< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS 82 jobs saved as street style brand rescued from administration Street style retailer, Just Hype Limited has been sold out of administration. Quantuma Chief Executive Carl Jackson, and director Kelly Mitchell were appointed as joint administrators of Just Hype on 31 March 2023, and completed a sale of the business and assets shortly afterwards. Just Hype was established in 2012 and operated from headquarters located in the East Midlands. The company’s target market is primary and secondary school aged children and it primarily sells direct to consumers through its online platform and from a single retail store located on Carnaby Street, London. According to its latest accounts filed in December 2020, the business reported a turnover of £22.8m. The business has been jointly acquired by Lux360 Ltd and JHB2C Ltd who also acquired sister company Toatee Limited, which facilitates the sale of products through high street retailers and other online retail platforms. The transaction secures the jobs of all 82 members of staff and enables the brand to continue to thrive and the business to move forward without the burden of legacy debt. Lincs firm secures £30m to drive smart home technology growth Lincolnshire technology manufacturer, myenergi, has secured a £30m funding package from HSBC UK to support the development and production of innovative smart home energy products. The funding will be used to expand the company’s operations, enhance its production capabilities, and invest in research and development to create new and innovative products that meet the evolving needs of consumers, including electric vehicle chargers and batteries for storing energy. Lee Sutton, myenergi co-founder and Chief Executive, said: “The new financing facility from HSBC UK will enable us to further accelerate our growth and innovation in smart home technology. “Over the last four years, HSBC has supported the business with various financial solutions to facilitate our ever-increasing growth. The introduction of the new funding facility will enable us to accelerate our business development strategy and support us in the next chapter of our amazing journey.” Mattioli Woods invests in Lincoln mortgage advisor Mattioli Woods, the specialist wealth and asset management business, has acquired 50.1% of the issued share capital of White Mortgages Limited in a £425,000 deal. The Leicester-based company has also entered into an option agreement with directors Steven White, Mark Sutton, and Robert White which entitles Mattioli Woods to acquire the remaining 49.9% of the firm, which would increase the deal value up to £2.625 million. Founded in 2011, Lincoln-based White Mortgages specialises in providing independent mortgage advice, whilst also offering bespoke protection advice, and employs nine staff, all of whom will remain with Mattioli Woods following completion. In the year ended 31 March 2023, White Mortgages generated revenues of £680,000 with a profit before taxation of £350,000. Michael Wright, Group Managing Director of Mattioli Woods, said: “Our investment in White Mortgages is an exciting extension to our existing client proposition and is another step forward for Mattioli Woods as we continue to expand our operations. “Over the past six-months we have seen significant changes in the economy, none more so than immediately after the Government’s mini-budget last September and the impact it had on the mortgage market, with a leap in mortgage interest rates, the withdrawal of many mortgage products and a rapid tightening in lenders’ underwriting criteria.” © stock.adobe.com/ Panumas L-R: Jordan Brompton, co-founder and chief marketing officer at myenergi; Frances Howell, MD, head of Corporate Midlands at HSBC UK; Lee Sutton, myenergi co-founder and Chief Executive; Melissa Hemming, relationship director at HSBC UK; and Emma Dutton, Chief Financial Officer at myenergi 06-15.qxp_Layout 1 03/05/2023 09:20 Page 5FINANCE NEWS www.eastmidlandsbusinesslink.co.uk East Midlands Business Link Manufacturer of variable speed drives secures £2.5m investment Foresight Group, a listed regional private equity and infrastructure investment manager, has invested £500,000 through the Midlands Engine Investment Fund (MEIF), alongside £2 million from its VCTs, into Sprint Electric Limited. Sprint Electric designs and manufactures drives for controlling industrial motors. The investment will enable the final development and commercialisation of a new range of variable speed drives (VSD) for the alternating current (AC) motor market, with power regeneration capability that increases energy efficiency. The new product will also provide access to the large AC VSD market – estimated to be valued at £16 billion per annum. Sprint Electric has worked with the University of Nottingham as part of a Knowledge Transfer Partnership – a UK-wide, part grant-funded scheme helping businesses of all sizes to innovate using the knowledge and expertise of UK universities. The company currently employs 18 people and, in 2022, reported £3 million in sales. Working with Foresight, Sprint Electric plans to use the investment to scale its operations and drive growth. Forterra secures £170m sustainability linked loan in multi-bank deal Northampton-headquartered brick and concrete manufacturer, Forterra plc, has secured a £170m Sustainability Linked Loan (SLL) coordinated by HSBC UK and funded by a syndicate of five banks. The new facility refinances Forterra’s existing bank loan as an SLL, which has been jointly funded by HSBC UK, NatWest, Bank of Ireland, Virgin Money and Banco de Sabadell. Forterra has secured an SLL to better align its financing with its long-term sustainability strategy. The SLL contains specific Environmental, Social and Governance (ESG) targets, which include: the reduction of CO2 emissions in Forterra’s clay brick business; increasing the percentage of employees in “earn and learn” positions, where employees combine study with practical experience to gain the knowledge and skills required to pursue their career; and a commitment to reducing the group’s overall plastic consumption. Ben Guyatt, CFO at Forterra, said: “We have an ambitious, long- term sustainability strategy in place and this new facility is a very positive step for us in support of our goals. By securing a Sustainability Linked Loan, we have greater liquidity to reinvest in our sustainability initiatives over time, as we focus on reducing our carbon impact and plastic consumption whilst positively benefiting our employees.” Richard Bacon, relationship director at HSBC UK, said: “Forterra operates as a market-leader in an industry that relies heavily on energy consumption to deliver its products. This new deal will help Forterra reduce its environmental impact whilst creating new, positive opportunities for its employees. “Sustainability has become a strategic priority across the construction industry, with many businesses firmly focused on building a more sustainable future. We expect to see greater adoption within the industry as leading construction businesses invest in their sustainability strategies.” © stock.adobe.com/ Rapeepat © stock.adobe.com/ RZ 06-15.qxp_Layout 1 03/05/2023 09:20 Page 6Samworth Brothers agrees £150m credit facility linked to sustainability Family-owned food producer Samworth Brothers has agreed a £150m sustainability-linked revolving credit facility to support its strategic growth ambitions while underlining commitments to environmental and social goals. This financing package will support investment across the business. The new unsecured facility is provided by a club of three banks, made up of HSBC UK and Lloyds Bank as the group’s existing banking partners, and bringing in NatWest as a new banking partner. The facility is linked to three of Samworth Brothers’ ESG priorities, being a reduction in carbon, a reduction in food waste intensity, and an increase in the number of apprenticeships across the business. Chairman Mark Samworth said: “With this refinancing, we reaffirm our commitment to our long-term sustainability goals on carbon emissions, food waste intensity and social impact. As a fourth-generation family business we always seek to be a long-term force for good and so it is particularly important for us to address both environmental and social initiatives.” East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS Major milestone reached in development of Rolls-Royce SMR technology Rolls-Royce SMR has progressed to Step 2 of the Generic Design Assessment with successful completion of the first step in the assessment by the UK’s independent nuclear regulators. Reaching this significant milestone puts the Rolls-Royce SMR significantly ahead of other designs in securing consent for a Small Modular Reactor to operate in the UK. Rolls-Royce SMR’s unique ‘factory-built’ power plant can generate 470MW of low-carbon electricity – enough to power a million homes for at least 60 years. Safety & regulatory affairs director Helena Perry said: “This is a huge stride forward for our project and, through the independent scrutiny of our regulators, further increases confidence in the viability of the Rolls-Royce SMR design. “Rolls-Royce SMR has unmatched experience in GDA, international licensing and permitting. We are using all the knowledge and learning from our uniquely skilled team to move at pace through the GDA process – bringing us closer to our vision of providing clean, affordable energy for all and providing a British solution to a global energy crisis.” Automotive supplier makes seven-figure investment in Nottingham manufacturing facility Vestatec UK, a specialist in metal forming and assembly, has made a seven-figure investment to improve its manufacturing facility in Nottingham. The Colwick-based business, and supplier to some of the world’s leading vehicle manufacturers, has invested almost £2 million to expand the 20,000 sq ft facility and enhance its global service offering. Mike Bylina, Managing Director at Vestatec, said: “This is a truly exciting development in Vestatec’s ambitious growth plans as we continue to be a leading Tier 1 supplier to the global automotive supply chain. “Our Nottingham-based site is a hub for creating bespoke interior trim for some of the most prestigious brands in the world, which is a true testament to the city’s legacy in UK manufacturing.” Vestatec is one of the only manufacturers in the UK to specialise in highly complex metal forming, etching and assembly, creating precision components to meet the requirements of high performance and aesthetic applications. Part of its seven-figure investment includes the development of its new Physical Vapour Deposition (PVD) coating facility and the company’s first robotic system to offer more affordable and flexible services for both new and existing customers. Helena Perry 06-15.qxp_Layout 1 03/05/2023 09:20 Page 7Manufacturer sold following group’s slip into administration More than 70 jobs have been saved, while almost 60 have been lost, following the appointment of administrators to Concord Limited, BAS Castings Limited and HI Quality Steel Castings Limited. The group operated two casting foundries in Pinxton, Nottinghamshire (BAS) and Whittington Moor, Chesterfield (HIQ) which manufacture and supply high integrity iron and steel castings worldwide. The group’s growth and financial stability has been impacted by a legacy defined benefit pension scheme which it was no longer able to support given a period of underperformance arising from Covid-19 and more recently by rising energy costs and inflation. Following their appointment, administrators from PwC undertook an accelerated process of limited trading and completion of work in progress where possible alongside rapidly exploring any interest in a sale of the businesses and assets. This has resulted in a sale of all the business and assets of HIQ which has preserved all 76 jobs to Chesterfield Metal Technologies Limited (a subsidiary of William Cook Holdings Limited). Unfortunately the limited interest in BAS has resulted in 59 redundancies being announced, with a small number of employees (18) retained to assist the administrators. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link MANUFACTURING NEWS Investment means TEK Seating is a cut above the competition Leicestershire-based TEK Seating has invested £125,000 in new machinery to satisfy rising demand and take additional control of its production process. Increased competition for the vehicle seat manufacturer was also a driver to expanding its in-house capabilities for further growth. The investment has been supported with a grant of £25,000 from the LLEP Business Gateway Growth Hub. The 15,000 sq ft site includes an R&D department to create its own seat designs and work on trim development. There’s another site in Tunbridge Wells, though manufacturing is all done at Rearsby. Instead of outsourcing for their large volume work, TEK Seating’s new automated cutting machine now means it can all be done in-house. Sean Magee, operations director, explained: “We were subcontracting out elements of production – the cutting of leather hides or other material – together with the laminating process where foam is added to the back. “We’d buy the hides and have them sent to us. We’d have to check them, send them to a third party, have them cut and laminated. They would be sent back to us, checked again and then we’d be able to build the seats. This was a fairly time- consuming part of the manufacturing process.” Apart from the saving in transport costs and reduction in its carbon footprint, which is significant, it means its manual cutting technicians don’t have to work on large volume jobs anymore, which took a long time. Thanks to the new machinery, their time will be better spent on higher-skilled, lower-volume cutting. The new machine also means cutting is now 30 times faster, saving around 10 days in the whole process improving efficiency, productiveness and competitiveness. L-R: general manager, Scott Burton shows Business Gateway adviser Juan Pardo TEK Seating’s range of military seating. © Beth Walsh Photography © stock.adobe.com/ASDF 06-15.qxp_Layout 1 03/05/2023 09:20 Page 8PROPERTY NEWS Transformation of Derby’s historic Friar Gate Goods Yard site takes step forward The landowner for the historic Friar Gate Goods Yard in central Derby has selected Wavensmere Homes to collaboratively bring forward development proposals for the derelict 11.5-acre site, which includes two landmark Grade II listed buildings. The site has been in the ownership of the Clowes family for 40 years, with a number of options for redevelopment proposed but not progressed, due to heritage considerations and commercial viability. It is now set to be transformed into around 275 homes, plus a significant element of mixed-use commercial space, which will bring about the restoration of the Grade II listed Bonded Warehouse and Engine House. A planning application is currently being prepared, in consultation with Derby City Council and a range of stakeholders. James Dickens, Managing Director of Wavensmere Homes, said: “The design proposals that we are currently working up are ground-breaking and provide solutions for bringing the two badly fire-damaged 150-year-old listed buildings within the Goods Yard back into use. A key marker of success will be introducing innovative energy saving technology that keeps the future running costs to occupiers to a minimum.” Derby regeneration plans accelerated with Midland House acquisition Placemaking and regeneration expert LCR has completed the £2.8m acquisition of Midland House, further accelerating Derby’s city centre regeneration plans. The high-profile 19th century heritage building sits adjacent to Derby railway station amid an area earmarked for regeneration by Derby City Council to create a new, more effective gateway to the city centre. The acquisition was made possible with the support of £500,000 funding from Derby City Council. LCR and the City Council are now working to bring forward a regeneration masterplan for the station area as part of the wider regional growth story. The plans will then be subject to consultation with residents, local businesses and other key stakeholders. The c.55,000 sq ft building was originally the headquarters for Midland Railway and has also served as a free school. Local residents may associate the building with its most recent use as a COVID vaccination centre. East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Second phase of building work in full swing at Derby Market Hall The highly anticipated Derby Market Hall refurbishment has commenced its second phase of work, making drastic internal and external improvements. A vital part of this next phase is to develop the public space at Osnabruck Square, a key entrance to the Grade II listed building, as well as reinstating the north entrance. The refurbishment is being led by Wates Group, which is working in collaboration with Derby City Council. The Guildhall Yard will also be enhanced to resurface the existing tarmac and the entire courtyard will be re-paved following the demolition of the existing 1980s stair and lift tower. Internal works will focus on the new flexible market hall space featuring free-standing mobile stalls to create an accessible space for events and activities such as food and music festivals. Further work in this phase includes refurbishments made to the first-floor shops, new durable flooring, improved back-of-house storage, improvements to fire safety, and new WC facilities. A new, grand central staircase is also proposed to the north of the Market Hall, replacing an existing stairwell and removing any potential for anti-social behaviour. James Dickens, Wavensmere Homes, Tom Morley, Clowes, Donna Smith, Wavensmere Homes, Thomas Clowes, Clowes 06-15.qxp_Layout 1 03/05/2023 09:20 Page 9PROPERTY NEWS Flex office provider acquires second Nottingham site Flex office provider Cubo has expanded its footprint in Nottingham with the acquisition of the former Nottingham General Hospital headquarters on Park Row in the city’s professional quarter. Cubo has taken a new lease on the impressive Standard Court building, which is located on Standard Hill on the Royal Standard Place development, close to The Park Estate and the city centre. Standard Court has had a long history and was originally the city’s main hospital before becoming the headquarters of the Nottingham City Primary Care Trust. It has been vacant since 2018. The new Cubo features 50,000 sq ft of office accommodation arranged over four floors, with 630 desks available. It also boasts elevated views over the south of the city. As well as the regular Cubo member benefits, Standard Hill will offer a full wellness centre, including gym and spa. It also has a secure car park with 44 spaces. The new site will complement the accommodation already available at the Cubo workspace at Fenchurch House on King Street, which opened in 2020. Modular housebuilder secures £70m investment TopHat, the modular house builder, has raised £70 million from new and existing shareholders as the company draws closer to opening Europe’s largest modular housing factory, from which it will manufacture up to 4,000 ultra low- carbon homes a year. In a major show of confidence in TopHat and the UK’s fast-growing modular housing sector, FTSE-100 housebuilder Persimmon and institutional investor Aviva, through its Aviva Capital Partners unit, have each made a substantial investment in the company. Existing shareholders Goldman Sachs Asset Management also subscribed to TopHat’s latest fundraising round. Homes England, which has funded TopHat’s development at Kitchener Barracks in Chatham, continues to explore the potential for additional support as part of its ongoing commitment to the sector. This successful fundraise will help to cement TopHat’s leadership of the modular homebuilding sector. In addition to its current output of up to 800 homes a year from its first factory in Derby, it will begin production from its cutting-edge 650,000 square feet manufacturing facility in Corby, Northampton in 2024. New student scheme set for Nottingham following multi- million property purchase Hull-headquartered Kexgill Group, one of the largest private owners of student houses and halls in the UK, has completed the multi-million purchase of Raleigh House, located close to Nottingham Trent University City Centre Campus. Raleigh House provides over 20,000 sq ft of floor space, which Kexgill will convert into a new 57-bed cluster scheme. The development will form part of the group’s University Quarter brand and strengthens its existing student accommodation portfolio in Nottingham. Kexgill’s legal advice was led by Helen Mellors, property partner at Andrew Jackson Solicitors, supported by partners Fiona Phillips (corporate), who provided advice on VAT, and Nick Dean (property litigation), who advised across a range of non-contentious issues. The purchase of Raleigh House follows an exceptionally busy period for Kexgill, which most recently saw the award-winning group refinance 55 residential student units at various locations across the UK via a £25 million facility provided by InterBay Bank. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 06-15.qxp_Layout 1 03/05/2023 09:20 Page 10 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY New developments and deals abound 16-19.qxp_Layout 1 03/05/2023 09:22 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY With myriad deals and new schemes hitting headlines, the East Midlands remains a hotspot for industrial and logistics property, developers and investors. T he East Midlands industrial and logistics property sector is bustling, with numerous important deals, newly revealed plans, and novel schemes breaking ground and completing over the past month, highlighting the region’s prowess as a prime location to establish, and invest in, new developments. In Derby, St. Modwen Logistics has revealed the £59m second phase of St. Modwen Park Derby. Developing an additional 350,000 sq ft of new warehouse space, due for completion in 2024, this next phase will see St Modwen Logistics and Winvic Construction Ltd deliver a 147,000 sq ft warehouse, which has already been pre-let, and four Power Park 18 Á 16-19.qxp_Layout 1 03/05/2023 09:22 Page 2 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY additional buildings totalling 200,000 sq ft to help meet increased occupier demand for mid-sized industrial and logistics units in the East Midlands. As part of the first phase of development, to date, St. Modwen Logistics has invested more than £45m in delivering over 300,000 sq ft of sustainable warehousing across four units at St. Modwen Park Derby. Completed in December 2022, it has already attracted two international occupiers, with German heat pump manufacturer Vaillant signing for 131,000 sq ft and Swedish medical technology company Getinge establishing a new Global Centre of Excellence for Chemistry at the scheme alongside its new UK headquarters. Robert Richardson, development director at St. Modwen Logistics, said: “Our committed investments in St. Modwen Park Derby now exceeds £100m and our decision to embark on the next phase of development, underlines our confidence in Derby as a hub for logistics as well as high-skilled tech and manufacturing. We expect a diversity of demand for the new units and a wide variety of employment opportunities to be generated. The first phase of construction on the Park was a huge success and we are looking forward to working with Winvic again to deliver this next phase of development.” Meanwhile property developer HBD has completed Power Park in Nottingham, providing 426,000 sq ft of industrial and logistics space. Construction began in May 2022 following a £53.8m forward-funding deal with Oxenwood Logistics Fund 1 SLP, a discretionary fund managed by Oxenwood Real Estate. The project has transformed the former home of Imperial Tobacco, one of the city’s best-known sites, with seven sustainable new buildings across the 28-acre development. Justin Sheldon, director and head of region at HBD, said: “It’s Sinfin Commercial Park 16-19.qxp_Layout 1 03/05/2023 09:22 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY fantastic to see the regeneration of the site now complete. Power Park provides sustainable Grade A space in a prime industrial location. Supply remains constrained throughout the region and our decision to develop Power Park demonstrates our confidence both in the scheme and established demand.” Jeremy Bishop, co-founder of Oxenwood, added: “Power Park is a high-quality development for Nottingham and for our fund. The variety of unit sizes and their specification are designed to address the regional demand in a market with an acute undersupply of 30,000 – 150,000 sq ft units.” Offering a plethora of smaller units, developer Chancerygate recently achieved practical completion on its 55,000 sq ft urban logistics scheme in Brackley, South Northants. Comprising 14 Grade A units ranging from 2,100 to 19,200 sq ft, Chancerygate development director, George Dickens, said: “There is already strong demand from businesses in Brackley and the surrounding region for high-quality, sustainable urban logistics accommodation on both a freehold and leasehold basis. The region has a shortage in supply of small to medium sized Grade A industrial and warehouse accommodation. Boundary43 will act as a key development to meet this demand. The scheme’s strategic location in one of Brackley’s most prominent industrial estates means occupiers will be best placed to serve both the town and wider region.” Moreover, Roe Developments has begun construction on a multi-million pound scheme in Clay Cross near Chesterfield, transforming the second phase of Wingfield View Business Park, which will see the creation of around 65,000 sq ft across 16 high specification industrial / logistics units ranging from 2,000 to 12,000 sq ft. Showing appetite amongst investors for East Midlands industrial and logistics property, last month further saw a portfolio of seven fully-let units totalling 55,780 sq ft on Crow Lane Industrial Park in Northampton acquired by a £150m multi-let urban logistics investment fund. Managed by JR Capital and Chancerygate, the fund has acquired the industrial estate from asset management company Columbia Threadneedle Investments. All values relating to the transaction are undisclosed. Independent property company, Hortons’ Estate Ltd, meanwhile, expanded its industrial portfolio with the multi-million pound acquisition of Sinfin Commercial Park, a prominent, multi-let industrial and logistics estate approximately two miles south of Derby city centre. The 26-acre site consists of 21 fully occupied warehouse units, totalling more than 135,000 sq ft, and includes almost eight acres of additional open storage and development land. These represent just a few key deals and developments that have taken place across the East Midlands since Business Link’s last issue, with the buoyant industrial and logistics property sector continuing its busy legacy. Boundary43, Brackley 16-19.qxp_Layout 1 03/05/2023 09:22 Page 4Next >