P36-49 Investment Guide.Indd

GLOBAL AMBITIONS FOR BIRMINGHAM DEVELOPER

The company that has put Birmingham on the map for Chinese property investors has designs on bringing in financiers from other corners of the globe.

Developer Court And he says the city is well placed to Collaboration emerge well from Brexit - by having the brought in confidence to punch its weight globally. investment from six He said: “We plan to tell the story countries in its first of Birmingham to whoever will listen. four years in business If that means a five-minute car journey - and founder Anthony McCourt isn’t or an 18-hour flight, we think it is stopping there. worth it. Court has attracted more than £160 “When we tell people about the million worth of investment in the THE SUTTON, SUTTON COLDFIELD potential this city has, it never fails to West Midlands and has become ignite interest. We’ve made inroads synonymous with Chinese-backed Court Collaboration specialises in in China, but there’s so much more property schemes building homes property developments supplementing we can do to develop a special throughout the city and the Greater the growth of Birmingham city centre, relationship, but it is a big world out Birmingham regions. and building homes across the West there and myriad opportunities. Midlands. Mr McCourt believes that this is the We want to be the ones taking them. tip of the iceberg. Court has worked Developments like Royal Sutton with partners from China, Saudi Arabia, BIRMINGHAM IS ON Place, which transformed the former Hong Kong and America to build THE CUSP OF SOMETHING Sutton Coldfield Council House into homes in Sutton Coldfield, Bournville GREAT - WE WANT luxury homes, and the Franklin, which and the Jewellery Quarter - with first- TO CONTINUE TO BE A transformed a former oce building in time investors in the city coming back PART OF THAT. Bournville into 79 boutique apartments, for more. have established Court’s ethos and commitment to quality.

Now, thousands more homes will be built, including at Holloway Head, Motif Works in Digbeth and One Five One SPONSORED BY on Great Charles Street - and all will follow the same commitment to quality, WEST MIDLANDS sustainability and aordability.

All homes will be sold through Court Living - a new arm of the Colmore INVESTMENT Row-based ﬁrm which will deal THE FRANKLIN, BOURNVILLE directly with the market. AND PROPERTY COURT COLLABORATION T: 0121 796 1777 122 COLMORE ROW, BIRMINGHAM, B3 3BD E: [email protected] courtcollaboration.com GUIDE ////////

insider AUGUST 2017 37

p36-49 investment guide.indd 37 01/08/2017 16:24 www.friarshousecoventry.co.uk Friars House, Manor House Drive, Coventry, CV1 2TE FRIARSHOUSE TO LET MODERN OFFICES from 3,218 sq ft - 51,223 sq ft

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p36-49 investment guide.indd 38 01/08/2017 16:24 www.friarshousecoventry.co.uk SPONSORED BY WEST MIDLANDS Friars House, Manor House Drive, Coventry, CV1 2TE INVESTMENT AND PROPERTY FRIARSHOUSE GUIDE //////// TO LET MODERN OFFICES from 3,218 sq ft - 51,223 sq ft WINDOWS

LANDMARK ON THE WEST BUILDING IN Imagine a region where different departments all work towards the same overall goal – growth. Insider takes you A STRATEGIC on a grand tour of West Mids plc to show just what this innovative, dynamic region has to offer investors

COVENTRY ome in, and let us show you around. continuous expansion, is helping to attract shake-up after years of underinvestment. In CITY CENTRE Come on, keep up! There’s a lot to staff from rival businesses, particularly in the each case, the plan is to make the most of Csee. Over the next few pages, Insider South East. the core staff’s skills and make better use of will give you a power-walk around the West Also on the ground fl oor, at the rear of the huge amounts of space it has available. LOCATION Midlands. This year we’ve split it into its six the building, is Coventry and Warwickshire. And on the top fl oor, where lovely scenic local enterprise partnership (LEP) areas: This department is mainly made up of views are guaranteed, are the Marches and Greater Birmingham and Solihull, Coventry factory workspace and focused on very Worcestershire. and Warwickshire, Black Country, Stoke and clever engineering, such as driverless and Welcome to Insider’s West Midlands Staffordshire, Marches, and Worcestershire. hybrid vehicles. As well as its manufacturing Investment and Property Guide. It provides We give valuable information on each and prowess, the department is known for its all the facts and fi gures you need about why they are attractive to investors. Shakespeare-like ability with words. one of the UK’s most attractive business After the reception area, the fi rst depart- On the fi rst fl oor, we’ve got two departments locations. ment we’ll come to is Greater Birmingham currently in the middle of major restructuring. Enjoy. and Solihull, the most high-profi le part of First, there is the Black Country, which is the business. GBS is multicultural, young, undergoing a lot of investment. In the offi ce Ian Griffi n dynamic, well-connected and highly next door is Stoke and Staffordshire, which Business editor ambitious. These qualities, together with its is also in the middle of a considerable

GREATER BIRMINGHAM HSBC’S 2 ARENA CENTRAL AND SOLIHULL

Greater Birmingham and Solihull is home to any LEP area in the country. Over a quarter —11 storey comprehensively F RIARSHOUSE Andrew Berry one of the largest professional and fi nancial of the population is from a black and minority [email protected] centres outside of London, with a world- ethnic background, compared with 14 per refurbished office building To discuss terms or leading advanced manufacturing sector, cent nationally. arrange a viewing, fast-growing creative and cultural industries The Greater Birmingham area has a high please contact the joint and emerging strengths in life sciences. proportion of apprentices. The proportion of — Floors from 3,218 sq ft to letting agents. 6,990 sq ft 0121 232 4900 The area benefi ts from a young and people educated to NVQ level 2 and above cushmanwakefield.co.uk diverse population, with over a third aged 24 is 50.1 per cent. This is higher than the rest and under – well above the UK average of of the West Midlands, but lower than the Rupert Gillitt 30.6 per cent, and the highest percentage of national average of 56.9 per cent. — Super city links on your [email protected] Asset managed by: doorstep Our Driving Midlands Growth Programme assesses the implications of economic change, — Amazing views of Coventry’s helping your business to capitalise on the opportunities it affords. Go to ey.com/midlandsengine cultural city centre insider SEPTEMBER 2017 39

p36-49 investment guide.indd 39 01/08/2017 16:24 WHERE CHARACTER COMES AS STANDARD

Each Spitfire home is created to complement its surroundings. Built not only to stand out, but to fit in. From a chic contemporary townhouse, to a characterful Cotswold home or a classic mansion, the external materials and internal specification are individually selected to ensure each home is sympathetic to its surroundings.

Featuring bright interiors designed for modern living coupled with Spitfire’s signature high specification, quality is assured. And with the opportunity to personalise certain aspects of each property, the result is a character-filled home which is just as individual as you are.

NOW SELLING IN: • Barford • Broadway • Chipping Campden • Gaydon • Hockley Heath • Stow-on-the-Wold COMING SOON TO: • Ettington • Leamington Spa • Warwick

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p36-49 investment guide.indd 40 01/08/2017 16:24 XXXSPONSORED BY WEST MIDLANDSDEALS INVESTMENT AND PROPERTY GUIDE ////////

Valley and Birmingham business parks. OVERVIEW OFFICES It is estimated it will create 100,000 jobs The anticipated relocation of thousands of and increase the region’s revenue to up to PRIVATE SECTOR JOBS white-collar jobs from the South East over the £19.5bn annually by 2040. Source: GBSLEP next few years means lots of refurbishing and building of offi ces. TRANSPORT & The fl agship scheme is Paradise, the most INFRASTRUCTURE 737,000 important city-centre development in the UK outside of London. It will be a vibrant mix Birmingham Airport is the UK’s fi fth largest, GVA of commercial, civic, retail, leisure and hotel handling 9 million passengers a year. It has the source: GBSLEP space and will be able to accommodate up UK’s second-largest proportion of business to 12,000 workers. PwC has announced it will travel behind Heathrow, and 50 airlines fl y to take up space at the 1.8 million sq ft site. more than 100 destinations worldwide. £44.5bn The relocated professional jobs include the The Greater Birmingham area has six main 1,000 HSBC UK will bring when it relocates railway stations. The largest, Birmingham FOREIGN INVESTMENTS IN 2016 from London in early 2018. The bank is New Street, carries 140,000 passengers per Source: GBSLEP (2015/16) building its headquarters at the Arena Central day. Destinations include London (1hr 50min complex, which will total 670,000 sq ft of average journey time), Manchester (1hr grade-A offi ce accommodation. 38min) and Nottingham (1hr 14min). 81 Other major developments include the HS2 will cut these times dramatically £500m Smithfi eld scheme, which will when it opens in 2026: 49min to London AVERAGE FULL-TIME ANNUAL WAGE accommodate 3,000 jobs, the 103 Colmore and 41min to Manchester. There will be HS2 Source: ONS Row tower block and Bruntwood’s recently stations in Curzon Street, Birmingham, and completed refurbishment, the 110,000 sq ft Birmingham Interchange, near the airport. Cornerblock development in Cornwell Street. £26,910 RESIDENTIAL DISPOSABLE INCOME PER HEAD INDUSTRIAL The growth of the economy means 89,000 Source: ONS Birmingham has a large portfolio of private new homes are needed by 2031. About and public sector sites that are being brought 7,000 will be created at UK Central and WHERE CHARACTER forward for development, such as the Battery Smithfi eld, and 6,000 will be built at the £15,789 Park, the Life Sciences Campus, Pebble Mill Peddimore scheme, near the M6. Court KEY BUSINESSES – home to the new £50m Dental Hospital Collaboration said in July it planned to build Cadbury, Deutsche Bank, HSBC and School of Dentistry – and Longbridge. 3,000 apartments in the city in the next three COMES AS STANDARD and Jaguar Land Rover One of the biggest opportunities is UK to four years, while Berkeley Homes said it Central, a cluster of developments in and aimed to build 400 homes there. The average Each Spitfire home is created to complement its surroundings. around Solihull which will include a new HS2 Birmingham house price is £171,000, about Built not only to stand out, but to fit in. From a chic contemporary station, Birmingham Airport, NEC and Blythe £50,000 cheaper than the national average. townhouse, to a characterful Cotswold home or a classic mansion, the external materials and internal specification are individually selected to ensure each home is sympathetic to its surroundings.

NOW SELLING IN: • Barford • Broadway • Chipping Campden • Gaydon • Hockley Heath • Stow-on-the-Wold COMING SOON TO: • Ettington • Leamington Spa • Warwick PARADISE, BIRMINGHAM

Best Small Housebuilder Best Design Award Housebuilder spitfirepg.co.uk Gold Winner Highly Commended of the Year

insider SEPTEMBER 2017 41

p36-49 investment guide.indd 41 01/08/2017 16:24 ADVERTISING PROFILE

Midlands property experts remain positive post Referendum and General Election DWF’s Local Head of Real Estate in Birmingham, Partner Melanie Williams discusses the impact the current political climate is having on the property market and reflects on the opportunities presenting themselves to the West Midlands

FURTHER SHOCKWAVES? Last year, I wrote an article in this publication from both private and public sectors. We remain You, like me, probably stayed up late enough to suggesting that after Brexit many of us in the involved in significant transactions, including watch the exit polls in the recent General Election. business community were shocked at the large(er) long-term, strategic projects across transport and You may then have stayed up even later when share of the electorate wanting us to leave the manufacturing sectors. These require innovative use that was released, just to see if the exit polls could “bloc” (as some commentators seem to be using of tax-led structuring in property development really be true, whilst watching voyeuristically as when referring to the European “union”). and working with high-net-worth investors who the pundits argued that they couldn’t possibly be. What’s interesting is that a year on we were not continue to seek investment opportunities utilising What we are now certain about is that there nearly as shocked at the election outcome. I feel oversees equity, increasingly in the regions. are no certainties in politics. What we understood this is evidence of our resilience. Whilst there were In the last year, the Birmingham team completed to be the opinion of the majority can no longer a couple of weeks of reflection it seemed most circa £400m worth of forward funding on hotel be assumed. It is abundantly clear that there are then just got back to business. This was mirrored developments to various pension funds, demon- stark factions within communities crossing in activity levels at DWF as we have seen no strating that strong UK transactions remain generational and economic divides, rural and discernible slow down as a result of the changing attractive for domestic products and investors. urban, geographic, and so on. political landscape. Amongst this, we have picked up new clients It seems many politicians have lost touch with We still need to be alert and alive to oppor- with equity funds based overseas but with a remit the electorate and are failing to implement tunities. It is a shared responsibility as members to invest in UK property and with an interesting policies - or at least not fast enough - to satisfy of the business community to be innovative, to blend of equity and debt propositions. a majority and settle unrest. The unrest doesn’t support and challenge, be vocal but constructive appear to stem from a new set of problems but and to continue to lead and influence, least of all BUILDING CONFIDENCE have been gathering momentum following the to be passive. Family-owned property investment and develop- recession years. ment company Hortons recognises a similar REGIONAL INVESTMENT sentiment in the market. Tony Green, Hortons’ The Midlands remains a key market for investors, Chief Executive, commented: “Recently we have providing a variety of exciting opportunities for both seen continued improvement in the occupational manufacturing and service industries. Birmingham market across the Midlands region with confidence is a growing city with a young population, good maintained despite economic uncertainty. transport links, a clear economic strategy and an “Birmingham has continued to perform strongly, established reputation for delivering key infra- driven by the demand for food and beverage units structure projects. These continue to attract and in particular. Its growing reputation as an ‘investable retain many well-known occupiers and present city’ played a key role in enabling us to agree a excellent opportunity for development. deal with Principal Hotels for them to fit-out and At DWF, we remain confident due to resilience operate The Grand Hotel, which, when it opens we’ve seen from clients and business partners; the in early 2019, will be Birmingham’s finest hotel.” UK is anchored in one of the most secure and stable real estate markets globally. We’ve seen post-Brexit CONCLUSION conditions present increased opportunities because Let’s not be complacent or naïve, we do acknow- this market continues to trade at a discount to ledge that there is more turbulence ahead of us. international investors due to the weaker pound. However, at DWF we are confident about the We’re maintaining faith in the West Midlands future. We have much to be proud of and are well and continue to advise an eclectic mix of clients equipped to meet challenges.

CONTACT DETAILS Melanie Williams – Real Estate Head (Birmingham) and Head of Hospitality (Firm wide) Tel: 0121 647 2492 | Mobile: 07778 342 307 | Email: [email protected]

p36-49DWF 71499.indd investment 1guide.indd 42 01/08/2017 16:2409:41 XXXSPONSORED BY ADVERTISING PROFILE DEALS ADVERTISEMENT

Midlands property experts remain positive COVENTRY AND post Referendum and General Election WARWICKSHIRE Andy Lyndon Director and Head of Midlands, LDC DWF’s Local Head of Real Estate in Birmingham, Partner Melanie Williams discusses the impact the current political climate is having on the property market and reflects on the opportunities presenting themselves to the West Midlands Investing for growth

Private equity has the ability to transform a business and supercharge growth. Last FURTHER SHOCKWAVES? Last year, I wrote an article in this publication from both private and public sectors. We remain year alone, our diverse Midlands portfolio You, like me, probably stayed up late enough to suggesting that after Brexit many of us in the involved in significant transactions, including of 24 companies grew total sales by watch the exit polls in the recent General Election. business community were shocked at the large(er) long-term, strategic projects across transport and an average of 15 per cent - even more You may then have stayed up even later when share of the electorate wanting us to leave the manufacturing sectors. These require innovative use impressive during a period of economic that was released, just to see if the exit polls could “bloc” (as some commentators seem to be using of tax-led structuring in property development and political uncertainty. really be true, whilst watching voyeuristically as when referring to the European “union”). and working with high-net-worth investors who With uncertainty the new normal, the pundits argued that they couldn’t possibly be. What’s interesting is that a year on we were not continue to seek investment opportunities utilising THE NEW ELECTRIC LONDON BLACK CAB investors are still looking to invest but What we are now certain about is that there nearly as shocked at the election outcome. I feel oversees equity, increasingly in the regions. business leaders are increasingly looking for more than just money. They are looking are no certainties in politics. What we understood this is evidence of our resilience. Whilst there were In the last year, the Birmingham team completed Coventry and Warwickshire is the home of OVERVIEW for a real partner to help them grow their to be the opinion of the majority can no longer a couple of weeks of reflection it seemed most circa £400m worth of forward funding on hotel the UK automotive sector, specialising in business. be assumed. It is abundantly clear that there are then just got back to business. This was mirrored developments to various pension funds, demon- advanced manufacturing and autonomous NEW JOBS BY 2025 First and foremost LDC invests in vehicle research. This year, China-based stark factions within communities crossing in activity levels at DWF as we have seen no strating that strong UK transactions remain Source: C&W LEP people - backing management teams Geely launched a £325m factory in Anstey generational and economic divides, rural and discernible slow down as a result of the changing attractive for domestic products and investors. to continue to lead and develop their that will make electric-powered hybrid urban, geographic, and so on. political landscape. Amongst this, we have picked up new clients businesses. We work in partnership with London taxi cabs – the latest in a long line of It seems many politicians have lost touch with We still need to be alert and alive to oppor- with equity funds based overseas but with a remit 15,000 them and can share our knowledge and major investments in the sector. the electorate and are failing to implement tunities. It is a shared responsibility as members to invest in UK property and with an interesting experience from helping more than 550 The area is also home to one of the policies - or at least not fast enough - to satisfy of the business community to be innovative, to blend of equity and debt propositions. GVA management teams across the UK to UK’s largest gaming clusters. The towns of Source: ONS grow their businesses. It’s this approach, a majority and settle unrest. The unrest doesn’t support and challenge, be vocal but constructive Leamington Spa, Warwick and Southam have alongside our flexibility in structuring our appear to stem from a new set of problems but and to continue to lead and influence, least of all BUILDING CONFIDENCE been dubbed ‘Silicon Spa’ thanks to a con- investment, that helps create value for have been gathering momentum following the to be passive. Family-owned property investment and develop- centration of more than 30 gaming studios. £18bn shareholders. recession years. ment company Hortons recognises a similar This dynamism means that Coventry As part of Lloyds Banking Group, REGIONAL INVESTMENT sentiment in the market. Tony Green, Hortons’ and Warwickshire’s economy is on course FOREIGN INVESTMENTS IN 2015/2016 we have a committed source of funding, to outperform that of the rest of the UK Source: C&W LEP The Midlands remains a key market for investors, Chief Executive, commented: “Recently we have providing certainty to sellers and a over the next year, according to Coventry providing a variety of exciting opportunities for both seen continued improvement in the occupational highly flexible approach to investment for and Warwickshire Chamber of Commerce. manufacturing and service industries. Birmingham market across the Midlands region with confidence management teams. The county is also the home of William is a growing city with a young population, good maintained despite economic uncertainty. 47 We continue to do just that having Shakespeare, meaning visitors are attracted transport links, a clear economic strategy and an “Birmingham has continued to perform strongly, already invested in ten new companies from across the world. AVERAGE FULL-TIME ANNUAL WAGE across the UK this year, and provided established reputation for delivering key infra- driven by the demand for food and beverage units Source: ONS structure projects. These continue to attract and in particular. Its growing reputation as an ‘investable follow on funding to many existing retain many well-known occupiers and present city’ played a key role in enabling us to agree a OFFICES portfolio companies, such as supporting Away Resorts’ acquisition of Sandy Balls excellent opportunity for development. deal with Principal Hotels for them to fit-out and The Friargate and City Centre South scheme £28,740 Holiday Village. At DWF, we remain confident due to resilience operate The Grand Hotel, which, when it opens in Coventry is aimed at revitalising the We’ve pledged to invest £1.2billion to we’ve seen from clients and business partners; the in early 2019, will be Birmingham’s finest hotel.” run-down city centre. Friargate is a fl agship DISPOSABLE INCOME PER HEAD back management teams over the next development on a scale not usually seen Source: ONS UK is anchored in one of the most secure and stable three years, and I’m confident many of in provincial UK cities. The offi ce units will real estate markets globally. We’ve seen post-Brexit CONCLUSION these will be based in the Midlands. The feature a range of shops and leisure on the conditions present increased opportunities because Let’s not be complacent or naïve, we do acknow- combination of ambition, ability and spirit ground fl oor and total 3.2 million sq ft over £16,859 this market continues to trade at a discount to ledge that there is more turbulence ahead of us. I see in the West Midlands every day 25 buildings, including 2.3 million sq ft of (2014) international investors due to the weaker pound. However, at DWF we are confident about the makes it the place to do business. offi ces, and two hotels. City Centre South We’re maintaining faith in the West Midlands future. We have much to be proud of and are well will regenerate the southern end of the city’s KEY BUSINESSES For more information please contact: and continue to advise an eclectic mix of clients equipped to meet challenges. retail core. Jaguar Land Rover, Aston Martin, Severn Andy Lyndon via [email protected] Trent, IBM, Royal Shakespeare Company. or call 0121 237 6500 INDUSTRIAL CONTACT DETAILS Jaguar Land Rover plans to expand its existing Melanie Williams – Real Estate Head (Birmingham) and Head of Hospitality (Firm wide) facilities at Whitley to create a technology Tel: 0121 647 2492 | Mobile: 07778 342 307 | Email: [email protected]

insider SEPTEMBER 2017 43

LDC 69764 column.indd 1 01/08/2017 09:45

DWF 71499.indd 1 01/08/2017 09:41 p36-49 investment guide.indd 43 01/08/2017 16:24 ADVERTISING PROFILE

We need to address land supply Ian Mercer, partner and head of development at Bruton Knowles in Birmingham, says unlocking land for residential and commercial use is the key to the West Midlands success

The West Midlands Combined Authority (WMCA) As well as providing financial support, the has clearly set its stall out in terms of its Strategic Government is helping to speed up the delivery of Economic Plan. If the region is to deliver long-term land in more practical ways too. economic growth and prosperity, it needs to In April, the then Housing and Planning Minister, attract an extra 20,000 businesses by 2030 and Gavin Barwell, announced new measures to enable create half a million new jobs. councils to bring forward derelict and underused Furthermore, more than 200,000 new land for new homes. homes need to be built across the seven West To do so, local authorities now have to produce Midlands metropolitan councils to meet future and maintain up-to-date, publicly available housing demand. In Birmingham alone, around registers of brownfield sites, which will help 90,000 new homes are required over the next housebuilders identify suitable sites for 15 years. development. Research by the National Housing Federation The Government has also introduced a new way of piles further pressure on housing supply, obtaining planning permission through these new suggesting that the West Midlands already has a registers that will make it easier for developers to five-year shortfall of more than 45,000 homes. deliver housing by simplifying the planning process. With land supply for employment and ‘Permission in Principle’ gives developers more residential use already constraining economic certainty over whether a site is suitable for growth there are concerns that a lack of land for development ahead of working up costly proposals development could seriously hamper WMCA’s to obtain full planning permission. This will ability to deliver its Strategic Economic Plan. encourage new development and increase the Last year, in a bid to try and tackle the issue, a amount of land available to build on, thus helping new body was set up to help unlock land across to boost housing supply. the West Midlands. But it’s not just about housing. As part of its The West Midlands Land Commission (WMLC) strategy to increase land supply for commercial was formed to provide evidence on the challenges use, the West Midlands Combined Authority is in developing land, identify blockages in the seeking to develop an extra 1,600 hectares of system and to recommend measures to secure a former industrial sites, or brownfield land, over the sufficient supply of land for development. Ian Mercer, partner and head of development coming decade. The WMLC is a key plank of the combined Of course, while developing brownfield land and authority’s devolution deal with the Government. “WITH LAND SUPPLY FOR bringing empty, unused sites back into use is the Over the next 30 years, the deal will deliver an EMPLOYMENT AND RESIDENTIAL right course of action, it may only solve part of the £8 billion investment package aimed at improving land supply conundrum and raises the question of productivity and skills, delivering new transport USE CONSTRAINING ECONOMIC whether we should be developing green belt land infrastructure and homes and increasing the GROWTH, A LACK OF LAND to meet housing and employment needs? general prosperity of the region’s four million FOR DEVELOPMENT COULD One thing is clear, whether it’s brownfield or people. HAMPER WMCA’S ABILITY green belt, if the West Midlands is to continue The Government has already handed the attracting investment, people and jobs, unlocking combined authority its first £36.5 million annual TO DELIVER ITS STRATEGIC land for development is crucial to the region’s payment. ECONOMIC PLAN.” success.

CONTACT DETAILS Ian Mercer, partner, Bruton Knowles Tel: 0121 212 7662 E: [email protected]

p36-49Bruton Knowlesinvestment 71728.indd guide.indd 1 44 01/08/2017 16:2409:48 XXXSPONSORED BY ADVERTISING PROFILE WEST MIDLANDSDEALS INVESTMENT AND PROPERTY GUIDE ////////

campus, including sites for core suppliers, to meet its growing needs. TRANSPORT & RESIDENTIAL Whitley South is a 60-acre development INFRASTRUCTURE Coventry, where the average house price site straddling the A45 and located next to Coventry railway station is set for an £82m is £155,000, is – like many other Midland We need to address land supply Coventry Airport, which will include buildings revamp, with a new entrance, more parking cities – badly in need of new housing. primarily for automotive industries, including and improved surrounding roads. The work The Spirit Quarters regeneration scheme Ian Mercer, partner and head of development at Bruton Knowles in Birmingham, research and development space, light will increase passengers from six million a includes plans to build 1,400 homes, with says unlocking land for residential and commercial use is the key to the West Midlands success industrial and offi ces, hotel, car showroom year to 7.5 million by 2024. Travel times are 550 having been completed so far. There are and retail. London 1hr 26min, Manchester 2hr 8min, plans for major new housing developments Meanwhile, the planned £300m Mira Nottingham 1hr 45min, Edinburgh 5hr 36min. across Warwickshire, including up to 650 in Technology Park, near Nuneaton, will create Coventry Airport is mainly a cargo hub, but Nuneaton and 860 in Rugby under a scheme The West Midlands Combined Authority (WMCA) As well as providing financial support, the 2,000 jobs. It is also home to Lockheed has built a reputation as an alternative to put forward by David Wilson Homes and has clearly set its stall out in terms of its Strategic Government is helping to speed up the delivery of Martin, Bosc, Bentley and Michelin. London for private fl ights. Gallagher Estates. Economic Plan. If the region is to deliver long-term land in more practical ways too. economic growth and prosperity, it needs to In April, the then Housing and Planning Minister, attract an extra 20,000 businesses by 2030 and Gavin Barwell, announced new measures to enable create half a million new jobs. councils to bring forward derelict and underused OVERVIEW Furthermore, more than 200,000 new land for new homes. BLACK JOBS homes need to be built across the seven West To do so, local authorities now have to produce Source: Black Country LEP Midlands metropolitan councils to meet future and maintain up-to-date, publicly available COUNTRY housing demand. In Birmingham alone, around registers of brownfield sites, which will help 90,000 new homes are required over the next housebuilders identify suitable sites for The area comprises the boroughs of 446,000 15 years. development. Dudley, Sandwell, Walsall and the city of GVA Research by the National Housing Federation The Government has also introduced a new way of Wolverhampton. The Black Country LEP Source: Black Country LEP piles further pressure on housing supply, obtaining planning permission through these new has signed a deal with the government for £655m of investment which by 2021 will suggesting that the West Midlands already has a registers that will make it easier for developers to create more than 4,000 jobs and 1,500 five-year shortfall of more than 45,000 homes. deliver housing by simplifying the planning process. houses, support over 2,500 businesses, and £20.2bn With land supply for employment and ‘Permission in Principle’ gives developers more bring more than 4,000 apprenticeships and SPRINGFIELD CAMPUS FOREIGN INVESTMENTS IN 2015/2016 residential use already constraining economic certainty over whether a site is suitable for over 590,000 sq ft of new commercial units. source: DIT growth there are concerns that a lack of land for development ahead of working up costly proposals An enterprise zone, DY5 in Brierley Hill, has development could seriously hamper WMCA’s to obtain full planning permission. This will been given the green light and is set to bring and Pensnett, and offer hi-tech offi ce space ability to deliver its Strategic Economic Plan. encourage new development and increase the in thousands of new jobs to the region. The in the Waterfront complex, is set to bring 19 Last year, in a bid to try and tackle the issue, a amount of land available to build on, thus helping Black Country Enterprise Zone comprises a £589m a year into the region’s economy. new body was set up to help unlock land across to boost housing supply. range of sites spread over 300 acres covering The University of Wolverhampton’s £10.1m AVERAGE FULL-TIME ANNUAL WAGE the West Midlands. But it’s not just about housing. As part of its Darlaston and Wolverhampton North. investment in a new science, technology and Source: ONS The West Midlands Land Commission (WMLC) strategy to increase land supply for commercial Another highlight is the new Elite Centre prototyping centre will provide 43,000 sq ft for Manufacturing Skills at the University of of space, featuring offi ces, laboratories and was formed to provide evidence on the challenges use, the West Midlands Combined Authority is Wolverhampton’s Springfi eld Campus. workshops. The university plans to turn its £25,209 in developing land, identify blockages in the seeking to develop an extra 1,600 hectares of Springfi eld Campus into the West Midlands system and to recommend measures to secure a former industrial sites, or brownfield land, over the DISPOSABLE INCOME PER HEAD Construction University Technical College. source: ONS sufficient supply of land for development. Ian Mercer, partner and head of development coming decade. OFFICES The WMLC is a key plank of the combined Of course, while developing brownfield land and There are plans for a 50,000 sq ft offi ce TRANSPORT & authority’s devolution deal with the Government. “WITH LAND SUPPLY FOR bringing empty, unused sites back into use is the building in Wolverhampton as part of the INFRASTRUCTURE £13,707 Over the next 30 years, the deal will deliver an right course of action, it may only solve part of the city's £132m Interchange regeneration EMPLOYMENT AND RESIDENTIAL £8 billion investment package aimed at improving land supply conundrum and raises the question of project, which also includes the railway station, Wolverhampton’s station will be demolished (2014) USE CONSTRAINING ECONOMIC Midland Metro extension, the completed i10 and replaced as part of a £120m investment productivity and skills, delivering new transport whether we should be developing green belt land KEY BUSINESSES offi ce and shops complex, former Steam Mill in its transport infrastructure. The new infrastructure and homes and increasing the GROWTH, A LACK OF LAND to meet housing and employment needs? Jaguar Land Rover, Carillion, HomeServe, site and old Sack Works factory. station building is expected to be ready for general prosperity of the region’s four million One thing is clear, whether it’s brownfield or Marstons FOR DEVELOPMENT COULD It follows the success of i10, the grade-A early 2019, around the same time as the people. green belt, if the West Midlands is to continue HAMPER WMCA’S ABILITY offi ce and retail development, which was fully new Midland Metro tram extension from The Government has already handed the attracting investment, people and jobs, unlocking let within nine months of opening. The City of Birmingham to Wolverhampton city centre. 45,000 homes in 31 different areas across combined authority its first £36.5 million annual TO DELIVER ITS STRATEGIC land for development is crucial to the region’s Wolverhampton Westside project also plans Junction 10 of the M6 in Walsall is to have the four boroughs. Development will begin payment. ECONOMIC PLAN.” success. to deliver offi ces in a £94m investment. a £64.5m revamp, increasing capacity from this year and is due to complete by 2025. 8,000 vehicles an hour to 10,500. The Black Country LEP says this will boost INDUSTRIAL the region by as much as £18bn in the next CONTACT DETAILS decade. The garden city is part of the Black The Black Country Enterprise Zone at Brierley RESIDENTIAL Country’s wider housing plan to build 85,000 Ian Mercer, partner, Bruton Knowles Hill, to occupy 172 acres at Blackbrook Valley The Black Country Garden City will create new homes in the next 15 years. Tel: 0121 212 7662 E: [email protected] insider SEPTEMBER 2017 45

Bruton Knowles 71728.indd 1 01/08/2017 09:48 p36-49 investment guide.indd 45 01/08/2017 16:24 SPONSORED BY

STOKE AND STAFFORDSHIRE Recent years have brought major invest- Offi ce development is anticipated in Ceramic ments from the likes of Michelin, JCB and Valley Enterprise Zone. bet365, as well as a revival of pottery, led by companies such as Steelite and Portmeirion. Between 2010 and 2015, Stoke-on-Trent INDUSTRIAL was the UK’s second-fastest-growing local Ceramic Valley aims to create 9,000 jobs economy, at 18.6 per cent, more than fi ve developing mainly brownfi eld land around times the average, according to Oxford the A500. The Applied Materials Research, Economics. It had the sixth-fastest growth Innovation & Commercialisation Company in wage levels, at 4.8 per cent. Investors are is expected to move there. The city council picking up on it: enquiries about residential reports big interest from overseas investors. property more than doubled in 2016, says online agent eMoov. The city was boosted by Staffordshire University’s decision to shut its TRANSPORT AND Stafford campus and relocate almost 3,000 INFRASTRUCTURE students to Stoke after a £42m revamp. Stoke connects by train to Birmingham in 20min, Manchester in 40min and London in OFFICES 1hr 20min. Good road links via M6 and A50. Meaford Business Park near Stone has outline planning permission for up to 1.2 million sq RESIDENTIAL ft of offi ce, industrial and warehouse space, The area needs to build 3,370 homes a year CERAMICS MANUFACTURER DUDSON and detailed permission for a 36,000 sq ft unit. until 2030 for its projected population growth.

Good property development is all in the planning

If you would like further information on how good planning advice can add value to your property development, contact Higgs & Sons’ Commercial Property Planning specialist, Dinah Patel at: [email protected] or call 0345 111 5050 www.higgsandsons.co.uk

46HIGGS insider HP_PROPERTY SEPTEMBER NEW.indd 2017 1 31/07/2017 14:27

p36-49 investment guide.indd 46 01/08/2017 16:24 WEST MIDLANDS INVESTMENT AND PROPERTY GUIDE ////////

STOKE AND STAFFORDSHIRE OVERVIEW MARCHES OVERVIEW JOBS JOBS The global birthplace of industry, the area is Source: Stoke and Staffs LEP Source: ONS made up of Herefordshire, Shropshire and Telford and Wrekin. It plans to create 70,000 450,000 homes and almost 40,000 jobs over the next 337,000 20 years. GVA One of the UK’s largest LEPs, covering GVA Source: Stoke and Staffs LEP 2,300 sq miles, it includes the main urban Source: Marches LEP powerhouses of Telford, Shrewsbury and Hereford, and more than 30 market towns. £20.2bn The Marches has a vibrant SME business £12.3bn base and is a major centre for the security FOREIGN INVESTMENTS IN 2015/2016 sector because of its proximity to GCHQ and FOREIGN INVESTMENTS IN 2015/2016 Source: DIT the headquarters of the SAS. Source: DIT 18 OFFICES/INDUSTRIAL 16 Skylon Park Enterprise Zone in Hereford has AVERAGE FULL-TIME ANNUAL WAGE a defence and security sector focus, building AVERAGE FULL-TIME ANNUAL WAGE Source: ONS on Hereford’s association with special forces Source: ONS as home of the SAS. The 173-acre site has had multimillion-pound investment in £25,100 infrastructure, including site clearing, road £25,688 building and superfast broadband.

WORCESTERSHIRE OVERVIEW JOBS Source: ONS Between 2010 and 2014 the area had the strongest growth in higher-level skills among TRANSPORT AND the country’s 38 LEPs, the second-highest INFRASTRUCTURE growth in productivity and the third-highest A road has been built at Vale Park in Evesham 296,700 growth in prosperity. in partnership with Wychavon District GVA The county wants to create 25,000 Council, which has brought developments Source: Worcestershire County Council jobs and grow GVA by £2.9bn by 2025. by Primafruit, processor and supplier of fresh Worcestershire’s sector strengths include fruit to Waitrose. Improvement is ongoing on advanced manufacturing, cyber security, the A4440 southern link road. £10.6bn defence, IT, and agri-tech. The visitor economy is also seen as an RESIDENTIAL FOREIGN INVESTMENTS IN 2015/2016 important source of jobs growth. Source: DIT Worcestershire aims to create 21,500 homes OFFICES/INDUSTRIAL by 2025. Plans include 400 homes in south Kidderminster. 16 Worcester Six Business Park is a 173-acre site located close to the M5 motorway at AVERAGE FULL-TIME ANNUAL WAGE junction 6. Source: ONS The park has much to offer, including access to one of the best road transport networks in the UK, including the M5, M6, £27,144 M42 and M50, which traverse the county. It has outline planning consent for 1.5 million DISPOSABLE INCOME PER HEAD sq ft of manufacturing, ofﬁ ces, research and Source: ONS development and logistics buildings. Malvern Hills Science Park has the potential for at least 172,000 sq ft of new £16,744 development. (2014)

insider SEPTEMBER 2017 47

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TIME TO ACT Empower the regions

CAN THE MIDLANDS ENGINE REMAIN ATTRACTIVE TO FOREIGN DIRECT INVESTORS? There is no sign of a Brexit effect on short-term investor sentiment Mark Gregory Chief Economist, EY In 2016, the UK’s performance securing logistics sector and to attract investment Foreign Direct Investment (FDI) was solid. across the manufacturing value chain not just It remained Europe’s number one recipient of in production facilities. Time to act projects ahead of Germany, with a rise in total In the East Midlands region, it’s clear that projects to 1,144, raising FDI employment by the rise in projects are largely secured from It’s encouraging to find that 24% of 2% to 44,665 jobs. European countries and there was a large investors are planning to establish or EY’s latest annual UK Attractiveness survey increase in projects from Germany – expand operations in the UK over the Time to act: Empowering the English regions, 10 projects in total, five times the number coming year, in line with the intention shows that FDI projects into Europe rose by recorded in 2015. However, the US remained expressed over the past seven years. 15% to 5,845 but that the UK’s market share the main investor in the region. In the West The UK has also regained second of all projects in Europe fell from 21% to Midlands, investment from the US increased place behind Germany in the ranking 19%. The largest number of projects in the by 9.5% to 23 projects, Germany by 10.5% of Europe’s top FDI destinations - a UK were from sales and marketing activities, to 21 projects, and France also rose 16% to position briefly lost to France in our post- which rose 32% and logistics projects, up 7 projects. Conversely, Chinese and Indian referendum study in October 2016. by 30%. Financial services and business projects fell. However, our study shows that 31% services posted strong growth, sustaining As a result to the investment projects, of investors expect FDI to decline over the UK’s lead in Europe in these two sectors. almost 10,000 jobs were generated in the the coming three years, while 33% The number of investment projects by Midlands overall from FDI. 8,388 in West expect it to improve. These figures are manufacturers increased from 355 to 374. Midlands and 1,566 in East Midlands. This significantly worse than both the long- Simon O’Neill represents the highest annual total over term average and the high point of 2013 Managing Partner, EY Midlands Regions: the potential is clear the past 10 years, resulting in the region when 65% of investors had a positive There are mixed messages to be drawn from representing 22% of UK employment. three-year view of the UK. the performance of the UK’s regions in 2016. Midlands 44. These figures indicate the Their concerns are about future trade Looking across the UK, the Midlands Engine highest number of projects in any year in the UK’s continued ability to attract and migration policy with the possibility and Northern Powerhouse are now attracting past decade, meaning the Midlands as a FDI will be under close scrutiny of facing more complex customs nearly double the number of projects they whole secured almost 14% of all UK projects, in the run-up to Brexit processes, the risk of tariffs on European secured at the beginning of the last decade, again a high point for the past decade. The UK economy continues to perform well trade, and gaps in skills availability. 50% clearly demonstrating the potential of the With automotive at the core, the West and the outlook for FDI remains strong in of investors in Western Europe expect English regions. The core strength of the Midlands is very much known as the the short-term. FDI remains a vital source of the UK’s attractiveness to decline over Midlands and Northern regions is manufac- manufacturing hub of the UK. Investment capability, economic activity and jobs for the the next three years, and manufacturers turing and the strong performance of West in the automotive sector continues to be the UK’s regions and the UK’s continued ability are on average twice as pessimistic Midlands and both Yorkshire and the Humber most numerous, generating 21% of to attract it will be under close scrutiny in the as financial services and technology in 2016 was built on this. The continued suc- the region’s investment projects. Software, run-up to Brexit in 2019. However, if the UK companies. Our research also identified cess in attracting FDI in the manufacturing construction, machinery and equipment is to succeed in the future it needs to make that 9% of investors could leave the industries continues to underpin economic were amongst other sector investments. the most of all its resources. The signs are UK in the next three years, but the UK activity in large areas of the country. Logistics projects represented the biggest that without more support from the industrial still has time to act to secure its future For the third consecutive year, investment single sector in the East Midlands, followed strategy and a sufficient allocation of attractiveness in a post-Brexit world, secured in the Midlands rose by 21%, by automotive assembly and food projects. resources, especially infrastructure and skills, provided it moves quickly. taking the region’s new project count to 155. As the performance figures shows, this base the more peripheral regions, cities and towns The West Midlands attracted 111 and East has allowed this region to build a successful will miss out on the benefits FDI brings.

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TIME TO ACT Empower the regions

42 insider SEPTEMBER 2017 insider SEPTEMBER 2017 4349

EY 71464.indd All Pages p36-49 investment guide.indd 49 01/08/2017 09:5216:24 ADVERTISEMENT

GLOBAL AMBITIONS FOR BIRMINGHAM DEVELOPER

The company that has put Birmingham on the map for Chinese property investors has designs on bringing in financiers from other corners of the globe.

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