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WHAT MAKES A SUCCESSFUL BUSINESS

COMMUNITY?

Thorpe Park Leeds has the answer...

WWW.THORPEPARKLEEDS.COM


Michael [email protected]

Je� Peareyje�[email protected]

Adam [email protected]

OFFICES AVAILABLE NOVEMBER 2016

p32-44 Property Investment Guide.indd 32 01/06/2016 12:25

insider JUNE 2016 33

COMMERCIAL PROPERTYPROPERTY INVESTMENT GUIDE – OVERVIEW

A degree of caution has taken hold nationally in anticipation of the EU ref-erendum. While the bulk of investment

has been led by the UK institutions, overseas buyers have been more conspicuous since the announcement of the vote, though much of their attention has been on Manchester.

Increased international interest could be attributed to a weaker pound. Either way, voting to remain on 23 June is likely to lead to renewed confidence and UK institutional investors returning to the market.

Investment in commercial property in Yorkshire and the Humber rose by 11 per cent in 2015, according to research by Lambert Smith Hampton. The property agency report-ed a total of £1.8bn for the year. Office, retail and industrial deals accounted for almost two thirds of all transactions. The region has had particularly strong backing for hotels, student accommodation and healthcare.

At the prime end of the office market, the substantially lower prices than Manchester are attracting yield-seeking investors to cities this side of the Pennines. Some industry fig-ures suggest that, as rental incomes are the main driver of performance, proactive asset management initiatives – such as investment of capital expenditure into office refurbish-ments in areas with few vacancies – are likely to offer the best prospects for backers.

The hefty weight of money in the market for prime offices, and the hunt for value, will boost investment in our cities, which arguably have more scope for yield compression than Manchester, where it is 4.75 per cent. Rental growth has made a more modest contribu-tion in Leeds, but yield compression across major commercial sectors has been signifi-cant, with prime office yields ending 2015at 5.25 per cent (from 5.75 per cent in 2014).

Prime office yields in Leeds remain 50 basis points above their 2007 peak of 4.75 per cent, though, and continue to offer a slight margin over top-tier cities and a clear premium above Central London. Sheffield’s market had an impressive take-up of 470,000 sq ft in 2015 – a post-recession record. Prime office yields there are 6.50 per cent; the city still represents good value.

Supply of good-quality accommodation has grown across Sheffield, with good-quality refurbishments and the completion of 3 St Paul’s Place, bringing 76,000 sq ft. The next phase of the Digital Campus will deliver a fur-ther 128,000 sq ft in 2017. While Leeds has very little grade A space in the core, 550,000 sq ft of accommodation is under construction in the city and at out-of-town sites such as Thorpe Park and Kirkstall Forge.

A full return to activity may also depend on investors embracing secondary stock and

asset management opportunities. Specula-tive development remains hard to achieve in the industrial market without assistance. It has been reported that no units above 50,000 sq ft are being speculatively built in West, East or North Yorkshire. In South Yorkshire, though, Verdion has let a 144,000 sq ft unit at its speculative iPort scheme in Doncaster to US global manufacturer Fellow-es, and Harworth Estates is having a 75,000 sq ft unit built at Gateway 36, Barnsley.

Industrial yields across the region have hardened to sub-5 per cent in some places. Lack of available stock should mean contin-ued rental growth and reduced incentives, particularly in distribution hotspots. Mid-sized warehouses are particularly buoyant due to banks increasingly funding business growth.

Industrials show a good return compared with other assets. Investor appetite ranges from large single-let distribution units to small estates occupied by local businesses. Growth in online retail has driven demand from occupiers and investors.

The Humber has had few development or investment opportunities on the scale of West and South Yorkshire. But a buoyant offshore wind sector and Hull being UK City of Culture 2017 are bringing considerable attention, as is the doubling in opportunities in the area’s various enterprise zone pockets.

MIXED MESSAGESFOR INVESTORSTO THE REGIONUnlike in 2015, more office stock is being delivered in the core cities, but industrial opportunities remain scarce

and when stock is released the region gets plenty of attention. Ian Leech looks at the upcoming prospects

WHAT MAKES A SUCCESSFUL BUSINESS

COMMUNITY?

Thorpe Park Leeds has the answer...



Michael [email protected]

Je� Peareyje�[email protected]

Adam [email protected]

OFFICES AVAILABLE NOVEMBER 2016


34 insider JUNE 2016

PROPERTY INVESTMENT GUIDE – LEEDS CITY REGION

A forecast by market intelligence analyst Experian suggests that the Leeds economy will consistently outperform

that of the other cities in the wider Yorkshire and Humber region over the next few years, in terms of total gross value added, jobs and consumer spending growth.

And 2015 was a busy year for the Leeds property investment market, with almost £600m of commercial and mixed-use prop-erty changing hands, compared with £400m in 2014. Investment volume figures may be skewed by Legal & General (L&G) taking a 50 per cent, £160m stake in Thorpe Park, but the number of deals and major investors making acquisitions demonstrate the appeal of Leeds across a range of areas.

The most eye-catching deal in the region was the partnership between Scarborough Group International and L&G, supported by UKTI’s Regeneration Investment Organisa-tion, to enable development of phase two at Thorpe Park. The building of the East Leeds Orbital Road will result in 5,000 homes being built over the next 15 years.

The site, off junction 46 of the M1, has planning consent for 1.35 million sq ft mixed-use expansion of the business park. Preparation work is under way to build a new

300,000 sq ft shopping and leisure park and a first phase of 40,000 sq ft of offices. The development also includes a 113-acre public park with sports facilities.

Another substantial announcement for East Leeds was Yorkshire Water’s sister company Keyland Developments selling its 50 per cent share in the 165-acre Temple Green logistics hub in the Leeds city region enterprise zone to Harworth Estates. The increasingly visible regeneration specialist becomes 50:50 part-ner with Evans Property Group and the site – the single-largest employment site in the

Leeds city region – has planning permission for 2.64 million sq ft of commercial space at junction 45 of the M1.

CEG used MIPIM, the international proper-ty investment conference, to make two signif-icant announcements. It was confirmed that international vehicle leasing company Zenith would relocate to the £400m Kirkstall Forge scheme. The development, to include 1,050 homes, 300,000 sq ft of offices and 100,000 sq ft of retail, leisure and community space, will have a dedicated railway station, which is on schedule to open this month.

CEG revealed proposals to develop a new city quarter as part of a £350m development on a 5.86-acre portfolio at Holbeck in the South Bank of Leeds. With 300,000 sq m of land available, a potential development cost-ing close to £1.5bn and the eventual base for the HS2 station, the South Bank could posi-tion Leeds as one of the continent’s leading cities. International real estate company Vastint chose the former Tetley’s Brewery site as only its second investment in Britain.

The Leeds occupational office market has remained buoyant and, with city centre take-up of more than 680,000 sq ft in 2015, activity was up 25 per cent on 2014. There are several large active requirements in the market, most still driven by professional com-panies, with further significant demand stem-ming from the media and finance sectors.

The 200,000 sq ft Central Square office

With schemes being planned and projects coming out of the ground,

2016 may be remembered as the year that size mattered in West Yorkshire

BIG ANNOUNCEMENTSIN LEEDS CITY REGION

21 Queen Street

Wellington Place



COMMERCIAL PROPERTYPROPERTY INVESTMENT GUIDE – LEEDS CITY REGION

development between Wellington Street and Whitehall Road is almost ready for opening. Bruntwood has been busy in the city: its 3 Sovereign Square is set to open, providing 90,000 sq ft of grade A office space, and its project to refurbish City House atop Leeds Station continues. That will provide 120,000 sq ft. MEPC has done well with its Wellington Place office scheme, with building 6 fully let within four weeks of practical completion and No 5 ready, offering 75,000 sq ft.

In investment terms, the Grade II-listed St Paul’s House has been acquired by EPIC UK from Boultbee Brooks Real Estate in an off-market deal at a net initial yield of 6 per cent, and Yorkshire Bank’s base at 20 Merrion Way has been acquired by a private Spanish investor for £16m at a net initial yield of 7 per cent.

The reputation of Leeds as a retail destina-tion can only be enhanced by the opening of Hammerson’s Victoria Gate centre in the au-tumn. Adjoining the Victoria Quarter arcades, it will provide 360,000 sq ft and bring the city’s first John Lewis department store and 30 other high-end retail outlets.

Residential development has come to the fore in the past year. Approval has been giv-en for the City Reach scheme on the former Yorkshire Chemicals site on Kirkstall Road, Leeds. Revised plans have been unveiled for a residential-led redevelopment at a former munitions factory, which is part of the Thorp Arch Trading Estate. The proposal, Rudgate Village, will provide up to 1,000 homes.

Approximately 1,000 houses are to be built by Strata and Keepmoat on brown-field sites in the Seacroft, Halton Moor and

Osmandthorpe areas of Leeds. Further luxury student accommodation is planned by Icon-Inc for Glassworks on Cardigan Road, Leeds. National private rented sector (PRS) specialist Inhabit has acquired land to develop in Leeds, while Caddick Developments has outline planning permission for its £150m Quarry Hill scheme for 700 residential units, a multi-storey car park and significant retail space.

Caddick also developed the £100m distribution and logistics scheme Crosspoint33, in Knottingley, which will house a distribution centre for TK Maxx.

In industrial terms, opportunities have in-creased with allocation of a 140-hectare M62 Corridor enterprise zone to span four councils and specialise in advanced components manufacturing. The sites are: Gain Lane, Parry Lane and Staithgate Lane in Bradford; Clifton Business Park, Calderdale; Moor Park and Lindley Moor East and West, Kirklees; and South Kirkby Business Park and Langth-waite Grange Extension, Wakefield.

Development has been limited outside Leeds. Bradford has had a substantial increase in footfall since the Broadway shopping centre opened, and several leisure schemes are in the pipeline. Keyland has secured planning for sites around Hud-dersfield, while Frank Marshall Estates has bought a 2.7-acre site from Mamas & Papas off Leeds Road, Huddersfield, and in June will complete Newhall Business Park in Brad-ford, providing eight business units totalling 38,000 sq ft.

The first half of Bradford’s 13-acre Baildon Business Park has sold, while construction of the second phase has begun. Up to 16 acres of development land is allocated for employment use at Bronte Business Park on Thornton Road and opportunities exist for a head office-like occupier to build on the site of the former Yorkshire Water depot at Aire-dale Road. Wates Living Space Homes has been appointed lead development partner for the North Halifax Transformation Project, and Calderdale Council is working with Pennine Housing to inject investment to the Mixenden, Illingworth and Ovenden areas.

INDUSTRIAL STOCK IN DEMANDBen Hall, regional senior director,Bilfinger GVA“I think it is important to note that across all sectors there has been a slowdown in investment activity, which we are attrib-uting to the uncertainty of the Brexit vote.

I’m certainly not forecasting any recession or downturn, and hope-

fully we will get through the vote, remain in and positivity will return to the market.

“The small sub-£10m property companies and investors are active, because

there is not much product out there. We understand the

Lateral office development in Leeds, which is owned by RREFF, is under offer. And there’s talk around Bruntwood’s 3 Sovereign Square. We only see overseas buyers at the moment, by and large.

“It’s been hard to develop good offices in secondary towns, because rents and yields don’t stack up. Long income kit is particularly interesting investors. And the alternative sector, like student housing and PRS, is robust. An American real estate fund has taken the Waterside Apartments in Leeds city centre for £25m.

“The industrial market is really buoyant. The occupiers’ market is strong and there is good interest from investors. Bibby bought a big distribution unit at Wakefield Europort. There just isn’t enough industrial stock around. Wilton achieved a yield of 5.5 per cent with its let to FedEx in the Aire Valley enterprise zone – that is very good. There are strong requirements in every sector. I wouldn’t say it is too much down to area; it just comes down to it being a good distribution or multi-let unit.”

Quarry Hill


PROJECT UPDATE


6 Queen Street PROJECT PARTNERS

Completing in July, 6 Queen Street is set tobecome the newest high-quality offi ce developmentin Leeds. Designed to the highest specifi cation and providing the versatility to create a highly tailored working environment, the entire building is now ready for tenants to fi t out (single/multi let).

The BREEAM ‘Excellent’ rated offi ce developmentcomes with more than just a prestigious address. Set over six fl oors, totalling a net area of over 70,000 sq ft, it was designed with a particular emphasis on sustainability and building effi ciency,coupled with a grade A specifi cation. This gives it the most effi cient fl oorplates in the city and an occupancy ratio of 1:8sqm.

In the heart of the city’s thriving central businessdistrict 6 Queen Street offers the opportunity to acquire a self-contained building or can allow for fl exible offi ce space with fl oor plates ranging from 4,359 sq ft to 14,047 sq ft.

In addition, it offers a stunning roof terrace option with views across the city skyline and

an unrivalled parking ratio for any offi ce development in Leeds (1:1,489 sq ft),which means secure basement parking for 47 cars, 82 cycle spaces and 8 motorbike spaces.

Developed by Rockspring Property Investment Managers LLP (“Rockspring”) and their developmentpartner Marshall CDP, 6 Queen Street offers the most fl exible solution in the city’s best location with excellent amenities, exceptional public transport links and professional/corporate occupiers nearby.

Richard Fraser of Carter Towler and Elizabeth Ridler of Knight Frank have been appointed asjoint letting agents.For further information please contact:

Richard Fraser0113 245 [email protected]

Elizabeth Ridler0113 246 [email protected]

6 QUEEN STREETNEARS COMPLETION

EMMA CORDINGLEYDevelopment Director, Marshall CDPTel: 01422 285529Email: [email protected]: www.marshallcdp.com

Established over 110 years ago and still based in Elland, the company is one of the most successful family-owned companies in the North of England with a wide range of expertise in property and construction. Working on everything from major urban regeneration schemes to fi t outs and refurbishments, we build operational facilities, distribution warehouses, retail parks, offi ces, residential property, city centre retail development, and hotels and leisure uses.

Rockspring Property Investment Managers LLP is a professional investment fi duciary specialising in the acquisition and managementof commercial property throughout the UK and continental Europe on behalf of major institutional clients - either directly for single-client accounts or through the Group’s series of tax-effi cient, co-mingled investment funds.

GNA’s latest city centre offi ce building, the design of No.6 responds to its context with repeating bays of deeply modelled brickwork and punched windows opposite the existing Georgian buildings along York Place. Queen Street introduces crisply detailed portland stone and glass leading to the double height entrance lobby.

Two engineering challenges were present, fi rstly the design and construction of the basement car park containment. A rotary piledcontiguous wall was chosen for its ability to core through sub-structure fragments of the previous building. The second was developing the support systems for the stonework surrounding the elegantly glazed elevations.

ROD MORDEYEuropean Director, RockspringTel: 0207 761 3300Email: [email protected]: www.rockspringpim.com

NICK BARNESDirector, Garnett NetherwoodTel: 0113 244 8858Email: [email protected]: www.garnettnetherwood.com

KIM HANDirector, JPGTel: 0113 263 1155Email: [email protected]: www.jpggroup.global

READY FOR TENANTSFIT OUT NOW (SINGLE/MULTI-LET)

SUPER EFFICIENT OCCUPANCY AT 1:8 SQ.M

EXCLUSIVEENTERTAINING ROOF TERRACE

(5,060 SQFT)

6 Queens Street.indd All Pages 01/06/2016 10:07p32-44 Property Investment Guide.indd 36 01/06/2016 12:25

PROJECT UPDATE


6 Queen Street PROJECT PARTNERS

Completing in July, 6 Queen Street is set tobecome the newest high-quality offi ce developmentin Leeds. Designed to the highest specifi cation and providing the versatility to create a highly tailored working environment, the entire building is now ready for tenants to fi t out (single/multi let).

The BREEAM ‘Excellent’ rated offi ce developmentcomes with more than just a prestigious address. Set over six fl oors, totalling a net area of over 70,000 sq ft, it was designed with a particular emphasis on sustainability and building effi ciency,coupled with a grade A specifi cation. This gives it the most effi cient fl oorplates in the city and an occupancy ratio of 1:8sqm.

In the heart of the city’s thriving central businessdistrict 6 Queen Street offers the opportunity to acquire a self-contained building or can allow for fl exible offi ce space with fl oor plates ranging from 4,359 sq ft to 14,047 sq ft.

In addition, it offers a stunning roof terrace option with views across the city skyline and

an unrivalled parking ratio for any offi ce development in Leeds (1:1,489 sq ft),which means secure basement parking for 47 cars, 82 cycle spaces and 8 motorbike spaces.

Developed by Rockspring Property Investment Managers LLP (“Rockspring”) and their developmentpartner Marshall CDP, 6 Queen Street offers the most fl exible solution in the city’s best location with excellent amenities, exceptional public transport links and professional/corporate occupiers nearby.

Richard Fraser of Carter Towler and Elizabeth Ridler of Knight Frank have been appointed asjoint letting agents.For further information please contact:

Richard Fraser0113 245 [email protected]

Elizabeth Ridler0113 246 [email protected]

6 QUEEN STREETNEARS COMPLETION

EMMA CORDINGLEYDevelopment Director, Marshall CDPTel: 01422 285529Email: [email protected]: www.marshallcdp.com

Established over 110 years ago and still based in Elland, the company is one of the most successful family-owned companies in the North of England with a wide range of expertise in property and construction. Working on everything from major urban regeneration schemes to fi t outs and refurbishments, we build operational facilities, distribution warehouses, retail parks, offi ces, residential property, city centre retail development, and hotels and leisure uses.

Rockspring Property Investment Managers LLP is a professional investment fi duciary specialising in the acquisition and managementof commercial property throughout the UK and continental Europe on behalf of major institutional clients - either directly for single-client accounts or through the Group’s series of tax-effi cient, co-mingled investment funds.

GNA’s latest city centre offi ce building, the design of No.6 responds to its context with repeating bays of deeply modelled brickwork and punched windows opposite the existing Georgian buildings along York Place. Queen Street introduces crisply detailed portland stone and glass leading to the double height entrance lobby.

Two engineering challenges were present, fi rstly the design and construction of the basement car park containment. A rotary piledcontiguous wall was chosen for its ability to core through sub-structure fragments of the previous building. The second was developing the support systems for the stonework surrounding the elegantly glazed elevations.

ROD MORDEYEuropean Director, RockspringTel: 0207 761 3300Email: [email protected]: www.rockspringpim.com

NICK BARNESDirector, Garnett NetherwoodTel: 0113 244 8858Email: [email protected]: www.garnettnetherwood.com

KIM HANDirector, JPGTel: 0113 263 1155Email: [email protected]: www.jpggroup.global

READY FOR TENANTSFIT OUT NOW (SINGLE/MULTI-LET)

SUPER EFFICIENT OCCUPANCY AT 1:8 SQ.M

EXCLUSIVEENTERTAINING ROOF TERRACE

(5,060 SQFT)

6 Queens Street.indd All Pages 01/06/2016 10:07p32-44 Property Investment Guide.indd 37 01/06/2016 12:25

Andrew [email protected]

Mike [email protected]

David [email protected]

Verdion delivers iportuk.com

214,850 SQ FT (19,960 SQ M)

Distribution Facilityavailable nowUnit 1, Ontario Drive, New Rossington, Doncaster, South Yorkshire, DN11 0BF

Verdion_iPort_YorkINSIDER AWK_JUNE16.indd 1 23/05/2016 16:16p32-44 Property Investment Guide.indd 38 01/06/2016 12:25


PROPERTY INVESTMENT GUIDE – SHEFFIELD CITY REGION COMMERCIAL PROPERTY

The work on Sheffield and Barnsley retail centres, more building on the Advanced Manufacturing Innovation District,

university construction, Doncaster’s FARRRS link road and speculative industrial and office development; there is much to be encour-aged about in South Yorkshire.

Although the decision by the Department for Business Innovation & Skills to close its office at 2 St Paul’s Place and HSBC’s announcement of 600 redundancies in the IT department at Griffin House did temper en-thusiasm. Sheffield has been a popular ‘back office’ destination due to the comparative low occupational costs and salaries. Indeed the public and private sectors have promoted northshoring to encourage London-based law firms to set up offices in the region, promoting it as cheaper option.

In 2015, office take-up was up 50 per cent on 2014 in South Yorkshire. Sheffield put in its best performance since before the recession. The universities were active with Sheffield Hallam acquiring more than The Old Post Office, 5 Fitzalan Square for The Sheffield Institute of Art), as well as 20,000 sq ft of space at Furnival Street. The University of

Sheffield acquired 65,500 sq ft at V2 Velocity for its International College.

Buying opportunities in Sheffield have been relatively limited. However, Kames Capital’s £14m purchase of Ventana House, reflecting a net initial yield of 7 per cent, has provided a useful guide to pricing.

Speculative schemes have come forward. As the final part of the £130m Heart of the City project, 3 St Paul’s Place has been deliv-ered by CTP and U + I. Work has started on the next phase of speculative development at Scarborough Group’s Digital Campus, which will offer Acero Works at 80,000 sq ft over 6 floors and Vidrio House at 50,000 sq ft over 8 floors, both aimed at the creative sector.

In the industrial market, construction costs are a brake on smaller spec development. But generally, incentives are reducing, rents hardening at £5.50 for smaller units and lease terms lengthening. Occupier demand remains strong, amid a shortage of units of all sizes across South Yorkshire. A lack of stock and strong investor interest for larger industrial property is enticing more develop-ers to go down the spec route. Verdion has built two units totalling 320,000 sq ft at its

SOUTH YORKSHIRESHOWS WAY ON SPECSheffield city region’s development future is starting to look bright, with public and private projects coming to fruition

iPort development outside Doncaster – one has been let to American manufacturer Fel-lowes. The iPort, or Inland Port, benefits from access to the new Finningley and Rossington Regeneration Route Scheme (FARRRS) Link Road, which runs between the M18 to the A638 and Doncaster Sheffield Airport.

Work is ongoing on Harworth Estates’ 75,000 sq ft Helix unit at Gateway 36, off the Dearne Valley Parkway, Barnsley. Funding from a £2.7m loan from the Sheffield City Region Joint European Support for Sustaina-ble Investment in City Areas (JESSICA) Fund has paid for the work.

A substantial extension to Sheffield Busi-ness Park is planned between the proposed AMRC2 and the Sheffield Parkway, with. 300,000 sq ft of space for education and advanced manufacturing use within three or four buildings.

Plans to further develop Sheffield’s Olympic Legacy Park, part of the extended Advanced Manufacturing Innovation District, including a 3,000-capacity indoor arena, have been backed by councillors. Outline per-mission was also granted for the Advanced Wellbeing Research Centre.

St Paul’s Place, Sheffield

Andrew [email protected]

Mike [email protected]

David [email protected]

Verdion delivers iportuk.com

214,850 SQ FT (19,960 SQ M)

Distribution Facilityavailable nowUnit 1, Ontario Drive, New Rossington, Doncaster, South Yorkshire, DN11 0BF

Verdion_iPort_YorkINSIDER AWK_JUNE16.indd 1 23/05/2016 16:16 p32-44 Property Investment Guide.indd 39 01/06/2016 12:25


PROPERTY INVESTMENT GUIDE – SHEFFIELD CITY REGIONCOMMERCIAL PROPERTY

Developer Prospect Property Group says it is lining up a series of arrivals at Doncas-ter International Business Park; a 0.6-acre gateway development site off the M1 between Shepcote Lane and Plumbers Road, Sheffield, has been brought to market; and Redbrook Business Park, Barnsley, has been bought for £5.8m by Industrials UK.

Other development sites being promoted include the Doncaster Civic and Cultural Quarter, Doncaster Aerocentre, Torne Park, Bassingthorpe Farm, Markham Vale and Chesterfield Waterside.

In the residential market, one of the last remaining areas for development at Chase Park on the 200-acre Redhouse Interchange, Doncaster has been sold to Strata Homes. Harworth Estates has completed land sales at its 40-acre North Gawber site in Barnsley to Avant Homes and Harron Homes, and outline plans have been submitted by CEG for up to 320 homes at the site of the former Oughtibridge paper mill in Sheffield.

CTP was selected as the preferred de-veloper for a 190-apartment private rented sector project close to the Sheffield Midland Train station. The £38m Porter Brook scheme will comprise two blocks, one of six storeys and one of seven storeys.

Proposals for Sheffield’s retail quarter were set to be debated in early June, and at developer Ashcroft’s redevelopment of The Moor, Game, Specsavers, Blacks, Costa Coffee and Ann Summers will move to the complex being built to house The Light cine-ma and Primark.

JF Finnegan has been appoint-ed by Helical Retail to build the £36m Cortonwood Shopping Park, the 120,000 sq ft extension to Rotherham’s 50-acre Cortonwood Retail Park. Plans have been submitted by St James Securities for a £35m retail park at Sheffield College’s for-mer Norton campus site on Bochum Parkway. If approved, it could be ready by December 2017 and create up to 250 jobs.

The £100m Better Barnsley town centre redevelopment scheme will feature retail, lei-sure, a market, library and landscaped public open space, following the demolition of existing buildings. A planning application has also been submitted for the Rossington Hall Golf Developments scheme, to turn the site into a world-class golf complex and resort.

RETAIL MUST BE RIGHTInsider asked Ashcroft’s Ranald Phillips and Philip Hollister, former chairman at developer J F Finnegan, for their views on Sheffield city centre.

Phillips (pictured left) says: “The city centre has been blighted by the timing uncertainties over the Sheffield Retail Quarter. It is the only major city or town in this country without a retail makeover in the past 15 to 20 years. And it shows sad-ly. Central government made its decision about Meadowhall and with hindsight it was too big a space in one hit. It is hugely successful, but has had a significant im-pact on the city centre. Planning policy-makers have got a lot to answer for.

“In Sheffield there have been two very large areas of land in the control of two parties, which has blighted the city centre. The Moor was allowed to degenerate into an area for uncontrolled external market traders and discount traders swamping the area. As one well-known retailer said to me, it was like a car boot sale down there.

“The retail quarter will link us together so the city becomes cohesive. We speak to a lot of retailers in the south that say ‘we are at Meadowhall’. When we suggest the city centre they say ‘god, there’s a worn out city from the past’. But when we do get retailers here they are impressed by the public realm. I have become aware of a groundswell of opinion among people in the city who believe in Sheffield, but aren’t quite sure how to promote it. It is up to the constituent parts to pull together.”

Hollister adds: “Sheffield has always been a bit of an enigma. I don’t think

we have always made the best of what we have got. There is some fantastic public realm. A lot of people wouldn’t go into Sheffield now unless it was to John Lewis. All the big stores have gone. It

has been made difficult to get into town and didn’t have good car park-

ing. It has to be made more user-friend-ly. There’s no hassle at Meadowhall. When the cinema gets done on The Moor that could be attractive. They just need to add some quirky boutique shops. The Sheffield psyche of Republic of South Yorkshire hasn’t helped: we don’t see enough of the higher earners here. Leeds really went for the professional services sector. But I am hopeful for the future. I don’t know of any other city centre where you can be in the countryside so quickly.”

Key insfrastructure: FARRRS link road

The Light cinema at The Moor

For further information visitwww.peellogistics.co.uk/ACY

LOGISTICS . INDUSTRIAL MANUFACTURING . OFFICES

A Deliverable Destination

Development opportunities

Enterprise Zone Status


For further information visitwww.peellogistics.co.uk/ACY

LOGISTICS . INDUSTRIAL MANUFACTURING . OFFICES

A Deliverable Destination

Development opportunities

Enterprise Zone Status



PROPERTY INVESTMENT GUIDE – HUMBER

In political terms, the Humber has a very confused devolution picture that investors would hope to see some clarity on very

soon. The Hull Commission of Inquiry has said a fresh joint approach to economic de-velopment and local government is needed.

A clearer picture on development oppor-tunities should emerge after a final public consultation on Hull’s local plan, which will set out land allocations until 2032.

The city centre is undergoing £25m pub-lic-realm works for culture year. Apart from improvements at Beverley Gate, the council says 95 per cent of work will be completed by December. Plans have been submitted

to modernise the station, with new shops to create a better welcome to the city. A new restaurant, leisure facilities and shop are earmarked for the nearby St Stephen’s Shop-ping Centre. But construction of a footbridge across the A63 from Princes Quay to Hull Marina, where events are planned for culture year, will not begin until 2018.

Wykeland Group and residential developer Beal Homes have revealed their joint vision for the £80m transformation of the Fruit Mar-ket. Rejuvenating the area into a cultural and creative quarter will bring £70m of privately funded development, making it the city’s most significant urban regeneration project. The aim is to create an “urban village” featur-ing business, arts, culture, retail and leisure uses, along with new, mews-style homes.

Plans for a 3,500-seat music and events centre have been approved. Hull Venue, next to Princes Quay, can reduce to a 2,500-seat event and 21,500 sq ft exhibition space plus 800-capacity conference venue. The 350-seat Stage @TheDock outdoor amphitheatre is being built in the disused Central Dry Dock next to the new @TheDock offices.

Further north, the Flemingate development in Beverley has done well with lettings since opening in 2015, though East Riding council-lors refused proposals to double the number of smaller units at the shopping complex.

Industrial opportunities have been opened up since the Humber enterprise zone was

HAPPY DAYSON THE HUMBERSeveral good news stories have buoyed East Yorkshire, from Hull City of Culture

2017 to progress in offshore wind and a massive expansion of enterprise zones

King George Dock, Hull

Goole36

Stage @TheDock



COMMERCIAL PROPERTYPROPERTY INVESTMENT GUIDE – HUMBER

doubled in size to 3,000 acres – the UK’s largest. The extension comprises four pack-ages of sites: Northern Lincolnshire Ports, M62/A63 Corridor, City of Hull and the Able Logistics Park in North Lincolnshire.

The M62/A63 Corridor aims to develop employment land around the Port of Goole and provide an intermodal terminal. It will also link to the Goole36 and Capitol Park schemes, which include a mix of employ-ment uses, leisure facilities and car show-rooms across 2.14 million sq ft of space.

City of Hull covers 80 hectares, including the city centre for professional and technical services allied to the energy, digital and tourism sectors; the Birds Eye/Priory Park de-velopments in the west for professional and technical services and logistics, Queen Eliza-beth Dock in the east, and a site opposite for the renewable energy industry or logistics.

Horncastle’s Beacon development, off the A63 near St Andrews Quay, has two offices available offering between 3,000 and 15,000 sq ft. Out-of-town office opportunities still exist at Wykeland’s successful Bridgehead Business Park at Hessle, which has capacity for 612,000 sq ft of commercial space.

LOW SUPPLY MEANS GOOD YIELDNick Pearce, director at commercialagent PPH “In terms of actual new development sites, we are short of quality land. There isn’t any room northwards. And Hedon Road on the east has been swallowed up by the Siemens development. In terms of looking at where the next decent growth area is in Hull, you have to come west. There is the Melton West Business Park, which has been highly successful, and St Modwen’s land at Melton, which at 100 acres is the best site for industrial and business park use in the region. Without it the whole East Yorkshire market will be strangulated.

“Where are expanding companies going to go? The tightness of supply is allowing values to move up, though. And good rents and leases are being achieved. In the central area of Hull you have 750,000 sq ft of vacant office space, some of which has

been vacant for five years. But a lot of that is mid-1970s buildings that landlords won’t refurb. Two 9,000-footers are being built at @TheDock. One has been pre-sold.

“Out of town, the Bridgehead scheme is flying. We have another 20,000 sq ft in planning there that we have pre-let. And that will be at a record rent for the city of £16.75.

“Fortunately, we don’t have big highs or lows here. I can cite loads of

examples where people with small property companies around the UK ring and say they’re coming for a look and you ultimately sell them something. It will be their first foray

into the city and they will buy again because they get good value, good

yield and a steady return. “Our industrial values weren’t really af-

fected after the crash. They only fell about 10 per cent on the rental side in 2013 and have come back with a vengeance over the past year. For capital values, particu-larly on second-hand stock, in some cases we are selling stuff within ten per cent of what we would get for new stock.”



PROPERTY INVESTMENT GUIDE – NORTH YORKSHIRECOMMERCIAL PROPERTY

The York and Harrogate areas continue to see the lion’s share of activity in North Yorkshire. If soundings by council

leaders in York over progress to the borough’s local plan are to be believed, development there might even meet market demand be-fore long. Grade A office rents are between £16 and £17 – significantly below the asking rate in Leeds. Supply of offices in York town centre has reduced, with older stock being converted to meet the significant shortage of residential accommodation.

Research by Savills shows that in the prime housing markets, average values are now 13.4 per cent above the peak in 2007, compared with -18.8 per cent below this level on average as you move outside York to the surrounding villages and countryside. Nearly a quarter of buyers of prime property now work in London.

Stonebow House, on The Stonebow, is set to be transformed into luxury apartments and modern commercial use. The 100,000 sq ft former Network Rail office at Hudson House, in Toft Green, is to be converted into 82 apartments.

The regeneration of the former Terry’s chocolate factory on the South Bank has caught the public’s attention and is winning plenty of awards. Another high-spec scheme is Rushbond’s renovation of the St Leonard’s Place regency era crescent. That is nearing completion.

“The main residential around York is down to permitted development rights, office conversions,” says Tim Cross, head of com-mercial property at Langley’s law firm in York. “Now, for the first time, the trend has spread beyond the city centre as empty offices at Clifton Moor has been converted into apart-ments under the Halo development by the Helmsley Group.

“York was traditionally a manufacturing town and to a degree it still suffers from that. The main industry now is tourism. York needs to reinvent itself as a business centre to draw in new businesses. Then you will get profes-sional services firms. At the moment nobody is likely to ever need a 100,000 sq ft office.”

When international insurance provider Hiscox chose to move to York, bringing with it 500 new jobs, it couldn’t find the premises it wanted, and instead spent £19m in building a new flagship site in Hungate.

Harrogate councillors have agreed on a ten-year strategy and masterplan for the town. Although it does not contain planning policies, or allocate land for development, it does include policy recommendations and identifies potential development opportuni-ties within the town centre.

The Harrogate office market is beginning to benefit from a return of rental growth, as a result of a considerable shortage of grade A space and out-of-town business parks being close to capacity. This is only likely to

RESI SHORTAGE DRIVESNORTH YORKSHIRE MARKETA £1.7bn investment in a potash mine near Whitby and fracking in Ryedale have made the

headlines in North Yorkshire. But transactions in the property market remain relatively low

get worse because there are no new sites suitable for immediate development.

There continues to be a strong and varied retail offer in the town. Demand generally exceeds supply as securing units in the town centre can be difficult. Retail property in the core area traditionally attracts a lot of interest from wealthy local investors. The Scarbor-ough Market Hall is being revamped with a £2.7m grant from the Coastal Communities Fund. A mezzanine floor will be added, to accommodate new shops, offices and a cafe.

In some areas of North Yorkshire supply of industrial property has reached low levels particularly small to medium units. Opportu-nities for occupiers in York and Harrogate to expand are limited as residential develop-ment is driven towards brownfield sites.

Outline plans have been submitted for a 130,000 sq ft business park, off Beckwith Head Road in Harrogate, which could sup-port more than 500 jobs. Beckwith Knowle Developments wants 116,250 sq ft of grade A office accommodation alongside two 5,650 sq ft units for light industrial or distribution use at the site adjacent to Cardale Park Business Park.

The York Central enterprise zone is ear-marked for up to 2,500 homes and 300,000 sq ft of commercial space, although there are doubts about the number of homes. And access, high upfront costs, and multi-party ownership of the land need to be overcome.

Scarborough market set for a revamp


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