East Midlands office market sees good activity levels in 2022 as FHP agrees 105 deals
As 2022 comes to a close, Thomas Szymkiw, of FHP Property Consultants, reflects on the state of the East Midlands office market.
In contrast to some opinion in regards to the future of the office, the East Midlands market has witnessed good levels of activity in 2022 with FHP agreeing 105 deals, representing some 357,000 sq ft of space across the region.
It is apparent whilst delving into these figures in a bit more detail that in a continuation of the changing attitudes towards the sector as a result of the Covid-19 pandemic, downsizing and demand for quality have been the real key drivers in the market – with 75% of these deals agreed being below 4,000 sq ft and over 70% of those being of high quality. We would expect the proportion of occupiers taking ‘Grade A’ spaces to be higher still if the quality of office supply in the region was there to match occupier demand.
Additionally, a more flexible hybrid working model is also influencing occupiers’ locations and property preferences with some attracted to the accessible business parks on the periphery of the core towns and cities – whilst others are downsizing to smaller hubs in the city centres which act as a focal point destination for both employee collaboration and meetings.
Although decision making still remains slow in the larger end of the market, whilst occupiers continue to assess their occupational space requirements, there has pleasingly still been traction this year too – with 8 key deals completed by FHP on floorplates and buildings over 10,000 sq ft within both the city centres and business parks. There is also a real focus within this sector on environmental performance and adhering to MEES recommendations with many occupiers stipulating that their buildings must at the very least have a ‘B’ EPC rating.
Whatever the type of property or location, our advice to clients remains the same – occupiers are seeking ‘best in class’ opportunities and when quality is provided to the market, positive results generally follow. There is no better example of this than at CEG’s East West scheme in Nottingham City Centre where FHP have agreed over 45,000 sq ft of lettings in 2022, with the quality of the refurbishment which incorporates an onsite business lounge café being popular with occupiers seeking to improve the quality of their working environments and amenities provided to clients and staff.
This is also reflected in a noticeable uplift in both rents and capital values in these ‘high quality’ options providing the evidence that refurbishing and remodelling to suit what is fast becoming a more ‘life-style’ office market is the way forward.
Successful refurbishments in this regard have understood the importance of providing a real sense of arrival with many incorporating feature reception / communal areas including welfare facilities such as ‘barista-style’ cafés, gyms and informal meeting spaces to add to their offering – which for occupiers, these added benefits have just as much significance to their decision making as the office space itself. These not only provide a fantastic working environment that encourage their staff into the office, but also a key sales tool in what is an ever-competitive recruitment market.
Looking into the new year, I would predict more of the same – with the activity in the market focusing on quality not quantity, with ESG credentials becoming ever more important due to the changes in EPC regulations – and I am, as always looking forward to assisting both clients and occupiers alike with their requirements moving forwards into 2023.
Approval tipped for 400-bed student scheme in Nottingham
Plans to redevelop a site at the corner of Queens Road/London Road in Nottingham to create student accommodation have been recommended for approval.
The site, until recently, contained four single storey industrial units which have now been demolished.
The proposed scheme has been reduced from an application originally considered at a planning committee in October, where a decision was deferred for future consideration, pending a review of the development’s design and architectural approach, including further consideration of how the scheme can most sensitively contribute to the Nottingham skyline.
The original scheme proposed a trio of buildings including a 22 storey tower containing 163 BTR apartments, a 9 storey rectangular building containing 75 BTR apartments, and a 12 storey ‘L’ shaped building accommodating 406 student beds.
The first two of these buildings have now been removed from the scheme so that the application solely relates to the Purpose Built Student Accommodation, which would form phase 1 of the overall development.
The removal of the two buildings (now forming phase 2 for the site) will allow phase 1 to move forward whilst a more detailed review of their design is undertaken to address concerns raised by Committee.
A new planning application for phase 2 is then anticipated to be submitted in early 2023.
Revised plans for the PBSA building, expected to be approved next week, see it remain a 12 storey ‘L’ shaped building which would accommodate 406 student beds within a range of studios and 5, 8 and 9 bed cluster flats. Its ground floor would accommodate communal facilities such as lounge/study space, a cycle store, plant/equipment, a laundry and waste storage facilities. However, significant changes have been made to the building’s exterior to address concerns raised by Committee.
Hyperama sells cash and carry division
Nottingham-based Hyperama plc has sold its cash and carry division based in Peterborough to London-based Holland Bazaar Ltd, as the latter moves forward with long-term plans to expand its tangible presence outside of London.
Hyperama plc is one of the largest operators of cash and carry stores in the UK and has a number of depots across the Midlands. Having undertaken a strategic review, Hyperama had decided to divest of its cash and carry operations.
In order to widen the pool of potential purchasers, Marcus Singh, Managing Director of Hyperama plc, worked with PKF Smith Cooper to carve out and ‘hive down’ its trading business, assets and operations based in Peterborough in preparation for the eventual sale to Holland Bazaar.
Having run a discrete and targeted marketing process, Holland Bazaar emerged as the optimal acquirer as the business was seeking to expand outside London.
Commenting on the transaction, Marcus Singh said: “Peterborough is a predominantly food service-led depot, making Holland Bazaar well placed to take the reins. I am pleased that we have found a purchaser with shared values that will continue to invest in the Peterborough site for the benefit of our staff, customers and suppliers.”
In what was the first corporate acquisition by Holland Bazaar, a company spokesman has been reported as stating: “This is the first foray outside of London for Holland Bazaar, with a new market demographic, different product ranges and a fresh challenge for the business.”
The transaction was funded by Turkish lender Işbank.
Nottingham immunodiagnostics group raises £2.1m
Oncimmune, the Nottingham immunodiagnostics group, has successfully raised approximately £2.1 million through a capital raise.
It has been achieved through the placing of 2,044,446 shares with existing and new investors and through subscriptions for 2,622,221 shares.
The net proceeds of approximately £1.9 million, will be used to retire a proportion of the company’s existing debt facility, provide the company with additional near-term working capital, and fund future collaborations in biomarker tool development.
Since announcing the capital raising, Oncimmune has signed further ImmunoINSIGHTS contracts with a combined value of approximately $1.25 million with an existing global pharmaceutical client.
Retail group critiques administrators’ handling of Joules sale
The Foschini Group, which owns brands such as Phase Eight and Hobbs, is said to have written to Joules’ administrators to complain about how it handled the sale of the business.
Reports from Sky News indicate that the South African group has written to Interpath Advisory, appointed administrator to Joules in November, regarding its decision to sell the business to a newly formed joint venture set up by Next and Joules founder Tom Joule after its rescue deal for the Market Harborough retailer looked set to proceed, only for Next to swoop in and snap up the firm at the last minute.
The Foschini Group is now apparently considering lodging a formal complaint with the Institute of Chartered Accountants in England and Wales over Interpath’s conduct and is understood to have written to lawyers working on the sale, suggesting they may have breached rules from the Solicitors Regulation Authority.
The Foschini Group is also reportedly looking to recover costs from its failed bid.
A spokesperson for the joint administrators told Sky News that they “reject any notion of unfairness,” adding that “TFG were granted a period of exclusivity in which they had the opportunity to conclude a transaction. Despite our best efforts, they were unable to do so within this timeframe.
“Thereafter, a materially better offer for the business was received, which the joint administrators concluded represented the best outcome for the company’s creditors.”
The new company formed by Next and Tom Joule acquired around 100 Joules stores, with approximately 1,450 jobs saved. 19 stores were not part of the transaction and closed immediately. 133 redundancies were therefore made.
2023 Business Predictions: Martin Austin MBE, Managing Director of Nimbus Disability
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Martin Austin MBE, Managing Director of Derby-based Nimbus Disability, one of the country’s leading providers of disability-related advice and support to professional organisations, and the UK’s lead authority on accessible ticketing, which earned Nimbus The Queen’s Award for Innovation in 2022.
Businesses who not only meet but exceed their legal obligations to disabled people have the opportunity to boost their ethical credentials and tap into the lucrative ‘purple pound’ which could be the difference in not just surviving but thriving in 2023.
There is a growing understanding amongst businesses that disability, simply put, is good for business. Disabled People themselves have spending power in the UK of circa £80 billion and their households have a spending power of c.£249bn after housing costs.
This spending power is heavily influenced by their perception of a business’s ability and willingness to work with disabled customers and employees.
Then there is the opportunity to embrace wider influence on disabled people’s social circles and also on how a business is perceived locally and in the wider community.
Working with disabled people is therefore no longer just a case of meeting legal obligations it’s an opportunity no one can afford to miss and my heartfelt hope is that businesses take the opportunity during these challenging times to assess how they can make a difference both to other people’s lives and the credibility of their own operations.
Rail industry raises £12,000 to make a big impact on young lives
Pupils have sent a special message to members of the rail industry after they raised almost £12,000 for their school which will help to build an outdoor classroom.
Students from Royal School for the Deaf Derby have recorded a special video for the companies who attended Mainspring’s ‘Dinner at the Roundhouse’ annual event.
The gathering is a chance for the biggest names in the rail industry to get together and celebrate the last 12 months, forge new connections and look forward to the future.
And the businesses who attended, which included CoMech Metrology, Rail Forum, Arriva TrainCare and Wabtec, raised £11,970 for the school.
The money will be used to build a classroom in the grounds of the school in Ashbourne Road which will allow outdoor learning in any weather and be designed for the needs of deaf children.
Pupils have been told about the generosity and have recorded a special thank you video in British Sign Language.
Head teacher Paul Burrows, who gave a presentation at the event, said: “I am overwhelmed by the generosity of everyone who attended the Mainspring Dinner. The money raised indicates the level of kindness of the rail industry and their determination to be an inclusive industry.
“Royal School for the Deaf Derby intend to put the money into a brand-new project, as opposed to lots of smaller ones. The children have wanted an outdoor classroom space that is deaf aware and bespoke to their needs. We hope that this money can fund that project in its entirety.
“When I spoke at the event, I asked for equal opportunity for our deaf children – the money generously donated will enable us to create an inclusive, equal opportunity learning space for our amazing children. Thank you so much.”
The event, sponsored by Derby City Council, has raised money for Royal School for the Deaf Derby for many years and last year donations of almost £5,000 helped work on the school library to be completed.
Matt Pallett, Managing Director of CoMech, based on Pride Park, said: “Dinner at The Roundhouse is always a brilliant occasion and a good opportunity to catch up with colleagues across the industry.
“CoMech has worked with the pupils at Royal School for the Deaf Derby previously and I think Paul made a big impression on everyone in the room.
“How great that the money raised on the night will make such a big difference to the school.”
Matt Johnson, Managing Director of Mainspring, said: “We are delighted once again to support the Royal School for the Deaf Derby as we have done now for many years.
“Each year, we are inspired by the work that the school does in improving the lives of the young people in their care. We are thrilled that the Dinner at the Roundhouse event brought the national rail industry together to raise the highest ever amount for the school.”
‘Momentous day’ for family business with outstanding achievements in international trade recognised in Queen’s Award presentation
Independent, fourth generation, family run metal recycling and waste management specialists, Ward, has this month (December 2022) officially received its Queen’s Award for Enterprise (QAE) for Excellence in International Trade, at a formal presentation at its Griffon Road site in Ilkeston.
During the ceremony, Elizabeth Fothergill CBE, His Majesty’s Lord-Lieutenant of Derbyshire, presented a commemorative crystal bowl to directors Michael Ward and David Ward, alongside the rest of the Ward board.
The team also received an official Queen’s Award Grant of Appointment which was read out and presented by Tony Walker CBE DL who is the chair of the Derbyshire QAE Honours Panel. The High Sheriff of Derbyshire, Michael Copestake, was also in attendance for the proceedings.
Elizabeth Fothergill, CBE, said: “Considered the most prestigious business awards in the world, this award is an outstanding achievement and huge congratulations to the Ward team. Recycling is such important work and the family ethic of Ward is impressive.
“We were all immensely impressed with what the team do and achieve at Ward. It was great to see a family company operating in such an important industry passing on successfully to the fourth generation.”
Following the presentation, Toby Potter, Ward’s business development director, provided a tour of the metal processing site and guests enjoyed a celebratory lunch before wrapping up the very special occasion for the Ward family and the wider business.
Michael Ward, director at Ward, said: “Our business was established by my great grandfather over 80 years ago as a single site scrap metal dealer in Swadlincote. I’m proud to have been in the business for nearly 45 years with my brother David Ward and we have seen some significant investment and huge change in our operations.
“This achievement marks a monumental day for our family and the whole Ward team who we regard as extended family. To have Ward recognised and honoured in such a prestigious way is testament to the hard work of every member of the team.
“Over the three years to March 2019, thanks to significant investment in deep sea dock facilities and ongoing hard work from our dedicated teams, our overseas sales grew by 84%, a growth rate of 36% per annum.
“We have been able to expand our export capabilities to service customers in key export markets around the world. We have ambitious plans for our future, both at home and further afield, and we hope that this award marks the start of us realising every one of them.”
Ward was one of 225 organisations nationally honoured with its prestigious Queen’s Award for Enterprise in 2022 earlier this year. Just seven winners were selected from Derbyshire, with four recognised for Excellence in International Trade, Ward specifically for its outstanding short-term growth in overseas sales over the last three years.
During the summer, Michael Ward attended a special Queen’s Award reception in Buckingham Palace and met the then Prince of Wales, who was hosting on behalf of the Queen.
The Awards are considered the most prestigious business awards in the country, with the winning businesses able to use the esteemed Queen’s Award Emblem for the next five years.
Fire & security specialists appointed to install systems at Premiership football training facility
Fire and security system installation and maintenance specialists Tecserv UK has been appointed to install intruder alarm systems at a temporary training ground facility for Premiership side Brentford Football Club.
Tecserv, which is based in Underwood on the Notts & Derbyshire border, was contracted by Portakabin, who are working in partnership with Ardent Sports to create a bespoke building for the BFC following planning approval in June 2022.
The two-storey building has contributed 3,200m2 to the Jersey Road training complex and includes dedicated office space, changing rooms and medical treatment rooms. Tecserv has installed two intruder alarm systems to cover the reception building and main modular office block. In total, the systems have 11 control panels and covers over 90 intruder zones.
The new training facility, whilst temporary, represents a significant improvement on current facilities and is a stepping-stone towards the Club’s longer-term vision for a state-of-the-art performance centre. Made up of over 80 modules which were precision engineered offsite at the Portakabin manufacturing facility in York, the building has all the necessary facilities the Premier League side will require for both its First and B teams.
Colin Milligan of Tecserv UK said: “We have a long standing relationship with Portakabin and were delighted to assist on this project to ensure the new buildings benefit from the latest security technology to ensure access to the facility is controlled to authorised personnel and the valuable equipment and personal belongings inside are protected ”
A spokesperson from Portakabin added: “Tecserv UK is a trusted partner, helping us to deliver safe and secure temporary accommodation for a wide range of applications. We’re delighted to be once again working with a topflight Premiership football club.
“Having the capability to deliver facilities like this for the highest calibre of athlete is a fantastic achievement for our team. The building will be in place for the next five years, enabling the Club to continue to develop its plans for a new permanent performance centre and we’re honoured to be part of that process.”
Installed over 14 days, the building is now fully operational and as well as level access, fully glazed doors and bespoke furniture will also contain a hydrotherapy suite, a cryotherapy unit and plunge pool. A viewing platform will also be installed on the roof of the ground floor overlooking the pitches at Jersey Road.
Council takes next step to restore Chesterfield’s historic Tapton House
Proposals to safeguard the future of Chesterfield’s historic Tapton House – ensuring the Grade-II* listed building can be restored and brought back into beneficial use – have been considered by Chesterfield Borough Council.
A sympathetic scheme which would see the building restored and converted for residential accommodation, together with a commitment to retain the parkland for public use and create visitor access to part of the Georgian mansion, was chosen as the preferred option by the council’s Cabinet on Tuesday (13 December).
The decision followed careful consideration of bids from 17 interested parties, with the council’s Cabinet approving the sale of the property on a 999-year ground lease to developers, Stone Castle Enterprises Ltd. The sale is subject to further legal due diligence and exchange of contracts.
Councillor Dean Collins, cabinet member for economic growth, said: “Just like the people of Chesterfield, we want to achieve the very best outcome for Tapton House. This is why we set out to find a new owner with the necessary expertise and financial ability to restore and refurbish Tapton House and safeguard its long-term future.
“The council’s Cabinet considered a detailed report on the bids received and the robust process that has been followed to evaluate and score each against a range of relevant criteria – including evidence of proof of funds, and that conservation and environmental matters have been properly considered.
“The offer put forward by the preferred bidder represents the most credible, sympathetic and financially viable option to restore and safeguard the building for generations to come, and the developers have made a commitment to work closely with the council, the Friends of Tapton House and the wider community, as their plans progress.”
Any development will still be subject to planning and conservation approvals, but the proposals put forward set out an aspiration to convert the main house into 15 apartments, with three town houses and two bungalows built in place of the annexe buildings.
Stone Castle Enterprises Ltd have confirmed that no hard boundary would be required and open public access to the parkland would continue. The developers would also seek to create a public heritage area in the building to ensure its past use as the home of Charles Paxton Markham and George Stephenson are celebrated and the importance of the property to the town’s history continues to be commemorated.
Councillor Collins added: “I would like to express the council’s thanks to all 17 bidders who submitted offers to take on this treasured asset. In arriving at a final decision on this important matter, Cabinet members also considered the many views that have been expressed and representations made at earlier council meetings – including the debate on the Friends of Tapton House’s petition.”
A spokesperson for Stone Castle Enterprises Ltd said: “Our vision for Tapton House is to reflect its heritage, honour its past and to create new homes within the space that are steeped in history but built for modern lifestyles.
“We understand the significance of Tapton House to the local community and as such our proposals include maintaining the current levels of public access to the grounds around the building and exploring the viability of developing part of the building to showcase Tapton House’s rich heritage.
“We look forward to working hard, alongside the council and the community, to deliver the best for Tapton House and for the town and borough.”
The Cabinet decision is subject to the council’s usual call-in procedures.
