Property Advantage West Midlands Issue 20

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

West Midlands

property advantage – your guide to regional development & regeneration

Public Sector will remain the driving force.

Stuart Kirkwood Director for Development Advantage West Midlands

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Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Contents

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inside advantage From the Team

Dear Readers, We’ve been beavering away this Summer, moving things on. It will not escape the notice of our regular readers that we have made a significant change to the design of this magazine – your magazine. I hope you like them. As with any change, we hope it reflects our confidence and abilities in bringing you the very latest property news, views and profiles from the region in a fresh and appealing manner.

You can also expect continued development as we get ready to launch our new website - www. propertyadvantage.info and regular e-newsletters as we continue on our journey.

Another work-in-progress, the site is a complement, a companion, to the magazine, where you can find a range of interesting content, links, archived articles and press material as we continue to develop the site. . You can obtain details on how to subscribe there too.

Stuart Walters Publisher, Property Advantage

It has also been good to hear positive feedback concerning the merit of our intent to feature both public and private sector activity, and to recognise that there is life outside Birmingham.

However, the major talkingpoint as we head into autumn, especially for those in the regeneration sector, is most definitely about Birmingham.

The city council is on the cusp of identifying - and hopefully, swiftly recruiting - a successor to Clive Dutton, who leaves shortly to ensure an Olympian legacy for the London borough of Newham.

Conflicting schools of architectural thinking regularly dominate regeneration debates, in Birmingham, as elsewhere in the UK. The ’glass, steel and skyscraper’ brigade would flatten anything not built in the 21st century, 2000, whilst their opponents, usually led by Prince Charles, deem anything new to be a carbuncle on the landscape.

As Joel Kordan stresses in his Point of View column inside this issue, Dutton’s achievements were underpinned by his recognition that old and new can blend harmoniously, and it is critical that his successor shares that view.

Yours, Ian Halstead Editor, Property Advantage

Front cover image: The newly-opened City College, Coventry.

Inside 04

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News.

– Birmingham Library: Rep looking for new home – Evenacre Boutique feel to Colmore Row Business vs Science Parks.

– Belief in the Sector – New Strategy for growth – Public Sector the driving force Coventry & Warwicks.

– Regional Agenda Birmingham Airport.

– New International Pier Black Country.

– New Strategy – Urban Renaissance Online Property Maps.

– Public Sector meets Private Sector Point of View.

– Fears for the retail sector – Political Support needed

Property Advantage is conceived, designed & produced for you by: Open Box Publishing Limited 32–35 Hall Street Birmingham B18 6BS +44 (0) 121 608 2300 www.openboxpublishing.co.uk Directors.

Stuart Walters stuart.walters@openboxpublishing.co.uk Samantha Skiller sam.skiller@openboxpublishing.co.uk Design & Art Direction. lee.murphy@openboxpublishing.co.uk Editor.

Ian Halstead halsteadian@aol.com The Publishers wish to emphasise that the opinions expressed in propertyadvantage are not representative of Open Box Publishing Limited and accept no responsibility for the views expressed by our contributors.”

Property Advantage West Midlands

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News

REP looking for new homes as library gets a stage closer

Birmingham’s grand new library will finally begin to take shape in September; at least in the colourful world of graphic design.

Mecanoo submitted revised proposals in August, revealing that one storey had been trimmed from the original proposals, reducing the scheme’s skyline impact on its much smaller neighbours; Baskerville House and the REP. The intended 330,000 sq ft of space will still be met, by putting two floors underground, leaving eight above. The planning application also showed that the relationship between the library and Centenary Square had been remodelled, as had the intended amphitheatre.

The changes were more than moving deck-chairs on an ocean liner, but certainly weren’t the ‘significant revisions’ trumpeted by one architectural magazine.

The application indicated that public terraces on the third and seventh floors will provide outdoor green space, whilst a ‘brown roof’ will provide a natural habitat for the city’s more adventurous wildlife.

The library will also include graywater harvesting, ultrasophisticated energy and lighting management systems, and be connected to the CHP plant which the council’s energy partner, Utilicom, operates inside the nearby ICC. The latter news was interesting, but hardly unexpected, given both Mecanoo’s focus on sustainability - demonstrated so spectacularly by its recent

proposals for Rotterdam’s new City Hall - and its previously stated desire to achieve a BREEAM ’excellent’ rating.

The really eye-catching stuff is due in September, when the Dutch project team will unveil what the architectural world refers to as ’Stage D’ proposals; one of the categories created

by RIBA to make the design process simpler for the wider world to understand.

All the external materials will be revealed, the previous monochrome line drawings will be replaced by ones in full colour, along with 3D visualisations, and details about the proposed interior.

For the first time, it will be possible to get a genuine feel of how the library will operate, and how its giant escalators will sit within the eight above-

ground storeys.

The release of such detail will be of special interest to all at the REP, which will be integrated into the library, via links at street level and on the first floor, and share a foyer, bars, restaurants, and a 300-seat theatre with its new neighbour.

Executive director Stuart Rogers is already planning for 2011 and 2012, when the REP will have to find new venues around Birmingham for its productions, as site work gets underway, which certainly gives a new meaning to the concept of a ‘touring’ theatre company.

He finds great favour with Mecanoo’s architectural vision.

“I really like the design, especially on the inside, because I’ve had a sneak preview of what it will look like. The public balconies are an excellent idea,

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and I think the metal filigree is a lovely touch,” admits Stuart.

He arranged a meeting between the Dutch practice’s founding director - and creative muse - Francine Houben, and the REP’s architect, Graham Winteringham, earlier this year.

“Graham is always sympathetic to change, and certainly welcomes the library.

For years, his theatre sat in splendid isolation until the ICC came along, and he is particularly pleased Francine wants to restore the front of the REP, and remove that ridiculous spiral staircase,” says Stuart.

“It will be great to have ourselves and the library working together, the 300-seat theatre will be a tremendous addition,

and the REP will look so much better from the outside. ”Inside, people will be able to walk seamlessly from one building to the other, so we’ll look to really animate the foyer, and one of the best aspects is that we are largely complementary, so the library will be busy during the day, and most of our customers will be here in the evening.”

And where might the REP pop up during its two years of absence?

“We won’t be using existing theatre venues, so we might hire a new building, or an empty block, or even a marquee on a construction site,” says Stuart.

“We will do only five or six productions a year, rather than the usual twelve to fifteen, but we do want venues which we can use in both 2011 and 2012.”

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News

Evanacre brings boutique feel to Colmore Row

Former Maximus MD Paul Jones (pictured) reckons recession is just the time for a start-up property business, and his Evanacre investment vehicle has certainly begun life in impressive fashion.

In June, the venture paid £1.5 million to acquire Victoria House, on Birmingham’s prime office pitch of Colmore Row, and a £250,000 refurb will bring the new space on stream around the year-end.

September saw Evanacre’s second deal, when it snapped up a multi-let industrial estate, of around 65,000 sq ft, in Worcester’s Cosgrove Close.

Judged by location or sector, the properties are far apart, but they chime perfectly with Paul’s desire to accumulate a range of assets, to offer income and capital growth, for his high net-worth clients.

“They are people who know the property sector, but don’t want to be hands-on. Equally, they don’t want to put their money into (say) a single-let retail investment, but want to spread their risk,” he says.

“Why buy a TescoExpress for £1m, and get a return of

5%, when you could pool your resources and buy a shopping centre, which would give you 7%? ”If someone has £1 million to invest, it makes more sense to divide the money among several assets, perhaps a multilet industrial estate, an office block and something in retail.”

Paul, who left Maximus in early 2009, now drives the investment strategy for two partnerships, and a syndicated equity group. “I haven’t quite found the right product for the third group, but the Colmore Row property has gone to one partnership, and Worcester has gone to another,” he says.

The former may have a Grade A location, but its space certainly isn’t, and the four-storey block has been virtually gutted.

“We’ve given the façade, which is listed, a facelift. Inside, we’re putting in new lifts, toilets, air-con and carpets, to create

office space with a boutique feel,” says Paul.

“There are quite a lot of small office suites available on Colmore Road, Bennetts Hill and Waterloo Street, but when you inspect them, the quality isn’t up to much.

“We will be offering a product to attract people coming out of serviced accommodation, who want more of an ’own front door’ feel. Rents will be in the early £20s, which we are confident people will find appealing.”

The Worcester estate is fullylet, and has been acquired to generate income for its partnership, and create a surplus for future Evanacre investments.

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“We’re always looking to acquire properties of institutional quality; so we have an exit route, and to enable us to get the bank funding for the initial deal,” says Paul.

We’ll then set up a special purpose vehicle to house the assets, manage them actively, repackage them, and then sell them to the institutions between three to five years later,” says Paul.

“The Worcester estate has a yield of 13%, so it is a pure cash driver. Now we are looking for a Colmore Row-type deal for that partnership, and another Worcester-type deal for the Colmore Row partnership.”

Droitwich-based Evanacre, who used GBR and Franck-Steier Price for the Victoria House acquisition, also has a portfolio of industrial and office assets, which Paul brought with him, when leaving Maximus.

“It has stock worth between £10 million and £12 million, and was always intended to be a separate arm, so we’ll be looking to exploit investment opportunities from the existing assets, and to explore the possibility of developments,” he says.

“There are some decent properties available at value prices at the moment, and unlike the institutions, we pride ourselves on knowing how to manage our tenants, and our physical assets.”

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Advertisement Feature: Birmingham Research Park

Open the door to innovation

Pat Marshall (Birmingham Research Park Manager) explains, “Being located in the right place with the right support and access to the right people is one of the keys to business success. At Birmingham Research Park we pride ourselves on ensuring that we nurture our businesses to grow and succeed.”

One such success has been The InnovationXchange (IXC UK Ltd) a University of Birmingham spin-out which is pioneering the practice and concept of “open innovation”. Mike Hield (Chief Executive) explains “Imagine a world-wide, secure, managed environment for the exchange of insights, ideas and opportunities between companies, universities

and research institutes. Well, we make that world a reality. We act as a commercially neutral, trusted intermediary service, ensuring that you are discreetly connected to the organisations, technology and collaborative opportunities you need to drive your business forward - without compromising your intellectual property”.

Now the UK’s leading practitioner of open innovation, IXC UK’s client base has grown rapidly in the last 12 months alone and includes some impressive names – Jaguar Cars Limited, Land Rover, Crown Packaging UK PLC and Geotechnical Instruments UK Ltd. The company is proving that the approach can add real and profitable growth to businesses large and small.

Ranging in size and complexity, the connections also vary in value ranging from simple, business improvements worth

tens of thousands to several likely to generate new business and product developments with potential values in excess of £50 million each. Last year the company delivered more than 180 innovative connections to its business and university clients of which the combined value is forecast to be worth in excess of £200 million.

Mike Hield (pictured) points out the importance of being located in the right place, “Being a spin out business from the University, we seem to have found the ideal combination of a location close to the University, enabling our continued links

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with previous colleagues, and the flexibility of operating within our own commercial premises. The Research Park provides us with the right commercial status/venue which would have been difficult to achieve at similar costs elsewhere for a new small business.

Our prime activities are in developing innovation connections with new and emerging technologies and so being located amongst these sorts of businesses on the Park has helped our growth. The access to excellent public transport and good parking facilities have been important factors in employee satisfaction and we have also benefitted from the extra support services available through the Research Park, such as good meeting and conference facilities on-site, security and general business support. All-in-all it has been a very good first move for us as an embryonic business” As an innovative business looking to “open the door” to your own success Birmingham Research Park could be your ideal location. As Pat Marshall points out, “Unusually for us we currently have a limited amount of space available so don’t miss the opportunity to benefit from our facilities and great location”.

Contact Mrs Pat Marshall: BRPL-Marshall@bham.ac.uk

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Business v’s Science

Grimley’s Potter still believes in the sector

Even before the recession, life was tough for business parks, as they struggled to adapt to the post-9/11 mindset, where the world’s major technology firms often preferred to stay at home.

Last year saw record takeup rate for such space in city centre locations though, so does that mean their strategic model is back on course?

GVA Grimley’s Carl Potter (pictured) still believes in the sector, perhaps not surprisingly given his role as his firm’s Birmingham-based national head of business parks, but admits that the sector still faces demanding times.

“They are struggling this year, but only as much as other sectors, so that isn’t of major concern at the moment. The out-of-town market has been down since March 2007 though, and indeed, since the global technology market crashed after the Twin Towers,” he says.

“However, I certainly don’t believe that the sector is dead, or that business parks have had their time. One of their greatest attractions is that you can pick up land, get your scheme through planning, and get it built in something like 12 to 18 months.

“You certainly couldn’t do that outside the environment of a business park, so they remain a very easy way to respond to market conditions.”

Carl is equally convinced that potential out-of-town occupiers still appreciate the ability to take on new and efficient space, offering easy access to labour, and with motorway junctions close at hand.

“You will always get a different kind of tenant to an urban business park. At the moment, we are dealing with several large corporates, who want to move from older and inefficient buildings, and co-locate in a single new building out-of-town,” he says.

“Viola Environmental’s requirement is typical. It is looking to put together two offices in the Midlands, and then to bring in people and services from elsewhere in the UK, and it needs 40,000 sq ft of space.

“However, although demand is there, there is almost no speculative space being built, which is understandable. Just under 230,000 sq ft is under construction in the region; 136,000 sq ft of which has been pre-let to Ericsson at Ansty, and most of the rest is BAM’s office scheme at junction four of the M42.”

Carl says the cost of prime business park space is running between 10-20% down on last year, at headline rents of around £21 per sq ft, plus incentives, with secondary space down by an ever greater margin.

However, his major concern is for the region’s science parks, following AWM’s inability to fund many desired projects, because its own funding has been dramatically cut.

“If you look at the history of such parks in the region, the RDA has been linked intrinsically with all of them, either directly, or alongside ERDF funding,” says Carl.

“The private sector can’t take such developments on, because values are so much lower than 30 months ago.

It wasn’t easy filling science parks when the economy was buoyant, and - unlike business parks - they have never been developed to make a profit, their remit is to give companies somewhere to live, to evolve and grow.”

“It isn’t just the ones which have lost support, such as Pebble Mill, and the Heartlands Medipark. Without AWM’s strategic input, the very future of science parks in the West Midlands, and their continued evolution, has to be revisited, and it’s an issue which needs serious debate in the short-term.”

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Advertisement Feature: BAM Properties

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BREEAM ‘Excellent’ office space, right on the M42

Developed by BAM Properties, FORE provides Grade A office space in a highly visible and accessible location. Located at Junction 4 of the M42, it also benefits from easy access to the motorway network. Birmingham International railway station and airport are only ten minutes away, which makes for easy national and international access. There are also excellent parking facilities.

Phase 1 consists of two buildings, with FORE 1 comprising approx 25,652 sq ft (2,383sqm) over three floors and FORE 2 approx 40,343 sq ft (3,748sqm) over four floors. Each of these can be let as whole buildings or on a floor-by-floor basis.

The specification of both buildings is outstanding. Along with their BREEAM ‘Excellent’ rating, they also have an EPC rating of Band ‘B’. Car parking is ample, with a ratio of 1 space per 238 sq ft and there is also on-site cycle parking.

Both of the Phase 1 buildings have impressive entrance foyers, each with a full-height atrium that gives a real sense of space and light. They benefit from 4 pipe fan coil air conditioning and state-of-the-art building management systems, which create a comfortable and energy-efficient environment for occupants. There are also a number of additional energy efficiency features, which work together to deliver considerable savings on running costs.

Alastair McChesney, Development Director with BAM Properties says: ‘FORE provides an attractive working environment for its occupants, with a newly landscaped 17-acre country park right on the doorstep.

‘There are also excellent shopping and leisure amenities within a few minutes’ walking distance. All of these features combine to create a location that lends itself to a productive and efficient business headquarters It has a ready supply of skilled staff and a large potential customer base, which provides the right demographics and environment for any business to flourish

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Business v’s Science

Hardman takes new brand back to its roots

Aston Science Park has been given a new name, and a new strategy to revitalise its fortunes. Managing director, David Hardman, talked to Ian Halstead about what lies ahead.

It has become fashionable during these fraught economic times to talk of a ‘back to basics’ approach, and although Dr Hardman is too literate to use the phrase, it does highlight his greatest challenge.

Aston Science Park may once have been an exemplar in providing quality space for fledgling hi-tech ventures, often spun out of its neighbouring university, but it lost its way in recent years, becoming little more than 22 acres of expensive real estate.

Now, as Birmingham Science Park Aston, it must once more become a home for the most innovative and entrepreneurial young scientists the region’s academic institutions can provider.

Formed by the city council, Aston University and Lloyds TSB, it is now owned solely by the former, and council leader Mike Whitby - who chairs the rebranded venture - is confident of its renaissance.

“A successful science park can add to a city in numerous ways; by supporting creativity and innovation, and generating employment. We are lucky to have a park with such a history, and I am confident that as Birmingham Science Park Aston, it will have a bright future.”

David, who arrived as chief executive officer, before becoming MD in February, has

an interesting tale to tell about the new name.

“With all due respect to Aston, and the Villa, it really wasn’t a name which meant much outside the city. You’d be talking to someone in Germany, and they’d be genuinely surprised to discover that Aston was in Birmingham,” he admits.

“There was also a problem in even talking to other universities,

as Aston was one of our co-founders. It showed how competitive the university sector was, so we thought it time to change the brand. Life will be much easier now everyone knows we are 100% owned by the city council.”

David readily concedes that the time is also right to return to the original strategic focus.

“In recent years, the park had been more about real estate, and the tenants were a mix of tech and non-tech, which was no good. Now, we want to attract high-calibre start-ups and early-stage ventures, in such sectors as ICT and digital media,” he says.

“We want people who are innovators and creators, and we’re especially keen to bring in spin-offs from local universities, because increasing the graduate retention rate is a critical issue for Birmingham

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and the West Midlands. ”I see myself as a knowledge broker, and I want the park to act as a suction pump, lifting ideas from across the region, and helping to create successful ventures, and the employment and wealthgenerators of the future.”

Reassuringly, David reports that the shake-up is already generating interest from technology companies, and looks to Nottingham’s Science City as proof that such schemes can still thrive, given the right strategy and support.

“We can’t compete, and wouldn’t wish to, with the glass and steel space available elsewhere in the city, but we do have less tangible merits, such as the support we can offer, and the chance for start-ups to prosper among their peers working in other advanced continued over...

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technologies,” he says.

Not that he underestimates the hurdles to be overcome.

“There hasn’t been a massive amount of inward investment here, it’s been more about churn, so we do need new buildings, and new tenants, and we also must improve the quality of the existing space,“ admits David (pictured).

“I am not content with the current stock, and to honest, some buildings are not fit for purpose, and will need serious refurbishment. Even the size of the units isn’t right. Technology firms tend not to employ many people, and so we need space which is much more flexible.“

It seems the previous management hadn’t even signed up with Bridge to Growth; funded by Advantage West Midlands, and UK Trade & Investment, to persuade hi-tech European companies to establish subsidiaries in this country.

“I am told that in recent years, eighteen inward investment projects went to Warwick through that programme, but of course none came to Aston,” says David.

“Even in the short time since we joined though, two companies have agreed to come here, and I would hope to attract many more. We‘re also building bridges with RDAs outside the region, because I hope we can soon have an impact significantly beyond our geographical location”

Business v’s Science

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Property Advantage West Midlands

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Business v’s Science

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Public sector will remain the driving force

The public sector has driven the creation and subsequent expansion of this region’s science parks, not least because the unusual nature of their business model can cause concerns for private sector developers.

“The firms which such locations need to attract is absolutely critical to the future of the regional economy.

They must be innovative, have appreciable growth potential and above all, be capable of adding knowledge and value,” says Stuart Kirkwood (pictured), AWM’s director of development.

“Developers who look at this sector are often concerned about the potential viability of building space on existing sites, or bringing forward new schemes, because there would inevitably be restrictions placed on the kind of tenant which they would be allowed to target. ”Even in buoyant economic times, that would place an extra burden upon the developer’s business model, and when markets are in a steep downturn, it would be all-but impossible for them to take on such a scheme.”

AWM has been at the forefront of science park development throughout the region, often via partnering arrangements with universities, or other academic and research institutions.

“The requirement to deliver new, and genuine, science park accommodation remains both valid, and very important, whether now, or in the medium, or the long-term,” says Kirkwood. ”At the moment, public sector funding restrictions may not allow such space to be brought forward as would be desired, but the business model for such parks is still absolutely sound.

“I wouldn’t claim that all companies with a strong scientific or technological base to their operations should automatically establish themselves on science parks, but I certainly believe that in most cases, such an environment will be best suited to their needs.

“The benefits of co-location, of being able to share ideas with their peers in a collaborative way, and of being in a creative and innovative atmosphere, are evident.”

Kirkwood is convinced that support from such institutions as the universities of Warwick, Coventry, Wolverhampton, Birmingham, Keele and Aston, and the Warwick Manufacturing Group, will be equally critical to the future prosperity of the region’s science parks.

“All of the science park accommodation here has been delivered by the public sector, in one way or another, either directly, or through a joint venture with a developer,” he says.

“I know that our universities are as eager as ever to turn their ideas into commercial opportunities, and as we start to come out of recession, I am sure they will continue to focus on bringing forward modern, flexible and energy-efficient space in which such ventures can be based.”

However, although some observers claim to identify ‘green shoots’, as the equity markets continue their upturn, Kirkwood isn’t convinced that recovery is coming to the property sector, in the West Midlands or elsewhere.

“There are some positive signs. A year ago, no-one was talking of pre-lets, but in the last six months, there has been some activity as funding has become more readily available,” he says.

“However, it is coming from a very low starting point, and there is still no sign that developers are yet willing to consider bringing forward the speculative space, which will be vital to attract new companies to the region, and to allow others to relocate.

“Even if a developer was brave enough to consider a spec scheme, the funding simply wouldn’t be available. Without a pipeline of such space though, there can be no genuine recovery, so I fear that we will see more casualties in the sector, before things improve.”

Kirkwood, who can recall the recession at the end of the 1970s, concedes that one issue handicapping the return to growth is the property industry’s inability to learn from its mistakes of the past.

“I’m afraid to say that people just don’t learn. Property has always been a sector that when the times are good, becomes wildly over-optimistic, and then becomes deeply pessimistic when the going gets tough,” he admits.

“Prices were so steamy before the crash, and loan-tovalue ratios had reached a level which was probably imprudent, but people seemed to think the boom would last for ever. Now everyone needs to recover their confidence, before activity can really pick up.”

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Advertisement Feature: SEGRO

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SEGRO’s continued growth in the Midlands

SEGRO is Europe’s leading provider of flexible business space, with a property portfolio covering offices, light industrial, logistics, warehouses and datacentre properties.

Headquartered in the UK, the company operates in 10 countries worldwide with a customer base of over 1,700 representing business both large and small.

Consistent world-class delivery is at the foreground of the SEGRO offering, where their specialist expertise ensures that the process of selecting the right business accommodation is a smooth one. The understanding that the decision to move business accommodation can make all the difference to businesses and their people ensures that client’s needs are always met.

With a dedicated Midlands team based on site at Kings Norton Business Centre, SEGRO can offer specialist local knowledge combined with multinational expertise. Kings Norton Business Centre and Meteor Park are two of SEGRO’s major developments in the Midlands area, both of which are ideally located close to the centre of Birmingham.

Kings Norton Business Centre (KNBC) is one of the largest industrial estates in the UK, offering a first class business and working environment with the added benefit of an on-site SEGRO regional office enhancing the service on offer. With a range of accommodation available, KNBC is the ideal location with all major transport links close by. The south Birmingham

development benefits from SEGRO’s flexible approach with a choice of sizes and styles of warehouse/industrial unit and offices, complimented by a flexible approach to client needs and the leasing package.

The existing choice of units available at KNBC in a number of sizes offers the flexibility to meet most needs. However the options do not end there, with the option to create a bespoke building, matching requirement with delivery. SEGRO is renowned for the quality of its design and build units, and at KNBC the prominent site benefits from fast-track planning permission for specific industrial, warehouse and office development.

Meteor Park, based in the Aston area of Birmingham with direct access to Junction 6 of the M6, is a new development

of industrial and warehouse units ranging from 37,042 sq ft to 115,067 sq ft with some availability remaining. The location speaks for itself, with around one third of the cities businesses based in the district offering the ideal base for access to the region’s businesses.

Jane Leedham, senior surveyor at SEGRO said, “The Midlands continues to be a core market for SEGRO and we have a long term strategy in place to ensure that we continue to develop this market. It is an incredibly important region for us where we can offer quality developments to businesses of all sizes in the area.”

For further information please contact: Jane Leedham T: 01753 213124 E: jane.leedham@segro.com

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Advertisement Feature: Coventry City Council

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Clicking for Commercial Coventry

A new on-line commercial property search facility has been launched by Coventry City Council.

The new search facility is available through the Council’s website making searching for business property in the city quicker and easier than ever before.

The simple to navigate site means just clicking on www.coventry.gov.uk/ businesspropertyonline and ticking some boxes about the type of property you are looking for, the size, and tenure, will create a list of suitable properties for you.

You can then shortlist the ones you prefer, look at them in more detail and plot them on a map. This is a great addition to the service as certain areas in Coventry offer specialist support and assistance to businesses when locating there.

The business property database holds details of over 400 offices, retail units and industrial space for people looking to move their business to Coventry. And it can be accessed by anyone, with or without a member’s log in.

The other benefit of the new on-line service is that

Fast facts about Coventry business property on-line 1. More than 400 properties to choose from 2. Quick search options by leasehold or freehold 3. Easy map view plotting available properties across the city 4. Automatic updates sent to registered members as new properties, fitting their requirements, are added to the database.

5. No need to create a login

the database is always being updated so you can be sure that you are looking at the most up-to-date properties available.

What’s more, registered members can be emailed as and when new properties are added to the database – saving even more time.

So next time you log on, check what business property is available in the city on www.coventry.gov. uk/businesspropertyonline or contact rachel.baker@coventry. gov.uk or call the Investment and Business team on 024 7683 1234/1368.

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Coventry & Warwicks

Regional agenda is the focus as city council plans for 2010

John McGuigan has long been one of Coventry’s most articulate and passionate advocates, so it’s no surprise that the city council is about to create a new post for him, as director of strategic planning and partnerships.

The imposing title underscores the local authority’s belief that setting a new agenda, for the CoventryWarwickshire sub-region, is critical to its economic prospects.

Instead of waiting for the new government to come to power in 2010, the council is determined to decide its strategic priorities well in advance.

“Whether the government is refreshed, or changed, we will get our act together, and tell them what we want. We won’t wait for them to tell us what they think we need, we‘ll have our manifesto ready,” says John.

“When Labour realised several years ago, that its regional assemblies weren’t working as it hoped, it decided it needed leaders in each region, to discuss, agree and then drive forward change.

“A West Midlands Regional Leadership Board was established, including all 33 local authority leaders, to decide what the region needed, and how best to achieve those goals.”

The board has subsequently been working with a plethora of public sector bodies, including AWM, the Government Office and the Homes & Communities Agency, to identify key strategic schemes and themes.

Twenty have been selected,

and six are in Coventry or Warwickshire; including the need for new rural housing projects, the continued development of Ansty, and the establishment of closer ties between the sub-region and North Solihull, especially on a new cross-boundary waste disposal strategy.

“We have identified the issues and projects which will create the most jobs, and have the most impact on our Gross Value Added total, which is essentially how much the population contributes to the regional economy,” says John.

“The difference between this region’s GVA and the

national figure is now about £15 billion, so it is vital that we finally begin to narrow that gap, which has continued to widen over the last decade.”

John also believes that Coventry’s time to become the sub-region’s driving force is now, as recession bites harder into other provincial centres.

“We’ve probably spent 25 years turning our economy round, and now we are set for growth. Unemployment may be up here, but nothing like in other cities, and we are still

15 36

seeing lots of inward investment inquiries,” he says.

“We’ve got a regeneration pipeline of schemes worth about £9.4 billion, and only £2.5 billion has been spent in the first five or six years. The recent census figures showed the population was almost 310,000, and forecasts see that rising to between 360,000 and 370,000 in the medium-term.”

Like the council’s new chief executive, Martin Reeves, John is confident that Coventry is on the cusp of becoming a major international location for research and development activities.

“Ericsson’s new R&D centre for the UK is now open at Ansty, and we are still hopeful that Tata will bring the European R&D operations for all its seven divisions there as well,” he says.

“We also see Ansty as the new home for a different type of research centre, identifying new ways of welding and fabricating the latest metals, and of course, Jaguar’s R&D centre has stayed at its Whitley site.”

John is equally bullish about the prospects for Jaguar’s historic production site at Brown’s Lane, which spans almost 90 acres.

“Goodman bought the entire complex, planning to develop it, but of course economic conditions changed.

However, AWM bought around 23 acres from them for £9 million, and that money is now going continued over...

Property Advantage West Midlands

into improving infrastructure for the site,” he says.

“We are dealing with several potential occupiers for the land, who are all eager to take up space in the short-term. Again, the uses will most likely be R&D, and quite probably in the automotive sector. ”Some places are still moaning about the decline of motor manufacturing, but we have a more positive mindset, and see Coventry becoming a centre for research into lowcarbon technology for vehicles, in which Jaguar Land Rover has already become a pioneer.”

Coventry’s final major strategic development site is New Century Park, the 70-acre former home of Marconi, which was then occupied by the Marconi spin-off, Telent - before it moved to Warwick in early 2007 - and was also purchased

by Goodman.

“The redundant buildings are being flattened at the moment, so the land will be ready for development as the country comes out of recession,” says John (pictured, top).

“By the first half of 2010, Coventry will have roughly 400 acres of very high-quality employment land available, for inward investment schemes, or for relocations by local, regional or national organisations.“ John McGuigan may be enthusiastic about the prospects for Coventry and Warwickshire, from the perspective of the public sector, but Peter Deeley, (pictured, right) managing director of the city’s best-known property developers, is no less so.

Deeley’s operations include construction, homes, commercial property, and joint venture partnerships, so he’s well-placed to judge the area’s prospects from a private sector viewpoint.

“Everything we do is regeneration in one form or another, so it’s reassuring to witness the strength of business

Issue 20 www.propertyadvantage.info

and commerce in Coventry, despite the downturn,” says Peter.

“We do still have vacant land, such as the old Peugeot site at Ryton, but that is no surprise, given the current market conditions. However, Coventry does not have many empty buildings, so there is no over-supply of space, to hold back future development.”

Peter also believes the presence of the established and high-profile universities of Warwick and Coventry will be a major influence in the subregion’s recovery from recession.

“They are large employers in themselves, but more importantly, have a very entrepreneurial mindset, as does Warwick Manufacturing Group. We look to these three institutions for ideas about what the future might hold,” he says.

“Like every area involved in automotive manufacturing, we have suffered, but we are also seeing the creation of so many new ventures. We have one client, and his shop-floor is full of PhDs. This sub-region is also very strong for pure research,

Coventry & Warwicks

which makes it attractive to major corporates and other organisations.”

Peter is committed to the concept of cross-boundary working, between Coventry and its smaller local authority neighbours. “We have no time for turf wars. Of course there will be the occasional disagreement, and I’ve been livid to hear what is happening at a couple of locations, but day-to-day, we have a good level of co-operation,” he says.

“If a potential occupier comes along, but then decides against Coventry, of course we will be disappointed, but we will then see if we can get those jobs into Leamington and Warwick.”

Peter is also convinced that the arrival of Severn Trent, and the Qualifications & Curriculum Authority, will emphasise

16 36

Coventry’s appeal to both private and public sector occupiers.

Given his firm’s involvement in the major regeneration scheme of Belgrade Plaza, it’s understandable that he highlights its progress.

“It’s not just about the theatre, the hotels, and the leisure and residential space are just as important. In October, the Holiday Inn Express and the Italian restaurant franchise will open, which will make the area even more appealing to theatre-goers,” says Peter.

“In the first 18 months, around 60% of the theatre’s clientele came from South Warwickshire, which all helps keep Coventry’s economy buoyant. The city can’t lead, because of its size, but it is very active, and we are now seeing that message reach the right places.”

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: Studley Point

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Get straight to the Point

Discerning professionals looking for premium quality office suites with excellent motorway access need look no further than the superbly refurbished Studley Point, where deals are already in solicitor’s hands.

Boasting an illustrious business past as headquarters to global organisations, the landmark Studley Point in Studley, Warwickshire is one of the region’s most prominent buildings.

Now, an extensive refurbishment by joint venture partners Folkes Holdings and Trigram Properties has transformed it into the highest quality office development available in the area, filling a niche in the local commercial property market.

The appeal of this newly re-launched scheme is clear presenting exceptional office suites to let ranging from 1,418 sq ft to 20,189 sq ft, flexible leasehold terms, generous car parking with 111 spaces and being just a ten minute drive from J3 of the M42.

Deals with an expanding architects firm - who were impressed by its superior quality finish - and a cutting-edge engineering company are already in progress.

Set over three floors with three wings in a conveniently rural location, Studley Point enjoys a highly visible position on the A435 Birmingham Road, with local shops and amenities just a short walk away.

Its extensive refurbishment also includes a feature entrance, new reception area and it is fully air-conditioned.

Rents are being quoted at just £12.50 per sq ft.

For more information, contact joint agents Savills (Birmingham) on 0121 633 3733 and GBR Property Consultants (Birmingham) on 0121 616 0500.

Visit: www.studleypoint.com

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Birmingham Airport

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Take-off for airport scheme as Laing’s earn the plaudits

September 9th was a memorable day, even in Birmingham International Airport’s long history; as chief executive Paul Kehoe and his colleagues celebrated its 70th anniversary, welcomed the world’s largest aircraft - an Emirates A380 - and marked the opening of the new international pier.

The terminal and its pier certainly make up an impressive chunk of real estate; three storeys high, 230 metres long, 24 metres wide and some 18 metres high.

The expansion project weighed in at £45 million, reflecting the need to handle six next-generation aircraft - such as the Boeing 787 Dreamliner or the Airbus A350 - and accommodate long-haul operators, low-cost carriers and charter flights.

Each of the new stands can cope with two smaller aircraft, providing the flexibility essential to meet changing passenger demand and differing market conditions. Three existing air-bridges have also been refurbished, to operate alongside the six new ones.

The architectural design, by long-time airport specialists Pascall & Watson, is deliberately sparse and minimalist in keeping with the existing buildings. One small setback saw operations director Will Heynes, who led the in-house project management team, forced to abandon the original idea of installing groundsource heat pumps.

“Unfortunately, the thermal properties in the ground here were less than we hoped, and going ahead with those pumps would have required a very large investment, which we couldn’t justify,” he says.

“We’d have been forced to put many tens, if not hundreds, of boreholes, but because we didn’t proceed with that element, we were able to install a CHP plant. We couldn’t build something of a scale to become a primary provider of energy, but it will be an important secondary source.”

However, heat pumps aside, Will says the design, build and fit-out programmes went just as planned, despite the need to keep the airport fully operational during the lengthy project.

“It was a very tight programme, and an intensive construction schedule, so we were all delighted when everything went so well.

Everything was completed just five days over target, which for a project of this size was perfectly acceptable,” he says.

“By the end of July, everything was fully operational, and we just needed to do some work on the north side, to remove the redundant pier.

At the peak of activity, we had about 300 people working here,

as there was a huge number of sub-contractor trades.

“Building a three-storey building in the middle of a working airport was never going to be easy, but the planning of the main contractor, Laing O’Rourke, was excellent.

They did a lot of work off-site, and much of the building was assembled in what was effectively a marshalling yard.”

At its height, the project soaked up more than £1 million a week, but Heynes pays tribute to Laing’s, and engineering consultancy Buro Happold, for their ability to overcome unexpected snags.

“We wanted a bespoke building, not a standard office block, so there were challenges along the way, but there were no cost over-runs, which is something we were absolutely determined to achieve. This airport isn‘t somewhere where you go over-budget,“ he says.

“Two sub-contractors even went under during the construction phase, but the project team still managed to keep everything on track, which really did impress us.”

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Black Country

New strategy from old faces as Butler teams up with Kirk

Regeneration companies are becoming an endangered species in the West Midlands; with both Transforming Telford and Sandwell’s RegenCo getting the chop this summer.

As central government puts the squeeze on local authorities, councillors understandably need to consider if they are getting best value from such operations, but given the scale of development underway in West Bromwich, the RegenCo decision appears particularly odd.

In the days when all sizeable councils operated economic development departments, bringing regeneration activities in-house might have made sense, but since such teams were dramatically slimmed down during the 1990s, the logic isn’t obvious.

However, the Black Country still remains home both to the well-established Walsall Regeneration Company, and the New Heritage Regeneration (NHR), created in early 2009 by Dudley MBC, AWM, and the Homes & Communities Agency.

The council - which has given the fledgling venture space in its town hall - may have chosen an unlikely-sounding brand, but has certainly signed up two of the regeneration sector’s biggest names, in Robin Butler (pictured, right) and Bill Kirk (pictured, far right).

The former was something of a corporate whiz-kid in the early 1990s; becoming a director of Chelsfield at the age of just 34, when the real estate giant entered the FT-SE 250 index upon its flotation.

Robin was then involved in some of London’s largest regeneration schemes, Paddington Basin, Stratford City and the White City amongst them, before making his name in this region, via his work at the Waterfront and Brierley Hill.

Bill began his career in local government, moved into the nascent regeneration sector following a spell as a director at the East Midlands Development Agency, and then became chief executive of one of the new generation of urban regeneration vehicles (URCs) in Sheffield.

He comes to Dudley following a successful time in charge of the regeneration company in Londonderry, to become chief executive of NHR, with Robin taking over as chairman.

Given their different backgrounds, this might seem to be a public-private partnership given human form, but the two individuals already appear of like mind.

“We see New Heritage as an implementation body, so we’ll be seeking to bring forward sites, get schemes underway, and also act as a catalyst for development,” says Robin.

“We’re not a URC in the strictest sense, because we do have a portfolio, we‘re more a form of asset-based vehicle.”

The venture certainly has a sizeable brief; with the council predicting that it will bring about “significant investment and positive change”, across the borough’s four main town centres, as well as its sixteen local centres.”

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“It’s an interesting time to be starting up. You get more attention from people, because there isn’t much activity, but equally, that gives you the profile which requires you to deliver,” admits Robin.

“We have been gifted some properties, and gifted some revenue, and now we have to develop a business model to cover the next ten years.

“We have already set up a site-specific strategy, which can operate right through the development process, from land assembly, and planning, to identifying gap funding, or other sources of finance.”

His colleague is swift to stress that the council has already begun to move its regeneration strategy forward, especially in Brierley Hill, Stourbridge and Halesowen.

However, with more than 50 potential sites on their list, the New Heritage duo must first decide which are priorities, and which are for the medium-term.

“There is obviously plenty of scope, but we need to proceed thoughtfully. Our relationship with the council will be transparent, so everyone will be aware of what is happening, but we’d definitely like to get three or four sites started during in 2010,” says Bill.

Given the duo’s combined expertise within the regeneration sector, from both public and private perspective, it’s interesting to hear their take on why some URCs have collapsed. continued over...

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Black Country

“I think the most important reasons are structural. Either there is not a symbiotic relationship between themselves and the local authority, or they have pitched their aspirations way too high, and they are not achievable,” suggests Robin.

“It is also possible that a particular council has put forward a weak policy, and that the partnership with their IRC has lacked focus as a result.”

New Heritage has the obvious benefits of being a latecomer to the scene, so it should already know where the potential pitfalls lie. “I hope we will succeed, and believe we will succeed, because we have agreed our aspirations with the members, the officers, and the council’s partners, in advance,” says Bill.

“It is obviously vital that the borough’s strategic schemes do come forward, so we are all committed to ensuring that gap-funding will be available, to allow developers to take these projects on.”

“Our judgement is that all the ingredients are here. The council is very pragmatic, we have good cross-party support for what we have been asked to achieve, and have already identified a short-list of key sites within Dudley,” says Robin.

“We will seek to move as quickly as possible towards delivery, but without taking undue risks. Whilst it is vital that we don’t lose our momentum now we are established, it is equally critical that we don’t move too quickly. There is no point in building, just for the sake of building.”

It’s equally intriguing to hear their views on the concept - touted by some local authorities and their URC partners - that high-profile developers are a must, if efficient regeneration is to be achieved on a significant scale, not least for the attention which such companies generate.

“I understand why some people adopt such a strategy, but for me, it isn’t right. If you

were eager to bring in a major developer at an early stage, you would have to give them a very good commercial deal to get them,” says Robin.

“I are sure we are capable of bringing forward something which will attract a national brand, but getting them here is not part of our strategy.”

New Heritage will of course be judged not by the intellectual and logical appeal of its agenda, but by delivery, and one challenging obstacle sits squarely on the organisation’s horizon … especially from their council offices.

Dudley’s largest, and most visible, regeneration project is the imposing 148-acre site occupied by the town’s castle and zoo.

After seven years of promising a great deal, but achieving not very much, St Modwen finally walked away from the proposed £100 million scheme - oft-described as the Black Country’s equivalent of the Eden Project - in February.

“We clearly do need to

Recession as an opportunity?

Difficult certainly, but Denise Hickman, Manager at Cradley Enterprise Centre (CEC) claims a real surge in demand for small workshops and start-up units in the Black Country area, and if supported right, these entrepreneurs could be the future of our area.

Over the last few months CEC have provided space for internet traders, welders, carpenters and electrical contractors amongst others.

In total the centre now sustains over 60 jobs. Flexibility is the key, says Ms.Hickman. ”I have setup and run a small business – and I know you need support in those critical first few months.

That’s where we at CEC have succeeded. We allow low startup rents, building as the business builds. We give flexibility on space and storage options.

It’s a longer term investment for CEC, but we have kept our occupancy rates high, when

many have been falling.

And, although we may not be making lots of money today, we believe we are investing in the future – for us, and for the Blackcountry area”.

CRADLEY ENTERPRISE CENTRE Supporting business growth in the Blackcountry.

Further information is available from: Denise Hickman, Manager, Cradley Enterprise Centre.

Maypole Fields, Cradley, Halesowen, West Midlands B63 2QB Tel: 01384 411819 Email: enquiries@cradleyenterprise.co.uk Web: www.cradley-enterprise.co.uk

22 36

find a solution there, but things aren’t as gloomy as some make out. Dudley already attracts 300,000 people a year to the castle, and the museum pulls in around 200,000, so they are certainly not failing, even if more could be done to enhance their appeal,” says Bill.

“We went for a low-key launch, and since then have deliberately not been jumping around, promising what we would achieve, because it would be insane to be shouting, when we have nothing to show,” adds Robin.

“The castle is one of our key schemes, but we prefer to sit down and think what might be achieved. When we have proposals we believe can be brought forward, then we will make a song and dance, but not before.”

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: Wolverhampton Science Park

Advantage - Wolverhampton Science Park!

Even though the recession is now some months old, Wolverhampton Science Park success is still evident as many of its tenant companies continue to expand their operations.

Andrew Gilson, the Park’s operations director says, “We manage some 150 fully serviced office and workshop

units with a size range from 20 to 200 square metres and are succeeding in maintaining occupancy levels of over 90%.”

Regular conversation with tenants seems to indicate that location at WSP is playing a significant role in helping tenants sustain, and in many cases actually grow, their operations in difficult times.

Various aspects of the Science Park’s service delivery are perceived as being supportive.

The accommodation is let on a licence agreement basis which commits the holder to giving only three months notice should they wish to downsize or vacate. For those who wish to expand – which is still by far the more usual circumstance – then the flexible nature of the Park’s accommodation and its associated infrastructure means that linking, moving and settingup of new facilities is normally a straightforward matter.

23 36

Feedback from tenants is also very positive about the inclusive accommodation package with the single monthly bill for rent and service charges seen as freeing valuable time for them to focus on their own businesses without becoming absorbed in premises management.

Andrew continued, “Another important factor is that we are not just another multitenanted business park. We work to ensure that businesses locating with us are mostly from science, technology and knowledge-based sectors. This provides significant opportunities for networking and commercial collaboration by bringing tenant capabilities together so as to deliver a much broader service to clients than would be possible on their own.”

Wolverhampton Science Park’s parent organisation is the University of Wolverhampton which brings further assistance to tenants by provision of R & D support, consultancy and recruitment services.

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: Sandwell

24 36

Unique and dynamic business opportunities in Sandwell

“To optimise the use of land & property to benefit the Sandwell Commununity”.

Corporate Property Division undertakes financial and non financial management of a defined investment portfolio of land and premises leased by and to the council and also undertakes management of defined portfolio(s) of land and premises held for specific schemes or pending redevelopment/reallocation.

Corporate Property has a number of industrial units and shop premises currently available to rent across the borough. All units are available on a 3 year full repairing lease basis and range in size from 646 to 2500 sq ft.

Additionally, industrial leases contain a three month break option. This gives the tenant the opportunity to terminate the lease

at 3 months notice subject to all rent being paid to date and the unit being handed back to the Council in a condition that meets with the satisfaction of Corporate Property’s representative.

Units may be used for any purpose within B1, B2 & B8 of the Town and Country Planning Act (Use Classes) Order, 1987 (as amended). Uses for motor vehicle repairs, motor vehicle breaking, tyre fitting and repairs, valeting, taxi services are not permitted or any other use that may be deemed inappropriate.

Shop premises are available on a 5 year internal repairing lease and are available for uses from A1-A5 subject to obtaining any planning permission deemed necessary.

Working in conjunction with Economic Development Services we can also provide access to a range of business support services to both established and new starts through the Council’s dedicated Business Engagement Team. These include :• General business support and advice; • Recruitment support; • Training support; • Access to both public and private sector procurement opportunities through Find It In Sandwell; • Access to business start up grants to a maximum of £1500.

The service provided by Corporate Property Division and

Economic Development Services is both unique and dynamic and provides a comprehensive package for established businesses wishing to relocate within Sandwell or to stimulate new business development within the Borough.

For further advice on the availability of industrial units and shops call 0121 569 3923 or for advice on the support available for your business call 0121 569 2101.

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Cromar delivers the goods

If uncertainty is spreading through the world of those tasked with driving urban renaissance, the ripples have yet to reach Walsall.

Peter Cromar (pictured), who has headed the town’s regeneration company since its inception, has never been light on self-belief, and even the recession has failed to dampen his ebullient nature.

“There is a great deal happening here, despite the slowdown, and I still think we are punching well above our weight,” he says.

“The new college opened at the start of September, which is not only a spectacular building, but represents £65 million of investment. It is very much a vocational college, designed on an academy model, and focusing on skills, enterprise and business.

“Amarjit Basi, the college’s chairman and chief executive, is building strategic partnerships with a series of blue-chip corporates, and already has Adobe, Microsoft and Apple on board.”

As the college moves to its new campus, its old site will be handed over to Tesco, and demolition of the buildings should start before the year-end.

The £240 million PFI to bring forward Walsall’s new hospital is another serious chunk of investment for the borough.

“The hospital should be substantially completed by next summer, and Tesco’s 120,000 sq ft superstore is due to open in time for Christmas 2010,” says Peter.

Elsewhere in the town, the regeneration company’s chief executive is enthused by prospects for the Waterfront area, where Urban Splash is the key development force.

“The Homes & Communities Agency (HCA) is very interested in Waterfront South, so we expect a response from them this autumn, about support from its Kick-Start programme to get the Accord Housing Association scheme moving,” says Peter.

“If that gets support, we’d also be looking to put key worker accommodation for the hospital into the same area.

It‘s all about place-making, rather than seeing schemes as separate projects. We need better housing options to attract better-quality staff.

Black Country

“Whitbread is looking to put one of its hotel brands into the Waterfront, and again, the HCA is keen to invest in one of Urban Splash’s ‘oyster’ blocks. We expect positive news from them, and it’s likely that site work will start early in the New Year.”

It’s an impressive list, and Peter expects it to swell further if AWM approves an outline application for the ambitious Gigaport concept; which would transform 55 acres near the town centre into an international location for the latest fibreoptic platforms, offering ’next generation’ broadband.

“It’s not just about the 1.5 million sq ft of Grade A office space which the scheme would create, it would make Walsall the ICT focal point for the city region. The Gigaport would transform not only our digital offer, but our public services.”

If Walsall can achieve so much in recession, why does Peter believe some URCs are failing?

“I don’t think the model of a public-private vehicle is wrong, it’s always about having the right leadership and drive, and being able to deliver, “ he says.

“It is vital to be able to engage with both public and private sector, and everyone must also realise that as the economic climate changes,

25 36

priorities need to be reassessed, and the delivery strategy may need to be reworked.

“In the past, the regeneration model was based on property development, land values were rising, and cheap debt was readily available.

Those times have gone, and URCs still wedded to that outmoded approach will inevitably run into difficulties.”

Peter also believes that the relationship between a regeneration company, and its partners in both private and public sectors must evolve to fit the new economic landscape.

“It’s about having different kinds of conversations. Now you have to think about regeneration, not about property development. The links with education and health are now very important, and affordable housing is no longer a peripheral sector.

“If a strategy is only about buildings, it will fail. Making regeneration work now is a far different proposition to simply having a housing programme.

Health will be a key driver for regeneration in the years ahead, but not in isolation.

Health, education, skills and employment must all be factored into a strategy which can deliver regeneration.”

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: UK Doorsets / Open Box

26 36

UK Doorsets

Our services include product design, scheduling and project management. Our in house team can assist in specifying the correct products from doorsets, screens and ironmongery offering you the complete package.

Large levels of investment has been made to date with a future schedule projected ensuring our market presence for years to come.

Our CNC department has state of the art machines tailored to produce to exacting standards. With our CNC capabilities we can recess various ironmongery items accurate to within fractions of a millimetre.

We can offer varying finishes from paint grade, laminated to veneer.

Exposed or concealed lipped with the latter being our standard production. Glazed apertures can also be incorporated in clear or wired glass with foil wrapped beads as standard or hardwood as an option.

We have a testing regime constantly underway to raise our portfolio beyond that of the current competition. Our product range ensures that we have the right solution to your needs.

Coming soon on a screen near to you...

Our new website

A companion to the magazine where you can find:

– Editorial plans for future editions – Contacts & links – News items – Media information – Back issues Opportunities to you: If you would like your news items, appointments, announcements, job opportunities and press releases featured on the site please submit to:

news@propertyadvatage.info And for our latest development our e-news letter will also be launched in the next quarter...

And you can subscribe whilst online too!

Brought to you by Open Box www.openboxpublishing.co.uk

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Advertisement Feature: Herefordshire

Herefordshire – Looking beyond the recession

Despite the current economic situation, the £650 million ESG regeneration scheme for Hereford city centre has continued to make steady progress with Stanhope Plc having been confirmed as the retail development partner and Sanctuary Housing appointed as the Urban Village partner.

The line of the new link road to the north of the ESG area has now been set and a planning application will be submitted later this year with a view to construction commencing in early 2011. A full planning application has been submitted for a floodwater diversion scheme as a preliminary

to development. Planning permission was granted in July for the relocated Livestock Market site north of Hereford on the Roman Road, and work should start later in the autumn, taking around 12 months to complete. The move of the Market will free up land for the ESG retail development.

With Hereford city being given Growth Point status, and the ESG regeneration progressing well, Herefordshire Council is promoting the county as being much more than a rural idyll.

Despite the credit crunch, many high quality jobs continue to be created, and economic development projects are

27 36

continuing. Other benefits, such as a stunning rural location, better quality of life, good schools, low crime levels, and high quality workforce all contribute to the reasons why many businesses are committed to the county.

The Herefordshire and Worcestershire Chamber of Commerce Awards 2009, held on 17th July, saw another strong performance from Herefordshire based businesses with Central Group the night’s big winners.

Based in Hereford, Central Group’s core business is Central Roofing & Building Services Ltd, a leading roofing company with offices throughout the UK. They won the coveted title of Business of the Year 2009, the award for Excellence in People Development and their Chairman, Phil Perry, also won Entrepreneur of the Year. Other winners included Universal Beverages Ltd, a large beverage production facility based in Ledbury, who won the award for Growth Business of the Year, and Poston Mill Park who picked up an award for Excellence in Leisure and Tourism.

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: WMCCE

Simply the Best!

Experience tells us that nothing can compare to using lessons from real projects when trying to make the case for change in the construction industry.

Therefore the importance of recognising leading-edge construction projects and using them to capture these lessons is very important if the industry is to improve.

The West Midlands Centre for Constructing Excellence (WMCCE) is looking for leadingedge, construction projects in the region that are innovative and apply an element of best practice to join the Constructing Excellence Demonstration Programme and become an acknowledged exemplar or Demonstration Project.

WMCCE captures best practice techniques from Demonstration Projects and disseminates this across the industry in the region. Successful projects can receive the benefit of free publicity in the form of case studies, press releases, articles and podcasts and those involved may also be invited to present at industry events to showcase their achievements.

This free publicity is a great way of raising the profile of contractors, clients, consultants and others involved, providing recognition and kudos for being leadingedge in the industry by being associated with Constructing Excellence principles and the Demonstration Programme itself.

According to Sir John Egan, Demonstration Projects show up to 30% lower costs, 40% reduction in project lead time, profit margins up from 6 to 10% and an 80% increase in productivity per year compared to other national construction projects.

Those involved in the programme also get access to a learning and sharing network of Demonstration Projects that can share best practice with one another.

For an application pack or for more information about becoming a Demonstration Project please contact Natalie Parker 0121 688 4050/ n.parker@ wmcce.org, or visit our website www.wmcce.org.

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Property Advantage West Midlands

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Public sector meets private in city’s new digital universe

In today’s time-sensitive business world, instant access to the latest information is more critical than ever. No more will people wait until the council offices open after a long Bank Holiday weekend, or a dilatory colleague deigns to arrive at work.

It’s very satisfying therefore to discover two Birminghambased organisations using the latest technology, to devise innovative ways of bringing vital data to their target audiences.

This autumn sees marketing agency M Consulting launch the next generation of online property maps; allowing architects, developers, agents and a host of other users in both public and private sectors to ’interrogate’ city streetscapes.

The project was commissioned by Infoterra, one of the world’s leading suppliers of satellite data to local, regional and national governments, the European

Property World Online

Commission, and a host of international companies.

M Consulting’s creative director, Ed Phillips (pictured), says the Skape service will save significant chunks of time and money for anyone in property; enabling - for example council planners to see how proposed schemes will look without spending thousands on 3D models, and giving small architectural practices the ability to cope with their big-time peers.

“It was incredibly exciting, to become involved at the foundation stage of something which will transform the way the property community operates,” he says.

“A lot of tools designed for the professional sector also find their way into the public domain, so this will eventually be used by a massive audience.”

Meanwhile, around 150,000 residents in Birmingham and Sandwell can now see exactly where their money is going, via an interactive online map launched by Urban Living; one of the government’s former housing ‘pathfinders’, which is based in the city.

The public sector hasn’t got an impressive track record of cutting-edge ICT projects, so it’s good to hear that this housing renewal agency is the first of its nine UK peers to offer such a service.

Urban Living’s head of communications, Tess Randles (pictured), says her organisation’s site provides information for residential schemes - both current and future - affecting around 60,000 homes in Aston, Birchfield, Handsworth, Lozells, Newtown, Smethwick, Summerfield and West Bromwich.

Residents can see not only what is planned, but how much is being spent on each project; whether new-builds, refurbishments, site clearances, or even simply a training scheme. Colourful maps and images help flesh-out the impact of the agency’s operations.

“We used to hear about people complaining they didn’t know what was happening, and didn’t know where to find out.

Since the site went live in August though, we have had very positive feedback,” says Tess.

“Its evolution was interesting, because we’d used this service internally to make presentations to the board and our partners, but without planning to offer it live on the web site. Then we realised just how valuable it

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would be to keep everyone up to date with our activities.”

M Consulting’s work came via a competitive pitch against three other agencies, late in 2008.

“Infoterra wanted a new kind of online service; where people in the property community could ‘interrogate’ city-scapes to discover who built a building, who designed it, who provided the external finish, and suchlike. It was an amazing potential opportunity for us, to work with an international brand, and to really push the technology,” recalls Ed. “Our graphic artists, programmers and web designers got together to devise a solution. Infoterra had the product, but we needed to create and deliver a service.

“They also wanted a brand and an identity. We came up with the name of Skape - a revision of an earlier concept, of e-scape. Then we put together a package of services, and beat a London agency to win the work.”

Ed and his colleagues then spent months working to turn Infoterra’s vision for the new service, into a fully-functioning package.

“They wanted something allowing developers seeking planning permission to swiftly see how their schemes would replace existing buildings, or fit into a particular site,” he says.

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

“The uses are almost limitless.

Architects could build their own 3D buildings and place them in a virtual street. The emergency services could even assess access and exit points from proposed buildings.”

Trials of the initial Skape service began in March, and a test panel from its target audience was subsequently asked for their professional views as potential users.

“At the same time, our Java programmers were working on the functionality of the graphics.

By late-August, we were happy that the interface met everyone’s needs, and that the shiny new web site was also ready for the autumn launch,” says Ed. “We predict massive savings, especially for small architectural practices, advisors and SMEs with limited resources. Today, they could spend from £5,000 to £10,000 just creating 3D visuals for a proposed scheme, and then it might not go ahead.

“Infoterra’s service will cost around £200. It’s also easy for councillors and officers to see how a scheme could work, and how it might be ‘tweaked’, rather than going through an expensive series of revised planning applications.”

Ed says Skape’s future uses could include detailed assessments of proposed concert venues, or new retail complexes.

“The software is so intuitive that you could see where the queues would form, and how traffic flows would be affected by different audience numbers,” he says.

“The next version will include footfall statistics, making it of more use to retailers. Schools could use it as an educational resource, so they could study the built environment, as could students on architectural or design courses.”

Urban Living’s online map could also be used for educational and research purposes, although by its nature, it can’t have such grand ambitions as Infoterra’s Skape service.

However, it is clearly making an impact within the UK’s urban housing sector, and Tess says another former pathfinder has already been in contact to see if it might adopt the model for its own purposes.

“Renew North Staffordshire thought it was so useful that they plan to do something similar in their area,” she reveals.

“We’ve also used the map to make an interactive presentation

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to the Homes & Communities Agency, and we’ll be demonstrating it at our national conference in Manchester, towards the end of October. ”We’re already looking to update our map, with news of new schemes and the latest visuals, and we hope in time that it will become the first place people look, when they want to know what is happening in the public housing sector in our area of the city.”

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Point of View

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By Paul Kent (pictured), a director in the property litigation team at Wragge & Co LLP There has been a change in the volume and type of work we do, and also a change in emphasis. The recession has certainly brought an increase in instructions but it would be wrong to suggest there has been an explosion of new jobs.

The property slowdown impacts on property litigators differently depending in part on the client mix of their real estate departments.

For some a major source are the banks and insolvency practitioners, so work will be generated by them as the market plummets, and companies struggle. Others may be focused more on developers who will have different problems.

Our real estate practice has seen a significant increase in the type of difficult and sensitive cases which arise from agreements entered into when markets were hot, and everyone wanted the deals to happen but which in today’s cold light don’t seem so attractive.

My colleagues are asked to look at the agreements with a magnifying glass, then they ask me to study the documents again, this time with a microscope.

We are also increasingly being asked to study options and conditional purchase agreements, typically, where the price was fixed in better times and was seen as good value but which now threatens to be uneconomic. That is when the microscope can be useful.

Saying that, I haven’t noticed a great appetite among many property clients to throw money at disputes.

They are presently reluctant to engage in litigation, not because they consider they have a weak case, but quite simply because they don’t want to spend money on lawyers if they can avoid it.

Kent fears for retail sector as year-end trading looms

Some though, for whom real estate is their core business, see litigation as a necessary part of their day-to-day activity so still like to keep that option in their tool-box.

Another area where activity has increased has been where developers have tendered unsuccessfully for a project.

Major companies, especially when significant regeneration schemes in the public sector are involved, have shown a willingness to go on the attack.

A long-running dispute involving Tesco, Sainsbury and Wolverhampton City Council recently went all the way to the Court of Appeal. That trend may accelerate as the prizes are often so great.

So, not a vast explosion of jobs from the recession yet but I suspect there is much more to come. We may well see a flurry of activity, particularly in the retail sector later this year, and then into early 2010.

My guess is some traders will not be able to get through to the year-end. Christmas is also very telling on the High Street, and tenants can collapse suddenly, so if the January sales do not go well, more shops will be empty.

Property Advantage West Midlands

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Point of View

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By Joel Kordan (pictured), head of Shoosmiths Birmingham office I often hear people talk about regeneration projects, as if they are somehow different from other property schemes, but in reality, they are simply developments, and during a recession, they are as likely to stall as any other schemes; large-scale or small.

The hope is that these schemes can be reinvigorated, but that will require both strong political support for the major public sector projects, and quite probably new income streams.

For reasons outside its control, Advantage West Midlands no longer has the financial resources which it expected, and is unable to support such schemes, at least for the moment.

Confidence is obviously critical. It is very difficult to move things on in the present conditions, because most schemes are demand-led, and if people do not believe the market is going to pick up in the short-term, they will not proceed.

The availability of speculative space is critical to attract inward investment projects, but no-one is prepared to build such space at the moment, and who can blame them?

There is a perception that the public sector still has the resources to step in, get some of the major projects moving, and stimulate the market so that private sector players are more confident about coming back in.

The theory is fine - and the impact of what we economics graduates used to call the ‘multiplier effect’ would be real - but my concern is that such input might not happen, not because the political will is absent at local level, but because central government has spent so much of its resources bailing out the banks.

Unless that is, the banks decide to invest significant chunks of their new funds investing in regeneration directly, which would require them to adopt a new mindset.

Major decision faces council

However, it isn’t all doom and gloom. Finally, we are seeing positive signs in the housing market, and there has been a marked pick-up in the willingness of housebuilders to proceed with land acquisition.

Residential schemes, in their purest sense, often have a regenerative effect because they are built on brownfield land. Obviously, developers have changed their strategy in this sector, to reflect the different economic conditions.

Traditionally, all houses were built on a speculative basis, because everyone was confident that the demand was there, and the mortgage finance was readily available.

Now though, I think we will see housebuilders proceeding much more carefully, at least in the short-term, doing bitesized chunks of their schemes - perhaps 20 houses at a time -

and waiting until those are sold, before moving on to another similar-sized phase.

At least, the housing sector will start to move again though.

Hopefully, as confidence begins to return, to both developers and consumers, the banks will ease their lending restrictions.

When mortgages become more freely available, and demand increases, housebuilders will start to bring forward their schemes in more significant phases, although if they will return to their traditional business models is a matter of conjecture.

At the local level, I must admit I am saddened to see the city council’s director of regeneration, Clive Dutton, moving on.

Birmingham was a great challenge for him, but there can be no greater challenge than helping London to make the most of its physical legacy from the Olympics. I know Newham has chosen well, in bringing Clive down to lead its regeneration, planning and property team.

However, that does leave a significant void to fill, and it is vital that the council finds a successor of serious importance and ability. Clive was a visionary, particularly in the way he recognised that successful regeneration requires a blending of the old and the new, which is very rare in the property world.

Usually, there are two schools of thought, that everything must be new, or that everything from the past should be retained. Clive had it just right, and his successor must come from the same mould.

Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: AJS Windows / Bromsgrove / Telford & Wrekin

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Property Advantage West Midlands

Issue 20 www.propertyadvantage.info

Advertisement Feature: Hereford / Dudley Estates

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Hereford Employment Land

The Rotherwas Estate is an unusual rural employment area on the outskirts of Hereford, with its own fishing ponds and protected chapel! Even the local bats have their own heated roost! Development at Rotherwas is continuing now that the new access road gives quick and easy access to the A49, M50 and the rest of the motorway network. Rotherwas is already home to over 125 companies employing more than 2500 people in a wide range of industries, with many trading internationally.

Herefordshire Council has combined with the regional development agency, Advantage West Midlands, to make more serviced land available on the Estate for

B1, B2 and B8 uses. Some plots are available now, with more land available in summer 2010. Contact the Economic Development Team with enquires about property or employment land in Herefordshire on 01432 383337 or economicinvestment@ herefordshire.gov.uk.

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