Opportunities abound as Leeds City Region sets capital pace

INVESTORS have a “renewed belief” in the Leeds City Region’s occupational market as developers look to accelerate schemes as signs of an economic recovery gather pace, according to commercial property advisor GVA.

This was one of the key messages given to senior figures who attended a seminar held in London, focused on opportunities within the Leeds City Region.

With investment of almost £1.5bn being made available across the city region, there has never been a better time to take advantage of its “occupational story”, the audience was told.

Organised by GVA and supported by inward investment organisation Leeds and Partners, the Invest in Leeds seminar brought the Leeds City Region’s prime investment opportunities to the City of London.

More than 100 London-based investors from banking institutions and fund managers joined business leaders from across the Leeds City Region at the event, which showcased the UK’s largest economy and population centre outside the capital.

Revealing the findings of GVA’s latest research report, Invest in Leeds City Region, Ben Hall, investment director at GVA in Yorkshire, admitted that attracting inward investment into the Leeds City Region for both standing investment and property development had been difficult over recent years, but he said the tide was turning and with Grade A office supply in key centres such as Leeds at a premium, he said it is not completely out of the question that speculative development could make a return.

Mr Hall said: “One of most crucial things is that investors have renewed belief in the occupational market and the occupational story in the Leeds City Region is robust.

“A number of recent deals for prominent office buildings in Leeds city centre, including transactions for Bond Court, Toronto Square and Chancellor Court, give an indication of this returning investor confidence.”

Mr Hall pointed to one of the report’s key findings that rental values across the industrial, office and retail markets across the Leeds City Region were expected to return to positive territory in 2013 and continue to grow afterwards as a sign that occupier demand was set to strengthen further.

He said growth of 0.7% is expected this year, accelerating to 1.2% next year and 2.3% by 2017.

“From the end of 2013 to the end of 2017 we expect the rate of growth to average 1.8% per annum,” Mr Hall said.

“The message to take away is that now is a good time to invest in the Leeds City Region.”

Chaired by Andrew Carter of Centre for Cities, the audience also heard from a panel of representatives from the Leeds City Region, made up of Roger Marsh, chairman of the Leeds City Region Local Enterprise Partnership; Alan Gay, chief financial officer to the Leeds City Region and LEP; Barra Mac Ruairi, strategic director at Bradford Council; Stuart Howie, of PwC; and Dai Powell, director at GVA.

The panel discussed how collaboration between towns and cities, as well as businesses and universities, was a key factor in unlocking value and driving economic growth.

The audience was also told how sectors including health and life sciences, professional and financial services, manufacturing, food and drink, and creating a low carbon economy were all priorities to help create economic growth.

Mr Marsh explained how funding opportunities were creating the conditions for development.

For example, a £1bn fund to improve public transport facilities has been made available, plus the creation of a £400m Investment Fund for infrastructure projects.

“We are upping the game and looking to achieve something transformational,” he said.

“We’re talking about re-industrialising parts of the city region in a way that makes a difference and building on our strengths, much as the Victorians did in different parts of the country.

“The Leeds City Region has been resilient (through the recession). It’s a place of talent and skill and we are beginning to deliver.”

Mr Gay said local authorities in the city region had “an appetite” for taking risk and was looking to collaborate with investors and the private sector to help drive development.

Mr Mac Ruairi added: “There’s been a tremendous bravery and determination from local authorities to deliver for people of Leeds and the wider city region.”

Mr Howie said: “There’s a real appetite and demonstration that groups across the Leeds City Region are prepared to create opportunities for jobs growth and work together to find ways to get those deals across the line.”

Mr Powell concluded: “Why Leeds and why the Leeds City Region? Well, there are many positive signs.

“The Leeds first direct arena and Trinity Leeds shopping centre have been completed and are welcome additions to the Leeds skyline and the city region’s economy.

“There are a number of exciting developments coming forward such as KPMG’s One Sovereign Square office development in Leeds, Merchant Gate in Wakefield and Westfield in Bradford. Work on Hammerson’s Victoria Gate retail development in Leeds is also set to begin in 2014.”

Speaking after the event, Lurene Joseph, chief executive of Leeds and Partners, said: “The recent surge in investment and development is enabling the Leeds City Region to step forward in a catalytic way.

“We were delighted by the interest shown from the London investor community and the positive indicators of confidence highlighted by office take up, which is out-performing other key cities.

“Active engagement with the London investor market demonstrates the way in which the Leeds City Region is forging ahead with a new approach to deliver investment, to increase jobs and skills.”