The Focus Blog: November 2011 Archives

Cardiff developer targets £20 top rents with boutique offices

By Nadia Elghamry on November 30, 2011 9:13 AM | No TrackBacks

Andy Giles is hoping to bring a bit of Mayfair to Cardiff. Think Park Lane in London but with a location of Park Place in Cardiff.

His agents Cooke and Arkwright and Savills say he, along with his business partner Richard Williams are delivering boutique suites to the Wales office market of the sort you might expect to find hedge funds occupying in London.

Andy has a background in retail and his partner in resi and they're hoping to use the glitz and glamour of these two worlds to deliver posh offices. The aim, they say is to deliver space which is very open plan and comes with luxury bathrooms and kitchens of the sort you might find in a swish pad.

They are part way through converting 18-19 Park Place. Andy gave us a tour of the 10,000 sq ft project as well as a sneak at what the offices might look like with a wander around his last project on St Andrew's Crescent.

Below he tells why he thinks Cardiff is ready for this spec of space in the middle of a recession, and why he thinks 18-19 Park Place can achieve Cardiff's very best rents of £20 per sq ft. Listen to what he has to say by clicking below.

What's interesting is the way what looks like a perfectly ordinary, and very beautiful, Victorian terrace at the front become what looks like a very modern office building at the back. Click on the image above to see a slideshow of the buildings. And if you've ever wondered what a building looks like when it's been stripped down to its skin then keep scrolling to the end.

Related blog posts (free)

Guest post: misleading claims over the dangers of Wales business rates review

Co-op launches roadshow to find retail space

Cardiff council's LDP delays are a dangerous mistake

EG's Question Time Midlands: regeneration, enterprise zones and is Birmingham the most boring city in Europe?

By Nadia Elghamry on November 29, 2011 8:45 AM | No TrackBacks

The EG team is up in Birmingham today at the city's Think Tank for our Question Time Midlands

Editor Damian Wild is chairing and joining him on the panel is:

Waheed Nazir, director of planning and regeneration at Birmingham council

Bill Oliver, Chief Executive St Modwen

Andrew Whelan, Santander regional director real esatte midlands

Barry Allen, head of office and regional director Midlands, Savills

Ian Taylor, commercial director Marketing Birmingham

We'll be live blogging so expect typos and grammatical errors.

Q1: Greenbelt

Paul Campbell kicks off the debate: significant household growth is it time to start loosening the greenbelt?

Wahid: much debate last 20years on this. we want to review the greenbelt but we want to protect it so get regeneration of the city, number of brownfield sites want to develop on.

Barry: inevitable that it will be loosened. volume of housing projected are just not deliverable

Bill: I don't think releasing the greenbelt will be the answer the nppf it has a duty to look at brownfield first.

Ian: inevitable some pressure on greenbelt but wahid is right

Andrew: got to make sure there is infrastructure there it has to be the whole package

Q2: NPPF

Bill: This gov seems to be changing policy more than previous ones it is speed of planning that affects development. Past 10years there feels like there is a presumption to refuse so i welcome a change on that. in all i think it is good but any change creates confusion while the changes bed down.

The delay in implementation is confusing I think it will come through we just want to get on with things. Granting planning is only part of the problem, you can't blame the planners for everything.

Wahid: anyone that reduces 600 pages down to 50 there is always going to be some worry. Generally welcome the nppf it will simply some of the planning

Barry: I think generally it is welcomed paradox gov wanting to push the process down to the smallest common denominator but realising that there is a problem with NIMBYISM.

Continue reading EG's Question Time Midlands: regeneration, enterprise zones and is Birmingham the most boring city in Europe?.

Guest post: Onus on developers to stop NI Assembly wrapping buildings in cotton wool

By Nadia Elghamry on November 28, 2011 1:25 PM | No TrackBacks

Angela Dunbar is an associate director in the Belfast office of planning and urban design consultancy Turley Associates. adunbar@turleyassociates.co.uk

The plight of heritage property in Northern Ireland made headlines over recent months following a spate of suspected arson attacks on protected properties and deliberate damage from rogue developers. So worried is the Northern Ireland government that its Environment Minister, Alex Attwood, has held two heritage crime summits to try and resolve the problems. Tough sanctions are proposed.

The planning regime in the province is currently under reform, with a shift in power from central to local government that should deliver more focused and timely decisions on heritage regeneration projects. While we await the transfer of power this should not however deter developers from bringing forward schemes involving protected property; local authorities recognise that often the best way to secure the long term future of heritage assets is to find economically viable new uses.

The onus is on developers to bring forward schemes that seek to make the most of our heritage assets. The planning regime provides the necessary checks and balances of protection.

Continue reading Guest post: Onus on developers to stop NI Assembly wrapping buildings in cotton wool.

Hammerson talks about a cohesive "seismic" scheme in Croydon.

By Nadia Elghamry on November 25, 2011 1:52 PM | No TrackBacks

As promised earlier in the week here's the podcast with Robin Dobson, director of UK retail development at Hammerson.

In it Hammerson talk about Westfield, working with Whitgift and how Hammerson can set itself apart from the rest of it's peer group by providing a town centre retail plan. The REIT said it would invest in Whitgift as well as areas outside of its immediate ownership to bring about a seismic change.

Tuesday's conference was awash with talk about the Whitgift and what people thought about Westfield's interest. Not all were completely complimentary. The post in full is here.

Guest post: Misleading claims over dangers of Wales business rate review

By Nadia Elghamry on November 25, 2011 8:39 AM | No TrackBacks

A few weeks ago Andrew Hetherton at GL Hearn wrote a guest post claiming the proposed Welsh business rates review could undermine development and growth. It has proved to be quite the hornet's nest.

Cardiff and Co, the city's marketing company, strongly disagree. Managing director Richard Thomas, says the claims are misleading. Here's what he thinks:

"It is unfortunate that Andrew Hetherton started scaremongering about possible negative effects on businesses from the Welsh Government review of business rates relief chaired by Professor Brian Morgan.

The minister has set no specific requirements for the review being conducted but it is unreasonable to tag the review as a danger to business. Andrew Hetherton's comments appear to assume that the Welsh Government has tax raising powers that it does not have when he expresses his concerns.

The devolution of business rates is complex and is different in Scotland, Northern Ireland and Wales, so it is unhelpful to try to make comparisons between any reviews that may be under way in Scotland and that announced for Wales. Wales cannot decide what to do with money raised through business rates and it is restricted on how much can be raised from businesses.

At the moment, the Welsh Government has the power to set the 'multiplier' for business rates (the actual tax rate) but the maximum it can increase in any year is by the rate of RPI from the previous September.

Continue reading Guest post: Misleading claims over dangers of Wales business rate review .

Pics: City West Edinburgh, spec development starts

By Nadia Elghamry on November 24, 2011 12:00 PM | No TrackBacks

Speculative developments are few and far between these days, so it's always nice to see when someone puts their neck on the line and actually starts building.

This is C&W Assets, the development arm of J Smart & Co, City West in Edinburgh.

Work has just started on site for the 25,000 sq ft, five-storey office block, which forms park of a larger mixed-use scheme comprising 88 residential units. Floorplates range in size from 2,100 sq ft to 6,900 sq ft and 20 secure car parking spaces. Completion is due by the end of 2012.

The scheme is located on the site of the former Bank of Scotland Computer Centre on Robertson Avenue between the main arterial roads Gorgie Road and Slateford Road.

Agents Ryden (who are joint letting agents with James Barr) are betting on lease expiries in 2012/2013 to let the building.

Next development hotspots in the UK revealed

By Nadia Elghamry on November 24, 2011 12:00 AM | No TrackBacks

Want to know where to develop for a return in the next couple of years? Or get a guaranteed end date for the recession? Wouldn't we all? Well, Lambert Smith Hampton think it has the answer and it says, now is the time to build (£).

Grade A stock is thin on the ground and getting thinner says the agents, and no more so than in Glasgow Bristol and Cardiff where the proportion of grade A availability is now below the UK average.

The firm's National Office market report was released today and it states that GDP levels are forecast to return to pre-recession levels by 2013. Demand for office space will increase returning to pre-slump levels in 2014 and the message is get building now.

But you'd have to be brave with little rental growth forecast in the near future, especially if you're the South West, Wales or the Midlands - see below.

In Glasgow only 15% of total availability is grade A, the lowest of all regional centres with approaching half of all takeup (40%) this year for the best space. But it warns that occupiers were in the main taking advantage of competitive terms.

In Bristol the figure rises to 23% (or 500, 000 sq ft) while in Cardiff 16% of the space available is Grade A making them prime spots for investors and developers. Other surprises include the fact that Cambridge has the highest rents outside London.

The country is broken down by regions below and for a detailed analysis of the Midland market check out our Midlands property blog:

Continue reading Next development hotspots in the UK revealed.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 23, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial.

Muse's Blackpool regeneration set for approval

Planning officers in Blackpool have recommended approval of the first phase of Muse Developments' £220m Central Business District scheme, formerly known as Talbot Gateway.

Windsor office scheme under threat

A circa 250,000 sq ft office development in Windsor, Berkshire, is being challenged at the high court by a pensioner who claims it will overlook her home.

Developer sought for Maelfa regen

Cardiff council is seeking a development partner to bring forward the regeneration of the Maelfa Centre in Llanedeyrn.

Litton calls time on redevelopment plans

Derbyshire-based developer Litton Property Group has withdrawn its planning appeal for the £25m redevelopment of its 10-acre Riverside Business Park in Bakewell.

Hopes for Hammerson after Westfield wades into Whitgift, Croydon?

By Nadia Elghamry on November 23, 2011 11:15 AM | No TrackBacks

Should we be feeling slightly sorry for Hammerson? Yesterday's Develop Croydon conference was all about Westfield.

London mayor Boris Johnson bounded on stage to tell everyone he was "delighted" that Westfield had chosen Croydon to build their third London mega mall.

Westfield's John Burton was helicoptered in to a prime slot in the conference at the last minute. And Hammerson's director of UK retail development and a long term investor in the town Robin Dobson, was barely off stage when Schroders' Ian Mason was busy telling everyone how Westfield was the best thing to ever happen to Croydon. Mason obviously felt slightly bad, beginning his comments with "no disrespect to Hammerson".

Hammerson bought Centrale shopping centre in March, spending £100m to little fanfare. It is spending a further £50m to improve the centre, and create evening trade in the town centre.

By comparison Westfield's commitment to Croydon is far from clear. Despite it being in exclusive talks to become a development partner on the existing Whitgift centre a storm has erupted between the complicated tangle of owners. Westfield's agreement extends only to the Whitgift Foundation which own 25% of the centre. Last week Hammerson, CSC and Lend Lease were all linked to the scheme as the Whitgift Trust and Royal London Asset Management, which own the remaining 75%, all made their voices heard. Many agents are desperate for some clarity but there's unlikely to be any more details emerging this side of Christmas.

Continue reading Hopes for Hammerson after Westfield wades into Whitgift, Croydon?.

Listen: Croydon mulls land acquisition fund to tackle mountain of redundant office stock

By Nadia Elghamry on November 23, 2011 8:46 AM | No TrackBacks

About a third of Croydon's office stock is old and redundant. That's a quite a lot.

Jon Rouse, the council's well respected chief executive, reckons that anywhere between 20% and a third of the town's offices need to be razed or refurbished.

The council now has the unenviable task of trying to tackle this. Maybe Croydon is just being a bit more realistic and open about the size of its problem while other councils around the country are keen not to say it out loud.

Rouse reckons that getting rid of the stock is the only way to raise rents up to the £25-30 per sq ft level that makes development viable.

One option they are mulling is a land acquisition fund. Rouse talked to EG yesterday about this plan. Click below to hear what he said.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 22, 2011 5:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial.

Boris 'delighted' by Westfield Croydon
London mayor Boris Johnson today said he was "delighted" by Westfield's decision to commit to Croydon.

Outdated office stock 'lets Croydon down
Almost one-third of Croydon's office stock is redundant and ripe for redevelopment, according to Croydon council chief executive Jon Rouse.

Boris pledges £23m for Croydon rebuild
London mayor Boris Johnson has announced an investment of £23m in Croydon to help rebuild the south London suburb after the summer's riots.

JLL consults with 13 in Brum redundancies
Jones Lang LaSalle has placed 13 employees in its Birmingham office under redundancy consultation.

Leicester to vote on student scheme
Leicester city council will vote later today on whether to grant consent to controversial plans for a £35m student accommodation development in the city centre.

New lettings at Whitefriars
Henderson Global Investors, on behalf of its UK Shopping Centre Fund, has achieved a series of lettings at its Whitefriars shopping centre in Canterbury, Kent.

Guest post: Irish government must act now to avoid yet more investment stalemate from upward only rent reviews

By Nadia Elghamry on November 21, 2011 1:39 PM | No TrackBacks

With the Irish government today appearing to do a u-turn on upward only rent reviews the industry is back to square one. CBRE Ireland has called on Minister Alan Shatter to confirm its plans. Marie Hunt is Executive Director at CBRE Ireland's Research and Consultancy is asking for clarity now.

"An entire year has been wasted. Investments have been lost while the Government has deliberated on upward only rent reviews.

It is incumbent on the Minister to advise sooner rather than later on whether this legislation is going ahead and if so to give some timelines on its likely implementation. This is the single biggest issue being speculated on in the commercial property sector in Ireland since the beginning of 2011

Having promised on numerous occasions in recent months that the publication of the legislation was 'imminent' , there have been a number of leaks in recent days suggesting that the Government may be about to do a U-turn and not introduce this legislation at all. For this reason, CBRE are now calling on the Minister to confirm or deny if this is indeed the case.

Continue reading Guest post: Irish government must act now to avoid yet more investment stalemate from upward only rent reviews.

Best of the web this week: Localism, UNESCO and planning reforms

By Nadia Elghamry on November 18, 2011 10:00 AM | No TrackBacks

The Localism Bill got Royal assent this week bringing to the fore arguments over whether it will make any difference, and if anyone is interested in actually making their own local plan.

Place North West: So far only a dozen neighbourhood forums have been set up in the North West under the DCLG pilot programme.
The BBC asks: what if locals choose a shape that ministers don't like?
Things are already changing in Brighton and Hove: Under pressure from Whitehall, Brighton and Hove City Council reluctantly replaced its committee system of governance with a new "Westminster-style" leader and Cabinet model in 2008.This will now be reversed under the Localism Bill
But Wind power monthly think they know what it is all about: UK planning law amended to help wind

UNESCO visit Liverpool this week to decide on its World Heritage status

In EG this Saturday we assess the impact on Liverpool losing its case (a link will be added as soon as it's available)
There's support for Liverpool's case coming from America
And Liverpool council chiefs say jobs are more important the World Heritage Status
Liverpool Daily Post hopes a tense few days can secure both WH status and sympathetic development
The Independent meanwhile, reckons the status is already in ruins

In Leeds the debate for the Green Bank hots up

And in Wales, planning reforms cause more anger.

Picture by Bloo Toon on Flickr

The North West industrial power list; agree with our selection?

By Daniel Cunningham on November 18, 2011 8:01 AM | No TrackBacks

Who's got the power in the North West industrial sector? In our North West Focus in this Saturday's magazine we've published the 'power list' of agents and developers in the region which you can see in full by clicking here.

The top five agents have been ranked by disposals, with some others flagged up as important players. Developers have not been ranked, but the list highlights those that look best placed to take advantage of the next cycle.

The power list is bound to provoke debate - and we welcome it. So, if you disagree with our selection or think that your company should be up there, tell us why by leaving a comment below.

Let the debate begin...

Power On button image by LivingOS from Flickr, used under creative commons licence

Guest post: Don't let one below average year write Manchester's office market off .

By Nadia Elghamry on November 18, 2011 12:01 AM | No TrackBacks

Estates Gazette's Manchester-based lead research executive Antoinette Nevin, analyses the outlook for the local office market.

After years of Manchester's office market performing well, a below average year should certainly not be cause to write off the capital of the North West.

Last year would be a tough act to follow. It was an especially strong because of the Co-op prelet which accounted for 328, 000 sq ft of take up. But, with a reported increase in new enquires during September and October, office space under offer and new developments on the horizon, the year is not over yet.

Key deals of quarter three include the 26,000 sq ft sale of 1 Norfolk Street to the Iraqi Consulate, Late Rooms taking 11,757 sq ft at the Peninsula and Outsourcery leasing 7,792 sq ft at 1 The Avenue in Spinningfields. Also, there are signs that space which has lain empty for a while is now being taken. The Metro building - which was completed in 2008 and has remained unoccupied - has seen two deals in which 35,591 sq ft has been taken.

With that we may see developers dusting off dormant plans. The number of buildings pending construction and refurbishment has been on the rise since 2010 when a lack of much needed pre-lets stood in the way of development. Now could be the time we start to see these buildings getting underway. There is a renewed drive for pre-lets - and schemes such as Property Alliance Group and Development Securities' 71, 000 sq ft Axis which has been on hold since 2009 are now moving ahead.

Following trends elsewhere in the UK, buildings are being rejuvenated with refurbishments, as is the case with The Courthouse, Deansgate which will see the Grade II-listed building transformed into 13,500 sq ft of high-specification Grade A office space.

Should interest in these prove to be strong, the potential for development in Manchester is huge especially with The Co-op's much anticipated 4 million sq ft NOMA development and One St Peter Square ready to give the city centre a prolonged lease of life in the coming years. Now all they need is a bit of occupier confidence and a fair wind to give them the boost to get going.

For more analysis of the Manchester market as well as reports on Liverpool, Chester and the industrial market read EG's North West Focus in tomorrow's magazine.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 17, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Springhead Park phase wins consent

Countryside Properties and Land Securities have received detailed planning approval for the next phase of homes at Springhead Park in Ebbsfleet Valley, Kent.

L&C eyes Pitsea redevelopment

London & Cambridge Properties has unveiled a proposal for the £30m redevelopment of Pitsea town centre in Essex.

Brum seeks partner for digital hub

Birmingham council is seeking a joint venture partner to help bring forward a £35m Digital Plaza hub at Birmingham Science Park Aston.

First planning application for Northampton EZ

West Northamptonshire Development Corporation has submitted the first planning application for Northampton's Waterside Enterprise Zone.

Aberdeen jv plans Manchester office

Aberdeen Asset Management has appointed Terrace Hill as development partner on an 80,000 sq ft office scheme in central Manchester.

Wykeland plans Hull business park

Hull-based developer Wykeland Group is preparing to submit a detailed planning application for a £100m business park at Hessle, close to the Humber Bridge in East Yorkshire.

Leeds to be given a winning Oscar role

By Nadia Elghamry on November 17, 2011 10:37 AM | No TrackBacks

With a rustle of a gold envelope, Leeds city council announced this morning what it calls the 'ultimate' Oscar honour.

The Leeds International Film Festival has been accepted as a qualifying event for the Oscars.

It means two of its awards (the World Animation and the Louis Le Prince International Short Film award for the cultured amongst us) can now be nominated to win the short film category from 2013.

So far this is just a nice arts story, right? Well, maybe not. Being nominated for a leading role in the Oscars has other benefits. Of course it will raise the profile of the city, that goes without saying. The Leeds International Film Festival is already the UK's biggest film festival outside London. Last year it saw audiences rise by 20% and they can't all be locals.

But it will also sprinkle a little bit of Holywood glitz and glamour over the city, especially as Oscar season begins in earnest.

Nominations like these mean more events such as the opening gala screening of Emily Bronte's Wuthering Heights at the festival this year. Which of course means more red carpets, more celebs, more cameras and more eyes on the Yorkshire capital.

Can that boost an ailing office market? Well it will have to make more of it than when Bradford was named UNESCO City of Film back in 2009, but it certainly won't hurt.

EG Focus features 2012 and Focus receptions

By Stacey Meadwell on November 17, 2011 9:39 AM | No TrackBacks

Right well, we know where we'll be heading next year for our regional Focus features but what should we be writing about?

Here is our features list for 2012, but we'll be putting together all the feature ideas and issuing a synopsis approximately 6-7 weeks ahead of the publication dates. If you have burning issue or topic that you think we must cover in your part of the country then let us know before then by emailing: egfeatures@estategazette.com

All regional synopses will be published here on the Focus blog.

We'll also be checking the oil and pumping up the tyres on the Focus tour bus ahead of our first Focus receptions in January - keep an eye out for a list of provisional dates and our new reception landing page where you'll be able to register to come along.

Image by Sludgegulper on Flickr

Today's top regional EGi stories (£)

By Nadia Elghamry on November 16, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Plans in for Kings Triangle Maidenhead

ING Real Estate Development has submitted plans for the redevelopment of Kings Triangle in Maidenhead, Berkshire.

JLL puts six under redundancy consultation in Manchester

Jones Lang LaSalle has placed six employees from its Manchester branch, including its high-profile office agency director Trevor Sloan, under redundancy consultation.

Countryside wins Dollis Valley scheme

Countryside Properties, working with London & Quadrant housing association, has been selected by Barnet council as its preferred partner for the proposed regeneration of the Dollis Valley housing estate in Chipping Barnet, Hertfordshire.

Dublin resi scheme up for €43m

The luxury residential development in Dublin formerly owned by Irish property tycoon Liam Carroll has been put up for sale for €43m (£37m).

Co-op launches roadshow to find retail space

By Nadia Elghamry on November 16, 2011 12:15 PM | No TrackBacks

The march of the supermarkets seems unstoppable.

Despite yesterday's retail figures telling us while food sales rose, they were unseasonally slow, it seems the supermarkets can't find space quick enough. The Co-operative Group is the latest to up the ante.

The ethical grocer is looking to expand across the country and, presumably isn't finding it easy. Instead of sitting on its haunches and waiting for the agents to do their bit it is launching its very own roadshow to try and winkle those units out.

The tour starts out in the South West and Wales where the retailer is hosting two events. Many more are planned for next year.

Details of its expansion are vague. When asked the Co-op would only say it was looking to "significantly increase" the number of stores through 2012.

In last week's magazine, in our Wales' Focus, we reported that the supermarkets were the only show in town (£). Actually it was crueler than that we said supermarkets were the only guests left at the retail party - the ones the developers didn't want to invite in the first place.

With the Co-op due to open four new stores in the South West and South Wales in just the next three weeks on top of its announcement that it's bought three more stores off Budgens that doesn't look likely to change any time soon.

Related blog posts (free)

Analysis the fall out of Tithebarn, Preston loses John Lewis, who is next?

UK town centre winners and losers over the last 13 years

Picture by Julian Mason on Flickr

Today's top regional EGi stories (£)

By Nadia Elghamry on November 15, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

JLL exits Plymouth residential

Jones Lang LaSalle has sold off a residential business acquired through its takeover of King Sturge.

Project Pinewood awaits fate

Pinewood Shepperton said this morning it was still waiting for the Secretary of State for Communities and Local Government to decide on the fate of its £200m Project Pinewood development.

Ingall: Banks are doing proper business

Banks are only selectively lending to the property industry but are doing "proper business", Allied London chief executive Mike Ingall has claimed.

South East office availabilty dwindles

Take-up in the South East offices market steadily increased in the third quarter, but availability continued to plummet, according to Colliers International's South East office snapshot report.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 14, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Localism Bill set for royal assent

The Localism Bill could become law tomorrow, having completed its scrutiny by Parliament.

Occupiers scour Manchester for 300,000 sq ft

More than 300,000 sq ft of potential office requirements in Manchester have been launched, as demand for space in and around the city picks up.

LaSalle sells Frimley Business Park

LaSalle Investment Management has completed the sale of Frimley Business Park in Surrey to Investream in partnership with Angelo, Gordon & Co for £15m.

Savills research warns of public sector land mismatch

There could be a demand and supply mismatch among sites available from the public sector land initiative, research by Savills has indicated.

NewRiver makes two acquisitions

NewRiver Retail has bought the Newlands Shopping Centre in Witham, Essex from Glandmore Investment for £5m - a yield of 9.7%.

Baskerville House hits Birmingham Market

Franc Warwick, on behalf of administrator Deloitte, has this week put Baskerville House, one of Birmingham's landmark buildings, on the market.

The Pinnacle, view for sale but not for the faint-hearted

By Nadia Elghamry on November 14, 2011 12:14 PM | No TrackBacks

Would you pay some of today's highest rents in the City of London, for a balcony you could use less than one-sixth of the year?

The backers of The Pinnacle said at a private viewing last week that floor 52 - its "penthouse" offices - will come with a private viewing terrace some 900 feet above the ground. Yikes.

Agents on the snake skin clad tower Savills, say rents will be similar, but discounted, to the high end suites in the West End. Think St James and Mayfair but below the three figures.

For that you'll get a birds eye view of the city, head and shoulders above Tower 42 and The Gherkin. However, Arab Investments and its agents Savills let slip that at those heights their studies show you'll be able to use the sky terrace maybe 60-70 days a year. Rain and, more importantly, wind will stop all but the hardiest heading out for most of the year.

But, they say, that's not the point. It's going to be a very special space. Imagine sipping a G&T on a summer's evening or puffing on a cigar? Trees and garden furniture will be allowed but only if it's very securely chained down. If they're looking for boutique financial-type occupiers, given the current state of the markets, they might want to consider chaining down any tenants on the balcony too.

The good news for anyone with wads of cash to spend is that Savills and Arab Investments say that the delays are over and the development is once more going ahead. We'll start seeing the core coming back out of the ground again as early as next week say Savills.

Picture by pasukaru76 on Flickr

Best of the web: High Speed 2 gets backing, John Lewis reaffirms commitment to development and Broadmarsh Nottingham changes hands

By Nadia Elghamry on November 11, 2011 12:06 PM | No TrackBacks

Faster than a speeding bullet. Well, the trains will be anyway but getting there will be a slow, slow haul. High Speed 2 was back in the headlines this week. An influential group of MPs want full government commitment to branching out the scheme to Leeds before it seeks parliamentary approval for the London to Birmingham line is given. A link from Birmingham to Derby was also being pushed for. Presumably many are worried with the vast timescales involved Yorkshire and the East Midlands might get forgotten in the mix.

The next day, the House of Commons' Transport Committee backed the governments £32bn plans and said there was a good case for the network, and that further consideration was being given to link up Derby to the Birmingham line.Proof that you don't always get what you wish for.

Some MPs, however, were worried that the scheme might drain money from the rest of the network, said the Press Association

Of course the announcement unearthed the massive swell of resistance to the project that was never far off under the surface anyway. There were accusations of voodoo economics from Buckingham Today, while the Irish Times confusingly reported that the whole scheme had hit the buffers.

Retail

Lettings at Trinity Leeds caused a few upbeat headlines in the local press with the release of its interim results this week. The Business Desk said Trinity Leeds was progressing for Land Securities and the Yorkshire Post said Trinity Leeds was powering ahead.

At EG we weren't so sure with lettings appearing to standstill between now and July of last year.

Continue reading Best of the web: High Speed 2 gets backing, John Lewis reaffirms commitment to development and Broadmarsh Nottingham changes hands.

EG's Manchester Question Time - role of public sector, bank lending, rivalry and more

By Stacey Meadwell on November 11, 2011 9:23 AM | No TrackBacks

The EG team is here at the Lowry conference centre in Manchester for the first EG Question Time:

Chair: Damian Wild

Panel: Mike Ingall, CEO, Allied London

Sir Richard Leese, Leader of Manchester City Council

Patrick Joynson, Head of Manchester office, Savills

Derek Bald, Santander regional director

Peter Copley, Property director, ITV

This is an overview typed as the event happens. For more keep an eye out on www.egi.co.uk for video coverage and a podcast.

Q from Matt Crompton, Muse Developments

For Richard, what would your top priorities be and how can the property industry help?

- We are supporting most vulnerable people in society and that's our number one priority particularly as a lot of vulnerable people been impacted by the recession.

- Improving skill levels and getting people into jobs because we are moving into a skill based economy we can't create jobs but we can invest in infrastructure to help support economic growth.

DW: What part does the public sector play in driving growth?

RL: It's a shared responsibility between public and private sector.

PJ: Infrastructure is very important for making sure the city works well. Enhancing that will make sure the city works well for when the economy recovers.

MI:Which parts of the private sector are actually going to grow that's what we should be looking at. TMT sector is hot and we have to somehow harness that.

To PC How import is role of the public sector?

PC: It is incredible important if hadn't been underwritten by a public sector tenant in the BBC this wouldn't have happened (point to Media City opposite the QT venue). Not each site is as good as the next so have to prioritise in terms of the infrastructure project, the ones that are going to fly.

Continue reading EG's Manchester Question Time - role of public sector, bank lending, rivalry and more.

More woes for Cardiff's CBD as business rates review announced

By Nadia Elghamry on November 11, 2011 2:00 AM | 2 Comments | No TrackBacks

Cardiff's central business district had been doing so well. The property industry seemed to like it. Cardiff and Co, the marketing company behind it, seemed to be saying and doing all the right things; and the council seemed to have its head screwed on and be heading in the right direction.

Then it got buffeted by two huge waves. The Welsh Government announced Local Enterprise Zones and said the CBD would be one of these. This move should have been positive but with Enterprise Zones introduced without remit, rules or boundaries the result has been to simply add another group of people through which all plans must be agreed. And, let's face, it's hard to find a single property person in Wales who think the Government make decision's swiftly.

Then the council announced it was delaying the local development plan, effectively paralysing development in Cardiff to howls from the local property industry.

Now it's business rates. Last week the Welsh Government announced it was launching an independent review of the business rates policy in Wales. It follows similar tax reviews announced in Scotland and Northern Ireland.

The property industry is worried. Andrew Hetherton, business rates director for GL Hearn says both the Scottish and Ireland schemes have led to concern over the cost such a regressive tax could have on business; a cost which could ultimately undermine development and growth. You can read his comments in full below.

This is yet another knock for the CBD's grand, and much needed, vision for the area around Cardiff's station. With the economy worsening by the day, how many more knocks can it take?

We'll be taking a detailed look at Enterprise Zones, Cardiff's CBD and many more aspects of the local market in our Wales Focus in this Saturday's magazine.

Continue reading More woes for Cardiff's CBD as business rates review announced.

Guest post: Wales investment volumes low, retail remains attractive

By Stacey Meadwell on November 11, 2011 1:59 AM | No TrackBacks

Peter Graham is a director at Cardiff and London-based Stephenson & Alexander

Vendors in Wales are seeking institutional buyers who are not reliant on debt and their focus is on prime retail, particularly Cardiff, and this is in short supply. Although there are concerns over the performance of office investments generally, there is some interest in Cardiff.

For many investors Cardiff ranks outside the top six larger cities for offices, probably on a par with Newcastle and Nottingham, but buoyed by some good take-up figures. Investment sales are not easy to achieve where a meeting of minds between vendors and purchasers on value, is often difficult.

There has been a low number of transactions over the last four to five months, and only about a dozen notable ones representing a very small percentage of UK transactions by value this year - a total of just over £200m, with about 60% of this being in Cardiff.

The most significant deal being the Admiral 25-year lease forward funding, we believe at just sub 6% to a German Fund. The Cardiff Gate Retail Park investment sale is likely to complete soon and not far off the asking yield of 6.75%, where again overseas buyers have been pursuing this opportunity.

Yields for many property investment types this year have softened further, except for prime retail. I would say Cardiff prime yields are now:

- Prime unit shop retail 4.75% - 5%

- Prime retail warehousing 6%

- Prime offices 7%

- Prime industrial 7.5%

There are a few isolated opportunities to buy quality properties at attractive prices where the Pension Funds are not competing. One of the high spots in this region is the acquisition of development land for retail and now for housing. In Wales I would be buying retail with some multi-let industrial to achieve the right portfolio balance and performance.

For more on the property market in Wales see this week's Focus in Estates Gazette.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 10, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Westfield sells Broadmarsh and begins Whitgift talks

The Westfield Group has agreed to sell its 75% interest in the Broadmarsh shopping centre in Nottingham to Capital Shopping Centres for £55m.

Exeter City FC seeks partner

Exeter City Football Club is seeking a development partner to redevelop its stadium.

SEGRO to offer Crawley business park

SEGRO chief executive David Sleath today earmarked The Gateway in Crawley as one of six large non-core assets, valued at £640m in total, to be sold.

Land Securities interims: is Trinity Leeds doing as well as the headlines say?

By Nadia Elghamry on November 10, 2011 11:19 AM | No TrackBacks

There are a few very bullish headlines floating around about Trinity Leeds after Land Securities interims this morning (£). But is it the other sort of bull?

The REIT is due to open the £350m shopping centre in spring next year.

The Business Desk said the company was happy with lettings while the Yorkshire Post led with: Trinity Leeds powers ahead. Quoting portfolio director Gerald Jennings it said:

" The scheme is almost 61 per cent let or in solicitors' hands and negotiations are on-going with a whole host of leading national and international retailers and restaurateurs who want to bring their brand to Leeds' prime pitch."

To break that down, the results say that by the end of September it was 54% let by sq ft* with a further 6.7% in solicitors hands.

But I've got a bit of deja-vu. At the end of last June - its last set of interims - Land Securities said it was 54.8% let with a further 3% in solicitors hands. At the time we said that was equivalent to roughly five Primark's worth of space. It seems to have slipped a bit since then.

* UPDATE: 14:00 Land Securities had originally confirmed that the percentages quoted were per sq ft. It has just contacted us to say that the percentage are by income. We're still waiting for news as to whether this was an error on the last interims too. We'll keep you posted.

15:00: Land Securities has now confirmed that percentages quoted are by income both for this set of interims and those released in July.

Picture by Abeeeer on Flickr

Who is the City occupier of the future? James Roberts Knight Frank NLA conference, session 3

By Nadia Elghamry on November 9, 2011 12:28 PM | No TrackBacks

**Live blogging from the NLA City of London conference. Expect typos and grammatical errors.**

This is it. The last speaker

James Roberts, head of commercial research, Knight Frank

The banks - FBS London is still very exposed to FBS (financial and banking sector) 7m sq ft in the whole of London, FDS and TMT are major occupiers and other occupiers make up just 2m sq ft. Despite the financial crisis and Lehman Brothers collapse it is still very dependent on financial sectors.

FBS sector will drive the economy. Nevertheless it will change. Canary Wharf's large towers were built to effectively bring together all the departments in the banking sector and hold together these mega banks.

New regs are effectively making the mega bank business model untenable. Banks will start thinking that holding these asset management businesses is destroying profit margins and will start spinning them off.

Continue reading Who is the City occupier of the future? James Roberts Knight Frank NLA conference, session 3 .

Ken Shuttleworth: The orgy of the glass box is over - NLA City of London conference, session 3

By Nadia Elghamry on November 9, 2011 12:14 PM | No TrackBacks

**Live blogging at the NLA City of London conference. Expect typos and errors**

Ken Shuttleworth, Founding partner, MAKE architects

"The Shard is £1.5bn of investment the thing about this building is it is very iconic but I don't understand how it works environmentally. I think there is a time lag this current crop of buildings are pre the new Part L are pre the new way of thinking about low energy buildings

We are running on empty as a world.

Over 30 years of my life working on many many glass buildings it has always been cheaper to seal the building up have no windows and not worry about energy. Architects talk about triple glazing etc and call it low energy, but it is not.

The orgy of glass boxes is over. We are campaigning for the death of the glass box. The age of bling is over. Crazy shapes, double curves. It's over it's back to simple.

Peter (Rees) is right it, refurb is the way forward, such as M&S on Baker Street. Started off old dull 60s buidling we refurbished but changed the image, the way people feel about it the way they get into it, change the way the whole energy cycle works. But it is still the same 60s building underneath.

The Cube in Birmingham is another great example. It is a truly mixed use building. It is very exciting.

Tall buildings are not the answer says Peter Rees, but are dirty weekends? NLA conference, session 3

By Nadia Elghamry on November 9, 2011 11:44 AM | No TrackBacks

**Live blogging from the NLA City of London conference, expect typos and grammatical errors**

So we are down to the last session of the day and it is Peter Rees, City Planning Officer, City of London who starts with a joke, at least I think it's a joke but you can never be sure with Rees....

"Here we are on the brink of the worst crisis the world's economy will see in our lifetime. Disaffected youth massing to the west of us ready to march on us and I've been asked to speak on building typologies. Yes quite!"

He runs the rest of the session almost as a stand-up, with no slides, no back-up, propped up against the lecturn with a microphone.

"25 years ago in the City, there were some pubs, if you wanted solids you could have a pork pie or a scotch egg at the pub, if you didn't fancy the pub there was choice: the greasy spoon. You could have had a cheese roll or ham roll and even then you had a choice you could have had it with or without tomato. Today we have people bounding over millennium bridge to get into the city at night.

"We've transformed the square mile. But it is not just the tall buildings that make the difference.

"There's only one reason for building tall - it's when you run out of space. Building a tall building in the Elephant & Castle hasn't worked, it's just got a giant shaver on the edge of it now - there's nothing wrong with the Elephant & Castle...well actually there's a lot wrong with Elephant & Castle... that a tall building will solve. Does its tall building help with its problems, does it make anyone shop in the shopping centre or does it make everyone dive into the underground carpark out of the underground and drive off.

"Look at Dubai, they have the world's tallest building but it is still a too hot hell hole. People will look at it in a few centuries in the same way we look at the Pyramids and wonder what it is.Nobody wants to go there for a dirty weekend...

...which brings me on to Frankfurt. I wouldn't go to Frankfurt for a dirty weekend and I told them that when I went there and they asked me about tall buildings - it won't make a bit of difference if it has tall buildings, Frankfurt first needs to be fun - a word they don't understand in German. But they have it in Berlin.

Continue reading Tall buildings are not the answer says Peter Rees, but are dirty weekends? NLA conference, session 3 .

Upgrading Bank station - NLA City of London conference, session 2

By Nadia Elghamry on November 9, 2011 11:14 AM | No TrackBacks

**Live blogging from the NLA City of London conference. Expect typos and grammatical errors**

Allan Thomson, Station Capacity Manager, TfL London Underground

Tube is carrying 1bn passengers a year expecting growth of well over a 1m people a year says the Mayor.

Northern line upgrade part 1 already underway expecting a 20% growth in passengers.

Throughout the city passengers are struggling to get through our stations and Bank is in the heart of it.

Demolition of Walbrook Square is now underway - Bloomberg will get a new entrance to the Waterloo and City line with new escalators.

Northern line big issue, it runs under King William St and platforms are directly under it and DLR is under the Northern line.

Not much has happened since the 1930s very narrow platforms very difficult to get on and off platforms, staircases are very narrow - major choking point. DLR is also suffering now.

Quite often Bank station has to be closed and trains run through because of overcrowding, that quickly causes problems at London Bridge and across the network.

Going to get step free access, increase capacity, brand new south bound platform and running tunnel, a bank of 4 new lifts. New escalators and stairs to DLR doubling capacity at northern end. New ticket hall halfway down King William Street.

It will be a big challenge and major disruption for the centre of London. 10 King William Street will be demolished and a shaft sunk - which will take 6 years.

Timetable:

Public exhibition is on now

Public inquiry 2013

Start on site 2015

Completion 2021

DTZ research: UK sheds market take up dips but incentives harden

By Stacey Meadwell on November 9, 2011 10:48 AM | No TrackBacks

Hot off the press DTZ's industrial times report for Q3 shows a market reaching new low levels of take up overall but with supply also in decline incentives are hardening. The researchers behind the report predict no further drop in rents but no growth for the time being either.

Here's a regional breakdown:

North West

Jump in take up in Q3
At current take up levels one year's grade A supply left
Increased appetite for land sales and design and build

London, South East & East

Busiest quarter so far this year but below long term average
Hardening incentives and anecdotal evidence of increasing appetite for D&B
Q4 take up expected to be strong

West Midlands

Take up down in Q3 and significantly below the long term average
Availability fallen below 25m sq ft for first time since Q4 2009
Grade A space scarce

Scotland

Take up dipped and dominated by second hand space
Q4 take up expected to pick up
Aberdeen market bucks the trends with pre-lets on the increase as grade A availability diminishes

Continue reading DTZ research: UK sheds market take up dips but incentives harden.

The City Corporation - successes in the City. NLA conference, session 2

By Nadia Elghamry on November 9, 2011 10:36 AM | No TrackBacks

** Live blogging from the NLA City of London conference expect typos and grammatical errors**

Peter Bennett, City Surveyor, City of London

Land Sec - Walkie Talkie and the right to light, we had to intervene use our powers to make sure reasonable consideration was given so an iconic building could be built

One New Change - 50% of the trade is at the weekend and the busiest day is Saturday showing that it's the visitors that are spending the money

The Olympic rings will be hung from Tower Bridge

3 new cinemas for the City

Picture of One New Change by EGFocus on Flickr

Rental growth and working with the iPod generation tenants in the City of London. NLA conference session 1

By Nadia Elghamry on November 9, 2011 9:02 AM | No TrackBacks

** Live blogging: expect typos and grammatical errors **

NLA's one day conference on what is really happening in the City? Is there the predicted spike in demand for Grade A office space? Is the future retrofit rather than new build? What are the likely opportunities over the next few years?

Martin Jepson, senior vice president, Development and Investment, Brookfield is about to start speaking.

Current market fundamentals:

Pretty good in terms of basic supply and demand

Lack of stock is the biggest issue

Opportunities for distressed assets

Yields well below 10 year average market trading circa 5.25%

2000s all about iconic design now it is all about the occupier and developing from the inside out. The new occupier is of the iPod generation - we have to provide for that.

Chief execs don't want shiny buildings - just for the sake of it.

Those that are in 100,000 sq ft today might not be the 100,000 sq ft occupier of tomorrow.

Efficiency of space 100 Bishopgate: we bought into this and we told architects we wanted functional and efficient trading floorplates. Used the model of Macquarie HQ in Sydney day 1 building needed to house 2,850 people but ended up fitting in 3,500 through efficiency of working.

In addition taken on another 600 people but not had to take 1 more sq ft of space to fit them in.

I don't see a rush of tenants coming in to take space.

----

Continue reading Rental growth and working with the iPod generation tenants in the City of London. NLA conference session 1.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 8, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

LaSalle completes B&M letting in Swindon

LaSalle Investment Management has completed a letting with B&M Retail in Swindon.

KFC to open Harlow drive-thru

Restaurant chain KFC is to open a drive-through at Harlow retail park in Essex following a deal with landlord Canada Life.

Westfield Stratford visitors top 6.5m

Westfield's Stratford City has had more than 6.5m visitors since it opened eight weeks ago.

M&S tests store formats for UK strategy

Marks & Spencer launched 15 pilot stores in October to test a variety of initiatives in different locations and store formats.

QPR tops Premier league for office costs - where's your team?

By Nadia Elghamry on November 8, 2011 10:58 AM | No TrackBacks

Ever fancied an office right by your club's grounds? A view of the pitch from your desk? Well if your a QPR fan you'll be paying through the nose.

They might be fighting for survival on the pitch, says serviced office provider Officebroker.com but QPR are top of the league when it comes to the cost of serviced office space. Officebroker has been crunching the numbers to see which of the top clubs command the biggest office rents and has come up with its own premiership.

Unsurprisingly the highest costs are in London, and QPRs top spot might have something to do with Westfield London and the BBC's presence. But let's let them enjoy their unusual victory for a little while longer.

Outside London it's surprisingly Stoke that takes the regional top spot ahead of Manchester and Liverpool.

Figures are for one workstation per calender month

Picture from www.qpr.co.uk

Today's top regional EGi stories (£)

By Nadia Elghamry on November 7, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Existing businesses could grab 200m EZ tax pot

The aim of enterprise zones to attract new businesses could be undermined by government plans to allow existing occupiers to qualify for the tax incentives.

Limerick Opera Centre site for sale

Savills has brought to market a three-acre commercial site in Limerick, Ireland, expected to sell for £12.5m.

£500m fund created for stalled projects

The government has today announced a £500m infrastructure fund to help get stalled development projects moving again.

Duo reveal grand plans for two Birmingham landmarks

Birmingham-based Trebor Developments and Hortons' Estate have unveiled two major projects in the city.

Best regional stories on the web this week - the blame game on Preston's Tithebarn and the backlash against RGF begins

By Nadia Elghamry on November 4, 2011 11:54 AM | No TrackBacks

Rip it up and start again. As Preston council shreds its plans for the £700m Tithebarn scheme after John Lewis pulled out, it seems the blame game has already started.

Some, it seems, are even happy. This is Lancashire reported that Blackburn MP Jack Straw had welcomed John Lewis's decision saying he was not surprised. He said Preston city council and Lancashire County Council had cost boroughs elsewhere "hundreds and thousands in legal costs to fight the application".

He was heard on BBC Radio 4 saying the scheme was "over the top and misconceived from the start. A BBC video covers the interview and also chats to leader of the council Peter Rankin who says a line has now been drawn under Tithebarn. He blamed redundancies at BAE systems as a one of the reasons the retailer backed out

The Lancashire Evening post said plan B was already underway and chief exec of the council said it had "flung open" its doors and "we are seeing every developer we can possibly see"

John Lewis' assertations earlier in the week that it was confident about plans at Sevenstone, Sheffield now make more sense in light of Thursday's annoucement. John Lewis managing director Andy Street has told Insider he is very optimistic the right scheme is now in place for Sheffield's £500m Sevenstone development.

Regional Growth Fund. The second round of Nick Clegg's fund was announced this week. Behind the breathy announcements that the cash would create thousands of new jobs across the country some were starting to take a harder look at what, if anything , the money would actually achieve.

Channel four news said that the government job figures for RGF were "over-optimistic" . It quoted Professor Henry Overman from the London School of Economics saying that government figures suggesting each new job would cost just £4,700 seemed a low.

Continue reading Best regional stories on the web this week - the blame game on Preston's Tithebarn and the backlash against RGF begins .

Pics: Edinburgh's waterfront regeneration

By Stacey Meadwell on November 4, 2011 8:54 AM | No TrackBacks

Final day of Scotland's International Waterfront Expo yesterday and this time we took a boat tour on the Firth of the Forth to see progress on Edinburgh's waterfront regeneration and hear a bit more about the work that lies ahead.

Accompanied by leader of Edinburgh council, Jenny Dawe - who certainly has a job as tour guide if she needs one with her in depth historical knowledge of the area - we got to see development at Granton and hear about future plans and then moved onto to Newhaven to see the work done there.

You can hear more from Councillor Dawe and John Bury, head of planning at Edinburgh City council on this podcast.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 3, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Tithebarn to be revised after JLP pulls out

Lend Lease's £700 Tithebarn shopping scheme in Preston will be revised following proposed anchor tenant John Lewis's decision to pull out of the project.

Analysis on the Focus blog: The fallout as Tithebarn loses John Lewis

Cardiff delays local plan over greenfield issues

Cardiff council has delayed the creation of its local development plan for a year over concerns about building on greenfield land.

Analysis and expert comment on the Focus blog: LDP delays are dangerous mess, warns planners and delays put CBD in danger

Plans in for Branston homes

St Modwen has submitted a planning application for a major new development on a 280-acre site near Branston village, in Burton-on-Trent, Staffordshire.

Coventry Skydome to get £25m revamp

London-based Mansford Holdings is investing £25m into Coventry's Skydome Leisure World complex.

Irish CEOs predict growth in 2012

Ninety per cent of Irish chief executives believe the country's economy will grow in 2012, according to CBRE's annual survey of the top 1,000 Irish business leaders.

Analysis: The fallout after Tithebarn, Preston loses John Lewis

By Nadia Elghamry on November 3, 2011 9:40 AM | No TrackBacks

The news this morning that John Lewis had pulled out of £700m Tithebarn (£) regeneration scheme in Preston was a shock.

Battered and bruised, the scheme has had anything but an easy ride but is the loss of John Lewis the final blow? Developers Lend Lease are far from giving up the fight and says it will work with the council on a scaled down version of the 1.5m sq ft scheme - something that probably should have been done a while ago given the economic climate.

More worrying now for Tithebarn is the fallout from other retailers. Many will have come in off the back of the John Lewis signing, how many will now stay without the pull of the partnership.

It also raises questions over John Lewis signings in other major developments. It's worth noting that nothing at all official has ever been hinted at and John Lewis have always expressed nothing less than their utmost commitment to other developments. But agents in Leeds have long speculated about when the partnership reaches the long-stop clause on its agreement with Hammerson at the Eastgate Quarter.

Add in its adventure in Croydon which ended in March 2010 when the council pulled the plug on a major retail development at Park Place anchored by John Lewis and you could understand why the retailer might be getting a bit cheesed off.

With the partnership increasingly signing up for mini-department stores (think York's announcement yesterday) the question is how many more mega-developments will it get fed up waiting for.

Podcast: Leader of Edinburgh council talks waterfront regeneration in tough economic times

By Stacey Meadwell on November 3, 2011 7:22 AM | No TrackBacks

Yesterday was the first day of Scotland's Waterfront Expo in Glasgow. Edinburgh, Glasgow and Dundee all got a chance to showcase their successes and talk about the challenges ahead to complete their visions.

Leader of Edinburgh City council Jenny Dawe and head of planning John Bury spoke about the new, flexible development plan for Edinburgh's waterfront as well as the importance of the TIF in keeping the project moving during the tough market conditions.

From Glasgow's perspective, Jim Fitzsimon's chief executive of Capella talked about the firms two sites in the Broomielaw area of the city and what needs to happen to bring them forward.

Click on the podcasts below to listen.

Councillor Jenny Dawe and John Bury:

Jim Fitzsimons, Capella:

Pics: Clyde boat tour at #waterfrontexpo

By Stacey Meadwell on November 3, 2011 6:21 AM | No TrackBacks

What better way to see the successes and work still to be done on the waterfront in Glasgow than by taking a boat trip up the Clyde. Part of the Scotland Waterfront Expo, we headed west from the SECC to the Clyde college taking in the new Zaha Hadid-designed Riverside Museum, Glasgow Harbour, Braehead Shopping Centre and Xscape.

(Extra pics taken from the Crowne Plaza).

Today's top regional EGi stories (£)

By Nadia Elghamry on November 2, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free or you can sign up for a free trial

Portas to put her knickers on show

Mary Portas is turning an empty Grade II listed factory in Middleton, north Manchester, into a knicker factory for a Channel 4 show.

Capella gets nod for Broomielaw Quay

Plans for a new leisure pavilion on the banks of Scotland's River Clyde have been given the go-ahead.

Conygar sells Welsh retail site

The Conygar Investment Company has exchanged contracts with Sainsbury's for the sale of nine acres for a supermarket at Haverfordwest, Pembrokeshire.

Views sought on elected mayors

Cities minister Greg Clark has launched a consultation for residents of England's 12 largest cities outside of London to give their views on elected mayors.

John Lewis to open in York

John Lewis plans to open a 100,000 sq ft department store at Oakgate's Monks Cross development in York in autumn 2013

Brum stalwarts form consultancy

Two Birmingham property agency heavyweights, Julian Shellard and Peter Burford, have teamed up to form a new consultancy firm in the city.

#waterfrontexpo - Clyde Waterfront overview of success and what's to come

By Stacey Meadwell on November 2, 2011 2:58 PM | No TrackBacks

*live blogging*

Jim Fitzsimons* chief executive of Capella

£1bn of investment and 1.5m sq ft of space already developed in the Broomielaw area [Glasgow] with 12,000 people now working there. Have 1.5 acre site with planning for over 200,000 sq ft space in Broomielaw area together with a couple of other schemes proposed including Goodman's plans for Central Quay (£) there is more than 1m sq ft of development planned.

As of yesterday we got permission for a leisure pavilion (£), totalling 30,000 sq ft, for restaurants and cafe bars on Broomielaw which will create a new feel to the area. Has the critical mass of workers now and hope to start on site in the New Year with completion anticipated in 2013.

Proposed Glasgow Fastlink goes right along the Broomielaw so that will be a great benefit.

Like to think that once we've developed our scheme the river there will become the postcard of Glasgow that people will send back home from the Commonwealth Games

Fraser Carlin, Head of planning, Renfrewshire Council

Like to think we as a local authority are in a more enlightened environment now, where we encourage development.

Highlights the success of bringing back into use 5.2 miles of waterfront, 1.5m sq ft of retail development (Braehead shopping centre).

Fastlink will get to Braehead in the future.

£500m invested by CSC and retailers in area and potential for a further £200m investment.

Personally hate Braehead but has great economic benefit.

David Hastings, Strathleven Regeneration Company

Lomondgate - regeneration in response to a closure of whiskey plant and result of public private sector partnership. It is where River City (Scottish TV series) is filmed among other BBC programmes. Chosen because of proximity to Glasgow and not under flight path.

In current climate it is easy to make excuses for things not happening but we have been determined not to let that happen. Secured Aggreko Manufacturing for a £20m manufacturing unit. They were initially worried about finding a site big enough so we were determined to make sure they could be accommodated and keep the jobs in the area.

Worked because of partnership and adopting a flexible approach. Key part of our learning is that a big part of regeneration is to stop degeneration.

By April contributed £115m into economy and that was achieved without public money.

* Podcast in which Jim Fitzsimons talks in more detail about Capella's Glasgow development coming soon. Check back on the Focus blog.

EG's Question Time heads for Manchester

By Nadia Elghamry on November 2, 2011 1:33 PM | No TrackBacks

Ever wanted to take the leader of Manchester council to task? Find out what ITV really wants from its property? or hear Allied London, Santander and Savills slog it out over the state of the market? Well, now is your chance and it's free.

EG hits Manchester next week with the first in its series of regional Question Time debates at breakfast time. On 11th November the EG tour bus will pull up at the Lowry, Salford Quays.

Questions already ranking high on attendees wish list include the future of the North West's new Enterprise Zones, bank lending - or lack of it, and even Lord Heseltine's growth plan for Liverpool.

Of course, those are just for starters, where the debate goes is up to you.

We've got a star line-up for the show with EG editor Damian Wild playing the part of David Dimbelby.

The panel are:

Michael Ingall, CEO from Allied London

Sir Richard Leese, Leader of Manchester City Council

Peter Copley, Property Director at ITV

Patrick Joynson, Head of Manchester Office, Savills

Derek Bald, Santander Regional Director Real Estate - North

We'll all be there so register here to be a part of it and add your questions to the list.

http://www.estatesgazette.com/questiontime/

We hit Birmingham in a few weeks time. You can register for the Midlands event on 29th November here.

Cardiff council's LDP delays are a dangerous mess, warns planner. Mr Pickles take note.

By Nadia Elghamry on November 2, 2011 12:29 PM | 2 Comments | No TrackBacks

Well, Monday's announcement by Cardiff council that it was delaying its local development plan - the second time in as many years - has certainly incensed the property industry.

Yesterday Turley Associates Gareth Barton wrote in to warn us that the plans for the £160m Central Business District had been put in danger by the council's actions. He's not the only one who's worried.

Today DPP's Gareth Hooper contacted us to say it's a mess and a dangerous one for inward investment at that. He doesn't mince his words and questions if Enterprise Zones were a hollow political move. The full reply is below, it is well worth a read:

"There is now a suggestion of a delay of a further year in the progress in preparing Cardiff's revised Local Development Plan in order to consider the wider city region, the main point being that growth should be regionally distributed not just borne by Cardiff.

would agree with the need to consider this but this is a huge change in approach for planning in Wales, with many neighbouring local authorities who would have to bear residential growth having already adopted plans. Such an approach is also contrary to that being rolled out in England under the 'localism' banner.

Perhaps the mess Cardiff finds itself in is a lesson for the Rt. Hon. Mr Pickles; with no regional strategy can you rely on individual authorities to work together without their own needs and agenda being at the cost of wider strategic advancement?

"This move leaves Cardiff relying on a plan dating from 1996 and leaves the capital without an updated plan for another year, with adoption not being until October 2015.

Can we really wait another three years?

Without at least some form of interim guidance to direct development, the knock on effect for business in South East Wales is likely to be dangerous - particularly given Cardiff is supposed to be bringing forward an Enterprise Zone. Substantiation of this status is required too - while over the border the Westminster government is providing clarity to places such as Bristol that have been designated Enterprise Zones; thereby priming the areas for inward investment; no such direction has been provided in Cardiff.

Was the Enterprise Zone designation merely a hollow political move to prove the Welsh Government's supposed 'delivery' agenda? Let's hope this cynicism is proved wrong."

Gareth Hooper, partner in DPP's Cardiff office

Related blog posts (free)

CBD in danger as Local Development Plan fails again

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DPP questions Wales' planning review

Listen: Cardiff's spec development and the good and bad of Enterprise Zones

#waterfrontexpo - Edinburgh Waterfront

By Stacey Meadwell on November 2, 2011 11:01 AM | No TrackBacks

*live blogging*

Councillor Jenny Dawe, Leader of City of Edinburgh council (introduction)

Edinburgh Waterfront core regeneration is Leith and Granton 300ha developable land.

Has emerged in last 20 years into an exciting new phase with resi and commercial development - Royal Yacht Britannia, Ocean Terminal, restaurants and bars.

There are huge commercial and resi development opportunities with a value of £1bn - making it one of the biggest waterfront developments in the world

Want to encourage new industry to strengthen and diversify the cities economy building on businesses we already have.

Have to work with partners achieve our aims.

Charles Hammond CEO Forth Ports

Edinburgh population reach of 1.2m

Conde Nast's favourite UK city

Strongest economy outside London

50% of population employed in high knowledge jobs

20% lower operating costs

Edinburgh has a number of opportunities in the city centre as well as the waterfront. City centre is focus for commercial activity as well as residential. West Edinburgh opportunity to create an international business quarter around the airport. South Edinburgh - bio industry focus.

Waterfront - major area of change.

Development hasn't stopped but has slowed down because of funding and infrastructure constraints that need unlocking.

Opportunities are emerging - National Renewables Infrastructure Plan highlights opportunity for renewable business at the dockside.

We've put in place an area development plan (new planning framework) working with stakeholders to draw it up. Based around three communities of Leith, Granton and Newhaven.

We still have private sector developers looking at how can take their developments forward.

Want to create a maritime gateway at the port. Edinburgh put forward a proposal for a TIF product to invest in infrastructure. Have agreement in principle from the Scottish Government to unlock that money.

Q&A

Q Who is guarantor in Scotland for TIF?

Charles Hammond Money is effectively a draw down facility and each proposal has a business case. In short term there is a gap between the money invested and that raised by potential rates up lift. Understand that risk stands with the local authority who borrowed the money

Q Call for current masterplans waterfront Edinburgh be thrown out. Nothing seems to have been learnt from what done windswept and desolute development

Jenny Dawe Yes Malcolm Fraser one of our top architects did say that. Has been an issue about devl of waterfront, several years back the plan were taken forward that block of flats for young professional was what was needed. Flats with very nice views but no kitchens and no famility facilities so have taken a view. New owners of Forth Ports has some new views so may be forced to look at the plans again.

John Bury head of planning Edinburgh council - I've been involved with Forth Ports for over 20 yrs so have seen te problems mistakes have been made but have been some achievements to be proud of. I wouldn't quite say was derelict and windswept. We put our own money into Ocean Terminal and that is an important facility.

Western Harbour represents a very early masterplan so would have a point there. Have to look at it over a 30-40 year period. We see the third phase will be industrially led development will eventually lead back to mixed use development.

Charles Hammond - yes easy to see development as in a sea of dereliction but that is regeneration. Malcolm Fraser had an imput into the new plan.

#waterfrontexpo Alastair Ramsay DJD gives Scotland market overview

By Stacey Meadwell on November 2, 2011 10:22 AM | No TrackBacks

*live blogging*

Alastair Ramsay, partner, Drivers Jonas Deloitte

Was asked to cheer the audience up but it is probably not the best subject to do that with that but will try.

Economic background - problems in the Eurozone, IMF is suggesting that growth at a global level is returning back to normal. Unfortunately the UK isn't returning back to normal.

Optimism is at an all time low.

Companies reducing cost is a priority but also looking at new opportunities

Capital markets saw a rapid decline in 2008 and bounce back ahead of rental growth but now in flat period of growth.

Commercial property in Scottish:

If you were an occupier looking for 75,000 sf space in Glasgow 2009/2010 lots of buildings available but now very little. (Rumour have tenant lined up in final building - Cuprun)

Edinburgh only has two buildings running out of grade A space

Aberdeen is very tight only 10,000 sq ft of city centre space

2012 is where we have some concerns as there is no new space emerging.2013 is where H1 in Edinburgh is due to complete.

Rental groth is the driver for investors coming in. From a peak in 2007 we saw a gradual decline in rents.

Demand is also key - public sector has contracted so have to look at private sector. Important to say that we are seeing some fairly strong branded names taking space are a number of requirements AON, British Council, Blackrock for example (Edinburgh and Glasgow).

Growth has flat-lined.

Number of overseas investors have been active in the office market which is encouraging.

Retail is an important sector and there are some encouraging signs - consumer growth compares favourable with UK average. We are seeing activity Forever 21 and Gap taking flagships stores in new development in Glasgow.

Suspect we will see more casualities in retail sector post Christmas.

Hoteliers are active either coming into the market or refurbishing.

Development drivers:

- Aversion to risk

- Finance difficulties - are banks in the market but are chasing safe bets. Investors will be London focused first before moving to the regions.

- Tennant demand questionable

- Public sector support - TIFs important for private sector to embrace this.

If there is no new space then is prospect we could lose jobs to other UK cities

Looking forward:

If companies looking to cut costs is opportunity for the regions to offer cost effective space

- rental growth won't turn the corner just yet

- emerging sectors - hotels and student housing both featuring strongly for investors

- investors will continue to chase prime but will also see opportunistic players come to the market and will see some price adjustment

- Eurozone - wouldn't hold your breath on a fix.

#waterfrontexpo Archie Graham, Glasgow city council on Commonwealth Games

By Stacey Meadwell on November 2, 2011 9:56 AM | No TrackBacks

*live blogging - typos may creep in*

Councillor Archie Graham showcased the what is happening around the city ahead of it hosting the Commonwealth Games:

Commonwealth Games July 2014 will watched by 1.5bn people on TV, with 500 TV cameras providing the coverage so we better be scrubbed up

8 of football matches in 2012 Olympics will also be played here.

In most cases venues will be available for public uses before the event which is extremely unusual.

Venues under construction include:

National Indoor Arena space for up to 5,000 spectators and communities facilities completion expected in 2012

Athletes village - new resi quarter 6,000 athletes and official homes. 1,500 sellable homes as well as affordable and rented accommodation.

Work underway. Homes will be retrofitted after the games

Scotstoun Leisure Centre - new squash courts

Cathkins Braes Mountain Bike circuit

Kelvingrove Lawn Bowls - improvement of facilities for communities as well as for the games.

Scottish Hydro Arena due for completion in 2013 will have community facilities and 154 jobs committed to local community - has already secured world artistic gymnastics championships in 2015 as well as the MOBO awards.

Preparations are going well and important that is happens alongside the waterfront development.

Want to make Glasgow more prosperous, greener, accessible and inclusive.

Riverside Museum on Clyde brilliant landmark since opening in June has received 600,000 visitors.

Clyde fastlink - last month Scottish Government announced £40m funding towards it. Key infrastructure will be in place in time for the games but fully completed by 2015. Will have ongoing economic benefits for the city.

Legacy website

#waterfrontexpo Opening address: Gordon Matheson, Leader of Glasgow city council

By Stacey Meadwell on November 2, 2011 9:27 AM | No TrackBacks

*Live blogging - so excuse any typos*

It's a fine day outside in Glasgow but before we head out on the tours we need to hear a bit more about Scotland's waterfront development plans and their progress.

Councillor Gordon Matheson kicks off proceedings

Starts with fighting talk: Carpet in my office is red so it doesn't stain when they are dragging out the bodies...

Three cities of Dundee, Edinburgh and Glasgow have recognised for some time the benefit of the waterfront for economic success. All cities are working together you'd be surprised how close we work together - of course there is banter.

Edinburgh and Glasgow combined are the second largest economy in the UK. We are international cities too.

Just a bit less than 1,000 days to go before commonwealth games.

Modern day Clyde waterfront is a far cry from the not to distance past when it traded with the world, heavy ship building etc. But the world doesn't stand still and we need to respond.

Clyde waterfront project stretches 13 miles and covers 3 sister council areas, Clyde Waterfront strategic partnership also comprises Scottish Enterprise and £3.5bn invested since it was launched creating many jobs homes and development.

BBC Scotland HQ has helped to establish Glasgow as one of UK most creative hub. SECC has played crucial role in boosting cities status on the conference stage. More international conference delegate - 25,000 - places it up 22 places to 29 in world conference rankings and ranks it second only to London.

Scottish Indoor Arena first major event in 2013 will be MOBO awards.

IFSD has attracted over 15,000 jobs in last 15 years. Last night planning was granted for a new leisure pavilion at Broomielaw to help create a more vibrant area.

Difficult economic times and we have challenging times ahead.

Today's top regional EGi stories (£)

By Nadia Elghamry on November 1, 2011 4:00 PM | No TrackBacks

Here are today's top regional stories from EGi. Subscribers can read the full story by clicking on the headline. A selection of stories are free to all or you can sign up for a free trial

Brazennose House plans get the nod

Unamimous approval has been given for PRUPIM's plans to redevelop Brazennose House in Manchester.

Pilgrim saves Plymouth Argyle

Green Pilgrim, part of James Brent's Akkeron Group, has acquired Plymouth Argyle FC from its administrators.

Sainsbury's lights up Blackpool

Muse Developments and Blackpool council have secured Sainsbury's as the anchor to their £220m Central Business District scheme.

GMPVF confirms Island buy

The Greater Manchester Property Venture Fund this morning confirmed its acquisition of the Island Site in Manchester, as revealed by EG early last month.

Analysis: CBD in danger as Cardiff's Local Development Plan falls again

By Nadia Elghamry on November 1, 2011 10:52 AM | No TrackBacks

Guest post from Gareth Barton, Turley Associates. Gareth Barton is an Associate Director in the Cardiff office of Turley Associates.

Yesterday Cardiff Council announced a further delay to its Local Development Plan (LDP). This means that the Council's LDP Preferred Strategy document is now not expected until October 2012, with adoption likely to be delayed until 2015. The LDP will set out Cardiff's housing, transport and economic policy until 2026.

This latest delay follows the withdrawal of the Council's previous LDP, which was submitted to Inspectors in 2010. Inspectors found the plan to be unsound, citing a number of evidence base issues and a lack of clarity in terms of the location and type of land to be allocated for housing. An LDP evidence base must be proportionate to the complexity of the planning issues prevailing - an issue that is becoming all the more apparent given Cardiff's rising population and economic significance to Wales.

The issues of housing supply and its location has been the subject of debate in recent months, with the council suggesting that Cardiff may have to look beyond its administrative area to accommodate its housing requirements and embrace a city-region model. This view follows recent Welsh Government publications and research that suggests that greater integration is required from an economic perspective, leading to greater regional cohesion in South East Wales.

The absence of up-to-date and coherent planning policy remains a hindrance to Cardiff's development, with the adopted Development Plan dating back to 1996. The Council is therefore heavily reliant on ad-hoc Supplementary Planning Guidance. There is a danger that the absence of an up-to-date policy framework, exacerbated by the latest delay to the LDP process, could have a knock on effect on the Council's proposed Central Business District (CBD).

Cardiff's planned CBD has recently been identified as one of five Enterprise Zones in Wales, with a specific aim of attracting financial services from outside of Wales. Details of how the Welsh Enterprise Zones will operate are yet to be fleshed out, but without an up-to-date planning policy framework there is a danger that confidence in achieving quick decision making through the planning process will be undermined, therefore discouraging big investment.

Related blog posts (free)

Solicitors launch 35, 000 sq ft office requirement in Cardiff

DPP questions Wales' planning review

Listen: Cardiff's spec development and the good and bad of Enterprise Zones