those marked * which are for the KCC area only.

Source: Compiled by Research and Intelligence, Kent County Council, April 2010 NB. Growth projections are taken from the Economist Poll of Forecasters, October averages and Economist Intelligence Unit estimates

borrowing and market pressure, these measures may limit demand in the short to medium term.

The election of the new government in May also marked a change in regional economic policy, with the abolition of regional development agencies. This is likely to lead to increasing competition for public investment between different parts of the country and a sharper emphasis on job and business creation, and Kent is currently preparing for this change.

The outlook for Kent Kent generally tracks the performance of the national economy. GDP growth forecasts for the county are therefore likely to reflect how the UK fares in 2010/11, with the economy returning to growth.

However, the county is in a favourable position compared with some other parts of the country. Unemployment remains below the national average and has stabilised over the past year following sharp rises during the recession. Kent’s economy is likely to benefit from its diversity and lack of dependence on any single sector. It will also be assisted by its proximity to London, given the likelihood of faster growth in the capital than in other parts of the country.

In addition, Kent is starting to reap the benefits of major recent infrastructure investment. High Speed domestic rail services between Ashford, North Kent, East Kent and London began in December 2009, dramatically reducing journey times and increasing the county’s long-term attractiveness as a business location. Despite the recent downturn, development plans for Kent’s regeneration and growth areas in the Thames Gateway, Ashford and the coastal and principal towns are advancing, including some of the most significant investment opportunities in the south east.

The Quays, Chatham

The Quays consist of two landmark towers and a five storey wharf, with leisure and retail facilities, set in the heart of Chatham Maritime.

5

KENT PROPERTY MARKET 2010 Lakeview East & West, Crossways, Dartford

Business Park Performance Across the south east headline rents have shown little growth over the past year but the region has fared relatively well compared with the rest of the UK, where the IPD index has shown the value of prime business parks fell by 4.1% over the last 12 months. Within Kent, headline rents suggest slight improvement, but as tenants negotiate for favourable terms the underlying rental values have fallen around 5%.

Around 45% of transactions involved new space on business parks. At Kings Hill, Liberty Property Trust UK achieved a 100% tenant retention throughout 2009 into 2010. New takeup on the park equated to 13.3% of total new take-up for the south east. As a result, Kings Hill occupancy at the start of 2010 was 97% and is on target to end 2010 at around the same level.

Business park rents 2006-07

2007-08

2008-09

2009-10

350 300

£/m2

Activity at Crossways, Dartford has been steady. Towards the end of 2009, Kuehne & Nagel took a 10 year lease on 1,579m2 (17,000ft2) at Lakeview East at £215.38m2 (£20ft2), while Balfour Beatty secured 1,133m2 (12,200ft2) at Crossways Point at £247.57m2 (£23ft2). Waterside Court has attracted lettings of units 2, 5 and 9 at £242.20m2 (£22.50ft2).

As banks have continued to restrict lending criteria for would-be-purchasers, Frogmore Estates has responded by introducing a ‘freezehold’ scheme at their Schooner Park and Waterside Court developments. The initiative allows occupiers to lease premises first and buy later at a predetermined price, as recently completed by Gunning Transmission and Distribution Services on unit 5.

Gillingham Business Park has welcomed new lettings in the year, with STI Line Packaging taking 2,398m2 (25,811ft2) at Phase 19, and a sale of the same unit is currently progressing.

250

200 150 100 50

Eureka Park, Ashford

Chatham Maritime, Chatham

Crossways, Dartford

Kings Hill, West Malling

Chineham Business Park, Basingstoke

Arlington Business Park, Reading

Stockley Park, Heathrow

0

6

As supply continues to decline on the main business parks in Kent we would expect rental values to hold firm. This compares favourably to M25 and M4 locations where vacancy remains high and landlords are expected to offer tenants concessions to stay.

Source: Cluttons LLP

The likelihood of speculative development in the immediate term is slim, but plans are being put in place. At Kings Hill, detailed planning consent has been granted for the Office Campus which will provide 6,968m2 (75,000ft2) over six office buildings available on a leasehold and freehold basis.

Development will commence once the scheme is 50% pre-let or demand increases sufficiently to warrant construction on a speculative basis. Adjacent to this site, Rolex completed its new headquarters building earlier this year.

With Northdown and Herald now 100% occupied at Eureka Park, Ashford, Quadrant Estates is hoping to commence the tender process later in the year with a view to completing

Courtesy of Frogmore Estates

Northdown II by July 2011. The scheme will provide two buildings offering units of 158m2 (1,700ft2) to 1,394m2 (15,000 ft2). All but one of the units at Eureka Place are let.

At White Cliffs Business Park, Dover, Muse Developments has submitted an application for a turnkey development, while Hulssems Holdings has already received permission to build three new industrial units totalling 15,280m2 (164,474ft2).

Prime yields for business parks in the south east have risen to 6.25%, driven for the most part by a lack of availability of large quality lots. More recently investors are concentrating on prime stock and sentiment appears to be softening as caution comes into play. Deals to note in the county include the sale of Imperial Tobacco Pension Trustees’ 26 Kings Hill Avenue to Aviva Investors for £6.25million, representing a yield of 8.45%.

Office Campus, Kings Hill Courtesy of Liberty Property Trust UK

Schooner Park, Crossways, Dartford Courtesy of Frogmore Estates

Northdown II, Eureka Park, Ashford Courtesy of Quadrant Estates

Lettings Location

Landlord

Tenant

Size ft2

Rent (pa)

Lease Term

Agent

Herald, Eureka Park, Ashford

Quadrant Estates

Smiths Medical International

11,550

£225,235

15 years with tenants break in 2020

Martine Waghorn, Knight Frank, Bidwells

10 Kings Hill Avenue, Kings Hill

Kings Hill Unit Trust

Tieto UK Ltd

4,596

Confidential

9 years

Altus Edwin Hill, Hanover Green, Knight Frank

11 Tower View, Kings Hill

Kings Hill Unit Trust

Skye-IT Ltd

2,594

Confidential

10 years

Altus Edwin Hill, Hanover Green, Knight Frank

Suite 2 Inca House, Eureka Park

Merritts Properties

E&C NHS PCT

2,359

£30,000

12 years

Taylor Riley

Unit 5 Schooner Park, Crossways Business Park, Dartford

Frogmore Estates Ltd

Gunning Transmission and Distribution Services

1,094

£12,635

10 years (with option to purchase)

Altus Edwin Hill, CB Richard Ellis

Location

Vendor

Purchaser

Size ft2

Tenant

Price

Income

Yield

Agent

Lakeview East, Crossways Business Park, Dartford

Frogmore Developments Limited

Clerical Medical

17,085

Kuehne & Nagel Limited

£4.03million

£341,700

7.93

Egan Lawson LLP, Tudor Toone

Collingwood House, Crossways Business Park, Dartford

Private client

Private individual

8,048

vacant

£1.6million

n/a

n/a

Caxtons

13-14 Swan Business Park, Dartford

Downtown London Ltd

Confidential

3,000

vacant

£400,000

n/a

n/a

Glenny LLP

Sales

7

KENT PROPERTY MARKET 2010

New hotel planned for Eclipse Park, Maidstone

Beechwood Business Park, Dover

Springfield Square, Maidstone

Office Performance In the wake of the recession, occupier demand has continued to fall away, with take up in the south east as a whole down nearly 50%. That said, although availability increased significantly during the first half of 2009, it fell during the first half of 2010.

As few occupiers have had the capacity to expand, there remains an absence of requirements for accommodation over 465m2 (5,000ft2), but with limited large floor plates, or even modern space available, rents in Kent have remained firm.

However, the market continues to be dictated by short term, flexible agreements.

Those occupiers of good covenant strength able to commit to longer lease terms have been well placed in negotiations.

In Sevenoaks, Bel UK has taken 929m2 (10,000ft2) at BT’s headquarters building on a 10 year lease at a rent around £215m2 (£20ft2). Partly vacated by BT in 2008, the space was initially available at £269m2 (£25ft2).

8

Demand for leasehold rural offices remains reasonably buoyant. At Bradbourne Stables, East Malling, numerous lettings have been achieved throughout the year with headline rents achieving £172m2 (£16ft2).

As occupier demand dwindles, property owners have had to reconsider their strategies for vacant buildings. In Chatham, the 7,711m² (83,000ft2) Mountbatten House has struggled to find new tenants since Lloyds TSB vacated in 2008. Mapeley has appointed Thamesis Estates to oversee letting a third of the building to a hotel chain whilst the remainder is refurbished.

Town centre office development remains stagnant, limiting the supply of new, modern space. A number of towns are dominated by second hand stock. At Eclipse Park, Maidstone, construction of phase 2 remains inactive pending interested occupiers looking to pre-let space. Development on the site looks set to continue however, with Gallagher acquiring planning permission for a 150-bed business hotel earlier this year.

In Canterbury, the local office market is set for a boost with the city council’s decision to grant Palace Estates Developments Ltd planning permission for up to 5,000m² (53,820ft2) of high-quality office space at the former Wyevale Garden Centre site, Upper Harbledown.

At Cheriton Parc, Folkestone, Paraholdings Limited has commenced work on a single office building of 1,129m² (12,150ft2), which will be part owner-occupied, part let and

in Sittingbourne, Conqueror Court, Watermark, has witnessed a flurry of lettings.

In Dover, one of the UK’s most energy efficient offices has been developed at Beechwood Business Park, Port Zone. The building, claimed to be 80% more efficient than conventional designs, has been developed by Van Developments for WCR Property to Passivhaus standards. Features include triple glazed windows and an external wall insulation system which dramatically reduces running costs and lowers carbon footprints. Interest has been received from several occupiers looking for a flagship building with green credentials.

In spite of office investment transactions remaining limited, sentiment has improved and yields are beginning to stabilise; UK-wide yields fell 1% between quarter three 2009 and the beginning of 2010. Across the south east, average prime yields improved from 7.25% in quarter three 2009, to 6.25% through the first two quarters of 2010. In Kent, there is evidence of an appetite for well-let properties, although there is limited stock coming to the market. In Tunbridge Wells, Longford House, a 2,109m² (22,701ft²) four storey building sold in June 2010 at a net initial yield of 9.9%. In Maidstone, Press Print House sold at auction for £312,000, equating to a yield of 7.21%.

Lettings Location

Landlord

Tenant

Size ft2

Rent (pa)

Lease Term

Agent

1 Hermitage Court, Maidstone

Gallagher Group

MCCH

12,250

£251,125

15 years

Altus Edwin Hill, Sibley Pares

1 & 2 Tolherst Court, Maidstone

Teresa Ltd

Aldermore Bank Plc

4,057

£85,197

6 years

Martine Waghorn

7 Conqueror Court, Watermark, Sittingbourne

Highcross

Balfour Beatty

3,052

£31,710

10 years

BNP Paribas Real Estate, Harrisons, Watson Day

Oxford House, Mount Ephraim Road, Tunbridge Wells

Sion Holdings

Ward Mackenzie

1,495

£22,425

5 years (break at third)

Durlings

Sales Location

Vendor

Purchaser

Size ft2

Tenant

Price

Income

Yield

Agent

Lyndean House, Maidstone

Knightley Properties Ltd

Private individual

12,131

Various, part vacant

£600,000

£31,000 receivable (£84,000 ERV)

–

Clive Emson, Cluttons LLP

Units 1 and 2 Conqueror Court, Watermark, Sittingbourne

Highcross

Selt

8,507

n/a

£1.4m

n/a

n/a

BNP Paribas Real Estate, Harrisons, Watson Day

Brewery House, Westerham

Antler Property

Private company

3,700

n/a

£750,000

n/a

n/a

Karrison

Office rents

Office rental growth

Office average yields

Kent

2009-10

2008-09

250

10

200

5

% Change a year

15

150

100

UK

South East

Kent

UK

South East

12 11 10

% Yield

2007-08

300

0

9 8

-5

Source: Cluttons LLP

Source: Cluttons LLP

Dec 2009

Dec 2008

Dec 2007

Dec 2006

Dec 2005

Dec 2004

Dec 2003

Dec 2002

Dec 2001

Dec 2000

Dec 1999

Dec 1997

Dec 1998

Dec 2009

Dec 2008

Dec 2007

Dec 2006

Dec 2004

Dec 2005

Dec 2003

Dec 2002

Dec 2001

Dec 2000

Dec 1999

Dec 1998

Dec 1997

Dec 1996

Thanet

Tonbridge

T.Wells

Sittingbourne

Sevenoaks

Medway

Maidstone

5

Gravesend

-15

Folkestone

0

Dover

6

Dartford

-10

Canterbury

50

Dec 1996

7

Ashford

£/m2

2006-07

Source: Cluttons LLP

9

KENT PROPERTY MARKET 2010

Industrial and Distribution Performance The latest CBI surveys report that the manufacturing sector remains on the path to recovery with improving overseas orders and UK exports. Employment has also stabilised. Despite this, the sector remains under pressure due to increases in output prices, with unit costs up 26% over the last quarter.

Plans to build larger prime space continue to come forward, however. Following their success at G-Park, Sittingbourne, Gazeley has gained planning consent for a 25,548m2 (275,000ft2) high bay building at junction 2 of the M2 at Strood.

Occupier demand across the county diminished throughout 2009/2010 with pressure on values. There is evidence of prime headline rents holding, (Frogmore’s Schooner Park on Crossways Business Park achieved £123.77m2 (£11.50ft2)), but with occupiers being offered favourable incentives, actual rents across the county have fallen. That said, the limited supply of larger size or new buildings has led to a slower fall in rental values compared to the rest of the UK.

After an encouraging summer, smaller manufacturing and production companies expect a slow down to the end of 2010. Demand for smaller unit schemes therefore remains weak, especially where a number of speculative developments were carried out, and capital values in particular have been reduced. At Equilibrium, Parkwood, phase 1 of the development has recently completed with one letting already achieved. Phase 2 is on hold due to prevailing economic conditions.

In spite of poor uptake of space, warehousing demand remains, especially from distribution and waste and recycling operators, with trends showing occupiers reverting back to core distribution locations within the M25. At The Interchange, Swanley, O Twelve Estates secured Dreams Bed Superstores on a 10 year lease for 4,494m2 (48,373ft2) at £70m2 (£6.50ft2), and Ideal Waste Paper took 6,272m2 (67,511ft2) at The Teardrop Centre, Swanley.

With site preparation almost complete, formal marketing of phase 1 Neats Court, Isle of Sheppey has commenced.

Plots are available from 0.40ha to 8.09ha (1ac to 20ac) with planning permission for B1, B2 and B8 uses.

At Orbital Park, Ashford, new development continues with Supercups Vending Ltd building a bespoke 696.75m2 (7,500ft2)

headquarters building. Salmon Harvester owns the last significant parcel of land available for development on the park.

To the east of the county, developer China Gateway International has revealed schemes for 66,889m2 (720,000ft2) of space at its 42.9ha (106ac) site at Manston. China Gateway achieved consent for a 139,353m2 (1.5mft2) development in 2008 but due to lack of funding has altered the scheme, to build six globalisation centres which will house small and medium sized enterprises.

In Maidstone, following a public enquiry, AXA Real Estate Investment Manager’s plans for Kent International Gateway rail freight scheme have been dropped.

In spite of challenging occupier markets, industrial investment has been relatively active with an improvement in yields for better stock. In the county, this is led by the lack of supply with prime yields in the region of 7-7.25%, while older stock is still 8.5% plus. Earlier this year, O Twelve sold The Interchange for a consideration of £24.4million representing a net initial yield of 6.8%, a fall of £1.4million on its initial purchase in 2007, while Haslemere Industrial Estate, Maidstone, recently sold for around 6.4% having previously sold in December 2008 at 8.9%.

Lettings

10

Location

Landlord

Tenant

Size ft2

Rent (pa)

Lease Term

Agent

The Teardrop Centre, Swanley

SEGRO

Ideal Waste Paper

67,513

£472,590

15 years

Altus Edwin Hill, CB Richard Ellis

Unit 4 Larkfield Mill, Aylesford

O Twelve Estates

All Saints Retail

44,880

£224,400

10 years

Altus Edwin Hill, Strutt & Parker

Units 3 and 4, Brunswick Industrial Estate, Ashford

B-Serv

Menzies Distribution

12,775

£86,250

15 years

Bidwells, Taylor Riley

3 Haslemere Industrial Estate, Parkwood

Milton (BVI) Ltd

Atlantis Enterprises Ltd

8,127

£52,825

10 years

Altus Edwin Hill, Martine Waghorn,

Unit 6, Nimbus Enterprise Park, Maidstone

Valad Property Group and Benchmark

Balreed Digital Limited

7,062

£56,496

10 years

Core Commercial, Altus Edwin Hill

Sales Location

Vendor

Purchaser

Size ft2

Tenant

Price

Income

Yield

Agent

Spectrum West, 20/20 Industrial Estate, Maidstone

Private client

Knight Frank IM LLP

101,516

Various

£8.4m

£633,755

7.55

Jones Lang LaSalle

Connections Industrial Estate, Vestry Road, Sevenoaks

Private pension fund

Legal & General Property Partners Limited

82,740

Various

£8.7m

n/a

7.30

King Sturge

Haslemere Trading Estate, Parkwood

Milton Group

Invista REIM

62,370

Various

£4.3m

£279,000

6.42

Strutt and Parker

Premises at Shearway Business Park, Folkestone

Private client

Private client

18,000

Church & Dwight UK Ltd

£950,000

£87,500

9.21

Clive Emson, Smith Woolley & Perry

18/22 John Wilson Business Park, Whitstable

Alburn

QStraint

4,900

Vacant

£395,000

n/a

n/a

BTF

Industrial rents 2006-07

Industrial rental growth 2007-08

2009-10

2008-09

Kent

Industrial average yields

UK

Kent

South East

UK

South East

100

12

10

£/m2

% Change a year

60

40

8

11

6

10

4

9

% Yield

80

2

8

0 7 -2 6

-4

Source: Cluttons LLP

Dec 2009

Dec 2008

Dec 2007

Dec 2006

Dec 2005

Dec 2004

Dec 2003

Dec 2002

Dec 2001

Dec 2000

Dec 1999

Dec 1998

Dec 2009

Dec 2008

Dec 2006

Dec 2007

Dec 2004

Dec 2002

Dec 2003

Dec 2001

Dec 2000

Dec 1999

Dec 1998

Dec 1997

Dec 2005

Source: Cluttons LLP

Dec 1997

5

-6 Dec 1996

Thanet

Tonbridge

T.Wells

Sittingbourne

Sevenoaks

Medway

Maidstone

Gravesend

Folkestone

Dover

Dartford

Canterbury

Ashford

0

Dec 1996

20

Source: Cluttons LLP

11

KENT PROPERTY MARKET 2010

Retail Performance The CBI surveys suggested a modest improvement in retail sales volume during the first quarter of 2010, with a sudden drop during May and June. The FIFA World Cup appears to have contributed towards better sales performance during July into August, but given the forthcoming austerity measures, recovery in consumer spending is expected to be restrained.

In all but three locations, Kent towns have witnessed a fall in high street rental values. With the public sector pay freeze, cuts, and the VAT rise due in January, rental growth prospects are limited.

That said, the vacancy rate within Kent remains below the 15% national average. Former Woolworths stores within six towns have found new occupiers. Supermarkets continue to be fairly active, with Tesco leasing a unit on Week Street, Maidstone, and a 371m2 (4,000ft2) store in Folkestone for 20 years at £57,500pa. However, Asda has withdrawn plans for a new store within the Dover Town Investment Zone. The council is continuing negotiations with Bond City Limited with a view to submitting alternative proposals in November 2010.

Westwood Retail Park was redeveloped in early 2009, and is now fully let. Rents achieved range between £258.35m2 to £269.10m2 (£24ft2 to £25ft2).

Bluewater reported six months of consecutive sales growth, and secured new retailers including Uniqlo, All Saints, HedKandi and Kraft’s first Cadbury Cocoa House.

Rents remain higher than at other regional shopping centres, with the exception of Brent Cross.

Investor activity has improved since late 2009, but it is concentrated on prime property. Overall yields for high street units have hardened, with some small lots performing better than expected, particularly at auction. The gap between yields for prime and secondary stock has continued to widen. IPD suggests prime yields across the south east of 5.5% in July 2010 compared with 6.5% in July 2009.

Secondary stock yields remain between 7.5% and 8.5%.

John Lewis is set to open a John Lewis at home shop at Kingstanding Business Park, Tunbridge Wells, investing £9million in the 4,545m2 (50,000ft2) store.

Planning permission has been secured on the former cinema site in Tunbridge Wells comprising 9,940m2 (107,000ft2) of retail plus hotel, with bids from prospective purchasers submitted in August 2010.

The retail warehouse market has improved with continuing demand in Maidstone, Canterbury and Tunbridge Wells where rents have reached £301.39m2 (£28ft2). Development continues at Fountains Park, Tunbridge Wells, with phase 2 nearing completion. The Link, Westwood Cross, which opened in early 2009, has attracted Smyths Toys and Hobbycraft, although seven units remain vacant.

The strong investor appetite for retail parks and shopping centres during the end of 2009 into 2010 is softening, especially for secondary schemes. Aviva Investors pulled out of purchasing Fremlin Walk, Maidstone in June, which would have represented a yield of around 6.5%. However, two months earlier Ignis UK Property Fund bought the 7,246m2 (78,000ft2) Bligh’s Meadow, Sevenoaks at a reported £27.9million, a yield of 5.93%.

Lettings

12

Location

Landlord

Tenant

Size ft2

Rent (pa)

Lease Term

Agent

86-88 Week Street, Maidstone

Ambassador Holdings Limited

Tesco Stores Ltd

5,300

£50,000

20 years (5 yearly reviews, tenant break at year 10)

Jackson Criss, Morgan Williams

143 High Street, Sevenoaks

Birchtree Properties Ltd

Valentinas

2,230

£50,000

10 years

Durlings

58 Calverley Road, Tunbridge Wells

Taurus Holdings

Card Factory

1,784

£65,000

10 years

Brian Cradick & Company, Picton Jones & Co

16 High Street, Canterbury

Private client

Money Shop

1,350

£62,800 net rent

10 years

Brian Cradick & Company, Reid Rose Gregory

8 Eureka Place, Ashford

Quadrant Estates

Unique Seafood Ltd

930

£20,460

20 years (tenant break at 10)

Martine Waghorn

Sales Location

Vendor

Purchaser

Size ft2

Tenant

Price

Income

Yield

Agent

Bridge Street, Dover

Private investor

Colliers Capital UK Limited

50,700

Morrisons

£17.3m

£912,604

5.29

Edgerley Simpson Howe LLP, Stockford Staunton

20/21 High Street and 13 Best Lane, Canterbury

Canada Life Group

CBRE Investors

10,118

French Connection, Oxfam, WH Smith

£3.6m

£263,750

7.34

Hoddell Stotesbury Morgan

104 Foord Road, Folkestone

Private client

Private investor

4,367

Tesco Stores Limited

£1m

£60,000

5.82

Allsop

12-14 St George’s Street, Canterbury

LaSalle Management

Private individual

4,133

Next, Phones 4U

£2.8m

£215,560 Net rent

7.7

Hartnell Taylor Cook LLP, Lewis & Partners

24 Week Street, Maidstone

Private

Hart Street Properties Ltd

2,653

TUI UK Retail Ltd

£935,000

£76,600

8.19

Cushman Wakefield

13 High Street, Deal

Private individual

George Riley Estates Limited

1,582

Specsavers

£630,000

£43,460

6.9

Harmer Ray Hoffband

9 High Street, Whitstable

Private individual

Private individual

1,431

Costa Ltd

£615,000

£39,000

6.34

Allsop

Retail rents

High street retail rental growth

2006-07

2007-08

2009-10

2008-09

Kent

UK

High street retail average yields South East

Kent

2500

UK

South East

10 8 9

6

2000

£/m2 1000

8

2

% Yield

% Change a year

4 1500

0 -2

7

6

-4

500

5

Source: Cluttons LLP

Dec 2009

Dec 2008

Dec 2007

Dec 2006

Dec 2005

Dec 2004

Dec 2003

Dec 2002

Dec 2001

Dec 2000

Dec 1999

Dec 1998

Dec 1997

Dec 2009

Dec 2008

Dec 2007

Dec 2005

Dec 2004

Dec 2003

Dec 2002

Dec 2001

Dec 1999

Dec 2000

Dec 1998

Dec 1997

Dec 2006

Source: Cluttons LLP

Dec 1996

4

-8 Dec 1996

Thanet

Tonbridge

T.Wells

Sittingbourne

Sevenoaks

Medway

Maidstone

Gravesend

Folkestone

Dover

Dartford

Canterbury

0

Ashford

-6

Source: Cluttons LLP

13

KENT PROPERTY MARKET 2010

Singleton Environment Centre, Ashford

Kent Design

Principles of good design

North Kent Police Station, Gravesend

Design principles of successful streets, spaces, villages, towns and cities consist of the following characteristics:

The Kent Design Initiative (KDI), led by Kent County Council (KCC), is an informal partnership which brings together all the key sectors of the development industry -

•

Character - a place with its own identity;

•

Local authorities (who also part-fund the KDI);

Good design is an important component in creating high quality places, homes and neighbourhoods. Key to achieving this is the understanding of context, local distinctiveness, identity and character of an existing place - as well as the constraints and opportunities offered. The value of good design and the positive links with crime, health and well being, reducing environmental impacts, community cohesion and economic drivers for growth is now well recognised.

•

Continuity and enclosure - a place where public and private spaces are clearly distinguished;

•

Investors;

•

The construction industry;

•

Quality public realm - a place with attractive and successful outdoor areas;

•

Architects, planners and other design professionals;

•

Ease of movement - a place that is easy to get to and move through;

•

Environmental bodies;

•

Legibility - a place that has a clear image and is easy to understand;

•

In a challenging economic environment, it is important that the barriers to good design are understood, and a holistic approach applied to achieving good design in order to continue to influence and deliver genuinely sustainable and mixed communities - without diluting quality.

Commission for Architecture & the Built Environment and the Kent Architecture Centre;

•

Adaptability - a place that can change easily;

•

Universities and amenity groups.

•

Diversity - a place with variety and choice.

The challenge of good design – a partnership approach

This has been recognised by the new government which has recently made housing design a priority and called upon UK architects to ensure they create good design and deliver more benefits to the local community.

14

Restored Crypt, Darnley Mausoleum 2010

– to encourage and work together towards delivering good design and high quality, sustainable communities for Kent’s residents.

El Ray, Dungeness

El Ray is a new two bedroom house on Dungeness Beach incorporating a 19th century railway carriage that formed the original house and now accommodates the kitchen.

(Architect: Simon Conder Associates).

15

KENT PROPERTY MARKET 2010

Crossway, Staplehurst

16

Kent Design Guide

What has the Kent Design Initiative done so far?

The Kent Design Guide was adopted as supplementary guidance by most of Kent’s Local Planning Authorities.

It also has an extensive suite of documents and technical appendices, ranging from biodiversity to sustainable construction, to provide guidance and advice on achieving high standards of design, sustainability and place-making.

It is a key starting point when creating local planning briefs, urban design documents and related supplementary planning guidance.

•

The Kent Design team is working closely with Kent councils to ensure that new policy and/or advice aimed at promoting good design is endorsed as supplementary planning guidance and continues to be reflected in local planning policy and decision-making.

•

The initiative continues to update and revise existing technical appendices in conjunction with the production of new appendices on key themes for the Kent Design Guide to comply with new legislation and guidance from central government.

•

Through the promotions and marketing strategy it is raising awareness and widening its design network.

•

The highly successful 2010 Kent Design awards ceremony, presented this year by Lady Bruce-Lockhart, continues to celebrate best practice and exemplar projects in Kent.

•

Evening seminars, three each year organised by the Kent Design Initiative Forum.

•

Developing a knowledge base and integrated training programme to ensure that skills within Kent keep pace with changing legislation and advice on design standards.

Themes include: inclusive design and place-making, parking standards, adapting to climate change, application of the Code for Sustainable Homes (CfSH), residential space standards, designing out crime (secured by Design), the Building for Life standards (BfL) and Lifetime Homes.

For further information, please contact: Katherine Putnam, Kent Design Manager, Regeneration & Economy Division, Kent County Council Tel: 01622 696958. www.kent.gov.uk/community_and_living/regeneration_ and_economy/kent_design_initiative.aspx

Phoenix School, Kennington, Ashford

Legal Update The rise of localism The planning system has been the subject of attention by incoming governments for many years. The coalition government is no different.

The Secretary of State abolished Regional Spatial Strategies in July 2010. This removed the regional level of planning in an instant - which has caused particular concern in the residential sector. The top down regional housing supply requirements have been abolished meaning local planning authorities are now free to set their own housing supply requirements. This has placed far greater control at the local level but with it comes increased responsibility to determine the amount of development to be built. The government has

stated that housing numbers should not be imposed on communities from on high. This is at the heart of the government’s localism agenda.

Other changes to the planning system have included the removal of back gardens from the definition of brownfield land and removal of the density objective of 30 dwellings per hectare.

The decentralisation and localism bill, timetabled for late autumn 2010, will provide further changes to the planning system.

Localism is likely to prove popular with the electorate at least initially. Fears however remain that, despite financial

incentives to encourage local authorities to grant planning permissions for development, localism may reduce the amount of development approved. Also, without regional planning, how is necessary regional infrastructure to be planned for? Will the new Local Enterprise Partnerships be able to deliver the regional overview?

What is clear is that the new localism agenda is here to stay.

As ever, the versatile property industry will no doubt adapt to the new planning system and create new ways of working.

Only those that embrace the system are likely to succeed.

Developers will need to build far closer relationships with both local residents and councillors. The art of persuading communities of the benefits of development will be crucial.

17

KENT PROPERTY MARKET 2010

Rural Performance The strength of rural property as an asset class has been demonstrated by its performance over the last three years compared with commercial and residential properties, equities and gilts. Rural property performs well during recessions as it has different drivers to other property assets.

Demand remains strong from farmers wishing to increase the size of their holdings and non-farming purchasers looking for long term tax efficient investment opportunities. Within the county it is not uncommon to have up to ten bidders for any one farm.

In the twelve months to December 2009, the IPD Rural Property Investment Index, showed a considerable lift in performance with total returns up from the ten year low of 1.7% per annum (albeit ahead of other asset clauses) reported last year, to 8.2% in 2009.

Whilst bare land values have risen by 7.5%, the value of equipped farms (holdings with houses and buildings), has only seen a modest 2% increase which continues to demonstrate the fragility of the residential and commercial property markets which often account for a large proportion of the value in equipped farms.

Strong capital growth and steady income returns saw the south east as a whole return 14% per annum in 2009, up from the low of 2.7% per annum reported last year.

Once again the Rural Property Investment Index continued to outperform the IPD Commercial Property Index, although it did not reach the IPD Residential Index. Over the 3, 5 and 10 year periods, rural property investment has consistently outperformed these indexes as well as UK equities and gilts.

Farmland values The farmland market in Kent and the south east reached a milestone high as average bare land prices for large scale holdings exceeded *1£5,000 per acre during the second quarter of 2010. Research shows that prices rose by 6% between April and June 2010 and are on average up by 7.5% since the same period in 2009.

The reason for the increase is simply supply and demand.

During the second quarter of 2010 there were a total of 3,035ha (7,500acre) for sale compared with 3,642ha (9,000acre) in 2009 – a 17% fall.

18

*1 £12,355 per ha (£5,000 per acre) *2 £61,776 – £74,132 per ha (£25,000 – £30,000 per acre) *3 £18,533 per ha (£7,500 per acre)

Activity in Kent There remains a good level of demand for small parcels of grazing land, especially land which borders existing housing and provides amenity benefits and protection from future development. A number of lots has sold by private treaty this year within mid Kent and east Kent, and values achieved have consistently fallen within a range of *2£25,000 - £30,000 per acre for small parcels of up to 2ha (5acre). In the west of the county values often exceed these levels, clearly demonstrating the measures that private house owners will go to in order to secure their privacy and protect against possible development, as well as adding value to their own properties.

Sales during the year have not been limited to paddocks and amenity land and there are a number of existing farmers who have had an opportunity to increase their holdings. The sale of 20 acres of grade 1 agricultural land outside Canterbury in spring 2010 achieved in excess of *3£7,500 per acre and was purchased by a large scale fruit farmer, whilst the sale of Grove Mill Farm by the Leeds Castle Estate attracted much interest in the early part of 2010. In addition to the Georgian farmhouse and outbuildings in need of renovation, Grove Mill Farm, which was guided at £1.1million, included some 61ha (152acre) of pasture and woodland surrounding the village of Hollingbourne.

Lakeview Stables, St Clere Estate, Kemsing

Rural property compared to other asset classes Rural property

Commercial property

Residential property

Shares

35 30 25 20

%

This improvement was driven by capital growth which pulled back from a negative figure in 2008 to 6.3% per annum in 2009.

3 years

15

5 years

10 years

10 5 0 2009 -5 -10

Source: IPD Rural Property Investment Index

Whilst there have been a reasonable number of vacant possession land sales, there have been very few investment sales which illustrates the continued appreciation of rural property as a sound investment i.e. they continue to be held. In the east of the county the Coldred Estate was sold towards the end of 2009. There was keen interest in securing the 154ha (380acre) held under two Agricultural Holdings Act tenancies which produced in excess of ÂŁ23,000 per annum.

Diversification and renewable energy

Rural Kent

Hothfield, Ashford

For many farms diversification remains the key to success, especially in the case of small-scale holdings. The conversion of redundant farm buildings to residential accommodation, holiday lets or commercial use has continued and in some cases landowners have benefited from reduced costs as a result of the fall in demand for construction services. Whilst funding remains a difficulty for many commercial investors, lenders continue to take a positive view in the case of farmers and landowners due to the ‘low risk’ (high asset value) nature of the farming business. Demand for rural office space, such as Lakeview Stables on the St Clere Estate, Kemsing remains reasonably strong, although incentives are required to secure good quality tenants.

Interest in renewable energy, such as wind, solar and biomass, has increased significantly and it is anticipated that this is a major area for future growth across rural property.

The EU commitment to renewable energy reaching 15% of total energy production by 2020 and the Climate Change Act requiring a 34% reduction in greenhouse gas emissions by the same date (and 80% by 2050) has led to considerable interest in renewable energy schemes. The set rates for feed-in tariffs over 20 to 25 year periods makes this form of diversification a sound investment.

The Old Grain Store, Sevenoaks

Squerryes Estate, Westerham

19

KENT PROPERTY MARKET 2010

Leisure and Tourism Performance Tourism is one of Kent’s major industries worth £2.5billion to the local economy. The industry supports 50,669 jobs equating to just under 7% of employment in the county.

Visit Kent’s Business Barometer demonstrates how resilient the tourism industry has been during these difficult economic times with attractions showing a 7% increase in visitors. The combination of more British people holidaying at home and the strength of the Euro encouraging more overseas visitors, has meant that 2009 was a good year and figures for 2010 are looking very positive.

Attractions and venues In July 2010, the £14million transformation of the Smitheries, at the Historic Dockyard in Chatham, opened into a national museum and international touring exhibition venue. It is a joint venture between Chatham Historic Dockyard Trust, the National Maritime Museum and the Imperial War Museum and will exhibit national maritime treasures.

At Dover Castle, English Heritage, a key partner in the Department of Culture, Media and Sports £7.75million Seachange Programme, completed the refurbishment and interpretation of the Great Tower in 2009 and in 2010 started work on the Secret Wartime Tunnels.

In Canterbury, the new Marlowe Theatre, designed by Keith Williams Architects, is due to open in September 2011.

St Gregory's Music Centre at Canterbury Christ Church University is underway creating a purpose-built music centre by 2012. Work has also begun to transform the 19th century Beaney Institute museum and library service.

Maidstone regeneration projects include a £2million Lottery grant to develop the east wing of the town’s museum which will enable new displays to be housed.

In Gravesham, a £10million restoration of the historic Repton designed landscape of Cobham Park is complete and became part of National Trust properties in May 2010.

Also in Kent Thameside, a £60million events and exhibitions venue is under construction at Bluewater.

Transport Since May 2010, Flybe, one of Europe’s biggest regional airlines, has been operating a daily passenger flight to Edinburgh from Kent International Airport, Manston, and also offers flights to Manchester six days a week since September 2010.

Ferry Operator P&O has ordered two new ships for its Dover to Calais route. The Spirit of Britain and the Spirit of France will be the largest ships ever to operate on the route and will both enter service in 2011.

LD Lines and Transeuropa Ferries launched a collaborative route from Ramsgate to Ostend in March 2010.

Southeastern Railways’ high speed domestic rail service to Kent launched in December 2009. There has been significant investment in stations including £2.4million refurbishment of Ashford International station and improvements at Dover Priory station.

Accommodation Kent has seen a wide range of accommodation developed in the county over the past year despite challenging times for hotel developers. Locate in Kent in partnership with Visit Kent and Tourism South East completed a new prospectus of hotel sites in the county - see www.locateinkent.com/hotel_sites for further details and below for details of actual hotel development. The same partners have commissioned a hotel study to provide further information for developers.

Selected investment in leisure and tourism schemes 2009/10:

20

Location

Owner/developer

Description investment

Estimated cost

Timing

Ashford

Kingswood Educational Activity Centre

Residential activity centre

Includes £1m high-adrenaline activity park

2010

Margate

Premier Inn

Additional 32 bedrooms

-

2010

Gillingham

Geminex Hotel and Leisure Management

120-bedroom hotel

£7m

2011

Sandwich

Princes Golf Course

Dormitory accommodation for Open Golf

-

2011

Margate

Margate Town Centre Regeneration Company / Dreamland Trust

Dreamland Heritage Amusement Park

£12.3m

2012

Residential Performance There have been no dramatic changes in residential market performance since the last review in 2009. The market is still largely controlled by restrictions on lending, affecting both house buyers and developers alike. Capital values have generally stabilised, with the number of mortgage approvals being fairly consistent. The quashing of HIPs has increased the number of vendors testing the market, although the market generally remains relatively fragile, caused in part by public sector spending cuts and uncertainty about unemployment levels.

First time buyers are still not prominent in the market due to the deposit sums required, although stamp duty relief on properties up to £250,000 has helped. New build dwellings are often acquired with the assistance of developer led schemes.

Some buy-to-let investors have returned to the residential market, particularly where capital values are relatively low and therefore smaller deposits are required. Gross yields generally fell between 4-6%. Rental values have held up across the county, but capital values are still wide ranging.

High speed domestic rail services through Kent to London St Pancras has aided the general desirability of the area, but with little effect on house values, as yet. The sales rates around Ebbsfleet for new build properties is generally slower than originally anticipated, at least for the time being.

Developers are still very much in the hands of their bankers but are generally more financially stable. The events of 2008

mean there is an emphasis towards buying low risk sites where a sufficient margin remains for profit between the cost of development and potential revenue. However, some developers are still taking a longer term view on regeneration sites, demonstrated by the sale of Sittingbourne Mill to Essential Land. National developers are comfortable with schemes of 20 – 50 houses and smaller developers, 5 – 15 dwellings, but apartment schemes in Kent are out of favour. Development funding is generally 50 – 60% of development costs which means that most developers require substantial cash equity. This has led to more joint venture schemes, with landowners taking deferred payments. A number of Section 106 Agreements and affordable housing quotas are being contested by developers, due to reduced viability.

The Homes and Communities Agency has helped bring forward a number of sites; however, in the latest round of public sector cuts, a number of regeneration schemes failed to attract Kick-Start funding.

Even housing associations (RSLs) are suffering through lack of finance and are far choosier about taking on consented affordable housing schemes as part of larger developments, particularly where the affordable element is mainly apartments. Without an anchor RSL, developers are unlikely to commence schemes.

Developers and house buyers alike are cautious about the immediate future and house value inflation is unlikely to appear for many months, if not years.

Kentish Gardens, Tunbridge Wells

Average price range by location Location

Average Price Range £/psf 2009

Sevenoaks

£300 - £450

Tunbridge Wells

£265 - £355

Tonbridge and Malling

£250 - £340

Canterbury

£220 - £290

Dartford

£215 - £285

Whitstable

£205 - £320

Maidstone

£200 - £265

Gravesham

£185 - £275

Medway

£155 - £300

Ashford

£150 - £230

Swale

£150 - £225

Ramsgate

£150 - £220

Sheerness

£150 - £200

Dover

£150 - £190

Source: Cluttons LLP

21

KENT PROPERTY MARKET 2010

Inward Investment Locate in Kent, Kent and Medway’s investment promotion agency, maintains a client database that holds details of the property requirements of companies looking to relocate to or expand in Kent. It also maintains a web-based commercial property database that provides a good indication of Kent and Medway’s commercial property supply.

Property demand

With a total of 110 office projects to June 2010, total potential demand for office space reached 81,011m2 (872,004ft2) (up by 43% on 2009). Companies made 173 area enquiries for property, with the highest demand (40%) in Thames Gateway Kent, with Channel Corridor 25%, West Kent 23% and East Kent 12%.

The total number of industrial projects seeking property in Kent and Medway was 125 (compared to 92 in 2009), which made 254 area enquiries (compared to 184 in 2009). 32% of enquiries for industrial properties were in Thames Gateway

Property demand by size range, June 2010

Office

Industrial

Property demand by sector, June 2010

Industrial

Office

Industrial

(13)

(15)

Transport & Logistics

(12)

Tourism & Leisure

Manufacturing

(8)

Retail & Wholesale

(25)

Public Services

(5)

Life Sciences

Land Based & Utilities

(2)

(1)

ICT

(8)

0

(14)

(5)

Printing & Publishing

(26)

(5)

Food & Agriculture

Minimum property size requirement m2 (ft2)

(0)

(10)

(22)

Financial Services

(1)

20

Environmental

(5)

(4)

(45) (25)

40

Engineering

0

(4)

60

Construction & Property

(4)

5

80

Creative Industries

Figures in brackets = no. of active projects at June 2010 (NB. Some projects are considering property in more than one area of Kent.)

(8)

Figures in brackets = no. of office and industrial active projects at June 2010

Business Services

22

15

100

Automotive

Channel Corridor

West Kent

Thames Gateway

0

(16)

(14)

Total (min) requirement (000’s) m2

(43)

(19)

9,290+ (100,000+)

(39)

(21)

4,645-9,289 (50,001-100,000)

(70) (21)

25

1,859-4,644 (20,001-50,000)

100

35

930-1,858 (10,001-20,000)

(58)

150

Figures in brackets = no. of active projects at June 2010

(43) (42)

465-929 (5,001-10,000)

200

45

94-464 (1,001-5,000)

(82)

(54)

0-93 (0-1,000)

250

(66)

% of total office/industrial demand

55

50

Demand for industrial property increased to 437,983m2 (4.7mft2) in 2010 to compared to 286,729m2 (3.1mft2) in 2009, an increase of 53%. In both 2009 and 2010, the most popular industrial property size was 93-464m2 (1,001-5,000ft2), which accounted for 26% and 34% of totals respectively in each year.

(48)

300

East Kent

Maximum total property requirements (000s) m2

Office

Kent and 26% in Channel Corridor, with 23% in West Kent and 19% in East Kent.

During the first quarter of 2010-2011, a further 12,180m2 (131,104ft2) was occupied by 13 companies (eight office and five industrial) with industrial property space occupied marginally dominating at 56%.

Between April 2009 and March 2010, 294 new projects were logged by Locate in Kent, of which 188 had property or land requirements (compared with 165 in 2008-9, an increase of 14%). 94 were for industrial property, 89 for office accommodation and four for land. At the end of June 2010, there were 303 active projects. Of these, 259 had a potential requirement for property or land (compared to 186 in June 2009) of up to a total of 322,256m2 (3.5mft2) (compared to 255,118m2 (2.7mft2) in 2009).

Total office and industrial property demand by sub-region, June 2010

By the end of the financial year, a total of 82 companies had been assisted successfully to invest in Kent, of which 73 required new or additional property. The total area of property occupied was 149,828m2 (1.6mft2) (compared to 138,765m2 (1.5mft2) in 2009), which was an average take-up of 1,850m2 (19,913ft2), representing a decrease in the average property uptake per project since 2009.

Property supply

At the end of June 2010, 90% of the office properties available were at the smaller end of the range - less than 464m2 (5,000ft2), which is similar to June 2009.

At the end of June 2010, a total of 1,513 properties were registered on Locate in Kent’s property database, compared to 1,341 at the end of June 2009. 49% of these were industrial properties, compared with 48% in 2009.

The greatest number of properties overall were available in Channel Corridor (32%), followed by Thames Gateway Kent and West Kent (28% and 24% respectively).

Property supply by size bracket, June 2010 Office - 774 properties

Total Office - 774 Properties

(255) (233)

(238)

250

(214) (189)

200

(144)

150

(116)(123) 100

50

0

Industrial - 739 properties

60

Total Industrial - 739 Properties

(384)

% of office/industrial properties

50

Figures in brackets = number of properties logged on Locate in Kent’s property database at June 2010

(367) (334)

40 30 20

(127)

(124)

10

(53)

(49)

(37)

(14)

(7)

Figures in brackets = number of properties logged on Locate in Kent’s property database at June 2010

465-929 (5,001-10,000)

94-464 (1,001-5,000)

Channel Corridor

West Kent

Thames Gateway

East Kent

0 0-93 (0-1,000)

Number of properties available

300

(3)

(14)

4,645+ (50,001+)

Property supply by area, June 2010

Channel Corridor offered 33% of all office property and 32% of industrial properties available in Kent. Thames Gateway Kent had 32% of industrial and 24% of office properties. West Kent had 28% of office properties and 20% of industrial properties. East Kent had 17% of industrial properties and 15% of office properties available.

1,859-4,644 (20,001-50,000)

Locate in Kent deals with a variety of companies from different industry sectors. At the end of June 2009, industrial demand was dominated by manufacturing, which represented 21% of the demand (24,786m2 (266,794ft²)), followed by engineering (16,722m2 (179,994ft²)), transport and logistics (23,133m2 (249,001ft²)) and construction and property (17,420m2 (187,507ft²)). At the end of June 2010, the situation differed, with retail and wholesale representing 18% of the industrial demand (35,870m2 (386,101ft²)), followed by construction and property (28,660m² (308,493ft²)), food and agriculture (24,125m² (259,679ft²)) and engineering (16,490m2 (177,496ft²)).

Among office projects, significant sectors included financial services, life sciences, retail and wholesale and tourism and leisure. The average size of financial services property demand was highest (average of 831m² (8,944ft²)), followed by 559m² (6,017ft²) for the construction and property sector.

930-1,858 (10,001-20,000)

As in 2009, smaller office properties continued to be the most sought after - 88% of office demand was for properties of under 464m2 (5,000ft2). The average minimum size requirement was 431m2 (4,639ft2) in 2010 compared to 396m2 (4,263ft2) in 2009.

For industrial properties, the most commonly available sizes were also at the lower end of the size scale, with properties under 464m2 (5,000ft2) accounting for 69% of all available industrial properties.

Major developments Significant office developments in 2009-10 included Education Travel Group, which took over the 17,186m² (185,000ft²) former Kent Police Training School in Ashford and converted it into their latest education centre, creating 115 new jobs. Freedom Group (EDF) expanded into 1,393m² (15,000ft²) in Sevenoaks, creating 130 jobs, while MCCH relocated to Maidstone occupying 1,138m² (12,250ft²), creating 100 jobs, and Balfour Beatty Utility Solutions, relocated to Crossways in Dartford, occupying 1,133m² (12,200ft²).

Major industrial developments during 2009-10 included the Ideal Waste Paper Company which relocated to the 6,272m² (67,000ft²) Teardrop Centre in Swanley creating 100 new jobs, AEI Compounds, which moved to Sandwich Industrial Estate, taking 8,361m² (90,000ft²), Blaze Maintenance Ltd, which expanded into 5,574m² (60,000ft²) in Thanet, Prometheus Trade Print Ltd, which relocated in Tonbridge taking 2,387m² (25,695ft²), creating 37 jobs, and Atix Ltd, which took 1,858m² (20,000ft²) in Sittingbourne.

Size of property m2 (ft2)

23

KENT PROPERTY MARKET 2010

Regeneration Thames Gateway Kent The Thames Gateway is Europe’s largest regeneration project covering 40 miles of the Thames Estuary from London Docklands to Southend in Essex and Sheerness in Kent.

Kent Thameside Kent Thameside, one of the fastest growing areas in the UK, encompasses Dartford, Gravesham and Ebbsfleet Valley.

With a commitment to provide 25,000 new homes and 50,000 new jobs over the next 20 years, Kent Thameside has a wide range of new homes and outstanding commuter links to London and beyond provided by Fastrack, High Speed rail and Eurostar.

Housing developments throughout Kent Thameside continue to blend with, and add to, existing communities. The most recent phase of Crest Nicholson’s Ingress Park, comprising 417 new homes, was approved in June 2010. Other new housing developments include Countryside Properties and Land Securities' joint ventures at Springhead Park close to Ebbsfleet International Station, and Waterstone Park in Greenhithe – which was awarded CABE’s Building for Life Silver Standard. The last phase at Waterstone Park has just been launched.

Progress by ProLogis continues at The Bridge, Dartford.

The £10million learning and community campus (see front cover) was officially opened in March 2010 and the primary school welcomed its first pupils for the start of the 2009 autumn term. SusCon, who provide comprehensive, modern green building training and education is currently constructing a new academy on the site.

24

The £75million regeneration scheme to replace 208 lifeexpired houses with 426 new homes at Gravesend’s Christian Fields continues, led by Countryside Properties and Moat with phase two on-site in early 2010.

Work on the new £60million Bluewater Events Venue began in spring 2010. The 5,200m² (56,000ft²) events and exhibition venue will be centred around a plaza accessible from the Thames Walk through the existing Water Circus. It will include 4,000m² (43,000ft²) of catering/restaurant space, and a number of new stores, and aims to open late 2011.

Cyclopark, an activity centre with first class cycling, running and extreme sports facilities is being developed in Gravesend as one of the leading multi-sport centres in the south of England. Land assembly is nearly complete with funding secured for a workable scheme.

Bluewater Events Venue, Greenhithe

Medway Medway’s 20 year regeneration programme has experienced both challenge and success over the past year, but is still on track to deliver 25,000 new jobs, 16,000 new homes and a city of 280,000 people by 2026.

In February 2010, Medway Park, created on the site of the former Black Lion Leisure Centre in Gillingham, was completed ahead of schedule. It then hosted the Modern Pentathlon World Cup, the first global sporting event to be hosted in Medway. It has also been approved as a 2012 training camp for 13 Olympic and eight Paralympic events.

Kent Science Park, Sittingbourne

In March 2010, Cllr Rodney Chambers, leader of Medway Council, announced the bid for city status in 2012 at the Making of Medway Conference.

In 2010 Medway’s start-up facilities for high-tech businesses were greatly enhanced, when tenants moved into the 2,787m² (30,000ft²) Innovation Centre Medway, which opened in early 2009. Another innovation centre opened at the Historic Dockyard.

In central Chatham, the Sir John Hawkins flyover was demolished in June 2009 and has been replaced with Innovation Centre Medway, Chatham Courtesy of Alice Brockway, Medway Council

The Quays, Chatham Maritime

The Smitheries, Chatham Maritime

Planned marina at Queenborough & Rushenden, Sheppey

Waterfront Way – a smart new ground-level route for buses, taxis and cyclists. The final stage of the Waterfront Way scheme – the reinstatement of the High Street – is due to complete in late 2010. A new £5million bus station is under construction as well as a £3million investment in a new Gillingham railway station.

The area is being prioritised by both Medway Council and Kent County Council as a key element of the Medway Superhub proposal to the offshore wind manufacturing industry.

A public sector led project is reclaiming land running along Milton Creek as a green space with play areas, landscaping and walking and cycling routes to the Swale estuary.

Significant infrastructure projects are set to have a positive impact on the property market in Swale. Two major road projects have started and will complete in 2011. The Sittingbourne Northern Relief Road will relieve congestion in central Sittingbourne, open up development sites north of the town and improve access to Eurolink Business Park.

The Rushenden Link Road will provide access to Queenborough/Rushenden, and its employment sites, from the A249.

Kent Science Park, to the south of Sittingbourne, provides workspace for a range of SMEs, with a focus on science and bio-technology. Planning permission is in place for a 4ha (9ac) expansion and a new sustainable, grass roofed entrance building.

Courtesy of Ed Walsh, KDS Associates

Rochester Riverside has planning permission for 2,000 new homes. Work has been delayed due to the economic situation but in November 2009, Crest Nicholson signed an agreement to build the first phase of new homes in partnership with The Hyde Group and a planning application has now been submitted.

Another key site in Medway is Temple Waterfront owned by Lafarge Cement, Medway Council and Morgan and Company.

Outline permission was granted in 2009 for up to 620 homes and up to 12,300m² (132,348ft²) of mixed-use employment and retail floor space, creating up to 250 jobs. The scheme would result in £100 million of private sector investment.

Swale Swale has been a major focus for public sector led regeneration, with principal activity focused around Sittingbourne and at Queenborough/Rushenden on the Isle of Sheppey.

The master plan for Queenborough/Rushenden envisages 2,000 new houses, social, leisure and community facilities, a school, a new marina and 180,000m² (1.9mft²) of additional employment space. The two commercial development plots are available and are generating interest.

In Sittingbourne, the town centre master plan has been completed. This includes extended retail provision, improved leisure facilities and up to 3,000 new housing units north of the railway line. Central to this plan is a new railway bridge to link communities to the north of Sittingbourne with the centre of town.

Remediation work has taken place on a seven acre site around Faversham’s former iron foundry. It is being developed into a mixed use site with 6,503m² (70,000ft²) of commercial space and 70 homes. It is being developed by Quinn Estates in a joint venture Redrow.

The Port of Sheerness is one of the UK’s major importers of cars, timber and fruit. Current owners, Peel Ports, are developing long term plans to reclaim land for an ambitious major regeneration scheme with new housing, marina, leisure and employment sites.

25

KENT PROPERTY MARKET 2010 Planned changes to Ashford International station forecourt

Ashford

Maidstone and West Kent

Ashford’s location and connectivity are key drivers behind its ambitious £2.5billion Growth Area development strategy.

This includes the creation of 28,000 new jobs, the building of 31,000 new homes and the development of 185,800m² (2mft²) of commercial space to enhance its already competitive provision.

Maidstone

The new High Speed domestic rail service has been operating since summer 2009, and about 50% of all journeys made to London from Ashford are made using the service.

The service provides significantly reduced journey times with central London just 37 minutes away and Eurostar also provide services to Paris, Brussels and Lille.

Kent County Council and Maidstone Borough Council are working together to bring forward land on Upper Stone Street, including the Wrens Cross site, as a catalyst for change. This will include high quality mixed use development within the wider regeneration of the High Street Ward area, south of Maidstone town centre.

Work has started on two new major infrastructure projects – improvements to M20 Junction 9 and Drovers roundabout and the new Victoria Way – both completing in 2011. The first stages of the SMARTLINK bus system will commence on site in late 2011. The £200million housing regeneration programme and the roll-out of fibre-optic broadband are also progressing.

A public realm improvement project for Maidstone High Street is being progressed; a detailed design is underway with a start on site in 2010 and completion in 2011.

Building on the success of the County Square extension and the shared space projects, town centre redevelopment is planned. Stanhope has been secured as the key partner for Elwick Place, a significant town centre site that will provide retail, leisure and commercial opportunities. A new commercial quarter adjacent to the railway station will be capable of providing 55,000m² (592,000ft²) of high quality commercial space. The first part of this project will start during 2010 with the creation of a redesigned square fronting the station as a much improved welcome to the town.

26

Maidstone Borough Council has obtained Growth Point status for the town enhancing the role of the borough in housing provision. Examination of a major urban extension on the eastern side of the town continues as part of preparation of the Local Development Framework.

West Kent Tunbridge Wells and nearby Tonbridge are important service centres and transport hubs in west Kent. Tunbridge Wells Borough Council has entered into a development partnership with John Laing/Gladedale and an agreement to masterplan and regenerate a number of key town centre sites in Tunbridge Wells, Southborough, Paddock Wood and Cranbrook.The former cinema site in the town centre (Mount Pleasant) has planning permission for a mixed use redevelopment for a hotel, offices, shops, financial and professional services and restaurants.

Landmark M20 footbridge, Ashford

Maidstone Museum’s proposed new East Wing

Canterbury Office Campus, Canterbury

Augustine House, Rhodaus Town, Canterbury

East Kent Canterbury Canterbury Christ Church University has opened its new £30million Augustine House, Rhodaus Town in Canterbury, a modern and attractive facility replacing the Clarkson House office building. With floorspace of 12,000m² (129,187ft²), it provides a state-of-the-art library, student services and learning resource centre.

Canterbury Innovation Centre

In November 2009, the £7.3million Canterbury Innovation Centre opened on the University of Kent campus. It has 2,500m² (26,909ft²) of modern, affordable office, studio and workshop space and supports new innovative, scientific and technology firms as well as helping to retain graduates in the area.

Kent County Cricket Club has made significant progress in the £8.2million redevelopment of its St Lawrence Ground, where plans include a 130 bed hotel, conference facilities, health and fitness centre, retail units and refurbished stands, hospitality boxes and floodlights. Bellway Plc is the housing partner for the project and the scheme benefited from a £4million loan from Canterbury City Council.

Work continues on the £25.5million New Marlowe Theatre and Beaney Institute museum and library.

The theatre will have a new main auditorium with 1,200 seats and a second performance space offering opportunities for community use. The Beaney Institute will provide improved facilities bringing together the museum, art gallery and library.

Herne Bay In central Herne Bay, the regeneration plans for the town are gathering pace. In the last year Coplan Estates Limited and Denne Construction Limited were selected by Canterbury City Council as preferred development partners for the £50million mixed use redevelopment of a key council owned site within the heart of Herne Bay. Current proposals seek to deliver a comprehensive and high quality redevelopment to include additional community, residential, retail, health and office uses. Herne Bay Central Development is part of a wider set of ideas being pursued in the Herne Bay Area Action Plan, which has recently been fully supported by an independent planning inspector in his inquiry report. A 'central development area' has been identified to bring a quality shopping offer and improved facilities to the town. The aim is to submit a planning application for the Herne Bay Central Development by the end of 2010.

In September 2010, it was announced that the Herne Bay Pier sports pavilion has been officially condemned by the council’s executive. The building will be removed and the pier platform will be resurfaced until further development is agreed.

27

KENT PROPERTY MARKET 2010

Thanet

Deal Pier

Margate's regeneration programme continues with the completion of the David Chipperfield designed Turner Contemporary building by the end of 2010 and the opening of the gallery in early 2011. Funding is in place for the first phase of the leisure development on the Dreamland site.

This will involve the refurbishment of the Grade 2* listed cinema and creation of a heritage amusement park scheduled to open by early 2012. A planning application is also expected for the adjacent Arlington site later in 2010 in line with the planning brief for the site.

Mixed use development plans at Dover’s Wellington Docks, overseen by Dover Harbour Board and Dover District Council, are linked to the Harbour Board’s proposals for expansion at Western Docks with a Harbour Revision Order submitted to government. Dover Waterfront proposal has opportunities for regional level mixed use retail, restaurants, housing and a cable car connecting to the castle. Wellington Docks proposals show a completed Sea Sports Centre, part funded by the government’s Sea Change Programme as well as a range of Esplanade projects.

Agents have been engaged for the formal marketing of the Manston Business Park site. Cummins Power Generation, Cohline (UK) Ltd and Invicta Produce already operate from the park. The site, adjacent to Manston Airport, is being brought forward by East Kent Opportunities (EKO) LLP, the joint venture vehicle established by Kent County Council and Thanet District Council along with the Eurokent site located between the Westwood Cross shopping centre and the Marlowe Academy.

The St James Street development in the heart of Dover offers exciting development opportunities and the council is currently exploring options to take forward this site. The planning application for the former Buckland Mill site by Gillcrest Homes has been approved, with works starting in 2011.

Folkestone

Dover Esplanade

The Creative Foundation continues to expand its involvement in Tontine Street and the Old Town area. In order to support regeneration further, there are plans to attract greater numbers of visitors to spend more time exploring the arts and cultural opportunities on offer.

The Creative Foundation has engaged the architect Sir Terry Farrell in the masterplanning of the harbour and seafront area.

The proposals are for a mix of high quality uses, including leisure and retail with a residential component of up to 1,000 dwellings. Public consultation for this development is underway although the proposals are still at an early stage.

Dover Following adoption of its Local Development Framework (LDF), Dover District Council, and Dover Pride Regeneration Partnership are bringing forward the development of the strategic allocations at Dover Waterfront, Mid Town, Whitfield and Connaught Barracks.

28 Sea Sports Centre, Dover

Dover’s new rail connection to London St. Pancras is just 67 minutes. An integrated transport and bus rapid transit system is in development, to take passengers from the refurbished station to all new developments as they come on line.

Phillip Jeans, a major landowner at Whitfield, appointed Barton Willmore to prepare a Supplementary Planning Document (SPD) for the area (approx. 6,750 homes).

Public consultation began on 4 October 2010 for 8 weeks.

Phase 1 and 1A applications are to be submitted and determined once the SPD has been adopted.

The Homes and Communities Agency has instructed Arup to prepare an SPD for Connaught Barracks submitting in late 2010. The site includes Fort Burgoyne, a listed historic monument, but has potential for 500 homes.

Priory Land is investigating its first major redevelopment at Western Heights above Dover with 10ha (25ac) and views across the Channel and a further site of 11ha (275ac), Great Farthingloe Farm, in an area of outstanding natural beauty.

It is understood their interest has been stimulated by High Speed rail services to London.

Ingress Park, Greenhithe

Green Infrastructure Offshore wind power in Kent

Parklands programme

Thanet and Whitstable

A high quality environment is important to investors, residents and those considering relocating to Kent, with strong evidence to suggest that green infrastructure underpins the success of economic sectors and is not just a way of supporting wildlife and the environment. The approach to green infrastructure in Kent has attracted investment from the government through the Parklands Programme.

The Thanet Offshore Wind Farm has 100 turbines located 12km off Foreness Point on the north east Kent coast. It will supply enough electricity each year (300MW) for around 240,000 homes - there are around 700,000 homes in Kent.

The landfall for the power cabling is at Richborough with an upgraded substation of the National Grid. Offshore construction started in March 2009 and was officially opened on 23 September 2010.

Swedish utility company Vattenfall also owns the Kentish Flats windfarm at Whitstable. The Port of Ramsgate, used as a base during construction, has benefitted from dredging works to improve the draft clearance for specialist vessels.

The port is also the new operations and maintenance centre for the wind farm creating new long term employment opportunities.

London Array Once complete, London Array will be the largest wind farm site in the world, involving a development of 275 turbines 20km off the north Kent coast. Phase 1, comprising 175 turbines with a capacity of 630MW, will generate electricity to meet the annual needs of 485,000 homes. It will be completed in 2012. Onshore construction activity is progressing with a new substation at Cleve Hill, Graveney – the landfall for the power generated. Offshore works have now started with actual construction commencing in the spring of 2011.

Cyclopark X1, Gravesend

The Thames Gateway Parklands Programme is a strategic initiative championed by Communities and Local Government (CLG) to create more attractive places in which people want to live, work and visit that can in turn support developer confidence.

There are five Parklands projects in Kent and Medway – Milton Creek near Sittingbourne, Great Lines in Gillingham, Great Expectations in Gravesham, Cyclopark in Gravesend, and Dartford Greenheart. They are supported with £10.5million funding from Homes & Communities Agency and the CLG matched with partner funding.

World’s largest wind farm, Thanet (Credit Vattenfall)

Like Thanet Offshore, the London Array project will be using the Port of Ramsgate for construction management and a future operations and maintenance centre. The latter will involve a new £3million building and is likely to generate up to 90 long term jobs.

29

KENT PROPERTY MARKET 2010

ESSEX

St. Pancras International Station

0

International Deep Sea Routes Zeebrugge Dunkirk Vlissingen

Thames Europort

18 16 19 A226

5 M2

A228

4 A20

5

20

2a 16 A20

21

7

MAIDSTONE

6

KENT

6

5 SEVENOAKS

34

M2 M20

37

8

24 22 RAMSGATE

A299

38

SITTINGBOURNE

Ostend

25 Ramsgate New Port

7 CANTERBURY A257

11

6

1

3

2

5 FAVERSHAM

5

Kent International Airport

0

M26

23

35 32

A2

4

3

HERNE BAY WHITSTABLE

9 A2

Biggin Hill

8 A27

M20

4

M 25

31

MEDWAY

Rochester

SHEERNESS

33

55

3

MARGATE

15

Thamesport

A2

1

27

29 7 36 30 8 9 2 28

A291

GRAVESEND

Sheerness

A26

A20

A25

2

M20

DEAL

A2

A2 8

DARTFORD 17 2 Ebbsfleet International Station

Zeebrugge

26

A228

10 Miles 10 Kms

5

A25

LONDON

5

0

TONBRIDGE

9 Ashford International Station

10 ASHFORD

4 2 3

A2 8

Dover

13 11

A207

14 Motorway

25

Business Park

Dual Carriageway

Mixed Use

Main Road

5

Regeneration

High Speed 1

4

Industrial

Domestic Rail Routes

1

Green Energy Park

Ferry/Freight Routes

1

Science Park

Airport

30

Programme/completed DFT improvements to major roads DFT improvements to motorways

12

13

CH AN NE L 59 A2

A2 59

Ports

12

FOLKESTONE

Boulogne

6

11a

London Ashford Airport

EAST SUSSEX

is la Ca

Strategic Developments

Dunkirk

DOVER

10

0

8 A2

A274

TUNBRIDGE WELLS

1

TU

NN EL

Calais

FRANCE

Strategic Developments

Useage codes for strategic sites:

Map No.

Scheme

Location

Usage

Contact

1

Eureka Business Park

Ashford

B1

Knight Frank, 020 7861 1159 / Bidwells, 01223 841842 / Martine Waghorn, 01622 672233 / Quadrant Estates, 020 7968 1888

2

Orbital Park - Axiom

Ashford

B1, B2, B8, Sui Generis

Strutt & Parker, 020 7318 5054 / Altus Edwin Hill, 01322 285 588

3

Waterbrook Park

Ashford

B1, B2, B8, Sui Generis

GSE Waterbrook Ltd, 01233 501301

4

Elwick Road

Ashford

A1, B1, D2

SEEDA, 01634 899900

5

Altira Business Park

Canterbury (Herne Bay)

B1, B2, B8

Kitewood Commercial, 01732 886962 / Core Commercial, 01892 834483 / Caxtons, 01474 567666

6

Canterbury Business Park

Canterbury

B1, B2, B8

Martine Waghorn, 01622 672233

7

Chatham Maritime

Chatham

A1, B1, C1, D1, D2, R

SEEDA, 01634 899900

8

Chatham Centre and Waterfront

Chatham

A1, B1, C1, R

Medway Renaissance, 01634 337143

9

Lodge Hill, Chattenden

Chatham

A1, R

Land Securities plc, 020 7413 9000

10

White Cliffs Business Park

Dover

B1, B2, B8

Hardmans & Co, 01304 373922

11

Betteshanger Business Park

Dover

B1, D2

SEEDA, 01634 899900

12

Whitstable Road

Faversham

B1, B2, B8

George Wilson Holdings, 01227 263077

13

Hawkinge West

Folkestone

B1, B8

Smith-Woolley & Perry, 01303 226622 / Quinn Estates, 01227 831212

14

Link Enterprise Park

Hythe

B1, B2, B8

Valad & Benchmark Estates, 01622 669888 / Core Commercial, 01892 834483 / Caxtons, 01474 567666

15

Queenborough/Rushenden & Neats Court

Isle of Sheppey

B1, B8, C1, Sui Generis

SEEDA, 01634 899900

16a

Crossways Point, Crossways

Kent Thameside

B1

Watson Day, 01634 831118 / Savills, 020 7499 8644

16b

Schooner Park, Crossways

Kent Thameside

B8

CB Richard Ellis, 020 7182 2000 / Altus Edwin Hill, 01322 285588

16c

Lakeview East & West, Crossways

Kent Thameside

B1

Knight Frank, 020 7629 8171 / CB Richard Ellis, 020 7281 2000

16d

Waterside, Crossways

Kent Thameside

B1

Knight Frank, 020 7629 8171 / Altus Edwin Hill, 01322 285588 / CB Richard Ellis, 020 7281 2000

17

Ebbsfleet Valley

Kent Thameside

A1, B1, D2, R

Land Securities plc, 020 7413 9000

18

The Bridge

Kent Thameside

B8

Jones Lang LaSalle, 020 3147 1110 / CB Richard Ellis, 020 7182 2492

19

ProLogis Park, Littlebrook

Kent Thameside

B2, B8

CB Richard Ellis, 020 7182 2000 / Colliers CRE, 020 7935 4499

A1 Shops & retail

B1 Offices, light industry

B2 General industrial

B8 Warehouses, distribution

C1 Hotels

D1 Education, crèches

D2 Leisure

R Residential

Sui Generis Petrol station, car showroom

Map No.

Scheme

Location

Usage

Contact

20

Eclipse Business Park (Phases II & III)

Maidstone

B1

Knight Frank, 020 7861 1144 / Sibley Pares, 01622 673086 / Gallagher Group, 01622 716543

21

Kings Hill

Maidstone

A1, B1, C1, D2, R

Liberty Property Trust UK, 01732 223426 / Altus Edwin Hill, 01322 285588 / Knight Frank, 020 7629 8171 / Hanover Green, 020 3130 6400

22

EuroKent Business Park

Ramsgate

A1, B1, B8, D2

Rosefarm Estates plc, 01243 785151 / East Kent Opportunities, 01622 221380

23a

Manston Business Park

Ramsgate

B1, B2, B8

East Kent Opportunities, 01622 221380 / Savills, 01732 789750

23b

Manston Business Park

Ramsgate

B1, B2, B8

China Gateway International Plc, 01843 822444

24

Broadstairs Business Park

Broadstairs

B1

Paul Cant & Partners, 01753 647616

25

Former Richborough Power Station

Sandwich

-

BFL Management Ltd, 020 7835 1867

26

Isle of Grain

Rochester

B1, B2, B8

DTZ , 020 3296 3000 / Michael Parkes, 01634 294994 / National Grid Property Ltd, 01926 654720

27

Kingsnorth Commercial Park

Rochester

B1, B2, B8

CB Richard Ellis, 020 7182 2565 / Colliers International, 020 7344 6610 / Goodman, 0121 5068100 / Piers Pollard Chartered Surveyors, 01728 861989

28

Rochester Riverside

Rochester

B1, C1, R

Medway Council, 01634 338171

29

Temple Park, Strood

Strood

B1, B2, B8

GVA Grimley, 020 7895 1515 / Watson Day 01634 668000

30

G Park Strood

Strood

B1, B2, B8

Altus Edwin Hill, 01322 285588 / GVA Grimley, 020 7911 2112 / Lambert Smith Hampton, 020 7663 8287

31

Watermark Kent

Sittingbourne

B1

BNP Paribas, 020 7338 4000 / Harrisons Surveyors, 01634 265900 / Watson Day, 01634 831118

32

Eurolink Business Park (Phase 4 & 5)

Sittingbourne

B1, B2, B8

Harrisons Chartered Surveyors, 01634 265900

33

G Park Sittingbourne

Sittingbourne

B1, B8

CB Richard Ellis, 020 7182 2490 / GVA Grimley, 020 7895 1515 / Savills, 020 7499 8644

34

Kent Science Park

Sittingbourne

B1

Kent Science Park, 01795 411500 / Jones Lang LaSalle, 01795 411500 / Sinclair Clark, 020 7494 9399

35

Kemsley Park

Sittingbourne

B1, B2, B8

GVA Grimley, 0870 9008990 / Watson Day, 01634 831118 / Harrisons Surveyors, 01634 265900

36

Strood and Temple Waterfront

Strood

A1, B1, R

Medway Renaissance, 01634 337158

37

Estuary View

Whitstable

B1, C2

George Wilson Holdings, 01227 263077

38

The Foundry Business Park

Faversham

B1, B2, B8

Quinn Estates, 01227 831212

KENT PROPERTY MARKET 2010

Contact Details Written and compiled by:

Additional contributions:

Kent County Council

Cripps Harries Hall LLP

For further advice, assistance and information on development opportunities, contact:

As a leading law firm based in Kent, our simple and effective strategy is to concentrate our resources in a single centre of excellence.

Nigel Smith, Head of Development Investment Kent County Council, Invicta House, Maidstone, Kent ME14 1XX Tel: 01622 221866 Fax: 01622 691418 Email: reinfo@kent.gov.uk www.kent.gov.uk

Michael Stevens, Senior Partner Wallside House, 12 Mount Ephraim Road, Tunbridge Wells, Kent TN1 1EG Tel: 01892 515121 Fax: 01892 544878 Email: reception@crippslaw.com www.crippslaw.com

Cluttons Founded in 1765, Cluttons LLP is a leading firm of chartered surveyors providing an extensive range of property related services with a presence in the UK, Europe, Middle East, Asia Pacific and South Africa. The local office in Kent provides the full compliment of service lines.

Alison Owen – Partner 26-28 Albion Place, Maidstone, Kent ME14 5DZ Tel: 01622 756000 Fax: 01622 695536 Email: info@cluttons.com www.cluttons.com

Smiths Gore As the UK’s leading form of land agents and rural surveyors, rural estate management has formed the core of our business for over 160 years.

Michael Wooldridge, Partner 23 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4UA Tel: 01732 879050 Fax: 01732 879051 www.smithsgore.co.uk Endorsed by:

The Royal Institution of Chartered Surveyors Portman House, 2 Portman Street, London W1H 6DU Tel: 020 7408 1010 Fax: 020 7629 3263

Locate in Kent As the single point of contact for all companies looking to expand or relocate in Kent and Medway, Locate in Kent provides a comprehensive, confidential and free business relocation and expansion advisory service.

33

See Overleaf for Strategic Developments

Paul Wookey, Chief Executive 35 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4AX Tel: 01732 520700 Fax: 01732 520701 Email: enquiries@locateinkent.com www.locateinkent.com

The leading professional body on all aspects of real estate, property, construction and associated environmental issues.

Jeremy Percy, Chairman, RICS South East Regional Board Gleeds 95 New Cavendish Street London, W1W 6XF T: 020 7631 7000 Email: jerry.percy@gleeds.co.uk www.rics.org

33

KENT PROPERTY MARKET 2010 Ashford shared space

Acknowledgements The compilers of this report are grateful for the assistance, information and data provided by the following organisations in London and Kent: Atrium Surveyors

Glenny LLP

Taylor Riley

Altus Edwin Hill

GVA Grimley

The Gallagher Group

Bidwells

Harrisons Chartered Surveyors

Watson Day

Brian Cradick & Co

Ibbett Mosely

WCR Property Ltd

Broadlands Chartered Surveyors and Property Consultants

Karrisons

Valad and Benchmark Estates

Kent Science Park

Visit Kent

BTF Canterbury Christ Church University Caxtons CB Richard Ellis Churston Heard Clive Emson Colliers CRE Core Commercial Cripps Harries Hall LLP CTM Architects LLP DTZ Durlings

34

Knight Frank Lambert & Foster

Kent District Councils:

Land Securities

Ashford, Canterbury, Dartford, Dover,

Liberty Property Trust UK Ltd

Gravesham, Maidstone, Sevenoaks, Shepway, Swale, Thanet, Tonbridge

Martine Waghorn

& Malling and Tunbridge Wells

Quinn Estates

Medway Council

Ramac Holdings Ltd

Ashford’s Future

Rosefarm Estates Plc

Dover Pride

Savills

Kent Thameside Delivery Board

Sibley Pares

Medway Renaissance

Smith-Woolley & Perry

Swale Forward

Frogmore Property Company Ltd

South East England Development Agency (SEEDA)

George Wilson Holdings Ltd

Strutt and Parker

Courtesy of Giacomo Marchesi (Winner of Ashford Best Placed in Britain photography competition – 18 and over)

Sapphire House, Manston courtesy of Summit Aviation

35

www.kentpropertymarket.com

Learning & Community Campus, The Bridge, Dartford

This report has been carefully prepared. However it is intended for general guidance only and neither Cluttons, Kent County Council, Locate in Kent nor RICS can guarantee that there are no errors or omissions. The information, forecasts and opinions set out herein should not be relied upon to replace professional advice on specific matters. No part of this report should be published, reproduced or referred to without prior permission of Cluttons, Kent County Council and Locate in Kent.

Front and back cover shows: Learning and Community Campus, The Bridge, Dartford Architect: Hazel McCormack Young LLP Contractor: Mansell Constructions Services Limited Photographer: Sarah J Duncan Cover printed on: Era silk 350gsm (50% virgin fibre from FSC窶田ertified forests and 50% recycled waste) Inner pages printed on: Era silk 200gsm (50% virgin fibre from FSC窶田ertified forests and 50% recycled waste) Designed and produced by Glendale Creative Solutions ( 01322 868688 ) www.glendale.uk.net