< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Chesterfield mortgage brokerage acquires counterpart Chesterfield mortgage brokerage, Mortgage 1st has acquired Peak Mortgages & Protection. Formed in 2008, the family-run company has grown exponentially. During that time Mortgage 1st placed over 10,000 mortgages in arranging £1.67 billion of lending. The move will see Mortgage 1st increase to over 70 staff and follows the launch of their insurance brand, Protection 1st. Mortgage 1st director Jon Stones said: “The opportunity to bring Peak into Mortgage 1st is a unique and ideal scenario. One that will see us continue to grow but also maintain our culture. We’re excited to welcome everyone from Peak into our team. We can’t wait to see how both brands continue to grow alongside one another.” Rhys Schofield, founder of Peak Mortgages & Protection, says: “We are extremely proud and privileged to be a part of Mortgage 1st. Working alongside like-minded people who share the same drive and dedication was an absolute must for me. Jon and Lisa have built a wonderful brand. Visiting their head office I knew this was the perfect home for Peak.” East Midlands rallies against faltering UK economy A rise in the number of East Midlands start-up businesses and a fall in the number of companies with late payments makes for cautious optimism in the region amidst a sluggish UK economy. According to research from the Midlands branch of R3, the UK’s insolvency and restructuring trade body, East Midlands start-ups rose by 3.7% in May, from 2,335 in April to 2,422. R3 Midlands’ figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show that the number of East Midlands companies with late payments on their books fell over the same period. R3 Midlands chair Stephen Rome, a director at law firm Thursfields, said: “These are encouraging statistics for our region and show that there is still scope for growth in the current environment. “The decrease in the number of local businesses with late payments is further positive news, particularly as the business economy is still facing the challenges of stubbornly high inflation, rising costs of materials and wages as well as a squeeze on consumer spending.” Portchester Equity extends UK rail portfolio with acquisition of Derby-based Yellow Rail Portchester Equity Ltd (PEL) has acquired Derby-based Yellow Rail Ltd, a £15m turnover rail engineering service company, strengthening its rail portfolio in the UK rail sector. PEL is committed to the rail sector and increasing capability and service offering to passenger and freight customers, through its financial strength and by optimising existing PEL rail assets (W.H. Davis and Davis Wagon Services). This acquisition creates strong synergies with the existing rail assets, well-established business relationships and highly complementary portfolios in the areas of freight wagon maintenance, freight field services and material supply services. Enhancements to the portfolio through the acquisition include the introduction of rail services to the passenger sector, engineering design services, bogie overhaul and repair services and wheel lathe systems and services. Yellow Rail will benefit from access to the rail-connected facility at Shirebrook on the Robin Hood mainline for the new acquisition, for both passenger and freight projects, whilst ensuring W.H. Davis continues its full commitment to freight wagon building and re-purposing activities. Stephen Rome © stock.adobe.com/ Elena © Stephen RomeFINANCE NEWS www.eastmidlandsbusinesslink.co.uk East Midlands Business Link Acquisition instrumental in Trent’s future growth Record Electrical Associates Ltd (REA) has been acquired by a pressure and temperature instrument specialist, having been advised by KBS Corporate deal executive Oliver Rigby during the process. REA operates from dedicated facilities in Stretford, Manchester, and offers high- quality analogue instruments to international businesses. The company was initially founded over 100 years ago and has successfully cemented itself at the forefront of a niche sector. REA has been sold as part of Alan Johnson and Christopher McGrail’s retirement plans, both of whom maintained active roles as directors in the business. “This was an exciting opportunity to represent a long-standing company,” advised Oliver. “I worked alongside Alan and Christopher to identify a quality buyer that would preserve REA’s legacy.” The successful acquirer is Trent Instruments, a Nottingham-based pressure and temperature solutions provider. Trent is a leading supplier of locomotive horns and the exclusive agent in the UK and Europe for Nathan AirChime. “Trent is an excellent buyer for REA,” said Oliver. “The two companies benefitted from a prior relationship which helped secure a great deal.” Jobs saved with the sale of homeware company Leonard Curtis, in conjunction with S T Bennett & Co, has sold a long established homeware designer and producer which entered administration on 24 May. D Mason Limited, a company funded by investors Baaj Capital LLP, has swooped for David Mason (Design) Limited. Operating from three premises in Chesterfield, the company had operated successfully for over 60 years developing and designing products for the wholesale market together with the creation of bespoke ranges for high profile clients. The homeware company, whose brands included David Mason Design, Foxwood Home and The English Tableware Company, had suffered from the adverse effects of the coronavirus pandemic and associated inflation. As a result of the need to shut down operations for a short period and subsequently increased shipping costs, cash flow and product pricing was adversely affected. Following a discrete AMA process to market the opportunity, without damaging the underlying business, the joint administrators, Alex Cadwallader of Leonard Curtis and Stewart Bennett of S T Bennett & Co, assisted by solicitors Crowell Moring LLP, completed a sale of the core business, brands and assets enabling seven employees to retain their jobs. Alex Cadwallader said: “I am pleased to confirm that we were able to complete a sale of this well-established business, both maximising the return to creditors and successfully transferring seven jobs to a new employer.” Jas Singh, owner and director of Baaj Capital, said: “This exciting acquisition accelerates Baaj Capital’s plan to invest across a wide spectrum of business opportunities. The Homeware Sector being only one area of interest. “Baaj Capital has actively funded acquisition of both distressed and solvent companies through many sectors over the recent past. David Mason Design incorporates both specialist product and innovative design with a reputation for quality and finish, and represents an exciting addition to the businesses trading with Baaj Support. “Our thanks go to the Leonard Curtis and ST Bennett Team and Company Management for their help in delivering this project.” © stock.adobe.com/ itchaznong © stock.adobe.com/ Ulf © stock.adobe.com/ OnchiraEco-friendly manufacturer secures further investment Producing sustainable products for warehouse storage, packaging and logistics, The Alternative Pallet Company, trading as PALLITE® Group, has received follow-on funding from the Midlands Engine Investment Fund (MEIF), provided by The FSE Group Debt Finance Fund and backed by the Recovery Loan Scheme. This latest £750,000 funding for the company follows a previous MEIF investment, which saw the company create 18 new jobs at its Wellingborough base, establish trading in new overseas markets, and more than double its sales revenues. The new funding will be used to create new roles in finance and operations, boosting capacity to meet increased demand and supporting the next phase of growth. Paul Etty, PALLITE® finance director, said: “We are delighted to have secured MEIF funding, which ensures we press ahead with our growth plans. Our products provide customers with environmentally friendly solutions to help reach their sustainability targets. “We are honoured to be a recipient of a King’s Award and excited to be taking this offering to more markets. FSE has continued to show an understanding of our business model and is able to invest where traditional lenders cannot.” East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS New timber frame factory gets the go-ahead Approval has been granted by Charnwood Borough Council for the creation of a new Space4 timber frame factory – believed to be the biggest in the UK – on the edge of Loughborough. The facility will bring up to 120 new jobs to Loughborough and the surrounding areas, whilst also utilising the latest automation technology as part of the manufacturing process. The factory will produce timber frame units for up to 7,000 homes a year and is set to be in full operation towards the end of 2025. Gareth Wicks, Managing Director Designate at Space4, said: “We’re delighted to have received approval for our new Space4 facility and I want to thank Charnwood Borough Council for their support. Not only will the development deliver up to 120 new jobs, it will also further our goal to place sustainable practices at the very heart of our developments. “We’re committed to creating vibrant, successful communities with the environment in mind. We’ll continue to work in partnership with the Council and other stakeholders to ensure our new Space4 factory delivers real benefits for local industry and the wider Loughborough community.” Survey shows growing contribution of manufacturing to East Midlands economy A new report from Make UK, the manufacturers’ organisation, and accountancy and business advisory firm BDO LLP shows that manufacturing is growing in importance to the success of the East Midlands economy, with the sector accounting for 16.4% of the region’s economy in 2022 (an increase from 15.9% in 2021), way above the national average of 10%. The report also shows an increase in 7,000 jobs in manufacturing in 2022 compared to 2021, up to 265,000. According to the report, which analyses the contribution of manufacturing to the East Midlands economy, the East Midlands was also the best performing UK area in terms of increasing its output in the last twelve months according to Make UK and BDO data. This is largely down to the strong recovery in the aerospace and automotive sectors which were initially slower to recover from the pandemic. Three subsectors account for almost half of manufacturing in the East Midlands. Food and drink remains the biggest manufacturing sector in the region accounting for almost a fifth of output (19.1%), followed by transport equipment (14.6%) and rubber and plastics (11.5%). © stock.adobe.com/ungvar © stock.adobe.com/AscannioWalkers to invest £58m in Leicester factory Pepsico has revealed a £58 million investment in its Walkers Leicester factory – its biggest investment in the UK in the last 25 years. The factory in Leicester is one of the world’s largest crisp factories and home to Walkers crisps and snacks, which celebrates its 75th birthday this year. The investment will see a new manufacturing line installed, the replacement of existing machinery with more sustainable equipment, as well as an extensive upgrade of employee facilities for the site’s 1,120-strong workforce. Pepsico has invested more than £120 million in its UK manufacturing operations and supply chain since 2020. Jason Richards, senior vice president and general manager, Pepsico UK & Ireland, said: “In 2023 we’re celebrating 75 years of Walkers crisps, so there’s no better time to renew our commitment to Leicester – a city and community that have been crucial to our success in the UK. “As we look ahead to the next 75 years and future-proof our UK operations, this £58 million investment will transform our manufacturing site and installing state-of-the- art equipment will help us deliver on our ambitions on packaging and health. “Alongside upgrades to meet increased demand for our snacks, we’re proud to be investing in creating better facilities for our people, who remain at the heart of bringing our most loved snacks to households across the country.“ www.eastmidlandsbusinesslink.co.uk East Midlands Business Link MANUFACTURING NEWS Rolls-Royce Submarines to expand site in Derby Rolls-Royce has revealed plans to almost double the size of its Raynesway site, creating hundreds of new jobs in Derby. Funded by the MoD, the site development is required to meet the growth in demand from the Royal Navy and as a result of the recent AUKUS announcement. In March 2023 it was confirmed that Rolls-Royce Submarines would provide all the nuclear reactor plants that will power new attack submarines as part of the tri-lateral agreement between Australia, the UK and US. This increase in demand will see new manufacturing and office facilities being built on recently acquired land surrounding the existing Raynesway site. It will also create 1,170 skilled roles within Rolls-Royce across a range of disciplines, including manufacturing and engineering. Rolls-Royce Submarines president Steve Carlier said: “This is a truly exciting time for our business, with work secured that will see us support UK and Australian submarines well into the second half of this century. It will see thousands of jobs created across the UK supply chain, many of which here in Derby, and we’re proud to be playing our part in this international endeavour. “For over 60 years we have provided the power to the Royal Navy’s nuclear submarines and our expansion plans are the first step in helping Australia acquire their own nuclear propulsion attack submarine capability, while showcasing British innovation and expertise on the world stage.” Minister for Defence Procurement, James Cartlidge, said: “This is a crucial investment and a significant next step in ensuring we have the capacity, skills and nuclear expertise to support the UK’s current and future submarine programmes, including the next- generation nuclear-powered submarines for the UK and Australia through our AUKUS partnership. “Supporting hundreds of high-skilled jobs in Derby, this investment demonstrates this Government’s unwavering commitment to the defence nuclear enterprise and growing the UK economy.” © stock.adobe.com/jeson Image courtesy of Rolls-Royce © stock.adobe.com/maydayPROPERTY NEWS New film studio moves a step closer for Derby Plans to bring back to life a long-time redundant factory on the edge of Derby city centre have taken a massive step forward. Damien Walters Limited, working in conjunction with MARV, have completed the purchase of the 80,000 sq ft former Aida factory on City Road at Chester Green from Derby City Council. The process follows twelve months of detailed work between Derby City Council and a team of locally based consultants working with Damien Walters. With temporary planning permission already in place for part of the building, a detailed planning application will be submitted shortly to fully repurpose the site with construction work expected to begin at the end of Q4, 2023. The proposal puts forward that Derby City Gymnastics Club and Gym will relocate from Chapel Street with a new stunt training academy to be incorporated into the new gym. Three film studios are to be created within the older part of the building, which runs down the full length of City Road. The final phase involves the delivery of a new world class rehabilitation centre for elite sports participants and the wider stunt industry. Two new brands sign up to busy roadside retail development in Rutland UK property developer Godwin Developments has signed up two new food and beverage brands, Costa Coffee and Wendy’s, at its roadside development Ram Jam Services. Costa Coffee has taken a 1,788 sq ft unit whilst Wendy’s, via its franchisee Blank Table Ltd, has signed up to 3,305 sq ft. These deals follow Godwin’s letting to Loungers, a nationwide operator of all-day café-bars and restaurants, which recently signed up to a 4,500 sq ft unit for their new concept, Brightside. Ram Jam Services is positioned alongside the main arterial route from Peterborough to Grantham, next to an established petrol station, a new bakery and is only 15 minutes away from Rutland Water – one of the largest man-made lakes in Europe. A busy roadside development, the site serves c. 41,500 vehicles passing the site daily as well as residents of the local area. Following the lettings to Loungers, Costa Coffee and Wendy’s, there is only one unit comprising 754 sq ft available of the four units developed by Godwin at Ram Jam Services. East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Construction underway on Derby’s new Becketwell performance venue as building contract awarded Derby’s new £45.8m performance venue has reached a new milestone, with Derbyshire-based construction group Bowmer + Kirkland awarded the building contract – and construction work now underway. The new 3,500 capacity entertainment and events venue forms phase two of the £200m Becketwell regeneration scheme, which is the most significant urban regeneration scheme in the city for more than 30 years. The new performance venue will be built on the site of the former Pennine Hotel, Laurie House offices, multi-storey car park and Pink Coconut nightclub in Colyear Street and Padley House in Becket Street. It will be owned by Derby City Council and leased to and operated by ASM Global, the venue management and services company, and producer of live experiences. Bowmer + Kirkland took over the site in June and practical completion is scheduled for January 2025, just a couple of weeks later than was originally planned. L-R: Ward councillors Martin Repton and Carmel Swan, Damien Walters, Cllr Nadine Peatfield, ward councillor Alison Martin and Russell Rigby Paul Morris and Dan Murray, directors of St James Securities (centre left), Nadine Peatfield, deputy leader, and Baggy Shanker, leader, of Derby City Council (centre right), are pictured with representatives from B + K and ASM Global on the site of Derby’s new £45.8m performance venuePROPERTY NEWS Nottingham College to build new Construction Skills Centre The Government has awarded Nottingham College £4m from its post-16 capacity fund, to develop a new purpose-built construction skills centre, meeting surging local demand for vocational training in the construction sector. The college will itself invest £1.2 million to develop the centre, creating capacity for more 16?–?18 year-olds to access construction training within the city. Population growth, coupled with increased demand from young people, and increased demand for construction skills from employers in our region, provided a compelling case for the Government to confirm its £4m grant. It means that by September 2024, a new construction skills centre will be open at the College’s Basford campus, already home to the region’s largest construction training facility. These new additional places, on offer within the new skills centre, will mean that up to around 1,000 young people, between the ages of 16 and 18, will be able to access construction training and qualifications every year, on top of the many adults and apprentices the college trains. A detailed planning application for the new centre has already been submitted, reflecting the tight timescales of the project which must be open by September 2024. Leicester-based technology innovator establishes new head office in the city Cyferd, an innovative software company, has set up a new head office and AI research hub in a historic building close to Leicester city centre. The decision to set up in Leicester reflects the company’s commitment to the UK tech sector and its passion for helping underrepresented groups advance their journeys to successful careers in technology. The new head office is based in the Grade-II listed former Fielding Johnson Hospital building on Regent Road, close to Leicester’s two universities. The company’s founder and CEO, Ranjit Bahia said: “We are thrilled to be establishing the new tech hub of the UK, here in Leicester. Our vision is to bring together the brightest and best minds from all corners of the country in our new AI R&D facility. We aim to inspire the youth of Leicester and the UK, and show them that they could have a bright future ahead in the world of tech at our Leicester hub.” Housebuilder submits plans and exchanges contracts to deliver £20m residential development in Matlock Housebuilder Honey has submitted plans and exchanged contracts on a 10.5-acre site in Matlock to deliver a £20.35m, 75 new home development. The proposed site, which will be called Hazel, is located opposite Matlock Golf Club on Chesterfield Road and was acquired from strategic land promoter Richborough Estates for an undisclosed sum. Subject to planning, Hazel will comprise a mix of one-, two-, three- , four- and five bedroom homes and will include maisonettes, terraces, semi-detached and detached properties. The development is Honey’s second in Derbyshire, with the company recently being granted planning permission to build its £14m, 50-new home Amber development in South Normanton, near Alfreton. If given the go ahead by Derbyshire Dales District Council, work at Hazel is anticipated to start in December with the first residents expected to move into their new homes next August. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY J une was a month full of news for industrial and logistics property, from new developments getting underway, to new plans being revealed, to new schemes reaching completion. In South Wigston, near Leicester, developer Chancerygate achieved practical completion on a 128,000 sq ft Grade A urban logistics scheme with a gross development value in excess of £23m. Known as Genesis Park, the development comprises 15 urban logistics units ranging from 4,800 sq ft to 18,570 sq ft available on a freehold or leasehold basis. Chancerygate development director and head of its Birmingham office, Mark Garrity, said: “Genesis Park is a fantastic new addition to South Wigston’s well-established The East Midlands’ industrial and logistics offering grows From works starting to completion being achieved, the East Midlands has witnessed a busy month for industrial and logistics property. The East Midlands’ industrial and logistics offering grows www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY warehousing and logistics area. Our new development provides occupiers with much-needed sustainable, high specification urban logistics accommodation in a well-connected strategic location within the East Midlands. We have every confidence Genesis Park will be an enduring economic asset for the area, ensuring businesses are best placed to grow and deliver ongoing job creation.” Meanwhile at Fairham Business Park in Nottingham, Hines, a global real estate investment, development, and property manager, in a joint venture with a global investment manager, delivered three modern industrial units, spanning a total of 268,814 sq ft, ranging in size from 65,810 to 101,775 sq ft. The joint venture acquired the site from Clowes Developments, who is acting as development manager, in a forward funding transaction. In total, the joint venture in conjunction with Clowes Developments is developing eight warehousing and light-industrial units covering a total of 1.15 million sq ft across the East Midlands. In 2022, Work has finished on Genesis Park, a 128,000 sq ft urban logistics development in South Wigston 18 Á East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 195,000 sq ft of space was delivered by the joint venture at Dove Valley Park in South Derbyshire, and the remaining units under development, at Castlewood Business Park and East Midlands Distribution Centre, are expected to complete during 2023. Greg Cooper, Managing Director at Hines in the UK, said: “We continue to meet the needs of occupiers, delivering high-quality logistics space in a supply constrained market. Each of the three units at Fairham are high specification, with BREEAM ‘excellent’ certification achieved including EV charging infrastructure and the ability to support the installation of solar photovoltaic (PV) panels. We look forward to continuing our work with Clowes to deliver the remaining space at Castlewood Business Park and East Midlands Distribution Centre this year.” Also marking the closing of works last month, St. Modwen Logistics has completed a £15m, 111,000 sq ft sustainable warehouse, as part of the fourth phase of development at St. Modwen Park Lincoln, which could save occupiers more than £90,000 a year in operational energy costs. Delivered by Caddick Construction, Lincoln 111 becomes the biggest unit at the site. Ben Silcock, leasing & development manager, St. Modwen Logistics, said: “We are always striving to develop industry- leading warehouses in fantastic locations for our customers and Lincoln 111 is a prime example of this. As well as being near to the vital A1 interchange and benefitting from crucial infrastructure works in the region of late, the building is also best-in-class when it comes to both the quality of the development and its sustainability credentials.” Reserved matters planning consent has also been achieved for the fifth and final phase of development at St. Modwen Park Lincoln, which will see its capacity total 740,000 sq ft in the coming years. Bringing further new logistics space for the region, GLP is set to speculatively develop 1.4 million sq ft across four units at logistics park Magna Park Lutterworth. GLP has received detailed planning permission for four new warehouses, three in Magna Park South — MPS Unit 9 (388,000 sq ft), MPS Unit 10 (119,000 sq Three industrial units have been delivered at Fairham Business Park in Nottingham www.eastmidlandsbusinesslink.co.uk East Midlands Business Link COMMERCIAL PROPERTY ft) and MPS Unit 11 (136,000 sq ft) — and one building in Magna Park North — MPN 5, measuring 761,000 sq ft. All units are due for practical completion by the end of Spring 2024. MPN 5 will be a BREEAM Outstanding building with all three other developments planned to achieve BREEAM Excellent. Each unit will be net-zero in construction and independently certified by the Planet Mark. GLP are also currently building a 200-acre Country Park to enhance the park’s facilities and provide recreation areas for customers and the wider community, and last year partnered with North Warwickshire and South Leicestershire College and Wincanton to house The Centre for Logistics, Education and Research (CLEAR) – a research, innovation, education, and training facility for both customers on the park and the wider logistics industry. Magna Park Lutterworth now has only one building available to lease, MPS 5 (187,253 sq ft), with a further two build to suit plots available for development, MPN 7 (411,000 sq ft) and MPN 6 (840,000 sq ft). In the last two phases of spec development, the park welcomed customers such as Bleckmann, Iron Mountain, LX Pantos and Unipart. Joe Garwood, senior development director at GLP, says: “We are extremely pleased to announce such a significant level of speculative build across our flagship UK logistics park. This is a testament to our confidence in the resilience of the UK logistics market and the strategic importance of the Midlands in particular. We have seen huge success with our speculative development programme at Lutterworth to date, attracting a wide range of top-tier customers, and we’re confident that we will see strong demand for this new space. Once finalised and occupied, the four units will generate hundreds of employment opportunities and contribute towards the economic growth and commercial upskilling of the Midlands region.” Moreover, work is now underway at the latest phase of Dove Valley Park, the 200- acre industrial and distribution development in Foston. Clowes Developments and their professional team including IMA Architects, CDS Engineers, and Savills, acting as Employers Agent, are bringing forward site 10A. The development will see the construction of a new £8m facility that will become the new home of Terinex Flexibles, an OGM Holdings Group company and supplier of printed flexible packaging films and solutions used within the food, pet food and medical packaging industries. The 46,000 sq ft premises will feature production, warehousing and research and development facilities and include advanced sustainable energy systems to recover heat for re-use, and solar panels for generating power to operate the factory. OGM Holdings is aiming to create the most sustainable, low carbon footprint, flexible packaging factory in the UK. Completion of the building is expected in January 2024. It follows Asteer Planning revealing last month that it had secured full planning permission for a further 150,000 sq ft employment development at Dove Valley Park. GLP is set to speculatively develop 1.4 million sq ft across four units at Magna Park Lutterworth Next >