Commercial Property News

Corporate and commercial law firm SJ Berwin's real estate department has advised British Land on the sale and leaseback of a portfolio of eight Somerfield supermarkets for £20m.

The stores were in Cleethorpes, Immingham, Kirkby, Leeds, Banton Gorton (Manchester) and two in Scotland: Cumnoch and Hamilton. The leaseback rents are on 25 year RPI-linked leases.

The SJ Berwin team was led by real estate partner Lewis Myers, assisted by associate Jason Tann. Andrew Glynn and Simon East of TLT Solicitors acted for Somerfield.

Semple Fraser recently acted in Scotland for Land Securities Trillium on the acquisition of a portfolio of hotels from Accor S.A., the fourth largest hotel operator in the world.

The portfolio comprises 30 hotels, representing approximately a third of the hotels currently owned or operated by Accor in the UK. The transaction consideration was £439m with a commitment to contribute around £35m of capital over four years towards property improvement works.

Semple Fraser acted in conjunction with Nabarro Nathanson in relation to the Scottish part of the portfolio, comprising 2 hotels in Glasgow and 1 in Edinburgh, for a value of around £20m.

LST will lease each hotel back to Accor on 84-year leases, which will include 12 year rolling tenant breaks, while retaining responsibility for the lifecycle maintenance of the core fabric of the buildings. The 30 hotels, which are operated under the IBIS two-star and Novotel three-star brands, are located in established city centre locations or near international airports across the UK.

Concerns at the potential disadvantage faced by the Scottish business community were highlighted today by the Royal Institution of Chartered Surveyors in Scotland (RICS Scotland), following Chancellor Gordon Brown's budget announcement on the Planning-gain Supplement (PGS).

RICS Scotland planning spokesman, John Duff, said: "Little detail is yet available on the plans for implementation in Scotland, a situation which is unlikely to improve in the coming months due to the forthcoming parliamentary elections in May. Divergent planning and local government systems mean that much Scotland-specific detail will still need to be worked out, including the best way to ensure that benefits of PGS are seen in the areas where the tax is raised.

"RICS Scotland urges the new administration, when appointed, to make the Planning-gain Supplement a policy priority. We further urge that comprehensive engagement with stakeholder organisations continues."

In general, RICS has given a cautious welcome to the national measures outlined in today's budget.

However, the Government has still not been clear over the its understanding of how local provision of infrastructure actually comes about and where responsibility for infrastructure works to be carried out, or funded through PGS will actually lie.

The RICS supports the call for developers to be better able to help in infrastructure planning in their areas but reiterate that PGS would be better focused towards only large-scale schemes, with small schemes including minor changes of use, subject to the existing section 106/ 75 agreements.

The RICS is surprised at the emphasis on infrastructure as this is some way removed from housing provision (the original reason for introducing PGS). Clarity is needed over the way in which PGS would work with section 106/ 75 agreements. Would these be curtailed? Work alongside PGS? Removed altogether?

Knight Real Estate has sold 2-8 Albyn Place to a private investor

Leading commercial property developer Knight Real Estate has sold 2-8 Albyn Place, Aberdeen to a private investor for £4.89m reflecting a net initial yield of 5.25%.

The property comprises circa 13,000 ft² of Grade A office accommodation within a listed building which has been completely redeveloped and refurbished by Knight. It has been transformed from a dated granite townhouse into modern Grade A office accommodation over four floors.

The end result is a prestigious office development with car parking located at the heart of Aberdeen's business district. The building was been pre-let to Genesis Oil & Gas Consultants for a period of 15 years at a rental of £21 per ft².

Commenting on the deal, Simon Cusiter, Partner at King Sturge said: "Knight's foresight and confidence in the Aberdeen office market has been rewarded with the successful conclusion of this deal."

James Barrack, Managing Director of Knight Real Estate added: "The sale of this office provided an excellent opportunity for Knight and we experienced interest from a number of potential buyers which reflects the on-going strength within the Aberdeen market."

Simon Cusiter of King Sturge advised KRE.

The scale of the challenge facing three major Scottish cities has been highlighted in a unique report launched by the Royal Institution of Chartered Surveyors in Scotland (RICS Scotland).

'City Climate Challenge: your city, your responsibility' examines the key challenges for Edinburgh's transport network, Glasgow's energy supply and energy demand in Inverness. By comparing current levels with UK targets to cut carbon emissions by 60% by 2050, the results give a dramatic insight into how our cities could look in the future, for example:

Edinburgh: 57 500 fewer cars on the road or a 35% reduction in the average distance driven by 2050.

Glasgow: 1,344 wind turbines or 35 Glendoe Hydro Schemes will be needed to supply energy for Glasgow alone based on the city's current usage

Inverness: every building will have to perform to the highest standards of energy efficiency to just meet the 60% cut, based on half the city's current growth rate.

The findings reinforce the need for urgent action at national and local level to find different transition pathways to a low carbon city of the future.

Director of RICS Scotland, Graeme Hartley, said: "The built environment affects every aspect of the way that we live and work, and therefore commands a huge influence over carbon emissions and climate change. We need strong leadership from Government and joined-up policies that will make the most of the planning, transport and construction expertise that already exists.

"This report proves it would be foolish to sit back and hope that technology will solve the problem. Doing nothing is not an option. The questions are how much we will do, and how quickly."

The research has highlighted a worrying lack of available data on the built environment - such as the number and types of buildings, usage and floor space. This will make it difficult to set benchmark standards, draw meaningful comparisons and chart the progress of reducing emissions. RICS Scotland believes that without this information, our towns and cities will struggle to understand the scale of the challenge affecting them and 'how much less' they need to achieve in real terms. A unified system of measurement and data capture is needed across all local authorities in Scotland to enable this information to be collated.

Launching the report RICS President, Graham Chase, said: "Scotland is a country with a strong history in innovation and technological advancement. Now, more than ever, we need to harness the significant experience of our professionals, businesses and universities in order to shape the cities of the future and meet our carbon reduction commitments. This is not just about figures and targets: it affects the choices we make, the lives we live and the legacy that we want to leave for future generations."

Knight Frank has provided expert advice in a landmark case at the Court of Session that could have major implications for Scotland's retail sector.

Andrew Oswald, Managing Partner at Knight Frank, provided expert property and valuation advice at the Scottish Court of Session which, on Friday 9 March 2007, ruled in favour of Douglas Shelf Seven Ltd, the landlord of the Whitfeld Shopping Centre in Dundee, for the first time in the history of Scottish law.

The landmark ruling in favour of Douglas Shelf Seven Ltd against the Co-operative Wholesale Society and Kwik Save, awarded over £600,000 in damages (£450,000 capital loss and £149,000 in past losses, as well as interest on past losses) to the landlord.

The ruling centred on the 'Keep Open' clause in a supermarket lease, which was designed to ensure that the anchor tenant, in this case the Co-operative Wholesale Society, continued to trade. Anchor tenants underpin the profile and draw of a shopping centre and are key to its commercial success and reputation.

The Co-operative Wholesale Society's long lease at the Whitfield Shopping Centre in Dundee allowed them to sublet the unit to Kwik Save, which was trading as Shoprite, but closed the premises in 1995. This put them in breach of the 'Keep Open' clause. The landlord chose to sue for damages resulting from the breach of the 'Keep Open' clause.

Douglas Shelf Seven Ltd had to establish that there was indeed a loss and to quantify that loss during the 66-day case where they were represented by legal outfit, McClure Naismith.

The ruling in favour of the landlord represents the first time such a decision has been made in Scotland to award damages for breach of a 'Keep Open' clause.

Andrew Oswald, Managing Partner at Knight Frank, said: "This has been a lengthy but very interesting test case in relation to the 'keep open' clause of a supermarket lease. The ruling has sent a word of caution to all landlords and tenants in the retail sector and will have an impact on negotiating the terms of a lease, specifically in relation to the 'keep open' clause, which they will have to adhere to. Both landlords and tenants will now have to be fully aware of the consequences of breaching the 'keep open' clause and ensure that it is given due consideration when agreeing leases."

The outlook for the Yorkshire commercial property market is bright according to the findings of the Lambert Smith Hampton 'Weather Map' report. The report's highlight is the Sheffield office market with rents predicted to rise by 18.9%, the highest increase in the UK.

Current prime office rents in the city are £18.50 per sq ft, however this is set to increase to £22 per sq ft in 2007, and as a result Sheffield shows the highest office market rental growth out of the 36 areas in the UK surveyed.

The office market in Leeds is also set to remain fair with a rise of 4%; taking rents to £26 per sq ft. Nationally the office sector will continue to lead the market by rental growth in 2007.

LSH'?s analysis of 36 UK and Ireland office centres reveals that office rents will rise from an increase of 6.1% in 2006, to peak at 6.8% in 2007. They will then fall back to 6.6% growth in 2008, and 5.8% in 2009. The hotspots are headed by Sheffield, followed by Hemel Hempstead and Newcastle.

Robin Beagley director at LSH's Leeds office says: "The office market across Yorkshire will be driven by business investment, employment growth and the current lack of Grade A space. The recent trend has increasingly been for occupiers to pay a premium for quality space, such as in buildings with strong sustainability features."

Meanwhile, LSH's analysis of 35 UK and Ireland industrial centres reveals that industrial rental growth will accelerate from 1.4% in 2006, to 2.9% in 2007 and 3% in 2008, before settling down at 2.8% in 2009 per annum.

The hotspots are headed by Peterborough, where prime rents are expected to increase by 10.0% to £5.50 per sq ft, followed by Glasgow and Birmingham. Leeds and Sheffield are also set to see growth well-above the UK average at 4.5% and 4.8% respectively, resulting in rental heights of £5.75 and £5.50 per sq ft.

LSH predicts that new and emerging centres, including Sheffield and Doncaster, will grow in importance, due to the continuing strength of the logistics sector's demand for distribution space, which is driving up land prices in well-established distribution locations, as well as planning restrictions and the high cost of labour.

The dominance of the logistics market in the industrial sector will be driven by further growth in the retail segment, particularly the case at the larger end of the market, with the trend for sheds over 100,000 sq ft set to continue.

Guy Gilfillan, head of LSH's Sheffield office, says: "The outlook is very bright across all sectors in Sheffield. In the distribution sector, two of the UK's largest ever industrial deals were in the region and this is a sign of things to come. Big sheds and distribution units of 20,000 - 50,000 sq ft are still in great demand and South Yorkshire is in a strong position to offer the development land, access to a workforce and easy transportation links to the ports and throughout the rest of the UK.

"I predict the logistics sector will continue to grow fuelled by consumer spending and we will also see some emerging new markets across Yorkshire including Doncaster and areas of the M62 and M18 that are within easy reach of the Humber ports and the rest of the UK.

"Although much of the interest is from retailers, the success of the Advanced Manufacturing Park is proving that there is growing demand from the revitalised manufacturing sector.

"As a result, rents in the industrial sector in Sheffield will continue to rise; in turn this rental growth will continue to drive developer interest so it is set to be an exciting year for the South Yorkshire property market."

LSH's analysis of 32 UK and Ireland retail centres reveals that retail rental growth will fall from 3.1 per cent in 2006, to 2.7% in 2007, bottoming out at 2.5% in 2008, before picking up again. Retailers are striving to maximise turnover by targeting centres of population and affluence.

In Sheffield, retail rents will see above average growth of 3.9% over 2007 to rental highs of £265 per sq ft; predicting growth similar to other burgeoning regions in the UK such as Nottingham, Dublin and Cambridge. In Leeds rents are predicted to rise by 1.6% to a new high of £310 per sq ft.

LSH retail agent Graeme Walker explains: "The next three years will be challenging for retailers across the UK, with supermarkets entering the white goods market, increasing consumer expectations for value-for-money, as well as rising rental and labour costs. While Internet shopping is expected to double over the next five years, I think the retailers that embrace the change will succeed in extending their market reach.

"I predict that the retail sector will weather the challenge ahead and landlords will redevelop and amalgamate smaller units to satisfy the demand for large units, driven by demand from food and international retailers."

Investors will continue to focus on offices, with the sector having accounted for 45% of transactions in 2006 (compared with 35 per cent in 2003), at the expense of the slowing retail market. LSH forecasts total returns for office investors of 14% in 2007, outperforming retail and industrial returns, at 8.0% and 3.0%, respectively.

Robin concludes: "LSH's Weather Map is based on data from across our national network and reveals where the rental hotspots will be in 2007 across the main office, industrial and retail sectors. Its essential reading and the comprehensive guide to what's happening in markets right across the UK and Ireland."

Final tenant to occupy the remaining 30,000 ft² of 4 Hardman Square

Allied London has secured a final tenant for its first speculative building at its flagship development, Spinningfields in Manchester. The UK's largest bank, HSBC is set to occupy the remaining 30,000 ft² of No 4 Hardman Square having agreed a 15 year lease at £28 per square foot.

The contemporary headquarters building is also to become home to Grant Thornton, which agreed to take 25,000 ft² last year. 4 Hardman Square is situated in the heart of Spinningfields in the new Hardman Square, which is to be the focal area of Spinningfields.

Spinningfields is fast becoming the new business district for Manchester and has attracted a number of top financial institutions including Barclaycard and Deloittes.

"We are delighted to have landed such a high profile organisation for this prominent landmark building", says Michael Ingall, chief executive of Allied London. "Spinningfields has set a benchmark for office accommodation in Manchester and this has been reflected in level of success we have achieved at the scheme. HSBC will add to the mix of companies located at Spinningfields and I have no doubt that the development will continue to attract similar high quality occupiers."

In addition to the office space, HSBC has taken a 15 year lease on a 116 m² (1,250 ft²) ground floor unit, which will operate as a walk in branch to support its existing city centre network. "Our client was keen to close the deal before the end of the year and we are extremely pleased to have been able to achieve this," adds Chris Mulcahy, partner at King Sturge which acted on behalf of the bank. "4 Hardman Square fronts the main public square within the wider Spinningfields development, giving the building its own unique identity. It was this location, coupled with scheme's high profile within the Manchester office market that ultimately proved to be the draw for HSBC."

King Sturge acted on behalf of HSBC. Jones Lang LaSalle and Dunlop Haywards acted on behalf of Allied London.

Drivers Jonas and joint agent Gee & Co, have let the last remaining suite at 90 St Vincent Street, Glasgow. The second floor suite, which extends to 4,922 sq ft, has beet let to BMK Solicitors on a 15 year lease. The deal marks the final stage in the buildings turnaround which has been completely refurbished whilst retaining existing tenants and attracting new occupiers

The property was bought by Drivers Jonas on behalf of Rockspring Property Investments Managers in 2001 when it was fully occupied. The agency, management and building services teams within Drivers Jonas worked together to give strategic asset management advice to the new owners on agreeing surrenders and new leases with several existing occupiers to allow the phased refurbishment of all the floors, common areas and services. The property now provides modern accommodation with air conditioning with occupiers include Barclays, Crawford Insurers, Mazars Neville Russel and Donaldsons Surveyors.

Julie Mitchell, Head of Agency at Drivers Jonas in Glasgow, said: "The building has seven floors of office space and ground and basement retail accommodation. When we were appointed, it offered basic accommodation and was in need of complete refurbishment.

"90 St Vincent St has been a real success story in being completely refurbished whilst retaining several key tenants. The property now provides good quality grade B accommodation in an excellent location, something which can be hard to come by in today's market-place. These factors have been significant in attracting BMK Solicitors as well as several other blue-chip organisations."

While many would agree home buyers are spoiled for choice in Yorkshire, there's always someone after something completely different. And they don't come much more unusual than this property at Tollerton, near York.

The 'Windmill House' is a former working mill converted into a feature home. Its history is so rich that if the walls could talk, they'd have stories of village life going back almost 200 years.

Hunters Property Group has just put the mill and its half acre of surrounding gardens up for sale with a guide price of £500,000. But the York-based property agents are connected to the home in more ways than one. Andy Galloway is from Hunters' Easingwold office; his great-grandfather used to grind corn at the mill, and as a boy it was Andy's playground.

"It was in my mum's family for years and I can remember playing there when I was little. My grandad sold it and he and the present owners became friends and my uncle still lives in the farm next door, so I know it really well," said Andy.

"It's a unique property and ideal for anyone who is looking for something a bit quirky."

For the last 26 years the mill has been the home of David and Gabrielle Moran, who recently decided to pass it on to the next 'caretakers'.

Built in 1815, the mill was converted to a home in the early 1960s. It is thought to have in use until 1942, when its wooden, cloth-coated sails were damaged in a gale and deemed unsafe.

"The top floor is about 80ft high and the views are fantastic," says Mr Moran. "The other thing that people like about this place is the solitude - we are on the edge of the village and it's so lovely and quiet."

While the outbuildings are now incorporated into the central hub of the home, the main dining room is in the ground floor of the windmill itself, featuring some original mill machinery to link its past and present. The first two upper floors are bedrooms and the top floor has been dubbed a 'panorama room'. It boasts incredible 360-degree views across Menwith, the White Horse at Kilburn and York Minster, which is 10 miles away.

According to Whitby- based architectural historian and author Alan Whitworth there are around 150 windmills in Yorkshire, but only three have sails.

These are now a mix of houses, restaurants and some are derelict. With interest in the Windmill House already coming in, Hunters believes the opportunity to own one of them is unlikely to come around again any time soon.

"The property is a unique, stunning piece of history and is undoubtedly unlike any other property you will see in the area," said Andy. "It's clearly an opportunity not to be missed."

The explosion of occupier demand for office and industrial accommodation during 2006 is set to continue throughout 2007 and beyond, if the predictions of a battery of property industry reports is to be believed. And why shouldn't it?

The increase in oil to a spike of $70 in mid 2006 and a predicted medium term plateau of $45 (or more if certain predictions are correct) has ensured that confidence within the oil and gas sector and all those industries which feed off it has generated a level of optimism and economic activity for Aberdeen and area not seen since the early 1980s.

This in turn has created a commercial property and land supply problem. Vacant property has been disappearing to new occupiers like snow off a dyke; even ones that were tired and jaded and looking the worse for over 20 years wear and tear, have found new occupants. There can be no doubt that 2006 was a period of opportunity for occupiers and developers with foresight, because last year they acquired most of the available prime business space land in the Aberdeen area. Those occupiers who managed to acquire then, will now count themselves fortunate and those that didn't may rue the day. Developers currently sitting with land have more projects under discussion than their land holdings can satisfy and those intending to build for let or sale on completion are now in a race to finish their schemes in order to be amongst the first to the market, and cash in on the combination of burgeoning demand and city-wide lack of quality accommodation.

Lack of locational choice and property options is now a major problem for business space users in the Aberdeen area. Land values have surged upwards with the last acres sold at Westhill achieving £500,000 per acre, double the asking price of a year earlier, with the final 6 acres of the current phase now on the market at a reputed asking price of £800,000 per acre.

Due to the level of demand for offices, business park land transactions have been reflecting office values and developers now require office occupiers to justify the on-cost. This is creating major problems for general industrial users who now cannot find suitable sites in the Aberdeen area. A recent poll of proposed and existing business park developments in Aberdeen shows that all schemes are designated for office use and coupled with sites in town, a total of over 800,000 sqft. of office accommodation will become available from late 2007 through 2008. This will undoubtedly be quickly taken up by a market hungry for new office accommodation but be of little use to the rest of the market.

So what are the immediate prospects for satisfying the needs of the ordinary industrial occupier? Few and far between is the answer. Their aspirations are being frustrated by current land prices and the simple economics of development. This is already of concern to the City and Shire Councils who are aware of the problem, but their concern will be of little consolation to businesses with a current need for a new workshop, warehouse or yard and can't find a suitable site anywhere.

The solution is clearly to facilitate a process whereby zoned land is fast-tracked to the market alleviating the current land short fall. The good news is that there is plenty of zoned land in the pipeline, but with planning processes and infrastructure constraints the main reasons for delay, it remains to be seen whether the process of coming to the market can be speeded up.

It looks like 2007 will be a feast for developers and office users who'll be spoilt for choice; and famine for industrial occupiers who will have to tighten their belts and hope for better fare in 2008.

The Crown Prosecution Service has taken more than 16,000 sq ft of brand-new office space at Terrace Hill's Hudson Quay 1 at Middlehaven in Middlesbrough.

The CPS, who have taken one-and-a half-floors of the three-storey building, will begin fitting the offices out next week and will move in during May this year. They will be relocating 115 staff from Linthorpe Road, Middlesbrough.

Hudson Quay 1 comprises a 30,700 sq ft high-specification office building, developed by Terrace Hill and the Helmsley Group, which have set the standard for the Tees Valley Regeneration flagship development at Middlehaven.

Hudson Quay is the first part of Terrace Hill's 142,500 sq ft Manhattan Gate site, which will consist of five office buildings. The remainder of Hudson Quay is available to lease.

Martin Vickerman, the property director of Stockton-based Terrace Hill in the North East, commented; "We are delighted to welcome the Crown Prosecution Service to Middlehaven. The arrival of such a high-profile and established organisation is a massive vote of confidence in this ground-breaking development".

"We are very proud of our first building on the Manhattan Gate scheme. The views are spectacular and it has to be one of the best buildings available in Middlesbrough at the present moment," he explained.

Benefitting from a waterside frontage, Hudson Quay offers an outstanding location with direct access to the A66, only a short walk from Middlesbrough town centre with its shops and public transport network.

Mr Vickerman said: "Hudson Quay is a fantastic start for the 200-acre Middlehaven regeneration scheme which will transform the area in Middlesbrough into an enjoyable place to be and provide both occupants and local people with a location to be proud of.

In addition to Terrace Hill's commercial development, Middlehaven will include new homes, open space, hotels and leisure facilities. One of the new occupants on the Middlehaven site is expected to be Middlesbrough College.

Hudson Quay was designed by Newcastle architects Red Box. This modern glass building allows views of the river to the front aspect and beautiful public art and landscaping to the rear. The building is constructed over three floors with a large central atrium in each building and there will be a café bistro joining both the buildings.

Manhattan Gate is the gateway to the business developments on Middlehaven with superb waterside locations, functional top class business facilities, set in an urban environment with close links to the town centre and fantastic national and regional transport links making it a perfect relocation site for large or small companies alike.

Terrace Hill and their agents, Dodds Brown and Storeys SSP, are working closely with Middlesbrough Council and Tees Valley Regeneration to provide a seamless and proactive relocation service. Together the partners are confident that the new scheme will be a huge boost to Middlesbrough, increasing general levels of trade in the town centre and being instrumental in both improving the employment levels and providing businesses with the stable workforce they need.

Middlehaven is one of the largest and most exciting developments taking place anywhere in the UK. The confidence in this scheme is shown by the value of both the public and private investment totalling £500 million, with the vast majority coming from private sector companies, who all believe in the success of the scheme.

Work continues apace on the construction of the first speculative building within Seabraes Yards - Dundee's Creative Media District.

"Seabraes" on Greenmarket, a development by Birmingham-based Foxdown Properties Limited, in association with Scottish Enterprise Tayside, is on target for completion by the end of May.

Totalling 28,370 sq.ft., spread over four floors, this prominently located property offers flexible letting space in Suites from 2,686 sq.ft. specifically designed for Digital Media and Creative Industry businesses for which Dundee is an internationally recognised centre.

Whilst there is on-site parking for 66 cars, Dundee City Council's latest multi-storey car park with almost 600 spaces is nearing completion on an adjacent site. The City's east coast main line Railway Station is a short walk and the Airport, with its scheduled daily direct flights to and from London City, is only 5 minutes drive away.

Letting Agents, Graham + Sibbald, who themselves recently moved to new offices at Greenmarket, report early interest and partner Alistair Todd commented: "In collaboration with Scottish Enterprise Tayside who are heavily promoting Seabraes Yards - Dundee's Creative Media District, discussions are underway with a number of prospective tenants for different parts of this landmark Building and we would hope to be making some specific letting announcement soon."

Scottish Enterprise Tayside operations director Jill Farrell said: "Creative industries are thriving in Dundee and are important for Tayside's economic future. One of our main strategies to encourage further growth in the sector is through developing Seabraes Yards and we are delighted to be working with Graham + Sibbald to attract new businesses to the area and support existing companies to grow in this exciting environment."

Arbroath

Foxdown, no stranger to developing speculatively within Tayside - they have several successfully completed schemes on Dundee Technology Park - also now have available for lease through Graham + Sibbald 'Arbroath Contact Centre' the gateway building to Arbroath Enterprise Park. Extending to 20,500 sq.ft., this purpose-built Contact Centre/Office offers open plan accommodation providing maximum flexibility. Developed with the support of Scottish Enterprise Tayside and Angus Council, the building seeks to capitalise upon the excellent workforce availability within Arbroath and the surrounding Angus towns. An attractive lease package is on offer to qualifying tenants and further details can be obtained from the Letting Agent.

Circle Property Unit Trust, advised by Edgerley Simpson Howe & Partners, has purchased the freehold interest in the Baildon Bridge Retail Park, Shipley, West Yorkshire from The MC Property Growth Fund for £5.925m, reflecting a net initial yield of 5.81%.

Located three miles north of Bradford city centre, the park comprises 37,424 sq ft (3,477 sq ft) of retail warehouse space over three separate units. The three tenants, Focus DIY, Oddbins and MotorWorld, provide an annual rental income of £359,960 pa.

Tony Rogers of ESHP comments: "This is an interesting medium-term investment for our clients. With Oddbins' and MotorWorld's leases expiring in 2010, there are good prospects for short term asset management initiatives as well as the potential for long-term redevelopment."

The MC Property Growth Fund was represented by Mayfair Capital Partners and CBGA.

An in-house German Fund of Henderson Global Investors has recently sold The Spectrum Building, 55 Blythswood Street, Glasgow, to in-house clients of Orchard Street Investment Management Ltd, namely Railways Pensions Nominees Ltd, for £24,875,000, reflecting a net initial yield of c 5%. The total rental income is £1,322,025 per annum with the office rents analysing to around £18.50 psf.

The property, situated in Glasgow City Centre's Central Business District, comprises a modern, high quality office building arranged over basement, ground and seven upper floors. The building provides 65,135 sq ft of Grade A office accommodation on the upper floors and approximately 7,040 sq ft of retail space on the ground floor.

Alasdair Ramsay, Head of the Scottish office of Drivers Jonas, who acted on behalf of the vendor, said: "The price achieved reflects the pressure on yields in the market, where offices are still very strong. It also reflects the improvements to the area."

Occupiers within the building include: Hogg Robinson, Scotcall and Mortgage Holdings.

Drivers Jonas and John Miles & Co acted for the vendors and Keneth Peters and Co acted for the purchaser.

For the second year running, HLM Architects has retained its One Star Status in the Best Companies Accreditation list 2007, which recognises organisational excellence in the area of workplace engagement.

The scheme acknowledges and rewards organisations that provide excellent workplaces, excellent workplace practices, and great leadership as defined by its own employees. It follows a 'Michelin style' star system of one star being first class, two stars being outstanding, rising to three stars being extraordinary. Out of 434 organisations, and 100,000 employees surveyed, only 273 organisations achieved "star status" with only 124 organisations in the UK recognised with One Star Status.

Jonathan Austin, Chief Executive of Best Companies, said: "HLM's 2007 accreditation is an outstanding achievement. It confirms the practice's commitment to the on-going journey of workplace engagement."

Douglas Roxburgh, director in charge of the Glasgow office at HLM, said: "There is no better way to discover how to motivate and inspire your employees than by listening to what they have to say about their jobs. Our One Star Status is an excellent achievement and rewards the effort and investment that we have put into our staff's personal and career development."

The results of the survey overall showed over three-quarters (77%) of employees working for accredited organisations vouched that they had confidence in the leadership skills of their bosses. This figure was significantly lower at 60% in organisations that did not achieve accreditation. 85% of staff in accredited companies would strongly recommend working for their organisation while only 64 per cent of staff in non-accredited companies would do so.

Accredited companies recognise the need for positive feedback and in return eight out of ten (79%) of their employees feel their contribution is valued as opposed to 58% of staff in non-accredited companies. Nine out of ten (88%) employees in accredited organisations are proud to work there. In non-accredited organisations, this figure falls to two-thirds (66%).

British BIDs today announced that a formal agreement has been reached with the entire pilot Business Improvement Districts initiative in Scotland, which will result in them becoming full members of the organisation.

There are currently six areas running pilots in Scotland and it is hoped that they will go to ballot shortly after the legislative framework is put into place - scheduled for April 2007.

Dr Julie Grail, Chief Executive and co-founder of British BIDs said of the news, "This represents another exciting step forward for our organisation. We have already got across the board representation from stakeholders, developing and existing BIDs in England, but by reaching agreement with all the Scottish pilots we can ensure that two-way cross border learning can be expedited and that we can provide a cohesive and effective support for these as they move towards, and beyond, the ballot process."

Ian Davison Porter, Project Director for Business Improvement Districts Scotland, said of the decision "Whilst the legislation is different in Scotland than in England and Wales we recognise the value of both UK and international co operation and the sharing of best practice.

As Business Improvement Districts in Scotland we believe that strong partnerships across the UK between organisations with similar aims and ambitions for the establishment and further development of the BID strategy are essential. We are therefore very pleased to join British BIDs and be available to give our support and advice to those businesses who wish to become involved in BIDs."

The six pilot schemes are town centre BIDs located in Edinburgh, Glasgow, Falkirk, Inverness and Bathgate, together with an industrial BID in Clackmannanshire.

Keppie Design is delighted to announce the granting of Planning Permission of the Eurocentral Business Park on behalf of its client Tritax Assets.

This development will provide 1 million sq ft of speculative office space and will be the largest of its kind in Scotland. The new Business Park is situated adjacent to the M8 / A8 junction providing it with excellent transport links to the whole of the UK.

Richard MacDonald, Director responsible for the project, highlighted the multi-disciplined approach by saying, "This project is the collaboration of three of Keppie's key in-house disciplines, architecture, urban design and landscape creating an innovative and flexible business campus in a high quality landscape setting. This seamless integrated approach has been the key during the design development and has created an excellent solution.

"In redeveloping Eurocentral and incorporating park amenities such as a restaurant, gym, crèche and retail space we have sought to design a scheme with a sense of place that will differentiate it from adjacent industrial land."

Local landlords could end up in court if they fail to comply with changes in legislation to commercial leases according to Yorkshire-based chartered surveyors Lambert Smith Hampton.

"Although the Code of Practice for Commercial Leases 2007 (the 'Lease Code') remains voluntary," explains associate director John Hayward "it is representative of best practice. When landlords are non-compliant they risk ending up in court to justify departure from it."

The 2007 revision of the Lease Code, prompted by the Minister for Housing and Planning, Yvette Cooper MP, is a concerted effort by all parties involved in commercial property, including landlords, tenants and surveyors, to regulate the industry.

Although the Lease Code is by no means a substitute for professional advice, it is user friendly for those who have little or no experience of leasing commercial premises. It consists of three documents one containing recommendations to landlords, the second outlining occupier's needs and the third detailing what should be contained in a commercial lease. The Lease Code therefore, has the potential to influence every business in England and Wales for the better.

John continues: "The future of the industry depends on landlords and tenants complying with the new code, yet this new legislation continues to be ignored, particularly by agency surveyors doing the deals 'on the ground'.

"If landlords want to protect the investment by averting further government intervention they must play an active role by instructing the appointed agent. Flexible terms outlined in the code to the tenant or their agent at the commencement of negotiations needs to be addressed."

The intention of the Lease Code is to ensure flexibility and transparency for both landlord and occupiers to build confidence between both parties. For example a constant concern of landlords wanting to increase investment value is that the government could ban upward-only rent reviews, while occupiers fear they will have no option but to face constant increases in monthly payments. The Lease Code clearly states that alternatives should be made available to occupiers, a flexibility that has the potential to appease both landlord and tenant.

Fashion favourite New Look is opening a flagship store at Overgate in Dundee early in 2007, sitting alongside retailers such as Warehouse, Mango, Gap, Bank and French Connection.

The fashion and accessories retailer will stock ladies', men's and children's wear and will move into the space previously occupied by Primark, following Primark's relocation to a bigger store in Overgate in 2006.

Commenting on the latest addition to the centre, Kylie Wilson, marketing manager of Overgate commented: "Overgate continues to attract high profile retailers. New Look will compliment our already impressive retail mix and secures our position as one of the best shopping experiences in Scotland."

The new addition comes after the new Primark store, the introduction of Bank, and hot on the heels of fashion footwear retailer Office, which opened its doors in the centre in December 2006, and strengthens Overgate's position as one of Scotland's leading fashion retail destinations.

A radical new vision for Huddersfield's waterfront, featuring one of the largest urban renewal projects in the country, has been given the go-ahead. The £175 million Waterfront Quarter development in Huddersfield, which will occupy almost one mile of frontage to the River Colne and The Huddersfield Narrow Canal at the gateway to the Colne Valley, has been approved by Kirklees councillors.

Ramsden and Colne Developments' imaginative scheme will provide 817,000 sq ft of prestigious mixed-use buildings within an iconic setting with the potential of creating up to 2,000 jobs for one of the UK's largest towns.

This decision follows hard on the heels of the go-ahead to transform Folly Hall Mills, an historic mill on the banks of the River Colne, into 60,000 sq ft of modern, state-of-the-art offices. Together these projects will revitalise Huddersfield's waterfront, creating an attractive living and working environment for the 21st century.

Paul Sheen of Ramsden and Colne Developments explained: "We are absolutely delighted that our Waterfront Quarter development has been given the green light. We have worked extremely closely with Kirklees Metropolitan Council, together with British Waterways, English Heritage, Huddersfield Civic Society and The Canal Society, to ensure that we have created a workable development of which we can all be very proud.

"This is one of the most important developments in the recent history of Huddersfield and it was crucial that we get it completely right. It will lead to massive inward investment and job creation and will underline Huddersfield's growing reputation as one of the most attractive places in which to live and work in the United Kingdom."

The Waterfront Quarter development features nearly 300,000 sq ft of state-of-the-art offices and 460,000 sq ft of residential space, together with a hotel, gym, crèche, cafes and restaurants.

Paul Sheen commented: "We are aiming to make a start on the first phase of the residential part of the development in spring next year, with a 12-month build period. This will comprise 200 high-quality, affordable apartments in a beautiful setting. Given Huddersfield's reputation as a residential property hotspot, these apartments present an unparalleled investment opportunity.

"The excellent location of Huddersfield, situated between Leeds and Manchester in the heart of West Yorkshire, has played a key part in the town's prosperity in the past - and it is crucially relevant today. Survey after survey has identified the town as a top residential location, providing quality urban living at affordable prices. It is also a thriving university and professional town, underpinning its buoyant residential reputation."

The major part of the site is occupied by Sellers Engineers Limited, whose Chairman David Armitage is also Chairman of Ramsden and Colne Developments. Plans are now well-advanced for Sellers to relocate to purpose-built premises in the Huddersfield area.

The go-ahead for the transformation of Folly Hall Mills, which looks across the River Colne towards the Ramsden and Colne's site, will provide the fourth side of the development's square. Owners Bradbury Investments are hoping to start on site in spring next year, with completion 12 months later.

The Ramsden and Colne team, which includes Knight Frank property consultants and DLG Architects, are also working closely with Kirklees Metropolitan Council who also own and occupy part of the 12-acre site.

It is estimated that the transformation of the site will take up to four years.

The self storage market in Scotland is continuing to grow with operators planning to open more stores throughout the country. One company investing prolifically in this marketplace is HSBC Specialist Investments Limited who has acquired Edinburgh based Armadillo Self Storage Limited for £40m and which has part of its portfolio in Dundee

Alasdair Ramsay, Head of the Scottish office of Drivers Jonas, said: "We are advising operators where to site in Scotland and, more importantly, what to pay in an increasingly competitive market. If sites meet the key criteria for self storage then we may see some steamy prices. The forecast is that self storage buildings will soon be a familiar sight in Scottish cities - already a familiar site in the south east of England."

Armadillo Self Storage has a portfolio of ten stores. There are two sites in both Liverpool and Sheffield, with the remaining six stores in Peterborough, Hull, Stockton, Dundee, Derby and Stoke.

Armadillo Self Storage was established in 2003 by Alister Jack. More than half of the current lettable area of 320,000 sq ft of self storage space is occupied and the portfolio has the potentail to fit out a further 160,000 sq ft of space creating a total maximum lettable area of 480,000 sq ft.

Oliver Saunders, partner at Drivers Jonas who advised Armadillo, said "There is an increasing interest from investors in the self storage sector as it becomes a much more established sector of the property market. HSBC and Personal Storage have the opportunity to continue the success story of Armadilo as they continue to build their portfolio around the country."

The first phase of Ask Development's St. Petersfield scheme in Ashton has been announced as Building of the Year 2006.

Ashton-under-Lyne Civic Society selected the 48,000 sq ft building at 225 Old Street, Ashton, as their award-winning building and praised it for its design and role in helping to regenerate the area.

Ask Developments is developing St Petersfield, the new urban business quarter for Ashton and pre-let 22,000 sq ft of the 48,000 sq ft building to Pennine Care NHS Trust, who have occupied the building since August, with the remaining 33,000 sq ft developed speculatively. The building was bought by Prestigic Holdings in 2006.

A 40,000 sq ft primary care centre is also being developed for Tameside and Glossop PCT within the scheme.

Once complete, St Petersfield, which is being delivered through a public/private partnership between Tameside Council, Ask Developments, Northwest Regional Development Agency (NWDA) and English Partnerships, will provide 280,000 sq ft of high quality office space, 140 residential units and retail and leisure amenities totalling 400,000 sq ft.

Susan Knight, Chairman of the Civic Society explained the reasoning behind their choice of winner; "The clean sharp lines of this building contrast greatly with the existing properties in the Old Henry Square area and introduce an exciting and refreshing new style of architecture to Ashton.

"The building heralds a new beginning for the economic regeneration of this area and once landscaping is complete will provide an extremely attractive and pleasant working environment."

John Hughes, Development Director at Ask Developments, who accepted the award, said; "We are delighted to receive this award and pleased that such an eminent body as the Civic Society recognises the building?s high quality design. This is just the first phase of Ashton?s new urban business quarter and is set to create a fantastic working environment as well as form a major part of this area's regeneration."

Councillor Jack Davis, Chair of Ashton Regeneration Project, was chosen by the society to present the award, which was donated by Mockridge Labels, Ashton.