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ORCHARD

GETS THE

Cornerhouse

Nottingham has also been a

more buoyant market in the

past few years with a flow of

investment deals.

One of the largest of these is

Orchard Street paying Land Securities

£65 million for the 20,903 sq.metres

(225,000

sq.ft.

) The Cornerhouse

leisure scheme.

The facility has a variety of bars

and restaurants together with a casino

and a night club within walking

distance of the universities and city

centre. Barney Rowe of Orchard Street

said: “The Cornerhouse is a strong

leisure asset with an impressive line

up of tenants located in the city

centre that is underpinned by

strong demographic trends such

as urbanisation and a flourishing

university population.”

More

MANUFACTURING

PLEASE

A new 4,645 sq.metres

(50,000

sq.ft

.) manufacturing

facility at Hollymoor Point,

Rubery, has been completed by

Hortons’ Estate Developments

and Trebor Developments.

The facility has been developed

on behalf of Aquapak Polymers, a

UK-based sustainable plastics

manufacturer. Up to 50 direct jobs

and 25 indirect jobs are expected to

be created during the first three to

four years as the company scales

up production.

Bob Tattrie, managing partner at

Trebor Developments, said: “It is great

to see this building completed on time.

With the other phased developments

that have been undertaken at Hollymoor

Point, the overall development site

has now created an extremely

successful industrial park.”

Commercial Property Register

February - April 2017

www.compropregister.com

6

Apart from the region’s significant

manufacturing capacity, the

West Midlands is a key location

for the fast expanding logistics

industry.

According to JLL, last year it saw

the second highest annual take

up of logistics space in the past

10 years but new space is setting

an absolute record. Total logistics

space let was 2.14 million

sq.metres (23.9 million

sq.ft

.),

up 38% on 2015.

JLL’s Richard Evans said: “The

retail sector provided the most

active source of demand last year

and accounted for 58% of the

Grade A space. Demand remains

high for large buildings, indicating

another strong year.”

Cushman & Wakefield noted the

buoyancy of the West Midlands

market for new space and the

letting of 557,400 sq.metres

(6 million

sq.ft

.) in the first nine

months of 2016 led by Jaguar Land

Rover (JLR), the automobile sector

has been the most active leaser of

new space.

Simon Lloyd of C&W said: “The

UK is at the forefront of the growth

in e-commerce which is accounting

for an ever increasing amount of

sales.” An example of such deals

was the letting of space at M&G’s

Birmingham Gateway to WE Deane,

a freight forwarder, capping a strong

recent performance there. The deal

was handled by C&W and Savills.

Of course, the response among

developers has been to build new

space, such as Barwood and First

Industrial at Walsall Road, just north

of Birmingham city centre. This is a

9,297 sq.metres (100,075

sq.ft

.)

warehouse named Birmingham 100.

Barwood’s Edward Henson said:

“There is very little supply of newly

constructed warehouses, strong

demand for such space and a large

workforce catchment.”

One of the largest players in the

industrial market, Tritax Big Box

REIT, has been particularly active.

Typical of its deals is the funding of

two warehouses totalling close to

92,900 sq.metres (1 million

sq.ft

.)

at Warth Park, Raunds and pre let

to Howdens. The developer will

be Roxhill.

AT Prologis Park, Fradley,

Staffordshire, Tritax has forward

funded 52,211 sq.metres

(562,000

sq.ft

.) which is pre let

to Screwfix and developed by

Winvic Construction. The other

major Tritax deals in the Midlands

saw it pay £115.5 million for two

industrial facilities, one at Birch

Coppice and let to Euro Car Parts

and the other, at Warth Park, let

to Whirlpool.

SETTING

records

NEWS

Although HSBC is considering moving 1,000 employees out of

London to Europe because of Brexit, it is still seeking space in

Birmingham for a similar number of people.

Ahead of this deal, its investment arm (HSBC Alternative Investments),

is negotiating to buy the five buildings in Brindleyplace for £260 million from

Lone Star and Hines Global REIT. If the deal goes through it would be a major

boost for Birmingham ahead of the arrival of HS2.

This should be viewed against the background of a resilient Midlands

commercial property market with the RICS survey showing demand

increasing, led by industrial property and the arrival of increased foreign

investment on the back of a weaker pound.

HSBC

buys

Birmingham 100

Brindleyplace, Birmingham