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LIVERPOOL CITY REGION CHESHIRE MANCHESTER
FEBRUARY - APRIL 2017
FREE
MOVE COMMERCIAL The north-west’s guide to property and business
Issue 55
Maintaining Growth Keeping success on track as Brexit progresses
Sir Howard Bernstein’s Legacy Property industry reflects on outgoing chief’s reign
Teams vs Tech Keeping HR in line with office innovation
Metro Mayors What should be top of their priorities?
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Issue fifty five Move Commercial
Welcome to Move Commercial
Contents News
As the government works towards setting the Brexit wheels in motion, Prime Minister Theresa May has announced a plan for Britain which no longer includes being part of the single market. But what does this mean for the North West and its thriving industries? In this issue we look at how the region can keep its growth on track despite competition from other European cities looking to lure British talent. Plus University of Liverpool vice-chancellor and chair of the city’s Knowledge Quarter, Professor Janet Beer talks to Move Commercial about the challenges Brexit could bring and how the Liverpool City Region’s employment opportunities and industries can flourish.
As Manchester City Council’s long-standing chief executive, Sir Howard Bernstein prepares to retire this spring, the city’s commercial property sector looks back at his transformational legacy. And with businesses striving for more up to date workspaces incorporating new technology, we explore the benefits this can bring to companies as well as the implications they may face when it comes to employees’ rights.
06 North West delegations prepare for MIPIM 07 EU trade deal ‘critical’ for Warrington’s prosperity 08 Contract award for £5m Liverpool car park 09 Grade A space at One St Paul’s Square returns to market 10 First occupants announced for MediaCityUK’s Tomorrow 11 Construction forum showcases fresh Wirral talent
Natasha Young, editor natasha@movepublishing.co.uk
12 Expanding port helps drive success at Bruntwood developments
Photo: iStock/stnazkul
35 Penny Lane Hotel up for sale
Features 14 Bitesize Thinking Food for thought 16 Appointments Who’s moving where? 19 My Month ISG’s regional managing director, Andy McLinden works on high profile North West projects
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20 Interview Penketh Group’s MD, Mark Penketh on how the company has moved with the times during its four decades. 24 Sir Howard: Manchester’s white knight Manchester’s commercial property sector reflects on the outgoing chief’s legacy of regeneration
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28 Interview University of Liverpool vicechancellor, Professor Janet Beer on enhancing the Liverpool City Region’s industries and job offer 32 Enterprising authorities The North West councils looking to business to boost funds
Advertising Director Fiona Barnet. Tel: 0151 709 3871 Advertising Manager Catherine McCarthy. Tel: 0151 709 3871 Editor Natasha Young. Tel: 0151 709 3871 Editorial Team Lawrence Saunders, Mark Langshaw, Matthew Smith, Christine Toner, Liam Deveney, Amelia Eccleson-Davies, Ben Beach. Tel: 0151 709 3871 post@movepublishing.co.uk
Design Mark Iddon. Credits Cover image: iStock/Delpixart. Liam Deveney – Professor Janet Beer interview. Published by Move Publishing Ltd Directors David O’Brien, Kim O’Brien, Fiona Barnet. Printed by Precision Colour Printers Ltd Distribution Liaison Manager Barbara Troughton. Tel: 0151 733 5492 Mobile: 077148 14662
Copyright Move Publishing Limited. All rights reserved. No part of this publication may be reproduced copied or transmitted in any form or by any means or stored in any information storage or retrieval system without the publishers written permission. Although every effort is made to ensure the accuracy and reliability of material published, Move Publishing can accept no responsibility for the veracity of the claims made by advertisers.
36 Building technology Is the use of new technology in the workplace compromising employees’ rights? 40 Protecting prosperity How can the region’s growth sectors maintain momentum as Brexit progresses? 44 Business lifestyle Tech focused tips, ideas and events for businesses of all sizes 47 Ask the Panel What should be top of the new metro mayors’ priority lists?
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News Latest
North West delegations gear up for MIPIM 2017 Delegations from across the North West are gearing up to head to the south of France for MIPIM 2017. Manchester and Liverpool are both on course to send record-breaking delegations to Europe’s biggest real estate exhibition which kicks off in Cannes on 14 March. The Manchester at MIPIM Partnership this year boasts more than 100 organisations - the largest backing in its 18-year history. Sir Howard Bernstein, chief executive of Manchester City Council, says: “It’s imperative that the Manchester at MIPIM Partnership takes this opportunity to prove Manchester is an outward-thinking region that will continue to work proactively with Europe and the rest of the world.” Liverpool will be attending MIPIM for the fourth time in its current form, with a focus on having a tight-knit delegation led by a steering group limited to just 40 companies. Meanwhile, the Cheshire and Warrington Local Enterprise Partnership (LEP) will be showcasing the region for the first time. Philip Cox, chief executive of the Cheshire and Warrington LEP, adds: "Cheshire and Warrington is one of the strongest performing economies in the country, with the second highest income per head of any area in England outside London, and MIPIM offers us the chance to position our economy alongside other major players in the country.”
23,000 visitors are expected at this year’s event
ACC Liverpool hosted the industry event in 2008 and 2012
Retail property conference returning to Liverpool The UK’s biggest retail property event is heading back to Liverpool. ACC Liverpool has confirmed it will host the Revo 2017 conference and exhibition for the third time when the event returns in September. Previously known as the BCSC (British Council of Shopping Centres) Conference and Exhibition, it is expected to attract 3,000 senior retail property and placemaking professionals. A comprehensive list of seminars is also set to be announced. Now in its 32 year, the event last visited the city in 2012 when retail consultant Mary Portas spoke about the decline of the nation’s nd
high street. Kerrin MacPhie, director of conference and exhibition sales at ACC Liverpool, says: “This event is seen as a key date on the retail calendar and we are pleased that Revo has chosen to hold its event with us again, particularly during such an important year when the organisation has undergone a complete rebrand and repositioning.” Beth Wilson, head of events at Revo, adds: “We have rebranded as Revo, a combination of ‘retail’ and ‘evolution’. It’s now more inclusive and reflective of our ever changing and diverse world of retail property and placemaking.”
Buy-to-let decline ‘boosting commercial investment’ A growing number of investors are shunning the buy-to-let property market in favour of the commercial sector, according to a North West expert. Lisa Evans, a commercial property solicitor at law firm Kirwans, says new rules including the 3% stamp duty surcharge and the incoming removal of landlords’ mortgage interest tax relief have forced investors to reconsider where their interests lie. Higher yields, longer leases, and simplified legal obligations were identified as factors driving the increased demand for commercial stock, with retail units, small offices and leisure properties said to be particularly sought after. 6
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Evans says: “Buy-to-let landlords have been hit by back-to-back sanctions in recent years, and many have been left unsure of where to turn, with even the option of transferring assets into a limited company bringing with it significant problems. “The financial penalties have hit investors hard, but many are also fearful of the potential to be found in breach of regulations when it comes to HMOs, and the introduction of measures to make it a criminal offence if you fail to carry out right to rent checks correctly. “When you look at those factors combined, you can see why the relative ease of renting out commercial property makes it a far more attractive position.”
Lisa Evans says buy-to-let landlords are shifting to commercial property
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Latest News
EU trade deal ’critical’ for Warrington’s prosperity The Prime Minister has outlined plans to leave the single market when Britain exits the EU
Securing an effective EU trade deal is vital to the economic prosperity of destinations like Warrington, according to research by policy group Centre for Cities. The think tank’s Cities Outlook 2017 report lists the Cheshire town among the UK’s top 10 exporters to the European Union (EU) and highlights the nation’s reliance on the single market. Alexandra Jones, chief executive of Centre for Cities, says: “Securing the best possible EU trade deal will be critical for the prosperity of cities across Britain, and should be the government’s top priority as we prepare to leave the single market and potentially the customs union. "While it’s right to be ambitious about increasing exports to countries such as the US and China, the outcome of EU trade negotiations will have a much bigger impact on places and people up and down the country." European trade makes up almost 60% of Warrington’s exports, while the EU accounts for 46% of all British exports, making it three times larger than the US and 11 times bigger than China. Prime Minister Theresa May has revealed plans to remove Britain from the single market and emphasised the importance of striking up new trade deals with America.
Property tax specialist launches first northern office in Liverpool Property tax advice firm STax has plans for growth in Liverpool during 2017 after launching an office in the city. The national company, which has remote working staff around the UK, recently set up its first branch north of London in The Plaza on Old Hall Street. Alongside other STax offices in the capital city and Brighton, the Liverpool commercial district site will enable the firm to enhance its services to help businesses exposed to real estate maximise on their entitled tax relief and, in turn, grow. Andrew Stanley, managing director of STax, says: “Whilst we are a national firm we have experienced significant continued expansion in the North West over the last few years. “We decided that now is the time to establish a permanent physical presence.
STax managing director, Andrew Stanley
“Out of all of the cities in the North West the energy and style of Liverpool made deciding where to base our team an easy choice.” The newly established Liverpool team is being led by the firm’s associate director, Lee Connelly.
RSM boosts 20 Chapel Street presence Audit, tax and consulting firm RSM has more than doubled its footprint at prominent Liverpool office development 20 Chapel Street. The new lease supports the firm’s growth plans and further strengthens its presence in the city. RSM worked closely with its advisors JLL and the new landlord BAPTL alongside its asset manager, Canmoor, to secure the lease. Graham Bond, RSM’s office managing partner in Liverpool, says: “Liverpool is a crucial market for RSM. “We see huge growth potential here and investing in a larger office space in the heart of Liverpool’s commercial district not only
reinforces our position as a leading firm, but demonstrates our commitment to the city.” Jill Jones, RSM’s regional managing partner for the North West, adds: “We have a clear vision to become the first choice advisor to middle market leaders and we continue to invest in key areas of the business to support this goal. “Liverpool is a thriving market and this investment ensures we are well placed to help more clients, and maximise the opportunities across the Merseyside region.” Current tenants at 20 Chapel Street include Barclays, Liverpool FC, Police Mutual, CS Financial and The Lead Agency.
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News Latest
Construction contract award for £5m Liverpool car park The new car park will be owned and operated by the council
A construction contract to build a new £5 million car park in Liverpool city centre is to be awarded. The multi-storey development, which will include 333 car parking spaces alongside retail or restaurant premises, was given the goahead by Liverpool City Council in January. A report to be discussed by cabinet members on 3 February is recommending the council enter into a construction contract under the Scape Group’s National Framework with Willmott Dixon Construction (WDC) for a total expenditure of up to £6.75m. If approved, the project will add to an already strong pipeline of work for Wilmott
Work underway on Anfield revamp Demolition works are underway in Anfield as part of plans to revamp an area surrounding Liverpool Football Club’s stadium. Liverpool City Council’s vision for Walton Breck Road includes new shops, commercial premises, homes and apartments. Scores of derelict buildings will be demolished or rebuilt as part of the regeneration with the road narrowed to create wider pavements and make it more pedestrian-friendly. The work, which also includes the creation of new outdoor spaces and a new hotel, is to be carried out in phases over the next three years, with the first phase comprising demolitions, planned acquisitions of commercial and mainly
The first phase of demolition work is scheduled to finish by March
vacant residential property, and business relocations. The current demolition of two blocks at Venice and Vienna Street intersects with Walton Breck Road and is expected to be finished by March. It’s hoped the changes will eventually attract new business and investment to the area. Work on Liverpool FC’s flagship store on the high street has already begun and is scheduled for completion in July 2017, creating 60 permanent and casual roles. Councillor Ann O’Byrne, deputy mayor of Liverpool, says: “We are not there yet but this is a massive step forward for the Anfield regeneration project and an important day for the community.”
Dixon in Liverpool. The construction firm announced last December that its workload in the city had surpassed £100m over the past three years with company also lined up by the council to create a new school and car park. Split into two elements, the city council development will be built on the existing surface car park behind the Municipal Buildings. It’s hoped the car park will be a catalyst for the further regeneration of the Victoria Street area and meet the demand of hotels close to the site which do not currently have their own car parking, including the DoubleTree by Hilton on Sir Thomas Street.
Urban Splash looks to build on 2016 successes Emily Handslip has been promoted at the firm amid a period of growth
North West regeneration firm Urban Splash has hailed 2016 a success after completing 100,000 sq ft of deals. Anticipating further opportunities for growth in 2017, the firm has promoted its associate director Emily Handslip to the role of commercial lettings director. Significant 2016 agreements included the sports brand fanatics letting 27,500 sq ft of space at Stubbs Mill in Manchester. Handslip, who has been with the firm for 10 years working across its property portfolio, says: “The past decade has been an incredible journey for me and the entire Urban Splash commercial team. "We’re blessed with managing a variety of interesting, high quality space across the UK; from new and exciting space like Stubbs Mill in Manchester to established favourites like the Tea Factory, we have solutions to fit all businesses whether large corporations or smaller start-ups. "2016 was a great year for Urban Splash and we are excited about the opportunities that 2017 will bring for the team; Mansion House in Manchester, where we’ve just received planning permission for apartments, cafes, shops and offices, and Smith’s Dock in North Shields, a large mixed-use site with our partner Places for People. “I can’t wait to work on them and our existing portfolio to help more great businesses move to well-designed workspaces.”
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Sales & Lettings News
Two new lettings at Century Building
Mason Owen is a joint agent for the One St Paul’s Square space
Grade A Liverpool office space brought back to the market Grade A office space at Liverpool’s One St Paul’s Square development has been brought back to the market. Agent Mason Owen has been retained to help find tenants for two floors of the building at the heart of the city’s commercial district. The 34,000 sq ft of third and fourth-storey space has been released through the company’s client, Hill Dickinson after it reduced its footprint in Liverpool through “more efficient working practices”. Situated at the front of One St Paul’s Square facing Old Hall Street, the offices are positioned around a full-height glazed atrium
and have a finished floor to ceiling height of 2.75 metres. Occupants will have access to meeting and conference facilities on the seventh floor as well as an in-house catering facility on the first floor. Mark Coulthurst, partner at Mason Owen, says: “One St Paul's Square is one of Liverpool’s premier office buildings and we are confident that the availability of such quality space will appeal strongly to those with a requirement for high quality accommodation in the city centre.” Mason Owen is jointly marketing the property alongside Worthington Owen.
Mason Partners has announced two new lettings at Century Building in Liverpool. Law firm Claus Walker and Partners and contractor George Jones and Son have taken 4,123 sq ft in total. Claus Walker agreed a five-year lease on 2,598 sq ft at the newly refurbished 26 Century Building offices, and has been fully operational there since the start of the year. Meanwhile George Jones has signed up for 1,525 sq ft in Merchants Place, also at Century Building, securing a five-year lease. All staff will be relocating to the new base by the end of February 2017. Mark Glenville, head of real estate at Claus Walker and Partners, says: “We’re delighted with our new accommodation and look forward to growing our business at Century Building over the coming years.” Joint agents Mason Partners and CBRE acted for Century Building’s landlord, North West Industrial Estates Ltd in both transactions. Century Building offers a mix of commercial accommodation
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News Sales & Lettings
First occupiers sign up at Tomorrow
The Tomorrow building also includes a 112-bed Premier Inn hotel
No. 1 Old Hall Street welcomes trio of new tenants Downing has welcomed three new tenants to its recently completed flexi offices at No.1 Old Hall Street. The property developer recently delivered 10 new workspaces over 5,000 sq ft on the second floor of the building in Liverpool’s commercial district. Distance learning business Unicourse Limited, which formerly let a ground floor unit at the city centre office building, has expanded following a period of growth and has taken a larger suite. The Cambridge Weight Partnership and Zeus Claims Solutions Ltd complete the hat-trick of tenants which have moved into the newly released offices. John Clegg, head of property management at Downing, says: “We’re delighted to welcome this trio of tenants to our new flexi office suite on the second floor at No. 1 Old Hall Street - the suites are fantastic, in a great building, in the heart of Liverpool’s business district. “We’re particularly pleased to be welcoming Unicourse into its new space following the company’s success and we’re delighted that it has decided to remain and grow with us -this is exactly the kind of solution our flexi portfolio can enable.”
The new suites at No.1 Old Hall Street are almost 50% let
Units at Eden Square come with planning permission for a range of uses
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The first three occupiers have been confirmed at MediaCityUK’s new creative and tech workspace, Tomorrow. The new tenants include a connectivity provider, a radio production company and a design agency. New to MediaCityUK and the first confirmed occupier is Global Capacity, a US connectivity ‘as a service’ company. The firm, which has multiple offices across the US, will run its UK operations from a 2,227 sq ft space on the first floor of the nine-storey building.
Independent radio company Audio Always, formerly based at the nearby Greenhouse building, is moving into a 957 sq ft suite which comprises two studios. Branding and digital agency Carbon Creative is the third confirmed occupier. Stephen Wild, managing director of MediaCityUK, says: “The first tranche of occupiers for Tomorrow represent an eclectic mix of key players in the creative and tech markets. “It’s great to see the vision of MediaCityUK as an ecosystem for start-ups come to fruition, progressing to larger spaces as they thrive.”
New letting secured at Chester Business Park
The firm will move into the ground floor of International House
Just one vacant unit remains at Chester Business Park’s International House building following the latest letting deal at the office complex. Global wealth management company Old Mutual Wealth has signed a 10-year lease with developer Prospect GB on a ground floor suite comprising 6,000 sq ft of space. The sole remaining unit at International House is a first floor suite with 7,500 square feet of space which has been refurbished to Grade A standard. Features of the open plan space include air conditioning, double glazing, suspended ceilings, new lighting, a swipe card entry system, lighting motion sensors and raised floors. Chris Walker, head of Prospect GB’s commercial division, says: “The ground floor suite at International House was recently vacated by NextGear Capital UK, which needed larger space and signed a lease on all 11,500 square feet of our neighbouring Edward House building. “We didn’t take long to attract a new tenant for the vacated unit at International House and this reflects its sought-after location in the heart of one of the North’s leading business parks. “We are delighted to be welcoming another prestigious name to International House with the arrival of Old Mutual Wealth.”
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Development News
Construction forum showcases fresh Wirral talent Representatives from around 85 Wirral-based contractors gathered at a special event showcasing the capabilities of budding builders at a local college. Visitors to ‘Talent of the Future’, organised by the Wirral Chamber Construction Forum, were given practical demonstrations from students hoping to secure apprenticeships with local firms. Students from Wirral Metropolitan College’s Wirral Waters Campus in Birkenhead were also able to speak with contractors to discover what was required to enter the sector. Local contractors met with supply chain managers from both the developer behind Wirral Waters - Peel Land & Property - and Morgan Sindall, which built the Wirral Metropolitan College building. Barry Roberts, chair of the Wirral Chamber Construction Forum, says: “The event was a tremendous success. “We had representatives of almost 100 local contractors who were very keen to find out about both the quality of the training the students’ receive and the opportunities for securing work on new developments.” The Wirral Chamber Construction Forum was established in December 2016 to make sure businesses across the borough benefit from local spending on construction projects.
Barry Roberts, Sharon Brown, Ian Parkinson, Gill Roberts, Michael Norton Jane Smith, Kevin Adderley
Image: Mark Waugh
Repairs completed on Piccadilly Gardens fountain
Piccadilly Gardens’ fountain is back in working order
The regeneration of Manchester’s Piccadilly Gardens has moved a step closer following the completion of repair work on its famous fountain. The water feature is back in working order after its two water tanks were replaced and problems with its plant room were resolved. Following the four-month repairs, Piccadilly Gardens’ fountain has a water capacity of 70,000 litres which feeds 15 pumps to power the 180 jets throwing water six metres into the air. Councillor Pat Karney, Manchester City
Council’s city centre spokesperson, says: “It would be easy to underestimate the massive scale of the repair project. We’ve had to dig more than 10 metres below the surface to remove the huge machinery hidden under the gardens. “It’s hugely exciting to see the fountain flow again, and it will be complete to reopen in time for the spring and summer months. The fountain’s repair is part of a £10 million scheme to regenerate Piccadilly Gardens, the final phase of which will include irrigation system repairs, returfing of the grassy areas and cleaning of the statues.
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News Development
Expanding port helps drive success at Bruntwood developments
In brief... Knowledge Quarter contractor appointed
Bruntwood’s Burlington House is said to be benefitting from the port expansion
Construction firm Morgan Sindall has secured a £47 million contract to help develop Liverpool’s Paddington Village scheme. The firm will work on two projects which have been planned as part of the £1 billion extension to the city’s Knowledge Quarter. Having been appointed by Liverpool City Council, the firm will work on the first phase this summer involving infrastructure and public realm works and the creation of market-ready development plots. The second phase will see Morgan Sindall build the new Northern Centre of Excellence for the Royal College of Physicians, and the building is due for handover in late 2019. The expansion of the Liverpool City Region’s port is continuing to fuel success at nearby Bruntwood office complexes, according to the firm. The family-owned property company, which has developments in the Waterloo and Bootle areas close to the port, suggests the latest phase of the docks’ growth has “given business owners the confidence” to set up operations in the area. Burlington House and St Hugh’s, which are both within two miles of the Port of Liverpool, are said to be drawing companies from sectors including logistics, HR, marine and engineering.
Strong post-Brexit demand for industrial refurbishment opportunities, says expert Older industrial units with refurbishment opportunities are attracting strong post-Brexit interest according to a North West expert. John Burrows of B8 Real Estate says there is high demand from investors for such properties as there continues to be a shortage of new-build and more modern estates. His comments come after B8 Real Estate completed the sale of the 174,569 sq ft multi-let Transpennine Trading Estate on Gorells Way in Rochdale. Acting on behalf of LaSalle Investment Management, the agent sold the property to PGIM Real Estate for 12 MOVE COMMERCIAL
Tony Reed, head of sales at Bruntwood, which has reported a rise in enquiries at the developments during the three months since the Liverpool2 deep water container terminal opened in November, says: “The Liverpool City Region is demonstrating a clear strategy for reviving and expanding its port and the launch of this latest phase has clearly given business owners the confidence to expand or relocate their own operations as a result. “We had a consistent wave of enquiries and deals at St Hugh’s and Burlington House throughout 2016 and enquiries are continuing to soar.”
Transpennine Trading Estate has been sold
Manchester’s Factory to get underway in spring Construction work is due to start on Manchester’s multi-million pound Factory venue this spring after plans were given the green light. The new arts centre, designed by the Office for Metropolitan Architecture (OMA) and backed with £78 million from the government, will be developed in the city’s new St John’s neighbourhood. The cultural venue, which will be operated by Manchester International Festival, is expected to add £1.1 billion to Manchester’s economy over a decade.
Vincent hotel planned for Baltic Triangle
£6,925,000, which reflects a net initial yield of 8.0%. The estate comprises 16 fully let units with an average weighted unexpired lease term (AWULT) of 4.35 years to expiry. Burrows says: “We are pleased with the good level of interest this property generated post-Brexit. “The sale shows investor demand remains strong for older estates with good fundamentals and which offer the opportunity to be refurbished, particularly given the continued supply shortage of new-build/modern estates.” PGIM Real Estate was represented by WHR in the Transpennine Trading Estate deal.
A £70 million hotel could be developed in Liverpool’s Baltic Triangle. Developer Elliot Group has applied to Liverpool City Council to change the use of one of its existing planning approvals, which incorporated 253 apartments. The Vincent brand, led by hotelier Paul Adams, would operate the new Norfolk Street accommodation if approved as it continues to expand around the Liverpool City Region. Designed by Falconer Chester Hall, the proposed hotel would include 306 bedrooms along with 50 ‘oversized’ serviced apartments and a 10,000 sq ft basement event space. Rooftop features would also include a restaurant, lounge, spa, gym and outdoor circuit training terrace.
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MediaCityUK
A new, exciting and imaginatively designed workspace for digital and creative businesses Flexible space from 950 sq ft - 8300 sq ft
Forget yesterday, seize today and embrace Tomorrow Lynn Haime, MediaCityUK
Ed Keany, Edwards & Co
Richard Lace, OBI Property
0161 886 5331
0161 833 9991
0161 237 1717
lynn.haime@mediacityuk.co.uk
ed@edwardsandco.com
rlace@obiproperty.co.uk
tomorrowmcuk.co.uk
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Bitesize thinking
Carmel Booth chief executive of Atlantic Gateway and partner, Calderstones Consulting
If only I’d known… The start of 2016 saw property and stock markets bouncing back from the lows of 2008, analysts predicting that the UK would remain in the EU and globally we had the prospect of the first female president of the USA. 2016 showed us how quickly things can change… and that pollsters and analysts are not always right! The early part of 2016 saw the then Chancellor, George Osborne, strongly backing the Northern Powerhouse and hopes were high for significant investment in infrastructure, especially transport. Love it or loathe it, the concept put the North back on the political agenda.
But the Northern Powerhouse lost one of its greatest supporters from the front benches later that year and not many people saw it coming. As a North West MP, Osborne clearly understands the growth potential of the North and was disappointed at the new government’s initial ‘wobble’ over the Northern Powerhouse concept. Momentum was lost last year but appears to be back on track, albeit having taken a knock. If only we’d known about the political changes in 2016, perhaps we wouldn’t have taken the Northern Powerhouse concept for granted.
In my crystal ball... It’s going to be a challenging year as the UK starts to negotiate its way out of the EU but I don’t believe it’s all doom and gloom. The North West is resilient and well placed to build upon its strengths and new opportunities. 2017 will see a focus on the ‘three Is’ – internationalism, innovation and infrastructure. The UK may be leaving the EU but it remains a key global player and 2017 will see renewed focus on export markets, international relationships and growth of the North West’s two key international gateways; the Port of Liverpool and Manchester Airport. Innovation is back in the spotlight and Brexit may
result in an even stronger drive from the government and the private sector to invest to improve productivity and growth. 2017 will see the regions’ universities becoming increasingly more influential, working closer than ever with businesses, government and cities to drive innovation. Despite some government promises about infrastructure investment, frustration is building. 2017 will see louder calls from the private sector for the government to take action on key proposals including Northern Powerhouse rail and better connectivity so that the North really can claim to be a Northern Powerhouse.
Photo: DAVID ILIFF. License: CC-BY-SA 3.0
My favourite building with... Karl Connolly director, Caco Inc.
Sydney Opera House 2015 was a monumental year for me – marriage, self employment and my first visit to an old friend in Shellharbour, New South Wales, Australia. Having embarked on several journeys simultaneously it seemed only fit to live out a lifelong ambition and attend a performance at the Sydney Opera House, sharing that with my partner Caroline. It didn't disappoint. The performance could have been anything but we were lucky to be in the right time and place (or is that space) to witness an evening with the world renowned professor of mathematics, Stephen Hawking. A remarkable performance, a cosmic tour de force and set within a building that is magnificent. It defines what architecture and engineering is and conjures a magical space that enlivens the senses - a masterpiece at every level, inside and out, from top to bottom and from back to front. Sydney Opera House is a true icon and modern wonder of the world. 14 MOVE COMMERCIAL
“It defines what architecture and engineering is and conjures a magical space that enlivens the senses - a masterpiece at every level, inside and out.”
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Bitesize thinking
UNDER CONSTRUCTION
David Sutcliffe director and head of professional services, Fleurets
Curriculum VITAE Main duties: I deal primarily with the valuation and sale of licensed and leisure properties. Education: BSc in Urban Estate Management at Liverpool Polytechnic. First Job: Graduate surveyor at the Property Service Agency looking after the government’s defence and civil estates. Shortest Job: I worked at the above position for two and a half years. The move was motivated by my need to replace my decaying Mark II Ford Escort. What’s the secret to your success? Having a good team around me. What piece of advice would you give someone starting out in the industry? Work hard and be honest with everyone you deal with. People in property have long memories.
What’s the best piece of advice you’ve received? Apart from being told to become a surveyor and not a planner, get in the market and understand your client’s needs. What makes Fleurets different? Fleurets is a niche practice that specialises in all aspects of licensed and leisure property surveying. We have a national presence but having a network of regional offices gives us local knowledge. Tell us about Fleurets’ plans for the next 12 months? The licensed sector is undergoing a period of upheaval with the introduction of the new Pubs Code. We expect an increase in merger and acquisition work too. The private freehouse market is also starting to re-emerge from the recession. We are focussed on ensuring our clients maximise the benefits created by these changes.
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Storyhouse Chester city centre’s new multi-million pound theatre, library and cinema complex is due to open its doors in the coming months. The cultural centre project has been transforming the city’s former Odeon cinema site.
OCT
Kier Construction is announced as the main contractor for a new £37.5m theatre, library and cinema complex at the former Odeon cinema in Chester city centre. The complex, on Northgate Street, will be designed by architects Bennetts Associates and funded by Cheshire West and Chester Council.
JAN
Councillor Stuart Parker, executive member for culture and economy for Cheshire West and Chester Council, reveals the development will be named RE:NEW until an official name is given to the complex.
MAY
More details are released including CGIs of how it will look when completed. It’s announced that exhibitions will be held in and around Chester allowing the public to view the images and give feedback on the development.
JUL
The Arts Council announces a £3m funding grant for the RE:NEW project.
SEP
The scheme is recommended for - and subsequently receives - planning permission.
FEB
Development work begins on the project. One wall of the 1930’s Odeon building is taken down - the new complex will connect to the existing structure.
APR
Latest images of the build are released with the demolition of the Odeon’s interior almost complete. The building will house the library, cinema and cafe elements of the complex.
MAR
The new name of the entertainment complex is announced. The development is to be called Storyhouse. Meanwhile a public consultation comes to an end.
JUN
Plans to open the complex in the autumn are scrapped after developers decide against rushing the scheme to open on time. Instead it’s announced that the new opening date will be spring 2017.
OCT
It’s announced to the public that Storyhouse will open on 11 May 2017, and its opening season will include a new musical, an ‘Alice in Wonderland’ adaptation and two Shakespeare productions.
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The 5 best commercial tweets
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@philipmp71: Great meeting with GM Chamber yesterday. Will be some extra exciting developments coming up soon! @LPL_Airport: We're celebrating 11% passenger growth in 2016 - our highest for 5 years! Thank you for the continued support @LegatOwen: Even Jamie Oliver affected by Brexit - could this be a sign of things to come for other importers of EU products? @merseygateway: The Mersey Gateway bridge deck is beginning to extend across the Mersey Estuary from each pylon and is now over one quarter complete @ann_obyrne: Great news that a new multi-million pound multi-storey car park in the heart of Liverpool has been given the green light by planners today
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p01-20_Move Commercial 30/01/2017 15:21 Page 16
Appointments
New additions for BWB Manchester
New head of commercial at Keppie Massie
Tim Garnett
Five new BWB team members
Engineering and environmental design consultancy BWB Manchester has made five new appointments as it continues to expand its capabilities. The addition of Karen Dempster and Mike Barrett sees the company add sustainability and acoustics to its expertise. Meanwhile senior engineers Georgios Rozis and Philip Barrett, who between them bring almost 25 years of experience, join the structural and civic teams respectively. Jonathan Taylor, a trainee technician, has recently joined on an apprenticeship. Regional director Robert Henshall says: “We are delighted that our office has continued to grow. The addition of acoustics and sustainability services means that we can deliver multi-disciplinary projects in-house without the need to outsource to other offices or companies.”
Keppie Massie has welcomed a new head of commercial
agency to its team. Tim Garnett will focus on the disposal and acquisition of all aspects of commercial property including office, industrial, retail, development and investment. Garnett, who was previously head of commercial at Venmores and has had roles at CBRE and Matthews and Goodman, says: “I am absolutely delighted to be joining Keppie Massie, a renowned source of expert advice within the North West and further afield. “I’m looking forward to embracing the ethos of the business as we broaden the already excellent instruction base.”
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Civil Engineers expands Civil Engineers, a civil and structural engineering practice with an office in Manchester, Leah Stuart has appointed transport engineering specialist Leah Stuart as associate director. Stuart - a chartered engineer specialising in transport and street design with extensive experience in the field - joins the business as it expands, having witnessed significant growth in transportrelated projects across the UK. She says: “With my experience in development planning and urban regeneration across the public and private sector, I am excited about the contribution I can make to the projects in the current portfolio.”
16 MOVE COMMERCIAL
New promotions and additions at the firm
Manchester-based Property Alliance Group has strengthened its team with three promotions and a new development director. Nick Mullins takes on the directorial role following a move from Lambert Smith Hampton, where he was head of funding and residential developments. Meanwhile Alex Russell, who joined Property Alliance Group in 2014, has been promoted to managing director. Rob Peill and Frank Taylor have also been progressed to head of offices and industrial respectively. Following his appointment, Mullins says: “I’m looking forward to playing a key role in the delivery of new schemes as well as securing further business opportunities and residential products to support Alliance’s growth plans and its sales arm Alliance Investments, which now has offices in Shanghai, Dubai and Singapore.”
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My Month Andy McLinden, regional managing director for northern construction, ISG Construction firm ISG’s North and Scotland division is working on prominent North West projects including Manchester’s iconic Corn Exchange and the transformation of Liverpool’s Lime Street gateway. Regional managing director Andy McLinden brings us up to speed on a busy start to 2017 at the firm.
My goal at the start of the month was...
The Whitworth ga
llery
To complete the intensive business planning process that underpins our commercial strategy for the new year. 2016 was a transformative year for ISG as we were taken into private ownership at the end of March. The cultural change has been significant and hugely positive as we focus on innovation and technology, and this has been energetically embraced by our most important asset – our people.
My biggest achievement was... Getting our £39 million mixed-use scheme for Neptune Developments in Liverpool’s Lime Street area over the line and onto site. This project has had a long gestation period and it has been a fantastic team effort from all the stakeholders working incredibly hard to realise the vision for this important regeneration scheme. The disused site will soon boast new retail space, a 101-bed hotel and student accommodation, and will act as the catalyst for further investment in the immediate vicinity. Another major business achievement to highlight was our amazing transformation of The Whitworth gallery (pictured) in Manchester securing yet another major industry accolade – this time being recognised as the Refurbishment Project of the Year at the coveted Building Awards.
THE NEWS STORY THAT CAUGHT MY EYE I was immensely proud to read that ISG’s in-house developed 3D Visualisation app made it onto the Construction News top 5 opinion list of 2016. Our industry has, for a long time, lagged behind many other sectors in embracing new technological innovation. The fact there was so much interest in our advanced visualisation app suggests there is real appetite and ambition to explore how cutting-edge technology can really disrupt the traditional ways of working in the built environment.
My biggest challenge was... That there is never enough time in the day. With my role expanding to lead UK construction North, as well as our Scotland business, I set myself the challenge of getting around and visiting all of our project sites, as well as meeting the enlarged team and our clients by the end of the year. I haven’t quite managed to achieve this, but perhaps this was an overly ambitious target given the size of our business. The common thread running through every recent visit was the dedication and enthusiasm of our team to deliver an outstanding customer experience – a key theme for our 2017 strategy.
The key meeting I had... Was with Dr Vicky Hutchinson – our national frameworks social responsibility manager. Vicky has been the driving force behind our WOWEX (World of Work Experience) initiative and has secured funding from the CITB (Construction Industry Training Board) to develop a week of work experience for young people interested in a career in construction. Vicky was updating me on the success of this excellent initiative, which is helping transform perceptions of our industry and highlighting the broad spectrum of career opportunities available in the sector.
My plan for next month... Effectively communicating and generating buy-in for our 2017 strategy gives us the clarity of direction for the business and it’s essential that everyone at team ISG is on the same journey. I’m keen to grow our exposure within the private sector, as well as continuing to provide a service to our public sector clients on high performing frameworks including the North West Construction Hub (NWCH), the Education Funding Agency (EFA), and with the Ministry of Justice (MoJ). We’ll be targeting high quality commercial office, hospitality and mixed-use schemes and, of course, we’ll continue to lead on initiatives that promote careers in our industry to young people across the region. MOVE COMMERCIAL 19
p01-20_Move Commercial 30/01/2017 14:46 Page 20
Christine Toner
How do you maintain the values and ethos of a company for over four decades while making sure it moves with the times? Mark Penketh, managing director at Penketh Group, shares the secrets to his success.
Change by designs When Mark Penketh’s father set up stationery supplier Penketh Group in 1976, the business world was a very different place. Being technologically advanced meant having a copier at your office, correspondence took place via letter writing, and stationery was king. For former stationery rep Penketh Senior it made sense to start his own firm, a family business that his sons would eventually join - including current managing director Mark who came on board in 1977 - giving him more time to spend with his family and the chance to capitalise on a huge market. Fast forward 41 years and the way businesses operate has changed drastically - technology rules. Letters have been replaced by emails, office files are now stored digitally and diaries and planners are kept online. So what do you do if your core business is in stationery? Simple, says Penketh, you adapt. “I think the thing we’ve always done really well is embrace that, 20 MOVE COMMERCIAL
with an ability to change our direction,” says Penketh. “We were predominantly a stationery supplies business and over the years we’ve added a furniture arm. “We’ve been doing furniture for 25 years but it has always been around 30% of our business. In the last two years, however, the stationery product has been in massive decline, falling 10% year on year. “Everything has gone digital. Everyone has changed their attitude. Core stationery items in the office place are not needed anymore. So we took the position three years ago to reposition ourselves and to turn focus from being a supplier led business to now more of a furniture and interiors business. “We have always been flexible enough to change. We’re not slow at reacting. We reinvented ourselves three years ago.” The business now employs 80 people, along with a third generation of the Penketh family
(Mark’s son is sales manager while his nephews work in interior design and logistics). And Penketh says the relationship the company has with its staff is imperative to its success. “We’ve still got the values of a family business,” he says. “We work very closely with our staff so we’ve got quite close relationships with them. We do an awful lot of charity work and fun days, and we have awards. “We do quite a lot to make sure that we keep people involved and because they feel so much a part of the business, they represent the business so well. “It’s really important to us to give them an environment that is nice to work in.” But it’s not just staff relationships that matter. In order to move further into the furniture industry Penketh and his team have focused on building strong relationships with large scale suppliers in the sector. It’s a move that has paid off.
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We have always been flexible enough to change. We’re not slow at reacting. We reinvented ourselves three years ago.
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“We work very closely with a company called Steelcase, an American firm which is the largest manufacturer of office furniture in the world,” he says. “We are responsible for its brand within the North West and we sell its product in the region, hence the fact that we moved into Manchester at the beginning of 2016.” The company also has its headquarters in Bromborough, Wirral and while there are no plans to extend to a third location at the moment there are plans in place to move to a bigger space in Manchester. “We started in Manchester in February 2016 with a 2,000 sq ft space,” says Penketh. “We always wanted to make more of a statement in Manchester, so we are moving to new premises in March - a 5,000 sq ft space in the Neo building on Portland St.” Penketh Group also has a technology offering, displaying another example of its success at
p21-40_Move Commercial 30/01/2017 14:47 Page 21
Mark Penketh, managing director, Penketh Group Interview
expanding into other markets. The company provides products such as interactive boards, display panels, video conferencing and photocopiers. Penketh says this allows the firm to offer a holistic approach to its clients. “A start-up business wanting furniture and interiors may come to us,” he says. “We can then address their technology needs too and, of course, a very strong part of our business is stationery supplies. “So not only do we offer solutions at the start of the process, we’re also in their long term which is good for us and it’s also good for our customers. “A lot of companies come in and do the job and then they’ll be gone but we have a long relationship and we want to make sure that relationship is good.” It’s a strategy that has proved successful. Despite the upheaval and uncertainties most industries experienced in 2016 as a result of
political chaos and, of course, Brexit, Penketh says his firm saw profits increase 15% on 2015 and he expects similar growth this year. His big plans for 2017, however, are less about figures and more about helping clients to understand the importance of office design. “The showroom we’re creating in Manchester is basically working around what we can offer customers in terms of design and how it improves productivity. That space will be showcasing leading brands and designs and various products but also how that impacts on the business itself. “One of our strengths is understanding not just the design but how practical it is in regards to making people more productive. In this day and age you can have wonderful furniture but ultimately, is that space going to help people work better?” It’s certainly an interesting time to address this issue. The way in which we work is changing and
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At the moment people have to go home to work as the space they have at work is full of distractions... You should be able to work in work.
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Penketh doesn’t believe the current set-up in many offices is beneficial to workers. “At the moment people have to go home to work as the space they have at work is full of distractions. People are investing all this money in the property yet people have to go home to work; it’s absolutely crazy. You should be able to work in work. “By showing how you can influence that space and bring areas into an office where they can be focused, people will be able to improve their productivity which ultimately improves the bottom line for a business. “A lot of CEOs and MDs are recognising the fact they need to get their employees engaged in the business to be able to perform when they’re in the business. It’s a really exciting time for us to be able to work on this.” Indeed, 40 years after joining the family business it’s clear Penketh has lost none of his passion for the industry. MOVE COMMERCIAL 21
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Mark Langshaw mark.langshaw@movepublishing.co.uk
Manchester City Council’s visionary chief executive Sir Howard Bernstein will step down from his post this spring, ending 46 years of civic duty. As retirement beckons for the man credited with leading the city’s resurgence, Move Commercial shines the spotlight on the legacy he will leave behind and considers his impact in the commercial property sector.
Sir Howard: Manchester’s white knight When an IRA bomb detonated on Corporation Street in the summer of 1996, Manchester was plunged into the depths of despair and economic uncertainty. But as the dust from the explosion was settling, Sir Howard Bernstein and his local government comrades were already drawing up plans to transform a stricken streetscape into the beating heart of a city centre reborn, immeasurably better than its predecessor. Forging a formidable partnership with current council leader Sir Richard Leese, Sir Bernstein and his team worked tenaciously as they oversaw the multi-million pound rebuild and tackled seemingly insurmountable funding barriers along the way. From the revitalised Manchester Arndale which opened in 2003 to the green oasis of Cathedral Gardens, what was once a bombsite is now a worldclass leisure and retail hub beaming with civic splendour - forever a reminder of the outgoing chief executive’s glistening track record in regeneration. “Sir Howard Bernstein’s passion for rebuilding Manchester city centre into the world-class destination it is today was a key factor for us in realising the 24 MOVE COMMERCIAL
extension of Manchester Arndale,” says Trevor Hankin, fund manager at Manchester Arndale’s joint owner M&G Real Estate. “I am confident that without his input and determination we would not have been able to deliver the transformational redevelopment within the timescales achieved.” A pivotal role in securing the 2002 Commonwealth Games - which was, at the time, the largest multi-sport event staged on UK soil since the 1948 Olympics - also ranks highly on Sir Howard’s expansive list of achievements. This gold medal-worthy feat is regarded as a turning point in the history of Manchester, a milestone which breathed new life into deprived districts through sports-led regeneration and thrust the city back under the international spotlight. The impact of the Commonwealth Games remains etched into the face of the city through flagship developments including the majestic City of Manchester Stadium, now known as the Etihad Stadium and anchored by Sir Bernstein’s beloved Manchester City FC, and the £9 million Velodrome. Prior to hosting the tournament around 18m visitors were flocking to
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Sir Howard has been at the heart of the many developments which have contributed to Manchester being recognised as a world leading city.
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Manchester each year, a figure which would skyrocket to more than 90m within a decade. “Sir Howard has always been a believer in innovation and has led from the front, bringing change to a city when it needed it most,” says Tom Higgins, director of the North for Etihad Stadium contractor Laing O’Rourke. “His role in the successful bid for the Commonwealth Games and bringing together the authorities of Greater Manchester are two of his greatest achievements. “Laing O’Rourke recognises the work he has done in rebuilding the city and it has been an honour to work with Sir Howard and the council to bring many of their visions and aspirations to life.” Of course, Sir Bernstein’s regenerative influence stretches back before the Commonwealth Games and even the IRA bombing, with projects including the transformation of Hulme and the construction of the Bridgewater Hall concert venue also deserving pride of place on his CV. By 2003 he was knighted along with Sir Leese for his services to Manchester, and the city’s resurgence was showing no signs of slowing under his watch with ambitious projects including MediaCityUK, Airport City and
p21-40_Move Commercial 30/01/2017 14:47 Page 25
Sir Howard Bernstein Legacy
Photo: Rept0n1x/Wikimedia Commons
Sir Howard Bernstein
the glitzy Spinningfields all bearing his fingerprints. "Our partnership with Manchester City Council has extended to nearly 20 years, and in that time we have achieved real progress,” says Mike Ingall, head of Spinningfields developer Allied London. “Our joint success at Spinningfields has been nationally and internationally recognised - this would not have been possible without transparent, honest and considered commitment to the partnership by both parties. Sir Bernstein has led that commitment, and in doing so has enabled it to work and be a success for the benefit of the city and wider community.” Although Sir Bernstein will always be synonymous with regeneration, the infrastructure improvements during his town hall tenure must not be overlooked, from the spread of the Metrolink network to the establishment of Manchester Airport as a limited company. “Sir Howard has been at the heart of the many developments which have contributed to Manchester being recognised as a world leading city in the eyes of international investors and visitors alike,” says Charlie Cornish, chief executive of Manchester Airports Group.
Sir Bernstein is credited with enabling Spinningfields to work
The Manchester Arndale shopping centre
"That includes support for the development of Manchester Airport and Airport City, which has been evident over many years." Many believe the culture of collaboration Sir Bernstein championed is a key part of his legacy, hailing his success in uniting the public and private sectors to secure critical funding, and pooling the resources of local councils to form the Greater Manchester Combined Authority which is now at the epicentre of the Northern Powerhouse agenda. “Perhaps his greatest legacy is the deep and shared belief that we can do more in partnership than by working separately,” says Chris Oglesby, chief executive of property developer Bruntwood. “He forged the Manchester family - a habit of making common cause which works across all parts of both the public and the private sector. “That way of working is deep in the city's DNA, lies behind its greatest achievements, and will be the key to its continued success.” Since Sir Bernstein helped Greater Manchester become a combined authority in 2011, the city region has benefitted to the tune of £1 billion in government funding and acquired devolved powers over skills, transport
and housing to reduce its dependence on Whitehall. More recently, the outgoing chief executive had a hand in securing a devolution agreement with the NHS for the £6bn health and social care budget - a ground-breaking experiment which could relieve pressure on the overstretched health service. “The true testament to Sir Howard is not just his tenure as chief executive,” says Ken Bishop, director at JLL in the North West, a property consultant who has worked in the industry for more than three decades. “It’s that he has also managed to establish Manchester as a truly European city while pursuing extra-curricular activities at Westminster Council, Blackpool, Manchester City Football Club and most recently leading the task to restructure the NHS in Greater Manchester.”
Sir Bernstein is widely regarded as a star of local government who changed the face of Manchester during his tenure as chief executive - not bad for a Cheetham Hill scarf enthusiast who began his town hall career making cups of tea. His soon-to-be successor Joanne Roney certainly has her work cut out replicating such success, but Sir Bernstein’s supporters are confident the legacy he will leave behind puts Manchester in good stead to continue on its upward trajectory. “No doubt the legacy of Sir Howard’s remarkable career will continue,” says Trevor Hankin. “I think this is especially true around his commitment to developing strong relationships between the public and private sectors and the spirit of collaboration he fostered.” MOVE COMMERCIAL 25
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Natasha Young natasha@movepublishing.co.uk
The University of Liverpool plays a key part in developing skills for business success, but how can more talent be retained in the city region after graduation? Vice-chancellor Professor Janet Beer speaks to Move Commercial about creating the right conditions for the area’s industries and job offering to grow.
An environment to thrive in It’s been an eventful two years since Professor Janet Beer took the helm at the University of Liverpool. Following a seven-year stint at Oxford Brookes University, where she held her first vice-chancellor role, she was enticed to the top position at the North West institution in 2015 with the belief there was “a job to do” there. Whilst the university is currently drawing a “healthy” influx of applications from prospective students sizing up the city, Professor Beer is keen to drive up the numbers of those who settle and find jobs in their field in Liverpool after graduation. “In the Liverpool City Region we have to grow jobs in our knowledge economy,” she tells Move Commercial. “We’re working very hard to embed entrepreneurial skills into students’ programmes of activity so that they’re more likely to stay here if they’re going to set up businesses or go into small and medium enterprises, rather than thinking they have to go and work for a KPMG or Marks and Spencer. “One of the problems is that we don’t keep enough highly qualified people here in terms of starting their own business and really engaging with local growth.” The change Professor Beer can put 28 MOVE COMMERCIAL
in place to help Liverpool retain its talented graduates is by no means confined to the campuses of the University of Liverpool though. The academic leader is also chair of Knowledge Quarter Liverpool – one of the area’s largest development sites attracting billions of pounds of investment – which has potential to further strengthen the city region’s science, technology and research sectors and drive business and employment growth. “If we can really galvanise the Knowledge Quarter as a hub for investment for biotech, for instance, there will be creation of large numbers of jobs that otherwise wouldn’t necessarily be in the city region, but we have to make sure the conditions are right for those companies to thrive in,” says Professor Beer. “We also have to make sure they get access to expert advice on the entrepreneurial side from colleagues in our University of Liverpool Management School.” The progress of the Knowledge Quarter – a collaboration between the university and other authorities and institutions including Liverpool John Moores University (LJMU) and Liverpool City Council - really gathered momentum in 2016. It was revealed that the expanding
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If we can really galvanise the Knowledge Quarter as a hub for investment for biotech, for instance, there will be creation of large numbers of jobs that otherwise wouldn’t necessarily be in the city region.
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district, with university campuses and the new Royal Liverpool Hospital at the heart of it, will spill out onto the former site of Liverpool’s Archbishop Blanch School to create the Paddington Village mixed-use community. Early large-scale commitments to the regeneration have come from Kaplan International, with plans to develop its 45,000 sq ft Liverpool International College live/learn facility, and the Royal College of Physicians (RCP) which will establish RCP North at the site. “The RCP move is a very significant coup for the city and Kaplan is investing serious money in the Knowledge Quarter,” adds Professor Beer. “These are important flagships, alongside the new Royal Liverpool Hospital.” Professor Beer, who helped officially launch Knowledge Quarter Liverpool as a brand and investment opportunity during last year’s MIPIM UK showcase in London, also highlights the district’s Sensor City and Materials Innovation Factory projects as key to future growth for the city region’s universities and industries. “There’s no doubt that digital is going to be really significant and that’s another area we have to invest in to make sure students are
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Professor Janet Beer, vice-chancellor, University of Liverpool Interview
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We have to make sure that if we’re taking ourselves outside of the European Union we don’t put up any unncessary barriers or borders. Research challenges do not stop at national boundaries.
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empowered in that sector, but sensor technology is very important for all the industries that are present in Merseyside,” says Professor Beer. “To name health as one, and then shipping is another when you think about the movement of containers and fleets around the world.” Collaboration is key to the creation of Sensor City, which will provide a place for knowledge and experience in sensor technology alongside businesses working on sensor systems and applications, as the University of Liverpool will
deliver it in a joint venture with LJMU. Meanwhile the university has joined forces with manufacturer Unilever for the Materials Innovation Factory, where start-ups will work alongside scientists and the firm to learn from each other. “We think we can really maximise the innovative capacity in the region,” says Professor Beer. But while there is much to be optimistic about in the Liverpool City Region, universities haven’t been immune to the cloud of
uncertainty created by the outcome of last summer’s EU referendum. In Liverpool, the government’s forthcoming Brexit negotiations will prove important to the city’s thriving student population and prominent growth sectors. “The UK punches well above its weight in terms of getting grants from Europe and, of course, we have many European staff from outside of the UK in the university,” explains Professor Beer. “Often one of the reasons they come here is, in doing their work as
academics, they can also access European funding for research projects and most of their projects are collaborative and international. “We know the efficacy of international collaboration is great – there is much more impact attached to projects that have more international collaboration – so we have to find a way of maintaining the collaborative nature of our work. “Our scientists, social scientists, humanities and academics want to work with the best in their particular area and they could be located anywhere in the world, so we have to make sure that if we’re taking ourselves outside of the European Union we don’t put up any unnecessary barriers or borders. “As I’m fond of saying, research challenges do not stop at national boundaries. Climate change is global, disease is global, and so the major challenges of our age are literally borderless.” When it comes to the University of Liverpool’s ability to continue attracting international students from the EU, Professor Beer is hopeful that the institution can avoid a fall in numbers. “There might be a downturn unless the government decides it is going to provide a very positive environment for international students from all over the world to study here, and that’s obviously what we want.” Regardless of what lies ahead for the wider Liverpool City Region and also Britain outside of the EU though, Professor Beer has “very specific ambitions” for the university moving forward as part of its 2026 strategy. “It’s about our global reach,” she says, highlighting that the University of Liverpool already attracts overseas students from around 120 different countries and is the biggest recruiter of Chinese undergraduate students in the UK. It also has a “fantastically successful” joint venture campus out in Suzhou, China. “It’s about growth, not necessarily all here in Liverpool but we’d like to set up another joint venture campus somewhere else in the world where we’re doing some work. “We need to maintain and strengthen research partnerships worldwide, and we want to be a destination that’s absolutely first choice for the best and brightest students at undergraduate and postgraduate level.” MOVE COMMERCIAL 29
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Matthew Smith matthew@movepublishing.co.uk
Local government is undergoing an unprecedented period of change, and budget pressures combined with rising service demand has prompted councils to embrace a more commercial approach. From property investment to the creation of new arms-length companies, Move Commercial looks at how local authorities here in the North West have levered in investment to bolster growth and support regeneration.
Enterprising Authorities Commercialisation and self-sufficiency have been central to council strategy in recent years and have become more important than ever in the current economic environment. Local authorities are exploring innovative methods to sustain growth and combat funding challenges by investing in property, acquiring stakes in major infrastructure assets and establishing new companies. Property investment is emerging as a preferred asset class and has been central to Liverpool City Council’s strategy to offset a 58% – which equates to £330 million – reduction in central government funding since 2010. “Reductions in government grants mean that we are going to become more reliant than ever on generating our own income to deliver services by being more entrepreneurial,” says Ged Fitzgerald, chief executive of Liverpool City Council. In 2014 the local authority purchased the city’s iconic Cunard Building - a deal which later saw Public Health England move 80 staff into the building and has also attracted the forthcoming British Music Experience (BME). When it opens in March, BME will employ 35 people and is expected to attract thousands of visitors each year, generating positive footfall effects for neighbouring attractions. 32 MOVE COMMERCIAL
“The Cunard Building deal brought a net financial benefit to the council of £1.3m in the first year and has the potential to bring in an additional £2m per year in rent,” says Fitzgerald, elaborating on the council’s role as a commercial landlord of the site. “An independent valuation of the building has shown that it is currently worth £27.8m, which is almost double the amount we spent on its purchase and refurbishment, meaning the city now has a more valuable asset. “We call it Invest to Earn and it’s about using the council’s ability to borrow and invest cash in projects which deliver a real benefit for the city.” Since 2012, Invest to Earn is said to have created and safeguarded 2,000 jobs and apprenticeships, attracted £150m of external funding and delivered £3m annually to support essential services. During MIPIM UK last October, Fitzgerald announced that the council had been considering a bid for the neighbouring landmark Royal Liver Building, which is currently on the market, although the local authority has since ruled itself out. “We took a good look at the Royal Liver Building but decided not to bid,” Fitzgerald tells Move Commercial. “We will build a good relationship with
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Reductions in government grants mean that we are going to become more reliant than ever on generating our own income to deliver services by being more entrepreneurial.
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whoever does buy it because the waterfront buildings are so vital to the city.” Away from the Three Graces, the council has also streamlined its operation by moving staff from the Municipal Buildings, which it is now selling, and the former Millennium House, for which it received £3m, into the Cunard Building to reduce accommodation overheads. “We are bringing millions of pounds every year which we wouldn’t otherwise have had as a result of such investments.” Prompted by property market uncertainty, Liverpool City Council manages its exposure by imposing legal frameworks, conducting risk and stress tests and setting aside a prudent amount of money to allow for most eventualities. And buying prominent properties outright isn’t the only option for savvy councils to make a commercial investment. Elsewhere in the North West, Warrington Borough Council and Manchester City Council have chosen to acquire stakes in other valuable assets. Warrington Borough Council is set to acquire a 33% share in a new challenger bank which will locate its northern regional office in the town, giving SMEs in the borough and around the UK
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Commercialisation of councils Focus At a glance... • Investments in commercial property and other assets are among the ways North West councils are generating revenue.
improved access to finance. Meanwhile, Manchester City Council owns shares in Manchester Airport Group and the airport, which have in turn generated dividends of £8.374m and £6.76m respectively to help fund council services. Other councils across the region have recognised that services can, however, be more effectively and efficiently provided through alternative channels. Arms-Length Organisations (ALOs) are not-for-profit companies and, by establishing them, councils retain a discrete degree of control through funding agreements and boardroom influence. Cheshire East Council is at the vanguard of such an approach and has created seven wholly-owned operators, including the Skills and Growth Company, property development firm Engine of the North and planning and construction advisory service Civicance. The group of companies is forecasting an overall profit of £612,000 so far for the local authority. “This demonstrates that the business model set up by the council for delivering services is proving to be successful,” says Councillor David Brown, deputy leader of Cheshire East Council. “We will continue to deliver new initiatives that benefit our residents and businesses and ensure that our council taxpayers are receiving value for money.” Since forming on 1 April 2016, the Skills and Growth Company in particular says it has generated an estimated £21.4m for the local economy, engaged with 85 businesses and created 250 high value jobs. “We have agreed a fairly robust performance framework with the council and we’re tracking progress against those performance metrics,” says Julian Cobley, managing director of the Skills and Growth Company. “One of the major projects we are pursuing is to rollout fibre broadband to 10,000 additional premises by the end of 2017 and we are currently on target to deliver this.” The company is delivering against three major strands on behalf of the council, including business support and inward investment, innovation and growth, and skills and employment. “In a time of austerity we need to think about delivering services
• Arms-length companies are increasingly being formed by the region’s councils to boost growth, jobs and regeneration.
differently and our objective is to increase the outputs that are not only better value for money, but potentially more commercial,” he says. “We are supporting businesses to create over 600 new jobs in priority sectors and secure £5m of investment capital with an overall net effect of hopefully growing the GVA in Cheshire East by £70m.” The firm is managing the development framework of the Bentley masterplan, currently under public consultation, which outlines the long-term future of the Bentley factory in Crewe. “Bentley is a major employer in the borough and we aim to manage the development framework of its masterplan on behalf of the council to galvanise that complete joined-up approach,” explains Cobley. “With a different emphasis and culture than multifaceted councils, we can maximise efficiencies and apply for funding streams that aren’t necessarily available to local authorities and perhaps be more agile and responsive to the market. “The council can’t necessarily trade services and think about generating profits, whereas we could potentially do that.” However, profit is a secondary outcome that Cobley says needs to converge with the local authority’s primary social aims. “We want to provide that engagement role to create employment which could potentially reduce demand on the public sector and with business Cunard Building
• More commercially savvy actions are giving councils access to funding streams which may not otherwise be available to them.
Bentley masterplan
rates potentially coming under local authority control we will become more self-reliant. “The major difference between our model and others is that we have consciously aligned the skills and growth agendas, identifying that a business can invest capital but it also needs to invest in skills.” Having observed the performance of Cheshire East Council’s ALOs, Wirral Council is also considering creating similar regeneration companies. “The removal of the Revenue Support Grant in 2020 means the only money available to invest in the borough, and the services residents rely on, will be money we can raise ourselves,” says Councillor Phil Davies, leader of Wirral Council. On announcing plans for ALOs last year, Cllr Davies told Move Commercial that the council must save £132m over its four-year budget with £90m achieved by using existing resources, renegotiating contracts and growing its income base and £40m saved by 2020 from fundamentally redesigning services. Since 2010 Wirral Council has adapted by using reserves and selling assets but limited scope exists to make similar savings. “We will create new companies,
charitable trusts and social enterprises – better capable of delivering high-quality front line services in a more efficient and commercial way than currently provided,” says Cllr Davies. “Simply put, by 2020 Wirral will be going it alone and must be selfsufficient. “This means councils like Wirral must make radical reforms to how we deliver services, how we strengthen our economy, support business growth, and encourage new firms to move here and create jobs.” Subject to agreement, the ALO will aim to enable the council to involve and empower communities and businesses and be more commercial in how it engages with investors and developers. “We must simplify the way Wirral Council does business so we’re consistently on the front foot,” adds Cllr Davies. “Risks can be mitigated by looking ahead and using business intelligence and expertise out there in Wirral to ensure that we act in a timely and appropriate way.” Considering the approach of different councils it’s clear that commercial approaches are leading the policy agenda and although risks are presented, the failure to commercialise may pose far greater challenges. MOVE COMMERCIAL 33
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Leisure News
All 17 bedrooms feature Beatles artwork and memorabilia
Penny Lane Hotel hits the market A Beatles-themed hotel close to the world famous Penny Lane is up for sale in Liverpool. The Penny Lane Hotel on Smithdown Place, which has been brought to the market by business property advisor Christie & Co, has a price tag of £950,000. Formerly a bank, the hotel faces the road which was made famous by the Fab Four’s 1967 single and sits opposite St Barnabas Church where a young Paul McCartney was a member of the choir. The three-storey, 17-bedroom
property has been refurbished and decorated to reflect the history of the band and the area. Ryan Lynn, associate director at Christie & Co, says: “This is a fantastic opportunity for a buyer to not only get involved in a hotel which is continuing to grow on a yearly basis, but to also be a part of the history of The Beatles by paying homage to their memory. “An experienced operator could capitalise on the unique location of The Penny Lane Hotel and build on the current business to drive profitability forward.”
The kitchen surfaces have a high quality finish
Work complete on £3m Northwich Odeon fit-out The £3 million fit-out of a state-of-the-art Odeon cinema in Northwich has been completed. The Cheshire multiplex boasts 707 seats, one of only five ISENSE screens in the UK and a 4K digital projector which delivers almost nine million pixels. GVA provided supply chain, purchase order management and quantity surveying services as part of its ongoing relationship with Odeon. The firm also recently finished the £2m refurbishment of an Odeon cinema in Kingston-upon-Thames, Surrey. Paul Chesworth, quantity surveying director at GVA Manchester, says: “The Northwich cinema is one of the cornerstones of Cheshire West and Chester Council’s (CWAC) £80m Barons Quay development. “At GVA we’ve been working on similar projects across the UK, recently bringing a new cinema to the Oldham town centre redevelopment and working in Bournemouth on a scheme due for completion in early 2017.” Steve Lavelle, group head of construction at Odeon, adds: “GVA is a valued partner on our developments. The recent two Odeon projects represent a continuation of a longstanding relationship with Paul and his team.”
The Odeon cinema in Northwich
Masonry firm completes hotel project Liverpool masonry firm Tony Ferry & Sons has completed its latest project at a new hotel in the city. The family-run company, which specialises in granite, marble and stone work, kitted out all 20 rooms with grey quartz kitchen work surfaces. The new apart hotel on Scotland Road, which is due to open in February, was a former picture house and has a movie theme running throughout. Mike Ferry, director at Tony Ferry & Sons, says: “The job at the old picture house went really well. “It was good to be a part of the redevelopment of another Liverpool building.” The firm, which is based at the Liver Industrial Estate, has also recently begun work on a new hotel in Cardiff alongside an apartment refurbishment project in Liverpool city centre. MOVE COMMERCIAL 35
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Christine Toner
Technology is playing a huge part in workplace design, helping to increase flexibility, minimise costs and incentivise staff, says Christine Toner.
Building technology How important are our surroundings when it comes to promoting productivity? It’s a question architects and developers are asking themselves frequently. The way in which we work has changed and so too must the place in which we work. And technology is a driving force in this. “The impact of mobile technology on workplace design has been huge and it is no longer necessary to have a standard fixed office design,” says Amanda Townley, office manager at K2 Architects. “The last few years has seen a trend for open plan office design with the option to use mobile devices such as tablets and laptops anywhere in the building. Integrated systems that allow presentations to be made on large screens controlled from mobile devices eliminate the need for endless wires and plugs. “Current collaborative working strategies demand office design that is simplified, flexible and adaptable to the presently unimaginable future of technology.” Indeed flexibility is one of the key focuses in current office design. The ability to accommodate staff with flexible or part-time working hours, encourage more independent 36 MOVE COMMERCIAL
working and boost performance is essential for businesses and is a primary concern for most employers. Many are calling on designers and developers to help their premises to cater to that. “In today’s modern world we are now valuing the relationship between office design and worker performance,” says Townley. “The main driver of this is staff wellbeing - long gone are the days when workers were tethered to their desks due to technology restrictions. We have seen a rise in inclusive office design for dedicated breakout areas, where staff can relax and socialise with colleagues.” Along with providing more creative and inspiring spaces for employees, technology is also being utilised for sustainability and cost efficiency. Stephen Fieldsend, associate director at Falconer Chester Hall, says smart buildings - buildings which integrate technology and energy systems - are making a huge leap into the future with office technologies. “With greater leaps forward into sensor technology and Building Maintenance Systems (BMS) this gives greater control to building managers to reduce individuals
changing thermostats,” he says. “PIRs (passive infrared sensors) for lighting allow [lights in] meeting rooms, WCs and changing facilities to be turned off when nobody is in the room.” Fieldsend says smart building technology and automation are making manual control of a building’s heating and cooling a thing of the past, and commercial real estate’s adoption of this technology is shaping the future of building management. “Building managers can utilise this technology to manage their lighting,” he says. “Automated systems can detect the vacant parts of a building and turn off lights in those rooms. “Likewise, these systems can make the same adjustments for temperature so that facilities managers aren’t wasting energy heating or cooling vacant parts of their buildings.” Offices tend to be designed to reduce the requirement for individual controls and adopt the BMS system option. Falconer Chester Hall has recently finished a commercial office smart building at Tower Wharf in Birkenhead. It includes sensors for all lighting within the building together with a fully installed BMS system
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In today’s modern world we are now valuing the relationship between office design and worker performance
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Technology in the workplace Focus At a glance... • How is technology being introduced in the workplace to benefit firms and their workforces?
• Are companies compromising employees’ rights by adopting more advanced workplace technology?
• How are businesses adapting to technological changes in offices and what does the future hold?
“ Photo: iStock.com/stnazkul
Businesses are increasingly coming to us for advice on tracking technology.
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Facial recognition is being utilised to check staff into the workplace and to monitor headcounts
which monitors power and heating usage throughout the year and can be changed through the varying seasons by the building manager. “People have different tolerances for hot and cold, but different sections of buildings have different temperature ranges depending on the design and orientation, sun exposure, shade and the heating, ventilation, and air conditioning (HVAC) system,” adds Fieldsend. “Even when the HVAC system is in tip top shape, maintaining consistent temperatures across the building remains a challenge.” Of course, technology can assist in cost saving and efficiency when it comes to staff numbers too. Dean Ward, co-owner and technical director of Wirral-based Evoke Creative, which designs and manufactures digital technology, says businesses are increasingly using technology to automate and streamline processes. “We were commissioned by Google in 2012 to design and manufacture digital kiosks to replace the company’s antiquated visitor book,” says Ward. “The current model can take a picture, print off a visitor pass, read barcodes on security cards and alert
staff that their guests have arrived. There’s now one in every Google office worldwide, handling upwards of 6,000 visitors a day. “We’re continually developing the technology behind our kiosks and we’re working with a Dublinheadquartered security firm, TDS, which is doing really interesting things with facial recognition and head-counting.” Ward says automatic check-in – whether by facial recognition or Bluetooth from an employee’s smartphone – eliminates the need to clock in or out and lets a system or user know not only how many people are in an office, but also which people. “This has important implications for employee safety – for instance during an evacuation for a fire or bomb threat,” adds Ward. “Sensors outside the building can be set up to ensure that all staff are safely out of the building and at the designated muster point.” And it’s not just offices that are benefiting from the safety aspects of such technological advancements. Indeed, any premises which receives high numbers of visitors could make use of this technology. “The technology is incredibly
popular on university campuses in the USA, where they are ever vigilant to the risk of violent incidents, but it will inevitably become commonplace in this country,” says Ward. Automated processes can also help to provide additional perks and benefits for employees - something which can be crucial when operating in a competitive market and vying for the top staff. “Remote PAs operating through Voice Over Internet Protocol (VOIP) via a digital kiosk are popping up more and more at the receptions of blue-chip companies,” says Ward. “It gives employees the chance to drop off dry cleaning, order flowers or a taxi, on walking into or leaving the office. It allows an employer to provide the kind of personal assistance to vast numbers of staff that would otherwise prove costly and unworkable.” However, such technologies are not always welcomed by staff. While much of the technological advancements being employed at present surround sustainability and cost saving, there are more ‘tracking’ focused technologies being developed which enable employers to monitor staff performance. Recording computer monitors,
tracking internet and phone use and even tracking location could become a standard feature in offices. Lee Jefcott, employment partner at Brabners, says this is raising questions about employee rights. “Businesses are increasingly coming to us for advice on tracking technology, asking what they can and can’t do, and what the consequences are,” says Jefcott. “In truth, it’s a balancing act. On one hand, people have a right to privacy and, on the other, businesses are entitled to know if employees are abusing their time at work.” Jefcott says if an employee believes they have been intruded upon, they are within their rights to raise a grievance against their employer. “They may even have grounds to sue for constructive dismissal if they can prove the employer’s implied duty of trust has been broken,” he adds. “Businesses need to be mindful that any information they collect falls under data protection laws. Ultimately it’s their responsibility to ensure any information is secure, gathered for reasonable and necessary aims and, most importantly, that employees are aware. Transparency is vital here.” Any innovations in technology can only benefit a business - and its employees - if employers are willing to embrace them. According to Townley, engagement with new technologies varies considerably. “We find that the baby boomers’ lack of adaptability is really becoming a competitive disadvantage as they don’t understand the way the modern world moves,” she says. “Generation X is resourceful and possesses natural entrepreneurial spirit so it is happy to move with the times. “Generation Y is a highly social generation that thrives on collaborating and is currently the main driver for technological advances within office design. “What really needs to be discussed is the needs of the next Generation Z - how the technology and culture of the future will influence office design.” MOVE COMMERCIAL 37
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Lawrence Saunders lawrence@movepublishing.co.uk
A multi-coloured truck driving through central London with ‘Dear start-ups, keep calm and move to Berlin’ emblazoned on the side signaled the start of a concerted effort to lure top UK tech businesses to the German capital. As the uncertainty surrounding the UK’s position outside of the European Union continues, Move Commercial examines how the North West can preserve the momentum of its growing industries and ward off potential competition from continental rivals.
Preserving Prosperity It’s safe to say the UK’s tech sector isn’t particularly enamored by the prospect of leaving the EU. Ahead of the referendum, a survey of almost 3,000 senior members of London’s tech scene found 87% opposed Brexit due to fears that it could make it considerably harder for British firms to reach customers and more difficult to find and employ essential talent from overseas. Following the vote, these fears have not gone away and now the UK’s dominance of the industry across Europe has come under threat with cities such as Berlin, Paris, Amsterdam and Dublin hoping to entice firms to relocate. Last November it was reported that just five London start-ups have decided to make the switch to Berlin, but a further 100 are now rumoured to be considering the move. Berlin Partner, one of the agencies actively courting UK start-ups, is offering a business immigration service as part of its relocation package which promises to procure visas and work permits for tech immigrants within just five days. Lower overheads, cheaper running costs and a rich talent pool are other carrots Berlin authorities have dangled in front of UK firms. Although London is undoubtedly the UK’s leading 40 MOVE COMMERCIAL
tech hub, the North West’s offer is growing all the time and its top companies could soon become subject to overtures from the continent. A Tech Nation 2016 report released last February by Tech City UK revealed Manchester has established itself as one of the top five tech clusters in the UK, boasting the second highest GVA growth and a digital workforce of over 50,000. “Berlin is making a really attractive proposition,” admits Katie Gallagher, managing director at Manchester Digital which represents more than 500 tech firms in the city. “They've got grants which cover half of wages in the first year for all new staff and a handful of companies have already moved there.” In spite of their impressive manpower, over half of the Manchester tech firms surveyed by Tech City UK cited a limited talent supply as the biggest obstacle to growth and with a possible end to the free movement of people on the horizon, the issue of accessing skilled labour has again come to the fore. And tech isn’t the only sector hoping to continue flourishing in the North West - the region continues to lead the country in manufacturing and is the vanguard of key growth sectors including science, health, energy and advanced manufacturing.
“Ensuring the North West has access to the best talent - from Europe and beyond - is key to the future growth and success of our growing industries,” says Anne Dornan, head of innovation at Manchester Science Partnerships (MSP), which is home to 300 health, science and technology businesses. Dornan says she is yet to see any other continental cities approach MSP customers and has in fact continued to witness a strong pipeline of enquiries for space in the region both nationally and internationally. Gallagher, however, is adamant more needs to be done to ward off potential foreign threats to the region’s tech prosperity and is calling on the public sector to step up its plans for securing growth and to put “some real investment” behind tech skills in the region. One growing North West company which isn’t currently considering a continental switch is Formbybased computer technology firm Extreme Low Energy (ELe), which manufactures low energy IT infrastructure for businesses and schools across Europe and, increasingly, the Commonwealth. “I can understand why certain businesses would move to Berlin but we’re a high-tech engineering outfit and I see the North West as a strong powerhouse for manufacturing,” says Mark
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Preserving North West growth sectors Focus At a glance... • How can the region retain top talent and growing firms once Britain has left the European Union?
• What other trade opportunities are viable for North West businesses outside of the EU?
iStock.com/peshkov
• Are North West growth sectors under threat from rival European cities following the Brexit vote?
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Ensuring the North West has access to the best talent - from Europe and beyond is key to the future growth and success of our growing industries.
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Buchannan, ELe co-founder and technical director. In December ELe was named one of the UK’s first Commonwealth Export Champions as part of the CommonwealthFirst programme. The initiative was established by the Commonwealth Enterprise and Investment Council (CWEIC) to encourage more SMEs to trade with Commonwealth nations. Although the nature of ELe’s product means dealing with emerging countries in the Commonwealth such as Nigeria makes sound financial sense, Buchannan believes more UK companies should seriously consider dealing outside of the EU – especially if the UK no longer has access to the single market. “The easy market to go after is the EU due to the language and the distance, but actually venturing a little further afield isn’t as scary as a lot of people make out. “Yes it's a longer plane journey, yes there’s a different mix of cultures and you need to approach it slightly differently than just going over to Paris; but done right it can be very fruitful for UK companies.” Buchannan’s view will no doubt please international trade secretary Liam Fox who has recently been encouraging UK businesses to seize more global export opportunities as we prepare to
exit the EU. The secretary was in Hong Kong in January to implore UK companies to do business with China through the former British colony after Brexit, stressing that the territory can provide a degree of familiarity in a less familiar market, next door to the world’s second largest economy. Although there are positive ways for the region’s boom industries to view the UK’s exit from the EU, Gallagher is adamant that if access to European talent is lost it is inevitable that more North West companies will relocate to the continent. “If the freedom of movement of people is stopped we will undeniably lose companies,” she says. “However we saw some of this tourism type activity with the eight Regional Development Agencies (RDAs) in the last decade and we are going to see companies moving because they find this kind of offer very attractive, but the question is whether or not it’s going to be the right environment for a lot of businesses. “My feeling is that we’re not going to see a mass exodus but we mustn’t sit on our laurels – we need to keep working hard to make sure the tech industry in the North West has a strong voice in the Brexit discussions.” MOVE COMMERCIAL 41
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Manchester Town Hall, Manchester
Adelphi House, Salford
Kicking off an annual four-day festival, the biggest skills conference in the North examines how the industry engages with education and what businesses need to do to recruit and retain digital talent. The Manchester Digital event is a chance for digital businesses to have a say on what education providers should be doing to develop the right talent for the region’s digital sector. Other topics of discussion will include the findings of the Manchester Skills Audit, the Workplace Equality Toolkit and the Apprentice Levy.
Leading tech experts will provide valuable insight on the latest developments in the Internet of Things (IoT) at this Salford Personal Development event. Attendees have the opportunity to learn how to harness and exploit the information revolution and solve the challenges new innovations will bring. A range of speakers have been lined up including Juan Mateos-Garcia, head of innovation mapping at NESTA, who will discuss whether the UK has the right skills to thrive in the Big Data era.
Microsoft Surface Studio From $2,999 (£2,438), Microsoft Store
Using a blog for your business with Dr Aleksej Heinze of Salford Business School
1) With a blog you have more control: You are not at the mercy of Facebook or Twitter which are constantly changing their offerings and ultimately ‘own’ your followers on those networks. With a blog you can offer email list subscriptions with full control and use of these for new business leads generation. 2) A hub for your social media activities: Your blog can be used as the centre for all your engagement on other social networks. Links to individual blog posts can be posted on most of your other networks. 44 MOVE COMMERCIAL
Boasting six unique events under one roof with more than 100 exhibitions and free seminars, IP EXPO Manchester is a one-stop shop for all things IT. The showcase will cover the topic of artificial intelligence and feature exclusive content alongside senior level insights from across the industry. The latest developments in IT will also be unveiled. Speakers include James Akrigg, head of technology for partners at Microsoft; and Detective Constable Paul J Taylor, an investigator working on the Greater Manchester Police (GMP) cyber crime team.
What’s New
Professional Pointers
One of the most popular activities online is the use of social media. Social media includes communications via external networks such as Facebook, LinkedIn and, most importantly for most businesses, through company blogs. Dr Aleksej Heinze, co-director of Salford Business School’s Centre for Digital Business, is one of 20 academic and industry authors behind the book ‘Digital and Media Marketing: A Results Driven Approach’. He shares five reasons for using a blog in your business:
Manchester Central, Manchester
3) Stable blogging platforms: WordPress allows you a blog installation on your website with good features for security and functionality management. For example, WordPress free plugins include integration with MailChimp for mailing list management and Yoast SEO for making your blog posts appealing to search engines. 4) Blogs help your website visibility in search engines: Search engines love original, in-depth and frequent content. Offer this content on your blog, and you can benefit the overall traffic to the website of your business. 5) Attract ‘Generation Y’ employees: The latest generation of employees - Generation Y - wants to know what your business offers beyond employment, and seeing the human side of your business through your blog increases their chances to learn what you offer. So, a blog can also help with attracting your future employees.
Microsoft’s Surface Studio promises to be the ultimate all-in-one PC, combining the latest internals with touchscreen and stylus smarts to ramp up your productivity. With the enterprise-centric Windows 10 Pro on board, this versatile machine means business but it’s also capable of transforming your desk into a design studio. The Surface Studio’s 28-inch PixelSense Display is equally comfortable in desktop mode running the latest version of Office or laid flat to double as a massive digital drawing canvas. This computing powerhouse recently began shipping in the US and is expected to arrive on these shores in early 2017, with the online Microsoft Store set to stock it ahead of the high street.
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Business lifestyle
How to… make the most of technology in the workplace Technology can help to boost productivity and employee morale. We’ve rounded up the best ways that businesses of any size can utilise modern advancements to benefit the workplace.
Cloud based sharing
Tried & Tested Business Lunch The Garden by LEAF FACT, Wood Street, L1 Review by Liam Deveney Within a creative technology hub at the heart of Liverpool city centre, we find a lunch venue offering mouth-watering treats for all palates. Having opened four years ago inside FACT (Foundation for Art and Creative Technology) on Wood Street, The Garden is from the successful team behind the ever popular LEAF on nearby Bold Street, and Oh Me Oh My on Water Street in the commercial district. With a varied menu, veggies, vegans and gluten-free visitors can enjoy a wide range of soups, sandwiches, salads and tapas dishes, with a few options for carnivores included on both the breakfast and lunch menus. Business savvy customers can combine their culinary enjoyment with a tasty 10% discount if they sign up for a FACT membership card too. On the day of our reservation, the appalling winter weather outside made food selection a formality as the soup of the day (tomato and roasted red pepper) and sandwich combo (£7.25) was the obvious choice to regain some lost warmth. I opted for a chorizo, roast veg and pesto sandwich served on warm focaccia, whilst my plus one plumped for tuna with lemon and black pepper mayo. The soup was lip-smackingly delicious and a timely antidote to the soaking we had just received. The high standard was maintained in the sandwiches, which were healthy, light and attractively presented, leaving us both sated and comfortable. As one would expect from the younger
sibling of LEAF, there is also a wide variety of loose teas available. My dining partner chose a ginger root tea (£2.20) whilst I opted for the traditional English breakfast (£2.15); both were piping hot (essential) and refreshing. Between courses, I tested the WiFi speed (no registration process - a novel bonus) and was pleasantly surprised by the strength and pace of the connection. There were no noticeable delays to sending and receiving emails or surfing the net, and numerous power sockets on the left-hand side of the café meant dying batteries received a much needed charge. There is also a wellbeing library area to the rear of the café, where meetings for small groups can be held in a “relaxing and welcoming environment where all are welcome”. Before heading back out into the driving rain, we rounded off a truly satisfying lunch with dessert: one white chocolate chip cookie (£1.50) and one toasted teacake with jam and butter (£2.50). As with the rest of our order, our sweets were delicious and left us looking forward to our next visit. Overall, we found no reason to fault this eatery which lives up to the standards of its stablemates. Whether you’re looking for somewhere to enjoy lunch with friends or an unstuffy venue in which to host a business meeting, you’ll be glad you opted for The Garden.
Cloud technology has transformed the way in which tech users save and share their documents, as well as permitting a more collaborative approach to managing work, removing workplace boundaries and facilitating the movement of information. Not only is it more dependable than saving files on an unreliable computer system at risk of crashing; physical documents are no longer strewn across the workplace and files can be accessed online regardless of location. Cloud based sharing also enhances worker mobility by enabling employees to work remotely, providing them with a healthy change of environment and increasing productivity.
Tech for relaxation Technology not only enhances the products and processes of the business but it can also be used to engage employees by providing comfortable working conditions. Some leading corporations have helped their employees de-stress during the day by providing them with on-site video gaming facilities. If your workspace is in need of more simple and easily accessible ways to unwind though, mindfulness and guided meditation apps could be the way forward. Studies have shown that mindfulness not only eases stress and tension but fosters creativity and innovation. Research also suggests that people are more receptive to original ideas after practicing meditation. Apps are available on iOS and Android with many free to download. Group sessions can also be a good way to get the whole team relaxing together.
Virtual reality Companies of all sizes want value and there’s value in leveraging virtual reality (VR) into the office. VR is surfacing in many areas of the workplace to improve a range of functions. Whilst the technology continues to evolve, firms are exploring VR and the steps they can take now to make the most of it. HR and sales departments of small and medium-sized enterprises are providing virtual walking tours of company headquarters and immersive demonstrations of their goods and services, whilst large organisations are also using the resource for more intensive training courses. Numerous studies have shown that VR offers a more effective and efficient approach to training than alternative methods, and considerable scope exists for the technology to expand its range of applications to help businesses measure individual performance and expand job training opportunities. MOVE COMMERCIAL 45
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Expert views Ask the panel In May both the Liverpool City Region and Greater Manchester will elect their first metro mayors as part of devolution agreements with the government. Winning candidates will make strategic decisions affecting the whole of the regions they represent, taking in the major cities of Liverpool and Manchester as well as multiple local authority areas in their surroundings. Ahead of the election, we ask a panel of North West experts:
Q: What should be top of the new leaders’ priority lists when they take up the posts? I’d like to see these new leaders collaborating with their local business communities and investing in skills, where needed, to provide economic certainty. They need to work closely with their local property sectors to improve housing choice, and better transport connectivity also needs to be prioritised. RICS has long called on the government to share infrastructure funding on a more equitable basis, and welcomes plans to provide a high speed rail link between Salford and Liverpool. But more is needed to provide both of these cities with much better connectivity and allow local businesses to compete on a level playing field. Both the Liverpool City Region and Greater Manchester have a huge opportunity to fulfil their potential of helping the wider economy of the North grow and ultimately the Northern Powerhouse prosper. So these new metro mayors must get their priority lists right. Matthew Fedigan, director, Domec Professional Services Ltd and chair of RICS North West Regional Board
The newly elected mayors will have a lot to consider, but I think addressing housing, and in particular affordable housing, needs to come top of their list. Other priorities should include integrating health and social care systems and working with colleges, further education and businesses to meet the skills gap and get the
youth into work. Improving transport is absolutely key and they should prioritise integrating public transport networks with an Oyster-type card and look at a strategic plan for the delivery of safer cycling routes and facilities. Also crucial in Greater Manchester is getting the GM Spatial Framework right, which will set out the spatial and planning approach for the next 20 years.
Both metro mayors should combine the strengths of their respective cities to have a strong and united voice in Westminster. They should use this devolution of power from the South to narrow the north-south divide and keep the Northern Powerhouse at the forefront of the political agenda. Their priorities should include the continued improvement of the North West’s infrastructure, linking Liverpool, Manchester,
Leeds, Bradford and Sheffield as agglomeration has shown that bigger conurbations attract clusters of businesses. This, in turn, should put the focus on increased transport investment, improving skills within the labour force and the creation of new housing and improved healthcare services. Additionally, priority should be given to maintaining the excellent higher education facilities and promoting on a global scale Manchester’s capacity to be the home of bio medical research and innovation.
The two biggest issues are improved connectivity across the North West and a collaborative and complimentary approach to economic growth. Improved public transport, between prime business centres in the region to the two major cities (with a maximum journey time of 40 minutes), should be the target. This would bring sustainability, vibrancy and wealth to our smaller dormitory and coastal towns and reduce housing pressure in already overcrowded city centres. A complimentary rather than competitive
focus on economic growth should be encouraged. The Liverpool City Region should develop international commerce by promoting the Liverpool2 deep water container terminal; the thriving manufacturing base, logistics, high tech and bio medical industries offer growth potential adding to an existing and successful conference and tourism offer. Manchester has established itself as the northern financial and business services, technology and media hub. Both metro mayors must address the domestic perception of a provincial skills gap which does not exist.
Mike Horner, regional director, Muse Developments
John Ogden, managing director, CBRE North West
Chris Weights, partner and head of valuation, Matthews & Goodman
The context of continuing cuts is key in answering this question for the Liverpool City Region. Sefton Council must save more than £60 million over the next three years, Liverpool £90m, so the incoming metro mayor will need to be clear on how she or he fits into the continuing squeeze. Economically, the metro mayor’s short-term priority could be the smooth, growthled delivery of the devolution deal and other funds under the new Single Investment Fund. 2017 is likely to be bumpy, so public funding is critical in maintaining the property market’s recovery. The metro mayor can quickly capitalise on this important platform. From this comes the need to eliminate the city region’s long-term market failures, like in central office rents and low labour market participation. The metro mayor should adopt and enforce a longterm vision, recycling public monies and connecting across the North to argue for more investment and more local input. Mark Bousfield, investment manager, Igloo Regeneration
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