March 2011 Archives

So, Westfield announced yesterday that it has refreshed its plans to extend Nottingham's Broadmarsh Centre.

Is that the same Broadmarsh that Westfield first planned to expand in 2002? The same Broadmarsh that Nottingham city council has been pleading with Westfield to redevelop for years? Oh yes, the very same. So, why submit even bigger plans and why now?

Well, it may just have something to do with the fact that last month Capital Shopping Centres confirmed plans to enlarge its Victoria Centre in the city. Would that be the shopping centre just a carrier bag's throw away from Broadmarsh? Well, yes it would. And the shopping centre where CSC is opening a public exhibition next week? Yes, indeedy. Coincidence, surely? Hmmm, you decide.

Disgruntled market observers have their own views, but are reluctant to broadcast them publicly. Very few will go on record to challenge the might of the Australian developer. Behind the scenes, though, they are questioning whether this latest proposal for Broadmarsh will get any further than its predecessors. Blaming delays in Nottingham on the global downturn as Westfield continues to do, doesn't wash, they argue, pointing out that the crisis hasn't stopped Westfield building brand new eponymous malls down South in White City and Stratford.

A spokesperson for Westfield responds: "We can see why people may think this but we've been working on making these plans viable and deliverable for the last 18 months it's a long programme." Whether that will be enough to reassure Nottingham natives remains to be seen.

Nottingham city council is legally obliged to judge the renewal application on its merits. However retail property experts suggest that before making any decisions councillors may want to confer with their colleagues in places like Bradford and Lisburn, Northern Ireland. These are centres where Westfield has also promised much, but, so far, simply not delivered.

Yesterday's Budget is, in the main, being hailed as a good one for the property industry. The announcement that three of the 21 new Enterprise Zones will be in the Midlands was a hot topic for debate as was the relaxation of the planning regime and the decision to drop REIT conversion charges.

Here are the views of some of the region's key commentators. Do you agree? Join the debate and post your comments below.

Martin Guest, managing director, CBRE Birmingham:

"It was interesting to see the important role that government proposes to give Local Enterprise Partnerships (LEPs) in formulating the Enterprise Zones, particularly at a time when many LEPs are trying to get to grips with their purpose and governance structure."

Martyn Cartwright, director, Barberry Developments:

"Whilst the detail regarding the policy tools to be made available is still awaited, business rates have been a major deterrent to speculative development over the past few years particularly in the manufacturing sector."

Ashley Hudson, Knight Frank Birmingham:

"Mr Osborne revealed that he now expects the economy to grow at a slower rate than previously expected this year, with the Office for Budgetary Responsibility cutting its growth forecast from 2.1% to 1.7%, however he has recognised that growth is fuelled outside of London and the West Midlands looks set to benefit most specifically from the introduction of a number of new Enterprise Zones."

Gary Cardin, head, Drivers Jonas Deloitte Birmingham:

"The headline news that the default answer to development is "Yes" will help give comfort to developers and funders but how this statement is to be squared in the localism agenda remains uncertain."

Rob Maxey, HEB Nottingham:
 
"Legislation regarding enterprise zones should be properly structured so that the end result is development which is actually beneficial in terms of employment creation and boosting the area's economy."
 
Deborah Walsh, head of public policy and communications, RICS West Midlands:

"Birmingham & Solihull and the Black Country are included among the first enterprise zones announced and we hope this will prove beneficial. However, it is not clear how effective new enterprise zones will be in stimulating long term sustainable development beyond an initial boost

Louise Brooke-Smith, managing director, Brooke-Smith Planning Birmingham:

"We are pleased that Mr Osborne has specifically highlighted planning issues as a way to support the construction and development sectors. The proposals to allow the change of use of offices to provide new residential units seem positive in the first instance."

Craig Straw, Innes England, Nottingham:

"It's good news that both Derbyshire and Nottinghamshire are amongst the 21 areas that have now been identified for Enterprise Zones in the future, although we will obviously have to wait to hear about the finer detail of what these areas will have to offer. I think it is critical to learn lessons from the previously introduced zones."

Mark Radford, director of rating, Jones Lang LaSalle Birmingham:

 "We welcome this move to help small businesses [with rates relief] indeed this is a scheme which has worked very well. It is disappointing however that the Chancellor hasn't seized the opportunity to reduce the empty rate burden for owners of larger properties."

David Meecham, partner, Pinsent Mason, Birmingham:

"The incentives [announced in the Budget] - whether tax breaks or less red tape - may attract businesses and jobs to the area but these are often simply displaced from surrounding areas or are temporary, disappearing when the reliefs and incentives expire. Another concern is whether these will have a distorting effect on the proper operation of the market."

Christine Braddock, president, Birmingham Chamber of Commerce:

"With the majority of Birmingham's businesses relying on transportation in some way and with inflation currently standing at 4.4%, it was integral that next week's fuel duty rise was postponed to alleviate pressure."

Pic courtesy of altogetherfool via Flickr.com

There has been a mixed reaction to the Budget from the press across the Midlands this afternoon. While the details are still in the process of being analysed, here's a round-up of intial thoughts...

Business Insider says the budget was "generally well received" in the region: and headlines on the creation of three enterprise zones in the Midlands.

In the West Midlands the Birmingham Post and the Coventry Telegraph have jointly run a live blog:

The Birmingham Post previously reported that local businesses are cautiously welcoming the return of enterprise zones 

While the Wolverhampton Express & Star hones in on Ed Milliband's jibes at George Osbourne:

The Midlands Businessdesk.com focuses on the creation of the Birmingham and Black Country enterprise zones:

Surprisingly, BBC Birmingham & Black Country has not yet posted any Budget reaction:

In the East Midlands the Nottingham Evening Post leads on the reduction in fuel duty:

The Derby Evening Telegraph sticks with an overview of the key Budget announcements:

As in Birmingham, BBC Nottingham has not yet posted any Budget comments:

Watch this blog for further reaction reaction from the region to today's budget.  

By Tim Garratt, director at East Midlands-based agent, Innes England

MIPIM is always an interesting experience.  It's a world property show and you get to meet people from all parts of the globe . Last week I met the CEO of Argus Software - the folks who write the 'only' valuation software worthy of mention.

I mentioned where I was from - and until we did the Robin Hood 'thing' he wasn't sure. London sometimes seems to be the only place in the UK?

But it seems that this is not just Nottingham centric. Our sister cities in the East Midlands get the same treatment.

The East Midlands has a lot to offer - and my involvement this year at MIPIM is as part of the Team Nottingham 'crew' (pictured below). And it went well - we had a great Indian meal on Tuesday night - and hosted a drinks party for nearly 300 people on the harbour in the port of Cannes on Wednesday

.

We have pressed the flesh with developers, investors and occupiers together with countless fellow professionals - from the UK, Europe and beyond.

My impression of MIPIM this year was that it was quieter - that there are very few cities with 'flash' displays (aka yachts). The cities that do occupy the Palais De Festivals seem to be from the Eastern Block!

We went with a great team - but on a no frills, no nonsense basis. We had a consistent message to play out - that despite the city not being able to attend as it has for the last few years the private sector still values MIPIM. On more than one occasion last week I was told that this is 'The Big Society' being played out.

We took with us Lorraine Baggs from Invest in Nottingham and she, along with Mike Taylor from Nottingham Regeneration Limited have been able to sell the city without favouring any of the private sector partners.

So, without putting too fine a point on it - Nottingham is still very much open for business - that's not changed. But perhaps the emphasis will be on the private sector for the next few years!

Come and see us in Nottingham - we have 'leccy and mains gas and drains. And it's not so high up that you'll get a nosebleed....

Well here we all are back in Blighty after last week's MIPIM whirlwind. For those in the Midlands who didn't attend (and there were many who didn't), here's a quick round-up...

Overall, MIPIM didn't disappoint. Yes the Croisette was quieter than usual but the Palais (aka the bunker) was heaving. It was a very focussed event with much more emphasis on smaller, private dinners rather than big flashy parties, and as a networking opportunity it remains unparalleled.

When it came to announcements London tended to hog the headlines and the modest number from the Midlands had mainly been trailed in the media before MIPIM. So it was particularly baffling that one of the biggest genuine first glimpses was left almost until the end of the show. Impressive CGIs of the new John Lewis about to be built as part Birmingham's redeveloped New Street station (pictured right) were unveiled on Thursday night, after the property press had gone to print and many delegates were already packing their bags for home. There will undoubtedly be questions this week about whether Birmingham city council and Network Rail got the timing wrong and missed out on some much-deserved attention.

Yesterday saw a good start to the annual MIPIM event. Although, initially noticeably quieter than usual (this is my first Mipim for two years and the atmosphere was definitely more subdued), people are certainly more focussed and events are generally on a much smaller scale.

I caught up with Derby City Council leader Harvey Jennings who was keen to tell me - ahead of the announcement made today - that five major schemes are to benefit from the city's £10m regeneration fund. This will be rubber stamped at a council meeting next Tuesday and details will be announced then. However, Jennings did say that Darley Abbey Mills looks set to benefit from a £900,000 contribution for a refurbishment programme.

Next on the Brum stand - some of you may have already seen my tweets about the extraordinary lighted floor on the stand which certainly was a talking point - and an interview for EGTV with Birmingham City Council's strategic director of development Mark Barrow (watch out for this on EGi) who talked about Birmingham's aspirations for MIPIM.

More one to one meetings then Birmingham's welcome reception and keynote speech from Mike Whitby.

Whitby outlined how plans to develop the 1.5m sq ft mixed-use Paradise Circus site can now push ahead. After an agonising wait, the proposed £500m redevelopment are back on track thanks to the government ruling on the city's controversial central library building.
The day was rounded off nicely with a tasty curry at the Team Nottingham dinner at the Maharaja restaurant. Hats off to the team who have really rallied round to give Nottingham a presence at MIPIM this year.

You can read more about what went on today at MIPIM in our daily digital edition. You can also see all the MIPIM news stories and video's at www.estatesgazette.com

 Click below to view the latest film shown at Mipim this morning about Derby's continuing renaissance.

By David Cockcroft, assistant director (city centre and development services), Coventry City Council

Everyone who attends MIPIM always has to fight off the sniggers about a few days in the sunshine in France - but equally they know that if they have done it properly, it means long hours and plenty of work.

Coventry has been - so I gather - at the show for 17 years and was one of the first UK cities to push its wares to the worldwide property market.

We know, and have evidence, that the approach of recent years when the council and the private sector have pooled their collective resources it has brought rewards.

Well, here we are at the end of the week and MIPIM is so close you can almost touch it. But before we jet off to sunny (fingers crossed) Cannes, don't forget to take a look at the West Midlands Focus in tomorrow's 190-page bumper edition of Estates Gazette.

I'll be talking to Sanguine Hospitality chairman Simon Matthews-Williams about Sanguine's ambitious expansion plans for Birmingham. Which links in nicely to David Quinn's article on hotel conversions becoming increasingly attractive to developers as office schemes struggle to draw tenants.

Meanwhile, David Thame takes a look at the contenders for the first £300m slice of the £1.4bn Regional Growth Fund and seeing which schemes will have the X Factor.

As AWM's assets are being prepared for one of the biggest transfers in history, David Thame talks to concerned local agents who fear that many sites could become derelict as the agency struggles to transfer them to the HCA.

Elected mayors also come under the spotlight as David Quinn finds out who's thrown their hat into the ring in Coventry and Birmingham and how an elected mayor would effect the region's property market.

And last but by no means least, Kurt Jacobs catches up with award winning architect and Eastside masterplanner Glenn Howells who tells us what he thinks of the property sector in the region.

And finally... I shall be making my way over to Cannes on Monday for my first 'austerity MIPIM.' It will be interesting to see just how the event has changed in the last couple of years compared to the pre-recession halcyon days.

I'm delighted to say that we have a guest blogger sitting in the hot seat here at the Midlands blog on Monday. Tune in then to find out more..!

 Pic courtesy of Masao.M via Flickr.com

One of the more interesting (and less depressing) side effects of the recession is the mini-boom in the hotel sector. I was reflecting on this after meeting up with Simon Matthews-Williams, whose hotel management company Sanguine is likely to be bringing not one but three hotels into central Birmingham in the next 18 months. Read up on the full interview in this Saturday's West Midlands Focus in the Estates Gazette.

Anyway, my chat with Simon highlighted the irony of the fact that while the market for spanking new-build offices is in the doldrums, the star is rising for faded (typically 1960s/1970s) second-hand office blocks, previously written off as basket cases (again more on this in Saturday's EG).

Perhaps the most iconic of former office towers is Birmingham's Rotunda (pictured right and below), converted into chic apartments by Urban Splash in 2008.

Spotting a niche in the market back in 2005 Manchester-based Staying Cool started buying up some of these flats for the UK's nascent apart-hotel market. Was it a good plan? Staying Cool thinks so. It now owns 22 units in the Rotunda (a mix of studios, 1 and 2 beds and balcony apartments, along with the obligatory penthouse on the 20th floor) and is aiming to almost double ownership to 40 by the end of the year.

Estates Gazette is turning the spotlight on the East Midlands in its 16th April 2011 publication. If you would like to get involved with the features listed below, please contact the relevant writer direct by Thursday 10th March.

We look forward to hearing from you...

Elected Mayors
An in-depth look at what impact having an elected Mayor could have for the city.
Contact: David Thame, freelance writer, 01544 262 896 dthame@clara.co.uk

Nottingham offices & retail
An in-depth look at these markets
Contact: David Quinn, freelance multimedia journalist, 07841 115 601, david@wordsdept.co.uk

Leicester and Derby offices & retail
An in-depth look at these markets
Contact: David Thame, freelance writer, 01544 262 896
dthame@clara.co.uk

Northamptonshire
Analysis of the area's regeneration plans
Contact: David Quinn, freelance multimedia journalist, 07841 115 601, david@wordsdept.co.uk

Lincolnshire
An in-depth look at the property market in the area.
Contact: David Quinn, freelance multimedia journalist, 07841 115 601, david@wordsdept.co.uk

Market in Numbers
This will cover offices, industrial and retail.
Contact Lisa Pilkington, Midlands editor if you can supply stats, 07771 673458 lisa.pilkington@estatesgazette.com

"Calling all (un) talented people working in the property industry," not my words, but the tongue-in-cheek call to arms from the organisers of the ever-popular alternative Brenda Awards (Birmingham Real Estate Novel Development Awards) hosted annually in the city.

Yes, the 2011 Brenda Awards are definitely going to be different. Apparently "anything goes" with event organiser Jilly Cosgrove of marketing, design & PR agency Barques calling for a host of singers, dancers, stand-up comedians, jugglers and even animal acts to take part in the Britain's Got Talent-inspired awards show to be held on 27th May at the Burlington Hotel.

Putting my thinking cap on I could think of a few "talented" people out there... the first that springs to mind is Opus Land director Gareth Williams who delighted a throng (including me) at last year's IPF dinner with a rousing rendition of the Welsh national anthem! He really was rather good. Go on Gareth, give it a go... 

If you can think of any others, or indeed if you'd like to share your talents with around 300 property guests, all acts will be welcomed. You can go it alone or be in a group.

Filmed auditions will take place at the end of March at a venue to be announced. As well as the Brenda Awards there will be an additional prize for the winner of the Birmingham's Got Talent Competition.

It's all for a good cause - the Property for Kids charity - so come on Brum, show us you've got some talent.

Send details of what you can do and the name of your act to jilly@barques.co.uk