Property round-up: Millfield Estates; Urban Splash; Network Space; HomeLet Rental Index; Sefton Council; HPBC; Equans
Bolton-based commercial property investors, Millfield Estates, has finalised the sale of Kingfisher Court, Northwich, for a figure in excess of £1.4m
The development provides eight industrial warehouse units totalling 12,191 sq ft, supported by an extensive communal service yard and generous parking facilities on a site of 0.89 acres. The asset is fully occupied and income producing, and was transacted at 5.54% net initial yield and a capital value of £115.00 sq ft, highlighting the strength of the multi-let sector and the sub-£5m asset sizes.
Prominently positioned 1.5 miles east of Northwich town centre, and six miles west of junction 19 of the M6 motorway, Kingfisher Court received immediate interest due to attractive fundamentals that appealed to a wide range of investors, given its location and strong motorway connectivity.
Following its sale, Millfield Estates plans to re-invest funds from the sale into expanding its industrial and warehouse portfolio. Millfield Estates retains a UK-wide portfolio in locations including London, Edinburgh, Liverpool and Bolton.
Paul Dobson, Millfield Estates property director, said: “Kingfisher Court has been a part of our varied property portfolio for 15 years, but as we look ahead, we plan to reinvest the proceeds from the sale into future opportunities, expanding our property portfolio across the UK, staying committed to our growth and meeting the evolving needs of our clients and tenants.”
Wildbrook acted for Millfield Estates on the investment sale. Neil Higson, director at Wildbrook, said: “With immediate interest in this sale, it was important to pitch the pricing at a level that would be achievable, allowing for competitive bidding.
“We marketed the sale in a way to induce 21 inspections in total and go to multiple bidding rounds. The asset has all the fundamentals to appeal to a wide range of investors, given the location (lack of competition) and vicinity to the town centre and motorway connectivity.
“There is an industrial vacancy rate of just 3.9% in Northwich and with rents rising by 8.4% in the past 12 months. Rental growth is achievable given some of the historic leases and how the market has moved during the past 24 to 36 months for starter units between 1,000 sq ft to 2,500 sq ft.”
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Manchester-based regeneration company, Urban Splash, has announced 9,000 sq ft of new deals in October, including a transaction that will bring iconic surf brand Rip Curl into its portfolio.
Kathmandu, part of the iconic Rip Curl portfolio, has confirmed it will move into a 1,401 sq ft unit at the Boat Shed in Salford Quays, space which will be used for a new showroom. A second deal at the Boat Shed also sees Ascent Global Shipping move into the building on a deal on 415 sq ft of space.
The announcements dovetail with the news that Manchester-based surveyor, Edwards & Co, has been appointed at Boat Shed, joining incumbent agent Canning O’Neill to market the riverside building’s remaining space. Oliver Woodall of Edwards & Co said: “The building is a fine example of what modern occupiers want, with refurbished, well-designed offices, supplemented by collaboration areas, gardens and riverside views. We’re excited to move forward in securing deals on the remaining spaces here, working alongside the stellar team of Urban Splash and Canning O’Neill as we find more great brands to join the unique commercial ecosystem in this part of Salford.”
In a busy October, Urban Splash has also announced a further 7,000 sq ft of deals including in Liverpool, where MHR Dental has completed a deal on 2,313 sq ft of space, while existing customer One Agency has completed a renewal deal on its 1,842 sq ft workspace at Schoolhouse in Trafford Park. Further renewals on 2,416 sq ft of space were completed at Royal William Yard in Plymouth.
Urban Splash commercial lettings manager Niall Ingham said: “These lettings are testament to the appetite for well-designed spaces that are available on flexible terms and meet the need of modern occupiers. We’re thrilled to complete each of the deals, welcoming a range of businesses into our Urban Splash portfolio, from start-ups, to international brands like Rip Curl, to extending our relationship with longstanding, existing customers who continue to call Urban Splash buildings their home.”
Urban Splash has seen strong activity in its commercial portfolio this year, completing 18,000 sq ft of deals in Q3 before adding these new deals in October. The news comes following a busy period for Urban Splash – a time in which it has celebrated its 30th anniversary, formed two new joint venture partnerships with fellow-Manchester developer Glenbrook, and Grosvenor, and been announced as preferred bidder on the Cole Brothers building in Sheffield.
Its pipeline for 2024 and beyond includes a further phase at Park Hill in Sheffield, Campbell Park Northside in Milton Keynes – its first South East scheme – and new homes and workspaces in Swansea, Windermere and Manchester. Urban Splash is also on site at Port Loop in Birmingham creating a new phase of homes.
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Network Space Broadheath
Network Space has agreed deals on two further units at Broadheath Networkcentre in Altrincham.
Worldwide event hire company, Options Greathire, is taking 36,000 sq ft across two units at the Atlantic Street site, where some 206,000 sq ft of high quality workspace is being delivered across 25 units.
Headquartered in France, with locations across Europe, Options Greathire has recently acquired a North West company and is looking to establish a northern presence at Broadheath Networkcentre, to build on their existing UK facility close to Heathrow.
Options Greathire will join XPand Logistics and Maersk at the site, meaning more than 50% of the site is now pre-let.
Bansco is delivering the development on behalf of Network Space, with the first unit already complete and the remaining development at the 11.5 acre former Cartwright headquarters due to finish later this year.
Simon Eaton, senior development manager at Network Space, said: “These latest deals continue our trend in attracting high quality occupiers to the site and it is fantastic to have let over 50% of the total floorspace ahead of practical completion.
“On top of the secured lettings, we are still receiving a high level of enquiries in the remaining units which is testament to the scheme’s quality, sustainability credentials and prime location.”
The regeneration of this brownfield site will see a mix of high quality refurbished space, alongside new builds, creating a modern, multi-let industrial destination. With remaining units available from 2,100 sq ft to 17,000 sq ft, the development has the capacity to create upwards of 400 jobs and provide much needed speculative workspace in the region.
An environmentally friendly scheme, targeting EPC A ratings and BREEAM Very Good, there has also been a significant reduction in embodied carbon through the construction process as the steel and concrete structures on the site are being reused and recycled. In operation initiatives include renewable energy provision through solar panels and electric vehicle charging points across the entire scheme.
The scheme is being supported with a £23.25m loan from Trafford Council and with more than 95% of the project budget being invested in a supply chain within 45 miles of the site, a significant number of local training and employment opportunities have been created.
Jonathan Williams, at Savills, and Will Kenyon at B8, have been appointed as letting agents for Broadheath Networkcentre by Network Space.
Jonathan Williams, associate director at Savills, said: “We are continuing to see a high level of demand and low level of supply in the North West for industrial and logistics despite the obvious headwinds the market is facing. Being 50% pre let before completion is a fantastic result for the scheme which highlights the quality of the space on offer and the strength of the location. Broadheath Networkcentre will be a much needed supply boost of SME space for the south Manchester market.”
The wider professional team includes Walker Sime, project management and quantity surveying and AEW architects.
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The HomeLet Rental Index, which is released monthly, paints a bleak picture of the cost-of-living crisis as it unveils that in October, monthly rent prices rose once again across nearly every region in the UK, reaching record highs.
It said North West renters can now expect to pay £1016pcm. This is up 0.99% from last month alone, and 10.68% compared with this time last year.
As rising prices fail to match wage increases for many, renters in the North West are now forking out 30.2% of their wages in rent, which has risen from last year by 1.5%. Comparatively, In London, people can expect to pay nearly a quarter (38.8%) of their wages in rental costs.
As Rishi Sunak prepares for the autumn budget later this month and faces pressure to address both the housing and cost of living crisis, HomeLet’s figures give a stark view into the reality of the situation in the North West and the wider UK.
Andy Halstead, HomeLet & Let Alliance chief executive, said: “Sadly, we can report that rental prices in the North West once again reached an all-time high this month, and it’s totally unsustainable.
“There have been a few news articles and comments from the Government recently about how the cost-of-living situation is starting to look more positive and inflation is slowing. However, our data shows that rents still rose in most regions across the country between September and October 2023.
“It really feels like there’s no end to this madness, we’ve been watching rent prices creep up every month and know this is an unsustainable future for both tenants and landlords alike. Renters are being priced out, and the homeowners are left with nobody to fill their vacancies. We need to see an end to these soaring prices, and fast, before we have a full rental crisis on our hands in the UK.”
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Sefton Council’s Cabinet has approved the go-ahead to acquiring 18 new apartments that will be the borough’s first new council housing in since 2006.
Sandway Homes, the authority-owned housing development company, is scheduled to start work on the Buckley Hill Lane, which will include the mix of one- and two-bedroom council homes, in early November.
After last week’s meeting, Cllr Trish Hardy, Sefton Council’s cabinet member for communities and housing, said: “This is an amazing realisation of work that has been going on for a long time to create the type of housing Sefton has needed for a long time. Today’s decision makes clear that we are on the side of local people in recognising the need for secure, quality accommodation and providing those much-needed homes.”
At their meeting, Sefton Council’s cabinet also agreed a £2.2m Supplementary Capital Estimate funded through Section 106 housing capital receipts, historic right to buy sharing agreement receipts and Homes England grant funding. Rental from the scheme will be reinvested into Sefton Council’s Housing Programme.
Energy-efficient design with high thermal efficiency values to reduce heat loss, high efficiency boilers and heating systems are among the measures that will help reduce the Buckley Hill Lane site’s carbon footprint and offset its impact on climate change.
Cllr Hardy added: “Today confirms that Sefton Council’s decision to establish Sandway Homes in 2018 as part of our commitment to creating the new, high quality homes was right. Today marks the start of our drive to re-establish a strong council housing stock in Sefton.”
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St William’s church site visit
A vacant church in Wigan will be converted into 10 two- and three-bed houses/apartments after the Housing People, Building Communities (HPBC) charity was granted planning permission.
Work on St William’s church and presbytery, and adjacent land in Ince, has now started, in collaboration with Prima Housing Group. The Presbytery will be converted into three-bed, two-bed and one-bed apartments and the grounds behind will accommodate 14 three-bed houses. In total 27 new affordable homes will be built.
The homes will be completed by February 2025.
The initiative to develop St William’s – an early 20th-century red brick lancet Gothic style church built in 1911 – will help cut the cost of home ownership in the town by up to £10,000 by offering buyers, called home partners, the opportunity to work on the development. It is the first time homebuyers in Wigan will be able to use their own ‘sweat equity’ to contribute towards the deposit they need to purchase their homes.
The site, on Ince Green Lane, has lain empty since 2017. The charity was approached by the Archdiocese of Liverpool which wanted to retain the church and presbytery and repurpose it to provide affordable housing for local people using HPBC’s unique model.
The start of work on the scheme was marked with a visit and tour by special guests, including council leader Cllr David Molyneux, who said: “Developments like this make huge changes to people’s lives. This unique ‘sweat equity’ model allows people to get on the property ladder, giving people hope and choices and a ready-made community when they move in which is an incredibly important aspect of the project.”
HPBC chief executive, Liza Parry, said: ”The development is already taking shape and we were delighted to show our guests, from partners, politicians and supporters to funders and home partners, what progress has already been made.
“The launch of St William’s is a milestone for Wigan with a development which we hope will make a real difference to local people and a blueprint for the future. We are now actively seeking Home Partners who want to call the church their home.”
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Ribbledale Primary School
Equans has completed work on the modular, target net zero-carbon Ribblesdale Primary Education Provision Site in the heart of the Ribble Valley.
The school, which will provide much needed educational accommodation for a growing school and local community, was built using modular construction methods.
Equans has installed a ground source heat pump, supplying the school with a sustainable source of heat and hot water. Solar PV has been installed on the roof, generating power for the school. This, along with the modular build processed, means the school is designed to be net zero in operation.
Ribblesdale Primary, which is Lancashire’s first all-through school for children aged four to 16, is fully equipped for the new cohort of children and beyond including features such as a double sized outdoor play area, underfloor heating and a bespoke library area. There is also a multi-use games area, football pitch, running track and woodland area located on-site for students to benefit from.
The school building was lowered to gain material for a new football pitch, multi-use games area and general play area. This meant no material went to waste, and none was imported, saving resource and energy. There are also two water attenuation tanks on site, reducing flood risk.
Alyson Seddon, construction director at Equans, said: “It’s great that at Equans, we’ve been able to utilise our expertise in low-carbon construction to provide a sustainable school for generations to come.”
County Cllr Jayne Rear, Lancashire County Council’s cabinet member for education and skills, said: “Ribblesdale School primary provision will deliver future school places to a growing community in the Ribble Valley. The building was built within budget and on time for the September 2023 pupil intake and delivered in line with our net zero aspirations. It has also been designed in such a way that if and when required, the school can be easily expanded to meet future demands in the area.”
