For unrivalled knowledge of commercial property in East Anglia PROPERTY FOCUS East Anglia SUMMER 2014 Breaking new ground at Harris Business Park Let the good times roll UPDATE: early signs of local recovery April’s figures indicated that growth is returning to the UK faster than the rest of the EU. At 0.8 percent it’s a promising start, but it’s becoming clear that the UK is divided into two economic regions: inside and outside of the M25. Speaking on the BBC’s Today programme, Whitbread chief executive, Andy Harrison, which had enjoyed healthy growth in 2013, admitted: “Inside the M25 it is going from strength to strength. Outside the M25, it is growing but it is fragile." Vanessa Penn believes that the tide is turning though. She said: “The London area has undoubtedly seen a sharp upturn in the last couple of years. The effect is spreading outwards to the regions and we can see signs of it here. “We believe commercial property prices are set to rise locally in the next year or two as demand increases. Suffolk, and the area around Ipswich, is increasingly on the radar of UK institutions, investors, many of them foreign, and businesses with expansion plans.” There’s also a noticeable uptake in enquiries for office accommodation and enquiries for newbuild industrial premises, she reports. With the completion of the Bacon Chord Loop, a stretch of railway line to the north west of the station, development is set to begin at Harris Business Park. Launch of Bacon Chord with Peter Colby, Ben Gummer MP and Vicky Ford MEP The owners of the land, which is one of Ipswich’s last remaining designated industrial sites of any size, Peter Colby Commercials, have invested £0.5million in a new access road and plans to build a variety of units of between 1,000 and 50,000 sq ft. Peter Colby said: “Network Rail will vacate the site in early October then things will start to move in earnest. The first thing will be to level the site to enable building to begin. We’ve completed the entrance now and we’ve finished the access road. “Planning applications are already in and we’ve already had four serious enquiries, so it’s all looking very promising!” The completion of the Network Rail project enables freight trains between Felixstowe and the Midlands to make the journey without calling at Stratford in North London. In some parts of the county developers have announced plans for speculative builds – something we’ve not seen for some years now. That’s apparent at Stowmarket where Crown Commercial Park hopes to get planning permission to begin building in September. Continued overleaf... Included in this issue: • Tasty new dining options • Investec update •National clients • Crown Commercial •EPC certificates • Focus on Three Rivers 01473 211933 • [email protected] • www.penncommercial.co.uk Continued from cover... Vanessa says that Suffolk enjoyed a better year in 2013, and the first half of this year is looking promising. “One recent indicator is that of a large vehicle repair workshop – Sovereign House - just off Sproughton Road in Ipswich, which sold for £1.5million to the Autosleepers Group Ltd of Martlesham. We acted on behalf of TrucksRUs, the vendors. “The buyers completed within two weeks of receiving the contract, and there were bids from three interested parties. That’s a situation we haven’t seen for a number of years now.” Tasty new dining options Penn Commercial has let two buildings for new restaurants: • A new 1,722 sq ft unit in Duke Street, Ipswich, for a new Turkish restaurant • A n historic building in Needham Market, at 119 High Street, for a new Italian restaurant And there are other businesses forging ahead as well. Artisan Developments’ Quantum Business Park is now set to be redeveloped. Four new units, varying between 5,000 and 60,000 sq ft are available freehold or leasehold. We’ve been instructed to sell St Peter’s Warehouse on the Ipswich waterfront, a site that’s been derelict for some time. This prominent site of almost half an acre, at the junction of Bridge Street and College Street, is ideal for a mixed use development. This site could be the start of the second phase of regeneration of the waterfront. Mahzen, Duke Street, Ipswich “We can see the time coming now when they will have to start looking at secondary catchment areas. “However, the economy really needs to expand in the service sector and manufacturing for businesses to start taking 30,000 and 40,000 sq ft sheds. Ultimately the market economy is being driven by retail and that needs to change for sustained growth to be achieved," she said. If you’re wondering why we’ve introduced some surprising new elements into our advertising, then let us explain! By featuring giraffes, elephants, etc. we’re highlighting our project to raise cash for the World Wildlife Fund, one of our favourite charities. For every deal done this year, we’re donating £10 to this great organisation to help with their vital work. Investec update 119 High Street, Needham Market While the industrial sector is surging ahead, there are signs of confidence returning in leisure, residential and retail sectors too. Vanessa said: “Property companies are now rolling up their sleeves! Admittedly returns are less than they were 6-12 months ago, but if property companies have the land and can get a pre-let, it should be fairly straightforward for them to forward fund. The funds are bullish about buying product and paying high prices, even though the market is hot. Animal Marketing A year ago we were given sole agency instructions to let three Ipswich town centre properties on behalf of Investec Specialist Bank. We have now let all three units, totalling approx 15,000 sq ft. We let one unit on Duke Street for a new restaurant, then two of three units on Star Lane to Harper Furniture and Bears’ new bowling alley and bar. Stanton Euro Park, Harwich Also available for sale freehold in whole or part is Stanton Euro Park, Harwich - a site suitable for B1/B2/B8 uses, 5 acres remaining. House of Commons visit Vanessa Penn, together with members of the Ipswich & Suffolk Business Club, went on a tour of the House of Commons, which was conducted by the Hon Ben Gummer MP for Ipswich. We’ve now received instructions from the same bank to sell the former BOCM Pauls site on Star Lane/Key Street – a site that's likely to attract bids in excess of £2million. And we’ve also been awarded the contract to manage all three sites on their behalf. It’s a relationship that goes from strength to strength! Hemesh Patel of Investec said: “Every issue that arises is swiftly dealt with by Penn Commercial. I have found the service, from the moment of appointment, to be excellent and business was and is conducted in a professional manner throughout. We look forward to continue working with Penn Commercial going forward.” 01473 211933 • [email protected] • www.penncommercial.co.uk Crown Commercial Park As news of one of the first speculative builds in Suffolk for some time is announced, Duncan Hayden, managing director of the developers of Crown Commercial Park, Seamans, says: “Our development plans for the site are coming at the right time now. Others have tried to develop here, but we’ve got some robust plans, a lot of interest in advance, and we’re building some modern offices and units, ideal for a wide variety of business uses. “We’re starting building in September and the development will be phased. Some may be ready as soon as March 2015. There’s already quite a lot of interest in the site, and that’s good news for us, but also for others considering a move to Crown Commercial Business Park. “The site, just off the A14, provides good connections to the Port of Felixstowe in one direction and to the Midlands in the other. This development is easy to access by road and rail, and we think there will be a lot of interest from businesses looking to relocate or establish a new base in the middle of East Anglia. National clients Far from being an agency with local ties, Penn Commercial is now making great strides in working with national names: Yodel: Letting of a 57,000 sq ft warehouse and office space in Basildon and assignment of a leasehold interest in Norwich 01 Concentric Properties Ltd of Hertfordshire: Sale of a modern business unit in Great Blakenham 02 Gardner Denver: Surrender of long leasehold interest 03 NCP: Sale of a retail unit Upper Orwell Street, Ipswich 04 “There’s an excellent quality of life here. We’re surrounded by countryside, the local schools are good, there’s a wide variety of housing, both new and old. And compared to many parts of the country, prices are extremely reasonable. Eskmuir: Letting of industrial/warehouse unit on Ransomes Europark, Ipswich “Stowmarket, itself, is a place with a lot going for it, but it’s also midway between the larger towns of Ipswich and Bury St Edmunds. Bosch and Muntons both have major presences here, and there are a lot of employment opportunities in nearby towns.” Circle Properties: Sale of industrial investment in Great Blakenham £1.3m SITE PLAN Industrial & business units 06 05 07 Brisko Metal: Negotiating acquisition of an 11 acre development site in Sproughton Road, Ipswich 08 Jorden Salata LPA: Sale of 19-23 Fore Street, Ipswich, on behalf of the receivers 09 Howdens plc: Letting of Unit Q, Arkwright Road on behalf of the builders’ merchants 10 BT/Innovation Martlesham: Letting of office accommodation at Adastral Park EPC Certificates ...it’s time to act! An estimated 16% of commercial property stock will not meet the standards required by the 2011 Energy Act, according to a recent report in Estates Gazette. They’re already reporting that it’s having an impact on the market. Prices for properties that haven’t the required Energy Performance Certificate Level E are already starting to fall. There’s just four years for every building to come up to scratch, so if you are in that position, it is important to think ahead now. P R O P E R T Y M A N A G E M E N T • R E N T R E V I E W • L E A S E R E N E W A L • A S S E T M A N A G E M E N T • P R O P E R T Y A U C T I O N S S C H E D U L E S O F D I L A P I D AT I O N S A N D R E PA I R • S C H E D U L E S O F C O N D I T I O N • I N C O N J U N C T I O N W I T H O U R C O N S U LTA N T S D C A For a pro-active and personal service All change at Gotelee Solicitors Three Rivers Commercial agency and property management Penn Commercial has been appointed to manage the impressive and landscaped Three Rivers Business Park, which is on Felixstowe Road, a few miles outside of Ipswich. In the last few months we have project managed contractors to refurbish three units, install a new automated gate system, improved the landscaping and upgraded the electricity supply. We have recently let 3,700 sq ft to Skanska pictured below, and 2,100 sq ft to Westminster Recliners. Following the appointment of a new Chief Executive at Gotelee, former Managing Partner Martin Whitworth is relishing the prospect of returning full time to his first love; commercial property law in all its forms. Before his nine years in the management chair, Martin built a broad reputation as a skilled and commercial property lawyer. As he says, “The challenge of maintaining the client portfolio and service levels alongside the management role is significant. I hope, however, I have been able to juggle the two roles to good effect.” Centaur Court Gotelee Trebuchet Manpower Signs 4 U Easilife Pound Gates Meridian Interiors Larking Gowen Mixbrow Construction Ocean Telecom We recommend using our business affiliate partners who offer a variety of property services to our clients PENN COMMERCIAL SERVICES: TO LE T CLAYDON BUSINESS PARK 1,890 sq ft to 6,500 sq ft Having handed over the management duties for the firm as a whole, Martin will focus on building the commercial property team at Gotelee and expanding its reach around Suffolk from the firm’s offices in Ipswich, Hadleigh and Felixstowe. As the economy begins the cyclical up swing, property prices begin to harden and opportunities for development and investment in the sector will appear. In the Ipswich and Suffolk area the lead for the upturn could well come from the residential development market and a number of significant schemes are in the pipeline. As activity in the housing market moves up, related commercial developments follow. In addition, some interesting developments in law affecting the property community have recently arrived or are coming over the horizon. These include relaxing planning rules to allow some changes of use without consent, overriding property rights to allow access to shale gas (fracking), establishing a fund for flood insurance and putting in place a mechanism to claim capital allowances on a purchase. Martin says: “At Gotelee we detect a real sense of optimism in the local market after a number of years in the commercial property doldrums. I anticipate being grateful for the time I now have to concentrate on the day job - advising clients on all aspects of their property work." Property Appraisal - Commercial, Mixed Use and Residential • Property Management and Rent Collection Schedule of Dilapidations • Property Auction • Valuation for Bank and Private Purposes • EPCs NOTICES RELATING TO PROPERTY MISREPRESENTATION, PROPERTY MISDESCRIPTIONS & FINANCIAL SERVICES ACTS Penn Commercial as agents for vendors/lessors of this property gives notices that: 1. The information contained within these particulars has been checked and is understood to be materially correct at the date of publication. 2. All descriptions, statements, dimensions, references to availabilities, conditions and permissions for use and occupations or other details are given in good faith. However, they are made without responsibility, and should not be relied upon as representations of fact. Intending purchasers or tenants should by enquiry to this office, satisfy themselves as to the correctness and availability in each case before arrangements are made to travel and view. 3. Unless otherwise stated, all prices, rents and other charges are quoted exclusive of value added tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect to any transaction. 4. All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not however, been tested and, nor any person in their employment have any authority to make or give, any representation or warranty whatsoever in relation to this property. 5. Penn Commercial does not hold itself out as providing any legal, financial or other advice. These particulars do not constitute advice and you should not rely on this material in making (or refraining from making) any decision to take (or refrain from taking) any action. 6. The information contained in these particulars is of general nature and may not be applicable to your own specific circumstances. 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