Move Commercial 33

LIVERPOOL CITY REGION CHESHIRE MANCHESTER

Sept-Oct 2013

FREE

move CommerCial The north-west’s guide to property and business

Issue 33

Exchange Station transformation Milestone completion of concourse

THE FUTURE OF THE HIGH STREET Can retailers take back control?

THE RATE DEBATE Are rates worse than rents for businesses? more than just office space…

Issue thirty-three Move Commercial

Contents News 06 Downing announces new flexi-office plans 07 Exchange Station concourse complete 08 Bruntwood plans Salford office launch 09 Work begins on 1 Hardman Street 10 ReferStar chooses Liverpool office 12 Commercial landlords advised to be energy efficient 13 Cains reveals brewery plans 14 Corn Exchange set for revamp 15 Awards for employers and apprentices 21 £100m milestone for North West Fund

22

Welcome to Move Commercial With major developments underway across the North West there is a cautious optimism in the industry. Here at Move Commercial we are optimistic too, and to celebrate that fact the new issue comes with several new features including specialist finance and training news pages, columns from four industry experts and a look at the future of four key areas of the North West economy.

There’s also the usual news and opinion plus our lunch debate, which takes a look at the tricky subject of high street retail, and an interview with Sarah Williams of Ashtenne, the firm behind the stunning Exchange Station development.

42

28 LIVERPOOL CITY REGION CHESHIRE MANCHESTER

Sept-Oct 2013

FREE

MOVE COMMERCIAL The north-west’s guide to property and business

48

Issue 33

Exchange Station transformation Milestone completion of concourse

move publishing ltd Advertising Director Fiona Barnet. Tel: 0151 709 3871 Advertising Manager Catherine McCarthy. Tel: 0151 709 3871 Editor Christine Toner. Tel: 0151 709 3871 Editorial Team Natasha Young, Suzanne McGuckin and Stephen Hurrell. Tel: 0151 709 3871 post@movepublishing.co.uk

Designer Rob Whyte. Email: rob@movepublishing.co.uk Work experience - Katy Gregory Published by Move Publishing Ltd Directors David O’Brien, Kim O’Brien, Fiona Barnet Printed by Precision Colour Printers Ltd Distribution Liaison Manager Barbara Troughton Tel: 0151 733 5492 Mobile: 077148 14662 Credits: Peter Kelly – Key Events, Lunch Debate.

Andy Harrison – Rising Star.

Tom Murphy.

M

Copyright Move Publishing Limited. All rights reserved. No part of this publication may be reproduced copied or transmitted in any form or by any means or stored in any information storage or retrieval system without the publishers written permission.

Although every effort is made to ensure the accuracy and reliability of material published, Move Publishing can accept no responsibility for the veracity of the claims made by advertisers.

THE FUTURE OF THE HIGH STREET Can retailers take back control?

THE RATE DEBATE Are rates worse than rents for businesses? more than just office space…

Features 18 Bitesize Thinking Food for thought 20 Appointments Who’s moving where?

22 Offices on the Edge Where does Liverpool stand in the UK office market?

26 Key Event Accelerate 2013 28 Rising Star Sarah Williams of Ashtenne on the Exchange Station development 30 Key Event North Liverpool Breakfast Forum 32 Map the Region News at a glance from across the region 34 Entrepreneur Poco Coffee founder Richard Sutton talks to Move Commercial 38 What Next For Four experts predict the future 40 Key Event RICS Summer Social 42 Lunch debate The future of the high street 48 Mover & Shaker Green Properties’ Mike Tapp on the future of the India Buildings 51 Key Event Acorn Professional Services Women’s Business Networking Group 52 Founding Business Nicky Hai tells us about Arrowcroft’s Albert Dock success 54 Columnists Analysis of the office market in the region 59 Business Diary 60 The Rate Debate Are rates or rents hurting local business?

63 Ask the Panel Is the government cutting red tape?

News Latest

Langtree invests £1m in industrial estate

Downing announces new flexi-office plans No.1 Old Hall Street

Speke Hall Industrial Estate

A £1M REFURBISHMENT is getting underway at Speke Hall Industrial Estate and Sky Park International.

Langtree acquired the properties in December 2012, and is continuing its South Liverpool investment with the project, which includes enhancements to the security, landscaping and construction of the buildings. The work is part of an overall strategy to provide high-quality business space in the city and surrounding areas.

The properties stretch a total of 370,000 sq ft across 87 units, and comprise the largest single owned industrial estate in Liverpool.

Richard Ainscough of Langtree says: “We take great pride in the quality and specification of the space that we have to offer.

This investment ensures that the estates in Speke meet our high standards and provide the businesses of Liverpool the premises in which to flourish.”

Contract Services (R&R) Ltd is the appointed contractor for the refurbishment, which is due for completion in February 2014.

Langtree operates a diverse portfolio of directly owned and joint venture property totaling more than 4m sq ft, comprising office parks, industrial estates and trade parks across the North of England and the Midlands.

6

MOVE COMMERCIAL

DOWNING HAS announced plans for 20 new flexible offices in two iconic buildings on Liverpool’s waterfront in an attempt to cater for smaller businesses looking for short-term leases in the city centre.

In total, 15 new ‘flexi-offices’ will be refurbished at No.1 Old Hall Street and a further five suites will be added to the ground floor of the Port of Liverpool Building under the name North Portal. The offices will be made available from £145pcm in four to six weeks once the refurbishment is

complete.

The plan is the second stage in Downing’s plans to install flexible office space in the city. The first stage saw the commercial landlord let ten offices over the past three months.

The offices are available for as little as one month and the packages include service charges, electricity, building insurance and rates as a single monthly cost.

Robin Ellis, senior agency surveyor at Downing, says: “This is a new way of renting an office, which provides

companies with a bespoke solution, which is tailored to their individual needs; allowing them to establish themselves in expertly managed, city centre buildings, without the costs and level of commitment sometimes associated with high-quality commercial lets.”

Current tenants in Downing’s flexible office space include health care product supplier Well Being UK and nautical equipment supplier John Lilley & Gillie, which has taken nine suites in the Port of Liverpool Building.

ProjeCt toMorrow wiLL be ‘worLd first’ THE SECRETIVE Project Tomorrow scheme, which has seen 20 sites comprising 180,000 sq ft of office space bought by an unnamed US tech group, will be a world first according to one of the groups involved in the project.

Atul Bansal, director of the interior design firm Sheila Bird Group, which has been working on the project for two years, says the scheme will see ‘revolutionary’ technology come to Manchester after the city was chosen as the host ahead of several other destinations in Europe.

He says: "This is an unbelievably exciting prospect for Manchester, as the first city to have access to this revolutionary technology and the

potential it has to transform local businesses and the way they work, individually and together.

"There is nothing like this anywhere else in the world. The walls will be 'alive' and 'Tomorrow' will drive a new approach to work interactions and conversations."

Earlier in the year buildings across Manchester, including The Hive in the Northern Quarter, 1 New York Place, Chancery Place and sites at MediaCityUK and Manchester Science Park, were bought by a mystery investor on a ten-year lease. The plan is to introduce as-yet-unnamed technology to the sites that will represent a new way of sharing data and knowledge across physical

Atul Bansal

locations.

Alongside Sheila Bird Group, the project’s UK client design director, property consultancy Edwards & Co is the appointed advisor for the Manchester project.

Latest News

Exchange Station reaches ‘huge milestone’

Exchange Station

LiVerPooL’s eXCHANGe station moved a step closer to opening its doors to new tenants as work on the 5,500 sq ft concourse was completed at the tithebarn street site. the communal area at the centre of the office development will be used

as an informal meeting space and comes with new seating, buildingwide wi-fi access and a ‘bean at exchange station’ coffee shop, which will act as a food and drink venue and a caterer for the businesses who move into the development.

Completion of the concourse represents the £5m first stage in developer space Northwest’s plans to revamp the former Victorian station into an office, meeting and conference venue. the final plans include 190,000 sq ft of office space

and 13,100q ft of retail space on the ground floor. wayne Locke, director at space Northwest, says: “the completion of the concourse marks a huge milestone in the redevelopment of exchange station as it represents the beating heart of the building and it’s a fantastic communal area for people to get together and talk business, which is very rare in office developments in the city centre. Not only has it had an extremely positive impact on our tenants to date, but guests to exchange station are made to feel equally as welcome so it is anticipated that the concourse will become a bustling, new business destination in the Central business district.”

Manchester reveals Piccadilly Hs2 plans MANCHester CoUNCiL has revealed plans for a major ‘gateway’ development at Piccadilly station but will only put it in motion if Hs2 is approved. the plan covers 14 million sq ft of mixed-use space and incorporates a new entrance plaza for the highspeed rail link, 1,300 new homes and 60,000 square metres of office space. the development would also include a new tram interchange and coach station under the proposals as well as a ‘boulevard’ comprising a public square near the Metrolink, a

civic arrival space on London road and a new park at the east end of the station. sir richard Leese, leader of Manchester City Council, says: “the proposals set out in the Hs2 Piccadilly strategic regeneration framework represent a once in a century opportunity. improvements to Manchester Piccadilly associated with Hs2 have huge potential to stimulate further investment in the area and it’s important that we do all we can to establish early momentum.”

The planned Piccadilly development

the controversial high speed rail system would include stations at Manchester Airport and Piccadilly and would cut the time it takes to travel between Manchester and London to just 68 minutes, an hour less than the time it takes on the existing system. According to a

report by professional services provider KPMG, Hs2 could deliver up to £15bn on the local economy when it is completed in 2032 and says the biggest winners from the Hs2 scheme would not be London but areas with proposed stations outside the capital.

MOVE COMMERCIAL

7

News Developments

developer picked for £10m sports village

Former Overseas House, Manchester

redevelopment underway at former overseas House tHe forMer overseas House in the heart of Manchester’s commercial district is soon to be renamed and relaunched, as it undergoes a redevelopment project by bruntwood. the office space and retail premises provider is currently working on the site, which is located at the junction of deansgate and Quay street in the city, and says the New York-inspired scheme embodies the firm’s “latest thinking in the evolution of workplace design”.

Colin sinclair, the director of property marketing at

bruntwood, says: “incorporating high speed internet access and the very latest urban design features such as polished concrete and exposed services, the refurbished building will offer inspiring working environments, not just for ‘trendy’ creative types, but for professional firms and corporates looking for more ‘urban contemporary’ flexible workspaces but which still offer our usual high standards of customer (tenant) service.” the development is the latest project for family-run company bruntwood, which has 110 properties across Manchester, Liverpool, Leeds and birmingham.

Warrington firm designs Cabinet Works revamp WARRINGTON FIRM DV8 Designs has been chosen to create a plan for the Garven Place and Cabinet Works sites in Warrington as part of a scheme to boost Gross Added Value (GVA) growth in the region by up to £30bn.

The plans will focus on bringing small businesses back into the area by creating a public square, homes, shops and a hotel on the historic site. The plans will also seek to restore the distinctive Cabinet Works tower, whose

8

MOVE COMMERCIAL

future was once in doubt until plans to demolish it to create space for a car park were rejected in 2011.

Instead Warrington Borough Council wants to preserve and make the tower a feature for the area and it hopes the masterplan created by DV8 Designs will be the beginning of a consultation on development of the site.

Councillor Terry O’Neill, leader of Warrington Borough Council, says: "This is the first step in the council unlocking

the tremendous potential that this area offers. It is in the heart of our historic central heritage area and this study will provide the basis of a masterplan for the future. I’m delighted to have appointed local company DV8 Designs for this study."

The Garven Place and Cabinet Works development is part of a wider scheme named ‘Warrington Means Business’ aimed at creating economic growth in the Warrington area.

Cllr Sue Murphy

CoNstrUCtioN firm isG has been chosen to develop a new £10m sports facility in east Manchester. the proposed belle Vue sports Village will aim to provide a centre of sport and leisure excellence for the area, as well as large events attracting visitors to the city, and is a major step closer to being built after the company was picked through a competition tender via the North west Construction Hub (NwCH).

Manchester City Council is currently working with the belle Vue Aces speedway team and england basketball to prepare a planning application for the scheme. isG will work alongside AfL Architects on the new facility, which is poised to become the national home of speedway and basketball as it features a new National speedway stadium and National speedway Academy, a 3G all-weather pitch, a new National basketball Centre, a new rugby pitch and high quality improvements to the existing fitness and leisure facilities.

Councillor sue Murphy, deputy leader of Manchester City Council, says: “every milestone towards belle Vue sports Village is a step closer to realising the potential of this area. of course there is still some way to go – planning and beyond – but we welcome the experience of isG to deliver the development in the future.” isG’s construction managing director Alan McCarthy-wyper, adds: “we are delighted to be working closely with all key stakeholders to realise the vision of this important regional development.”

Developments News

Work begins on 1 Hardman Street

1 Hardman Street

BUILDING WORK has begun on the first new office space at the Spinningfields site since 2009 after planning permission was granted for a £10m development at 1 Hardman Street.

The five-storey, 17,000 sq ft building is the latest part of Allied London’s plans for the former brownfield site and is the first new office building to be built since 3 Hardman Street was completed in 2009.

According to Allied London, it was focusing on “awaiting the return of more consistent economic conditions” before restarting its commercial office developments at the 4.5m sq ft Spinningfields region and it believes the time is now right to push forward with its plans.

Michael Ingall, chief executive and

owner of Allied London, says: “Spinningfields has continued to evolve throughout the recession to become one of the Manchester's key locations and, as the economy begins to show real signs of recovery, it is no coincidence that we're the first in the city to begin the development of new office space."

Leasing agent OBI Property has already pre-let 1 Hardman Street to media agency MediaCom, which will use all of the commercial space at the development once it is complete.

Once complete 1 Hardman Street will be the first of several new buildings planned for Spinningfields, including a proposed 40-floor skyscraper at 1 Hardman Square comprising 600,000 sq ft of office space and a 200-room luxury hotel.

NO 12 TITHEBARN REDEVELOPMENT PLANNED A PLANNiNG application has been submitted to redevelop No 12 tithebarn street in Liverpool’s business district in a £6m project. if the application is successful, initial work will include demolition of the rooftop structure and stripping the existing offices to a ‘soft shell’ to prepare for a major regeneration of the site. A previous application to renovate the building was accepted in March and developer Capital & Centric has now appointed sixtwo Architects to submit a new application to develop the design.

Capital & Centric plans to refurbish the derelict building and turn it in to 40,000 sq ft of office space with 50 parking spaces as part of a £6m development. it is awaiting approval on funding from the

european regional development fund (erdf) for the project. tim Heatley, director at Capital & Centric, which has also put in a planning application for the bunker building for the Littlewoods site on edge Lane, says: “i’m really excited to be taking on these challenging developments and delivering something that adds to Liverpool’s architectural heritage and economy. “these two projects represent nearly 20% of a total portfolio of the 350,000 sq ft we have under development at present in Liverpool which we’re committed to developing speculatively.” the development is one of several taking place in the area including development of No 1 tithebarn street and exchange station, both of which are underway.

No 12 Tithebarn Street

Cbre CeLebrAtes LAUNCH of New offiCe Cbre CeLebrAted the relocation of its Liverpool office to No 4 st Paul’s square with a special launch event. the commercial property consultancy firm moved its Liverpool base from Castle street in the summer to take up the sixth floor in the business district office complex.

Cbre agreed a 10-year lease for the 2,572 sq ft space within the eight - storey Grade A office building, which is Liverpool’s first speculatively developed breeAM ‘eXCeLLeNt’ site.

Prior to the move, Cbre director Mark worthington said: “No 4 st

Paul’s square is an impressive building and, after considering the various alternatives, we regard it as being the building that best reflects the contemporary and forward-thinking nature of our company.”

Guests at the launch included Cbre clients and members of the company from outside of the city, including the firm’s national managing director Adrian Mcstay, who reaffirmed the importance of the Liverpool office during his speech. other tenants at No 4 st Paul’s square, which was completed last year by english Cities fund, include santander Corporate.

John Ogden and Adrian McStay (both of CBRE) with Lynn Haime, Peel Media MOVE COMMERCIAL

9

News Sales & Lettings

social media recruitment firm chooses Liverpool base A diGitAL MediA recruitment company has chosen Liverpool as its european and Middle eastern base, creating two jobs and promising further expansion. the new office on water street will be led by sales director of eMeA, Paolo bafico, who was involved in the selection of Liverpool as a destination over other locations in england with the help of economic development company Liverpool Vision.

He says: “i was persuaded to look at Liverpool by the enthusiasm of Liverpool Vision. the bottom line is that Liverpool offered everything a growing company needs to be successful - highly qualified

candidates, a growing economy, easy access to the rest of the eU.” referstar offers online software that automates employee referrals and talent search by using popular social media networks such as Linkedin, twitter and facebook. the software is being billed as an alternative to traditional recruitment methods by Morgan Pierce, Ceo, who says: “referstar is disruptive to traditional recruitment methods. studies have shown that organisations can save as much as 90 per cent using social media versus traditional recruiting methods, and referrals are 50 times more likely to be hired than through an internet job board.”

Islington Gateway property enters the market A COMMERCIAL property at the heart of a multi-million pound regeneration scheme in the Islington Gateway area has been made available to investors.

The property, situated close to Norton Street, is part of the 1.5m sq ft of land earmarked for student accommodation schemes, homes for doctors and nurses, hotels and offices but is available now for an investor, says Hitchcock Wright & Partners. The Islington Gateway scheme is a 15-year plan by Downing to regenerate the area and will be built alongside a £400m rebuild of the Royal Hospital.

The proposal to regenerate the area was originally put forward in 2007 but was held back by the economic uncertainty at the time. However, confidence is high that it will succeed in more stable market conditions.

Offering over 8,000 sq ft of space over two floors, the property is currently used as a crèche with recreational areas and administrative offers but Hitchcock Wright and Partners says it can be converted into retail, wholesale warehouse or office units.

Brian Ricketts of Hitchcock Wright & Partners says: “The property represents an excellent ‘ready made’ opportunity that is already fitted out for a nursery/crèche operator/use which are few and far between in town. In addition the building offers a whole raft of other redevelopment uses.”

For further information or to arrange a viewing, please contact Brian Ricketts at Hitchcock Wright & Partners, on 0151 227 3400.

10 MOVE COMMERCIAL

Paulo Bafico and Tony O’Neill

sutton Kersh targets £40m auction sales sUttoN KersH has sold £29m worth of property at auction since the start of the year and hopes to reach the £40m mark before the year is out.

Commercial properties have gone under the hammer at five auctions in 2013, alongside residential properties, and there are plans to hold two further auctions later in the year to bring sales closer to £40m. in total, 446 lots have been sold in the Liverpool auctions this year.

Cathy Holt, auction manageress at sutton Kersh Auctions, says: “every auction this year has been extremely well attended as many investors continue to show that property remains the investment vehicle of choice. we have seen strong demand for all types of stock, from vacant residential, through to tenanted commercial, with competitive bidding meaning many lots have exceeded their advertised guide prices.” tenanted commercial properties are often seen as a good investment because the tenants are already renting the space, thereby negating the need to find new tenants once the property is purchased. sutton Kersh believes the number of people coming to auction demonstrates

Cathy Holt

Liverpool’s popularity for investors, and Cathy adds: “there is also an increase in the number of new people coming to the auction, as well as buyers from out of the area, who clearly see Liverpool as an attractive place to invest.” the next sutton Kersh auction takes place at the Marriott Hotel in Queen square, Liverpool on 17 october from 12 noon. the closing date for sales entries is 20 september. for more information on the sutton Kersh auctions visit www.suttonkersh.co.uk.

News Commercial

Eco expert calls for more energy efficiency in commercial properties CoMMerCiAL LANdLords should be more environmentally responsible when renovating and refurbishing properties, according to a Liverpool energy efficiency expert.

Having advised commercial landlords as well as care homes and schools on green issues over the years Patrick richardson, chief executive and co-founder of renewable technologies provider Concept LHP, has voiced concerns that landlords may be overlooking greener building solutions.

Patrick, who has been recognised for his expertise having been announced as the eco Project Award judge at Merseyside’s educate Awards 2013, says: “Many commercial landlords decide to renovate their properties and completely overlook

renewable technologies such as solar PV and biomass boilers. these green technologies have a number of huge benefits to landlords as they help reduce energy costs, carbon emissions and can also make your property a lot more attractive to potential tenants.”

Patrick, whose company provides lighting, heating and power solutions, says commercial landlords should also look to take advantage of government-led initiatives such as the Green deal and the renewable Heat incentive to improve their properties’ green credentials. for more information contact 0151 207 7808.

New look and location for jb Leitch LIVERPOOL-BASED property law specialist JB Leitch is preparing to move in to 10 Duke Street two months after purchasing the property for £2.1 million.

JB Leitch will occupy four of the nine suites in the 30,000 sq ft building, which is expected to generate over £233,000 in income each year for the firm. Some departments within the company moved in to the buildings in July but the remaining departments will move in by the end of 2013, once the offices have been refurbished, says the firm. It will join several tenants in the building including Henshaws Society for the Blind, AEDAS Architects and Liverpool Housing Trust.

To celebrate the purchase of the property and the move in to the building, JB Leitch has also developed a new responsive website with continually scrolling navigation. The website, described as ‘fresh and minimal’ by the company, is part of a wider refresh for the brand that also includes new stationary and letter 12 MOVE COMMERCIAL

heads, business cards, brochures and invoice paper.

Michelle Leitch, practice manager at J B Leitch, says: ‘We wanted to push the boundaries with our new brand and the website to reflect our vision and ambitions. That and the purchase of new premises signals a new chapter for J B Leitch LLP.” For more information on JB Leitch visit the new website at www.jbleitch.co.uk.

10 Duke Street

Patrick Richardson

POOR QUALITY OFFICES ‘FACE CONVERSION’ reLAXAtioN of planning rules in prime locations will see more city centre offices converted in to residential properties to meet demand, according to a Liverpoolbased chartered surveyor. the introduction of the Private rented sector initiative, a government plan to encourage investment in the housing market, along with high demand and low supply for new residential properties means older and poorer quality second-hand stock is being converted into offices. while the housing market recovers across the UK, demand for central locations means developers are converting unpopular office blocks into homes. will rees, of rees straw Chartered surveyors, says: “Prime city centre locations are also

coming back for residential properties thanks to the Private rented sector initiative, and boosted further by the relaxation in change of use planning rules for office to residential conversions.”

However, the effect on the office supply in cities such as Liverpool and Manchester will be minimal, according to will, because the offices being chosen are the ones with little demand.

He says: “the concept is in its infancy, particularly in the North west. However, i don’t expect to see a detrimental effect on the office market, as the dynamics of demand and the value gap between grade A offices and outdated stock mean that only a small percentage of buildings will be viable conversion opportunities.”

Leisure News

New glimpse of Cains brewery Village proposal Artists’ impression of the development

NEW HOTEL FOR EMPLOYMENT EXCHANGE SITE A NEW four-star city centre hotel could open in Manchester as early as 2015 after Dominvs Living purchased a site near to Piccadilly Station.

The developer plans to build a 340 bedroom hotel subject to a successful planning application for the project.

The plan involves the demolition of the existing Employment Exchange building to make way for the new hotel on the Aytoun Road site.

The proposal to build a new hotel is part of a plan to build branded hotels in several UK cities but Manchester has taken priority because of the site’s proximity to Manchester Piccadilly Station. Dominvs plans to incorporate a restaurant and conference rooms into the design of the hotel.

According to Dominvs Living: “The hotel will occupy a prime position as part of the highly successful and recently completed 250,000 sq ft mixed use Piccadilly Regeneration Project which has now become a vibrant gateway to the city centre, highly regarded as the UK’s second city, both in commercial terms and tourism

attractions.”

Piccadilly Station could also benefit from the proposed HS2 high-speed rail network, which will link the station to Birmingham and London if the plans are given the go-ahead.

A previous plan to build an £80m, 44-storey tower at the former Employment Exchange site collapsed after property developer Albany Crown entered administration in 2010.

Dominvs is expected to submit a planning explanation before the end of 2013.

Proposed Dominvs Living hotel

dAYs After submitting a planning application for an ambitious £50m scheme to transform the grade iilisted Cains brewery site in Liverpool into a hotel, bar, market and cinema complex, the brewery’s owners have revealed new sketches of the proposed plans.

A new image shows an outdoor market in the grounds of the brewery, a ‘sky bar’ offering waterfront views and a glass-fronted arthouse cinema on an adjacent plot of land. other details include indoor retail space and a 94-room boutique hotel on the site of the main brewery, while a smaller, more manageable craft brewery will be used to brew Cains products. the plans also include restoring the historic brewery tap pub.

the plan comes months after owner Cains shut down production at the brewery and slid in to administration.

However, sudarghara dusanj, managing director of Cains, says: “we want to create a major new tourism and leisure asset for the city which would secure the future of the Cains beer brand and the grade ii listed brewery for decades to come.

Cities like Manchester and Newcastle have been unable to save their traditional breweries but we know this scheme will ensure Liverpool has a thriving and historic brewery building for future generations.” the scheme, which is now awaiting planning permission, would create up to 528 full-time jobs and give the economy a £25m boost, according to estimates from the company.

Approval for £70m Altrincham leisure scheme

The proposed Altair scheme

trAfford CoUNCiL has approved plans from developer Nikal for an ambitious £70m leisure scheme for Altincham town centre, with work expected to begin as early as 2014. the 4.5 acre site, near to the new £19m bus, tram and train station development, will include a new leisure centre, restaurants, coffee shops and cafes as well as a bowling alley added to the existing ice rink. the leisure centre will cover 43,000 sq ft and 96,000 sq ft of retail space will be created as part of the scheme. the plans also include a new 35,000 sq ft office block with a car park and 150 new apartments and townhouses. it will be called the ‘Altair’ scheme and represents a more streamlined plan than

a previous application to regenerate the area, which was approved in 2008. trafford Council leader and chair of Altrincham forward, Councillor Matt Colledge, says: “i am excited by the refreshed plans for Altair and the positive effect it will have on the town as a whole. “it now offers a very complementary approach to the town centre, with the mix of leisure uses and cafes bringing a much needed vibrancy to the area and will attract families to spend more time not just within Altair itself but across the town centre generally.” developer Nikal hopes to start work on the scheme in 2014 and has outlined a completion date of 2017.

MOVE COMMERCIAL 13

News Retail

Rochdale chooses town centre developer ROCHDALE COUNCIL has chosen a developer for a major regeneration scheme in Rochdale town centre, it has announced.

Genr8 Developments has been confirmed as the partner in the development agreement and will now create a plan to revamp a large area of the town centre to create a department store, ‘a significant’ amount of leisure facilities and a new car park. The development will be built on the site of the current bus station, multi-storey car park and former council offices.

The council is currently putting the demolition of the buildings to tender and hopes a planning application for the site will be ready in 2014.

Mike Smith, partner at Genr8 Developments, says: “We are now in a position to talk to potential occupiers with real confidence about the development timetable. This is a prime site right in the heart of the town centre and immediately next to a new bus station and the Metrolink terminus, the iconic new council offices and library. We are really exciting about this opportunity and believe others will be as well.”

The plans will form part of a wider £250 million scheme to regenerate the town centre and will act as a gateway from the transport facilities to a revamped town centre, says the council. A new bus station and Metrolink tram stop are currently being developed at the site.

14 MOVE COMMERCIAL

Plans for £15m Corn Exchange revamp

The proposed Corn Exchange, Manchester.

MANCHESTER’S Corn Exchange building could get a £15m makeover to become a top city dining destination under new plans submitted by Aviva Investors.

The plans include retaining some of the food brands currently at the site including Zinc, Tampopo and Salvis, and attracting more to one of 12 retail

spaces in the building. The plan also includes refurbishing the interior and opening up three sides of the building instead of the Exchange Square and Cathedral Gardens options available to visitors now.

By opening up three sides it is hoped shoppers will cut through the building and will be convinced to stay at one of its restaurants.

The grade II-listed building has previously been known as the Triangle shopping centre since it was reopened in 2000, following an IRA bomb incident in 1996. It is believed that, if given the go ahead, work will start on the building in early 2014 and it could be finished by the end of the year.

The proposals are currently at the planning stage and a decision on the plans is expected to come within the next two months.

backing for scaled back retail park scheme sCALed bACK plans to redevelop Liverpool’s edge Lane retail Park have received council backing. the local authority has been working with developer derwent Holdings to rethink the planned improvements, after economic challenges are said to have “impacted on the size and scale of the scheme”. the first phase to create 21,000 sq ft of warehouse units by edge Lane and binns road is almost complete but at a recent cabinet meeting members considered reduced plans for the project moving forward. they agreed to support the changes, including 30 retail units rather than 46 in the main retail park, and surface-level parking instead of an underground car park.

A smaller-than-planned business park on the former robinson willey gas appliances site, and a leisure and restaurant development on land originally earmarked for a

rathbone Hospital extension, also feature in the new-look scheme.

A consultation will be undertaken for the project, which would create around 1,500 jobs. the scheme is considered important to the regeneration of the route into the city centre, which also includes new housing on edge Lane and the proposed

new royal Liverpool University Hospital. the backing comes as, elsewhere along the route, Capital & Centric prepares to start work on the bunker building at edge Lane’s Littlewoods complex. the £4m conversion will see the derelict warehouse turned into 18 small offices for growing sMes.

The vision for Edge Lane Retail Park

News Training

Awards for Merseyside employers and apprentices

Winners Fiona Chapman of Aintree University Hospitals, apprentice Gemma Parkinson and Philip Granville of Nutricia Liverpool.

MERSEYSIDE EMPLOYERS and apprentices were among those recognised at the regional final of the tenth National Apprenticeship Awards.

Aintree University Hospitals won the BAE Systems Large Employer of the Year accolade during a ceremony at the Lancashire County Council Chambers, organised by the National

Cultural internships and apprenticeships created through £500k scheme A NEW SCHEME will create 57 internships and apprenticeships in Manchester’s creative sector.

Employers from theatres, galleries, museums and arts organisations across the city have come together as part of a Manchester City Councilled consortium, which will run the Manchester Creative Employment Programme.

Through the initiative, paid roles including 16 apprenticeships and 41 internships will provide unemployed 16 to 24-yearolds with the valuable onthe-job skills and experience needed to embark on a career in the sector.

Digital development, event management and marketing roles, to theatre technicians are being created through the £500,000 programme, which is being funded through a £148,000

Creative Employment Programme award and £141,000 matched funding from employers.

Contributions have also come from the Association of Greater Manchester Authorities and other grants to support apprenticeships and jobs for young people.

Sara Whybrew, director of the Creative Employment Programme, Creative & Cultural Skills, says: “We’re really pleased to be able to fund consortium applications such as the one received from Manchester City Council. It's wonderful to see arts organisations working in partnership to support so many young people into employment through citywide bids such as this.

We hope that this approach will encourage other local authorities across England to follow suit.”

Apprenticeship Service and attended by companies, organisations and apprentices across Merseyside, Lancashire and Cumbria.

Gemma Parkinson from Liverpool’s Bridge Street serviced apartments was also awarded the prize for Higher Apprentice of the Year, and Jeanette Derrane from the Walton Centre NHS Foundation Trust was highly commended in the same category.

Advanced medical nutrition firm Nutricia, in Liverpool was awarded the Investors in People Newcomer Employer of the Year title, while Wirral-based Unilever UK was highly commended in the Macro Employer of the Year category, and Liverpool’s Andrew Collinge Hairdressing in Liverpool was

also highly commended for the Nuclear Decommissioning SLC Award for Medium Employer of the Year award. The winners will now go through to a national final, and winners will be announced at Birmingham NEC in November.

Sue Price, divisional area director for the National Apprenticeship Service in the North, says: Apprenticeships allow employers to grow their own talent, whilst enabling apprentices to earn while they learn and build a real career and a bright future. All our finalists are testament to this.”

Regional apprenticeship employer winners will also feature in the country’s acclaimed Top 100 Apprenticeship Employers list, being produced by the National Apprenticeship Service in partnership with City & Guilds.

EVERTON FC IN SUCCESSFUL BID FOR GOVERNMENT’S SKILLS AND TRAINING FUND eVertoN footbALL CLUb, balfour beatty and National Grid are among employers who will have access to a £238m funding pot to take part in the design of vocational skills. the department for business, innovation and skills has announced that a raft of firms of all sizes have successfully bid to design and guide vocational training to meet the needs of their workforce, as part of round two of the government’s employer ownership Pilots.

Having successfully bid for the initiative, everton fC will look to establish a traineeship scheme to “target the lack of employment in the local area and the perception that young people

Skills minister Matthew Hancock MP

lack work ready skills.”

Meanwhile balfour beatty is set to train workers to meet the demands of the highly skilled construction sector in a new academy, which will design the training employers need; and National Grid aims to bring together 93 employers from the energy sector to pioneer new training. skills minister Matthew Hancock says: “this project is helping to strengthen industries that know the skills of their workforce are a driver of growth and have the capacity to place the country ahead in the global race.” further successful bidders are set to be announced later this year.

MOVE COMMERCIAL 15

Bitesize thinking

Georgina Singleton investment advisor at The Chrysalis Fund

In my crystal ball…

The next twelve months should see a further shift towards recyclable public loan and finance facilities, with major economic centres likely to establish single investment funds to kick-start economic growth. With a suite of core cities such as Leeds, Sheffield, Newcastle and Liverpool joining Manchester in having a combined authority, there is likely to be a sea-change in approach with more ‘city region’ level funds emerging, making it easier for developers to navigate the existing public funding environment.

Where a fund exists such as the Chrysalis Fund for Merseyside, there is the opportunity to accelerate fund deployment and to take a lead over other areas.

If only I’d known…

How disruptive changes in government can be on the property market and on the public funding environment. Whilst the impact of the recession is well versed, I hadn’t appreciated how sensitive funding regimes are to political change.

The abolition of RDAs and ‘single pot’ funding in 2010 was followed by a series of fund initiatives. We have seen a re-emergence of enterprise zones, the introduction of Regional Growth Fund, Growing Places Fund and most recently the Local Infrastructure Fund. Three years on, we are now seeing a re-establishment of a single pot approach at the LEP level.

Whilst some schemes requiring public funds have been delayed or at worst shelved due to uncertainty and the added complication of different funds being administered in different ways – there is hope out there. We know the Single Local Growth Fund (and ERDF) will be operational from 2015 so now is the time to start preparing schemes in order to access the funding available.

My favourite building with...

Russell Holt

partner at UHY Hacker Young Manchester

The Empire State Building New York is my favourite city in the world, so it’s only right that my favourite building should be one of its most iconic.

I love the city for its sheer scale and ambition, everything is big and extrovert and it feels like a crossroads for the entire world.

No building truly reflects that Big Apple ambition quite like the Empire State Building, all 102 gleaming storeys of it.

A classic choice I know, but its midtown location in Manhattan offers by far the best views of the entire island, allowing you to see everything from Brooklyn Bridge to Times Square, Central Park and beyond.

The Empire State Building has been winning awards since the day it officially opened its doors in 1931. This includes being named one of the USA’s seven greatest engineering achievements - interestingly, it was the only one on the list to be conceived, financed, owned and managed by the private sector.

Dozens of Hollywood directors clearly agree with me and the frequency of the building’s movie appearances is great news, as I get to see and enjoy it all the more often!

I wonder if American Airlines are still flying Manchester direct to JFK...

18 MOVE COMMERCIAL

“The Empire State Building has been winning awards since the day it officially opened its doors.”

Bitesize thinking

John Hughes Ask Developments

Curriculum vItAE Main duties: Moving the business forward, continuing the delivery of key projects, identifying new opportunities, maintaining strong relationships with our partners and creating new ones.

Education: Sheffield Hallam University Bsc (Hons) Urban Land Economics.

First job: Development surveyor, Henry Boot Developments.

Shortest job: Car valeting in school holidays.

What’s the secret to your success? Always thinking of new development angles. Behaving with integrity opposite development partners and customers.

What’s the best piece of business advice you’ve ever received? Always have a Plan B, because nine times out of 10 that is the one you will need to implement.

What advice would you give to somebody starting out in the industry? Always think beyond your immediate role and identify how you can demonstrate more of your skills.

What makes Ask Developments different? Our track record of delivering successful development projects and creating exciting places where people want to be, and our ability to move with the market.

Tell us a bit about Ask’s plans over the next 12 months. Continue the evolution of First Street into an exciting new destination in Manchester city centre, and to take the business into a diverse range of sectors.

Tweet all about it The 5 best commercial tweets

1 2 3 4 5

@BenJCapper Nice to see a growing number of cranes on the Manchester skyline.

Welcome back. @joeforliverpool Overwhelmed by contacts since the launch in London yesterday of the International Festival of Business in city. 56 countries represented. @w_locke A few finishing touches at @Exchange_Stn and we'll be ready to open the doors to a new world of service and connectivity #allchange #ontrack @DougalPaver Great to see that India Buildings is getting a facelift - one of Britain's most stunning office blocks: #itsliverpool @DaveMorgan25 Impressive to see the new plans for Piccadilly Station with #HS2 investment. Good work by Baroness Susan Williams

Commercial

StAtS

168

The number of feedback responses received across the Liverpool City Region during a consultation into whether a combined authority should be formed in Merseyside. Supporters argue that it would help improve the economy, create jobs and benefit communities.

2020 Manchester aims to be one of the world’s leading digital cities by this year, and is working on its strategy to boost connectivity and WiFi access for businesses and members of the public.

1.8%

The increase to UK retail sales values on a like-forlike basis from August 2012. That’s according to British Retail Consortium and KPMG figures.

250,000 The number of business professionals the International Festival for Business is expected to engage with when it takes place in Liverpool next year. The major event is also expected to draw £100m direct investment into the UK.

2.2

The number of acres taken up by Manchester’s First Street North regeneration site, which is currently being constructed. The scheme will feature a cultural venue, a hotel, restaurants and a car park.

£4.7m The estimated boost to the Liverpool economy that is expected from the NHS Confederation conference returning to ACC Liverpool. Around 2,500 delegates are likely to attend the event in June 2014.

Appointments GVA appoints a new associate Independent commercial property consultancy GVA has appointed David David Thwaites Thwaites associate of its Manchester office.

David, the former head of office agency at Lambert Smith Hampton in Manchester, says: “Joining GVA’s North West office team is a fantastic opportunity to be involved in some of the biggest developments in the region. Working alongside Chris, my private sector experience and knowledge of the North West market will bolster the team’s reputation as one ofthe region’s leading commercial property consultants.”

Chris Cheap, head of North West offices at GVA, says: “We are delighted to have attracted someone with the standing and experience of David. He comes with a proven track record of transacting office space at all levels and is already well known to our existing client base.”

Ask Property Developments appoints new chief executive John Hughes will replace Ken Knott as chief executive of Ask Property John Developments.

Hughes John will resume leading the Ask team on the First Street Project and he will continue to develop the Manchester gateway site, where the new £25m HOME cultural centre for Manchester City Council is situated.

John, who has also been a development director at Ask and a board director, says: “It is an exciting opportunity for me to drive the company forward through its next phase of development. We have a highly capable team and I am looking forward to leading Ask in this rapidly changing market-place. Our projects are very well positioned to take advantage of the positive occupier and investor sentiment towards the Manchester city region.”

Iwan Griffiths appointed chairman of Marketing Manchester Iwan Griffiths, the NorthWest chairman of professional services firm PwC, has been Iwan Griffiths appointed chairman of Marketing Manchester.

Iwan will oversee Marketing Manchester’s board and represent the agency at Greater Manchester Local Enterprise Partnership meetings as part of his role at the organisation, which aims to promote the Manchester region as a leisure and business destination locally and nationally.

He says: "I look forward to working with the team to make sure Manchester continues to be an attractive choice for investment. I hope to bring a global perspective to the role and use my international and UK networks to support the agency in promoting the city on an international and UK stage.”

Having joined PwC in 1994, Iwan has held leadership roles in the UK, South Korea and Japan.

He is currently North West chairman and oversees a team of 700 in Manchester and Liverpool.

Promotions at Brabners Brabners, a North West corporate and commercial law firm, has a new partner Mathew in its real estate O’Brien team. Matthew O’Brien, who is an expert in property law, has been with the firm since 2003 as a trainee. Matthew, who specialises in transactions in the industrial and logistics sector, will be providing services for large and mid-sized corporate clients, as well as SMEs and entrepreneurs nationwide.

Furthermore, Colin Bell has been promoted to senior associate, as well as Adrian Rodgers, Nicola Soden, Simon Bloch, Claire Brown, Philip Parker, Susan Thackeray and Stuart Baird.

Financial News

Use a property company, advises tax expert BUSINESSES ARE being urged to consider using a property company to make savings on capital gains tax from 2015 because of the falling rate of corporation tax in the UK. Tax expert Wilson Henry LLP says now may be the time for businesses to hold rented properties in a limited company because corporation tax is due to fall to 20% in 2015.

It says: “On the sale of a property to realise a capital gain, a company will pay only 20% tax on its capital gains after April 2015, compared with 28% if owned personally. A limited company will be of particular benefit if your plan is to reinvest the rental income and capital gains and acquire more properties within the company.”

There are two circumstances when personal ownership will be more desirable, says Wilson Henry, including when a company remortgages its properties to raise cash. When this cash is extracted for personal use it could result in a personal tax liability. The second reason is because exemption from capital gains tax on an ‘only or main residence’ does not apply if the property is owned by a company.

Wilson Henry LLP’s team of tax experts will present their top tax saving tips relating to property owners at the Merseyside Landlord and Property Show on Thursday 3 October.

Free tickets are available to download at www.merseysidelandlordexpo.com

£100m milestone for the North West Fund

Cliff Maylor

OVER £100M has been invested in business across Merseyside, Greater Manchester and Lancashire, two and a half years in to a five-year investment scheme.

The North West Fund, an investment fund set up to help small and medium businesses in the area, has so far invested £60m supporting over 200 entrepreneurs in the region and private sector funding has provided a further £40m. However, with more than two years of the scheme still to go 60% of the original £155m fund is still available.

The fund is backed by the European Investment Bank and the European Regional Development Fund and supplies debt and equity funding to small and medium-sized businesses. Business that have benefited include A Seftonbased robotics company, which received a £100,000 loan, and £500,000 investment in a business that provides communication solutions for hotels.

Cliff Maylor, chief executive of North West Business Finance, which manages the North West Fund, says: "The business and entrepreneurial talent in the North West is impressive and our priority is to support these growing businesses with finance, whether they are just starting up or looking to expand.

"During 2013 we have already invested more than £17m into over 50 businesses. This is testament to our team of fund managers who continue to work hard across the region, building relationships with businesses, intermediaries and other key stakeholders.”

For more information visit www.thenorthwestfund.co.uk.

Commercial property returns reach 29-month high UK CoMMErCIAL real estate is thriving as it recorded a fourth straight rise in value in August 2013 to reach a 29-month high, the latest figures from Investment Property Databank (IPD) reveal. office buildings and warehouses are at the forefront of the recovery as returns rose 0.9% in August compared to July’s figures.

Property values increased by 0.4% as both office and warehouse values rose by 0.6% in August while retail properties rose by a more modest 0.1%. However, this ends 21 consecutive months of decline for retail values in the UK. The success is being attributed to low interest rates and bond yields, which has encouraged investors to look at commercial property that delivers high returns.

The report also speculates on business and consumer confidence rising as the value of property increases.

Phil Tily, executive director

and head of UK and Ireland at IPD, says: “This time last year, values were falling by 0.3% and the economy looked ready to slip back into recession. However, in twelve months we have seen economic growth returning (if indeed it ever left), consumer and business confidence rising,

and a raft of improvements in other economic indicators.

“As this growth moves further out of London, income and value add opportunities in the regions, where income yields often exceed 8%, will start to attract investors willing to move up the risk curve.”

MOVE COMMERCIAL 21

Offices on the edge

Liverpool Waters

Office Space Feature

In 2012 there was a 40% increase in demand for office space in the Liverpool region but it must also compete with Manchester to attract North West investment. As the economy tentatively emerges from recession we ask two experts with differing views where Liverpool stands in the UK office market and if it’s fulfilling its obvious potential.

Euan Blake account director, Innesco

Brian Ricketts Hitchcock Wright & Partners

In difficult times during the first decade of the 21st Century Liverpool’s economy grew at a faster rate than the UK’s.

Liverpool’s employment growth of 9.9% between 1998 -2011 has also outpaced the UK’s growth rate of 7.8%. But I still don’t believe that Liverpool is close to achieving its economic potential and this can partly be attributed to the city’s office market.

Overall office market take-up rose from 382,592 sq ft to 534,730 sq ft in 2012 in the Liverpool region.

However these figures don’t show the full picture as the digital sector boom somewhat papers over the crack of the wider market. In 2012 the creative, media and digital take-up in Liverpool rose from 5.9 per cent

(22,703 sq ft) to 16.5 per cent (88,482 sq ft).

However these new occupiers predominantly moved into low-grade buildings in out of town locations and many were start-ups or SMEs that cannot have the same positive impact on Liverpool’s economy as the blue chip professional sector companies that Liverpool should be attracting.

To attract major international professional services and financial institutions, the city needs an injection of Grade A office space, but with little speculative development underway and lack of appetite from institutional investors to bankroll such projects, it seems the situation can only get worse in the short term.

Merseyside’s office market is open to challenges from Manchester and

Leeds, who both continue to outperform Liverpool in office take-up and rents. According to Knight Frank’s 2013 Q1 Market Updates, both these cities also report lower vacancy rates and have significant commercial development projects such as Allied London’s Clarence Docks in Leeds and Spinningfields in Manchester. These projects offer Grade A offices to A grade occupiers, making it very hard for Liverpool to compete.

Maybe Peel Holdings ambitious Wirral Waters will come to the wider city region’s office market rescue, but as the last news update on the project’s website is dated 21 September 2011 who knows what the future holds for Merseyside’s office market in the short, medium and long term.

It’s no secret that the UK was hit hard by the financial crash, especially the commercial property market. Once seen as a safe haven for investment, commercial real estate fast became a no go area as a result of the plummeting valuations.

But things are changing and it certainly isn’t all doom and gloom.

Speculative building is making a return to major UK cities, demonstrating that developers have renewed confidence in the commercial property market and our vibrant cities.

Liverpool can certainly hold its head high from this perspective having

seen a surge in demand for office space in recent months. This surge is likely to continue as we see inward investment to the tune of billions enter the city.

The Liverpool Waters £5.5bn regeneration scheme will see a 60 hectare docklands area transformed into a world-class mixed use waterfront boasting retail, hotels, residential and commercial office space, all of which will undoubtedly, when teamed with other projects, bring more investment and businesses into the city.

The opportunities don’t stop there.

Highly acclaimed designs, recently

given the green light, will see the Pall Mall commercial district of the city transformed. Such developments will provide the catalyst for future developments that are hailed as vital in the city's drive to compete as a world-class business centre.

As home to some of the most beautifully ornate architecture, and with a highly successful business and commerce history, Liverpool certainly has a lot to offer any organisation whether it be a new start up, the relocation of an existing company or the location of an international organisations UK office base.

MOVE COMMERCIAL 23

Key events Accelerate 2013

Photos by Peter Kelly

Accelerate 2013 attracts big business names Some of the world’s brightest business minds, economists and inspirational speakers descended on Liverpool’s Arena and Convention Centre, as the Accelerate 2013 festival took place.

The one-day event, which focused on high-growth firms, welcomed speakers including Wikipedia founder Jimmy Wales, the Prime Minister’s enterprise advisor Lord Young and the BBC’s Robert Peston as well as Liverpool Vision chief executive Max Steinberg.

Delegates at the conference also found out how to tackle the opposition with former All Blacks rugby team star Sean Fitzpatrick, as well as picking up business tips and networking.

Meanwhile the Accelerate 250, Britain’s fastest growing businesses, were brought together under one roof during the event.

1

3

2

5

8

6

4

7

9

10

1. Michael Hayman welcomes Max Steinberg to the stage. 2. Jimmy Wales, founder of Wikipedia. 3. Charles Morgan, chairman of Morgan Motor Company, with one of his fabulous sports cars. 4. Vilyana Apostolova (Coutts) with Hugh Chappell (entrepreneur and keynote speaker). 5. oli Barrett, of CoSPA and StartUp Britain, warms up the crowd. 6. Marina Wegorek & rachel Parker (both of rBS). 7. Kelly Sutton & Chris Parsons (both of Deloitte) with Matt Allen (Medicash). 8. Delegates gathered to watch key speakers. 9. Max Steinberg, chief executive of Liverpool Vision opens Accelerate 2013. 10. Visitors get the chance to see how good they are at rugby!

By Christine Toner christine@movepublishing.co.uk

Sarah Williams’ interest in property began when she was just a teenager. 10 years on she's come a long way and is now asset manager for Ashtenne, with responsibility for, among others, the Exchange Station redevelopment.

Move Commercial caught up with her to find out how her latest project is progressing.

A change of pace When Sarah Williams was a teenager at boarding school in Somerset, she would look forward to the school holidays when she'd return to Liverpool and spend time with her parents, including her residential landlord father. Still unsure as to what she wanted to do in terms of a career she would spend time at home working with her father and, in time, developed his passion for property. It's a passion that has saw her career progress quickly and one that is clear to see today.

But despite inheriting an interest in property from her father Sarah did not follow the same path as him, choosing instead to pursue a career in commercial property rather than residential.

“When I left boarding school I returned to Liverpool and studied real Estate Management at Liverpool John Moores,” she explains. “The course was really commercial based and I really enjoyed that. Then in my second year I did a summer of work experience with CBrE and I found that really confirmed it was commercial property I wanted to get involved in.”

After graduating in 2007 Sarah took a job as assistant property manager with Downing Developments. It’s a role she says gave her valuable experience but 28 MOVE COMMERCIAL

wasn’t quite as hands on as she would have liked.

“A lot of the work was administration-based rather than the nitty gritty property work I wanted”, she says, explaining why she left the role soon after. “obviously it was great to be involved with Downing and see how the team worked. It owns a large portfolio of commercial and student accommodation so it was a good insight into how companies like that work but I wanted a role where I was more involved in the hands on things I had studied at university.”

From there Sarah worked at Knowsley Council in its estates department, looking after its property portfolio (primarily Knowsley Industrial Park) before taking up a position at the North West Development Agency (NWDA) where she stayed for two and a half years.

Her role at NWDA eventually took her to Manchester where she worked on the Ancoats Urban Village project, a key refurbishment project in East Manchester but eventually, tiring of the commute from her home in Liverpool, she found a new role in Liverpool at Spencer Holdings.

“It was a family run property investment company in Knowsley,” explains Sarah. “It had a portfolio of just over 100 assets nationally

and my work was really hands on, dealing with property matters from start to finish.”

In December 2011 Spencer Holdings sold its entire portfolio of commercial property to Hansteen Holdings and Hansteen UK Industrial Property in a deal worth £150m.

The move meant the entire Spencer Holdings staff were made redundant shortly before Christmas.

“It was a worrying time,” says Sarah. “However, I received a phone call on Christmas Eve from Hansteen saying they’d picked a couple of people they’d like to come back in January on a temporary four month contract and I was one of them. That was a big relief.”

After completing the handover period, in May 2012 Sarah was taken on by Ashtenne as asset manager.

Ashtenne looks after two portfolios - Ashtenne Industrial Fund, which is a private fund and Space Northwest, a joint venture fund between Ashtenne and what used to be the NWDA but is now the Homes and Communities Agency (HCA). Exchange Station, the firm’s latest project – and the one Sarah is particularly excited about - sits within that joint venture.

“When I first started I looked after about 15 properties, including Glacier Buildings at Brunswick dock and Wavetree Technology Park,” she explains. “Wayne (Locke, director at Ashtenne Space Northwest) was looking after Exchange Station. He was doing all the work in the background to get this project off the ground. once it was confirmed we were going to push ahead with a £5m investment into the refurbishment of the property I came on board”.

The former railway station, first opened in 1850, has undergone a £5m refurbishment and has 190,000 sq ft of office space to offer.

Sarah Williams Rising Star

The office accommodation ranges from 635 sq ft to 46,000 sq ft. At present 68,000 sq ft of space is in the advanced stages of negotiation with tenants close to signing while 58,000 sq ft is subject to less advanced interest. Space Northwest is targeting a service charge of £4 per square foot in the next two years “We’re creating a hub in the centre of the building which will have a meeting space, two fully equipped meeting rooms, a high quality coffee shop and reception desk with security presence,” says Sarah. “It will have a concierge feel with someone who can look after people’s visitors and guests, as they

come into the building, book hotels and restaurants, collect dry cleaning etc. obviously our main focus is office accommodation but we want to add something extra.”

The concourse area including the coffee shop and around 18,000 sq ft of refurbished office was completed earlier this month.

There will also be a number of units available for retail purposes, a gym, which is set to be completed in early october and 190 car parking spaces that can be offered to tenants.

Despite the refurbished building generating a good level of interest, one can’t help but wonder how Ashtenne intend it to compete in

an area where office space is by no means in short supply.

“I think the concourse area is massive selling point,” says Sarah.

“Plus the office accommodation we’re providing is equivalent to Grade A and we’ve taken a strong sustainability approach. “our office accommodation has an EPC rating of B39. We’ve got carpets that are 85% recycled and a sustainable VrF heating, cooling and ventilation system which means for every 1kw of energy used you’ll get 3.9 kW output. our tenants benefit from not having to pay out as much on energy bills”.

Sarah says the building’s connectivity will also be a selling

point. The offices come with 1 GB/s broadband connectivity immediately available to each suite as well as 10 GB/s fibre capacity to the building.

For Sarah, working on the city centre project is an exciting challenge and one that she is relishing.

“It’s very different going from nitty gritty industrial properties and out of town developments,” she says. “It’s nice to have a city centre, upmarket project and it’s great to work on an office development.

This is the first time I’ve been involved in a project where there is such a big amount of money being invested too. It’s very exciting”.

MOVE COMMERCIAL 29

Key events North Liverpool Breakfast Forum

Photos by Peter Kelly

2

3

Businesses network over breakfast

1

Businesses gathered at Liverpool’s Lounge V as the North Liverpool Breakfast Forum hosted its quarterly meeting.

The forum, hosted by Martin Clarke of Bootle Glass, provides a chance for local businesses to network as it holds meetings every other Wednesday. It has more than 30 businesses in its membership.

The latest quarterly meeting allowed regular attendees to bring guests from other businesses with them, as they enjoyed morning refreshments and talks from key speakers.

The event also provided an opportunity for members to get up to date on all the developments and changes that are taking place in the area’s local business sector.

4 8

5

9

6

7

10

11

12

1. Terry rawlings (GTr Signs), Conor McDonald (Iona Group) & Martin Clarke (Bootle Glass). 2. Paul rowley (rowley Szilagy Surveyors), Veronica Boggan (Lounge V), Derek Barker (Sefton Fire Protection) & Jimmy Johnson (Manor Building Solutons). 3. John Boyce, of Tilly Hire, chairs the proceedings. 4. Claire Tagg (Get recruited), Bernie Hollywood o.B.E. (Business in the Community) with Paul rowley (rowley Szilagy Surveyors).

5. Elaine Bowker, principal of The City of Liverpool College.

6. The event was well attended by businesses. 7. Lisa Tomkinson & Dave Saville (both of Laing o'rourke). 8. Paul Jasper (Coresafe Consulting) & Eddie Warburton (Grand Engineering Ltd). 9. Members of the business community listened to key speakers. 10. Gary Hayward, of The Anfield Project. 11. Donna Dainton (Trinity Business Centre) & Chris Wootton (owl Business Focus). 12. Peter Davies (Airport Partners, Liverpool Airport), Carena Duffy (Everton in the Community) with robert Zatz (Your Energy Matters).

32 MOVE COMMERCIAL

MOVE COMMERCIAL 33

By Natasha Young natasha@movepublishing.co.uk

Given the success he’s had, it’s difficult to believe that 10 years ago entrepreneur Richard Sutton had yet to make a mark on the business world.

But with plenty of drive, vision and an eye for a gap in the market he’s since experienced success in both the property sector and competing with big brands on the high street.

Community coffee Warrington man richard Sutton left the chemical plant he worked in just under a decade ago with a “real yearning” to start his own business.

This prompted the launch of nationwide property investment firm Arkle Properties, alongside business partner ron Hickman who has since passed away.

“Working from the back room of ron’s house, within two years it almost had a £1m turnover and nine staff,” explains richard.

“We had four or five successful years and then when the property downturn came that’s when we diversified and I went on to buy a number of properties to build a portfolio myself.”

It was through this work that richard was inspired to launch his current venture, the Poco Coffee chain, with the help of wife Angela.

While to some a shift from the property sector to running high street coffee shops may seem unusual, to richard it made perfect business sense.

“After building a portfolio of rental properties for a couple of years I started to spend that much time meeting people in 34 MOVE COMMERCIAL

Costa, and I started to pay more attention to what this sort of new age of coffee shops was doing. In my view they were changing the social landscape, becoming the new pub.

“All the social activity that would maybe go on in a pub some years ago had seen a bit of a sea change.

It's moving on to coffee shops.

That’s what attracted me initially and then I saw an inspiration in terms of, well maybe you could have a Costa-style coffee shop with all the big brand fit out and the coffee and the music in that style but you could have it on a bit more of a localised theme.”

After just 12 months richard now has two shops running successfully in Newton-le-Willows and Prescot, each incorporating the history of the buildings and their surrounding areas through some locally-themed furniture and wall art and making the most of local produce and suppliers. He’s also currently on the lookout for a third location to open a branch, and hopes to later expand the chain further.

“We went into it thinking we’d

look at getting three and then we’d assess the viability of growing it possibly through franchise or other means of organic growth and that’s still the plan. We’ll hopefully have three by the end of this year,” says richard.

Selecting the right locations for shops has been key to Poco’s quick success. Despite major coffee chains cropping up all over many towns and cities, with branches now both in and out of high street areas as well as inside other stores and supermarkets, richard has still managed to target areas that have been lacking such outlets.

He says: “The first few shops aim to go to places where people still aspire to have a really nice branded coffee shop but perhaps the bigger boys felt there wasn’t the footfall to support their brand and their costs, so we’ve done that with the first two and it’s worked well for us.

“In a nutshell we’re trying to become more of a localised community hub. That might sound a bit grand but that’s what we’re trying to do. Sometimes, as much as I don’t want to decry what some

of these big brands have done, they’ve been really successful in the high street but we think there’s a little bit of a niche here and they’ve maybe gone a little too far away from what’s going on locally.

We’ve tried to bring that back a bit, staying with the style and a really expensive fit out and it seems to be working.”

The success of the Poco Coffee shops themselves has not been richard’s only focus within the areas he has picked to trade in. realising that for his shops to successfully be at the heart of a community he needs to show support for the community and his high street neighbours himself, he has since been involved in the Knowsley Council backed Prescot ‘town team’, adding: “The town team is trying to increase footfall and raise the profile of the town centre, so I’ve gotten involved in that and hopefully I can add some value there.

“When we take one of these shops on we try and take it on with a view to not just selling coffees, cakes and sandwiches but trying to genuinely help, where possible,

Richard Sutton Entrepreneur

with some of the schemes or initiatives that are going on in our locations.” richard, who also contributes time and business expertise in his unpaid role as chief executive of Warrington Town FC, believes carrying out plenty of research before venturing into the industry has also stood him in good stead.

He adds: “I viewed the coffee business as bucking the trend.

While people were going bust you were still seeing the coffee operators increase in their numbers so it was more than just an educated guess. We did a lot of research into what the big players were doing before we took the step and tried to build on the fact that these outlets were still being seen as important cornerstones of the high street and it did seem to be a sector that was still growing.

“There’ll be one or two evolutionary changes with coffee shops over the next five years but there still seems to be a real appetite from within the community and on the high street for people to spend money in them.”

MOVE COMMERCIAL 35

36 MOVE COMMERCIAL

MOVE COMMERCIAL 37

38 MOVE COMMERCIAL

Photos by Peter Kelly

Key events RICS Summer Social

Property industry socialises at RICS event Members of the region’s commercial property industry came together for a feast of Italian food and drinks as the RICS (Royal Institute of Chartered Surveyors) Summer Social took place.

The Liverpool event was one of four to be hosted by the RICS Merseyside and Cheshire Local Association each year – with two in Merseyside and two in Cheshire and also gave guests the opportunity to network as a delicious array of canapés were passed around the room.

Sponsored by Exchange Station, the well attended get-together was held at the city’s Piccolino restaurant on Cook Street.

The RICS Merseyside and Cheshire Local Association is now looking forward to hosting its next social evening in November.

1

3

2

4

7

6

5

8

9

10

1. The RICS committee: Jon Swain (Mason Partners), Darren Yates (Todd & Ledson), Rachel Hoy (Grosvenor), William Rees (Rees Straw) and Shannon Conway (Jones Lang LaSalle). 2. Andrew Byrne, Tony Reid ( both of Keppie Massie), Paul Thorne (Mason Owen) & Robin Ellis ( Downing). 3. Stuart Keppie (Keppie Massie), Wayne Locke (Ashtenne Exchange Station) and Matthew Giles (MgMaStudio). 4. Tom Webster, Chris Beamer (both of Mason Partners), Matt Kerrigan (Hitchcock Wright & Partners) with Marc Serridge (also of Mason Partners). 5. Carrie Allen (Active Profile) with Wayne Locke (Ashtenne Exchange Station). 6. William Rees and Tony Straw (of Rees Straw) with Rachel Hoy (Grosvenor). 7. Chris Beamer, Tom Webster and Martin Rodd (all of Mason Partners). 8. John Swain (Mason Partners) with Colin Jennings (Edward Symmons). 9. Michael Fitzpatrick (Edward Symmons), Darren Yates (Todd & Ledson) with James Rothwell (Edward Symmons). 10. Wayne Locke, of Ashtenne Exchange Station, gives the guests a broad view of his services.

By Suzanne McGuckin

The Future of the High Street The future of the high street has and will probably continue to cause much debate.

Doomsayers are predicting desolate high streets and city centres thanks to the surge in online shopping and the crippling business rates. Conversely, others can see light at the end of the tunnel and with some savvy business moves retailers can take back control and start to thrive. We invited two experts to consider the current state of the high street and to discuss the many things that are helping and hindering a resurgence.

Matt Kerrigan (left) partner at commercial property agents Hitchcock Wright and Partners Ged Gibbons (Right) chief operating officer at Liverpool’s City Central BID

42 MOVE COMMERCIAL

Future of the High Street Lunch debate

“

know their own environment and what works for that environment.

There is no panacea. What will work in the West End of London won’t work in Leeds.

We cannot create a homogenous shopping scene. Strong independent retailer presence gives high streets the edge. The ingredient these retailers can add is passion.

MK: The out of town retail parks have impacted massively because of the free parking. Psychologically people rate free parking and are drawn to out of town complexes because of this.

GG: Free car parking is something of a misnomer. If you travel to an out of town shopping complex how much has it cost in petrol to get there?

We have to ask, also, at what point can we tolerate high levels of vacant units where there is no return on investment? In some ways car parking is the same. Onstreet car parking fees go to the local authority. But if you make the city more appealing to would be investors by offering free parking you are going to get a greater return from business rates than you are the parking fees.

High streets need to be better than the out of town complexes.

They need to look at what they offer in addition to the retail element.

”

The high street has taken a blow in recent times. What is needed to ensure no further damage is done?

GG: If retailers can shoulder the hit of the current crisis then they should be ok. A lot of SMEs will perish as a result of a global recession. There has to be a collective responsibility to have a great city centre or high street. I use the analogy of a family – it is important that you have a mixed bag – the older, knowledgeable ones through to the young new starts. Everyone needs to look after each other.

MK: Promotion of cities through other avenues such as tourism, business, etc can be hugely

positive and can bring people into the city. Take Liverpool - the Capital of Culture, the music festival, the new cruise liner facility and the arena have all brought people in. The airport, the rail system and the cruise liners facilitate the easy access to the city, which can be seen to survive off the successful leisure market.

GG: Cities and high streets that are successful are no longer onedimensional.

If you are not working in an environment of confidence across all elements you are going to struggle.

Is the high street as it stands able to move forward and

accommodate those wanting to move in? How attractive is the offering when compared to out of town retail parks?

MK: Street scenes need to change - many retailers cannot afford to fit out units to accommodate their needs. There is retail demand but the existing buildings available cannot accommodate this demand.

GG: High streets are demand led. I had a conversation recently with Mary Portas where we discussed many things; free car parking for example. In some instances this wouldn’t work. In major cities like Liverpool, for example, workers would take up all the spaces in the morning leaving none for the shoppers. High streets have to

What are the solutions?

GG: There needs to be a collective approach. Working with other surrounding centres where there is joined up political thinking will make a difference. High streets need to work together on a number of levels. Local, regional, national and international if they can.

MK: High streets need to be better than the out of town complexes.

They need to look at what they offer in addition to the retail element. Leisure and tourism, for example, can add to the offering.

Make the high street and surrounding area appealing.

MOVE COMMERCIAL 43

“

We don’t just want the students to come in to study and get a great education we want them to stay here – we want those brains here.

”

GG: Incentives work well. High streets and city centres need to look at incentives such as: spend £50 in-store and you will get a reduction on your parking ticket.

How has the delay in the revaluation of business rates affected things?

MK: My view is that business rates are really hurting retailers and occupiers across the country, and landlords where they have voids.

There are lots of instances where rents are lower than what the ratable value is. If we are marketing a unit we can explain rent, incentive packages etc but when we tell them the ratable value more often than not the deal

44 MOVE COMMERCIAL

everything else for them but that is the one thing that is out of our control. Fortunately the government has stopped out of town retail developments and this will ultimately give the smaller high streets a chance. This may take some time though.

How important is retail to the success of an area?

cannot go any further. We have no control over that element. They are difficult to reduce. This puts pressure on retailers as their overheads are fixed and costs are being forced down by competition.

There are some incentives to help smaller businesses but the larger, empty buildings’ landlords are the ones really struggling.

GG: Rates affect everybody and will no doubt cripple many cities and high streets. It becomes impossible to do a deal. It is not from lack of appetite. BID is developing a vacant unit strategy (more extended than the pop up strategy). We know the property owners, the properties themselves and the people who have the business idea and the need for

retail space. The idea is to put them together.

MK: High streets need to be able to influence the UBR (Uniform Business Rate). What local authorities need to do is fight to be able to alter it locally according to the specific needs of the high street. It depends on the overheads of the high street – if services can be delivered more cheaply then they will be able to reduce the UBR and this will help retail and all occupiers. I think this is a very important point.

GG: I speak to lots of people on a regular basis that are keen to come to Liverpool but business rates are the main thing that prevents them from coming – it all comes crumbling down. I can sort

GG: If you take, for example, a town centre where I used to manage – this used to be a great little town centre but now they have built an enormous supermarket right next to it.

Planning laws say it has to be at least ¼ mile outside the town centre – as a result I speak to old friends and colleagues still there who say it is worlds apart from what it used to be. The supermarket is killing the town centre. The key thing about the high street is what used to happen has ceased to happen and will never come back – this idea of we will return to how we used to be is never going to happen.

It is important to engage with the community. We work closely with the universities here in Liverpool for example. We don’t just want the students to come in to study and get a great education we want them to stay here – we want those brains here. We don’t want what was termed ‘the brain drain’ scenario of the 70s and 80s.

Cities and towns need to present a solid infrastructure that offers everything that is needed and retail is vitally important to this.

Has online retail really made an impact?

GG: There are a couple of schools of thought on online. When it first reared its head a few years ago it was all ‘it is going to kill the high street – no one is going to go

Future of the High Street Lunch debate

shopping anymore, everyone is going to buy online’. There are limitations – look at the infrastructure that supports online purchasing.

A lot of people are captured by the romanticism of ‘hit the button’ but you have to think about the services that are supporting it.

Delivery companies are often hindering the system with poor service standards.

MK: Everyone got very excited when the whole online retail thing kicked off, but a lot of purchasing is tactile. People still like the idea of looking round the shops, looking at what is on offer and being able to touch and feel things. People want to feel they are getting the best value for money. I still like to buy in-store rather than online.

There is the added benefit of the trusted brand, better warranties, the knowledgeable staff and the fact that, if they are a good retailer, they are going to still be there in five years time. A lot of retail outlets now price-match online prices. For big purchases, I think people will still do their research online but they will go to shops and retail outlets to buy the item.

GG: Ladies in particular like to walk round and touch things and try on and a lot of the time they will make impulse buys which is helpful to the high street retailers.

It is publicised that online sales account for 15% of all retail sales – the likelihood of it going much further is limited – some people say it might go as high as 20%.

Interestingly some major town centre, shopping complex, and city centre managers are saying that online is benefiting some of the bigger retailers. They will order an item online, visit the store to

collect it, leave the car in the car park, have lunch, buy other things then head home. They don’t want to come in just for the one item.

MK: With online there is the postage and packaging to pay for and then the wait for the goods to arrive. Retail is instantaneous.

GG: Most people still like communication and the spoken word – you can only get this interaction from in-store experience. After sales, customer service is key. Through BID we do a lot of mystery shopping with our retailers looking at all elements of their business. We then feedback the results to the retailers and then work with them and offer them solutions to ensure they are tackling issues.

This has been so successful in the retail world and we explain to our retailers that our aim is to broaden their margins. It’s about looking how retailers can maximise opportunities. Lots of places do mystery shopping and then simply feedback the results and that is it!

We look to go that one step further.

What can be done to help smaller businesses wanting to get a high street presence?

GG: We have something called the vacant unit strategy. Some of the larger units that are too big might be split down into smaller units or studios. As it stands the smaller retailers are struggling because of rent and rates. They simply can’t afford it. But if there is an offer of a smaller unit within a bigger one where there are a number of small retailers under one roof - this will work. Add in support for things such as HR, finance, marketing, etc and a high street/city centre

incubator set up is born. This will help start ups to flourish.

MK: There are offers around such as rent free periods but to get these deals you have to sign up for a long time. Retailers need to be able to test the water. I have worked with a client who has set up what he calls a ‘bazaar’, where

there is a weekly rent for a table in a market stall set-up. It is almost a posh market where people can sell what they produce. This client says that this set-up is very successful and thinks it could work really well across many high streets and even in city centres.

THE BANK BAR AND BRASSERIE Brunswick Street, Liverpool Built in 1799 the restaurant is housed within the walls of the Heywood’s building, Liverpool’s oldest bank building. Still incorporating much of the original features, it’s laden with all the modern luxuries you would expect. The Heywood’s Building retains its spectacular design and architecture that is in keeping with the rest of Liverpool’s beautiful architecture.

Situated in the heart of the business district, The Bank Bar and Brasserie is the ideal location for meetings and private events. The MEZZ area can cater for small meetings up to larger conferences, the uniquely designed restaurant space provides a creative and inspirational environment for delegates in a theatre style.

The restaurant offers appealing breakfast, lunch and dinner menus all of which give diners a great deal of choice whilst catering for all tastes and dietary requirements.

To book a table or to enquire about business functions and events call 0151 236 5346.

MOVE COMMERCIAL 45

By Stephen Hurrell stephen@movepublishing.co.uk

Developing Liverpool’s iconic and controversial India Buildings into the region’s most impressive Grade A office is a daunting challenge, but one that excites Mike Tapp, director of Green Property. He speaks to us about the building and his future plans for the city’s commercial property.

Making an impression

48 MOVE COMMERCIAL

occupancy dropped from around 3,500 people to just 400 and over 70 per cent of the commercial space in the building remains empty. Now tasked with developing the building for use as office space, Mike admits the balance between restoration and modernisation is a tough one.

He says: “You have to have a balance between the two. We want to keep the tenants that are already in the building. The biggest issue facing the market is demand.

Demand is low and the market is still thin.This is very much a tenants’ market and most people are trying to retain tenants. We will do this by talking to tenants directly and finding out what makes them tick.”

With the confidence tentatively returning to the market there could be rising demand over the next few years. “There is a feeling now in cities like Liverpool that there could be a shortage of quality office space.

Nobody can afford to build new buildings so who is going to build?”

Instead, Green Property will renovate. The 5th floor of the building is the first to get the Green Property treatment. It will cost £1.5m and involves stripping out pillars to create floor space of 35,000 sq ft – the largest single Grade A office in the city and about the same size as a football pitch.

“It will be a dramatic change when it is finished and the offices will

really make an impression with visitors,” he says. “Large occupiers and national firms may have an office over two floors elsewhere but they will be able to fill a single floor.

If you look at the alternatives this is the best building for them in the region.”

“

I like being able to look at a building and say ‘I did that’ – or at least had some part in creating it.

“

Mike Tapp, director of Green Property, has been involved with acquiring, investing and developing property for Dublin-based Green Property for over 17 years. In that time he has overseen major projects in Ireland and London but never as far north as Liverpool – until now.

Green Property is currently developing the iconic India Buildings on Water Street, a spectacular space in one of the city’s prime locations. Mike readily admits the spectacular building had achieved a state of ‘notoriety’ before the company had taken control of it as part of a 16-property portfolio acquired from AIB. The India Buildings were the group’s first foray into the Liverpool market, but it could not have picked a more daunting challenge.

“All buildings present a challenge but the India Buildings were neglected,” he says. “There were issues to deal with and work had not been done on the buildings that should have been.”

The Grade II-listed building was built between 1924 and 1932 as a home to the Alfred Holt’s Blue Funnel Line and the striking architecture, including a stunning arcade of shops on the bottom floor, makes it one of the most prestigious buildings in the city.

However, it had fallen on hard times under its previous owner as

The India Buildings will not just be about large companies. The plans also include a ‘hub’ of office space for between two and 12 people. “It will attract small start ups who want flexible contracts of around six months. It will become a

real incubator space for around 500 smaller businesses.”

Mike is looking forward to seeing the building completed and filled with tenants. Having been at the company since 1996 he admits the best part of the job is being able to see buildings he has had a hand in developing. “What do I love about the job?” he says. “Seeing a building finished. I like being able to look at a building and say ‘I did that’ – or at least had some part in creating it.”

He admits the success of the India Buildings will determine how much investment Green Property puts in to Liverpool in the future.

“I’m here all the time and we keep an eye out (for potential projects). It is the same with Manchester. However, we don’t have any plans at the moment.

We’re an opportunistic company and we are always looking out for new opportunities. From a management sense the India Buildings was a big commitment but I am in the area every single week at the moment and always have my eyes open for new opportunities.

“There are sectors that have remained strong such as the professional sector and the finance sector in Manchester, where places like Media City offer state-of-the-art space.”

Mike Tapp, director of Green Property Mover & Shaker

MOVE COMMERCIAL 49

50 MOVE COMMERCIAL

Acorn Women Key events

Photos by Peter Kelly

Women celebrate business success A women’s business network celebrated the success of Merseyside’s ‘woman of the year’ at its recent meeting.

Louise Gillespie, who runs costume jewellery business Jessie’s Jewels, took her regional Women In Business accolade along to show the Acorn Professional Services Women’s Business Networking Group, which meets regularly in West Derby.

The meeting also provided the opportunity for business women in the area to share their suggestions, ideas, support and knowledge with other members.

Clair Coburn, who set up Acorn Professional Services just over three years ago and understanding the issues faced by women in business, set up the network with an emphasis on the women setting the agenda for meetings tailored to their needs and concerns.

1

2

5

3

6

4

7

1. Clair Coburn (Acorn Consultancy), with Louise Gillespie (Jessie's Jewels) and her award for winning the Merseyside Woman of the Year 2013. 2. The widely diverse group made for a warm and relaxed atmosphere. 3. Donna Tambourini, Judy Eads & Andrea Tambourini (all of Herbal Life). 4. Clare Hancox (Couture Room Bridal Wear) & Jayne Jeffers (Creases Out Ironing Services). 5. Del Arnall (Byron Restaurant), Louise Ellis-Doyle (Kennan Doyle Solicitors) & Louise Gillespie (Jessie's Jewels). 6. Marie Hassall & Clair Coburn (both of Acorn Consultancy). 7. Following introductions, it was a useful and productive meeting for everyone.

By Natasha Young natasha@movepublishing.co.uk

When Liverpool’s Albert dock was regenerated 25 years ago, it not only established the site as an iconic tourist destination but helped shape the strong reputation of Arrowcroft, the property development and investment firm behind it. Chairman Nicholas Hai talks about what the project meant for the company and how it has continued to succeed.

Landmark creator Formed in 1970 by Leonard Eppel, who had previously ran a property company with his father-in-law, London-based Arrowcroft was active from its early days, developing offices and warehouse units across the country.

This widespread approach to taking on developments saw Arrowcroft establish some strong links in the North West, perfectly positioning the company for when the Albert Dock opportunity came along 12 years after the firm was established.

Nicholas explains: “By the time we were offered the opportunity to look at Albert Dock we were developing or had developed a very large store for Tesco in Chester, which was the biggest Tesco at that time to be built. We were also developing a small shopping centre in Newcastle-Under-Lyme, and we owned an industrial estate near Fazakerley.

“We had a number of projects that were quite close to Liverpool and so we had some good connections with firms like Mason Owen and Sykes Waterhouse as it was in those days. It was our relationship with Sykes 52 MOVE COMMERCIAL

Waterhouse which probably led us to the Albert Dock.”

Nicholas joined Arrowcroft 30 years ago, initially to build the company’s development activities on the dock which, as a collection of large scale derelict buildings was somewhat of a blank canvas. He believes the development of the dock as such a prime tourist attraction has since been crucial in paving the way for major neighbouring developments like the arena and convention centre and Liverpool ONE, although the dock’s impact on the city isn’t something Arrowcroft could have predicted.

“It would be very difficult to put your hand on your heart and say anybody foresaw what it was going to lead to, but what you could foresee is that it had such wonderful scale,” says Nicholas.

“You could see that you could create your own environment with museums, hotels, apartments and offices; a place where truly you could work, live, play and do all those things because it was big enough.

“We didn’t know exactly what the proportions would be but we could

see that you could create a blend of uses that would make it a place in its own right. That’s what the company envisaged but we did it step by step and eventually we got to where we’ve got to today and on the back of that other things were attracted.”

Nicholas, who later took the role of joint chief executive and then sole chief executive and was appointed as chairman earlier this year when the company acquired fellow property business Faircroft, says Arrowcroft attracted attention from councils across the country following its success in Liverpool, and used the dock as a model for potential clients who were looking to develop other ports and towns to the same standard. According to Nicholas though, the company concluded after a number of years that Albert Dock would be “a one off because it is so different and so special.”

While it remains one of Arrowcroft’s most important works and certainly one of the most high profile, the firm has continued to maintain its strength over the years with further key projects. Nicholas hails the development of a major

Oxford shopping centre which then led to the redevelopment of a second shopping centre in the city as one of the company’s success stories, along with the construction of shopping centres in Cheltenham and Paisley, and the modernisation of a retail site it had acquired in Coventry.

A joint venture with North West Water, now United Utilities, also boosted Arrowcroft’s profile in the region as it worked as a partner to deal with the planning and development of the utility provider’s surplus land. The partnership was initially agreed to last for five years but was so successful it continued for around 13, leading to developments including a North West business park which is now home to the likes of the T. J. Morris and Home Bargain headquarters.

In recent years Arrowcroft has pulled back on investing and developing to weather the difficult economic times by turning its attentions to more viable projects, and Nicholas says: “We evolve into doing what we do best which is real estate, but perhaps doing it slightly differently to take in the change in

Nicholas Hai, chairman at Arrowcroft Founding Business

“ ”

…it's a one off because it is so different and so special.

the dynamics of the economy and our industry.”

Explaining Arrowcroft’s current focus, Nicholas adds: “A lot of the banks are sitting on loans to companies that have gone bust or are failing and the lenders are taking control of the property.

We are working with a number of them and we’re currently managing or owning £300-400m worth of properties for the banks, so it may be that the properties are half let or not finished with being built, or whatever the situation was when the bank needed our expertise to extract value out of the property.

“At the moment our priorities are to continue to manage and look after what we’ve got, to increase our business activities with the banks and as the economy recovers, and there are tiny glimpses of that, we are starting to look at tiny opportunities to expand our investment portfolio and possibly some development activities. We’re just coming to the point where if the economy shows signs of improvement we’ll become active again in acquiring new opportunities.”

MOVE COMMERCIAL 53

Opinion The success of any business is dependent on two important physical aspects; the staff and the buildings they work in. We ask four leading industry experts why office space is so important and what businesses should look out for when creating the ideal working environment for their staff.

“Flexible offices ATUL BANSAL co-founder and partner, Sheila Bird Group says…

Considering it is a place in which so many of us spend such a lot of time, there is often very little thought given to layout, décor and flow of the corporate office. We all know what is meant by the ‘traditional office’, it’s decidedly humdrum at best, energy sappingly soul destroying at its worst.

Challenging the notion that it’s not cost effective or is too time consuming to make the effort, we recently launched The Office is Dead campaign with Manchester developer Property Alliance Group, to get companies to really think about their physical environment.

The digital sector has been at the forefront in redefining the way people want to work, with companies such as Google, YouTube and Skype all having offices which have become talked about. Perhaps most famous is smoothie company Innocent’s ‘Fruit Towers’ office, which goes to show you don’t have to be a ‘creative’ to want a more interesting place to work.

More and more companies are realising that ‘place’ has a direct impact on staff moral, retention and recruitment. It also helps to communicate a

54 MOVE COMMERCIAL

company's brand, and best of all a well thought-out ‘space’ has the capacity to make people smile.

Alliance has responded to a much-needed gap in the market with its approach to the refurbishment of 54 Princess Street. Progressive, appropriate and very exciting, the idea is to work with the occupier on creating a space that is right for them, their employees, their customers and guests. Rather than strip out and refurbish with an inoffensive neutral scheme, the concept is to save time and money by starting from scratch with the occupier.

If they want to add something wacky like a duck pond or a slide they can, that's easy. The bigger aim, however, is to help organisations to identify the opportunity that the space can offer them.

Businesses interested in this scheme are those that are already redefining what they want from their office, and recognising that an exciting and creative space can stimulates ideas and interaction. Tenants don’t have to accept the humdrum, they can create their own environment and have control over how it looks and feels.

Landlords who encourage this way of thinking will do more than boost their own coffers, they’ll be contributing to a movement that is gathering pace, to a genuine workplace revolution.”

allow small businesses to take prime locations in landmark city and provides tenants with a transparent, comprehensive lettings package.

“More and more companies are realising that ‘place’ has a direct impact on staff moral, retention and recruitment.

ROBIN ELLIS senior agency surveyor, Downing says…

It’s often said there’s no such thing as a free lunch and that’s especially true when renting office space.

If something seems too good to be true, it probably is. Rent-free periods may seem like an attractive option, but they often come with unexpected baggage, which can mean you end up paying much more than you planned for.

For a business moving offices or renting an office for the first time, ensuring clarity of pricing is essential. Hidden non-optional fees and charges, combined with inflated property management costs, can turn the seemingly straightforward process into a confusing warren of hidden charges and unexpected bills.

In order to counter this, a new way of renting a space for businesses, flexi-offices, which sit between fully serviced offices and the traditional leasing of a suite, has emerged.

Instead of a full serviced offering, flexible offices give tenants real control over their occupational costs – such as telecoms, where many fully serviced offices occupiers are subjected to large mark-ups – and choice over things such as whether furniture is included.

Costs can fluctuate if they’re not capped and tenants can also be caught off-guard by charges for dilapidations and fees for alterations – for a small company which is carefully balancing the books, these hidden costs are often not made clear to occupiers at the outset and can have serious implications.

We know that tenants want newly refurbished, affordable, private offices that they can move into and work from immediately. Yet, in a tough economic climate, the deciding factor for many businesses is assurance over costs and as serviced office leases include rent, rates and other utilities, they have become increasingly popular.

Flexible offices allow small businesses to take prime locations in landmark city locations and provides tenants with a transparent, comprehensive lettings package with a fixed all-inclusive monthly cost, on lease terms that suit them. This gives tenants a cap on all outgoings and total certainty on what they will have to pay for the duration of their lease; an often essential option for start-ups or fast-growing SMEs. Businesses are responding well to our flexi-offices product and our latest round of refurbishments is due to go to market in four to six weeks.

We’re continuing to witness a strong appetite for our offering – due in part to our ongoing commitment to ensuring transparency in pricing.

Opinion

STUART KEPPIE partner, Keppie Massie says…

When you talk about office space in Liverpool you have to look at the nature of the space. In the region of 60% of the long-term office space in Liverpool is not refurbished and this is part of the problem for businesses looking for office space in Liverpool.

For many, office space that is not refurbished or cannot offer the level of facilities and design modern businesses expect becomes unlettable.

The market has mellowed over the past six to eight months and as a result there is only a small supply of quality space in the city centre in particular. Developers who build good quality, new office space will be the winners in the market in future but there is only a small amount of work being done at the moment.

You find in Liverpool the trend is towards smaller requirements of less than 5,000 sq ft and the majority of businesses will not want to pay for things that are seen as the landlord’s area. This means things such as carpeting, air conditioning and other things

that are seen as essentials for a modern business are expected when a tenant is looking for a new property.

Landlords that can offer those things in high quality accommodation can take advantage of that and for these landlords it is clearly a good time for deals to be done across the Liverpool market.

It is important for developers to understand what tenants want. For example, we are heavily involved in the Exchange Station development and while it is competing in a small pool of demand, it also offers quality office space and quality fit-out of the offices to the client’s specification.

While there are very few large transactions on the scale of, say, 20,000 sq ft there are a few big firms who have been trawling the market for years looking for large, quality office space in Liverpool. In that way the city is similar to Manchester. From that point of view it is a good opportunity for occupiers to be offered refurbished or new office space in places such as Exchange Station. Office spaces such as this, and the developments at St Paul’s Square and India Buildings, are at the top end of the market and I would expect those to be picked up quickly because of the quality of the space available.

“This means things such as carpeting, air conditioning and other things that are seen as essentials for a modern business are expected.

“A well designed working environment can play a huge part in the recruitment and retention of staff but it also offers a portal to a company’s corporate identity.

COLIN SINCLAIR director of property marketing, Bruntwood says…

The way in which people interact online and in the workplace is evolving all the time, so it is no surprise that innovative businesses are now placing a greater emphasis on the design and fit-out of their offices.

It’s also an undeniable fact for most of us that we often spend more time in the office than we do at home, so it is only right that businesses look beyond the functionality of their workspace and place an equal emphasis on how the space contributes to the productivity of the office and the happiness of their people.

A well designed working environment can play a huge part in the recruitment and retention of staff but it also offers a portal to a company’s corporate identity. Whether a prospective client is visiting your office for a meeting or a high calibre candidate is being interviewed for a new role in your company, first impressions are everything.

Workspace design is incredibly important and it is

not just about creating a ‘trendy’ office environment for creative people. Offices need to serve the needs of professionals and create a good first impression and this comes down to the design itself.

This is something that we have been acutely aware of at Bruntwood for some time and our latest redevelopment project, the soon to be renamed and re-launched Overseas House, demonstrates this evolution in workspace design, as we respond to the ever changing requirements of potential occupiers.

The refurbishment plans for the former Overseas House, located at the junction of Deansgate and Quay Street in the heart of Manchester’s commercial district, embody Bruntwood’s latest thinking in the evolution of workplace design.

At Bruntwood, we like to think of ourselves as a ‘customer’s property partner’ rather than their landlord and we pride ourselves on creating spaces that help businesses succeed. The innovative new offices at Deansgate & Quay will offer both great value and flexibility in design and fit-out.

We are building the office space of the future.

MOVE COMMERCIAL 55

58 MOVE COMMERCIAL

MOVE COMMERCIAL 59

By Stephen Hurrell stephen@movepublishing.co.uk

It is business rates, not rents that are causing headaches for small businesses and this is only going to get worse, writes Stephen Hurrell.

THE RATE DEBATE Mary Portas

Vince Cable

Companies in the North West are declaring rates, not rents, are the real factor inhibiting growth after the government announced it would not be revaluating business rates until 2017 at the earliest, two years later than originally planned.

Business rates are based on 2008 rent levels and plans to revaluate the rate in 2015 based on 2013 rent levels have been pushed back by the government despite experts complaining business rates are becoming more of a headache than rent for many small businesses in the North West.

A survey by the Federation of Small Businesses found 7% of its members are now paying more in rates than rent and a further 6% say they are around the same level.

Businesses will now have to wait until 2017 to have rateable values reassessed but what does this mean for the commercial property market?

Helen Stewart, retail specialist at commercial property agent Hitchcock Wright and Partners, says rents have ‘bottomed out’ as the market adjusts to tougher economic times but the business rate remains ‘artificially high’ 60 MOVE COMMERCIAL

Beverley McDougal

because it is based on pre-recession valuations taken in 2008. This will lead to fewer businesses willing to move to more expensive premises but could lead to greater incentives from landlords worried about filling empty office space that is still subject to the tax.

She says: “What we could see is landlords who need to fill empty spaces will have to offer larger incentives because business operators will not be able to pay the business rates liability. This could be in the form of landlords offering to pay the difference between the artificially high current rating assessment and the actual true market value until both figures fall back in line with each other either by a rating revaluation or an improvement in market conditions, whichever comes first.

However, Helen understands the situation is ‘not ideal’ because revaluating based on 2013 rates would lead to cuts in government revenue and these would need to be made via cuts elsewhere.

She says: “Until property is reassessed, business rates will not reflect current market conditions.

It is not an ideal scenario because it

Helen Stewart

makes things difficult for our clients whether they be landlords, tenants or owner occupiers, but the cut in revenue that would have clearly been produced from a revaluation in 2015 reflecting lower rental values as at April 2013 would have then impacted on Government spending.”

When the government decided it would not be revaluating the business rate in 2015 it argued the overall value of commercial property across England has fallen since 2008 and the total amount of tax it receives through the business rate would be significantly lower based on 2013 figures.

Lower property value across the country and an increase on the cost of appeals it is receiving means the government would have to increase the business multiplier to cover the shortfall to their coffers and leave businesses with the same hefty business rate bills as before.

RETAIL RATES The answer to the conundrum could lie in more flexible rates for those businesses that are more at risk of rising business rates. The frontline of the debate about

business rates and retail premises can be found on the high street where closed shops and the fall of big-name retailers and smaller businesses is becoming the norm.

Retailers are abandoning the high streets while online retailers thrive because they can avoid the business rate associated with bricks-and-mortar business.

According to some, revaluating the business rate in 2015 would have been a major boost to high streets up and down the UK. Mary Portas, whose ‘Portas Pilot’ towns received government money to save high streets based on her recommendations, is one of the people who have outspokenly supported revaluation of the business rate because of the negative impact it has had on the retail sector. In her Portas Review business rates were cited as one of the key reasons high street stores were closing their doors in Portas Pilot towns, including Stockport and Nelson in the North West.

Business secretary Vince Cable has responded to the concerns of retailers by promising to look into extending small business relief past its current deadline beyond

Business Rates

£££ BUSINESS RENTS

BUSINESS RATES

2014 but this has not been seen as enough by some business figures.

Beverley McDougal at Storeys Edward Symmons, says: “The government seems to be ignoring the Portas Review, which highlighted the level of business rates as a major factor affecting the decline of the high street.”

“Hard pressed businesses will, on average, be paying a cumulative increase of 13.5% more next year than they were paying in 2010.

Business rates remain a major cost and regular reviews of how to mitigate their impact are essential.”

Out of the six areas used for the ‘Portas Pilots’ five have seen rents fall by 14% or more and Philip believes a change to the rate would have been ‘most welcome’ for those areas. However, the commercial property market will also suffer under the postponement.

He says: “It is very disappointing to see the government is apparently blind to the impact of its action to postpone which is likely to have a detrimental effect on many sectors and areas of the property market.”

APPEALING Commercial property owners can appeal against their business rate and the appeals process is designed to offer businesses the chance to have their rateable value reassessed if the owner does not agree with the VOA. The appeals process could benefit businesses in the north. The VOA says a revaluation in 2015 would have led to reduced rates for 300,000 properties and many of these would be found in the north where values have fallen at the fastest rate. However, the process is also a lengthy one with £1.8bn still to be paid back and an estimated 200,000 backlogged appeals slowing it down.

Meanwhile those waiting for a rebate will still be paying the 2008-based business rates.

MOVE COMMERCIAL 61

Expert views Ask the panel

Has the government been successful in cutting red tape in the commercial property market?

The government’s Red Tape Challenge was introduced in July to remove or simplify 1,900 unwanted rules and regulations in the UK, including some affecting the UK commercial property market. In light of the scheme we ask four industry experts if the government is doing enough to cut red tape in the commercial property market.

“While the North West commercial property sector hasn’t yet returned to the dizzy heights of the prerecession years, it is currently experiencing a healthy buoyancy.

But is this buoyancy a result of the government’s response to the ‘Red Tape Challenge’, improved accessibility to lending, landlords’ willingness to agree less restrictive terms, or a combination of all three?

Rules concerning health and safety, and the way that businesses can use assets to raise finance have also been simplified in order to encourage SMEs to flourish. While the government has acted quickly to remove red tape in the sector, moves such as allowing commercial space to be turned into residential use will provide much needed domestic space for professionals.

But will it lead to a shortfall in commercial space, driving small businesses out of the cities and into extinction as a result?

I applaud the government’s determination to cut red tape, but I do question whether the result will provide a quick win, or that vital lasting legacy.”

Lisa Evans, commercial property solicitor at Kirwans

“We are one step removed from the commercial property market but we have clients ranging from property developers, contractors and property management. We are now seeing a removal of red tape, albeit slowly, starting at the construction phase and right through to buying and selling.

Many of our property developing clients are looking to take advantage of the recent relaxation of green belt permissions and others who are currently sitting on existing property or land are starting to make enquires with banks and financial backers.

Although there is initial interest it seems getting the funding agreed to start work is still proving difficult. We understand that certain banks are still unwilling to offer the financial support in Liverpool as they feel the market is already saturated by way of new build properties. Perhaps the only stark

“For barristers, the more red (or pink) tape, the better, as traditionally each piece of work is tied in pink tape.

The greater the amount of red tape that hinders the entrepreneur, the more they need advisers, but red tape stifles business. I am much happier assisting with real business

exceptions seem to be the student residential blocks of flats.”

Alan Tune, associate director, Butterworth Spengler

development and business disputes than contesting failures to abide by pointless regulations. I therefore support the government’s Red Tape Challenge.

The Red Tape Challenge website addresses various topics but commercial property law is conspicuous by its absence. Company law, planning law, housing and construction law are there and modest amendments have been made to such areas as planning applications, including relaxing the red tape on conversion of commercial property to residential use. However, there have been as many, if not more regulations introduced, such as those concerning environmental certification and green leases, to constrain the commercial property developer.”

Nigel Ginniff, head of chancery and commerce at Atlantic Chambers

“Useless red tape is a major inhibitor of economic growth and the government is great at headlines but less so at delivery.

Having said that, in property terms, there has been some activity. The biggest areas are the move to simplify the planning system, localism, and the new permitted development rights. The attempt to make change of use from offices to residential easier, alongside some more minor changes to encourage an overall move towards development, has in general had a positive impact. But beware the law of unintended consequences, which is often ignored by politicians.

On the investment front, there have been attempts to relax some of the technical rules around operation of REITS (Real Estate Investment Trusts) but in other areas, such as sustainability, the regulations continue to come.

Many would argue these are helping at a strategic level to change attitudes, behaviour and in turn improve energy efficiency, however in reality they are creating additional pressures in an already challenging market.”

Mark Rawstron, senior director, investment, GVA MOVE COMMERCIAL 63