Regeneration partnership bucks recessionary trend
REGENERATION partnership PxP West Midlands has bucked the recessionary trend by enjoying a highly successful past 12 months, with its investment portfolio achieving a 92% occupancy rate.
This has been achieved despite the portfolio growing in size to over 750,000 sq ft.
PxP West Midlands, a joint venture partnership between Advantage West Midlands (AWM) and developer Langtree, is actively managing its lettable space to provide customers with flexible options, suitable for start-up businesses through to well-established organisations.
In addition the public/private partnership has invested heavily in improvement works, such as landscaping and new signage across its 16 investment sites, which are located throughout the AWM region.
Mark Stapleton, managing director of PxP West Midlands said: “We all know how hard the recession has hit the region and there is naturally a very risk adverse approach to renting commercial space.
“However, the number of new start-up enterprises across the region this year has shown no signs of dwindling. Some of our new customers are entrepreneurs who have joined the e-bay revolution, started a business from home and been successful enough to outgrow their spare room and seek to rent a commercial unit.”
While most private sector landlords offer only traditional lease terms that tie in occupiers for long periods of time, PxP West Midlands’ public/private status means that it can work very differently.
It responds to a gap in the market by providing property solutions that suit the current occupier profile.
Across its 16 sites the partnership is providing commercial space for small to medium enterprises at cost effective rates and flexible terms.
PxP said its flexible lettings policy had enabled existing customers to take expansion space in order to fulfil a large order over a short-term period.
It said the high occupancy rate across its portfolio was due to the vast majority of customers continually renewing their leases.
One such company, Fragile Planet, established in 2006, initially took a start-up unit of 400 sq ft at Radford’s Field Industrial Estate in Oswestry.
The niche business, which had originally started as a hobby for managing director Tony Gray, supplies bee keeping equipment, with most sales being taken through its website.
As a result of turnover tripling in size year on year, Fragile Planet moved to a significantly larger unit on the same business park in 2008 and has recently taken a lease on the neighbouring unit, so it is now trading from 2,500 sq ft of space.
Tony Gray, managing director of Fragile Planet, said: “Growing the business has been a hassle-free process in terms of having the right accommodation.
“From establishing the business at Radford’s Field from a 400 sq ft starter unit, to moving to a much larger unit, then being in a position to expand again by also taking on the neighbouring unit, PxP West Midlands has always been very helpful and supportive.”
In addition to the expansion by Fragile Planet, a series of additional lettings have recently been secured at Radford’s Field Industrial Estate in Oswestry.
At High Carr Business Park in Newcastle-under-Lyme, four new lettings totalling over 46,000 sq ft have ensured the scheme occupancy rate is now over 95%.
PxP West Midlands’ business park portfolio covers the entire West Midlands region, including locations such as Ewyas Harold and Peterchurch, both close to Hereford.
The business park portfolio also includes Cobnash Industrial Estate in Kingsland, near Leominster, Lower Teme Business Park in Tenbury Wells, Ludlow Business Park, Craven Arms Business Park in Craven Arms, and The Mynd Industrial Estate in Church Stretton.
Additional sites include Netherton Workshops in Highley and Fenton Industrial Estate, close to Stoke-on-Trent.
