September 2011 Archives
The official word from Newcastle and Gateshead councils is that this is the launch of "new arrangements" to attract inward investments to the region, with 1NG's functions to be subsumed into the councils, the city promotional body NewcastleGateshead Initiative to begin a new drive to attract businesses, and 1NG chairman Lord Falconer to head a new Business Development Commission.
However, among Newcastle's there are clearly some concerns.Canvassing opinion today, some are putting a brave face on, with Sanderson Weatherall's Robert Patterson commenting: "I'm sure, going forward, the local authorities can achieve as much [as 1NG]."
But BNP Paribas Real Estate's Paul Nicholson said: "My concern is that another organisation with the North East's interests at heart has been shipped off."
As the September quarter day arrives there is much debate as to what effect this will have on retailers who are evidently struggling in the current market. There is no doubt at all that many retailers will struggle to find the cash to pay the September rent, especially if Christmas stock has been, or is to be, purchased also.
Some analysts predict that retailers will survive the September rent day, with the assistance of their creditors where possible, to enable them to benefit from Christmas trade. Whilst this might be the usual pattern, lack of consumer spending due to high inflation and the increased cost of living could result in more casualties than usually expected during the forthcoming September quarter. This could particularly be the case in regions of the UK where the public sector is a bigger proportion of the economy (employing a higher percentage of people) and consumer spending has been hit hardest by cuts and fears over job security, meaning retail footfall is markedly down.
Landlords may be inclined to assist retailer tenants by agreeing rent concessions, but they will have to keep a close eye on their retail tenants and consider turning to past tenants and guarantors who may be on the hook for the current tenant's liabilities under the lease.
Whilst creditors of struggling retailers may wait until retailers have converted stock to cash after Christmas before taking action, they will also be mindful of proposed plans to amend the legislation relating to pre-pack sales. If the pre-pack regime is set to change (and change is by no means certain) many retailers could plan pre-pack sales in an effort to preserve the most valuable parts of the business, whilst this option remains available to them.
So, will 29 September result in a number of casualties, or will struggling retailers limp on? It's difficult to tell, but all will be revealed in the next few days. What is certain is that for some, survival after the 29th will be but a reprieve. There will be more casualties in the months ahead.
For more retail coverage see our Retail blog
Related stories (£)
Twitter, the microblogging website, plans to expand into the Republic of Ireland with a new office in Dublin.
FreshStart buys slice of Notts mall
FreshStart Living has bought a vacant office block at Capital Shopping Centres' Victoria Centre in Nottingham to develop into student flats.
Hermes buys Manchester's Citygate Court
Aegeon has sold the Citygate Court office building in Manchester city centre to Hermes Property Unit Trust.
York FC stadium plans go in
Developer Oakgate has submitted a planning application for a 6,000-seat stadium and shops in York.
- Buildings ranging from 30,000 to 250,000 sq ft.
- A total of 500,000 sq ft
- 11acre park
- Room for additional retail
- Within Glasgow's International Financial Services District (IFSD)
The world's richest football club, Manchester City, has today submitted a planning application for 80-acres of land (£) surrounding its Etihad Stadium in east Manchester. As befits 'Moneybags' Manchester City, it will be building a mini-stadium to host youth team matches. No jumpers for goalposts at City then.
Above are some images and below is a fly-through video of the scheme.
What Lambert Smith Hampton has done, in a nutshell, is calculate the short term and longer term impact of values and rents around 15 key stations along the Crossrail and Thameslink routes. In Saturday's EG we'll be publishing a map with LSH's key stats for the 15 stations which you can have a sneak peek at here but just whizzing through the full report it easy to spot that some hot spots are hotter than others.
At the western end of Crossrail the Slough/Heathrow area is expected to see the biggest gains with prime rental growth in the next two years predicted to be 7.5% per annum while in the east, Canary Wharf will see a rise of 8% pa.
For Thameslink it is Kings Cross/Euston and Blackfriar's which are the hottest spots. The former with an 11% pa increase on prime rents and the latter 11.5% pa together with a yield compression of 75bp between 2011 and 2013.
The eyes of the retail world have been well and truly fixed on the opening of a certain shopping centre in east London this week, but Land Securities, despite having a full 18 months to go before opening day, has provided us with a gentle reminder that it is making steady progress on the UK's next shopping behemoth.
Above are new images, taken in the last few days, of Trinity Leeds, LandSec's 1m sq ft mall in the centre of Leeds, which clearly show that the domed roof of the scheme is almost in place.
But LandSec still has some time to plan a grand opening to rival that of Westfield Stratford City's as the doors are not set to open until 2013. Might be an idea to put in a call to Nicole Sherzinger's agent now then...
MAG Developments, the property wing of Manchester Airports Group, has let a 30,000 sq ft warehouse and office unit to US aerospace service provider GA Telesis at Aviation Business Park, Bournemouth Airport.
The firm has signed a six-year lease at £4 per sq ft and will use the facility as its European headquarters, featuring distribution and office space.
Salford University submits digs plans
The University of Salford has submitted an outline planning application for 2,100 student flats as part of the development of its Peel Park campus.The £30m scheme will comprise three blocks of up to 10 storeys.
Two more sign up at The Pipeworks
Joint developers Rokeby Developments and Peveril Securities have agreed two further lettings at their 112,000 sq ft mixed-use leisure and retail scheme The Pipeworks in Swadlincote.
Eighty-bed care home planned for Oxford
An Oxford industrial estate will be knocked down to make way for an 80-bed care home and 105 houses if plans are approved.
"In truth there's nothing remarkable about WSC apart from its size. It's clean, shiny and covered in glass like every other shopping centre. But it's not about what it looks like, it's about what it represents for East London - hope and pride."
The Guardian was slightly more scathing calling it either uplifiting or a vision of hell:
John Lewis also drew big crowds for its grand opening and there were lengthy queues at Starbucks which was open for business early and in a prime spot by the tube side entrance to the shopping centre.
Westfield Stratford City is an airy and, for now at least, quite glitzy looking shopping centre with a good mix of aspirational and high street shops that elevates it above the average suburban shopping centre to something more akin to what you'd find in a big regional city centre (presumably with catchment to match).
The loos get the thumbs up too, overhead one lady say: 'Ooh they look like a hotel' and so they do.
It's a fitting gateway to the Olympics site and probably the most potentially fruitful legacy of the games next year.
We'll be adding more pics to the slide show as they come in.
PUBLISHED 29 OCTOBER, 2011
Analysis of key projects and strategy
Contact: Daniel Cunningham, senior writer, 020 7911 1822, email@example.com
Analysis of current trends and future issues
Contact: Dave Callaghan, freelance writer, 020 8395 5291 firstname.lastname@example.org
Analysis of activity
Contact: David Thame, freelance writer, 01544 262 896 email@example.com
Analyses of the strength of the market and future trends
Contact: Claire Robson, freelance writer, 07896 267 707 firstname.lastname@example.org
Market in numbers
Contact Stacey Meadwell, regional editor if you think you can provide up to date figures and predictions for the key cities covering offices, industrial and retail 020 7911 1819, email@example.com
As well as some nice sweeping shots of the scheme and its public realm, the most interesting aspect of these new visuals is the first glimpse they provide of two "gateway" buildings.
A planning application for City Buildings, which will feature a Marco Pierre White restaurant and Indigo hotel, will be submitted this month. The visuals clearly show the new-build tower which will house the hotel above the existing City Buildings.
Next month, plans are due to be submitted for the redevelopment of the listed Hanover building, transforming it into refurbished offices and shops. It too features in the visuals.
Click on the below slideshow for more details, and be sure to read our coverage of NOMA in this weeks Manchester Focus in the magazine.
Franc Warwick has been appointed to sell a 15-strong portfolio of high street shops once owned by Irish investors David Arnold and Deirdre Foley.
Manchester-based civil engineering and construction firm J Hopkins Contractors has bought a 135,000 sq ft industrial unit in Trafford Park, greater Manchester, from a private venture capitalist for £2m.
Dartford council has approved Delancey's and Essential Land's Dartford Gateway regeneration proposals.
council has granted permission for between 950 and 1,050 homes with
between 26,900 sq ft and 53,800 sq ft of offices, shops, restaurants and
bars. The scheme will also include a park.
Galliford Try, the housebuilding and construction group, has been selected as preferred bidder by Genting UK for Resorts World at The NEC, an £80m leisure and entertainment development located at the National Exhibition Centre in Birmingham.
Published October 22, 2011
Offices (covers Southampton, Portsmouth and Bournemouth)
Analysis of market strength and future trends.
Contact: Joanna Bourke, senior writer, 020 7911 1816, firstname.lastname@example.org
Retail (covers both counties)
Analysis of the market strength and future trends.
Contact: Helen Hamilton, freelance writer, 07758 833735 email@example.com
Residential & Student Housing (covers Southampton, Portsmouth and Winchester)
Analysis of the strength of the market and future trends.
Contact: Liz Loxton, freelance writer, 01992 581975, firstname.lastname@example.org
Analysis of strength of the market and future trends
Contact: David Thame, freelance writer - 01544 262 896, email@example.com
Industrial (South Coast)
Analysis of the strength of the market and future trends across the South Coast.
Simon Jack, freelance writer - 01225 444 780, firstname.lastname@example.org
Market health check
Please contact Stacey Meadwell, regional editor, 020 7911 1819, email@example.com if you think you can provide up to date stats for offices, retail and industrial sectors in the following centres Southampton, Plymouth, Bournemouth & Basingstoke
UK retail sales values in August were down 0.6% on a like-for-like basis, according to the British Retail Consortium.
PRUPIM hopes for Heathrow hotel take off.
PRUPIM has submitted plans to transform a 1980s warehouse complex close to Heathrow Airport into a hotel and industrial development.
PRUPIM and Cubex are submitting their redevelopment plans for One Victoria Street in Bristol on Thursday writes Abigail Fisher. And they are confident their plans for a comprehensive refurbishment and extension will meet with planners approval. Confident enough that Gavin Bridge of Cubex expects a decision to be made in 12 weeks 'if not sooner'.
If the plans do meet with planner approvals One Victoria Street will increase in size from 36,000 sq ft to 48,000 sq ft and work will start early in the New Year.
Money deals are always good news in today's cash strapped times so great to hear that Brewary Square Development Company has secured £14m from Bank of London and The Middle East for its Dorchester regeneration project.
The money will go towards construction of phase two - there are six phases in total - of the Brewary Square scheme which will comprise 64 homes and 14 commercial units. Crucially, and I'm sure a contributing factor to the signing of the cheque, 75% of the residential space has be forward sold and a number of the commercial units are pre-let to fashion retailers.
* Keep an eye out on the Focus blog later in the week for our Hampshire and Dorset Focus synopsis and coverage of our Southampton reception which is being held on Wednesday
Harworth Estates, the property division of UK Coal, has appointed DTZ and Jones Lang LaSalle to find a development partner for a 3.5m sq ft industrial near Bolton, Greater Manchester.
Parkway signs three tennants
Standard Life Investments has added three new retailers to the tenant line-up at Parkway, its 475,000 sq ft development in Newbury, ahead of its opening next month
Bishops Stortford scheme gets the nod
Henderson Global Investors has been granted outline planning approval for its retail-led, mixed-use scheme at Old River Lane, Bishop's Stortford.
Gladale to sell Quartermile
Gladedale Capital has scrapped plans to seek a joint venture partner for its £450m mixed-use Quartermile development in Edinburgh in favour of a sale.
At the end of last week Englands RDA's assets were unveiled which was still creating column inches at the start of this week.
Insider Yorkshire outlined the number of sites across the region and what was going to happen to key ones. Business Desk Yorkshire has a similar piece but goes into details about the value of the assets.
While other regional news site cogitated over the same details, in Manchester the news that MediaCity had been given Building Design magazine's Carbuncle Cup had opinion divided. While the Manchester Evening News' view was evident in the word 'controversial' the commenters on the story were far more vocal.
Meanwhile hot off the web today, the long running debacle that is the Edinburgh tram system hit the headlines with plans to bring the track into St Andrew's Square apparently back on. Cue lots of sarcastic comments from Edinburgh residents weary of the whole saga.
The National Asset Management Agency has published details of a further 40 assets that it has added to its list of "enforcement properties".
St Mods/Persimmon submit Longbridge plans
A joint venture between St Modwen and Persimmon Homes has submitted detailed plans for the first phase of a residential development on the 52-acre former Longbridge East works site in Worcestershire.
The key word in the report seems to be 'considering'. Take the Dublin office market for example. Traditionally quiet, July and August saw a number of office deals which leads CBRE to predict that take up by the end of the year will be on a par with 2010 or may even exceed it.
"This represents a very healthy level of activity considering the economic backdrop."
See there's the 'considering' and the report goes on to explain that many of these deals have been generated by lease expiries and occupiers taking advantage of an environment conducive to favourable lease terms.
Another 'considering' relates to the retail sector where despite retail sales being down year on year (bad) there are still a number of named requirements for Dublin's prime shopping areas. Again this is explained by landlords eagerness to land occupiers.
But deals are deals in this climate and, therefore, can definitely be labelled as good. The bad retail sales and a steady but otherwise unexciting industrial market are being kept company by an ugly investment market. Uncertainty over rent review reform by the Irish Government continues to push values down and transactional activity remains 'weak'.
You can read CBRE's full report by clicking here or by visiting CBRE's website
Image by Vectaportal on Flickr