Commercial Property News

£5.5m will be invested to build a first phase of 35,000 sq ft high quality, flexible office space ranging from 2,500 up to 35,000 sq ft in Renfrew.

The new business park, to be called Riverside Braehead, will fill a gap in the market for businesses wanting to purchase their own offices and benefit from incentives to invest in commercial property, such as SIPPS (self invested pension plans). Rental options will also be available.

Riverside Braehead will provide much needed office space for Renfrewshire's buoyant economy, where employment is forecast to grow by 4% by 2011.

ATS Euromaster has rationalised its roster of property advisers in a drive to reduce costs and improve the quality of its estate. The UK's leading tyre maintenance company has appointed Gerald Eve nationally as property adviser for its portfolio of more than 525 properties following a competitive bid process.

Gerald Eve's Newcastle office is instructed to provide advice on ATS Euromaster's properties in the north east. The work will encompass all areas of property including rating, valuation, landlord & tenant, agency, planning, compulsory purchase, management, dilapidations and Investment.

A technician, with Glasgow builder Rok, is recommending young people take advantage of one of the many career opportunities available in the construction industry as highlighted by National Construction week. James McGuire, 63, has worked in the industry for 47 years and is currently working at Rok's North Lanarkshire site installing kitchens.

James, from West Lothian, comments: "There are some great opportunities in the building and construction industry for young people looking for a rewarding career. Modern apprenticeships these days give them the very best qualifications available to make sure they have chance of a long and fulfilling career. A little bit of determination and dedication is also required, of course!"


One young apprentice has heeded that advice and has signalled his intention to carve out a career in the construction industry. Apprentice joiner James Shearer, 16, joined Rok straight from school in August and is already looking forward to gaining his apprenticeship at Cardonald College through a day release scheme.

A new study of buildings in North America and the UK reveals a clear link between the market value of commercial property and its environmental friendliness.

RICS Chief Executive, Louis Armstrong, says:"40% of carbon emissions come from buildings. Finding incentives to make them ?greener? in design and operation is critical."

The international study was led by The Royal Institution of Chartered Surveyors (RICS) in partnership with 10 government and private sector organisations, and finds that green buildings can:

Earn higher rents and prices
Attract tenants and buyers more quickly
Cut tenant turnover
Cost less to operate and maintain
Benefit occupiers

For more information go to RICS Green Value website

Sunderland's Rainton Bridge has been chosen as the site for one of the largest job creation and regeneration projects ever undertaken in a former UK coalfield area.

Up to 3,500 jobs will be created at the prestigious business park, which is being developed by Sunderland City Council and international office and business park specialist, Akeler, by banking giant Northern Rock.

It has chosen the 55-acre park as the location for a new £60 million office complex, confirming Sunderland's growing reputation as a world-class centre for business.

The deal is a huge coup for the City of Sunderland and sees almost half of the 800,000 sq ft commercial scheme pre-let in advance of major construction work starting on site.

Kilpatrick Property Group Ltd has acquired 18 town centre retail units in Alloa, Clackmananshire from Waterfoot Properties for £1.98m. The units, located at Maple Court at the junction of Drysdale Street and Shillinghill, currently produce annual rents of £120,500 with the purchase price reflecting an initial yield of 5.8%.

The development, which extends to a total of 21,000 sq. ft of net retail accommodation, includes tenants such as the Post Office, Ladbrokes, Klick Munro, Iceland Frozen Foods, British Red Cross and a number of local traders.

Maurice Glen, Managing Director, Kilpatrick Property Group, says: "This acquisition is in line with our strategy of acquiring property assets within the retail sector in prime or emerging locations, which offer value enhancement potential over the short to medium term."

The vendors Waterfoot Properties were advised by Alan Watt Consulting

Leading property consultant King Sturge has announced that the Dale House office development in Stockport is to undergo a major refurbishment. Owned by Evans of Leeds, the whole building is undergoing a comprehensive refurbishment, at a cost of almost £1Million.

Ross Dixon of Evans Property Group says "We are investing a significant amount of capital into Dale House which will enable us to provide occupiers with a first class working environment within a highly visible location. Work has already started on site and practical completion is scheduled for December 2005."

Paul Smith, of King Sturge comments: "We are pleased to announce the refurbishment of Dale House, an undertaking that can only add value for existing and future tenants who will also benefit from the development?s central location in the heart of Stockport. It is also within easy reach of the M60 with it's access to the entire region."

CCG, one of Scotland's largest privately owned construction companies, has completed a £6.4 million new build housing development at North Possil for North Glasgow Housing Association one year ahead of schedule.

The development of 84 new homes for rent, comprising 72 family homes and 12 special needs homes, replaces outmoded tenemental properties with high quality, low-rise homes with private gardens.

Funded by Communities Scotland with assistance from Scottish Enterprise Glasgow to deal with poor ground conditions, the development includes a Digital Integrated Reception System which provides tenants with free broadband access and their own e-mail address, as well as freeview digital TV and radio channels.

Following the resounding success of Back Group's Manchester office - which opened for business last year - the company has announced a management buy-out, which will see three directors with an average age of 37 steer the 70-strong company forward and increase its £5million turnover by 33 per cent within three years.

Specialising in development, construction and property consultancy across a spectrum of sectors, such as offices, residential, retail, industrial, health, education and the arts, Back Group has developed a formidable business model whereby 75 per cent of income is generated through key accounts. Since the launch of the Manchester office in July 2004, Back Group has already needed to relocate to new offices on Church Street in Altrincham to accommodate the rapidly expanding team. The company's head office is in Birmingham, with an additional office in London.

Now after 28 years of being a leading player in the UK's construction and property sector, founder David Back has sold his share stake in the company to a management buy-out. A name change to DBK Back is being implemented to recognise the new principal shareholders Tim Downing, Duncan Berry and Steve Kelly.

Guy Cooke and Simon Hawkins, currently associates with Knight Frank in Leeds, have been promoted to partners.

Mike Dove, partner in charge of the Leeds office of Knight Frank, comments: "These promotions were very well deserved and reflect the strength and direction of our business. The future for Knight Frank in Leeds is very bright indeed".

Guy Cooke, who has been with Knight Frank since 1998, specialises in office agency. Simon Hawkins, who joined Knight Frank last year from Gerald Eve, is a retail specialist.

Lambert Smith Hampton has undertaken a deal that will see Tesco Metro expand by thirty per cent on Ecclesall Road in Sheffield.

The site, which includes the current supermarket and a parade of shops, is owned by Henderson UK Property Fund. LSH was appointed to oversee the management of the site in a bid to increase the value of this investment.


Tony Howlings, Asset Manager from LSH's Sheffield office, explains: "Henderson's fund was keen to see how the site could be actively managed in a bid to increase the investment made by its clients.


"The site had three vacant units on the parade. I therefore liaised with Tesco, which was thriving on the Berkeley Centre site, to see if expansion opportunities might be feasible.

"When these negotiations proved successful, we organised the surrender of Tesco's £105,000 per annum lease and the surrender of Marie Curie's lease subject to relocation to a vacant unit, to make Tesco's expansion feasible.

Tony concludes: "This is a prime case highlighting the value that an entrepreneurial property management team can have on an investment. We saw and acted upon an opportunity that not only benefits our client, but improves this suburban retail offering in South West Sheffield."

CALA Properties has secured the tenancy of yet another corporate tenant at its award winning development, Clydesdale Bank Exchange in Glasgow. Weir Group will relocate around 30 executive and support staff from its site in Cathcart, Glasgow to the £30 million, Grade A office development and will occupy the 4th floor which extends to 13,292 sq ft.

With only one floor remaining to be filled Clydesdale Bank Exchange has been the fillip in Glasgow's redeveloped International Financial Services District and indicates strong demand for the best Grade A office space in the City.

Acting on behalf of clients of Arlington Securities, one of Europe's leading independent investment management and property services businesses, DTZ
has purchased five buildings as part of a portfolio, in south Manchester, for £5,425,000 representing a 7.22% initial yield.

Comprising 2,519 sq m (27,117 sq ft) and 114 car parking spaces over four
office buildings, Century Park, Altrincham, provides a total income of £330,363
per annum. Located in one of the most popular office locations in south Manchester, the property boasts excellent infrastructure and high quality housing.

Gleeson Regeneration has announced the appointment of Trish McCauley as Sales Manager at its Chapeltown headquarters. Trish has been involved in property all of her working life and joins Gleeson from international property consultants, Savills, where she worked as an Associate in the New Homes Division in Nottingham. Prior to this Trish was an Associate Broker in her home town of Seattle, USA.

Lodge Road Partnership have successfully secured their first acquisition in Scotland with an off-market purchase of a standalone retail warehouse investment in Ayr.

The property located in Beresford Terrace within the town center is a new unit of 32,240 sq ft let to Matalan for a further 19 years at a rent of £437,500 pa. The passing rent reflects £13.50 psf.


The purchaser paid £7.65m for the investment reflecting a net initial yield of 5.40%.

Andrew Kubski, Investment Partner at Drivers Jonas Scotland, said: "We are delighted to have sourced and delivered this investment for Lodge Road, building on the portfolio they have assembled in conjunction with our National Investment Practice."

Photo-journalist Alistair Devine, is to unveil his first collection of photographs, Think, at Skypark, Glasgow's landmark business complex on 1st December 2005. On show will be a series of creative shots taken by Alistair for The Herald's Saturday magazine and will be on display until 28th February 2006.


Open to the public and all Skypark tenants, Think will take place in The Gallery, a dedicated exhibition area situated on the ground floor of the Skypark tower and will include a number of familiar photos.

Exhibiting at Skypark from 1st December 2005 to 28th February 2006

Monday to Saturday, 9am to 6pm

Steady Increase in Tender Prices in 2nd Quarter 2005

The price of new construction work rose a little faster than general inflation between 2nd quarter 2004 and 2nd quarter 2005, according to the latest Tender Price Index compiled by BCIS. However, the annual increase in tender prices is distorted somewhat by the large increase in tender prices in 2nd quarter 2004.

Looking forward, new work output growth is now expected to rise well behind trend in 2005, with new work output in the first half of the year falling by 2.2% compared with the same period in 2004. It is anticipated that growth in new work output will move a little ahead of trend in 2006, before rising significantly above trend in 2007. The main growth sectors are likely to be the public non-housing sector, and the private commercial sector as a result of PFI schemes reaching site and an improving offices sub-sector. Olympic based construction should also start to boost output from 2007. The forecast is based on the assumption that there will be an expeditious release of public funds.

Peter Rumble commented: 'With quite strong upward pressure from input cost increases, and with new work output expected to grow a little faster than trend in 2006, tender prices will rise well ahead of general inflation between 3rd quarter 2005 and 3rd quarter 2006. Over the second year of the forecast, input cost increases are expected to slow somewhat, but with new work output growth anticipated to be well ahead of trend in 2007, tender prices are forecast to continue to rise significantly faster than inflation.'

Retail property organisation BCSC has honoured property developer Everard Goodman with a lifetime honorary membership for his industry achievements and charitable work. The award was presented by BCSC President Bob De Barr at a BCSC industry luncheon held on 28 September.


Goodman was recognized for his contribution to the UK shopping centre industry and his considerable charity work with a range of UK charities. He built up Tops Estates before selling his holding to Land Securities in May of this year. The portfolio included seven shopping centres with adjacent office properties with centres such as the Victoria Centre in Harrogate, Clayton Square in Liverpool, the award-winning Leeds Shopping Plaza, and the West 12 Shopping Centre in Shepherd's Bush, London.