Lucrative developments on the horizon for Henry Boot

AS activity in the region begins to pick up, Henry Boot said it is confident that profitable development is achievable.

A number of surveys have recently been carried out stating there is a lack of Grade A office space available in Yorkshire, with Colliers International suggesting that the Leeds office market has heralded the strongest levels of Grade A take-up and absorption since before the credit crunch.

Therefore, according to Henry Boot, as businesses expand, this presents developers like itself with opportunities as there becomes a need to create the available office space companies require.

The South Yorkshire-based construction and development group reported a strong set of half year results last week.

Finance director John Sutcliffe said: “There is significantly more business activity in our region and that’s when companies look to expand, but there’s not anywhere to expand to at the moment, so that’s when the property developers are in a better position.

“We’ve a lot of schemes on the way and a lot coming to fruition. And there are development opportunities for us.”

Henry Boot said its property development activities continue to gain momentum with schemes underway on the conversion of the listed County Courthouse in Manchester city centre, where only one 6,000 sq ft restaurant/retail unit remains vacant.

In Chesterfield, on a site held in a joint arrangement with Lloyds Bank, Henry Boot said it is close to agreeing terms with several occupiers and is targeting a planning application late in 2013.

Moving into 2014, the firm said it hopes to secure a mixed use planning permission for 56 acres of land in Skipton, where it has already exchanged contracts with Sainsbury’s for a large foodstore and agreed terms for the development of part of the employment space on the site.

Mr Sutcliffe said: “The property market across the UK is not what it is in London but, with care, profitable development is achievable nationally and we are looking to the future very positively. When London peaks, businesses start moving out and that’s when we in the provinces start to see movements coming down. We are getting to that stage now.”

An increase in activity in the commercial, education and leisure sectors has seen successes for Henry Boot with Sheffield City Council for the refurbishment of the Moorfoot Building, Manor Development Company for provision of managed workspace in Sheffield, and with Sheffield Hallam University for the construction of a sports centre and playing fields, and the refurbishment of the Collegiate Learning Centre.

Henry Boot is also currently in talks with the market place in regards to the 270,000 sq ft former Terry’s Chocolate Factory which was acquired in March. It said it will probably take the rest of this year before development plans are decided.

Mr Sutcliffe said: “It’s a fascinating project to work on. It has been an eyesore for too long. We have secured a revised planning approval for a range of uses for the listed factory, office buildings and adjacent development land and are now progressing the initial interest received.”

The 125-year old family firm has broadened its divisions further with Stonebridge, a residential property development specialist, which is a subsidiary of the Sheffield firm. It also runs Hallam Land Management, Henry Boot Constructions, Banner Plant and operates the A69 road between Newcastle and Carlisle.

“Where one part of the business has served us well when others haven’t, that has really helped us. We’ve been able to get good revenue elsewhere,” Mr Sutcliffe said.

Chairman John Brown added: “Economic recovery from the recession is muted and the slow pace of recovery seems set to continue. We have been opportunistically acquiring good development sites over several years and hope that the stable growth pattern will allow us to capitalise on these over the coming years.

“The markets we operate in remained challenging during the period under review; however, there are more positive signs of an improvement in the trading environment.”