Global lubricant supplier lets 154,452 sq ft unit in Kettering
Prologis UK, an owner, developer and investor of logistics property, has leased DC4 Prologis Park Kettering to Mannol, a global lubricant supplier. The 10-year lease will support Mannol’s expanding UK operations.
Located in the prime logistics ‘Golden Triangle’, the 154,452 sq ft unit will provide the space required for Mannol’s future growth ambitions, with transport links to the M1, M6 and M11, as well as connections to coastal ports and rail hubs, for national and international distribution. Mannol will join household brands including CEVA, Argos and Specsavers at the Park.
Jevgenij Lyzko, Chief Executive Officer at Mannol, said: “As we continue to grow, we were in need of a larger unit to cater for our expanding operations. We chose Prologis UK as our trusted partner to provide this. DC4 Kettering offers a large, modern facility and has the benefit of great transport links to our distribution network and an array of welfare amenities for our workforce.”
In line with Prologis UK’s sustainability credentials, DC4 underwent a full refurbishment, including both the main warehouse and the office block, bringing the unit to an EPC A rating. The all-electric unit is fitted with warehouse LED lighting, sprinklers and racking allowing for immediate occupation.
Tom Price, Leasing Director at Prologis UK, said: “DC4, and Prologis Park Kettering, was the perfect fit for Mannol’s expanding operations. Originally built in 2007, we upgraded DC4 to meet the same high-quality standards of our current generation buildings in order to match customer expectations. The refurbishment programme also allowed for additional future proofing, for example the option to add in additional EV charging points as needed.
“We look forward to welcoming Mannol and watching the business grow and take advantage of all that the location offers.”
ILPP and Cushman and Wakefield acted for Prologis UK. Louch Shacklock acted for Mannol.
BRUSH Group opens multi-million-pound transformer test cell facility in Loughborough
Energy engineering solutions provider BRUSH Group has opened a multi-million-pound world-class transformer test cell facility at its transformer manufacturing facility in Loughborough.
The facility, housed in a huge former workshop at the firm’s Falcon Works in the Leicestershire town, will put newly built power transformers through their paces before being shipped out to BRUSH customers.
Key customer representatives joined BRUSH employees for the official opening of the test cell which features a high-voltage acoustic test area with 12-metre-high doors. From this new testing facility, BRUSH has the capability to conduct a comprehensive range of tests on its transformers.
With dedicated storage for up to four of BRUSH’s biggest transformer units, the facility allows the company to significantly increase its production capacity to meet the UK’s fast-growing demand for power transformers as the country gears up for decarbonisation.
Nicolas Pitrat, CEO of BRUSH Group, said: “We’re seeing rapidly increasing demand for power transformers from all segments of our customer base in the UK, from power networks operators and renewable energy producers to public infrastructure providers and commercial developers.
“Opening of our new world-class test cell here in Loughborough allows us to keep pace with that demand and play our part in the domestic supply chain, enabling energy producers and consumers to connect to the grid and accelerate towards net zero.
“I’m really proud of what the team at BRUSH has achieved with this latest investment, and especially pleased with our team of new engineering apprentices who have come on board to support our growth including operating the new test cell.”
East Midlands business activity growth slowest for six months
The NatWest East Midlands Growth Tracker – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 50.8 in June, down from 52.3 in May, to signal only a marginal expansion in output at East Midlands firms.
Moreover, the pace of growth was the slowest in six months. Companies often noted that greater output was linked to backlog depletion, with new business contracting for the first time in 2024 so far.
East Midlands businesses signalled a renewed fall in new business during June, thereby ending a five-month sequence of expansion. The decrease in new orders was solid overall, and the fastest since November 2023. Anecdotal evidence suggested that the drop related to weaker client demand, with growing hesitancy among customers to place orders.
June data indicated further positive expectations regarding the outlook for output over the coming 12 months at East Midlands firms. Companies stated that investment in new products and service lines, alongside hopes of a stronger sales environment buoyed business confidence. The degree of optimism was below both the long-run series and UK averages.
Dipesh Mistry, Chair of the NatWest Midlands and East of England Regional Board, said: “The East Midlands private sector continued to see growth midway through the year, as output rose further. That said, there was a loss of momentum as new business returned to contraction for the first time this year so far. Customer hesitancy is not expected to last, however, as businesses foresee greater activity levels over the coming year.
“Nonetheless, firms adjusted their workforce numbers downwards amid muted demand conditions and as spare capacity built, with backlogs of work falling at the sharpest pace in nine months.
“Meanwhile, inflationary pressures picked up in June. Higher raw material and wage bills spurred renewed momentum in cost and charge increases, with rates of inflation broadly in line with long-run averages. Although input prices rose at a sharper pace than the UK average, the pace of output charge inflation was more muted than at the UK level amid efforts to drive new sales across the region.”
Performance in relation to UK
The rate of expansion in output was weaker than both the long-run series and UK averages.
Meanwhile, new orders contracted at the joint-fastest pace of the 12 monitored UK regions (alongside the East of England).
East Midlands companies signalled a further substantial rise in operating expenses midway through 2024. The pace of inflation quickened from May. Higher input costs were commonly linked to greater raw material prices, including for metals.
The pace of increase in input prices was sharper than the UK average.
East Midlands businesses indicated a sharper uptick in selling prices in June, with the pace of inflation accelerating from May. The rate of increase was broadly in line with the long-run series average despite being softer than the UK trend. Companies often noted that the pass-through of greater costs to customers drove the latest uplift in output charges.
East Midlands private sector companies recorded a twelfth successive monthly decrease in workforce numbers midway through the year. The pace of job shedding accelerated to the sharpest since November 2023 and was solid overall. The region was one of only three to register a decline in employment (others were the South West and West Midlands) in contrast with the UK trend which signalled a fractional uptick in headcounts.
East Midlands private sector firms registered a further decrease in outstanding business in June, thereby extending the current sequence of decline seen since October 2022. The pace of contraction quickened to the fastest since last September and was sharp overall. Panellists noted that lower backlogs of work were due to reduced new orders and sufficient capacity.
The rate of depletion was stronger than the UK trend, with only Yorkshire & Humber, the East of England and Wales seeing steeper declines.
Lomond continues aggressive growth strategy with acquisition of East Midlands estate agent
Lomond has further expanded within the East Midlands region, with its 58th acquisition of Acquire Sales and Lettings, an agent with a presence in Derby, Burton and Chesterfield.
The East Midlands property market has performed strongly in recent years, with house prices climbing by 15.1% in the last three years, outperforming the UK benchmark in the process, while rental values have also climbed by 20%.
Such is the strength of the region’s property market that it has become a key area of focus for Lomond, as the firm continues to execute an aggressive growth strategy that has already seen four acquisitions complete within the East Midlands region.
Lomond previously acquired the Nottingham and Derby lettings book of Royston and Lund, swiftly followed by the significant rental portfolio of Centrick and Nottingham based agent Tassi Sales and Lettings.
Its latest acquisition of Acquire Sales and Lettings brings further investment to the East Midlands region and will add some 700 properties under management to Lomond’s John Shepherd brand.
The already established business will now operate under the John Shepherd brand, guided by Chief Exec Richard Crathorne.
However, Crathorne has been quick to pile praise on his senior team – Operations and Property Management Director Chris Blick, Lettings Director Jack Spellman and Sales Director Katie Ridley – all of whom have been pivotal in shaping the journey of the John Shepherd brand to date, and who remain an integral part of the brand’s future growth ambitions.
Chief Executive of John Shepherd, Richard Crathorne, said: “The East Midlands has been a key area of focus with regard to the expansion of the John Shepherd brand and my senior team have been key in realising the ambitions of the business to date.
“We’ve been on quite the journey and, with the string of significant acquisitions made of late, it’s fair to say that we’re only just getting started.
“We’re extremely excited to welcome the team at Acquire Sales and Lettings to the John Shepherd brand and the wider Lomond family and we look forward to further establishing the brand amongst buyers, sellers, landlords and tenants across the East Midlands.”
Lomond CEO, Ed Phillips, said: “Our latest acquisition of Acquire Properties sees us procure yet another top quality business within the East Midlands area and this will only help fuel the momentum that our John Shepherd brand is building across the region.”
Steps forward and back for sale of City Ground land to Nottingham Forest
Nottingham City Council has revealed that it has agreed, in principle, terms for the sale of the land that the City Ground sits on to Nottingham Forest. This allows the club to push ahead with its plans to expand the stadium, while securing a significant capital receipt for the council.
Nottingham Forest, however, has issued a less optimistic clarification, noting that any decision to purchase the freehold will be entirely conditional on the football club first being granted the relevant permissions that will allow it to realise its plans for a larger stadium capacity, world-class hospitality spaces and associated real estate development.
Councillor Neghat Khan, Leader of Nottingham City Council, said: “I’m pleased to announce that we have agreed, in principle, terms for the sale of the land that the City Ground sits on to Nottingham Forest. This allows the club to press ahead with its ambitious plans to expand the stadium, while securing a significant capital receipt for the council.
“While it has been an uncertain time for supporters, property transactions like this can be complex and protracted. We’re legally bound to seek best value for taxpayers and we feel that the deal now on the table satisfies that requirement, and also works for Forest.
“The sale is subject to formal approval by Executive Board next week and the legal contract being finalised, but I feel this is the right decision for Nottingham and entrusts the future of this important asset to the club.
“The council is immensely proud of the club’s recent achievements and its proud heritage. With the City Ground secured for many years to come, we wish Nottingham Forest continued success as they look to further establish themselves as a Premier League side.”
Nottingham Forest said: “For absolute clarity, we continue to work on the terms for a conditional deal for the purchase of the freehold.
“Any decision to purchase the freehold will be entirely conditional on Nottingham Forest first being granted the relevant permissions that will allow us to realise our hugely ambitious plans for a significantly larger stadium capacity, world-class hospitality spaces and associated substantial real estate development in the vicinity of the ground.
“Our discussions remain confidential and the Club will update fans when meaningful progress has been achieved.”
Derby cultural hub “remains in serious financial difficulty”
QUAD, a cultural hub in Derby providing contemporary art exhibitions, film, cinema, integrated digital media work and a range of educational and creative activities, has warned of its financial position.
The charity has said it “remains in serious financial difficulty,” with income too low and costs challenging as the external environment continues to deteriorate. It also follows reduced audience numbers returning post pandemic, along with the continued impact of the cost-of-living crisis.
As a result QUAD is reviewing how it can move forwards in a sustainable way.
In a statement QUAD said: “In 2023 we talked openly about our financial position and the need for continued support from the people of Derby to continue to deliver on our charitable aims and the wider programme. Since then, our people have worked tirelessly to remain open, keep serving our customers and the community, and deliver on our charitable aims.
“However, the external environment continues to deteriorate beyond our most recent forecasts, meaning that our income is too low, and costs continue to be challenging. Together with this, the board continues to monitor ongoing risks of further issues, whether in respect of an ageing building or other external developments.
“Following a number of recent board meetings to discuss the continuing challenges, it has become clear that the charity remains in serious financial difficulty. This is despite the incredible efforts of our staff, partners, sponsors and volunteers.
“The situation is not a unique one. The direct impact of Covid-19 and the reduced audience numbers returning post pandemic, along with the continued impact of the cost-of-living crisis have all contributed to the position QUAD and other cultural venues nationwide find themselves in.
“With the support of Derby City Council, Arts Council England, the British Film Institute, and other stakeholders, we are reviewing how the charity can move forwards in a sustainable way. We are doing that transparently, and in consultation with, our people.
“While QUAD trustees and senior managers look at next steps for the charity, we remain open for our customers as usual, and we are grateful for the continuing support you all give. Please keep buying tickets, come to our exhibitions, eat in our amazing café bar and visit everything the building has to offer. Alongside staff and key stakeholders, we will keep people informed as the process continues.”
Mark Gregory, QUAD Chair of the Board of Trustees, added: “For the last fifteen years, QUAD has been an integral part of Derby, along with our fellow cultural venues. A vibrant cultural offering is a key enabler of the regeneration of the City and it is really important that QUAD is part of that.
“However, it is time for us to transform in order to do that sustainably. We will continue to work with our funders and stakeholders to seek out options to move forwards and, really importantly, care for our people in any way we can during this difficult time.”
A balanced approach to growing a better business: by James Pinchbeck, partner at Streets Chartered Accountants
James Pinchbeck, partner at Streets Chartered Accountants, considers a more balanced approach to growth.
It is widely recognised that businesses need to grow to remain competitive and to continue to trade, however what constitutes or is meant by growth is not necessarily the same thing for everyone.
Growth can come about in many ways including through the development of new products or services, innovation in systems and processes, adoption of new technologies and response to market and customer demands.
For many business leaders, though, it is a focus on increased revenue and certainly it feels that there is often more talk about generating more sales or turnover than perhaps the other areas for growth.
What drives that quest for revenue though can vary. For some it might be the founder, entrepreneur, or business leader themselves. For others it might be the pressure of external investors or shareholders or even the board of directors and employees.
Whether it is driven by market forces such as customer demand or an individual’s ego could be up for debate. Certainly, it is widely acclaimed that chasing turnover is vanity, while focusing on profitability is sanity. Whilst a growth strategy that is well considered, resourced and implemented is likely to succeed, ill-conceived and thought-out plans or rather a lack of them are less likely.
How many times have we seen rapid growth businesses come unstuck, with issues around funding shortages, declining profits, low staff morale, poor systems and processes, ethical compromise, regulatory risks, breakdown in culture and even loss of focus on what made the business successful in the first place. It can also be the case that many who aspire for growth are not structured or in shape for growth.
The question is then perhaps if you don’t focus on growth for growth’s sake, what should you focus on. How about on building a better business?
In contrast to focusing on solely the revenue line, attention turns to other areas of the business including improving customer service, systems and processes; staff training and developing, adopting new technologies and digital transformation.
Building a better business requires a holistic approach that encompasses strategic vision, operational excellence, customer focus, and a commitment to continuous improvement. By implementing these strategies, businesses can enhance their performance, achieve sustainable growth, and create lasting value for stakeholders.
While growth is crucial for business sustainability and competitiveness, an excessive obsession with it can lead to various negative consequences. Therefore, perhaps there is a need for a more balanced approach that considers long-term stability, ethical practices, employee well-being, and customer satisfaction that ultimately gives rise to more sustainable growth, as well as a better business.
See this column in the July issue of East Midlands Business Link Magazine here.
Wavensmere Homes eyes Midlands brownfield land
Wavensmere Homes is seeking brownfield development opportunities in excess of three acres within city centres and towns across the Midlands. The firm – which currently has 3,500 plots in production or planning – is gearing up to deliver 1,000 new homes per annum, in order to double turnover to circa £250m.
Established in 2015, the privately-owned housebuilder handed over the keys to 522 homes during 2023. The business and its associated SPVs are on track to achieve a £115m turnover during 2024. Construction is anticipated to commence on five new developments this year, which have a combined GDV of close to £350m.
James Dickens, Managing Director of Wavensmere Homes, said: “Land assembly, planning and pre-construction work can take several years. The new administration in No.10 has big ambitions to speed up the process, which we welcome and support, but changes will take time to implement at a local level. We couldn’t be prouder of our pipeline of major residential-led sites, but we need to acquire more development land before this year is out.
“The area we have intrinsic knowledge of is the East and West Midlands. It’s where our executive and management team live, where the majority of our core supply chain partners are based, and where we have an existing track record and established working relationships with local authorities.
“We would love to do more in Wolverhampton and across the Black Country, as we firmly believe the Birmingham ripple effect should be accelerating the regeneration of well-connected locations, such as Smethwick, Walsall and Dudley.
“In the East Midlands, we are keen to acquire our first sites in Leicester and Nottingham, as well as build upon our reputation in Derby. Our redevelopment of the former Derbyshire Royal Infirmary into the Nightingale Quarter is in the final phases, and we have the redevelopment of Friar Gate Goods Yard, Milford Mills near Belper, and Full Street in the Cathedral Quarter in our immediate pipeline.
“Complex, dirty land, with historic assets is our sweet spot. We are keen to hear from landowners and agents with new opportunities.”
Wavensmere Homes is currently constructing the £106m Belgrave Village development in central Birmingham and the £130m Barrelman’s Point scheme on the Shotley Peninsula in Suffolk.
The firm has become one of Derby’s most prominent residential developers, with its multi-award-winning £175m Nightingale Quarter. The former Florence Nightingale-designed hospital on London Road – which had laid derelict for a decade – comprises 925 houses, apartments, The Pepperpot restaurant, and a range of residents’ amenities.
Late last year, the firm received the green light from Amber Valley Borough Council for the £22m redevelopment of Milford Mills, which overlooks the River Derwent, located between Belper and Duffield in north Derbyshire. 69 new homes will be delivered on the historic site, which is within the Derwent Valley Mills UNESCO World Heritage Site.
Wavensmere’s £75m Friar Gate Goods Yard redevelopment in Derby city centre received planning committee approval in April 2024. The 276 houses and apartments will be available for occupation from 2026.
The firm’s plans for the redevelopment of one of the final plots of vacant land within Derby’s newly revitalised Cathedral Quarter are currently being considered by Derby City Council. 195 studio, one- and two-bedroom apartments are proposed for the Full Street site, within a u-shaped nine-storey red brick building.
Miller Knight appoints trio of industry big-hitters to senior team
Three industry heavyweights have joined the senior team at East Midlands construction company Miller Knight.
Previously long-serving senior directors at Derbyshire-headquartered G F Tomlinson, Chris Flint, Andrew Foster and Jamie Braybrook, have moved across to Miller Knight to add significant strength and expertise to its structure.
The trio will boost Miller Knight’s market share with ambitious plans to sustainably expand its service offerings within the regional construction market.
Chris Flint, former MD at G F Tomlinson, is Miller Knight’s new regeneration director. Andrew Foster has been made commercial director and Jamie Braybrook is chief estimator.
Chris said: “The rise and rise of Miller Knight is something that excited me – and I wanted to be part of the company’s growth, helping to further support its expansion and capability.
“After meeting Miller Knight chief executive David Dickson, and the other directors and visiting many of their current construction sites, I was not only impressed by how the business was set up – but also by the commitment of the staff and the company’s collaborative working approach.”
A £24 million turnover multi-discipline principal contractor formed two decades ago, Mansfield-headquartered Miller Knight is primarily known for its specialist divisions dedicated to remedial fire protection.
The company has built its reputation, carrying out complex and sensitive regeneration and refurbishment projects across the UK for the public and private sectors, delivering substantial schemes across education, health, blue light and residential.
Chris added: “It is clear to see that Miller Knight’s reputation is increasing and that this ambitious company has a team of directors who have a clear vision for the future and I very much wanted to be part of those plans.
“I’m truly excited about using my experience and knowledge of the industry to support the company’s continued growth across both the public and private sectors.”
The company has seen year on year growth for the past seven years with revenues set to double again for this upcoming financial year, with an order book reaching close to £50 million in turnover.
David Dickson, chief executive, said: “Adding Chris, Andy and Jamie to our team was an exciting opportunity for us. They are extremely experienced, will be great people to work alongside and will only strengthen our capabilities. We feel honoured to be able to have the opportunity to work with them all and are really looking forward to watching them settle in and helping us to continue to grow.
“To date, the company’s growth has been nothing short of extraordinary. We are taking our rightful place among some of the region’s biggest name firms and will no doubt become one of the fastest growing construction companies of 2024.
“Businesses are all about people. Here at Miller Knight, we take pride in being a great place to work, we have a great culture, and we have built a fantastic team over the years – and that is the main driver behind our successes to date.”
Sales and rents targets smashed at new Nottingham development
Residential property investment expert Centrick Invest has completed the sale of all 27 apartments at one of Nottingham’s new developments.
Centrick Invest has been working alongside developer Landstar Ltd to find buyers for the high-specification loft-style apartments at The Glassworks – a converted Victorian factory building at Crocus Street in a Conservation Area.
The Birmingham and Hong Kong based Centrick Invest team agreed sales to UK investors, overseas investors and owner-occupiers. The properties ranged in price from £150,000 for one-bed apartments to £275,000 for two-bedroom lofts. It took just eight months to agree sales of all of the apartments.
The Glassworks forms part of the Southern Gateway £250 million regeneration area which will include a major new retail complex, a new library and 75,000 sq ft of public space. Regeneration projects totalling more than £2 billion are underway or in the pipeline, including a college campus and 850,000 sq ft of Grade A office space.
The permitted development conversion of the historic glassworks site was launched off plan in a number of territories. Nottingham has continued to grow in popularity with both domestic and international investors and over 90% of the development has been acquired by off-shore buyers.
Centrick Invest’s new homes and investments director Andy Butts said that they had seen as much as a 20% increase on the expected rental values achieved in comparison to the estimated figure pre-launch.
“We are thrilled at the results we have achieved at The Glassworks where we have smashed both our sales and rental targets,” said Andy. “Our team sold all the apartments before the development was complete, and the rents are higher than we had anticipated. It is a great result for our investors and demonstrates the strength of the buy-to-let market in Nottingham.
“The city has a very strong investment story to tell. There is a huge amount of investment in various regeneration and infrastructure schemes which helps to improve city centre living. Nottingham has always been popular with students but we are increasingly seeing young professionals choosing to make their homes in the vibrant centre of the city.”
Andy added: “We have very successfully engaged the overseas distribution arm of Centrick Invest to deliver the very best outcomes for our UK clients, including Landstar Ltd. Working alongside several developers over the past 12 months, we have been able to offer overseas investors some very attractive opportunities and it is great to see so many sales being agreed.”
