Fisher German Magazine Issue 23 Autumn 2019

fisher german Magazine | Issue 23

www.fishergerman.co.uk

The future of agribusiness The agritech innovations driving change in agriculture

Supply and demand

What does the future have in store for the affordable housing market? p10

In the spotlight

Heat pumps are becoming more mainstream, as pressure to tackle climate change grows p24

Quintessentially British

Thatched properties are making a comeback and it’s not hard to see why p30

Welcome Despite the ongoing political uncertainty in the UK, it’s not stopping Fisher German in seizing opportunities. We've been looking to grow and to further expand our presence in the commercial sector, so the recent merger with Vine Property Management will significantly improve the services and Andrew Bridge, support we can now offer clients. managing partner The union of the two companies is a perfect fit and we share a belief in ethos, values and levels of customer care, which only adds to the strength of the new group.

James Rigby, senior partner at Vine Property Management, knows all about the value of a great partnership and great people as he takes us through his career history on page 34.

Prepare to be amazed, as our feature on page 12 showcases the incredible talents and sporting prowess of our staff at Fisher German. Their high level of commitment shows what you can achieve if you set your mind to it.

On page 22, we interview DK Group chief executive Kevin Higginson, who talks to us about the company's successful transition from an automotive-related packing firm to a broad industrial holding company. Graham Lee, owner of Statfold Barn Railway, is another inspirational character to feature in this issue. On page 18, he highlights what an interesting journey his career has taken and continues to take.

UK rail infrastructure

As construction around HS2 continues, we look at what the future holds for the UK's rail infrastructure

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Heat pumps

Egg production

Heat pumps are becoming more mainstream, offering similar benefits to other renewable energy sources

Sunrise Eggs has grown into a highly successful operation supplying eggs to an array of businesses

24 People news

Nominees for Young Surveyor of the Year and new senior partner announced

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26 Partner spotlight

Vine Property Management senior partner James Rigby takes us through his career so far

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The Fisher German magazine is intended to be an informative guide. It should not be relied on as giving all the advice needed to make decisions.

Fisher German LLP has tried to ensure accuracy and cannot accept liability for any errors, fact or opinion. If you no longer wish to receive the Fisher German magazine or any other Fisher German marketing material, please email marketing@fishergerman.co.uk.

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News & views

New tech in agriculture

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Market Harborough office celebrates 200 years, plus the latest farm machinery auctions

The agritech innovations that are driving change in agriculture

Affordable housing

Brand champions

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As demand is set to grow, what does the future have in store for affordable housing?

Statfold Barn Railway

Fisher German employees' day jobs are often linked with their achievements outside of work

DK Group profile

An interview with owner Graham Lee

Chief executive Kevin Higginson talks growth and strategy

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22 The UK Growth Corridor

Thatched properties

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The Growth Corridor between Cambridge and Oxford is set to see huge expansion over the coming decade

Sector insight

Thatched properties are making something of a comeback in the UK and it’s not hard to see why

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What lies ahead for the firm and its clients

Fisher German's national offices

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Publishing services provided

by Grist, 36 Great Pulteney Street, Soho, London W1F 9NS, UK

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Office directory

Publisher Andrew Rogerson Editor Tracey Gardner Art director Jennifer Cibinic Designer Gio Isnenghi Website www.gristonline.com

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news&views

Market Harborough office celebrates 200 years Colleagues old and new from Fisher German’s Market Harborough office came together on 4 July to celebrate their 200th anniversary of working in the town.

The event was a great success in bringing together current and former colleagues, along with their families, for a tea party at The Old Rectory in nearby Church Langton.

Catering was provided by Jane Graham at Options Catering, which is based on a local estate managed by Fisher German. Meanwhile, the cake was supplied by Market Harborough-based bakery Freddy’s cake and party shop.

There was also a treasure hunt and bouncy castle for the children, while new and old friends enjoyed sharing stories about their time working in the Market Harborough office.

Farm machinery goes under the hammer Fisher German is seeing an increase in the number of farm machinery sales taking place, with the most recent auction held in September.

Whether it is retirement, business reorganisation or surplus stock, the onsite auction remains an effective way of disposing of farm machinery and equipment quickly and efficiently while providing complete transparency.

Larger more valuable items create exposure and interest, which then benefits the sale of smaller lots.

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Buyers will often attend an auction with the intention of buying a particular item, but then on the day discover other items also of value to them, adding to the bidding activity.

The Fisher German auction team, headed up by Jack Healy and Richard Watkins, has significant experience in arranging sales and selling machinery at auction, and in recent years has sold millions of pounds' worth of machinery and equipment nationally.

Doncaster office sponsors rugby union club

Fisher German’s Doncaster office is supporting the Doncaster Knights rugby union club as they celebrate two years in the growing town.

Fans of the Greene King IPA Championship team will be seeing Fisher German’s name and logo around the stands at Castle Park throughout the 2019/20 season as part of a new sponsorship agreement.

Fisher German will be sponsoring the next Farmers’ Day as part of the sponsorship agreement, with the event usually attracting around 300 people from the local farming community. It’s a complementary partnership for the business, which has always kept strong links to the sporting community.

Michael Casey, commercial manager at Doncaster Knights, said: “As an ambitious Championship club the support of our sponsors and commercial network is invaluable and we are very happy to have developed ties with another fantastic business with strong roots in Doncaster.”

Fisher German senior partner Tim Shuldham adds: “It is a great way for us to celebrate two years in Doncaster and South Yorkshire by announcing our support of the Doncaster Knights. It’s an exciting time for the club and we look forward to cheering the team on from the sidelines and getting involved in their business events throughout the year.”

It is a great way for us to celebrate two years in Doncaster and South Yorkshire by announcing our support of the Doncaster Knights.

It’s an exciting time for the club and we look forward to cheering the team on from the sidelines and getting involved in their business events throughout the year.”

Tim Shuldham, Senior Partner

Partners take action for children’s medical research A team of Fisher German partners took on the Race the Sun challenge in the Lake District at the end of August.

The challenge involved 60 miles cycling, climbing Helvellyn and kayaking across Lake Thirlmere to raise money for Action Medical Research.

Managing partner Andrew Bridge and partners George Simpson, Matthew Barker and Stuart Flint travelled to the Lake District and spent a gruelling day in the pouring rain taking on the challenge against 25 other teams, coming an impressive fourth overall.

They exceeded their target of raising £2,000 for Action Medical Research and also raised an additional few hundred pounds for Fisher German’s charity of the year, Contact the Elderly.

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A breath

of fresh air The agritech innovations driving change in agriculture.

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f you’re familiar with money markets then you’ll undoubtedly have heard of fintech – the use of new technology (in this case largely software-related) to improve how the financial sector operates. But you may have heard less about agritech, even though it could revolutionise the land-based economy.

If that language sounds a bit strong, consider how Fisher German’s head of agribusiness, David Kinnersley, puts it: “Agritech has the potential for there to be significant change in the way the whole agricultural supply and production business operates – within the next five to ten years.”

So far advances have largely been seen in hardware – GPS guidance and control systems, for example, that are associated with the development of so-called precision farming. What makes the future so exciting is the combination of these hardware products with increasingly sophisticated software that will eventually incorporate machine learning and artificial intelligence, allowing automation and productivity improvements that, until recently, were the stuff of science fiction.

“If you understand the drivers for change, you can get a good grip on how powerful they are and how quickly change might happen,” suggests David. For agribusiness,

mounting global pressure to reduce antibiotic use, pesticides and inorganic fertilisers driven by policy makers are key issues. “These drivers are pushing us down a route where the line between non-organic [conventional] farming and organic farming is going to get increasingly blurred.”

Agritech investors report that they have never seen so much interest in the sector, with alternatives to fossil fuel production of nitrogen fertiliser particularly popular (driven by the pressure to reduce GHG emissions) with those who are willing to put up hard cash.

Another key driver for the sector is labour, suffering from a double whammy of a shortage of skilled workers and a growing unwillingness among both skilled and unskilled workers to accept the antisocial hours often required when rearing livestock.

Here, new technology has been slower to provide alternative economic solutions, such as the robotic workers which have transformed car manufacturing.

Change, though, is definitely on the way. Take a cowshed that uses cameras and collars to monitor the heart rate and temperature of individual cows – that will determine automatically whether a herd is moving around and restless or relaxing and chewing its cud sufficiently. Gut sensors

One thing is for sure: new technology brings with it a wealth of opportunities. Those who identify and, crucially, act on them are likely to reap the rewards.”

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Agritech hits and misses Vertical farming “One thing that farmers can’t do is control the climate, which is a big cost and risk to them,” says David. “So vertical farming is quite interesting, because the climate can be controlled, meaning you can better predict the yield and match supply and demand more closely. That starts reducing risks and saving costs.” Europe’s largest vertical farm (17 storeys high) opened in Lincolnshire at the end of 2018 and expects to produce 420 tonnes of plants each year.

Cultured animal protein The first lab-grown burger was served in 2013, though the first steak didn’t follow until five years later. David is not convinced that consumers will be won over or even that the concept is sound for red meats but may be viable to replace others. “I’m not sure it offers a viable solution to climate change and greenhouse gas mitigation,” he says.

“I think we need to understand better how micronutrients from naturally farmed sources work as opposed to food from a sterile lab.

Also, is it better to be producing a steak in a warehouse or on a field which acts as a carbon sink?”

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take stomach acidity measurements and animals are automatically weighed as they arrive for milking.

All of this is now possible but, David points out, as with much new technology, it may also come with a hefty price tag.

“Affordability and return on investment will be a key determinant of take-up of the solutions coming forward,” he says.

“While we’ve seen prices of drone- and GPS-related equipment fall [and the fewer tramlines in fields are testimony to how effective the new technology can be], there has been a substantial rise in the cost of farm machinery over the past five years.”

Long-term gains vs initial costs

One of the major challenges for UK farming as it moves away from a farm subsidy system is that the risk of running a business with narrow margins increases quite substantially. That risk can be mitigated by cutting production costs, and the ability of new technology

to offer potential savings means that the industry is more receptive to the changes that will accompany it than it might otherwise have been.

“In my experience, people are likely to be pragmatic about new developments and if the benefits outweigh the cost then they will be adopted quite rapidly,” notes David, who points to the widespread introduction of GPS guidance systems and similar precision technology, such as radar-controlled fertiliser application, where cost savings have been clearly proven. In other areas, such as precision seeding or driverless tractors, the benefits are less obvious so take-up may take much longer.

Regulatory change will also determine how quickly technological advancements transfer to everyday practice. A prime case is gene editing. David states: “A change in the law in this area could have quite an impact because better-bred plants could potentially be brought to market quicker than a pesticide could

Drones

Agritech trends to watch Bio sensors

Sensors are already contained in tags that are attached to farm animals to determine their location and health. Now scientists have developed sensors, which can be embedded in individual plants to measure, for example, how quickly water moves from the roots to the top of the plant. This data can then be used to breed more robust and efficient crop varieties.

Blockchain

It’s taken a while for these mini flying machines to really take off in the agricultural sector, but the latest versions are easy to control, stable in flight, use precise and powerful cameras and – crucially – download data to software that provides meaningful analysis for the end user.

Platforms incorporating AI are beginning to emerge. One pioneering example already available uses software to bring together machine learning, AI and local data (both real-time and historic) to enable users to make better land-use decisions more quickly.

Gene editing

Plant breeding used to be a time-consuming, wait-and-see process of combining different plant varieties. The ability to alter the make-up of plants at the DNA level excites some and worries others, but the theoretical possibility of instantly creating improved varieties is certainly alluring.

Satellite tracking

With more than 5,000 satellites now moving round the earth daily, the costs associated with using satellite data have fallen significantly and are expected to continue to do so as smaller, lighter craft are launched into space over the next few years. These can automatically look out for issues on the ground including disease progression, pests, drainage problems and equipment breakdowns.

Traditionally associated with cryptocurrency, and arguably still broadly misunderstood, the basis of this technology revolves simply around digitally recording transactions in an instantly verifiable and incorruptible way. The potential for agricommerce is huge and early adopters have already proved that digitally tracking foodstuffs from seed to fork is possible.

be brought forward through the existing regulatory regime. If it takes, say, ten years for the latter and you can edit plants to be resistant to certain issues in a shorter timescale, that makes things very interesting.” An indicator that this could well happen is the current repositioning of pesticide manufacturers as crop service companies.

As many factors coalesce the eventual outcome is hard to predict. However, David concludes: “One thing is for sure: new technology brings with it a wealth of opportunities. Those who identify and, crucially, act on them are likely to reap the rewards.”

Artificial intelligence

Robot workers

No longer the stuff of science fiction, robots are already (literally) in the field, where in the task of weed control they have reduced agrochemical use by up to 90 per cent. A new generation of machines is already being tested for nut harvesting and fruit picking, areas previously thought too challenging for automation.

Fisher German viewpoint: Impact of agritech The rapid advances in technology and the novelty of new gadgets sometimes means it is easy to lose sight of the bigger picture, in this case how the sector as a whole, and those who work within it, will change. “With economic pressures and risks building up, I think we’ll see larger, more integrated agricultural businesses providing the majority of our food and I think they’ll be high-tech businesses – I’m very sure of that,” says David. This is not necessarily a bad thing but it will create challenges.

As the gap widens between those large companies and smaller businesses, which will be increasingly niche and may be parttime, new technology may actually allow that to happen more easily. “For example, you won’t need to be with your cattle all the time or see them twice a day if you can track them on computer and keep on top of their welfare earlier,” adds David. “That frees you up to do other things. So, you could well produce grass-fed beef and also have more time to do something else.” The divergence between niche businesses and large mass food producers is set to continue.

David Kinnersley 07501 720405 david.kinnersley@fishergerman.co.uk

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Supply, demand

and affordability As demand is set to grow in the coming years, what does the future have in store for affordable housing?

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arely a day now goes past without a reference in the news to affordable housing. Yet while the phrase is mentioned with increasing regularity, many still feel slightly bamboozled by the term. What does it actually mean? Many definitions, including that set out by the government in the UK’s most recent National Planning Policy Framework, are not necessarily that helpful as they border on the technical.

“To be fair, it is a complex subject, which is why we have specialists in our teams who are on top of the finer details,” acknowledges Fisher German head of building consultancy Richard Benson. “But, put simply, affordable housing means homes that are offered for sale or rent at prices lower than local market rates.”

Importantly, a discounted price doesn’t imply a reduction in quality. “Unfortunately,

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some associate affordable housing with low-quality council housing of the past, and that couldn’t be further from the truth,” explains Richard.

Many modern developments that include affordable housing are built tenure blind – which is industry-speak for saying that all homes are finished to the same standard.

“In fact, all affordable housing is impressive in its quality,” Richard notes, “which means that there is value in it. Understanding that is key to maximising overall land values.”

The reason why affordable housing features so often in the headlines is linked to the chronic undersupply of housing, which over recent decades has failed to keep pace with a growing population that requires more individual homes. This supply/demand imbalance is particularly acute in London and the Southeast, leading to major new housebuilding initiatives,

such as in the Oxford-Cambridge Corridor (see Growth Corridor feature on page 28). “But the issue is really a nationwide one,” points out Fisher German associate director Luke Brafield, “and we are finding that, for example, in both the East and West Midlands, there is substantial unmet demand.”

Something for everyone

How quickly and where new homes should now be provided is an ongoing debate between politicians and housebuilders.

Nevertheless, one of the clear conclusions of a government-commissioned review

by Sir Oliver Letwin, published in late 2018, was that whoever builds the homes should construct an increasingly wide array of types and tenures. This was a tacit acknowledgement of the need to provide more affordable housing in future.

Expert advice on affordable housing As demand for, and provision of, affordable housing is set to grow substantially over the coming years, landowners, housebuilders and residential providers alike will increasingly require the input of third-party professional consultants. The most experienced advisers will offer combined services in all of the following key areas: • Assistance in Section 106 transactions: providing expert insight and analysis to enable swift, efficient and hassle-free completion.

• Offers from residential providers on market housing schemes: negotiating with relevant parties to get the best possible deal.

• Exploring additionality for housebuilders: allowing for the creation of more affordable housing than originally envisaged in individual market housing schemes.

• Rural exception sites: making the case for (affordable) housing to ensure local communities thrive and prosper by enabling housing access for the existing population.

• Building consultancy services: monitoring the build quality of affordable housing during and after construction through adept, skilled project management.

Affordability has become an issue since the last economic crash saw earnings decrease while house prices, due to the undersupply mentioned above, continued to rise. “On average,” says Luke, “official figures show that working people could expect to pay around 7.6 times their annual earnings on purchasing a home in England and Wales in 2016. That’s up from 3.6 times earnings in 1997. The government defines households paying above seven times annual earnings as in crisis.”

Building momentum

As the housing market attempts to play catch-up, it is clear that there will be considerable demand for affordable housing for many years to come. Until recently, most affordable housing was in the hands of a limited number of registered providers (previously known as housing

associations). But now the market is beginning to diversify and expand. Strategic partnerships with Homes England and grant funding from government sources have increased the purchasing powers of registered providers and created more opportunities for them to buy more homes for affordable use than were originally allocated.

“What is exciting about the future for affordable housing is that we are seeing new entrants, which suggests that the market is being taken increasingly seriously,” says Fisher German development surveyor Amy Bowden.

Although the government relaxed the rules allowing residential providers to become for-profit organisations in 2008, new arrivals were initially slow to appear.

Now, however, Real Estate Investment Trusts (REITs), institutional investors and private equity firms (such as Blackstone – see case study) are entering the space.

“There is a growing appreciation that the affordable housing market is countercyclical [largely unaffected by property cycles] due to its long-term asset base and revenue stream,” explains Amy. “That means yields are low but stable.”

Residential providers, who previously tended to bid on plots owned by housebuilders and allocated as affordable housing under the Section 106 process (a legal agreement between local authorities and developers), are increasingly willing to consider other sites and compete in the open market, as major players such as L&Q, Orbit and Clarion Housing Group have recently demonstrated. Amy emphasises: “This is a marked shift and demonstrates that the affordable housing sector is becoming simultaneously more mature and complex.”

Affordable housing – a definition “Housing for sale or rent, for those whose needs are not met by the market (including housing that provides a subsidised route to home ownership and/or is for essential local workers); and which complies with one or more of [four categories of affordable housing].”

National Planning Policy Framework, 2019

Case study: Sage Housing Sage Housing, owned by US private equity giant Blackstone, is pushing into the Midlands and other parts of the UK, as it grows from its original base in London and the Southeast. It has acquired 38 affordable homes at Warton in Warwickshire and instructed Fisher German to manage the build process.

The properties are part of a broader new housing scheme, totalling 100 homes, masterminded by developer Richborough Estates and subsequently sold to housebuilder Bellway Homes.

Fisher German was also involved in brokering the sale of the affordable units to Sage.

Richard Benson 07768 552827 richard.benson@fishergerman.co.uk

Luke Brafield 07468 860081 luke.brafield@fishergerman.co.uk

Amy Bowden 07880 190978 amy.bowden@fishergerman.co.uk

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The art of

For many Fisher German employees, the motivation to achieve winning results in their day job is inextricably linked with their activities outside of work.

determination

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nyone who has crossed the finishing line or scored in a sporting endeavour understands the self-discipline and determination required to achieve success. And they will undoubtedly appreciate how those same qualities are similarly crucial in a workplace setting.

“Our teams include people who have reached incredible levels in their chosen sports,” says Fisher German managing partner Andrew Bridge, “and their commitment to directing their talents

to gain the best results for our clients demonstrates how, as a firm, we are living by our values.” Those values include pioneering spirit, expert knowledge, deep trust and relentless drive.

Clients are not the only beneficiaries of Fisher German’s enthusiastic workforce, who also devote considerable energy and much of their spare time to charitable activities. These include events in aid of the firm’s chosen charity, nominated annually by employees (currently Contact the Elderly), as well as local initiatives

such as the Big Worcester Sleep Out, an event supported by individuals in Fisher German’s Worcester office to tackle homelessness in the city.

“We’re delighted with the active, go-getting attitude of people who are attracted to Fisher German,” says the firm’s head of communications, Caroline Gardner. “Whether they are participating in a charity or sporting event [or both], they invariably bring the same understanding, creativity and excellence they deliver at work and we’re proud to celebrate that.”

Our teams include people who have reached incredible levels in their chosen sports and their commitment to directing their talents to gain the best results for our clients demonstrates how, as a firm, we are living by our values.”

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Jonty Rawcliffe

Graduate surveyor and rugby semiprofessional What does your current role at Fisher German involve and what is your professional background?

I assist with the management of four family estates in Cheshire. I’ve previously been involved in utilities work, while also assisting with professional advice relating to valuations, sales and acquisitions.

I graduated from the Royal Agricultural University in 2016 with a degree in rural land management and am aiming to become a qualified surveyor.

How did you get involved in rugby and what is your proudest sporting achievement to date?

I’ve loved the sport since a toddler and joined Bury St Edmunds rugby club in Suffolk at the age of four. The influence was likely due to my father’s love of the game. While I play in National League 1 for my club, Sale FC, and have competed in Fisher German’s recent touch tournament and the Surveyors 7s in London, I’m still chuffed that I was unbeaten in my final season of schoolboy rugby. This was a real achievement considering how poor we had been!

How do your sporting experiences in rugby benefit your professional work?

There are many parallels between the two which have benefited me on both fronts. Not only is there a strong focus on hard work and commitment between both careers, but also the importance of developing teamwork and leadership.

Laura Knight

Senior associate and rower

What does your current role at Fisher German involve and what is your professional background?

I am a surveyor in the national utilities and infrastructure team based in Ashby.

I work for large national utility companies, dealing mainly with access and rights, compensation and regulatory projects. I didn’t take the usual route into surveying, so I’ve had an interesting career path. I’m

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a member of the Chartered Management Institute as a result of completing an MBA at Derby University in 2014 and am also a qualified sports massage therapist.

How did you get involved in rowing and what is your proudest sporting achievement to date?

I got hooked as a child and, as a result, my horse-riding obsession was soon out the window (much to my parents’ delight). I won the first regatta I competed in and didn’t look back, though I’ve had a break after my son was born. I’m now looking forward to competing in regattas again all over the country. Winning a silver medal in the women’s coxless pairs at the National Championships of Great Britain in 2002 and securing my place on the GB squad are personal highlights.

How do your sporting experiences in rowing benefit your professional work?

Rowing in crew boats is like working in any team, though it isn’t a loud activity.

It’s about getting results from working together, in an often-quiet manner. You all take the lead of the input that you put in and I liken this to the process I try to achieve at work.

Matthew Willoughby

Associate director and racing driver

What does your current role at Fisher German involve and what is your professional background?

I’ve recently moved to our Newark office to build up a utilities and infrastructure team in Yorkshire and North Midlands. I qualified as a chartered surveyor with another firm but subsequently decided that I wanted to specialise in utilities work, which brought me to Fisher German.

How did you get involved in motorsport and what is your proudest sporting achievement to date?

Initially it was something that I did with my Dad in his Caterham 7. I then started competing on a regular basis and in 2018 won the Classic Graduates Championship, in spite of a crash at Castle Combe.

How do your experiences in motorsport benefit your professional work?

Many of the same qualities are needed to be successful, such as determination and commitment. You always have to look for marginal gains to get better results, either at work or in a race.

Michael Harris

Partner and rower

What does your current role at Fisher German involve and what is your professional background?

I head the property agency team in Chester as well as overseeing the agency teams in Knutsford and Stafford. I have considerable experience dealing with developers, from concept to the sale of the completed properties and first-rate knowledge of high-value city homes. I started my career in London as a civil engineering graduate, but when I realised that wasn’t for me, I established a residential property management business in Chester.

How did you get involved in rowing and what is your proudest sporting achievement to date?

I was fortunate to attend one of only four state schools in the country with a rowing club (Queens Park High School in Chester) and I was captivated following my first outing. I’ve represented Great Britain at junior, U23 and as a senior in the World Championships, but the most special moment for me was representing Team GB at the Barcelona Olympic Games in 1992.

How do your sporting experiences in rowing benefit your professional work?

Other than the single sculling event, you can’t win a race alone and, consequently, I have always appreciated the need for an effective and motivated team around me. Rowing has also taught me the art of determination and commitment. Things don’t always go as planned and that’s proved to be an invaluable experience for my professional career.

Darren Edwards

Partner and jockey

What does your current role at Fisher German involve and what is your professional background?

I’m regional managing partner for the East Midlands and head of our nationwide sustainable energy sector. I’ve worked my way up through the ranks since joining Fisher German as a graduate in 2006.

How did you get involved in horseracing and what is your proudest sporting achievement to date?

I have family links to the sport, so it’s a long-standing interest. I’ve been fortunate enough to race over 250 winners but riding a 40/1 winner at the 2004 Cheltenham Festival must top my list of proud moments.

How do your sporting experiences in horseracing benefit your professional work?

In lots of ways, but most of all with communication and thinking quickly. You learn swiftly how to politely tell someone that their prized equine investment is now worth significantly less than it was five minutes ago before it started the race.

Occasionally it can be the opposite and worth significantly more.

Rebecca Nicholson

Rural administrator and eventer

What does your current role at Fisher German involve and what is your professional background?

I’m a rural administrator, working part-time at the Knutsford office. I’ve worked in various property-related jobs from estate agency work to property management, although I actually graduated as an architect.

How did you get involved in eventing and what is your proudest sporting achievement to date?

I have ridden horses since I was a child and have been lucky enough that my parents encouraged this passion. After watching Badminton Horse Trials one year, I decided to enter my first event at Eland Lodge in Derbyshire. I’m most proud of completing my first CCI*** at Blenheim Palace in

2017 (now a 4* course). Most riders who compete here are full-time professional riders with many owners and horses, and I managed to qualify for this worldrenowned venue with just my one horse who I brought up from novice level in only a couple of years.

How do your sporting experiences in eventing benefit your professional work?

Eventing challenges a rider to be quick thinking and this has really improved my problem-solving and decision-making skills. It also plays to my strengths of being goal-orientated, as I like to plan and see the journey through, whatever it may be.

Caroline Gardner 07917 064650 caroline.gardner@fishergerman.co.uk

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As construction around HS2 continues, so does the debate around whether the scheme should go ahead or not. What does the future hold for the UK’s rail infrastructure?

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ail travellers into Birmingham’s New Street can’t fail to notice the massive preparatory works taking place just outside the station leading the way for construction of the city’s HS2 Curzon Street terminus.

Yet despite this evidence on the ground that work has already started, the high speed rail scheme is regularly called into question and denounced by its critics, who are calling for the scheme to be scrapped altogether.

“As I travel around the country, the thing I’m asked most is whether HS2 is going to go ahead or not,” confirms Fisher German partner and head of compulsory purchase and compensation John Ikin. “Obviously it will be politicians who will decide if there will be any changes, but as we have seen from the large number of notices served on landowners recently, HS2 Limited is very determinedly moving the project forward.”

Transport commentators suggest that it will not be long before the scheme reaches a tipping point, after which it would be more expensive to cancel than continue with it. “HS2 is actually split into three parts,” notes John, “and the first – linking London with the West Midlands and Birmingham – is currently due to open between 2028 and 2031.”

However, the viability of subsequent phases (to Crewe and Manchester/Leeds respectively) has already been called into question. And it is at present unclear what would happen if an independent review of the whole scheme, which is due to report by the end of 2019, suggests it offers poor value for the public purse, as the government has not ruled out scrapping the entire venture.

The uncertainty surrounding the future of the project, combined with the political sensitivities of the project, appears to be taking its toll on some of the day-to-day workings of HS2. “We are finding that

Major infrastructure projects, including new rail links, can be hugely disruptive for the people whose homes and businesses are displaced. What I’m particularly concerned about is to ensure that landowners are fairly and swiftly compensated.” relatively small decisions are being made at quite high levels,” reports John, “and that can result in decisions either being made out of context or taking a long time to come through, which is leading to considerable frustration.” Those who work closely with the organisation suggest that there needs to be a renewed mindset at a senior level to free up the decision-making process.

Long-term vision

Supporters of HS2 suggest that the new route is having a significant regenerative effect at many of its calling points and other parts of the UK are now considering whether rail links can pump-prime local regeneration efforts. Plans are already well advanced for East West Rail, a commuter (rather than high speed) link between Oxford and Cambridge (see the Growth Corridor feature page 28) that could open in its entirety before the first phase of HS2.

And further north, statutory body Transport for the North is developing plans for a new high speed trans-Pennine rail route.

Originally dubbed HS3, it has been rebranded as Northern Powerhouse Rail, and the new sections would link Leeds and Manchester and Manchester and Liverpool.

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Timings for the proposed project are unclear, but might coincide with the completion of a future phase of HS2 in 2033.

While those in favour of high speed rail claim that it is important for the wider UK economy to have vision, think big and not just put plasters on the existing network, others remain unconvinced about the value of new schemes and suggest that the large sums involved would be better spent improving existing rail connections. “I understand both sides of the argument,” says John, “but what needs to be acknowledged is that major infrastructure projects, including new rail links, can be hugely disruptive for the people whose homes and businesses are

High speed rail should bring benefits for all in UK regions The huge amount of money being invested in HS2 to link up UK regions is helping to dispel the notion that London gets the biggest slice of UK transport funding. “There are clearly benefits for the areas around HS2 hubs like Birmingham, Toton [East Midlands], Crewe and Leeds,” reports John. “We are seeing a genuine enthusiasm for all kinds of development, from office blocks to retail and hotels.”

While there are likely to be significant benefits to the wider economy from this kind of development, John is keen to point out that these should be equitably shared between all those involved. He says: “The land required from existing owners is expected to provide long-term gains for local communities, so it is only right that those owners are treated fairly and receive proportionate financial recompense promptly.”

displaced. What I’m particularly concerned about is to ensure that landowners are fairly and swiftly compensated.”

The case for major rail projects hasn’t been helped by London’s Crossrail, a mainline tunnel under the capital linking routes to the east and west of the city that was due to open by the end of 2019. For much of its construction billed as on time and on budget, the true extent of problems was only recently revealed, that will delay opening by up to two years and has ratcheted up total costs of £2.8bn. “I’d like to think lessons are being learned for future rail projects, but I’m not convinced that they are,” states John.

“The early stages of the process, including land acquisition and compensation, are by now well understood – other rail routes and motorways have all been through it.

Rail links are just long strips of land and should be approached in that way. Yet what we seem to see each time is a scheme promoter effectively reinventing the wheel, when they should be able to get up to speed much more quickly.”

He is, however, heartened by the responses of investors who have already started scoping land around potential rail routes. “It may still be early days for HS2, for example,” he says, “but speculative investors are already considering land close to stations and motorway junctions and that can surely only benefit the wider UK economy.”

John Ikin 07887 627978 john.ikin@fishergerman.co.uk

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17

Feats of

Statfold Barn Railway has grown to become the most significant collection of narrow gauge locomotives in the UK. But this isn’t the only impressive string to owner Graham Lee’s bow as we discover how he has challenged and educated himself at every stage of his career.

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engineering B

ump into Graham Lee on holiday and – poker-faced – he’s likely to introduce himself as a “Black Country metal basher”. But don’t be fooled: this 75-year-old entrepreneurial, self-made businessman has moved with alacrity from construction and engineering to farming and tourism and shows no sign of slowing down.

Born in Oldbury, West Midlands, towards the end of WWII, Graham was raised in the austerity of the post-war years, leaving school at 15 to work as a labourer in his father’s construction company. Even as a teenager, though, he had ambitions to better himself. “I’m a self-motivated person,” he explains, “so I did a correspondence course [a popular long-distance learning method at the time], followed by technical college and raised the level of my education.”

At the same time, Graham realised that he had a knack for fixing things. While working at his father’s firm, it was Graham who people turned to when equipment broke down. Word of his ability to revive machinery soon spread and when his father died, he decided to set up his own engineering business. His previous experience led him to specialise in American-made construction equipment.

“In those days a lot of machinery was antiquated, ex-Army surplus, so you had to make all the spare parts and adapt things,” he recalls. “When something went wrong no one else knew how it worked, so they went looking for somebody with the knowledge to repair it and I happened to be that guy. I basically built my business on that in the early days.”

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19

Pastures new

By then Graham and his family had moved away from the industrial heartland of the Black Country and joined an exodus of former Birmingham-area residents who had moved to the much greener landscape around Tamworth in Staffordshire. Starting in business on his own, he soon recruited a couple of mechanics and his company – LH Group – grew over several decades to become a UK market leader in rail traction transmission systems. His intention to name the company after his father Howard Lee’s initials was altered at the last minute when it was discovered that ‘HL’ had already been registered.

By the 1980s, LH Group was specialising in manufacturing power supply systems and many large generators were exported across the globe, particularly to Africa and Asia. Graham travelled extensively during this time. “In those days you could travel around the Middle East and Africa relatively easily, so we’d often borrow a pick-up truck

on our days off and drive round the country,” he remembers. These escapades also allowed him to indulge in his passion for narrow gauge steam railways, as he visited working operations, from mines to sugar plantations, and identified often-Europeanbuilt machines that he would later repatriate.

His interest in railways had also brought him to the attention of engineers at the then-nationalised British Rail, who were experiencing problems with a new fleet of diesel trains. Graham’s problem-solving prowess led to LH Group moving into supplying rail transmission systems and by the time the company was purchased by US business Wabtec in 2012 it had become a market leader, with an annual turnover of around £50m and employing more than 400 people at its site in Barton-under-Needwood. “What started as something very small turned into

When something went wrong no one else knew how it worked, so they went looking for somebody with the knowledge to repair it and I happened to be that guy. I basically built my business on that in the early days.”

something much larger, but I enjoyed the challenges it brought along the way,” says Graham, who stood down as LH Group’s chairman when the business was sold.

Long before then, however, he had already moved into a new business sector when he relocated his family (including wife Carol and their three children) to a new home in the fields outside Tamworth.

Statfold Barn, which he won at auction after spotting an advert in a local newspaper, came with 20 acres of agricultural land. Graham soon acquired neighbouring plots totalling 1,800 acres of predominantly arable land. His unintended foray into farming in the early 1990s led him to look in particular at one crop that was grown on his holdings: rapeseed.

Rather than simply selling the crop, he capitalised on his engineering background to source a cold press from Germany, and a new company, Statfold Seed Oils, was born.

Graham says: “The idea with seed oil was to add value. Coming from industry I’m used to the process – you get a bit of steel, drill a hole in it, bend it and sell it on for a profit.

That’s much harder to do in farming.” He quickly realised rapeseed oil was a relatively low-value commodity, but a chance encounter with late The Body Shop founder Dame Anita Roddick, who later became a personal friend, saw the business move into other crops, including hemp.

The trouble with hemp

When Anita suggested that Graham’s seed oil company might provide her business with hemp oil, he had no idea of the trouble cultivating it locally would cause. “I didn’t really know anything about it, as you couldn’t just Google it back then,” he says.

When revellers invaded one of his fields

Statfold Barn Railway and Narrow Gauge Trust “I was always fascinated by Victorian engineering – I like Victorian architecture and the way Victorians invented things,” says Graham. One invention that he was particularly captivated by was the narrow gauge steam locomotive, thousands of which were built during the Victorian era and beyond to work around the world in areas where a normal (standard gauge) railway wouldn’t fit. Many were built by British firms and when Graham bought his first locomotive, he didn’t realise it would form the foundation of a collection now totalling around 70 two-foot gauge engines, many of them still serviceable, collectively worth around £25m.

A good proportion of the examples at Statfold were rescued by Graham from overseas locations during time out on business trips. He built a narrow gauge railway around the fields at Statfold to run the trains on, originally as a private venture. But since the formation of the Statfold Narrow Gauge Trust, and the opening of a large roundhouse museum in 2018, the site is becoming increasingly accessible to the public. By setting up the Trust, Graham has effectively gifted his collection, and the buildings holding them, to future generations for posterity.

20 fisher german magazine

mistaking the plants for cannabis, the police were overwhelmed. Graham smiles: “We had to destroy the crop, with a policeman riding on the tractor so that it wasn’t mobbed. Needless to say, we imported our hemp oil after that.”

Never one to stand still, and despite having more than 2,000 acres of land around Statfold to provide crops for the seed oil business, Graham realised that bulk supply of oil was becoming increasingly competitive. With his grown-up daughter now at the helm, and the cachet of being a major supplier to The Body Shop, the company changed gear and moved into the cosmetics sector, sourcing and distributing highgrade oils from around the world to blue-chip cosmetics manufacturers.

In 2013, 15 years after setting up Statfold Seed Oils, Graham stepped down from the business. For many in his shoes, this would have heralded the start of a well-earned retirement, but instead he diverted his unflagging energy to the collection of narrow gauge steam locomotives and the railway he had built at the farm.

Statfold Barn Railway is now making a mark on the map as a local tourist attraction and Graham has plans for it to diversify away from its railway origins towards attracting families in search of a fun day out: “Not everyone wants to ride on a train,” he observes.

In summer 2019, he hosted the first-ever Statfold Festival, a family-friendly mix of music, food, funfair and, yes, train rides. This is destined to become an annual event to provide an income for the Narrow Gauge Trust. “It was a steep learning curve running a festival for the first time,” admits Graham with a wry grin. “But at 75 I’m still educating myself, because life’s an education isn’t it?” www.statfoldbarnrailway.co.uk

Alison Darwent 01530 410839 Alison.Darwent@fishergerman.co.uk

Graham’s advice for…

Recent graduates “My advice to those starting out on their career is to forget about a high salary to begin with and really immerse yourself in your chosen business. Then when you have meetings with directors and senior people you can talk to them knowledgeably, as you’ll know from your own experience how things are. You also need to establish yourself first before you go after your passion. We all have to live, eat, look after our family, buy a house, and so on, so it’s important to get your priorities right early on.”

Business leaders “As a chairman you need to understand the business from the shop floor up and understand how it works. Don’t try and manage it down from the boardroom because when things go wrong you need to know why they’ve gone wrong. Then build a good team of people around you that you can really rely on, including a good financial director. Sometimes you need to go through a number of people to get the right person and you need to be ruthless enough to be able to do that, because it’s very important for the company and the workforce that its governance is correct.”

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21

Blazing a trail DK Group has transformed from an automotive-related packing firm to a broad industrial holding company.

Chief executive Kevin Higginson talks growth and strategy and what led to this successful transition.

T

he origins of Rugbyheadquartered industrial firm DK Group are shrouded in history, admits chief executive Kevin Higginson, who joined the 30-somethingyear-old business in 2014. Originally branded KD Group (that name was taken, so the letters were swapped round), it was founded by five families in the early 1980s and dedicated to packing car parts. “What we do know is that those five families still control the business now, though they have progressed through a couple of generations and there are currently 30 shareholders instead of the original five,” says Kevin.

If the ownership structure has remained broadly unchanged, the same can’t be said for DK Group itself which has in the last few years, with Kevin at the helm, undergone a transformation from an automotive-related packing and packaging firm to a broad industrial holding company. The reason a change of tack was considered necessary came abruptly with the global financial crisis in 2008. After a quarter of a century of trading almost solely in the automotive sector, DK Group could see the financial risks of becoming a relatively small player in an industry increasingly dominated by larger companies. Kevin says: “That sowed the seed for

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diversification, leading to a successful transition into the modern investment holding company that exists today.”

Different direction

Change happened slowly initially, however, with the group’s first acquisition in 2013 – Centurion Industrial Packaging, a Cheshire-based manufacturer of woven polypropylene products, including builders’ bags. When Kevin joined a year later, the pace of change notched up a gear. What followed was a strategically led series of acquisitions, closures (principally of a corrugated card production facility) and property restructuring. Kevin explains: “We had very clear criteria for acquisitions: a strong product base (so we weren’t just a labour provider as we had been in

the past), deep product knowledge or intellectual property, a strong and stable profit history and a good management team who were willing to remain with the business.”

The purchase of Lemonpath, a Leicester contract logistics and fulfilment provider, in 2016, and GE Door Manufacturing, a South Wales commercial door and specialist fire door manufacturer, in 2019, took the company decisively away from its automotive roots, while a property restructuring programme freed up around £16m of capital. “Over the last five years the initial plan to move the business onto a new footing has

We have to be nimble and fleet of foot to be able to reposition and move on.”

Kevin Higginson, chief executive, DK Group

DK Group in numbers

400

£50m

10

17.5m

11m

total number of locations

employees, plus up to 450 agency staff at peak times

builders’ bags sold annually

turnover (2019 forecast)

gift sets packed annually

1m sq ft

total floorspace occupied

£3m

earnings (EBITDA, 2019 forecast)

Releasing cash to reinvest in the business

been largely completed,” says Kevin, “so we’re now moving into the next phase, which is reinvesting cash through further acquisitions and at the same time growing our existing businesses.”

While the headquarters will remain in Rugby, Kevin is casting his eye over any potential business that is within a three-hour drive, though he concedes that that actually covers most of England and Wales: “I’ll make an exception for the right business, but one thing I won’t compromise on is the type of business.

It has to be product-based, producing actual products that generate cash.”

If this sounds rather old-school at a time when the wider UK economy is focusing on business services and tech-related growth of all kinds, Kevin is resolutely unapologetic. UK industry is still very much alive, he argues, as long as it is concentrated on niches that allow

Although outwardly similar, the sale of the freeholds of two DK Group properties were quite different. One was a former warehousing and logistics operation known as DK Fulfilment, housed in a 172,000 sq ft building close to junction 3 of the M6 near Coventry.

“Despite being a second-hand building, the shortage of this kind of space across the Midlands meant we attracted serious interest in what we’d now rebranded as Godiva 170 very quickly,” says Fisher German partner Rob Champion. “We negotiated a good price with a London-based investment fund and sealed the deal within six weeks.”

The other sale, of DK’s 192,000 sq ft headquarters on a 10-acre site at Lawford Heath Industrial Estate, west of Rugby, took slightly longer. “As a former RAF base, it had convoluted titles and obscure boundaries, so we had to work closely with Kevin and the solicitors walking the site with title plans to check that what we had on paper matched what was on the ground,” Rob recalls. A sale and partial lease-back was eventually agreed

a firm to add significant value in this country. His confidence is based on his own career, though don’t be fooled when he charmingly and self-deprecatingly refers to himself as a “bean counter” – this chartered accountant is a highly savvy turnaround specialist who has worked across many sectors from food manufacturing, bathroom distribution and technical textile manufacturing to professional consulting. He confesses: “It’s a challenge moving into different areas, but I’m always learning something new or finding a new way of doing things.

For me it’s all about people. I’m not the kind of person who sits in an office and hides behind the laptop. I like getting out and motivating people.”

with ecommerce specialist Rex Brown, allowing DK to remain in 64,000 sq ft, split between two buildings.

“Our building surveying team added value by creating schedules of the condition of the buildings that were leased back,” notes Rob. “This limits DK’s liabilities going forward.

Overall, the successful sale of both freeholds provided DK Group with a healthy cash sum, while at the same time avoiding the upheaval of having to simultaneously relocate the headquarters operation.”

Kevin’s infectious enthusiasm means it is hard to come to any conclusion other than that DK Group is in the safest of hands, even if the course of the UK economy is less certain. He smiles: “We have to be nimble and fleet of foot to be able to reposition and move on. It’s a bit like private equity, but we’ve got the advantage of much longer time horizons.”

Rob Champion 07530 259915 rob.champion@fishergerman.co.uk

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23

As pressure to tackle climate change mounts, heat pumps are becoming more mainstream, offering similar benefits to other renewable energy sources.

S

olar panels. Wind turbines.

Biomass. These phrases have all become commonplace in the English language, demonstrating how quickly renewable energy sources have worked their way into the public consciousness. Yet heat pumps – which offer similar benefits to other renewable sources – have so far stayed out of the spotlight. However, that may be about to change.

24 fisher german magazine

“Put simply, a heat pump uses an antifreeze fluid to absorb low temperature heat from the air, the ground or water and increases it [using a pump and compressor] to temperatures that can be used for space heating, drying and hot water,” explains Fisher German associate Harry Edwards. “Air and water source heat pumps are likely to be suitable for certain

types of use, but we think ground source heat pumps are particularly interesting as they are being installed in a wide variety of domestic and commercial properties.”

They are ideal for new or renovated homes, existing properties with high electric, oil or LPG heating costs, arable farms with large drying requirements, dairy farms with heating and cooling, large estates including stately homes, poultry and pig farms, nurseries, offices and vineyards as well as all types of businesses seeking to reduce heating costs and hit CO2 reduction targets.

Ground source heat pumps work well combined with other renewables sources. “All heat pump systems use electricity to power the pump itself,” Harry notes, “so one way of offsetting that electricity requirement is by using solar panels. A client of mine recently installed

Current* Renewables Heat Incentive tariffs compared (p/kWh) Domestic

Non-domestic

Ground source heat pumps

20.89p

9.56-2.85p

Air source heat pumps

10.71p

2.75p

Biomass

6.88p

4.51p**

NB: The domestic tariff while higher is for a shorter period (7 years) compared with the commercial tariff (20 years) Source: OFGEM

*As at 1 July 2019

** Solid biomass CHP

a 1MW ground source heat pump, which is fed by a 250kW solar PV array and a hybrid installation such as this works well.” In a well-designed system every 1kW of electricity consumed generates 4kW of energy for heating or drying.

Going underground

One of the reasons why ground source heat pumps have so far had relatively little publicity is that installation can be temporarily disruptive and the most costeffective solution (laying the collector pipes which absorb the heat from the ground horizontally in a metre-deep trench) requires a certain amount of land – approximately one acre per 60kW of heat to be generated. The collector pipes can also be dropped into vertical boreholes (up to 100 metres deep), requiring much less space at ground level, but the cost of boring is typically double that of cutting horizontal trenches. Either way, once installed, the pipes are buried safely underground, so need very little maintenance and the area above them can be reinstated so there is no indication that they are there.

“Another thing to be aware of is that heat pumps generally work at lower water temperatures than their fossil fuel counterparts,” says Harry, “so they require larger surface areas [for example, radiators] to produce the same amount of heat.”

Ground source heat pumps are therefore particularly suited to properties with underfloor heating and those which are fully insulated to modern standards. “Heat pumps work best when they are maintaining

a constant temperature over long periods,” Harry confirms. “In some systems, the process can be reversed so that they can also provide cooling during hot summers.”

For buildings suitable for a ground source heat pump, there are considerable upsides. Not least is the fact that the payments made to those using ground source heat pumps under the governmentpromoted Renewable Heat Incentive (RHI) scheme compare very favourably with other types of renewables (see table). Most schemes are likely to achieve a return on investment of between 15 and 20 per cent per annum, so will pay back their costs within seven years.

“I suspect that the relatively low take-up of ground source heat pumps (compared with other renewables) means that the tariff for energy generated in this way has held up well and may continue to do so for some time,” says Harry. “There is definitely an opportunity for entrepreneurial landowners, commercial occupiers and homeowners, particularly those who have the land available to allow horizontal installation.”

As the UK government continues to commit to tackling the causes of global warming, renewable energy sources like heat pumps are likely to become visible to an increasingly wider audience. “Government policy suggests that we have to change the way we heat, so I can see heat pumps becoming much more mainstream,” says Harry.

“Ground source heat pumps could have considerable appeal to the commercial sector, which is under pressure to reduce carbon emissions.”

Water source heat pumps Landowners with access to lakes, rivers and coastal areas may be able to take advantage of water source heat pumps. There are two types of system: open and closed. In the latter, heat collector coils are laid underwater horizontally on the waterbed and the set-up is similar to that of ground source heat pumps. Open systems tap directly into water sources (aquifers) and the water is directed through pipes to a heat exchanger before it is returned to other aquifers.

A key benefit of water source pumps is that the heat transfer rate from water is higher than from ground or air, so the heat pumps run at greater efficiency. Many RNLI life boat stations use sea water sourced heat pumps to heat the buildings.

Air source heat pumps Government proposals to ban the installation of gas boilers in new-build domestic properties from 2025 may result in a significant upturn of interest in air source heat pumps. They are particularly suitable for homes and flats as they require a relatively small area for the heat exchanger (the part of the system that extracts heat from the surrounding air), and this can even be mounted on a wall or roof or in a well-ventilated loft space. Air source heat pumps are low maintenance and have long design lives – up to 50 years. They work efficiently even in the middle of a British winter as they are able to extract heat when outside air temperatures drop as low as -15°C.

Harry Edwards 07585 967797 harry.edwards@fishergerman.co.uk

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25

Laying the foundations Family-run business Sunrise Eggs has grown into a highly successful operation supplying eggs to an array of businesses, both big and small.

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E

ver wondered how many eggs you eat in a year? Prepare to be surprised: latest industry estimates reveal that in the UK each of us chomps our way through around 200 eggs annually. That’s good news for egg suppliers like Leicestershirebased Sunrise Eggs, which has grown from a part-time operation to one of the country’s leading producers.

The family-run business, now led by brothers Phill and Ady Crawley, and commercial manager Chris Stocks, who is a key member of the business, has come a long way since it started with just half an acre of land in the late 1960s. “Our father Tony, a very driven and innovative man, was gifted the land, along with a farmhouse, when he got married, though in the early days he was a pullet rearer,” says Phill. Remarkably, Tony had no previous experience of farming; after training as an electrician, he was taken on by Rolls-Royce in Derby and worked there for more than a quarter of a century on the firm’s naval nuclear reactor programme.

In 1971, Tony switched from poultry rearing to laying hens as he’d shrewdly realised the latter would make for a better long-term investment. “He wasn’t necessarily a chicken man, he was a money man,” says Phill. Sunrise Eggs grew steadily during the 1970s and expanded locally, while Tony worked shifts. But the heavy work load was taking its toll and a health scare in 1979 persuaded him to focus full time on Sunrise Eggs and plan for its future.

“Ady and I grew into the business,” recalls Phill, who was named Poultry Farmer of the Year in 2018 by Farmers Weekly. “Neither of us were forced into it. We had a good education and we chose farming.” By then, the Sunrise flock totalled 150,000 laying hens and all of the eggs went to local retail outlets.

The introduction of Sunday trading in 1994 had a dramatic impact on the business, as small shops declined and egg supply transferred to the major supermarket chains. “In the heyday of the small shop we were packing 2,000 cases a week [a case is 360 eggs] or 720,000 eggs,” remembers Phill. “Now we do 15,000 cases a week [5.4 million eggs] of which only 600 cases (216,000 eggs or 4 per cent of the total) go to small shops. It’s now become a numbers game, with relatively small margins on lots of products.”

Close to home

While the business was going from strength to strength, sadly Tony’s health was deteriorating. “We took over because Dad’s health was failing; if it hadn’t been for that we may not have come into the business as fast as we did,” Phill recounts.

Although the firm has grown since then, with the number of laying birds having more than trebled, the Crawley brothers have kept production close to their roots in Sileby and resisted the temptation to spread out across the country.

“We are a business that likes our owned-and-operated production close to us,” Phill explains. “I like to touch, feel, see and smell. When something is 100 miles away we can’t manage it in the same way we would like to. I’ll buy eggs from further afield, but they have to be from a farmer who is local and living and breathing on that site. If there is an issue with any of our chickens, I can be there in 15 minutes.

I’ve got no intention of expanding our own production more than 20 miles away from here. It just doesn’t suit our business model.”

When you rear for yourself you want the best possible quality animal you can have as it will give you more eggs, which makes the investment worthwhile.”

Sunrise Eggs in numbers

70

1

3

550,000

employees

production units (soon to be expanded to 5)

main location

laying hens

Improvements in laying hen productivity – 2019 vs 1989 2019

1989

change

Productive life of laying hen (weeks old)

16-76

18-70

+ 8 weeks

Number of eggs produced annually per laying hen

340

250

+36%

Laying hen food consumption (grams per day)

120

140

-17%

Laying hen food consumption (grams per day)

1.8

2.2

-17%

Source: Sunrise Eggs

History has come full circle for Sunrise Eggs, however, as within the next year the firm plans to rear pullets so that around one-third of its laying flock will be produced in-house. “When you rear for yourself you want the best possible quality animal you can have as it will give you more eggs, which makes the investment worthwhile,” Phill notes.

The firm has also responded to the future threat of labour shortages by investing £2m in robotic packing equipment, which now handles 70 per cent of output.

Looking ahead, a third generation of Crawleys may eventually enter the business (both brothers have young children) but succession is not on the agenda for now. Instead, Phill marvels at the increase in laying hen productivity over recent decades and mulls over some sage fatherly advice. He says: “Dad always taught me when the business is doing well to put away money in your piggy bank because things will fall over at some point. People have had a long period of things being good and forgotten that it can go the other way.”

For more information, visit Sunrise-eggs.com

Egg consumption in the UK rising The British love affair with eggs is a longterm trend, with consumption rising steadily since 2004. In 2018, industry estimates show that the UK consumed a mindboggling 13.1 billion eggs, a two per cent increase on the previous year, with a total flock size of 40 million laying hens. And the national appetite for all things ovoid shows no sign of slowing down.

In the first half of 2019, according to DEFRA, around 5.7 billion eggs were packed in the UK, with more than 44,000 tonnes bought by egg processors, for use in the food production industry. The average farm-gate price for a dozen eggs was 71p in mid-2019, up very slightly on the price three years earlier. Although the UK egg market is currently reported to be in a state of oversupply, many producers expect the situation to be temporary, as overall consumption rates are expected to continue to rise and major retailers alter their stocking policies.

150,000 300m laying hens to be reared laying annually (planned)

eggs packed annually

Matt Trewartha 07971 457015 matthew.trewartha@fishergerman.co.uk

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The UK’S Growth Corridor The Growth Corridor between Cambridge and Oxford is set to see huge expansion over the coming decade, bringing significant opportunities with it.

W

here in the UK will you find an area that is similar in size to the US’s Silicon Valley, with plans to build one million new homes and construct both major road and rail links? If you picked anywhere along a line linking Cambridge, Bedford, Milton Keynes and Oxford, you are spot on.

The c.6,600 square mile area that connects Oxfordshire, Buckinghamshire, Northamptonshire, Bedfordshire and Cambridgeshire, boasts two of the world’s top-ranking universities and attracts leading global businesses such as Microsoft and ARM is referred to by some as the Five Shires Growth Corridor and others as the CaMKOx Arc. But Fisher German partner Stephen Rutledge believes name tags are less important than what the area represents.

“People describe the location and what’s happening here in various different ways and it’s great that they feel strongly about its identity – it shows how effectively it is already resonating with those who live and work in the area,” he says. “When I describe the prospects for the Corridor though, whether to those who are born and bred here or are completely new to this part of the country, I always end up with a single, defining word: opportunity.”

Growth Corridor is perhaps the most apt title for an area that is set to see eye-watering expansion over the coming decade. “The sheer scale of the likely increase in jobs, population and

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businesses moving to the area is all the more exciting because there is an ambitious government-led framework for development, led by the National Infrastructure Commission (NIC),” says Stephen, “and that will bring with it a huge number of opportunities for landowners, developers, investors and occupiers alike.”

Impressive accolades

According to the NIC, the Growth Corridor is home to some of the UK’s most productive and fast-growing cities and has significant potential for transformative growth. It already contributes more than £100bn to the UK’s economy each year, and is the fastest-growing economic area outside London, as it contains four of the UK’s top ten towns and cities in which to live.

It is also a place where entrepreneurs thrive – two of its cities rank in the UK’s top five for business start-ups – and it attracts innovation, too, with the highest rate of patent applications per 100,000 people in the country, and the top three Local Enterprise Partnerships in England ranked for innovation.

“These accolades are impressive and we don’t take a single one for granted,” admits Stephen, “but ironically they

obscure the fact that the area’s true potential is being held back by limited transport and housing infrastructure.

This restricts connectivity between thriving areas and hampers business agility.”

The government response has been decisive, with proposals to improve both transport links and housing volumes.

One million new homes are proposed within the Growth Corridor by 2050.

To put this in context, Milton Keynes, one of the Corridor’s major towns, has grown to around 100,000 homes since its foundation 50 years ago. “What is amazingly bold about the Growth Corridor proposals is that the equivalent of no less than ten Milton Keynes are expected within 30 years, expanding existing as well as developing new settlement,” notes Stephen.

The planned transport improvements along the 70 miles between Oxford and Cambridge are equally impressive.

Highways England has already started planning the Expressway, a dual carriageway between the two cities due to open by 2030. A new radial rail route, branded as East West Rail, is similarly underway, with completion expected by the mid-2020s. The government has suggested that this may be the first of a new generation of vertically integrated

When I describe the prospects for the Corridor… I always end up with a single, defining word: opportunity.”

Field House

Southam, Warwickshire (Compulsory purchase) The owner of a house and gardens close to the route of HS2 Phase 1 (see rail infrastructure feature on page 16) contacted Fisher German after discovering that their access driveway was included in the safeguarded area. Although this constituted less than 10 per cent of the total property footprint, Fisher German advised on the submission of a blight notice, even though other parties suggested this would not succeed.

The notice was accepted by HS2 and a subsequent compensation claim (including the owner’s moving costs and expenses) was negotiated by Fisher German at a value significantly higher than HS2’s opening offer.

rail companies in the UK (see the rail infrastructure feature on page 16), where private operators operate both trains and track.

“A lot of the planned infrastructure is still at relatively early stages, so the scale of what is planned in the Growth Corridor still hasn’t hit home, even with those who already live and work here,” says Stephen.

Local authorities will have to update their local plans as these don’t currently take the massive expansion expected throughout the Corridor fully into account.

And the national interest in the housing and transport elements of the project mean that it is likely that some land will be acquired by compulsory purchase.

“All of this creates a wealth of opportunities for landowners, developers and investors,” says Stephen. “Now is the perfect time for them to explore what could be multiple possibilities at a unique time in the area’s history. Chances like this are unlikely to come around again here.”

Potton

Bedfordshire (Development) This nine-acre site at Potton in Bedfordshire was speculatively identified

by Fisher German, who proactively contacted the landowner to discuss the development potential of the greenfield holding for new housing. After being formally appointed, Fisher German compiled a thorough land appraisal, selected a developer and worked closely with them to achieve planning consent for 90 homes. The houses were then sold on the open market, achieving exceptional prices in an area with strong demand for new properties. The competitive sale by tender of the site achieved maximum value for the landowner.

Silsoe

Bedfordshire (Planning) Fisher German secured planning permission for 14 houses, five of them affordable, on the site of a former primary school (see the affordable housing feature on page 10). The scheme included a mix of house types and sizes, and high-quality landscaping, which was developed in close collaboration with the local authority. It was well received at the council’s planning committee, despite being located adjacent to a conservation area. Fisher German also led the disposal of the development site with the benefit of the planning consent.

Stephen Rutledge 07919 693401 stephen.rutledge@fishergerman.co.uk

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Character building Thatched properties are making something of a comeback in the UK and it’s not hard to see why.

F

or many, a thatched cottage is a quintessential part of a proud British countryside tradition, but surprising as it may sound, some modern housebuilders are choosing this ancient style of roof covering for Twenty-first century homes. “We are finding that small in-fill and edge of village developments may be built in this way to help the houses blend into the wider vernacular of the local village environment,” reports Fisher German partner and head of residential Alasdair Dunne.

But the revival in thatch isn’t just about aesthetics. Its main component – typically wheat-based straw or, in eastern counties, water reed – is, of course, an organic material, which makes it a popular choice with homebuyers for whom environmentally friendly living is a prime

consideration. Not only does the roof come from sustainable sources and can be easily recycled at the end of its life, its excellent insulation properties help keep homes warmer in winter and cooler in summer.

“For homebuyers who have never lived in a thatched property, maintenance and cost ramifications can initially seem daunting,” says Alasdair, “but those concerns are almost always assuaged when they consult a skilled thatcher.

Ultimately, those who choose a thatched home do so because they love the look of it and it’s hard to put a value on that.”

The finer details

While thatched houses are pleasingly familiar, thatched outbuildings are possibly less so. For master thatcher Paul Clemons, who trades as "The Cotswold Thatcher",

Those who choose a thatched home do so because they love the look of it and it’s hard to put a value on that.”

however, the recent call to re-thatch the preserved summerhouse of renowned British composer Sir Edward Elgar was all in a day’s work. The Warwickshire-based craftsman observes: “Many people don’t realise that virtually any building can be thatched. The pitch needs to be as steep as possible, ideally with a minimum of a 45-50 degree angle on a house – if it’s less than that the roof will wear more quickly.”

Working in and around the Cotswolds for the past two decades, Paul mainly uses triticale, a laboratory-developed hybrid of semolina wheat and rye, which is favoured by thatchers for its colour, length and durability. The material is delivered in round bales (similar to those seen in many UK fields), each of which contains around 70 bundles. The straw is then cleaned and broken down into smaller armfuls before it is ready to be fixed on a roof.

“Most of the thatches you’ll see in the area I work within are actually comprised of more than one layer – a new thatch

Top tips from a master thatcher "The Cotswold Thatcher" Paul Clemons’ advice for thatched-roof owners • Get in touch with a thatcher prior to buying a thatch for an idea of works needed in the future. It’s always wise to get a reputable expert to look over the roof even if it’s been worked on recently. They’ll be able to estimate when work will be required and what it may cost – allowing owners to budget ahead.

• The main body of a wheat thatch should last 30 years. Within that period the roof should ideally be re-ridged twice.

• Colour doesn’t tell you much as even the most golden of thatches tends to fade to grey within a year. Colour is therefore a poor indicator of age or condition.

• Tell-tale signs that thatch work may be required include dampness on the interior and dips or troughs visible from outside – these indicate water ingress. Pay particular attention to heavy wear areas: around chimneys, valleys and ridges.

• Ridges should have their pattern work in place; loose pattern work is an indicator that the ridge may need attention.

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that is sparred onto a very old wheat base coat with hazel spars,” Paul reveals. “It’s quite something touching material that hasn’t been handled for several hundred years – it’s like looking back in time.”

The tradition of thatching may stretch back centuries, but these days the profession is more of a rarity, with around 1,000 thatchers estimated to be working in the UK. “As someone born and bred in a village, it didn’t seem a strange thing to want to do,” says Paul, “but people frequently ask me how I got into the trade.”

Developing a good rapport with customers is all part of the thatcher’s art, as although there is no such thing as an average thatched property, a full rethatch will normally take around one to two months to complete. “I normally get to know the customer quite well,” adds Paul, “and they are usually fascinated to see their new roof taking shape.”

Thatched Cottage, Longdon Green, Staffordshire Just five miles from Lichfield city centre, this characterful and spacious detached five-bedroom family home stands within beautifully maintained mature gardens.

It abounds with period features and benefits from the addition of an orangery.

Occupier perspective

Actor Gillie Bevan, who has lived at Tithings House, Swalcliffe in Oxfordshire for ten years, says “the wonderful thing about thatch is that it’s a living, breathing thing”. The attractive Grade II-listed property, which includes features believed to date back to 1719, was her first experience of living under a thatched roof. “I still get thrilled looking at it now,” she adds, “it has a definite atmosphere.”

The south side ridge was renewed in 2017. “I was so pleased I was around while it was being done, as it was a joy to watch.

The thatchers skipped up and down the roof like mountain goats!” says Gillie.

Her advice to anyone considering moving to a thatched home, especially for the first time, is to embrace it: “Don’t be frightened of it. In my experience it’s not been different from any other house in terms of roof maintenance.”

Tithings House, Banbury, Oxfordshire Grade II-listed with period features, this village house offers versatile accommodation and potential for an annexe. The kitchen/breakfast room with vaulted ceiling and sitting room with inglenook both feature double doors leading to the walled garden.

Silver Birch Cottage, Chester, Cheshire Alasdair Dunne 07501 720412 alasdair.dunne@fishergerman.co.uk

This stunning property with separate annexe, equestrian facilities and 9.5 acres of land occupies an idyllic semi-rural setting on the fringe of popular Christleton village. Built of oak-framed construction, its courtyard and gardens provide exceptional privacy.

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peoplenews

New senior partner announced

Tim Shuldham

Tim Shuldham has become senior partner, with Struan McDougall replacing Tim in the role of regional managing partner for Yorkshire and North Midlands.

Cycle Day success Fisher German’s annual Cycle Day returned for its third outing in June. The cyclists, who included colleagues, clients and contacts, set off from Holdenby House, led by Njinga Cycling, who helped organise the day.

Those brave enough to take on the long route completed 58 miles with a total elevation of 3,472 ft and passing through Market Harborough. The slightly shorter route of 41 miles was still a tough ride with an elevation of 2,850 ft.

Tim has been in the property industry for 40 years and has taken over the role from Charles Meynell, who stepped down at the end of September.

Tim joined Fisher German when Shuldham Calverley merged with the consultancy in 2010, and a major factor was the firm’s focus on fostering internal talent. He became deputy managing partner in 2013 and served in this role until April this year.

Tim said: “The role of senior partner, like everything in Fisher German, is constantly developing as the business

The day was a success and helped to raise more than £450 for Fisher German’s charity of the year, Contact the Elderly, from entry donations.

Business development director Jeremy Phillips said: “This year’s Cycle Day was the best we’ve held – the weather was fantastic and Holdenby House’s grounds provided the perfect backdrop for a long bike ride. The Cycle Day is a great way for Fisher German colleagues, clients and professional contacts to take a break from their busy jobs, to enjoy a day of exercise and networking in the countryside whilst also raising money for Contact the Elderly.”

Group shot at Holdenby House

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grows and I look forward to playing my part in taking the role forward from where Charles has brought it.”

Struan will take up Tim’s former role; he has been with Fisher German since he graduated in 2011 and has risen rapidly through the business in that time.

His current work focuses primarily on strategic property management and consultancy advice to estates, private individuals and farming businesses in Yorkshire, Derbyshire and Nottinghamshire.

Leicestershire athlete brings home bronze in Special Olympics

Congratulations are in order for Leicestershire athlete Julie Freestone, who returned from the Special Olympics in Abu Dhabi with a bronze medal.

The Special Olympics is for athletes with intellectual disabilities, including autism, Down’s syndrome and other learning disabilities. Unfortunately for many of these athletes, lack of funding has prevented them from competing on the international stage.

Sponsorship from Fisher German’s development team enabled the basketball player to travel to and compete in the games.

Fisher German’s head of development, Ben Marshalsay, said: “We knew Julie was a great athlete, so when we heard she was struggling with her funding to attend the Special Olympics, we were only too happy to pledge our support. We’re all so pleased we were able to get her to Abu Dhabi so she could compete, and the fact she won a bronze medal was the icing on the cake.”

Nominees for Young Surveyor of the Year Four of Fisher German’s young surveyors have been nominated for prestigious industry awards.

Jack Healy, Guy Hemus, Seb Kingsley and Ruth Ofield have been shortlisted in various categories in the RICS Young Surveyor of the Year Awards 2019. The four will head to the awards ceremony in London on 28 November and will hope to continue Fisher German’s success in the awards in previous years.

Jack, an associate director at Fisher German’s Doncaster office, has been nominated in the Land (Rural and Urban) category thanks to his work in making 4km of dangerous gas mains safe again, and helping his clients run successful farming machinery auctions.

Guy, a partner at the firm’s Stafford office, is up for the Valuation award after successfully co-ordinating the valuation of 1,474 properties for a client in just 12 weeks.

Seb, a partner at Fisher German’s Ashby office, has been nominated in the Mentor of the Year category for his training of young surveyors for more than 10 years, with 95 per cent of his trainees passing their APC first time.

And Ruth, a partner in the firm’s Banbury office, has been shortlisted for the Asset and Facilities Management category for her rapid progression

Market Harborough student awarded £1,500 scholarship

Placement student Abigail Hicklin, who has just finished a year working in Fisher German’s Market Harborough office, has been awarded a £1,500 scholarship from Ashby Show.

Abigail is studying at Harper Adams University and submitted an innovation idea to Ashby Show's competition, going on to win the £1,500 prize.

Abigail said: “Ashby is quite a rural show, but there's a massive community around Ashby that the show might not be appealing to. I suggested including an education area at the show or other attractions that might appeal to a wider audience.

“With an ever-increasing population and more demands on space, farmers are going to have to be much more efficient in the future. So I suggested including cutting-edge farming technology at the show to show farmers young and old what the future of farming could look like.

“When I found out I was awarded the scholarship, I felt very proud. It was a real confidence boost for me.”

within Fisher German and her success in co-ordinating the installation of a new sewer pipe within 19 back gardens.

Matthew Trewartha, partner at Fisher German and in charge of the RICS nominations, said: “We’re delighted with what Jack, Guy, Seb and Ruth have achieved during their careers in Fisher German. They are a credit to the firm and to their profession, and we wish them all the best in the awards.”

A Fisher German first Outgoing senior partner Charles Meynell has been elected to chairman of the Executive Committee of the Central Association of Agricultural Valuers (CAAV).

The Executive Committee is delegated by the Council to manage the association and this is the first time a colleague from Fisher German has held the position.

Charles is a Fellow of the CAAV (FAAV) and has previously held the honour of being national president, a position also held previously by Paul Clayson, consultant partner in the Banbury office.

Charles currently sits on the Property Committee and partner John Ikin (Ashby) sits on the Valuation, Compensation and Taxation Committee, in addition to being president of the Midlands Counties branch.

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Partner spotlight James Rigby

Having recently joined forces with Fisher German, Vine Property Management senior partner James Rigby explains why great people and partnerships have been central to his career success.

I

grew up in Newmarket in Suffolk, a famous horseracing town and, being too tall to be a jockey, took myself off to Birmingham Polytechnic to study commercial property. I immediately fell in love with Birmingham in the mid-80s, which probably puts me in a minority of one! It wasn’t the race riots, the dreadful post-war architecture or the industrial decline that attracted me. It was the people. The people of Birmingham are friendly, hardworking and have a real can-do attitude; it doesn’t matter who you are or where you come from but it’s what you can do that counts. I think that’s still true today, which is why Birmingham is such an exciting, vibrant place to live and work and has one of the youngest and most well-educated and diverse workforces in the UK. It turns out it’s also a great place to base a UK-wide commercial property management service.

After graduating, I was offered a graduate training place at Colliers, Bigwood & Bewley, which was acquired about a month later by Chesterton International.

I started my professional life with the licensed premises team selling and valuing pubs, clubs and leisure. The freedom I was allowed to get on and do the job was, looking back, frankly terrifying but thankfully nothing went seriously wrong and it was an incredible learning curve for me.

We worked hard and played harder and had some interesting and hilarious adventures. One misadventure that stands out is showing a prospective buyer around a vacant run-down pub in an area that was pretty rough. Towards the end of the viewing the buyer wanted to see the beer cellar, so we trooped down to the basement and the door swung shut and locked us in. These were the days before mobile phones, so we spent the next four hours in a dank dark basement until we finally managed to dismantle the doors to the pavement barrel drop and escape.

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James & Anthony celebrating 25 years of partnership

The value of partnerships During my second rotation, I was lucky enough to work for Freddie Dyer who encouraged me to apply for a scholarship from FIABCI, the international real estate organisation, to study in the US. I spent the summer studying real estate pricing at the University of Wisconsin, and travelling to 12 US cities meeting investors and developers.

There was much debate among my colleagues and friends as to whether it was my natural grasp of real estate price modelling that won me the scholarship or that during his FIABCI presidential year, Freddie wanted one of his 'boys' to win it!

The time in the States taught me the value that can be added by good property management and my third rotation allowed me to start putting this into

practice at Chesterton. I was approached

by Anthony Collingwood to join him at Paul White Associates. Anthony and I knew each other from a chance meeting at the local RICS JO (the precursor to RICS Matrix).

Paul White is an incredible deal maker and taught me a huge amount. A couple of years later, Paul started growing his investment portfolio and Anthony and I struck out on our own as Collingwood Rigby. Paul remains one of our founding clients.

We set up Vine Property Management as a subsidiary to Collingwood Rigby and through engaging some great people, focusing on high-quality, hands-on, commercial property management and great client service, the business grew to service the whole of the UK with nine regional offices. We enjoy long-term, partnership-style, relationships with so many of our clients. The late John Sims of The iO Group was a mentor to me. In recent years keeping up with Richard Croft and his team at M7 Real Estate, as they built a €9billion pan-European property fund and asset management platform in just 10 years, has been exhilarating.

When we met the team at Fisher German, it was immediately apparent that our values and partnership ethos were completely aligned and we knew that we would be better together, so we merged in June 2019.

Never a dull moment The great thing about property management is that no day is the same and, because of the range of clients, properties and occupiers we work with,

Our clients often buy challenging or distressed assets that have been under-managed or neglected but overseeing the transition from chaos to order is immensely satisfying.”

Building the facility at the Freeman Hospital, Newcastle

Scott House completed

I’m fortunate to be a volunteer trustee of a fantastic small charity called the Sick Children’s Trust, which gives over 3,500 families with a seriously ill child in hospital a warm and comfortable place to stay when they need it most.” there is something new to be learned every week regardless of the length or depth of your experience. If you enjoy working hard, as part of a team, are good at interacting with people at all levels and like solving challenges, property management is a terrific career. Be warned though, you’ll need to be a self-starter and it’s not for the faint hearted; it’s tough and will make you laugh – and occasionally cry (with frustration) – but it’s constantly engaging.

Our clients often buy challenging or distressed assets that have been under-

managed or neglected but overseeing the transition from chaos to order is immensely satisfying.

We manage anything commercial from a single property for an HNWI to a half billion pound portfolio for one of the world’s largest investors. Our client base is not only in the UK, but includes investors from Hong Kong, South Africa, Australia and the US. I’m fortunate to be a volunteer trustee of a fantastic small charity called the Sick Children’s Trust, which gives over 3,500 families with a seriously ill child in

Scott House opening day

hospital a warm and comfortable place to stay when they need it most. I advise the board and executive on projects and a personal highlight was the new-build development, Scott House – a 20 bedroom facility at the Freeman Hospital in Newcastle, which was opened by local heroes Alan Shearer and Ant and Dec. Although the real heroes are the incredible heart surgery team and the amazing patients and families.

Outside of the office, my family keeps me grounded, and watching Worcester Warriors struggle in the Premiership winds me up and yoga winds me down.

I enjoy the fresh air and perspective of being on a hill or a mountain somewhere whether biking, walking or, best of all, skiing.

For more information, contact James on 07973 157079 or visit www.vinepropertymanagement.com

Another great partnership; with my lovely wife Jane enjoying Val-d’Isere

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Sector insight Preparing for change

Opportunities through merger

Never far from focus

David Merton, head of rural

Duncan Bedhall, head of commercial

Darren Edwards, head of sustainable energy

In recent years, a number of changes have been made to the taxation of UK property. Inheritance tax (IHT), in particular, continues to be under review. The Office of Tax Simplification (OTS) has been considering making IHT less complex and published its second report in July; recommending some significant changes, which may or may not be implemented.

The recent Labour Party-commissioned report, ’Land for the Many’, also comments on the tax.

It recommends IHT should be abolished and replaced with a lifetime gifts tax levied on the recipient (in respect of gifts received above a lifetime allowance of £125,000). Transfers of business and agricultural property would be taxfree until the asset is sold or the business ceases to be a trading entity and becomes an investment entity. The stated aim being to allow families to maintain the integrity of agricultural land or business assets, while also preventing recipients from gaining large tax-free windfalls.

It goes on to suggest that the taxation of farmland and forestry should be reviewed "with a view to preventing the use of farmland as a tax shelter for land speculators, while protecting genuine small farms".

With the Brexit deadline fast approaching, it will be important for UK property owners to monitor what, if any, progress is made in respect of the proposals and to consider their implications.

There is no way of knowing if any of the recommendations will be implemented, so being prepared for change by understanding the current position and reviewing where changes might be suitable is a sensible way forward.

We have been very busy since our last commercial update in the spring. After several months of discussion and negotiation, we successfully acquired the business of Vine Property Management LLP. This has had a big impact on our commercial sector, adding nearly 100 more people to the team, together with another 10 widely spread offices.

Vine, a specialist manager of multi-let commercial assets, ensures the smooth running of more than 500 estates across the UK. Its clients range from international funds to regional property companies. The skills and capability this merger will bring to our clients is very significant.

We are now able to provide commercial management services wherever the asset lies and to provide the revenue and client accounting services expected by private and public institutions.

The team at Halesowen office has moved to Vine’s head office in Harborne, Birmingham, a short distance away. While still being able to provide an immediate service to the Black Country and North Worcestershire, the move will improve the range of support we can offer clients in the whole conurbation.

On more day-to-day matters, little has changed in recent months in the market for commercial property. There is no sign of distress in industrial/ warehousing occupiers. In fact, clients report that rental and service charge arrears are at historically low levels. Void levels are similarly low too. Office demand, while not quite as buoyant, is still reasonable, and investments are selling well. Overall, high street retail continues to struggle. And Brexit still looms.

Concerns that the phone would stop ringing following the closure of the Feed-in Tariff scheme in March have proven unfounded. In fact, we have seen an upturn in enquiries over the past six months. Almost daily media coverage on global issues arising from climate change means sustainable energy is never far from focus.

Utility scale solar developers continue to be active, identifying pockets of grid capacity and approaching landowners UK-wide. Such projects are more marginal without a subsidy but, interestingly, we are agreeing rental terms within 10-15% of when the market was at its peak.

Generating electricity for export remains viable in some cases, but utilising it for a specific purpose is where we can achieve the best returns. New projects are being designed around the integration of batteries, while we remain involved in a number of grid balancing and Fast Frequency Response projects.

We've been working hard to establish our position in the emerging Electric Vehicle (EV) market. The rise of EV sales presents opportunities, as their success will rely on property and infrastructure development. EV forecourts on key transport routes are coming, as are innovative methods of distributing green electricity to power EVs. Looking further ahead, there is increasing pressure on the government to allow more onshore wind projects. The Committee on Climate Change estimates 35GW could be deployed by 2035 if the current block is lifted.

With a target of net zero by 2050, there is a strong chance of a policy change, paving the way for new onshore wind developments.

David Merton

Duncan Bedhall

Darren Edwards

01530 410806

07831 824663

07918 677571

david.merton@fishergerman.co.uk

duncan.bedhall@fishergerman.co.uk

darren.edwards@fishergerman.co.uk

36 fisher german magazine

Fisher German’s sector heads look forward to what lies ahead for the firm and its clients.

The impact of going small Ben Marshalsay, head of development Greenfield land values are holding well in the vast majority of areas (outside London and the Southeast) where we have been involved in transactions. The interest in residential development land is still coming from a number of directions. The SMEs' builders are gaining a relatively strong foothold in the sub-100 dwelling market. There is plenty of evidence to show smaller sites are more attractive to a wider base of prospective purchasers.

There is a desire to de-risk sites from purchasers too. In the interest of showing a strong profit margin as well as a good return on capital, developers are more readily willing to acquire serviced parcels of land, where the infrastructure has already been installed. There is also increased activity and competitiveness from registered providers for market-led schemes.

With the popularity of local authorities imposing mix policies on all new developments, developers are inevitably being pushed to deliver a higher proportion of smaller dwellings. This can negatively impact land values and may result in conditional contracts to allow an opportunity to re-plan. The impending change in help-to-buy is also affecting developers' view on housing mix.

Planning is still a hindrance in quick delivery of much-needed new housing schemes. A lack of capacity and personnel appears to be the main reason for this along with ever-present red tape.

Nationally, the delivery of new homes has risen, but is still short of central government targets.

Finally, a rise in and push for modern methods of construction – especially on the housing partnership front – could be a step change and is being watched closely by many in the sector.

Treading water

A stable strategy

Alasdair Dunne, head of residential

Giles Lister, head of utilities & infrastructure

Will we, won’t we? The residential property market dislikes uncertainty. Uncertainty breeds caution and it would be fair to say that the property market is cautious. Fewer people are offering their property for sale, but those that have are finding buyers and, accordingly, prices are stable. Our estate agency teams are working incredibly hard to deliver good sales in sensible time frames and all are doing very well.

Uncomfortable market conditions persist in London, and UK statistics are unfairly influenced by the capital. However, while our teams operating nearer London are agreeing sales in normal time frames, the conveyance process is lengthened, underlining market caution.

While some may feel cautious about making a move, and survey data shows that housing transactions were at a 10-year low for the first six months of 2019, the desire to move persists.

Anecdotally, there is pent-up demand to be released when people are more comfortable with the Brexit situation and therefore more confident with their medium-term financial security.

The demand for new homes continues to be robust. Our new homes team continues to do very well, and we have invested in two new team members so that we can continue to offer the best possible service.

Residential investor activity continues to be subdued, and regulatory and taxation burdens have dampened the desire to enter or remain in residential lettings. Despite this, the lettings market is performing well, perhaps as people either step out of the property market or remain in rented property and well… wait and see.

The UK’s infrastructure has lagged behind population growth, demand, advances in technology and the impact of climate change.

Infrastructure networks are critical in order to connect people, businesses and society, influencing how we travel, communicate, produce and consume energy and maintain water supplies and flood defence systems. There is a drive towards improving the delivery of projects through a holistic, evidence-based approach to planning and provision.

The infrastructure sector accounts for a significant element of the UK construction output, economic value and employment. The strategy of a stable long-term plan to 2050 will regenerate communities, focusing on the effects of economic growth and transformative impacts on local economies. The current pipeline of projects is estimated at £600bn.

Key to successful completion of the required infrastructure will be the sector’s approach to procurement and risk, with associated expectations on margin, which in turn impacts on investment in innovation and skills development. Fisher German seeks to expand its use of innovative approaches for land rights acquisition with solutions to support major infrastructure projects. This is coupled with our continued investment in digital technologies.

Building client and supply chain relationships and alliances through collaboration and enterprise helps us to deliver efficient and costeffective projects and programmes. With the anticipated changes for infrastructure across the UK we are well placed to assist clients in attaining their commitments.

Ben Marshalsay

Alasdair Dunne

Giles Lister

01530 567465

07501 720412

01227 477870

ben.marshalsay@fishergerman.co.uk

alasdair.dunne@fishergerman.co.uk

giles.lister@fishergerman.co.uk

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Office directory 1 Ashby de la Zouch The Estates Office, Norman Court, LE65 2UZ 01530 412821

2 Aycliffe Unit 4, Block 3, Bede HouseDurham Way Newton Aycliffe, DL5 6DX

8 Cwmbran Suite 5, Raglan House William Brown Close Llantarnam Business ParkCwmbran, NP44 3AB

9 Doncaster Unit 2 Carolina Court Lakeside Business Park Doncaster, DN4 5RA 01302 243930

15 Knutsford Charles House 1-2 Royal Court Tatton Street Knutsford, WA16 6EN 01565 757970

4 Bedford Unit 8 Stephenson Court Fraser Road Priory Business Park Bedford, MK44 3WJ 01234 823661

5 Birmingham 326 High Street Harborne Birmingham, B17 9PU 0121 561 7888

6 Canterbury Court Lodge Farm Offices Godmersham Park Canterbury, CT4 7DT 01227 477877

7 Chester 4 Vicars Lane Chester, CH1 1QU 01244 409660

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10 Glasgow 3 Somerset Place Glasgow, G3 7JT

11 Head office Ivanhoe Office Park Ivanhoe Park Way Ashby de la Zouch 01530 412821

12 Hereford The Middle Granary Brockhampton Hereford, HR1 4SE 01432 802545

13 High Wycombe Office 12, Devonshire House1 Cliveden Office Village Lancaster Road High Wycombe, HP12 3YZ

14 Hungerford Firn House 61 Church Street Hungerford, RG17 0JH 01488 662750

Office 16C, Manvers House Pioneer Close Rotherham, S63 7JZ

22 Stafford 16 London Henry Wood House 2 Riding House St London, W1W 7FA

3 Banbury 50 South Bar Banbury, OX16 9AB 01295 271555

21 Rotherham

17 Market Harborough 40 High Street Market Harborough, LE16 7NX 01858 410200

18 Manchester Second Floor, Atrium House 574 Manchester Road Blackford BridgeBury, BL9 9SW

19 Newark 12 Halifax Court Fernwood Business Park Cross Lane Newark, NG24 3JP 01636 642500

20 Newcastle Suite 4E, Spaceworks Benton Park Road Newcastle upon Tyne, NE7 7LX

2 Rutherford Court Staffordshire Technology Park Stafford, ST18 0GP 01785 220044

23 Southampton Unit 14, Basepoint Business Centre Andersons Road Southampton, SO14 5FE

24 Thame 17 High Street Thame, OX9 2BZ 01844 212004

25 Worcester Global House Hindlip Lane Worcester, WR3 8SB 01905 453275

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Sectors

Services

Commercial

Agency

Development

Agribusiness

Residential

Building Consultancy

Rural

Compensation

Sustainable Energy

Expert Witness & Dispute Resolution

Utilities & Infrastructure

Infrastructure Services Landlord & Tenant Property Management Planning

20

Restructuring Telecoms Valuations 2

18

21

9

15 7

19

22

1 11 17

5 25 12

4

3 24

8 14

13

16 6

23

For more information visit:

www.fishergerman.co.uk

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www.fishergerman.co.uk