B&Q EXTENDS LEASE AT ITS 800,000 SQ FT DONCASTER DISTRIBUTION CENTRE

Logicor, a leading owner and manager of logistics real estate in Europe, has secured a new 10-year lease with B&Q, the UK’s leading home improvement retailer, to stay at its 800,000 sq ft Redhouse Distribution Centre in Doncaster.

Located at Redhouse Interchange, adjacent to the A1(M), this is one of B&Q’s largest distribution centres employing over 700 employees.

The new lease will start at the end of B&Q’s existing lease in December 2023. The retailer is committed to continue occupying the property until the end of 2033, with no breaks.

Demonstrating its commitment to the area, B&Q has significantly invested in the site over recent years, including extensive landscaping to provide areas for employees to enjoy outside and improving biodiversity. Committed to reducing its carbon footprint, initiatives have included the installation of solar panelling on the roof and LED lighting throughout to reach an EPC rating of an A.

Tom Blakely, Logicor’s Director, Asset Management, comments: “Redhouse is a well- established base for B&Q, who have been a valued customer since 2003. We continue to work closely with the team to evaluate and implement further sustainable and wellbeing initiatives now and for the future.”

Peter Daniel, B&Q’s Property Management Surveyor, comments, “We are delighted to continue working with Logicor to remain at one of our largest B&Q Distribution Centres for a further 10 years, as our business grows, and we continue to support our customers with exceptional service, inspiring project ideas, expert support and clever solutions.”

Pluto Finance fires starting pistol for regional expansion with funding for £22m Elevate Property Group scheme in Gun Quarter, Birmingham

Pluto Finance has completed its third loan with Elevate Property Group, providing development finance for 85 new residential units in the up-and-coming Gun Quarter district of Birmingham. 

Steeped in character and heritage, the Gun Quarter is described as the City’s most attractive area for residential development and is just 11-minutes’ walk from the City Centre.

Greg Dunne, Pluto Finance’s Lending Director, says: “We are delighted to be backing this exciting project and working again with the highly regarded Elevate team as we expand our lending beyond the southeast.”

“This loan follows Pluto’s previous funding for Elevate’s £55m 219-unit scheme in Ashford, Kent, and highlights the focus Pluto puts on repeat business with our clients, recognising the excellent customer service, pricing and flexibility that we offer.”

Steve Dodd, founder of Elevate Property Group comments “We are delighted to have recently completed another Loan with Pluto Finance. It is a relationship that is continuing to grow, and we look forward to working with them on more schemes in the future.”

Bridge Industrial Breaks Ground at its First UK Development Site

Bridge Industrial has broken ground at its 2.28-acre site in Barking, in an event hosted by Wilten Construction. With PC scheduled for December 2022, this will be Bridge’s first development site to complete in the UK.

Bridge Point Barking will offer 50,246 sq ft of last-mile logistics space in a detached, self-contained unit available to let following completion of works.

A Net Zero Carbon development, the site is being built to a BREEAM Excellent rating, with roof mounted Solar Photovoltaics generating more than 140,000kWh per year. The building orientation has been optimized with glazing and fabric to reduce energy consumption and associated emissions, with low-flow, efficient water fittings to reduce water consumption.

Bridge Point Barking with also benefit from on-site cycle parking, electric car charging points and car sharing spaces.

Located on Alfreds Way, Bridge Point Barking is immediately linked to the A13, linking to the M25, the A406 (North Circular) and Central London, in an established industrial location popular with self-storage and trade counter operators. DTRE and Colliers have been retained as letting agent.

Paul Hanley, Bridge’s London Partner, said: “We are delighted have broken ground on what will be our first development to complete in the UK. We are pleased to be working with Wilten Construction to deliver this best in class, last-mile logistics building on a speculative basis.”

Naim Basha, Managing Director at Wilten, said: “We are pleased to be on site for Bridge Industrial delivering their first UK development. Bridge is a key client for Wilten Construction, aligned to our future ambitions, and we are looking forward to setting the standard with our fully managed design service and best in class delivery, building our successful mutual future and developing our relationship as a preferred supply chain partner.”

The build is supported by project partners Everson (agent), engineers Burrows Graham and architect Chetwoods.

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

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

Bridge Industrial continues UK team expansion

Bridge Industrial (“Bridge”), the US-based industrial real estate operating company and investment manager, is continuing its UK expansion appointing Faisal Shaffique as Property Manager and recruiting Klara Dowds within the UK team’s undergraduate internship programme. 

Faisal will be responsible for the financial and operational aspects of Bridge’s sites across the UK. Previously working within the property division of Cargiant Ltd as Senior Real estate Manager, Faisal provided end to end management of the used car dealership’s UK portfolio, with a value in excess of £500 million consisting of industrial and retail property and rural land.

At Bridge, Faisal will be working closely with London Partner Paul Hanley, Vice President Chris Doloughty and the wider team on the firm’s development sites within the M25.

Paul Hanley, comments: “We are pleased to announce the appointment of Faisal to steer the strategic property management of our current and future developments which are focussed on best in class, last- mile logistics buildings.”

“Three of our UK developments have broken ground this year, with our first – Bridge Point Barking – due to PC in December, and we are excited to bring forward other sites in 2023 and beyond.”

Bridge’s intern Klara is a third-year student at Nottingham Trent University, studying Property Development & Planning. The UK team of property professionals will be working closely with Klara providing opportunities for learning and mentorship to help lay the foundations for a future career in real estate.

Paul says: “At Bridge we are fully committed to developing future talent within the industrial and logistics real estate sector. Encouraging early engagement at grassroots level is crucial to the success of the next generation within the property industry and we are delighted to have Klara with us for the next 12 months.”

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

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

All Day Bar and Restaurant to Open in Ten Degrees, Croydon

East Croydon will this autumn play host to one of the most exciting openings of the year as

the owners of Mr Fox announce the launch of a second Croydon site.

Renowned for their quirky interiors, exceptional cocktail menus and locally sourced, fresh

food, Fern will open on the ground floor of the Ten Degrees building

on George Street, Croydon.

SHW advised landlords Greystar Europe Holdings and Henderson Park on the letting of the 2,140 sq ft retail unit – Unit 1, George Street – located directly opposite East Croydon Station, one of the busiest locations in Croydon.

Richard Pyne, Partner at SHW, comments “SHW are delighted to Act for Greystar and Henderson Park on such a prestigious development in the heart of Croydon. The offering that Fern will bring is exciting and contemporary and fits in perfectly the new Starbucks offering - opening soon within the scheme. There is just one more retail unit available, which will front the building on College Road.”

Fern is the third venue from Bart & Taylor which is owned by dynamic couple Aiste Bart and

Andrew Taylor who own Mr Fox Croydon, and Adam & Eve Northumberland, with two

further venue openings planned for 2023.

Interiors have been inspired by the beautiful buildings of downtown New York and will

feature exposed brickworks, rooms filled with plants, reclaimed barn wood flooring,

terracotta tiles, floor to ceiling windows, six foot antique French chandeliers and rustic wall

lighting.

Guests will enjoy an expertly curated drinks list, with the focus on classic cocktails, spritzes

and refreshing highballs, in addition to some of the world’s finest spirits.

The open kitchen will serve colourful sharing plates of modern European dishes, with an

emphasis on locally sourced farm produce.

Open from dawn ‘til dusk, 7 days a week, Fern will be the perfect place for guests to start

the day with breakfast, enjoy a team lunch, grab an afterwork drink and spend the evenings

& weekends with friends and family.

REGAL LONDON SECURES FUNDING FROM PLUTO FINANCE FOR £95m CITY OF LONDON DEVELOPMENT PARTNERSHIP WITH 4C HOTELS

Regal London has partnered with 4c Hotels to deliver The Haydon, a residential tower of 87 apartments in Aldgate in the heart of the City of London. Pluto Finance has provided a £44.5m loan for the £97m development which is due to complete in 2024.

Designed by Acme architects, The Haydon is a playful tower set within a beautifully secluded, landscaped courtyard, creating a light, serene oasis in the city for residents. Residents will have access to the spa, cinema, gym and roof terrace with extensive views across London. 

Regal London has an extensive pipeline of c6,000 residential units, including the recently acquired 100 and 100a Chalk Farm Road next to the Roundhouse, significant residential and student accommodation schemes in Brent and the regeneration of North Finchley town centre in Barnet.

Marc Eden, Investment Director of Regal London said: “We’re delighted to be partnering with 4c Hotels, who approached us to deliver a residential vision on their land, The Haydon, the next in a long line of iconic buildings in the City of London. Pluto Finance have bought into the strength of the partnership and provided the required finance for the project.

“We work very closely with our partners, both financial and landowner, to make sure that we deliver value across our projects.”

Al-karim Nathoo, CEO at 4C Hotel Group, said: “We’re partnering with Regal London for our first purpose built residential development in this vibrant part of London. This is a further milestone of our wider redevelopment of the Minories estate.”

Justin Faiz, Partner at Pluto Finance said: “We are delighted to have completed this loan for Regal London and 4C Hotels to assist in the development of what is sure to be a standout residential scheme in the heart of London. We look forward to continuing to strengthen our relationship with the partnership.”

SHW advises Hastings Borough Council on development site sale for 100% affordable housing scheme

SHW, on behalf of Hastings Borough Council, has sold a 12.35-acre site on Harrow Lane, Hastings, East Sussex to ilke Homes to deliver 140 affordable homes with excellent green credentials.

The Freehold interest in the site was sold with outline planning consent for 140 homes. ilke Homes has partnered with Orbit Homes to deliver the affordable accommodation with works expected to start on site in the autumn of this year, the first homes being installed in summer 2023 and completion of the whole scheme in 2024.

Situated to the north of Hastings in a fantastic, elevated position, the site is located approximately 0.25 miles from the A21, providing great access into Central London via the national rail and road network, as well as to Brighton and Eastbourne to the west.

The entire scheme, which will deliver a mix of apartments and houses ranging in size from one to four bedrooms, will be gas-free, running on renewable power generated from air source heat pumps (ASHPs) and solar panels which will combine to help heat the homes more sustainably. 84 of the 140 homes will be zero-carbon, with every home fitted with an ASHP and solar panels which, when combined, will provide clean energy.

Peter Coldbreath, Partner at SHW, comments: “We are very pleased to have achieved a sale at above asking price on behalf of Hastings Borough Council, delivering a buyer providing hugely important 100% affordable sector dwellings for the region and exceeding expectations for the carbon net zero proportion of the units.”

Cllr Maya Evans, deputy leader and portfolio holder for housing, commented: “We are absolutely delighted with the progress of this project, we have ensured these homes are affordable for local people, alongside addressing the climate emergency. We are very impressed with ilke Homes who have gone above and beyond in ensuring 84 homes are zero carbon, this means the energy they use will be 100% renewable, on top of fabric first sustainable building materials. Hastings Borough Council are now seeing the fruits of our vision, to provide high quality homes for people on low incomes, while playing an active role in reducing carbon emissions in our town. This is a very proud moment and just the start of more to come.”

Tom Heathcote, Executive Director of Development at ilke Homes, says: “We have enjoyed working closely with Hastings Borough Council’s Estates Team and the local authorities planning department to bring forward our proposals for the site at Harrow Lane. Subject to the clearance of pre-commencement conditions, we are excited to commence on site later this year.”

SOUTH EAST OFFICE MARKET ON THE UP FOLLOWING A TOUGH 2021

SHW’s South East Office Focus Q3 reports that, following a tough 2021, the first half of 2022 has seen a dramatic improvement for many locations across the region.

Tim Hardwicke, SHW’s Partner and Head of Agency, comments: “A number of companies have relocated to improve the quality of their offices, whilst taking the opportunity to downsize due, in part, to continued home working. This has been mainly driven by lease events, however, there have been a number of notable deals as a result of companies expanding.

“It’s encouraging to see firms investing in buildings to provide staff with the best quality space they can afford and, as a result, we are seeing an increasing pattern of staff wishing to return to the office rather than being directed to do so. Despite this, we predict an ongoing element of working from home with the ‘new norm’ of 3 or 4 days a week in the office.”

In Bromley, the first half of 2022 reported zero take up of office space. Q1 and Q2 saw only 40,000 sq ft of logged demand and 100,500 sq ft available. However, the start of Q3 saw two new lease events at T Bromley with RSM and Hanson Regan taking a combined 8,000 sq ft at the recently refurbished office.

In Croydon, although only 16,500 sq ft has been transacted so far this year, there has been a total of 1.37 million of logged demand over the last four quarters. With availability at 525,000 sq ft, we expect continued strong take up with rents remaining high at around £34 per sq ft.

While in Redhill & Reigate, take up is also relatively low at 12,000 sq ft. Logged demand is at 360,000 sq ft and availability at 200,500 sq ft, so we will likely see remains remaining lower than 2020’s highest figure (£31.50) with quoting rents at £29.50 per sq ft.

Conversely, in Burgess Hill & Haywards Heath take up has almost tripled that of the whole of 2021, with 66,000 sq ft already transacted this year. With 180,000 sq ft of logged demand and 42,000 sq ft available, rents may rise from the static £24 per sq ft seen over the last four years.

Similarly, Gatwick & Crawley has seen a dramatic uplift in take up, at almost triple figures in H2 2022 compared with the whole of 2021. Rents will push to the mid to high £30s when The Create Building completes construction (up from last year’s £27.50 per sq ft). In the first half of this year SHW completed the largest office letting in Crawley for some three years, with Bramble Energy taking the whole 33,978 sq ft at Atrium Court. This was topped by another 58,000 sq ft letting carried out by the office agency team.

In another strong market, Horsham’s take up rate is already nearly topping 2021 figures, currently standing at 58,000 sq ft. Availability is currently half that of logged demand and rents are predicted to rise from the £20 per sq ft seen over the last three years. In parallel, Eastbourne and the surrounding areas have seen a match in 2021 figures already and, with only 5,000 sq ft available, demand is far outstripping supply, pushing the quoting rent up to £19 per sq ft - with this figure already being achieved in Polegate.  Littlehampton, Bognor & Chichester’s take up rate is also currently matching the 2021 figures however, demand has tailed off at present.

Worthing & Lancing has also made a dramatic U-turn this year. Based on zero take-up in 2020 and 2021, 5,000 sq ft has already been transacted and logged demand is double that of supply, pushing the highest quoting rent to £17.50 per sq ft, compared with the last five years’ highest rents achieving around the £13 per sq ft mark.

Lastly, Brighton & Hove, which saw take-up figures bounce back last year, has been performing very well with take-up 30,000 sq ft over 2021’s figures already (2021: 70,000 sq ft / 2022: 100,000 sq ft). Agreements for lease have also been signed on 83,000 sq ft at Edward Street Quarter which will complete upon PC of the building later this year. Logged demand for the last four quarters stands at over 1.2 million, with availability at 315,000 sq ft, pushing quoting rents up to £37.50 per sq ft (2021 highest rent was £29 per sq ft).

Tim concludes: “Despite the increase in working from home. Long-sighted investors are seeing the advantage of office occupation and the versatility of the buildings and are still keen to acquire assets in this sector. Many landlords are taking ESG very seriously as this becomes a key, driving force for occupiers wanting to lease and buy building. This is also true for property companies looking at purchasing investments.”

STRONG OCCUPIER DEMAND CONTINUES IN THE SOUTH EAST INDUSTRIAL MARKET

SHW’s Q3 Industrial & Logistics Focus reports that the first half of 2022 continued where 2021 left off, with good occupier demand for both freehold and leasehold premises across the South East. Once again, areas reporting lower take-up than expected are due to lack of stock, rather than lack of demand. 

Tim Hardwicke, SHW’s Partner and Head of Agency, comments: “This strong demand continues to be linked to logistics / B8, rather than B1 manufacturing, due to the continued need for space to serve online retailing / last mile logistics and, as a result, rents are continuing to rise in many cases between 10-20%.

“That said, due to recent external market factors, demand is starting to tail off in some locations and although we don’t predict any immediate rental re-balancing, occupiers are beginning to be more cautious, taking longer to make decisions. As a result, marketing voids are starting to extend.”

In Croydon and the surrounding areas, stock availability dropped from 1.1million reported in 2021 to 710,000 sq ft in the first half of 2022. SHW has recorded over 1.5m sq ft of demand so far this year, take up is currently at 242,000 sq ft to date, compared with a total of 430,000 sq ft across the whole of 2021. With vacancy rates standing at 5.7%, achieved new build rents are reaching just shy of £20 per sq ft, with second hand stock circa £16-17 per sq ft.

In Sutton, Epsom, Chessington and Leatherhead, take-up is at a low level so far this year at 24,500 sq ft. With 102,000 sq ft reached in 2021 there is a way to go to match these levels. Vacancy rates stand at 2.6% and with a reported 196,000 sq ft available and 670,000 of logged demand. Due to lack of stock, SHW predicts new build rents pushing through and beyond the £20 per sq ft mark.

Redhill and Reigate has seen take-up at 32,000 sq ft so far this year, up on the whole of 2021. Although logged demand remains high at 820,000 sq ft, with only 86,000 sq ft available, it’s unlikely we will reach the heady heights of 2021 (195,000 sq ft), but we may see rents increasing again from £13.95 per sq ft in 2021.

As we move into Q3, the vacancy rate in Burgess Hill and Haywards Heath has decreased further to just 1.2% (from 2.5% in 2021), with 54,992 sq ft already transacted, leaving just 27,400 sq ft available. Logged demand is high at nearly 1 million sq ft so far this year which could see rents rising again from £12.95 per sq ft in 2021. In turn, new industrial space in development, such as the 46,500 sq ft remaining available at Sussex Junction, is gathering a lot of interest from occupiers.

In Crawley and Gatwick, quoting rents remain at £16.50, with the highest rent hitting that level this year (compared with £13.75 per sq ft over the last two years).  Though take up is only at 152,000 sq ft so far this year, 803,000 sq ft of existing stock remains available with demand at over 1.7 million which should see the current vacancy rate of 6.6% dropping this year. The Base in Crawley, which will provide two new highly specified units of 147,000 and 88,700 sq ft, available in September 2022, will provide the largest units for occupation in 2022.

Horsham has seen a strong level of take up so far this year at 56,000 sq ft (compared with 76,000 sq ft for the whole of 2021). However, with 450,000 sq ft of logged demand and just 18,000 sq ft available (vacancy rate of 0.9%), new industrial space is very much needed.

On the Sussex Coast, demand remains high, with availability comparatively low. Brighton and Hove has just 84,000 sq ft available (1.7% vacancy) with 1.1 million sq ft of demand. Take up is at just 10,000 sq ft so far this year. In Bognor & Chichester, the vacancy rate is even lower at 0.8%. Availability is down to 39,000 sq ft and demand is a whopping 1.68 million sq ft. However approximately 200,000 sq ft of new development is about to start at The Saltbox in Bognor.

In Eastbourne and the surrounding areas, availability is at a relatively healthy level of 241,00 sq ft. With over 1 million sq ft of logged demand, and 60,600 sq ft transacted so far this year, take up may get to near the 2021 levels (288,000 sq ft) and rents are likely to remain high (£12 per sq ft in 2021). 

In Hastings, St Leonards and Bexhill, take up continues to soar, with 118,000 sq ft away already this year, compared with a total of 76,500 sq ft for the whole of 2021. This leaves only 179,000 sq ft available, with a 1.1 million sq ft of logged demand which should keep rents at around the £8 per sq ft figure. 1-9 Ivy House Lane in Hastings makes up much of the available space, offering 109,083 sq ft, which may be split depending on demand.

in Lewes, Newhaven and Peacehaven, take-up looks likely to remain at 2021 levels (35,500 sq ft), with just 15,500 sq ft transacted so far this year. SHW is reporting 380,000 sq ft of logged demand with just 105,000 sq ft available. In contrast, in Rusington & Littlehampton, take up is up by 200% already this year on 2021 figures (17,500 sq ft / 5,500 sq ft), with a very high demand of 760,000 sq ft and just 62,000 sq ft available.

The Shoreham and Lancing area has reported 17,000 sq ft of take up so far this year, following a relatively healthy take up of 54,500 sq ft in 2021. Again, low levels of stock at 84,000 sq ft are dwarfed by the high demand of 740,000 sq ft. And lastly, in Worthing take up is low so far this year at 13,500 sq ft (42,000 sq ft for whole of 2021), with 850,000 sq ft of demand and 293,000 sq ft availability, albeit 261,000 sq ft of available space is in just one building.

Tim concludes: “Despite ever increasing build costs, developers are still continuing apace with speculative newbuild schemes to meet the high demand for good quality space as overall stock remains low. New build stock must offer good sustainability credentials and landlords are taking ESG very seriously as this becomes even more of a key, driving force for occupiers wanting to lease and buy buildings.”

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.”