Gateway Starts

With funding agreed, preliminary work is starting on the Mersey Gateway project that will bring a six lane toll bridge between Runcorn and Widnes. Steve Nicholson of Mersey Gateway said: “The agreement represents the best possible deal for the public purse and means that we can focus on delivering a project that will bring benefits to local people, commuters and businesses across the region.” It comes at a time of increased development activity in the area, epitomised by Peel getting the green light for the £175 million Trade Centre in the Wirral Waters scheme at Birkenhead Docks. Also in Merseyside, Barnfield Centric, a joint venture of Capital & Centric and Barnfield Construction, has started building the 7,618 sq.m. at the Estuary Banks Business Park, Speke, South Liverpool. The scheme has been helped with £2.54 million from the European Regional Development Fund.

The twenty hybrid units can be used for offices, research & development, light industrial and warehouse accommodation and come in a variety of sizes.

Cauldwell joins Prince

The role of local entrepreneurs in regenerating their areas has been a key factor in many parts of the UK, not least in the North West through John Whittaker of Peel.

Now we have John Caudwell, who created a successful mobile phone business employing thousands in Stoke-on-Trent, with his involvement in the conservation and regeneration of the Middleport Pottery in his home town.

This has also become another project for the Prince of Wales’ charity, Tthe Prince’s Regeneration Trust. The objective is to create local jobs, attract new business to the area and ensure that production of the Middleport blue and white Burleighware remains in Stoke.

“In an era of invisible and largely electronic economy, it is sometimes forgotten that everything we know today was built on an industrial and manufacturing revolution, which bred incredible craftsmen and products and made Britain a manufacturing powerhouse.

Coming from an engineering background myself, I really appreciate the skills required in making and producing quality products,” Caudwell said.

He added that “nowhere on earth are the skills and craftsmanship of working with clay, water, heat and colour so deeply imbedded in the DNA of the population and it is crucial that this is preserved in Stoke.”

Stoke already benefits from the skilled development by St Modwen, which has now submitted a planning application for the latest phase of the Etruria Valley development, an area which is at the heart of the city’s pottery history.

This will see an increase of 16 acres in the Etruria Valley Business Park, which is part of the wider Festival Park area, once the home of the Shotton Iron and Steel Works. The joint venture of St Modwen and the city’s regeneration company aims to build a mixture of offices, manufacturing and storage space.

Since the regeneration plan for the area was launched in 1988, there has been development of 125,415 sq.metres (1.35 million sq.ft.) which has included a large contact centre for Vodafone and a new factory for Wade Ceramics.

Backing Birchwood

Cantt Pak has added to its holdings in Birchwood Park, Warrington by buying Washington House and Allday House advised by Pin Property Consultancy, whose MD, Nasira Majid, won Woman in Property and Outstanding Business Woman of the Year awards at the first North West & Isle of Man Women in Business Awards.

The two buildings total 9,755 sq.metres (105,000 sq.ft.) with Washington House occupied by URS, an engineering consultancy, while Allday House is empty. Imran Younus of Pin said: “We will soon announce details of the refurbishment programme that will totally transform Allday House. We have already had interest from potential occupiers.” DTZ acted on the acquisition. Also in Warrington, Allen & Appleyard has taken the 1,505 sq.metres (16,196 sq.ft.) Unit 3, Taurus Park, Europa Boulevard.

Holding up

It may surprise the more pessimistic forecaster in the UK, but the regional commercial property market is holding up well and is set to at least match last year’s outcome.

Among the major cities, Manchester has the best balanced market, helped by the scale of its economy and strong entrepreneurial spirit as exemplified by Media City and Spinningfields.

What is happening is that the downturn in the UK economy is providing a test for all regional economies and markets and those with the greatest resilience are emerging as stronger entities. To some extent the fierce competition between Manchester’s two football teams illustrate that spirit.

Analysing the first nine months’ figures for regional office markets, Jones Lang LaSalle (JLL) expects aggregate take up by the year end to equal 2010. JLL notes that in the third quarter rents in Manchester increased by 5.3% on the
previous three months and the Grade A vacancy rate is only 2.1%. Given the tough market, those are impressive figures. Even so, Peter Skelton of Lambert Smith Hampton said: “The market is extremely quiet and it appears that a short term approach has returned bringing a lack of decision making.

That contrasts with the start of the year when there was expectation that we were overcoming the financial problems in the UK.” In his view, the office market lacks direction and there is no confidence that it has reached the bottom. One of the future problems could be the amount of property that will be released by the banks holding it because of bad loans.

So far, financial institutions have been unusually careful in the release of this property but some is being filtered out, notably from Irish sources. In fact, the overall picture of the market can be painted in brighter colours because of planned new development and demand from large companies. An indication of the demand is that there are requirements for at least 27,870 sq.metres (300,000 sq.ft.) of Grade A offices, led by BUPA with a need for 13,006 sq.metres (140,000 sq.ft.).

The impetus is that a majority of its leasing contracts end in 2015. Another major requirement is from Jacobs Engineering for a regional headquarters of 9,290 sq.metres (100,000 sq.ft.). In this case there is the question of whether the company takes existing space or goes for the option of design and build. Also in the market for a large office is the insurance company Aviva.

Winning Design?

A reminder of the quality of the new developments in Salford Quays has come with the short listing of the MediaCity footbridge for an award by the Institution of Structural Engineers. The structure is a cable swingbridge providing pedestrian access over the Manchester Ship Canal into the heart of MediaCity.

According to the organisers of the award for structural and engineering excellence, the footbridge has been designed to respond to the particular geometrical constraints of its location. It anticipates future redevelopment of Trafford Wharf to the south and in conjunction with the existing Lowry Bridge enhances pedestrian links for the area as a whole. The results of the competition for the award, which has been in operation since 1966, will be announced in November.

The impact of MediaCity on Greater Manchester has been highlighted by Property Secrets, an investment organisation. It listed a number of positive points for the city, namely: The movement of thousands of BBC personnel from London is having an impact on the residential market and a range of media and creative organisations; A 2.7% increase in the turnover of retail businesses in the year to March, according to the data organisation CityCO; A 12.8% rise in passenger numbers at Manchester Airport between February and March; A report by Knight Frank dubbing Manchester as one of the UK’s best cities with the strongest investment potential. Alan Forsyth of Property Secrets said: “Demand for new properties in prime locations is experiencing strong growth and increased job opportunities, such as in Manchester, has meant an increased number of people buying properties in the city.”

A similarly upbeat analysis of the impact on the local office market has come from officebroker.com. It reports increased demand from local businesses for office space in the area through the impact of 2,500 employees moving into MediaCity. Jim Venables of officebroker.com said: “As a company we have witnessed an increase in demand in and around Salford Quays since the beginning of the year, a rise which is reflected in the personal experiences of many local providers we work alongside.” Mark Canning of Canning O’Neill said: “Our experience backs up the optimistic views of Salford Quays where, for example, half the Metro building has now let with Insight taking 1,672 sq.metres (18,000 sq.ft.).” The impact of MediaCity has brought a host of lettings at Digital Park and Digital World Centre. For example, Swiss Post has taken Unit 3 at Digital Park as an extension to its existing facility. Canning said of another new scheme, the Soapworks development, that “we are seeing considerable interest from potential occupiers.”

Looking to the future

Two major projects are leading the way in the economy of the region, offering a focus for future growth. The attraction is that Peel’s MediaCity and expansion plans for Manchester Airport are in sectors that offer extended growth and the use of technology.

Indeed, the scale of both projects is exceptional for a regional city. MAG Developments has selected Jones Lang LaSalle and Drivers Jonas as leaders of planning and commercial delivery of Airport City, the Enterprise Zone project, the initial stages of which were worked up by Urban Strategies of Canada. MAG’s John Atkins commented: “This will not be one development but a place making project over a 10 to 15 year period. It is imperative that we ensure that Airport City is of the highest quality and international standing.”

The development has already received occupier enquiries. At the moment the main demand is expected from logistics, freight forwarders, advanced manufacturers, research and development and health related users. Bob Dyson of Jones Lang LaSalle said: “It can evolve into an integrated business district in its own right providing a comprehensive range of commercial facilities, services and revenue streams.” Charlie Cornish, MAG Chairman, said Airport City could create 7,000 jobs as well as create revenue for re-investing in Greater Manchester. The development is taking place on land between the airport and Wythenshawe, to the north of the airport. Important connections are to the University Hospital of South Manchester (UHSM) Mediapark initiative and the regeneration of the town centre. It will require considerable investment in the infrastructure, which will help the whole of south Manchester. But it has the advantage of the airport’s international network.

This connectivity can be seen with the all inclusive package which MAG has launched, aimed at attracting small and medium sized enterprises (SMEs) and start up businesses to newly refurbished offices. The property is 308 Avro Way where suites up to 186 sq.metres (2,000 sq.ft.) are being offered at an all inclusive price of £215.20 a sq.metre (£20 a sq.ft.). Will Kennon of letting agent CB Richard Ellis, joint with Regional Property Solutions, said: “Locations such as the airport are becoming more popular for providing a combination of amenities, an established public transport system and extensive car parking.”