Commercial Property News

Our magazines are published bi-monthly with in-depth features and news for the commercial property industry. On this page we have the latest news to keep you constantly updated on the market. On the left hand side of the page you can search our archived news which is stored monthly.



Wednesday, July 25, 2023

CB Richard Ellis new letting at Hamilton International Park

Leading property consultant, CB Richard Ellis (Scotland), has announced that it has successfully let the Vantage Point building in Hamilton International Park to Field Packaging Group.

In one of the biggest recent lettings in the area, the deal sees Field Packaging Group occupying 60,343 sq ft of Kenmore's Vantage Point building and paying an initial rental of £256,500 for a period of ten years.

Jamie Cumming of CB Richard Ellis (Scotland), who acted on behalf of Kenmore, commented: "We are delighted to announce this deal for our client. Field Packaging Group is a very highly-regarded company and is exactly the kind of tenant that Kenmore hoped to attract. Hamilton International Park will provide an ideal location for them to grow their business."

Following the conclusion of the Vantage Point deal, CB Richard Ellis' presence at Hamilton International Park continues following the confirmation of two new letting instructions.

Jamie Cumming continued: "We have now also been instructed to handle the disposal of Vista Point on behalf of Buccleuch Property, and 1 Watt Place on behalf of Spirent Communications. The properties are 50,000 sq ft and 30,000 sq ft respectively and both offer modern warehouse / manufacturing accommodation in a strategic and much sought after industrial location."

Please note that CB Richard Ellis and King Sturge acted on behalf of Kenmore. Atisreal acted for Field Packaging Group.



Allsop's sells £3.8m Liverpool retail warehouse

Acting on behalf of Commercial Estates Group, Allsop's National Investment team have successfully completed the sale of the Taskers DIY Store, Unit B Liver Industrial Estate, Aintree, Liverpool.

The property comprises a retail warehouse with bulky goods consent, let to Taskers DIY Plc on a renewed 15 year lease from 28th June 2006 at a passing rent of £255,000 pa. The property was purchased by a local private investor for £3.8 million which reflected an initial yield of 6.35%



F&C; buy Scottish & Newcastle HQ for £24m

F&C; Property Asset Management has acquired Scottish & Newcastle Plc's Edinburgh corporate headquarters building on a sale and lease back basis for £24 million reflecting a net initial yield of 4.86%. Scottish & Newcastle Plc has entered into the commitment on a 15 year lease on the 49,000 sq ft (4,552 sq m) grade A offices.

The six-storey property located at 28 St. Andrew Square, Edinburgh EH2, reaps the benefits of a city centre location and is part of an area of Edinburgh that is continuing to undergo extensive redevelopment.

Ian McBryde, Fund Manager at F&C; Property says: "This is a high profile, city centre office building with an excellent covenant which fulfils our requirements for well let, prime offices in major UK cities. We expect this to be an important long term asset for the Fund."

F&C; Property, on behalf of Friends Provident Life Assurance Ltd, was represented by CB Richard Ellis and McLay Murray & Spens. GVA Grimley and Morton Fraser represented Scottish & Newcastle.



Jones Lang LaSalle appoints Associate Director in Manchester

Jones Lang LaSalle has strengthened its Shopping Centre Management Team in Manchester with the appointment of Margaret Maguire as an Associate Director. Margaret joins the firm's seven-strong Manchester-based shopping centre team and will assist in developing its management business across the North West.

Margaret previously worked for the Manchester office of niche retail agency Cheetham & Mortimer and has over 22 years' of property management experience.

Jones Lang LaSalle's National Shopping Centre Management Team is one of the largest dedicated shopping centre management teams in the UK and manages over 20m sq ft of retail space for clients including Grosvenor, USS, Warner Estate Holdings Limited, Hammerson and Morley. Current high profile shopping centre instructions in the North West include the Middleton Shopping Centre and Stretford Mall, in Manchester; Fishergate Shopping Centre, in Preston, Cavern Walks, in Liverpool; Grange and Pyramids Shopping Centre, in Birkenhead and Mill Gate Shopping Centre, in Bury.



Shepherd and Wedderburn and Southside Capital in three Quartermile deals

Leading UK law firm, Shepherd and Wedderburn has advised Southside Capital Limited on three deals which together see over 180,000 sq ft of property sold for £81.4m and a further 50,000 sq ft let at Quartermile - Edinburgh's premier urban development area.

Acting for Southside Capital, a joint venture between Gladedale and Bank of Scotland, the firm's property team has advised on:

The sale for £21.4m of a planned seven-storey building, with a target of over 60,000 sq ft, to The Ascott Group for the development of the 'Citadines Edinburgh Quartermile' serviced residence. The 107-bed residence, which will be refurbished by Ascott for around £3.3m, marks the company's first acquisition in Scotland. The hotel is expected to open in mid-2009.

The £60m sale of Q2, a Norman Foster designed building at One Quartermile, to Norwich Property Trust Limited.

The lease of 50,000 sq ft, part of the Q2 building, to Maclay Murray & Spens LLP. Rental on the MMS space, which is spread over three floors of the building and includes 10 parking spaces, will be determined on completion of the property.
According to Nick Ryden, property partner at Shepherd and Wedderburn whose team acted, Quartermile presents major planning and construction issues. He commented: "We were able to bring together our planning and construction specialists in addition to property lawyers to achieve results for our client in what is a highly complex project."


He continued: "The deals illustrate signs of a pick up in the Edinburgh market, particularly in mixed-use developments. Creative and innovative developments are proving very attractive to both home grown and international investors, and by offering the right balance between residential, business and retail in a prestigious city location, Southside Capital has managed to get the Quartermile offering just right for today?s keen market."

This deal adds to Shepherd and Wedderburn's recent track record for key property deals, including:

The £680m transfer of almost one million square feet of retail property, and refinancing of Fort Kinnaird Retail Park, Edinburgh and Glasgow Fort Retail Park, on behalf of British Land/Hercules Unit Trust.

The lease, for McGrigors, of 36,500 sq ft over two floors at 141 Bothwell Street, Glasgow, for a rental of £912k per annum.

The deal which sees legal firm Biggart Baillie become the first tenant in Lochrin Square - the first building in Edinburgh's Exchange district. The £50m development is being delivered through a joint venture between Gladedale Group and Scotmid, and is expected to complete in October.



Thursday, July 19, 2023

Sheffield regeneration led by Brantingham Property Services

One of Sheffield's most run down areas is being given an £18m face lift as old buildings including a former cutlery factory take on a new lease of life.

Three schemes by Sheffield-based redevelopment specialists Brantingham Property Services at Lambert Street, Furnace Hill and West Bar are transforming the city's St Vincent's quarter, providing mixed use residential, office and retail space in the up and coming professional district.

The developments include 200 studios and 1 bed apartments, 10,000 sq ft of office space and 5,000 sq ft of retail property, all of which have been sold prior to completion.

The first of the three properties to be completed is a £5m development on Lambert Street. Brantingham have redeveloped a Grade 2 listed former cutlery factory, which has international significance due to the part it played in Sheffield's manufacturing history.

Rufus Salter, Brantingham Property Services Consultant, explained: "Due to the historical significance of the cutlery factory we have kept the Lambert Street development's original facade and also retained many of the building's original features. It is a fantastic building and part of the city's heritage and we have worked hard to redevelop it to a high standard. The three developments are proving to be the catalyst for creating the city's latest residential and commercial hot spot, The Cutlery Quarter, and epitomize the overall renaissance that the area is starting to enjoy."

The first phase of the development at Furnace Hill will open in August and will be fully completed in March 2008 with the completion of the West Bar site scheduled for June 2008.

Sheffield's leading estate agent Blundells have worked with Brantingham as part of the development team for the three properties. Peter Lee, Associate Partner at Blundells said: "The location and character of the Lambert Street building has created a very desirable development. All three redevelopments signify a new dimension in the regeneration of the Cutlery Quarter and pave the way for more substantial regeneration for the area which has always offered prime location potential."



£20 million East Kilbride development set to benefit first-time buyers and shoppers

Ambitious plans to transform a prominent derelict site in East Kilbride through a £20-million mixed retail and housing development have been lodged with South Lanarkshire Council.

Part of the 10.5-acre site in Mavor Avenue has been earmarked by leading international grocery retailer ALDI for a 1,531 sq m (16,500 sq ft) store with free parking for 100 cars.

Site owner Mavor LLP, a joint venture between Glasgow-based developer Elphinstone and Scottish property financing partner Hunter Capital Partners, is proposing to build 180 homes for first-time buyers and key workers.

These will comprise 60 one-bedroom flats, 100 two-bedroom flats and 20 two and three-bedroom terrace houses.

ALDI Property Director David Grant said: "This is an ambitious development that will deliver huge benefits to East Kilbride, providing a first-class retail outlet and much-needed affordable housing all on one site.

"Mixed-use developments are becoming increasingly popular throughout Scotland and we are delighted to be working with Mavor LLP on this major development."

Ken Ross, Chief Executive of Elphinstone, said: "We see a particular need in East Kilbride for affordable homes for first-time buyers and key workers. This site is ideally located and we believe there will be no shortage of potential purchasers.

"This mixed-use development will be good for the local economy; it will create both short and long-term local job opportunities if it gets the go-ahead."

If the plans are approved for the retail development, shoppers in East Kilbride will be able to look forward to experiencing ALDI's unique customer offering.

ALDI has won dozens of awards for its range of products which are carefully selected to ensure they complement what is on offer in local high street stores. The retailer, which is ranked in the top 10 of graduate employers in the UK, is committed to investing in Scotland and aims to become an established household name north of the border.

ALDI currently has 29 stores in Scotland, employing more than 400 people, and aims to open around 10 stores a year in the next 10 to 15 years, which will amount to a £200m investment drive north of the border.



Brixton buys more at Manchester's Trafford Park

Brixton has purchased the Severnside Trading Estate, Trafford Park in Manchester from Morley Fund Management for £14.95m.

The estate totals 204,000 sq ft in 22 units, let on 16 leases with 2 units (22,167 sq ft) vacant and subject to rent guarantees for 12 months.

The total rent including these guarantees is just over £900,000 per annum and the purchase price reflects a net initial yield of 5.7%, 6.1% equivalent yield and 6.7% reversionary yield.

The largest occupiers include T&K; Gallagher, Loomis Cash Management, Doco International and Wolseley UK with Unipart, Komfort Workspace, Central Tyre and Interlink Express also being represented.

The property is located opposite Brixton's 340,000 sq ft Longwood Estate within Trafford Park and this purchase is the Company's third acquisition there since May last year.

Brixton was advised by CB Richard Ellis with King Sturge acting for Morley.



Charlotte Square, Edinburgh, building sold for £2.75 million

W G Mitchell has purchased 23 Charlotte Square in Edinburgh for £2.75 million.

The prestigious four-storey office building on the west side of Charlotte Square, has been sold by Legal and General. It is currently let to Royal Bank of Scotland subsidiary Adam & Company Group until 2015 at a rent of £125,000 pa. The deal for the Category-A listed 560 square metre (6,036 sq ft) building reflects a yield of 4.3 per cent.

Developed in the late 18th Century, Charlotte Square is recognised as one of the best examples of Georgian architecture in the UK.

Alasdair Humphery, director of Jones Lang LaSalle Edinburgh, which represented Legal and General, said: "This is a great office and one we used to occupy. This is clearly a vote of confidence by investors in Charlotte Square, which remains one of Edinburgh's most prestigious office addresses."

Patrick Hegarty, of W G Mitchell, said: "We have sought to increase our holding in Charlotte Square which we see as prime Edinburgh real estate. Following this acquisition, we are now the largest owners in the square. They just don't build this quality anymore."

Charlie Walker, Fund Manager at Legal and General, said: "There was considerable competition for this building, which sits in one of the UK's finest Georgian Squares. We are pleased to have completed a deal which is beneficial to both parties and I am confident Charlotte Square will remain a prominent office location in the Scottish Capital in the years to come."

Keith Dobson, head of Savills Edinburgh, which represented the purchaser, said: "WG Mitchell, owners of the adjoining interlinked property also let to Adam & Co, has strategically purchased this property to complete their ownership of the south west portion of this historic square."



Compulsory purchase order to aid Liverpool's regeneration

National regeneration agency English Partnerships has made a new compulsory purchase order (CPO) to deliver the comprehensive regeneration of the Edge Lane West area in Liverpool.

The Edge Lane West area is part of the £350m Edge Lane Project to transform the corridor from the M62 into Liverpool city centre into an urban boulevard befitting a major European city.

The CPO is needed to bring the final properties in the 21.7 acre site into public ownership.

To date 301 of the 370 properties needed have been acquired by Liverpool City Council or are in the final stages of being transferred to the council and negotiations are continuing with owners of the vast majority of the remaining properties.

Once the CPO has been granted, the project partners will provide:

- around 280 new homes, including sheltered housing, affordable housing for hospital staff and other key workers, modern apartments and family homes

- a much-improved environment with high quality new architecture, an improved setting for landmark buildings such as St Cyprian?s Church, new paving, lighting and the planting of new trees

- an urban boulevard with safe pedestrian crossing points

- new and improved retail facilities for the local community, together with an improved setting for local businesses

- new employment floorspace to provide jobs for the community

- a new state-of-the-art health centre

- a much-improved setting and safer access to Kensington County Primary School and the Life Bank

- a much safer and improved environment for the people living in the area.


Eliot Lewis-Ward, English Partnerships Area Director for Merseyside and Cheshire, said: "The comprehensive regeneration of the Edge Lane corridor is of critical importance for Liverpool and the wider region, and will deliver significant housing, employment and environmental benefits for the community. Most of the properties in the CPO area are already in public ownership and we are continuing discussions with the vast majority of the rest to acquire them by agreement. However, a CPO is needed to bring all the land into public ownership. Then we will be able to bring about the comprehensive regeneration of this area."

Ian Hassall, Chief Executive of Liverpool Land Development Company, which is leading the Edge Lane Project, added: "We know the overwhelming majority of the local community supports the plans for new homes, new business space, a much safer road and a much better environment. They are desperate to see progress and an end to the dereliction in this area. Indeed, residents have presented a petition to call for progress to be made. We owe it to the local community and the city of Liverpool to help bring about the transformation of this area."



Wilmec Annual Golf Day

In light of recent smoking ban, Wilmec, the Plumbing and Heating specialists, chose the Roy Castle Lung Foundation as the beneficiary charity for its annual golf day.

The event saw over a 100 business leaders within the construction industry come together in the day's events at Bromborough Golf Club, Wirral.

Reflecting on the event, Jamie Kimpton, organiser and Managing Director of Wilmec commented, "This is the second year we have had this event and it is our way of saying thanks to the people who contribute to the growing success of the business. With the recent smoking ban, we thought Roy Castle would be a great charity to help."



Friday, July 13, 2023

Better value for money as English Partnerships exceeds targets

English Partnerships attracted more than £1bn of private sector money to its regeneration schemes and self-funded nearly two thirds of its own investment via £376m of programme receipts in 2006-07.

Private sector funding was up 51% over last year and programme receipts increased by 34% compared with 2005-06 results. The agency also exceeded its regeneration targets in other key areas, including new homes built and derelict land reclaimed, while simultaneously reducing the financial burden on the public purse.

Overall, English Partnerships exceeded its target investment by £14m, investing £586m in its programme and exceeded its output targets across all core areas as follows:

£1.022bn of private sector investment - 17% above target

£376m of programme receipts - up 34% on last year

9,403 new homes started on site - 11% above target

4,248 new homes completed - 32% above target

328 ha of Brownfield land reclaimed - 22% above target

325,871 sq m of employment workspace - 25% above target



English Partnerships' Chief Executive, John Walker, said: "These results are good news for regeneration, good news for individual communities and good news for the taxpayer. We have effectively achieved more with less. On every hectare of reclaimed land there are new homes, play areas, community and sports facilities, shops and job opportunities. It is important that we relate these statistics to the impact they have had on communities, not just look at the figures. I am delighted with our performance and applaud our private sector partners who deserve great credit for matching our investment by a ratio of two to one, helping to bring about even more positive change in communities across the country."

Highlights of the year included the launch of the English Partnerships' First Time Buyers' Initiative in nearly 40 areas, providing low-cost home ownership for up to 1,200 people as part of a £100m funding package; the completion of the first homes, at Oxley Woods in Milton Keynes, resulting from English Partnerships' Design for Manufacture competition to provide more than 1,000 environmentally sustainable new homes, many for a construction cost of just £60,000; and the launch of the Carbon Challenge, kick-starting the development of zero carbon communities across England and acting as a test-bed for introducing new technologies.

Looking to the future, Mr Walker believes that next year the agency's investment programme is likely to be increased to more than £620m - with as much as 70% of its funding being generated through its own receipts.

Results are also expected from its Urban Finance Team, working with institutional investors to develop mechanisms for funding local authority programmes using asset-backed vehicles; and in the former coalfields communities, English Partnerships will launch a new initiative to tackle areas of specific need by coordinating the work of existing partners to help address community issues such as unemployment, poor housing and lack of skills.



New 107 acre business park to be built in Aberdeen

A new business park is to be created on a 107 acre site at Bridge of Don, Aberdeen, allowing the city to expand its business community with the capacity for up to 100 new businesses.

Acting on behalf of developer, Rockwater, Knight Frank has submitted an application for outline planning permission to develop the site for business, industrial and office use. Subject to planning permission it is anticipated that the infrastructure will be implemented in mid 2008 with the first sites available by the end of 2008. Rockwater have acquired the site, subject to planning consent, from local land owners. It is estimated that the total development and construction value of the entire site over the four year phasing of the business park will exceed £100 million.

The new development to be known as Kingfisher Business Park will be located at Berryhill Farm situated to the north of Aberdeen Science and Energy Park, in close proximity to established business and industrial estates at Denmore Road and Murcar and approximately 4 miles from the city centre. The site is located in an area which is experiencing an explosion of development and expansion which includes the Western peripheral route and Donald Trump?s proposed golf course complex.

The implementation of Kingfisher Business Park will help address the current and future demand for business and industrial property in Aberdeen. The city is facing a shortage of marketable, immediately available industrial and business land and demand is being driven by a strong regional economy and growth in the energy sector.

As highlighted by the ACSEF Environment Land Audit 2007, there is significant market demand for business and industrial land within Aberdeen City and Aberdeenshire which is reflected in quickly rising land prices, increased take up rates and previously uneconomic sites being brought forward for development. The proposed development will provide a critical contribution to the essential business infrastructure required to achieve business growth objectives for Grampian.

Allan Rae, Planning Partner, Knight Frank said: "We have been most encouraged by the very positive statements made by the City and Shire planning officers at the recent Chamber of Commerce land supply breakfast. It would appear that there is now an awareness that Aberdeen is being economically strangled by the lack of deliverable employment land and hopefully this application will give them an opportunity to show that the system can deliver quickly in response to market demand."

Eric Shearer, Partner, Knight Frank Aberdeen, marketed the Berryhill site for sale. He said: "The Aberdeen market has been waiting a long time for a commercial development opportunity such as Berryhill Farm. The last development of this scale, in the city, was over 20 years ago. We have seen from our involvement in the Aberdeen Gateway Business Park at the south side of city that the demand for serviced business land is extremely strong with supply being very weak. Kingfisher Business Park will help redress the dire shortage of employment land on the North side of the city.

Colin Robison of Ostrick & Williams, Architects for, Rockwater said: "Rockwater have identified that Aberdeen has a bright future. Given the shortage of employment land in the city they believe that Kingfisher Business Park will be a huge success. Unlike many of the existing business parks in Aberdeen, where it is difficult for companies to buy their own land on which to develop, we intend on making serviced land available for large and small enterprises alike. Rockwater will make buying serviced land simple, whether it's a 1 acre plot for a small workshop and office or 15 acres for new corporate headquarters."



Sheffield regeneration led by Brantingham Property Services

One of Sheffield's most run down areas is being given an £18m face lift as old buildings including a former cutlery factory take on a new lease of life.

Three schemes by Sheffield-based redevelopment specialists Brantingham Property Services at Lambert Street, Furnace Hill and West Bar are transforming the city's St Vincent's quarter, providing mixed use residential, office and retail space in the up and coming professional district.

The developments include 200 studios and 1 bed apartments, 10,000 sq ft of office space and 5,000 sq ft of retail property, all of which have been sold prior to completion.

The first of the three properties to be completed is a £5m development on Lambert Street. Brantingham have redeveloped a Grade 2 listed former cutlery factory, which has international significance due to the part it played in Sheffield's manufacturing history.

Rufus Salter, Brantingham Property Services Consultant, explained: "Due to the historical significance of the cutlery factory we have kept the Lambert Street development's original facade and also retained many of the building's original features. It is a fantastic building and part of the city's heritage and we have worked hard to redevelop it to a high standard. The three developments are proving to be the catalyst for creating the city's latest residential and commercial hot spot, The Cutlery Quarter, and epitomize the overall renaissance that the area is starting to enjoy."

The first phase of the development at Furnace Hill will open in August and will be fully completed in March 2008 with the completion of the West Bar site scheduled for June 2008.

Sheffield's leading estate agent Blundells have worked with Brantingham as part of the development team for the three properties. Peter Lee, Associate Partner at Blundells said: "The location and character of the Lambert Street building has created a very desirable development. All three redevelopments signify a new dimension in the regeneration of the Cutlery Quarter and pave the way for more substantial regeneration for the area which has always offered prime location potential."



DTZ and Donaldsons join forces

DTZ, a leading global property adviser, has acquired the business and assets of Donaldsons LLP, the privately owned, UK-based property consultancy, for an initial consideration of £39.8m, plus deferred consideration of up to £8.8m.

The transaction will significantly enhance DTZ's comprehensive service offering in much of Europe, particularly in relation to retail property. Donaldsons clients will also benefit through access to the broader client-focused property services of DTZ' pan-European and global platforms. The combined business will fully adopt the DTZ brand name from autumn 2007.

Headquartered in London, Donaldsons employs 690 staff in the UK and 220 on continental Europe, a total of 910. It provides property advisory services across a broad range of clients in the UK and continental Europe. For the year ended 30 June 2006, Donaldsons reported turnover of £62.9m (of which £52.2m related to the UK) and profit before tax and distributions to partners of £12.6m (partnership profit). As at 30 June 2006, Donaldsons reported gross assets of £27.3m.



Tuesday, July 10, 2023

Mactaggart & Mickel conclude £11m Carrongrove Mill Deal

Mactaggart & Mickel, the family-owned housebuilder, has completed an £11m purchase of the former Carrongrove paper mill in Denny near Falkirk.

The 38-acre site was bought from paper manufacturing company Inveresk plc. It includes a category B listed building - the former manager's house.

Jim Kirkwood, senior land and planning manager at Mactaggart & Mickel, said: "Mactaggart & Mickel is looking forward to working with Inveresk plc and the local authority for the future regeneration of this important site.

"This historic and attractive location offers Mactaggart & Mickel the opportunity to regenerate a substantial mixed-use area to the advantage of the local community. We are proud to be part of the local development plan for Denny and the surrounding areas, given our long history in delivering high standards of quality, hand-crafted housing.

"Denny has a proud industrial tradition and is now perfectly located with strong links to Scotland's major cities. The Denny and District Local plan is committed to the revitalisation and the development of brownfield sites such as Carrongrove Mill."

Mactaggart & Mickel has been hand-crafting homes for generations and is one of Scotland's most successful independent housebuilders employing more than 280 people. It completed 170 homes in 2005-06 and 250 homes in 2006-07 an increase of more than 45 per cent which exceeded the sales target for the year. The company aims to reach 500 homes by 2010.



Morley Fund Management acquires No.1 Quartermile Square

The flagship No.1 Quartermile Square office and retail development in the heart of Edinburgh's impressive Quartermile development has been purchased by Morley on behalf of Norwich Property Trust.

The deal comes in the wake of the pre-let of almost half of the 120,000 sq ft building to leading law firm Maclay Murray & Spens.

Quartermile is a joint venture development between Gladedale Capital and HBoS. No.1 Quartermile Square has changed hands for a price in the order of £60 million.

Maclay Murray & Spens has agreed to take c. 50,000 sq ft of the grade A office building as its new Edinburgh headquarters.

Based on the site of the former Edinburgh Royal Infirmary, Quartermile will eventually encompass a £400 million regeneration project offering more than 300,000 sq ft of Grade A office space, 900 luxury apartments, a boutique hotel and various leisure and retail facilities.

It is expected that construction work at No.1 Quartermile Square will be completed by October, with Maclay Murray & Spens taking occupation shortly thereafter.

Colin MacPherson, Development Director at Gladedale Capital said; ?There has been a terrific amount of interest from investors in No.1 Quartermile Square since we confirmed Maclay Murray & Spens as tenants earlier this year. Securing this calibre and size of tenant before the building was complete underlined the demand which exists for top quality grade A office accommodation in the Capital.

"This is an excellent development in a prime location and we believe it represents outstanding value for the purchasers. We are working to secure further tenants for the remaining space, which will ensure it generates significant returns on this investment."

Philip Owen, Assistant Fund Manager at Morley, said: "We are delighted to have secured this prestigious office investment for Norwich Property Trust and firmly believe that the current good level of interest bodes well for the letting of the remaining accommodation".

Designed by Foster and Partners, the architects behind internationally renowned projects like London's Swiss Re Tower, the Reichstag in Berlin and Hong Kong's new airport, No.1 Quartermile Square sets a new standard for offices in Scotland.

No.1 Quartermile Square is a striking seven storey office building featuring column-free open plan space with floorplates ranging from 9,677 sq. ft to 20,656 sq. ft. As well as an impressive reception and atrium, the ground floor will include two retail units of 12,508 sq ft and 2,153 sq ft.

Located in a prime position on Lauriston Place, next to the Category 'A' listed former Surgical Hospital, No.1 Quartermile Square will front on to a new public space, providing an impressive gateway to the whole site. Its dual aspect will provide views of Quartermile itself and the Pentland Hills to the south, and of Edinburgh Castle and George Heriot's School to the north.

Morley were represented by NB Real Estate during the transaction, while CB Richard Ellis acted for Gladedale Capital.



Fort Kinnaird in Edinburgh goes green

Hercules Unit Trust, the specialist retail warehouse fund advised by British Land Property Advisers and managed by Schroders is pleased to announce that it has now submitted detailed plans for the improvement of retail and leisure facilities at Fort Kinnaird Shopping Park, Edinburgh. Proposals also include sustainable energy measures and improvements to local public transport links.

The plans encompass the redevelopment of a variety of retail units predominantly on the site of the old tea factory and the cinema which Odeon have recently announced is to close. In addition a number of new restaurants will be spread throughout the shopping park. These areas will all be linked by new landscaped pedestrian boulevards aiding pedestrian circulation throughout the park's shopping areas. At the centre of the scheme a new children's play area will be created, along with an adjacent café.

As part of the scheme new bus stops and improvements to local bus services will be provided, including a priority bus route on Newcraighall Road as it passes the site. Over the past nine years considerable success has been achieved in increasing the number of visitors travelling to the shopping park by public transport, with a corresponding decrease in those travelling by car. As part of the current proposals, facilities for bus travel will be significantly improved to encourage more visitors to travel by bus to the site.

British Land Property Advisers, the manager of Fort Kinnaird is also assessing how to promote environmental conservation issues and encourage the use of sustainable buildings as part of its ongoing development. To this end water will be retained from the roofs of the development to be used for landscaping and Sustainable Urban Drainage Systems ('SUDS') will be introduced along with a system of swales to clean water flowing from landscaping areas.

In addition renewable energy resources will be increased through the introduction of a 15m wind turbine to meet part of the parks electrical requirements with any surplus electricity going back to the national grid .Solar panels will provide heating for the shopping park's new washroom facilities.

Mark Stirling, director at British Land Property Advisers, said: "Our investment throughout Fort Kinnaird will significantly enhance the park's facilities and improve the shopping experience for visitors to the scheme. By investing in mechanisms to deliver sustainable energy we will help to both reduce long-term costs for our tenants, as well as the burden placed on the local environment. We are confident that by working together with the tenants and local communities we can continue to transform Fort Kinnaird and the surrounding area into one of which the City can be truly proud."



Tuesday, July 03, 2023

Galliford Try sees financial year above market expectations

Galliford Try plc, the construction and housebuilding group, is providing the following update to trading for the year to 30 June 2023 prior to entering its close period. Preliminary results are expected to be announced on 6 September 2007.

Full year profits expected to be significantly above market expectations and substantially ahead of last year. Highlights from the update include -

Excellent performances from Morrison Construction and Chartdale Homes in their first full year following acquisition.

Integration of Linden Homes progressing well.

Construction order book maintained at over £2.1bn.

Regeneration and affordable homes business working on seven major English Partnership projects.

Housebuilding reached record levels

-Completions of 1,530 units (2006: 1,054 units)

-Sales carried forward of £185m (2006: £78m)

-Land bank of 11,100 units (2006: 4,022 units)

Strong construction cash flows.

Year end borrowings well below market expectations.



Former Beltrami office building is latest Glasgow landmark to be redeveloped

One of Glasgow's better known office buildings is to be demolished to make way for the city's latest Grade 'A' commercial property development.

Standard Life House, which was built in the 1970s and once housed the offices of leading lawyer Joe Beltrami, is to be replaced by a landmark £15 million office and retail development which will be ready for occupation in 2009.

The project, at 2 West Regent Street, is the first new build venture in Glasgow by leading investment and development company City Site Estates and will involve some 100,000 sq.ft. of accommodation over nine upper floors with 24 underground car parking spaces.

Demolition will begin next month (July) and City Site Estates Group Property Director, Jim McCain, believes the building can play a significant role in the regeneration of the West Nile Street and West Regent Street intersection area.

"The next few months will also see the redevelopment of the former Odeon Cinema and the former General Accident building as Glasgow city centre continues to deliver in terms of property development," he added.

"We have worked closely with the planners at Glasgow City Council on the opportunity to redevelop such a prime site as it's critical that we continue to produce high quality buildings to not only attract new businesses to the city but to retain those companies already operating very successfully here in the west of Scotland.

"The demand for Grade 'A' office space shows no sign of abating at the moment and we have already had a number of enquiries in terms of the availability of this new building.

"The fact that it will also feature under-floor air conditioning and will be state-of-the-art when completed is also attracting a lot of interest."

City Site Estates has invested heavily in both the Glasgow and City of London property markets in recent years and concentrated activity in the office sector. The company has not decided on a name for the new building and Mr McCain would be happy to work with potential occupiers to come up with an appropriate title.

Architect RMJM is behind the design for the new building, while DTZ and Alan Watt Consulting have been appointed as leasing agents on the project.



Graham + Sibbald manages major Edinburgh regeneration project

morgan mcdonnell architecture ltd achieved planning permission this week for a regeneration project within the heart of Edinburgh's Old Town.

The mixed use development, which is being project managed by GRAHAM + SIBBALD for Station Properties Ltd of Edinburgh, comprises 80 residential units alongside ground level commercial accommodation centred around Advocates Close, in one of the world's most recognisable built environments which will breathe new life into a long neglected part of the World Heritage site.

Formerly City of Edinburgh Council offices, the majority of the existing buildings on the site are listed and date from the 16th century onwards. Despite their listed and conservation area status, years of public service and the changing face of the city have seen many modifications and changes, both internally and externally. The scheme will restore and reinstate heritage features throughout the site, as well as providing a fresh focus for urban life within the area with landscaped public amenity spaces. Although regeneration is key to this project, the proposals include designs for new build elements, which compliment the complex vertical architectural character of this very distinctive city skyline. The aspect of the site, situated as it is on the sharp incline of the ridge of Castle Rock and the High Street, presents many structural challenges for appointed structural engineers Buro Happold.

The proposal, which has been in development for over a year, has been supported throughout by extensive and constructive consultation, both with the Cockburn Association, Edinburgh's Civic Trust, and the City of Edinburgh Council, as well as residents and other local parties.



Dawson International to sell and leaseback Kincross property

Dawson International announces that it has entered into an agreement with Montgomery Hanson Property Limited for the sale and leaseback of its entire property at Lochleven Mills, Kinross. The Property contains the administrative offices of the Group and the administrative offices and production facilities of its cashmere yarn spinning business, Todd & Duncan.

The initial consideration is £3.5m in cash with a further amount receivable in cash based on a 50 per cent share of any development profit which may be realised or potentially realised by the purchaser in due course. The development profit of the Property will depend upon a number of complex factors, outside Dawson's direct control, including the nature of, time taken and cost to achieve that development. Accordingly, the actual further amount which might be received by Dawson at this stage is uncertain. The immediate impact will be to reduce Group borrowings, while the leaseback ensures continuity of production. The net book value of the assets disposed of is £0.9m. The lease is for an initial period of 5 years with a mutual break clause after two years. This is sufficient time to enable the Group to consider and implement options for future production.

Following a difficult year in 2006, which was impacted by production issues in the first half, Todd and Duncan has reported a strong start to 2007. In the first five months overall sales increased by 7 per cent with cashmere volumes up 15%. With last years production issues resolved, customer service and stock service availability levels have been restored and enhanced. New product development and underlying cost reductions are contributing to improved results. Whilst Todd and Duncan has made significant progress in its turnaround strategy and maintained its price premium at the top end of the luxury cashmere market neither they nor the market generally have been able to pass on the raw material price increases of the last two years.

Mike Hartley, Chairman of Dawson International commented: "I am pleased to announce this deal which releases value from a site which is too large for our production requirements following the exit from our cashmere fibre business in 2005 and installation of more efficient spinning technology in 2006. In Todd & Duncan we believe we have the premier brand in cashmere yarn and we continue to review how we optimise the strategic opportunities of this business including relocation to modernised premises."

James McArdle, Managing Director of Todd & Duncan added: "During the last 12 months Todd & Duncan has significantly improved its performance largely through increased productivity and new product innovation assisted by a £2m investment programme. The property deal not only generates income for the Dawson International Group but it also presents an opportunity for Todd & Duncan to build on recent improvements and enhance future performance".



Bowleven takes space off St Andrew Square, Edinburgh

Oil and gas company Bowleven is to move to new headquarters in North St Andrew Lane, off St Andrew Square, Edinburgh.

Bowleven has struck a ten-year deal with Scottish & Newcastle to lease 6711 sq ft at 1 North St Andrew Lane.

The agreement at £26 per sq ft represents another significant letting for the East End of Edinburgh.

Ben Reed, director of Jones Lang LaSalle Edinburgh, said: "This letting demonstrates that there is a much more even spread of take-up across the city centre compared to the past two years. Due to their continued expansion, Bowleven will be taking more than twice the space they currently occupy in George Street. The quality of these offices and their proximity to Waverley Station and all the neighbouring facilities was the key in settling this deal"

John Brown, finance director of Bowleven, said: "We set out with the objective of staying in the heart of the city centre, which is important to our staff. These offices provide Bowleven with a good quality environment to help build upon the recent expansion of the business."

Toby Withall, partner of GVA Grimley, said: "We are hopeful that the activity created through this significant letting to Bowleven will serve as a catalyst in ensuring the remaining space at ground and first floor levels are let soon"

Jones Lang LaSalle acted for Bowleven while GVA Grimley represented Scottish and Newcastle.



Lambert Smith Hampton goes private and reports record profits

Lambert Smith Hampton (LSH) has exchanged contracts for a Management Buy-Out (MBO) from parent company Atkins to take the business private. The MBO, led by Chief Executive Mark Rigby and supported by Bank of Scotland Corporate, sees LSH return to private ownership and comes on the day the firm reports its 2007 year-end results, with profits increased by 90 per cent and turnover increased by 14 per cent on 2006.

The Management has agreed to purchase LSH, held as a wholly-owned, non-core investment subsidiary by Atkins, for £46.5 million. Contracts were exchanged today.

Mark Rigby, Chief Executive, said: "LSH is a dynamic and successful business which is performing strongly and delivering significant growth. We have completed this deal to give LSH control and ownership of its own future, and to make that future an even better one for our staff and clients. We're delighted with the deal and to be back running our own ship."

In addition to Mark Rigby, the MBO involves Chairman, Bruce Brown, and National Head of Investment, Ezra Nahome, the firm's leading fee-earner. This Management team has taken control of LSH in the first phase of changing ownership of the business. In phase two, ownership will be spread more widely within the firm.

"Our first priority was to achieve a clean, swift and seamless exit from Atkins with minimal disruption to the business and services to our clients," Rigby added. "This move is immensely positive for LSH and will be a significant factor in helping us to achieve our targets for growth."

LSH's 2007 year-end results report operating profits before tax up from £4.9 million to £9.3 million (a 90 per cent increase) based on turnover of £81.8 million. Margin has also significantly improved from 6.8 per cent in 2006 to 11.0 per cent in 2007.

Performance highlights in 2007 include key re-appointments by the BBC, Hertfordshire County Council and Essex County Council for professional estate services. The appointments came as LSH increased its national client base and extended integration of service lines, resulting in 35 per cent of turnover being derived from national contracts.

LSH also purchased two leading commercial property businesses in 2006-7 to add to its national network: Poolman Harlow in Swansea (April 2006) and Young & Butt in Fareham and Southampton (November 2006).

Further highlights saw strong growth in the Rating, Professional and Building Consultancy Divisions alongside increased revenues in Industrial Agency and Office Agency. Income from LSH's Consultancy Divisions (Property Management, Professional, Rating, and Building Consultancy) represented 59 per cent of total income, continuing LSH's robust balance between Consultancy and Transactional income.

LSH welcomes Clive Williams, a former senior partner at Ernst and Young, who joins the company as Non-Executive Director. LSH was advised by Baker Tilly (led by Rob Donaldson, Head of M&A; and Private Equity) and Berwin Leighton Paisner. WS Atkins was advised by PwC Corporate Finance.