On the ground at MIPIM: City regions fly the flag for Yorkshire

“THE Leeds City Region will be fundamentally handicapped” compared to other Northern cities if devolution for the region stalls any further, said Tom Waring of Quod Planning as MIPIM 2016 in Cannes drew to a close.

Property leaders from across the country attended MIPIM 2016 in Cannes last week, and delegates from the Yorkshire region have provided special reports on the issues raised at the biggest property convention in the world.

A Leeds City Region delegation, the largest to date, included leaders from Shulmans, Addleshaw Goddard and Quod Planning, as well as Bilfinger GVA. A programme filled with 18 events covering three days, which Ben Hall, regional senior director at Bilfinger GVA said “only accounts for a third of my diary.”

During the week, major tenants were announced by CEG for the Kirkstall Forge mixed-use development , as well as No 6. Wellington Place announcing it was fully let .

Mr Hall said: “The panel session de jour of day one was certainly the Northern Powerhouse event featuring Roger Marsh OBE, alongside Sir Howard Bernstein, Ged Fitzgerald, Sir Nigel Knowles and Pat Ritchie; during which he discussed both how we should talking about ‘Fix it’ not ‘Brexit’ and reiterated the call to the Chancellor which has made headlines with a open letter from business and university leaders.”

Not everything went to plan, with the fabled Riviera weather failing towards the second day in Cannes.

“With rain and wind making us feel very much at home; the confidence and momentum surrounding Leeds City Region was intoxicating. Comfortably one of the busiest stands, with people looking to Bradford, Wakefield and the wider City Region in addition to the development sites in Leeds,” said Mr Hall.

Anna Heaton, partner at Addleshaw Goddard said that the vast range of delegates from politicians to developers and investors were “a great reflection of the confidence and breadth of the real estate sector at the moment.”

“For me,” she said, “the sheer number of announcements from the Leeds City Region delegation has been the most impressive development.”

She continued: “I have seen a lot of new interest in regional investment opportunities occupier demand means that there is more certainty of securing a well performing asset.

“The sector is certainly optimistic, even through the MIPIM rain this year, although cautiously so in particular in the context of Brexit.”

Amanda Beresford, head of planning at Shulmans also said that the EU referendum was very much at the forefront of people’s minds. She said: ” There are concerns that deals may be on hold pending the decision, although this is thought to be having more impact in the South with our region being less sensitive.”

She had, however, noticed a surge in investor interest outside the overheating London market. With Sky and aql investing in Leeds, she said, people were very interested in learning how to capitalise on the growth of the city’s digital economy.

Trends being showcased included smart cities, as well as HS2 and HS3, which the Chancellor announced would be funded as part of a £300m investment last week.

In addition, the South Bank  mixed-use developments reached a milestone, with an agreement signed with London & Continental Railways for the development of HS2 Leeds station.

She said: “Referenced as the largest redevelopment opportunity in Europe, there is a need to be transformational, aspirational and on the global stage. Tom Riordon CE of LCC called for ideas to ensure the opportunity is maximised.”

Tim Waring, director at Quod Planning said that the industry was “out in force at MIPIM” and that there was “a clear sense that the region is attracting a lot of interest.”

He said: “There is a strong appetite to see things happen and all of the city regions making up the Northern Powerhouse were demonstrating they were ‘open for business’ and there was healthy competition between the city regions to attract investors to their respective regions.”

He said that collaboration was needed to improve connectivity between Northern cities, and it was “essential” if the Northern Powerhouse was to become a reality “and not simply rhetoric.”

Mr Waring said that standout deals included CEG’s commitment to the delivery of Kirkstall Forge, but also the upcoming Victoria Gate, due to be completed at the end of the year.

He said: “There is a strong interest in the Build-to-Rent market in the central areas of our core cities and with the Government’s further support to this sector

“In the Budget, we are likely to see this fledgling sector coming through in Leeds this year. “

He said that the delivery of housing was a key concern “but the planning system is still acting in some respects as a blockage and that “fundamental changes are needed” to help the delivery of housing gather momentum.

Mr Waring continued: “The various initiatives in the Budget and the report on the requisite improvements to the planning system released by the Government will help but Councils cannot shirk their responsibility on being facilitators of housing delivery, and too many still are through political inertia.”

He said: “The optimism in the local region was being championed through clear messaging that the Leeds City Region was welcoming of new investment in property sector as part of the platform for meeting the region’s social and economic needs.

“However, to maintain that optimism (and secure the investment) the current devolution uncertainty needs to be resolved, otherwise the Leeds City Region will be fundamentally handicapped when compared to other Northern city regions who are well advanced with devolution.”

Sheffield City Region spent the three days of MIPIM promoting the major developments set for the region, which included the announcement of Sheffield’s first build-to-rent, or PRS development.

The delegation consisted of over 45 property leaders aiming to encourage investment and enabling development, with a key topic of conversation being the region’s devolution deal.

Developments including Barnsley Town Centre, the Waverley residential development, and the Rossington Hall Golf Course, Doncaster, which being supported by European Tour Properties, were showcased by the delegates.

Nigel Brewster, vice-chairman Sheffield City Region LEP said:”What’s important is the freedoms and flexibilities you get in terms of devolution, which allows us to make a step change in achieving our aims in terms of our strategic economic plan, around transforming our city region economy.

“We are keen to recognise Sheffield City Region’s unique proposition as part of the Northern Powerhouse and as part of the UK and international economies.”

Sir Nigel Knowles, chairman, Sheffield City Region LEP added:”Connectivity with the other parts of the northern powerhouse regions is important, there is a lot to do but we are more than capable of doing it.”