SHW Wins CoStar’s Q2 2022 Power Broker Quarterly Deals Award

CoStar Group, Inc., the leading provider of commercial real estate information, analytics and online marketplaces, today announced the CoStar Awards Quarterly Deals winners for the second quarter of 2022. SHW came out on top in the list of winners in the South East Office market for its letting to Bramble Energy at Atrium Court in Crawley.

The deal at Atrium Court was Crawley’s largest single office letting in three years, with the whole 33,978 sq ft HQ building taken on a new 10-year lease at £15 per sq ft.

The CoStar Awards Quarterly Deals winners are determined by the top deals executed every quarter, based on price and square footage.

Adam Godfrey, Partner at SHW, says: “What an honour to be recognised by CoStar for this deal at Atrium Court which showcased the resurgence in the office market for the Crawley area. Activity remains strong in the region and we look forward to sharing more office market news this quarter.”

For more information, visit: https://www.costarawards.co.uk/quarterly-deals/

SHW wins four-year framework with London Borough of Bromley

SHW, along with Montagu Evans, has been appointed by the London Borough of Bromley to its newly created Property Professional Services Framework agreement to support the efficient management and running of its estate.

Under the new four-year framework, SHW and Montagu Evans will provide advice and services ranging from rent reviews, business rates advisory, lease renewals, covenant releases, valuations and building surveys in addition to agency services covering all property sectors.

The Council’s estate comprises circa 2,500 assets, ranging from high value investment properties to schools, parks, and amenity land. Approximately 600 of these assets are either income-producing or part of the Council’s operational property estate.

David Marcelline, SHW’s Regional Partner for South East M25, says: “Having worked with the London Borough of Bromley previously, we are delighted to have been able to formalise our relationship with the team moving forward, combining our extensive range of professional and agency property services with our local knowledge and experience to serve them well and achieve the best outcomes.”

SHW is the largest independent surveying firm in the south-east. With offices in Bromley and Croydon, the team has a strong local presence and understanding of the market, supported by the resources of six additional offices in London and the south-east.

Pluto Finance appoints South West Lending Director

Pluto Finance is continuing its UK expansion with the appointment of Jonathan Scott as Lending Director (South West).

Jonathan will be based in Exeter, with a focus on funding housebuilders and developers across the South West of England. This latest hire follows the announcement of Evan Griffin’s appointment earlier this month - joining the specialist team as Lending Director for the Northern regions.

Jonathan joins Pluto Finance from Hampshire Trust Bank, where he spent five years as Lending Director, appointed to build the firm’s presence and client base across the South West.

Starting his career as a Business Manager at Barclays, Jonathan moved into Real Estate Management for the high street bank looking after a portfolio of over 200 UK property developers and investors. He then moved to Funding Circle UK as a Property Finance Specialist prior to his most recent role.

Jonathan comments: “I’m delighted to have joined this highly respected team where I will be focussing on lending to property developers and housebuilders with borrowing needs from £4m to £100m across the South West of England. Having focused solely on working with developers across this region over for many years, I’m looking forward to bringing my knowledge and experience of the South West market to my new role, extending Pluto’s specialist service to this area.”

Justin Faiz, Partner of Pluto Finance, comments: “Jonathan’s appointment is the next, significant, and strategic move in our push to expand our lending across the UK, following the joining of Evan Griffin for the Northern regions, along with two more Lending Director appointments made in March.

“This year we have grown our Lending Directors from three to seven, along with an increase in the support team to serve our expansion.”

Pluto Finance is backed by some of the world’s largest institutional investors and is currently funding the development of over 2,000 new homes in the UK. In 2021, the specialist lender announced a strategic investment partnership with the Universities Superannuation Scheme (USS), the UK’s largest private pension fund, to provide financing to SME’s developers, delivering new housing across the UK.

Changes to Building Regulations to Improve Energy Efficiency

Important changes to Building Regulations have now been introduced as a further step towards meeting ‘zero carbon’ targets for 2050.  These changes effect Part L, which governs the thermal performance of a building, Part F, dealing with ventilation, and the introduction of the new Part O, which deals with overheating of buildings.  The changes are all interlinked. As buildings become better insulated and more airtight, then overheating and ventilation become a more important consideration, heightened by the recent UK heatwave and the likelihood of temperatures continuing to rise.

These changes, of course, will require more upfront work in terms of demonstrating compliance, with building designs and specifications likely to evolve to fit in with new regulations. Buildings will not be getting any cheaper, but they should be better performing - if the works are undertaken correctly.

In summary, the changes will cover:

Primary Energy Source

Part L now includes a new measure of performance - the primary energy source. The type of energy used in a building now has a much higher weighting within the calculation of SAP assessments. Government has also changed the weighting of electricity, due to the increase in renewable energy sources (e.g. wind power). If using gas appliances, it will be very challenging to pass SAP for new homes.

There appears to be a bias towards Heat Pump technology. However, do note that efficacy is dramatically affected by the thermal qualities of the building fabric. There are also a whole host of alternate options, with new products coming to the market regularly. 

Thermal Performance of Building Junctions (aka thermal bridging)

Psi values are the measure of heat loss, for a meter length between two thermal elements, such as a wall and a floor. We will now need to demonstrate the psi values for junctions in a building. In most cases, the component parts of a wall or floor build-up vary widely. So, standard junctions and psi values are difficult to find.

Air Tightness

The level of air tightness is increasing, and all new flats or houses must be tested, not just a representative few, as before.  Effective and practical detailing will be critical to achieving these tighter requirements and builders may require guidance on how to achieve the required standards.

Overheating

Overheating is now a consideration under the building regulations. There is a 'simple' method for compliance, but this may impact on the appearance of a building. For anything which does not 'fit' the simple standard, a thermodynamic model will be required - a model which maps the internal temperatures of a design, across the seasons. 

Ventilation

As air tightness and overheating become more of a focus, ventilation strategies are adjusting accordingly – ‘airtight, vent right’. Ventilation rates are generally increasing, as buildings become less ‘leaky’.

Thermal Mass

The thermal mass of building fabric is now a consideration. Thermal mass is the ability to retain energy, within the fabric of a building and can help to balance internal temperatures.  In practical application for example, some insulation materials have a higher thermal mass than others, and this may influence specification choices. 

For more information and to discuss your requirements, please contact our Building Consultancy team.

Bridge Industrial Achieves Net-Zero Emissions for Primary Operations in 2021 & Targets Comprehensive Supply-Chain Decarbonization

Bridge Industrial (“Bridge”), a privately-owned, vertically integrated real estate operating company and investment manager, showcases dedication to comprehensive and accelerated portfolio-wide decarbonization by committing to ULI Greenprint, reaching net-zero status for primary operations, and embracing strategies to reduce emissions throughout its supply chain.

To jumpstart efforts in 2021, Bridge identified emissions related to primary operations (effectively Scope 1 and Scope 2 emissions) across its offices and operational assets – eight corporate offices and 19 industrial warehouse facilities spread throughout the U.S. and U.K. – and secured Renewable Energy Credits (RECs) and carbon offsets to achieve net-zero carbon status across primary operations. This milestone puts Bridge well ahead of the ULI Greenprint commitment – to which Bridge became an official signatory earlier in the year – of reaching net-zero operations by 2050.  

“We wanted to make sure we covered our own primary operations before looking at strategies to help tenants reduce their own emissions. We understand that tenant activity accounts for the majority of our total emissions, and because we don’t have direct control over their operations, it will take a cooperative approach for us to reach our carbon reduction goals,” remarked Francesca De Amicis, Vice President, Operations and Sustainability at Bridge.

Forging ahead toward net-zero emissions across all operations, Bridge is working to decarbonize its entire supply chain by addressing the embodied carbon in property development and collaborating with its customers to align decarbonization strategies with its tenants. The associated emissions from this upstream construction and downstream tenant activity (effectively Scope 3 emissions) constitute most of Bridge’s total carbon emissions.

Bridge continues to be proactive in mitigating carbon intensity along its supply chain. To address upstream construction, Bridge has partnered with BranchPattern, a consultant on LEED for New Construction, to evaluate net-zero strategies for minimizing embodied carbon and optimizing building performance. For downstream activity, Bridge has added green lease clauses in contracts that require tenants to share pertinent utility data and prioritize energy efficient operations. Through tenant engagement, Bridge is working to gather data and identify opportunities – such as potential for on-site renewable energy systems – for rapid reduction of carbon emissions.

Bridge’s ongoing efforts to offset emissions from both primary operations and supply-chain activity reflects the company’s ambition to leading the industrial real estate industry toward meaningful decarbonization that aligns with science-based targets to keep climate change within 1.5°C of pre-industrial levels. Through effective collaboration and strategy execution, Bridge’s emissions reduction framework will help decarbonize both Bridge’s supply chain and its tenants’ primary operations.

“We are happy with the initiative our team has taken to embedding decarbonization targets into our corporate strategy. We recognize that there is a lot of work ahead that will require diligent efforts and strong involvement from all Bridge stakeholders, and we feel prepared and determined to meet the challenge,” said De Amicis.

About Bridge Industrial

Bridge Industrial (www.bridgeindustrial.com) is a privately-owned, vertically integrated real estate operating company and investment manager that focuses on the acquisition and development of Class A industrial real estate in the supply-constrained core industrial markets of Chicago, Miami, New Jersey/New York, Los Angeles/San Francisco, Seattle, and London. Since its inception in 2000, Bridge has successfully acquired and developed more than 67 million square feet of industrial buildings/projects valued at more than $12.6 billion.

DETACHED SOUTH EAST WAREHOUSE BROUGHT TO THE MARKET

Logicor starts extensive refurbishment project in West Molesey, available to occupy Q4 2022

Logicor, a leading owner and manager of logistics real estate in Europe, has announced that a rare, detached warehouse in the South East of England has been launched to the market. Following an extensive refurbishment project, the c. 19,000 sq ft unit will be available to occupy in Q4 2022.

The unit is in a well-established industrial area of West Molesey, Surrey. The warehouse is 1.5 miles from Hersham and Hampton Court railway stations, providing a direct service to London’s Waterloo, with easy access to the A3, M3 and the wider UK motorway network.

The unit is undergoing a comprehensive refurbishment plan which includes the replacement of the wall cladding, a new roof covering, the installation of an air source heat pump and EV charging points.

James Carney, Logicor’s Senior Asset Manager, comments: “We are very excited to start this project, turning this space into a high-quality, sustainable asset and reducing its carbon emissions to provide much needed new industrial space within the South East.”

Hollis Hockley has been appointed as letting agent for the unit.

Logicor continues to be committed to the West Molesey industrial market and has recently completed the acquisition of another c. 20,000 sq ft asset in the area with the plan to redevelop it.

For more information, please visit https://logicor.eu/en/uk.

SHW’s Commercial Property Management Team Win’s CSR Award

SHW’s Commercial Property Management Team has won a coveted Gold Award for Initiatives at the International CSR Excellence Awards, for the Swan Shopping Centre in Leatherhead, Surrey.

The International CSR Excellence Awards recognises ‘companies that have heart’ – responsible, caring companies across all business sectors that go the extra mile in their Corporate Social Responsibility activities.

The initiatives recognised in the Gold Award for the Swan Shopping Centre include:

Waste initiatives

• Minimising waste by reducing and reusing as many items as possible, including old furniture and shopfitting, and recycling anything cannot be used again

• Encouraging tenants to have recycling points within their shops for household items

• Using a local waste collector, reducing the number of miles needed to travel to collect the centre’s waste

• Collecting green waste from landscaping, which is then composted in a treatment plant in Petersfield, Hampshire and re-used in the shrub borders and beds on the landscaping contractor’s other schemes

New LED lighting

• The centre has moved from florescent lighting to LED lighting within the mall area and car park reducing energy and saving money

• In 2022 all lighting within the back service corridors will also be replaced making the whole centre 100% LED lighting

Electric Vehicle Charging Points

• In 2021, two electrical vehicle charging points were installed within the car park so that electric vehicles are able to recharge while visitors do their shopping

• Locals are also able charge their cars here over night if they don’t have access to convenient electric points at home

Other Centre initiatives

• Installing a water fountain to encourage visitors to reuse their water bottles instead of using disposable bottles

• introducing reusable cloth shopping bags and refillable cups for our customers in centre giveaway days.

• The Housekeeping team are now using refillable cleaning spray bottles and their cleaning solutions come in smaller environmentally degradable packaging. This has reduced the plastic waste and packaging by over half within this area

Robin Howland, Partner at SHW, says: “We have worked very closely with the team at the Swan Shopping Centre to make their property work for them, for their customers and visitors to the centre and for the local community, exploring and implementing all opportunities possible to create a sustainably run centre. We are delighted that these joint efforts have been recognised with a CSR Excellence Awards and our work continues here at the Swan Centre and at our other properties under management.”

Councillor Claire Malcomson, Mole Valley District Council Cabinet Member for Climate Change, said: Congratulations to the whole management team at the Swan Centre! We are delighted that many of the Mole Valley District Council climate change and sustainability initiatives have been recognised by the International CSR Excellence Awards and we look forward to progressing many more in the future.”

Plans submitted for second phase of Liberty Park, Lichfield

Logicor, along with development manager Stoford, has submitted proposals for the second phase of development at Liberty Park in Lichfield, Staffordshire.

Plans have been put forward to Lichfield District Council for the final renaming plot of land at the southern end of Liberty Park on Burton Old Road in Streethay, following the culmination of a public consultation event for local residents.

The scheme proposes two options of either a single 283,000 sq ft industrial logistics building or two separate units of 80,000 sq ft and 150,000 sq ft, both including integral office space and parking.

Both options benefit from strong sustainability credentials, including BREEAM ‘Excellent’ and an EPC rating of ‘A’, targeting net carbon zero in operation.

Liberty Park, Lichfield is a 32-acre site in an established industrial location approximately 16 miles north of Birmingham. The northern part of the scheme was developed in 2019, with two industrial and logistics units of 115,000 sq ft and 48,000 sq ft that are now fully operational.

The site fronts the A38 and benefits from easy access to the M6/M42 and the M1 North and is just a few minutes’ walk from Lichfield Trent Valley train station. It lies adjacent to Britannia Enterprise Park, where local occupiers include DHL, Newell Brands, Florette, Tesco and Screwfix.

Anthony McCluskie, Logicor’s Director, Asset Management, comments: “With the success we had on leasing the two existing units at Liberty Park Lichfield, we are excited to work with Stoford as our Development Manager on this scheme, as we submit planning proposals to bring forward the remaining land to create modern, sustainable logistics space.”

Stoford Director, Edward Peel, said: “We are delighted to bring forward proposals for the final phase of Liberty Park, Lichfield, having been involved in the site for more than 20 years. The park is based in the heart of the Midlands, with excellent transport links and has generated significant interest from occupiers. We are putting forward two options for the development of the remaining land, which reflect current market demand.”

Avison Young and CBRE are retained as letting agents at Liberty Park.

https://libertyparklichfield.co.uk/

Bridge Industrial Announces Formal Launch of its ESG Program

Bridge Industrial (“Bridge”), a privately-owned, vertically integrated real estate operating company and investment manager, announced today the formation of its environmental, social, governance (ESG) program and that it is working with ESG consultancy firm Verdani Partners (“Verdani”) to ensure the smooth integration of the newly established program throughout the company’s corporate culture. In establishing the program, Bridge aims to create lasting value through sustainability.

To help spearhead the program, Bridge promoted Francesca De Amicis as the firm’s Vice President of Operations and Sustainability. In this role, Francesca will be responsible for the implementation of policies and strategies which support and drive the organization’s ESG goals and will facilitate coordination between Bridge and Verdani.

“We are impressed with Verdani’s track record of developing industry leading ESG programs for commercial real estate portfolios. At Bridge, we want to demonstrate ESG leadership, and with Verdani’s partnership, we feel confident that we can make significant strides toward reaching net zero emissions and advancing decarbonization efforts in the industrial sector,” said De Amicis.

As part of its comprehensive ESG program, Bridge has established environmental, social, and governance initiatives that align with the company’s visioned corporate impact.

Environmental – Bridge seeks to create value through innovative and sustainable practices that centre around environmental conservation, decarbonization, and resilience. To do so, Bridge will focus on operational excellence for reduced resource intensity as well as strategic positioning in green buildings and climate resilient assets to improve energy efficiency and ensure the longevity of its portfolio. 

Social – Through emphasis on engagement and education, health and well-being, and diversity, equity, and inclusion (DEI), Bridge believes in fostering a healthy, vibrant, and diverse workforce, partnerships, and communities. To drive positive community impact, Bridge tailors its projects to meet local community needs and involves itself in community improvement initiatives that extend beyond individual asset performance.

Governance – Priding itself on strong business ethics, transparency, and integrity, Bridge is committed to creating lasting value for stakeholders by infusing ESG into its corporate identity and leading through demonstrated performance.

“As the industrial sector continues to experience tremendous growth and seemingly unlimited demand, we believe it is our job as a leader in the industry to take the initiative on driving sustainable efforts in the sector,” said Steve Groetsema, Chief Operating Officer and Partner at Bridge. “Discussions around ESG and sustainability are not new to the commercial real estate industry, but the conversation holds more gravity now than ever before as we witness first-hand the irrefutable need for greater resilience and regeneration of assets. We’re proud to be at the forefront of this conversation, working diligently to create lasting value for our tenants and investors alike.” 

Bridge has already demonstrated commitment to ESG excellence by partnering with USGBC, ULI Greenprint, EPA’s Energy Star Program, ISSP and Measurabl, all leading organizations in sustainability. With assistance from Verdani, Bridge will strengthen alignment with UN Sustainable Development Goals (SDGs), establish a roadmap strategy to reach net zero emissions across all operations, and will report to the GRESB Real Estate Assessment for the first time this year.

Endeavour House, Crawley, now fully let

Croudace, advised by joint agents SHW and Altus Group, has let the remaining 2,000 sq ft at Endeavour House in Manor Royal, Crawley, West Sussex, to Taylor Maxwell. The 20,000 sq ft office building is now fully let.

Endeavour house is strategically located 30 miles from central London, accessible via a range of transport links, only 3 miles from Gatwick airport, 12 miles from the M23/M25 interchange and a 30-minute train journey to London Victoria.

The building has undergone an extensive refurbishment over the ground and two upper floors, providing grade A offices with new VRF air conditioning, a new feature glazed entrance and a refurbished 10-person lift. This property also provides 95 car parking spaces, allocated with EV charging points.

In 2021, the ground floor was split and subsequently let, with the Ground Floor West (1,900 sq ft) going to Magus Wealth and Ground Floor East (4,000 sq ft) to Bupa in November and December 2021. Following this success, the first floor was also split with the First Floor East (4,000 sq ft) let to Sivantos in February 2022 and the remaining space (First Floor West) now let to Taylor Maxwell.

Laura Miles, Director at SHW, comments: “We are delighted that following a split of the floors there has been a flurry of lettings resulting in a fully let Grade A office building on Manor Royal. This is extremely positive news following the last two years of restrictions and has shown that, despite some office occupiers downsizing, there has been a ‘flight to quality’ to encourage staff back to the Gatwick / Crawley area, with headline rents remaining high.”

Vengrove Continues Residential Investment Activity With London Portfolio Acquisition

Vengrove, on behalf of VRE Social Housing Partners (VRESHP), has completed the off-market purchase of seven freehold residential properties in North London.

The acquisition adds a further 62 units to the VRESHP portfolio and will provide affordable housing to individuals and families. Vengrove will continue to manage the properties and work closely with selected charities and registered housing providers to ensure they are used by those in need of affordable housing.

Vengrove’s social and affordable housing portfolio is spread across the country with 750 units currently under management and a further 200 units under offer. Vengrove now has direct relationships with 10 registered providers and charities offering accommodation in the affordable, general needs, specialist supported and transitionary supported sectors.

Tim Lucas, Head of Asset Management at Vengrove, commented “As the cost-of-living crisis deepens the need for high quality, affordable accommodation becomes greater and greater. Our Partners in this space have reported a significant increase in demand for affordable housing and Vengrove remain committed to providing quality accommodation at sustainable rents.”

SHW Shortlisted for the Insider South East Property Awards 2022

SHW has been shortlisted in two categories for the Insider South East Property Awards 2022: Agency Team of the Year and Property Deal of the Year for the letting of Queen Square House, Brighton.

Insider South East Property Awards recognises the commitment, hard work and achievements of property professionals across the region, showcasing the best developments, the most successful firms and the most significant deals of the last 12 months.

A panel of expert judges were assembled by Insider to run the rule over all the entry submissions before determining the shortlists.

Russell Markham, SHW’s Managing Partner, comments: “What an honour to be selected in the shortlist for Agency Team of the Year, a reflection of the dedication our team has shown in collaborating closely with our clients to make their property work for them and the wider community. To be shortlisted for Property Deal of the Year also is the icing on the cake.”

The winners will be unveiled at a special black-tie dinner taking place at the Crowne Plaza Hotel, Felbridge on 14 July 2022.

SHW Great Walk

The SHW Great Walk took place this Saturday in the Surrey Hills, with SHW team members, family members, friends and dogs all taking part, along with Tom Crowe from Sport in Mind – one of SHW’s charity beneficiaries.

The circular route started at the bottom of Box Hill, before heading into Westhumble, across to Ranmore and eventually dropping into the Denbies Wine estate. Some opted for just 1 loop which was just under 8 miles, whilst others opted for 2 loops with a short stop for a packed lunch in between.

The weather couldn't have been better, warm with a light breeze to keep us cool. Each loop took approximately 2hrs 45 mins, with the team finishing in the pub at around 5pm to enjoy a well earnt BBQ!

No one got too lost, and it was great to be able to spend time talking and walking with lots of different people from across the firm. Most importantly, the team raised £716.40 (incl. gift aid) for our SHW charities via the normal £5 entry plus many generous donations from friends and family.

Residential Investors benefiting from SHW’s England wide one-stop-shop

Commercial Property Management and Residential Block Management are widely recognised services offered by SHW.  We also offer a well established and dedicated Private Rented Sector Management Department, managing houses, flats and blocks of flats let on Assured Shorthold Tenancies, Regulated Tenancies and Company Lets across England.

SHW recognises the attraction of residential investment, especially with property prices rising and more people renting than in previous generations.  We also know that holding such a portfolio is not always straight forward.  Letting a property can be a complex business including tax implications, potential void periods, risks of rent arrears and increasing costs of compliance, such as those arising from the recent Fire Safety Act in respect of buildings comprising two or more dwellings.  There are also incoming changes to smoke & Carbon Monoxide alarm legislation. Furthermore, the Governments new proposals to drive up the quality of homes for renters by way of a revised Decent Homes Standards could result in further compliance costs for some investors.

Whether you are an investor or a corporate landlord with a portfolio of residential units, we would be pleased to manage your portfolio let on Assured Shorthold Tenancies, Regulated Tenancies and Company Lets, including single units, blocks with common parts, and mixed-use. At SHW we oversee the letting of vacant dwellings, manage the day-to-day running of your portfolio, monitor changes to legislation, guidance, and good practice to keep your personal risk exposure in check, manage rent reviews and collect rental payments.  You will benefit from a dedicated client manager to manage your portfolio supported by an experienced team.

Our dedicated Property Managers and assistant property and letting managers’ qualifications include Members of RICS and ARLA Propertymark and we focus on managing in compliance within the Private Rented Sector Code of Practice and providing our clients and their tenants with the best level of service. We also have a highly experienced client accounts department, using software that generates bespoke client reporting.

Having a department solely dedicated to the management of portfolios for clients investing in the Private Rented Sector, SHW manage portfolios ranging in scale from a handful of dwellings through to over 200 units. We currently manage portfolios spread between the South-East across to Cornwall and up to Yorkshire.

Duncan Bannister, Director and Head of SHW’s Private Rented Sector Management Department comments “We have clients whose portfolios were previously managed by several different agents across the country, who are now pleased to have a good rapport with one management team and to receive bespoke comprehensive reporting at a competitive fee”.

Bhavesh Yagnik BSc (hons) MRICS – Head of Property at Day Lewis PLC has stated “Day Lewis PLC have been very happy with SHW since they took over the management of our residential portfolio in 2014. The PRS department have always provided a professional and high level of service to both Day Lewis and our tenants through quick and efficient communication and their expertise within the industry. This has resulted in high tenant retention and low arrears across the portfolio.”

For any queries or information please contact me at dbannister@shw.co.uk.”

Pluto Finance launches new Streamlined Bridge Product

Pluto Finance has launched a new Streamlined Bridge Product, offering a streamlined credit process for a variety of property assets from land to retail, with loan sizes from £750,000 to £5million, at up to 75% LTV, with rates starting at 0.44% per month.

The new Streamlined Bridge Product has been designed to improve responses to enquires, with an estimated turnaround of terms within three hours, with new additions to Pluto Finance’s legal panel and simplified rate cards for various scenarios to make client and broker understanding of pricing and leverage easier.

Simon Chapman, Pluto Finance’s Lending Director, comments: “In addition, we have introduced valuation panel management to further enhance the speed of decision and understanding of wider geographic locations. With a new slimmer security package and simplified facility letter, the enhanced completion mechanics also include using DocuSign to speed up the completion process.”

In addition to the new Streamlined Bridge Product, Pluto Finance’s lending products include Senior Development, Stretched Senior Development, Bridging and PRS Term loans.

Pluto Finance is backed by some of the world’s largest institutional investors and is currently funding the development of over 2,000 new homes in the UK. In 2021, Pluto Finance signed a new partnership with the UK’s largest private pension fund USS (the Universities Superannuation Scheme).

https://pluto-finance.com/bridging-finance/

B&M SIGNS LEASE EXTENSION IN RUNCORN WITH EXPANSION PLANS

Logicor, a leading owner and manager of logistics real estate in Europe, has announced that B&M, one of the UK’s fastest-growing variety retailers, has agreed a lease extension at its Onyx 350 warehouse in Runcorn, UK which will support its expansion plans. 

A new lease has been secured for the 343,312 sqft existing premises and Logicor has committed to developing an additional c.112,000 sq ft of warehouse space for the growing retail business. Following completion of these works in 2023, a new 10-year lease will commence on the new warehouse which will total c.455,000 sq ft.

Located in one of the North West’s prime distribution locations in the east of Runcorn, the 300-acre Manor Park Industrial Estate is adjacent to the A558 which provides easy access to the M56 and also benefits from the recent completion of The Mersey Gateway Bridge, to improve connectivity between Merseyside, Runcorn and the Midlands. The park is home to several other well-known national and international companies.

B&M will continue occupying the existing building during construction of the new warehouse space. The expansion works will include the extension of the service yard to the north and the east, eleven new loading docks, two additional level access doors and 32 additional HGV parking spaces. 

Tom Blakely, Logicor Director, UK Asset Management, comments: “With B&M’s expectations to increase employment in Runcorn, we worked closely with their team to understand their expansion needs, working to keep them in the premises and location that they know well, and to design the right space for their expansion needs.

“As part of the new development, we’ll also upgrade their existing warehouse to provide LED lighting throughout, for the benefit of staff and the environment, and delivering a BREEAM certified asset.”

Planning permission is submitted and building works are expected to start in Q3 2022, with planned completion expected in the first half of 2023.

Vengrove acquires Reading site for mid-box logistics development

Vengrove has completed the off-market acquisition of two acres of brownfield development land in Reading for VRE Industrial Partners (VREIP), its UK value-add industrial and logistics strategy. 

The site, which formerly served as the HQ for AutoTrader and currently comprises two former office buildings, has been purchased with the benefit of planning for a £16.5m (GDV) mid-box logistics scheme of circa 40,000 sq ft.

The development will aim to take advantage of favourable supply and demand dynamics in the Reading market, where there is an extremely constrained development pipeline.

The transaction is VREIP’s sixth since inception at the start of the year, following purchases in Park Royal, Manchester, Sheffield, Stoke on Trent and Seaham.

Will Hunting, Partner & Head of Investment at Vengrove, commented, “The acquisition of the Reading site marks VREIP’s first ground up development deal and is an example of Vengrove’s capability as a truly vertically integrated fund manager. Utilising our inhouse development and project management team to support the due diligence process and, post-acquisition, managing the development through to PC. Once built, the new unit will provide fantastic balance to VREIP’s portfolio, adding a high-quality unit with strong sustainability credentials, targeting BREEAM Excellent, in a prime Thames Valley location.”

Vengrove was advised on the transaction by Clay Street Property Consultants, Dentons and Nova-Ambiente.

Pluto Finance launches new Streamlined Stretched Development Finance product

Pluto Finance has launched a new Streamlined Stretched Development Finance product, offering a streamlined credit, legals and due diligence process for residential and mixed-use, new build and conversion projects.

With loan sizes from £5m to £15m, for experienced SME developers and housebuilders, the typical loan term will be 21 months, with margins from 5.75% depending on LTGDV.

John O’Donnell, Pluto Finance’s Lending Director, comments: “This new lending product is designed to improve existing funding options for the SME space - for these developers to benefit from Pluto’s expertise in lending on larger, structured facilities.

“With prompt decision making and a pro-active completion process, the lending options will enable established developers to maximise the use of their funds without having to resort to third party equity providers.”

The Streamlined Stretched Development Finance product can be used in conjunction with Pluto Finance’s Bridge and Development Exit offerings. In addition, peak debt facilities will be considered.

Pluto Finance is backed by some of the world’s largest institutional investors and is currently funding the development of over 2,000 new homes in the UK. In 2021, Pluto Finance signed a new funding partnership with the UK’s largest private pension fund (the Universities Superannuation Scheme) to further enhance its development finance offering.

In addition to the new Streamlined Stretched Development Finance product, Pluto Finance’s lending products include Senior Development, Stretched Senior Development, Bridging and PRS Term loans.

Bridge Secures its Largest UK Development Site to Date - Chadwell Heath Site Acquired for 333,000 sq ft Last Mile Logistics Development

Bridge Industrial (“Bridge”), the US-based industrial real estate operating company and investment manager, has acquired its sixth UK development site, in Chadwell Heath, from Be First - the regeneration vehicle for Barking and Dagenham Council.

Its largest acquisition to date, Bridge plans to develop 333,000 sq ft of last mile logistics space on the 13-acre, former Muller Dairies site in East London, which will be known as Bridge Point Enterprise East.

The former milk processing plant is situated within a prime London logistics location, close to both the A12 and the Elizabeth Line, which is set to open imminently. Bridge will submit a planning application for 10 new last mile logistics units within the development in the summer this year.

Paul Hanley, Bridge’s London Partner, comments: “As with all our developments, the new facilities will provide Class A, highly sustainable and futureproofed space to serve a wide variety of occupiers looking for modern space, in a perfect location to serve last mile logistics in London and the South East.” 

Dominic Whitfield, Director in the Industrial & Logistics team at Savills, who advised Bridge on the acquisition, comments: “The purchase of the former Muller Dairies site provided Bridge with an excellent opportunity to acquire another prime London site, ideal for last mile urban logistics. Upon completion of the new development, this should help to provide much needed stock in a critically undersupplied market.”

Leader of Barking and Dagenham Council, Cllr Darren Rodwell, says: "The sale of the Muller Dairy site follows massive investment in the borough, including London's largest film studios and the iconic city markets coming to Dagenham.  It shows the cream of international investors, financial institutions and blue-chip companies know Barking and Dagenham is a place to do business in, which means more jobs and opportunities for our residents."

Fidu Property acted jointly with Savills, advising Bridge on the acquisition. The legal representatives were Mishcon de Reya for Bridge and Gowling for Be First.

Bridge Industrial launched its UK operations in November 2020. The firm now has six development sites within the M25 totalling more than 734,000 sq ft - including this latest acquisition - in Southall, Barking, Uxbridge, Croydon and Weybridge. Bridge Point Uxbridge, Bridge Point Southall and Bridge Point Barking all achieved planning consent this year.

Bridge is continuing to actively pursuing land and development opportunities throughout Greater London, the South East, and the West Midlands.

Where has all the industrial property gone? - 1 million sq ft of Brighton and Hove industrial space lost in the last 20 years

By David Martin, Partner and Head of Sussex Coast at SHW

As an industrial agent based in Brighton and Hove, it has been disappointing to see the loss of several modern industrial estates over the last five years to residential redevelopment. Since the production of SHW’s first “Room to Grow” land and buildings analysis report in 2001, the overall industrial stock in Brighton and Hove, (according to VOA figures), has dropped from 431,000 sq m in 2001 to 342,000 sq m in 2021. This is a substantial drop of 89,000 sq m, or approximately 958,000 sq ft.

Whilst understanding the pressure on the local authority to provide additional residential accommodation to meet planning requirements, existing local industrial and warehouse businesses struggle to find additional space to allow them to expand in the City and are being faced with having to look outside of the Brighton conurbation if they wish to grow their businesses.

It is just as difficult for new companies looking to move into the area to find anything but small units of under 5,000 sq ft, with limited prospect of new industrial and warehouse buildings being constructed in the City.

Two of the most recent developments in the early to mid-2000s were at Woodingdean Business Park in Brighton and St Josephs Business Park in Hove. Both proved to be popular schemes, albeit only really providing smaller units. The last large unit scheme to be built was at Home Farm Business Centre in Brighton in the late 1980s, with speculative buildings of between 10,000 and 42,000 sq ft.

The result of the extreme shortage of space is twofold. Firstly, rents for industrial and warehouse units have risen significantly on most industrial estates in Brighton and Hove because demand continues to considerably exceed the available supply. Another industrial estate constructed in the mid-1990s in the area, and let initially at £7 per sq ft, is now achieving rent of over £18 per sq ft with the rent still climbing.

Secondly, with the level of rents climbing so high, developers have been actively seeking development sites in Brighton and Hove but with almost no options available because of the pressure to build housing. Looking outside of the City, you will see significant new speculative development in places such as Billingshurst, Crawley, Burgess Hill, Polegate and Newhaven but nothing in Brighton and Hove.

The result of this limited land availability for Industrial development will be the relocation of existing businesses to the likes of Burgess Hill, Crawley and elsewhere, if they wish to expand. This relocation of many existing, high-quality industrial businesses located in Brighton & Hove will be a real loss for the area.

What is the solution? In my mind, and many others will agree, we need to make greenfield sites available, specifically for industrial development, so that when planning is given to demolish existing industrial estates to make way for residential use, there are nearby, “readymade” replacement sites with planning available. The other option to help the market would be to protect what is left, much like what has happened inside the M25 with “Strategic Industrial Sites”, where it is very difficult to get a change of planning to alternative uses from the current industrial use, unless you have actively marketed the site for that purpose for  more than 18 months.

From discussions we are having with developers, we believe there would be strong demand to build speculatively, and new developments would also free up existing industrial buildings in the city for businesses that cannot afford the rents for new buildings. New development sites would help to put Brighton and Hove on the map as an industrial location, as well as being somewhere nice to live.