OUR REGIONS. 2019 Our leading regional cities are undergoing a renaissance.
Andrew McFarlane | Head of the Regions
2 | Our Regions Colliers International | 3 Foreword
Across the regions there is evidence that a power law is in operation. Each development in a city drives it forward and the aggregate effect of one development Andrew McFarlane building on another, over time, produces the Head of the Regions same non-linear effect as compound interest. As each year passes, the benefits for our leading regional cities come faster and with greater impact. Our best days lie ahead.
Across the regions we have more than 300 people working from offices in Glasgow, Edinburgh, Belfast, Liverpool, Manchester, Leeds, Sheffield, Birmingham and Bristol. They are talented individuals who, through Tony Horrell living and working locally, are woven into Chief Executive Officer the fabric of their cities and city regions. UK and Ireland Colliers International is committed to providing exceptional service to clients. Through constant review, we deliver innovative ideas and solutions with continuous improvement being at the heart of everything we do. Our property professionals manage client programmes of all sizes and complexities. Working efficiently and effectively to achieve exceptional results on your behalf is our primary goal. Through ongoing investment in our people, technology, and services, we are confident that we will continue to exceed your expectations and add value to your business objectives.
4 | Our Regions Colliers International | 5 Squarestone
Location: GLASGOW Central Belt Size: 195,000 sq ft Building type: Industrial & Logistics
How we helped The Scottish Capital Markets team was appointed on the investment sale of five single let industrial units. Following extensive marketing and a formal closing date, the team secured a sale well in CITY CENTRE OFFICE PRIME OFFICE 3RD OLDEST HOME TO excess of the asking price, RENTS GLOBALLY, reflecting an initial yield of TAKE-UP 2018 YTD INVESTMENT OVER SUBWAY 7.7 per cent. CARRYING 13M 130,000 AT A RECORD THE LAST PSF STUDENTS FROM 4 QUARTERS £32.50 PASSENGERS PA SQ FT WITH LETTING TO UNDERGOING 1.2M CLYDESDALE 135 COUNTRIES £700M+ BANK £300M INVESTMENT
The success of Glasgow’s office market University of Glasgow sees the supply of Grade A space at an Sighthill Park Area M8
all-time low. No new build is capable of Kelvingrove M8 Art Gallery + Museum Kelvingrove Park delivery until at least 2020, which is good M8 Cowcaddens Sauchiehall DOUGLAS MCPHAIL Glasgow The Glasgow Caledonian University Townhead news for quality refurbishments. A lack of Theatre School of Art Royal Royal +44 141 226 1067 Conservatoire Charing Cross Mitchell Kings available sites has seen focus turn south Library Theatre Sauchiehall Street Buchanan [email protected] Shopping Centre Bus Station Concert Royal Infirmary Blythswood Hall Buchanan of the River Clyde for the first time in a Malmaison Blythswood Galleries Square City of Glasgow Blythswood College Hotel
M8 generation, as Drum Property Group are Conference Events Queen Street University of Strathclyde Glasgow Station Cathedral Quarter Finnieston SEC Centre Central Business District George Square set to deliver 450,000 sq ft of Grade A The Learning Quarter SSE Grand Crowne Plaza Hydro Central SEC Hilton Hotel Gallery of Italian Armadillo IFSD Modern Art Centre office space to Barclays Bank at Buchanan Central Science Centre Station
BBC Scotland Radisson Merchant Wharf. In addition, the Buchanan Quarter Blu Argyll Arcade Square Candleriggs Quarter Collegelands St Enoch Merchant City will see hotel, residential and supporting Village Hotel Shopping Centre
M8 St Enoch users, helping to satisfy the seemingly Media Quarter Glasgow Quay Barrowlands insatiable desire for city hotel beds and the
Sheriff Glasgow Green burgeoning Build-to-Rent (BTR) market. Court
City of Glasgow College M8
M8
M77
Scotland Street School Museum M74
6 | Our Regions Colliers International | 7 Tartan Leisure
Location: EDINBURGH Craigpark Quarry Size: 23.4ha Building type: Leisure
How we helped The Planning team provided the strategy to enable planning permission to be granted for leisure use and ancillary accommodation, located in a ‘countryside’ area, as defined by the Local END OF Q3 2018, PRIME OFFICE GVA PER CAPITA AT Development Plan (LDP). RANKED A community consultation OFFICE MARKET RENTS £12BN 2ND DEVELOPMENT IS IN THE WORLD and key stakeholder strategy TAKE-UP EXCEEDS £34,500 was also provided to the PSF IN THE PIPELINE AHEAD OF LEEDS, FOR QUALITY 10-YEAR AVERAGE £34 client, which ensured that MANCHESTER OF LIFE the unanimous decision of 1.1M SQ FT AND LIVERPOOL Edinburgh Council’s Planning Committee was obtained.
Edinburgh Academy City centre prime office rents continue to Fettes Row
soar and seem set to confirm the success Brunswick Stockbridge of schemes such as M&G’s Haymarket. New Town
Edinburgh The Edinburgh Henderson St James Playhouse
BOB FISHER Multrees Walk St James Quarter Harvey Calton Hill development, already impacting upon the Nicholls +44 131 240 7522 Water of Leith St Andrew Square Royal High [email protected] skyline, is set to complete in 2020 and will Retail Core School
Balmoral Hotel
Holyrood transform retail in the city. Strong hotel bed Dean Village Palace Edinburgh Waverley Station Charlotte New Square Scottish Waverley Parliament Building occupancy (82 per cent), along with recent North Bridge
Scottish Princes Street Gardens National Galleries Royal Mile developments and consents for several more Waldorf Old Town Astoria Hotel St Giles West End Cathedral Edinburgh schemes, have led to calls for a Tourist Levy Castle University Quarter
Usher Hall Old College of £1 or £2 per night to support the city’s Festival Square Dewar Sheraton National Place Hotel Museum of Scotland AIRPORT Edinburgh Festival Holyrood 12k International Theatre Park Conference infrastructure. Centre (EICC) George The Heriot’s Haymarket School Haymarket Station University of Exchange District Edinburgh
Quartermile George Square
University Library
India Quay
The Meadows
Fountainbridge
8 | Our Regions Colliers International | 9 db symmetry
Location: NEWCASTLE Darlington Size: 1,507,000 sq ft Building type: Industrial & Logistics
How we helped An online retailer has signed an agreement for lease for a 1.5 million sq ft fulfilment centre in Darlington in the North East of England. The letting is the largest industrial and logistics deal PRIME HEADLINE ENTERPRISE in the North East ever. £84M £12.7BN £3.6BN 21 OFFICE RENTS Colliers International’s INVESTMENT THE VALUE OF VISITOR ECONOMY ZONES ACROSS Industrial & Logistics team IN NEW HOTEL EXPORTS IN IN THE REGION £23.50 PSF DEVELOPMENT 296 HECTARES advised db symmetry on the GOODS FROM off-market acquisition of the THE REGION 90-acre site and subsequent pre-let to the tenant.
Newcastle and the North East region continue to go from strength to strength. New high quality jobs in the offshore energy and automotive sectors are helping to drive SIMON HILL economic growth. Transport investment in +44 113 200 1823 [email protected] the East Coast Main Line and an additional £600 million worth of funding expected from a ‘North of Tyne’ devolution deal will further bolster confidence in the region.
10 | Our Regions Colliers International | 11 Silverwood Property Developments
Location: BELFAST Ballymena Size: 900,000 sq ft Building type: Industrial & Logistics
How we helped Colliers International provided strategic acquisition advice for the off-market purchase of the former Michelin Factory M2 in Ballymena. Our client’s proposal was structured to HOUSE PRICE OF WORLD’S OVER HOTEL #1 LOCATION showcase their ability as 10% INDEX INCREASED TOP 1M an experienced industrial THE GLOBAL DESTINATION CITY ROOMS SOLD IN GLOBALLY FOR investor, with the skillset to BY IN FOR Q1 2018 CYBER SECURITY FX MARKET 4.4% FINANCIAL reposition the asset from a FLOWS THROUGH Q2 2017+Q2 2018 TECHNOLOGY INVESTMENT Port of Belfast M2 large manufacturing facility BELFAST DAILY INVESTMENTS to a multi-let business park. Titanic Belfast Our Industrial & Logistics Clarendon M1 team worked collaboratively with the client to secure this Education Arts sought-after asset prior to & Media Quarter Titanic Quarter it being brought to the open Odyssey Belfast and Northern Ireland offer a unique, market. M3 world-class business environment in a low Cathedral operational cost region that provides a ‘best Quarter in class’ education system and workforce. Castlecourt Retail Core JONATHAN MILLAR Eastern Bank It is a highly accessible location, with a global Victoria Law Square +44 28 9051 1008 Quarter [email protected] reputation among start-up and international
enterprises as a positive, straightforward Waterfront Quarter
M1 region in which to work and live. Financial District Central Transport Hub Station
Great Victoria Street Markets
Gasworks Shaftsbury
Botanic
Queens Quarter
12 | Our Regions Colliers International | 13 Kier/CTP
Location: LIVERPOOL Liverpool Size: 400,000 sq ft Building type: Regeneration scheme
How we helped A joint venture between Kier and CTP was appointed by Liverpool City Council to deliver this important city centre regeneration scheme. The scheme objective is to expand the Liverpool CBD REGIONAL INDUSTRIAL PSF PRIME with the addition of three 151,000 £7.5BN+ £22 ECONOMY WORTH PRIME RENTS AT PEOPLE IN OF PHYSICAL GRADE A OFFICE new high quality office MORE THAN FINANCIAL, INVESTMENT IN SPACE, 1/4 OF THE PSF buildings alongside a hotel. £6.25 Colliers International is PROFESSIONAL THE LAST COST OF LONDON £149BN the commercial advisor to AND 10 YEARS OPTIONS BUSINESS the joint venture, having SERVICES supported them through the procurement process. We have now been appointed joint letting agent of over 400,000 sq ft of Grade A Ten The Liverpool City Region is at the centre of Streets office space in a market that New Police HQ has high levels of demand the UK’s second largest regional economy, Central Docks A and limited supply.
A with 236,000 businesses. Liverpool is Pum ields ingsway Tunnel
home to global Fortune 500 companies, Liver ool Liver ool Ho e John Moores University University ANDY DELANEY complemented by a large, diverse base of iver ool +44 151 433 0352 Waters Pall Mall St Paul’s E change Fabric District Square [email protected] World Museum innovative SMEs and start-ups. In 2018, North iver ool Water ront Inset Princes Dock Business District Walker Art Gallery Royal Liver ool The St eorge s Quarter University Hos ital Ca ital Moorfields Liverpool delivered strong performance Station Malmaison St George’s Hall Tro ical School Queen of Medicine Square Town Hall istoric across all property market sectors. This Crowne Pla a Lime St Station nowledge Quarter Lock Downtown Metquarter St John’s A
Cruise Liner Sensor City Terminal Royal Liver Paddington included numerous transactions, most illag e Pro osed Building Everton FC Stadium Retail Core Adel hi Hotel Cunard Building James St Station Metro olitan Cathedral significantly the £125 million purchase of Northern Docks Port of Liver ool A Building Central Station University of Nelson Dock Liver ool Liver ool A One Mann Island Buildings India Buildings. The number of key projects Liver ool Queensway Tunnel John Lewis John Moores Titanic Hotel University Sailsbury Collingwood Hilton Hotel Ro eWalks ictoria Dock Dock Stanley Dock Tower currently under construction emphasises FACT Tobacco Clarence Dock Warehouse Police HQ Creative Quarter Philharmonic Trafalgar Hall continued investor confidence; most notably Dock Albert Dock
Ten Paddington Village, ION Developments’ Lime iver ool Baltic illage Chinatown Waters Streets Water ront Liver ool eorgian Quarter Women’s Hos ital Street scheme and Peel’s further investment Central Docks ACC Liver ool ings Anglican on Liverpool’s waterfront. Dock Cathedral
E hibition Centre Liver ool ingsway Tunnel Baltic Triangle
iver ool City Centre Queens Dock Cain’s Brewery
The eel
Scale m
Disclaimer: The districts designated on this city centre map are recognised generally by a majority of agency practitioners in Liverpool, though they are solely the subjective and professional opinion of Colliers International. The map draws from a number of third party sources and will be updated regularly. However its accuracy cannot be guaranteed or relied upon and no responsibility is accepted or to be assumed for any error or omission.
July 2017
14 | Our Regions Colliers International | 15 Hermes Investment Management
Location: MANCHESTER Manchester Size: 900,000 sq ft Building type: Mixed-use
How we helped Colliers International acts for Hermes Investment Management, helping shape its 20-acre, mixed-use NOMA scheme in the city centre, where Amazon has signed to occupy the OFFICE MARKET PRIME YIELDS CITY CENTRE Q3 2018 GRADE A £34 million, 90,000 sq TAKE-UP BETWEEN £62.8BN GRADE A RENTS OFFICE SPACE ECONOMY GVA ft refurbished Hanover, UNDER CONSTRUCTION 1,248,755 4.75% - 5% £36 PSF for its first major UK hub SQ FT SQ FT outside of London. This deal 1.2M continues the spectacular growth of what has been tipped as one of the UK’s first ‘innovation districts’ by the Brookings Institute, a leading US think-tank. NOMA
Green Quarter centres on a vibrant new
Manchester enjoys a broad day - and Angel Meadow community of highly skilled The Arena O A D R G technology jobs, based in a N Victoria I Station nighttime economy, and a graduate retention R Y New Cross A NO A range of heritage buildings W
Y T I New Victoria N built during the Industrial rate of over 70 per cent from the city’s I R T The National Football Revolution. When complete, world leading universities. The rocketing Museum Printworks Ancoats Sal ord Village the scheme will provide MICHAEL HAWKINS Harvey local population takes up the new supply of Nichols 2.5 million sq ft of both Manchester R IN G R O A D +44 161 831 3354 Arndale Northern Lowry new-build and renovated Salford Central Station Hotel Retail Core Quarter [email protected] quality city centre homes as they become Royal Exchange New Islingtonoffice space, at various price
House of available and feeds the city’s highly educated Fraser points, situated alongside
New Bailey Piccadilly North King Street Piccadilly housing, public realm, retail workforce. It is an ideal place for new and Gardens East Village Middlewood and leisure opportunities. Locks expanding companies looking to recruit, grow S inning ields Central Business Core Town West End Hall Manchester China Piccadilly Art Gallery through investment and retain their talent. St ohn s Quarter St Peter’s Town Square
Midland Piccadilly Central As a result, the city has attracted a number Museum of Great Hotel Proposed HS2* Science & Northern The Piccadilly Industry Station Manchester Village Central Conference of large office relocations. 2018 has been Centre PETER GALLAGHER Peter s Fields Hilton +44 161 831 3361 Hotel Bridgewater a record year with over 1.5 million sq ft of Hall North Cam us ay ield [email protected] Castle ield office take-up. Deansgate Station Oxford Road Station *Indicative only route of planned HS2 approach to Piccadilly First Street Corridor anchester Cultural Quarter Southern ateway A56
A 5 7 ( M ) R I N G R O A D
16 | Our Regions Colliers International | 17 Sainsbury’s Supermarkets
Location: LEEDS Moor Allerton Size: 110,000 sq ft Building type: Retail
How we helped Colliers International was appointed by Sainsbury’s Supermarkets to lead the reinvigoration of this strategically located retail park adjacent to their popular North Leeds store. SINCE 2013, ALL-TIME HIGH THIRD PSF We acted as development TRINITY SHOPPING INVESTMENT 5TH BEST £30 UK CITY FOR NEW HEADLINE STRONGEST and asset managers, CENTRE HAS HAD LEVELS IN H1 2018 RETAIL LOCATION overseeing a refurbishment FOREIGN RENT FOR GRADE of the park and its re-letting 120M VISITORS £239M INVESTMENT A OFFICE SPACE OUTSIDE LONDON to occupiers including Argos, TRANSACTED Habitat, Laura Ashley, Costa Coffee and Anytime Fitness. Colliers International is now instructed to sell the investment interest in the park. University of Leeds Leeds is the UK’s fastest growing city and A58 M
A64 M Leeds Beckett University Knowledge Quarter Queens First Direct the main driver of a city region with a £64.6 Square Arena Arena Quarter College of Civic Technology Hall billion economy, a combined population of Leeds General Merrion Centre Infirmary Millennium Square
3 million and a workforce of 1.37 million. A58 M Civic Quarter Cathedral Magistrates Town St Johns A64 M Courts Hall Centre Grand BEN HALL More than £3.9 billion has been invested The Light Theatre City Park Square Leeds City +44 113 200 1818 The Varieties College Core Victoria Victoria Former Dakota Quarter Quarry Hill Quarry in large scale development projects during Hotel Gate House A58 M International Library [email protected] Pool Site Bond Playhouse Court Shopping Quarter College of Music Kirkgate Bus Station Central Business District Market Dance the past decade, with a further £7.3 billion Centre Crowne Met City Square Former Plaza Hotel Trinity Yorkshire Post Site Corn Exchange Wellington Queens Marriott under construction and in the pipeline. The Hotel Place Hotel The Calls Aire Valley
Whitehall Train Station Leeds South Bank area is a key focus for Riverside Malmaison Hotel Sovereign Brewery Wharf Proposed HS2 Station* the city and will be the next chapter in its Hilton Hotel Quarter Former Brewery Tower Granary Site Works Wharf ASDA House South Bank Central Royal evolution. With the planned improvements Bridgewater Armouries Place The Round Ruth Gorse Foundry Academy in connectivity spearheaded by the Holbeck Urban Village A61 Leeds City Leeds College Office Park of Building Leeds Dock Temple redevelopment of the Leeds station, the Works Crown Point City Walk Shopping Park Leeds City prospects for property returns in the area College Southern Gateway are extremely positive. Proposed HS2 Corridor*
M621
*Indicative only
18 | Our Regions Colliers International | 19 Durann Holdings
Location: SHEFFIELD Sheffield Size: 126,000 sq ft Building type: Mixed use
How we helped This was a new acquisition for Durann Holdings. The asset was mobilised rapidly and within the first six months of instruction, Colliers International implemented a targeted RENTAL YIELDS £24.8BN 65,000 £78M £300M programme of service ECONOMY STUDENTS AT INVESTED IN INVESTED INTO 8.51% improvements in partnership SHEFFIELD’S TWO PRIME CITY MEADOWHALL with both the client and tenants, including the WORLD-CLASS CENTRE OFFICE SHOPPING CENTRE STOCK IN H1 2018 retender of key contracts UNIVERSITIES and improvement in communications throughout.
2018 saw the opening of new factories for both McLaren Cars and Boeing, cementing Kelham A61 Island Museum The Chimney A61 Sheffield City Region’s global lead within House Kelha sland
areas of advanced manufacturing, design A61 A61 Holiday GUY GILFILLAN A61 Inn and technology. In the centre of Sheffield, the iverside A61 +44 114 212 3990 est Bar ‘crane count’ is at its highest ever level, as is Sheffield Crown Court [email protected] Hampton by Hilton Hotel Hilton Hotel St Vincent s Quarter Victoria Quays the investment in Grade A buildings by major University of Sheffield Castlegate International College Cathedral Quarter Premier Inn A61 Paradise funds and institutions. HSBC’s new 140,000 Sq Park Sq Cathedral Castle Sq sq ft office building is nearing completion Ponds Forge Cutlers Hall St George s University of Church Sheffield Leopold Sq Orchard Sq Shopping ark Hill Centre and construction of the next phase of University of St George s Quarter The Sheffield Prime Retail Crucible City Hall Area Sheffield Lyceum Interchange The Town Hall Aberdeen Standard Investments’ The Moor Circle John Peace Winter Shea Valley A61 Gardens Lewis Gardens Millennium Gallery Heart o the City Hotel ovotel is underway, including a ‘supersize’ store for Sheffield Hallam Devonshire University Green
Charter H&M. Plans for the 330,000 sq ft extension Devonshire Quarter Square Sheffield Midland Station
A61 Furnival Site to Meadowhall Shopping Centre are Square Gallery Jurys Inn Yorkshire Artspace progressing, which will make it the fourth The Moor The Moor Cultural ndustries Quarter A61 largest in the UK upon completion in 2021. Market
Moorfoot A61 Building
Premier Inn
A61
20 | Our Regions Colliers International | 21 Decathlon
Location: BIRMINGHAM Brackmills, Northampton Size: 190,000 sq ft Building type: Industrial & Logistics
How we helped Decathlon was seeking a new facility to allow for current and future expansion but needed to stay close to Northampton to retain their existing workforce. Colliers International B16 LADYWOOD introduced Decathlon to SQ FT SQ FT IN 2M £1.6B 1M+ SAW HIGHEST 12.9% a national developer and PRIME OFFICE PROJECTED INCREASE IN secured a new 250,000 130 DEALS UK HOUSE PRICE UNDER ECONOMY BOOST EXPORTS FROM sq ft distribution hub with IN 2017 INCREASE IN 2017 CONSTRUCTION FROM 2022 THE MIDLANDS expansion for up to COMMONWEALTH 17% IN 2016/17 350,000 sq ft. GAMES In doing so, Colliers International helped Decathlon satisfy its occupational requirements
A47 The Midlands Engine is running full steam and future-proof its A38 Aston University distribution needs in a local Jewellery Quarter St Pauls Sq A4540 ahead. Birmingham has secured the 2022 Birmingham Eastside market with few alternative Children’s Hospital options available. Commonwealth Games, Coventry has been A47 Crown Court A competitive market tone Birmingham City University Millennium announced as the 2021 City of Culture Point was achieved as part of Snow Hill Station JAMES CUBITT Central Business Proposed HS2the Corridor deal, together with a and there are many other large inward District St Phillips Sq significant contribution +44 121 265 7580 House of A4540 103 Fraser investment irons in the fire that will boost Colmore Row Proposed New HS2 Station towards fit out. [email protected] Council House Library of Paradise Museum Barclaycard Birmingham Victoria Sq Arena Town the Midlands economy. The region has a The Rep Hall M&S The International Retail Convention Centre Moor Street Rotunda Station vibrancy that hasn’t been felt for many Selfridges Arena Central Brindleyplace New Street Station The Bullring
John Lewis years and is now recognised as a serious The Debenhams Mailbox Harvey Nicholls Westside Digbeth Institute alternative to London in terms of affordability China Town Digbeth Digbeth The Coach Station Cube Wholesale Markets and lifestyle. The The Arcadian Hippodrome
o2 Academy Five Ways Birmingham Roundabout
A4540
A38 Southside Edgbaston
A4540
A4540
22 | Our Regions Colliers International | 23 Aviva Investors
Location: CARDIFF Cardiff Size: 6,743 sq ft Building type: Offices
How we helped The Building Consultancy department has assisted Aviva Investors in the settlement of dilapidations with tenants and the project management of fabric repairs and enabling works. The contract value of the INDUSTRIAL IN 2017, RECORD FIRST PHASES OF SQ FT landlord’s enabling works TAKE-UP INVESTMENT CENTRAL QUAY 3.8% 167,000 OFFICE BASED GRADE A UNDER was £207,000. Works were VOLUMES TO BEGIN SQ FT EMPLOYMENT CONSTRUCTION completed within 12 weeks £2.3M from instruction – including IN 2017 ACRES GROWTH £305M 14 preparation of specification, OVER THE NEXT tender documents and 5 YEARS tender process, as well as a build period of eight weeks. Colliers International’s swift preparation and settlement The remarkable transformation of Cardiff city of the existing tenant’s dilapidations enabled centre over the past five years looks set to Aviva Investors to reach an continue in the short to medium term. The acceptable exit agreement with the tenant, which ongoing Central Square and Capital Quarter resulted in our client JOHN OSBORN regeneration projects alone will see the agreeing a new lease with +44 29 2105 5723 improved covenant. [email protected] provision of in excess of 1.5 million sq ft of new Grade A office space plus associated new transport hub, retail and residential accommodation. These will be joined by 2.5 million sq ft of mixed-use regeneration on the former Brains Brewery site when it comes on board in 2019. The further full growth potential of the region will, however, be dependent upon the delivery of major infrastructure projects such as the South Wales Metro system and M4 relief road.
24 | Our Regions Colliers International | 25 Aberdeen Standard Investments
Location: BRISTOL Bristol Size: 69,754 sq ft Building type: Offices
How we helped The National Capital Markets team in Bristol has sold the freehold interest in 1 Rivergate, Temple Quay on behalf of Aberdeen Standard Investments. The highly specified office occupies OFFICE RENTS HOLIDAY SITES IN 2017, OFFICE OVERALL TAKE-UP a prominent position at Bristol’s prime office ROSE BY 22% HAVE REACHED AVAILABILITY INCREASE IN SQ FT FOR location. The property is AT ALL-TIME 1M+ let to OVO Energy Limited. IN NUMBER OF THE 3RD TIME IN 20%+ £77,000 LOWEST LEVEL Following two rounds of 2 YEARS INDUSTRIAL PER ACRE 4 YEARS bids, the property was put DEALS COMPARED C.618K SQ FT under offer and completed in TO PREVIOUS YEAR less than 10 days, a price of £27,600,000, showing a net initial yield of 5.84%. Colliers International’s Business Space Lease Advisory team advised the client on the The South West will continue to thrive surrender of BT’s head lease and the grant of OVO Energy as the regional economy is so buoyant. St auls Limited’s reversionary lease. Not surprisingly, there will be further BBC
Bristol Royal Bus & Coach Infirmary Station House of growth across all sectors this year and Cli ton Fraser TIM DAVIES with the support of the Metro Mayor Broad ead Cabot Circus ni ersity o Retail Quarter ld ar et +44 177 917 2048 Bristol Ca us
and the combined authority, there is no Bristol Museum & [email protected] Art allery Bristol Marriott reason why this will not continue in the Hotel Castle Park ld City Colston Hall future. A consequence of this will be St hili s
Fin els Reach more opportunities for inward investment, Brandon ill ar Street Hippodrome Radisson Blu Hotel College reen improved infrastructure and a more ld Vic Queen Hilton S uare Area Hotel Temple e le Quay responsive planning system. Without doubt, uay Enter rise one The At Bristol Bristol ueen Square Science Centre Hotel
arbour eisure Quarter Bristol City the future looks bright. Council SS reat Britain Temple Meads Station Redcli e Lloyds St Mary Redcliffe
M Shed Museum
S i e sland
South ille otterdown Bed inster
26 | Our Regions Colliers International | 27 DATA VAULT
RENTS AND YIELDS Q3 2018 HOUSE TO SALARY RATIO INVESTMENT VOLUMES FOR ALL PROPERTY
AVERAGE REGIONAL OFFICES RETAIL INDUSTRIAL HOUSE PRICE AVERAGE SALARY RATIO £ MILLION Q3 2018
RENTS INITIAL ZONE A RENT INITIAL RENTS INITIAL 1 SEPTEMBER 2016 - 1 SEPTEMBER 2017 - REGION CITY £ POUNDS MEAN £ % CHANGE £ PER SQ FT YIELDS % £ PER SQ FT YIELDS % £ PER SQ FT YIELDS % 31 AUGUST 2017 31 AUGUST 2018
Aberdeen 29.00 6.25 155 8.00 9.00 6.25 161,439 31,951 6.5 103 323 214%
Scotland Edinburgh 32.50 4.50 250 4.75 8.50 6.00 264,745 33,312 10.3 1,255 946 -25%
Glasgow 31.00 5.25 310 4.00 7.50 6.00 137,507 26,579 6.2 497 808 63%
Northern Ireland Belfast 21.50 6.00 150 6.75 5.00 6.25 129,203 - - 139 50 -64%
Newcastle 30.00 5.00 250 4.75 6.25 5.25 183,892 27,637 8.0 208 517 149% Yorkshire & Humberside Leeds 23.50 5.50 265 5.50 5.25 5.50 161,443 28,458 7.3 214 215 0% North East Sheffield 24.50 5.25 180 6.00 6.25 5.50 167,850 25,700 7.5 140 346 147%
Liverpool 22.00 5.25 265 4.75 6.25 5.50 134,564 25,550 6.0 232 326 41% North West Manchester 35.00 4.75 280 4.50 7.00 4.75 181,590 25,013 8.3 875 1,518 73%
Birmingham 33.00 4.75 295 5.50 6.75 4.75 187,629 26,430 8.4 1,147 982 -14% Midlands Nottingham 19.50 5.50 250 5.00 5.95 5.00 144,840 22,894 7.4 290 182 -37%
Bristol 35.00 4.75 155 5.25 9.00 5.00 285,262 27,983 11.8 683 523 -23% South West & Wales Cardiff 25.00 5.50 210 5.50 6.50 5.50 207,632 28,721 8.9 427 392 -8%
City 68.50 4.00 300 3.50 - - 896,312 54,498 - 8,143 8,985 10%
London West End 120.00 3.75 - - - - 990,138* 78,077* 23.5 5,618 3,713 -34%
Bond Street - - 2,000 2.50 - - - - - 32 384 1,100%
Heathrow 23.00 5.25 - - 16.00 4.25 417,173** 30,167** 15.8 535 317 -41%
Source: Oxford Economics, ONS (2016 Population Estimate) Source: Property Data Source: Oxford Economics, ONS (2016 Population Estimate) Source: Colliers International * City of Westminster * Westminster ** Hillingdon ** Hillingdon
28 | Our Regions Colliers International | 29 TRACK RECORD
Co-operative Portfolio Client name: Central England Co-operative Size: 800+ properties
How we helped Colliers International’s Corporate Solutions team has been instructed to provide occupier management services. The estate extends to in excess of 500 multi-sector investment properties and in excess of 300 operational holdings, predominantly comprising convenience stores and funeral homes. The instruction Tetley Brewery Village | Leeds was part of a multi-disciplinary mandate that includes Valuation Advisory and Rating services.
Tetley Brewery Village, Leeds Client name: Vastint Size: 8.1 hectares
How we helped Colliers International’s National Offices team advised Carlsberg on the most efficient route to market and sell 8.1 hectares of land, including the former Tetley Brewery site in South Bank, Leeds. Working closely with Leeds City Council’s Planning department and other stakeholders, Vastint plans to redevelop the site to create a vibrant, well connected and sustainable mixed-use neighbourhood.
1 Cathedral Square, Bristol Client name: RevBrown Holdings c/o Castleforge Partners Size: 56,059 sq ft
How we helped Colliers International acted in the disposal of the £33.5 million office building on behalf of Castleforge Partners. The team undertook a full marketing program, concluded following best bids, and liaised with solicitors throughout the process. Sale price reflected a net initial yield of 4.98%. The deal completed within 10 working days of despatch of legal papers. The ground floor was let to Bristol University at £31.00 per sq ft, with the second and third floors Co-operative Portfolio | Birmingham 1 Cathedral Square | Bristol leased to Dyson Technology at a record rent of £32.50 per sq ft.
30 | Our Regions Colliers International | 31 TRACK RECORD
Kirkby, near Liverpool Client name: St Modwen Size: 400,000 sq ft
How we helped Colliers International advised St Modwen in the acquisition of the site from Tesco and is retained as shopping centre agent. The team is now providing development consultancy and leasing advice in respect of the 130,000 sq ft retail warehouse and leisure developments.
Jurys Inn, Edinburgh Client name: Leonardo Hotels / Fattal Properties Europe Size: 186 bedroom Jurys Inn hotel plus development
How we helped In August 2018, Leonardo Hotels purchased the 186-bedroom Jurys Inn Edinburgh, which has planning permission for a 101-bedroom extension and an Jurys Inn | Edinburgh adjacent building, which has planning permission for the development of a 131-bedroom NYX branded hotel, in a deal worth £52 million. The Hotels Valuations team provided valuation advice to the client during the acquisition process.
Pontegadea UK, Glasgow Client name: Pontegadea UK Size: 34,000 sq ft
How we helped Colliers International provided technical due diligence prior to purchase and preparation of a 10-year planned preventative maintenance plan covering fabric and M&E.
Kirkby | Liverpool Pontegadea UK | Glasgow
32 | Our Regions Colliers International | 33 TRACK RECORD
121 Winterstoke Road, Bristol Client name: Aberdeen Standard Investments Size: 85,249 sq ft
How we helped Colliers International acted in the acquisition of the office building, which has a total value of £51,850,000. The team dealt with client cashflows, provided market reports and acquired following best bids against the major annuity buyers, with close liaison with solicitors throughout. A 20-year lease was agreed with five yearly CPI rent reviews. An initial yield of 4.50% achieved.
Copse Walk, Cardiff Client name: XLB Size: 13,172 sq ft
How we helped Colliers International has advised on the refurbishment, marketing and letting strategy of the Copse Walk | Cardiff 13,172 sq ft of office space that was vacant. During 2018, we have let 6,433 sq ft and have 4,518 sq ft under offer.
Prudential Building, Liverpool Client name: Finnery Acquisitions | SARL How we helped The condition of the roof was identified as a concern at purchase and the lender imposed specific requirements in respect of same. Colliers International was responsible for specifying and tendering the necessary works of making good, including internal repair and replacement of damaged structural timbers, while negotiating with this incumbent tenant both in terms of access and agreeing costs. The team had to agree the works with the Liverpool Listing & Conservation Planning teams, making this very much a multi-stakeholder process. The conclusion was that the lenders conditions were satisfactorily discharged and the owner (Oval) was able to sell to the current owner (Finnery). Colliers International was retained as managing agent.
121 Winterstoke Road | Bristol Prudential Building | Liverpool
34 | Our Regions Colliers International | 35 TRACK RECORD
The Landmark, Manchester Client name: Barings Real Estate Advisers Size: 180,000 sq ft
How we helped Our client is developing the largest speculative office development in the Manchester city centre at Landmark, St Peter’s Square. Upon completion in Summer 2019, this BCO Grade A office building will provide 180,000 sq ft of BREEAM Excellent next generation office space. Colliers International advised the site vendor and has been appointed as a joint letting agent.
Crowne Plaza, Newcastle Client name: Clouston Group Size: 250 rooms
How we helped Colliers International advised on the development Crowne Plaza | Newcastle of a new 4-star hotel in Newcastle, with 251 rooms, including pre-opening asset management and support, and post-opening ongoing asset management.
Eccy Village, Sheffield Client name: Abode Hallam Size: 237 homes
How we helped The Built-to-Rent team advised Abode Hallam on the forward funding and sale of a BTR property development. Grainger has exchanged contracts on the deal at a price of circa £32 million, given the city is one of its key targets for BTR investment. The scheme is due to complete in 2019.
The Landmark | Manchester Eccy Village | Sheffield
36 | Our Regions Colliers International | 37 OFFICE LOCATIONS
Glasgow 2 West Regent Street, G2 1RW Tel: +44 141 226 1000
Edinburgh 1 Exchange Crescent, Conference Square, EH3 8AN Tel: +44 131 240 7500
Belfast 25 Talbot Street, BT1 2LD Tel: +44 28 9024 1500
Liverpool Walker House, Exchange Flags, L2 3YL Tel: +44 151 433 0350
Manchester Chancery Place, Brown Street, M2 2JT Tel: +44 161 831 3300
Leeds 1 Broad Gate, The Headrow, LS1 8EQ Tel: +44 113 200 1800
Sheffield The Balance, 2 Pinfold Street, S1 2GU Tel: +44 114 212 3990
Birmingham Eleven Brindleyplace, 2 Brunswick Square, B1 2LP OUR REGIONS Tel: +44 121 265 7500 Cardiff IN MAPS Capital Tower, Greyfriars Road, CF10 3AG If you wish to view in depth maps of our regional city centres, print friendly versions Tel: +44 29 2105 5720 are available at www.colliers.com/ukregions Bristol Templeback, 10 Temple Back, BS1 6FL Tel: +44 117 917 2000
38 | Our Regions Colliers International | 39 HEAD OFFICE 50 George Street London W1U 7GA
All information, analysis and recommendations made for clients by Colliers International are made in good faith and represent Colliers International’s professional judgement. However, since the achievement of recommendations, forecasts and valuations depends on factors outside Colliers International’s control, no statement made by Colliers International may be deemed in any circumstances to be a representation, undertaking or warranty, and Colliers International cannot accept any liability should such statements prove to be inaccurate or based on incorrect premises. In particular, and without limiting the generality of the foregoing, any projections, financial and otherwise, in this publication are intended only to illustrate particular points of argument and do not constitute forecasts of actual performance.
Colliers International is the licensed trading name of Colliers International Property Advisers UK LLP (a limited liability partnership registered in England and Wales with registered number OC385143) and its subsidiary companies, the full list of which can be found on www.colliers.com/ukdisclaimer. Our registered office is at 50 George Street, London W1U 7GA. www.colliers.com/uk