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Liverpool Development Update

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Liverpool Development Update LIVERPOOL DEVELOPMENT UPDATE October 2015 Welcome Welcome to the latest edition of Liverpool Development Update. If you need an indication of how far Liverpool has come from the dark days of the recession five years ago, you only have to look at the levels of investment pouring into the city today. Both 2014 and 2015 have seen significant jumps in construction activity both in the public and private sectors, with 2016 already looking to be on track to be as productive. I am particularly pleased to see developments creating premises which will allow businesses to start up and grow. Giving existing businesses the tools to help them grow and increase employment opportunities is just as important as creating space for new investments. In Liverpool, we are committed to making both happen. DPD Geopost, Novartis, and Eli Lily are all opening new facilities, while exciting new developments like “The Hangar” and “Invest:Speke” have attracted new tenants in advance of practical completion. With £784million worth of projects having completed since the start of this year, there remains £1.26 billion on site as at October 2015. The largest single project underway is the rebuild of the Royal Liverpool University Hospital, but I am happy to see that the City Centre residential market, so depressed for the last few years, has finally taken off again with several new schemes coming on stream. These will help to further establish the City Centre as a vibrant and colourful residential community. In the neighbourhoods, over £500 million worth of development activity FRONT COVER: is also underway. Not only does the number of homes completed under the Housing Delivery Plan rise to meet the target of 5,000, which I 2 promised back in 2012, but we have started new schemes for an additional 1,500 new homes. The plans are part of a new partnership 1 3 between the City Council, Redrow Homes, Liverpool Mutual Homes and Willmot Dixon. In addition, site preparation works at Edge Lane 4 Retail Park and Project Jennifer will conclude in a few months, after 1. PROPOSED: NEW CHINATOWN, which construction of the new retail developments will commence GREAT GEORGE STREET early next year bringing significant numbers of new jobs. 2. PROPOSED: FILM & TELEVISION STUDIOS AT LITTLEWOODS If you’re involved in regeneration, investment and development, then I BUILDING, EDGE LANE hope this information is useful to you. Liverpool’s best days are still 3. ON SITE: DPD GEOPOST, ahead and on behalf of my city, you are always welcome to come STONEBRIDGE BUSINESS PARK and talk to me and my team. 4. COMPLETED: ALDER HEY CHILDRENS HOSPITAL Joe Anderson, OBE Mayor of Liverpool Contents Development Overview – Citywide 1 Development Overview: City Centre 2 City Centre: Offices 3 City Centre: Retail 4 City Centre: Leisure & Culture 5 City Centre: Hotels 6 City Centre: Knowledge Quarter 7 City Centre: Residential 8 City Centre Development Schedule 9 Development Overview: Outside the City Centre 21 Neighbourhoods: Industry & Warehousing 23 Neighbourhoods: Retail & Leisure 24 Neighbourhoods: Schools 25 Neighbourhoods: Health 26 Neighbourhoods: Residential 27 North Liverpool Mayoral Development Zone 29 Stonebridge Cross Mayoral Development Zone 33 Central Liverpool Mayoral Development Zone 35 South Liverpool Mayoral Development Zone 37 Development Overview: City-wide CITY-WIDE DEVELOPMENT ACTIVITY OVERVIEW: KEY FACTS AT A GLANCE: • Value of major schemes completed in the whole City of Liverpool since January 2010: £3.83 billion • Value of major schemes completed in Liverpool since January 2015: £784 million • Number of potential new/safeguarded FTE equivalent jobs created by city-wide THE £26MILLION, FOUR STAR “PULLMAN HOTEL” SITTING ON TOP OF THE developments completed since January RECENTLY COMPLETED £40MILLION EXHIBITION CENTRE LIVERPOOL WILL 2015: 2,288 OPEN IN JANUARY 2016. IT WILL HAVE 216 BEDROOMS. • Value of major schemes currently on site CITY-WIDE DEVELOPMENT ACTIVITY TO city-wide: £1.26 billion. MATCH 2008’S RECORD COMPLETIONS • Number of potential new/safeguarded FTE jobs that will be created by new Construction activity across Liverpool has continued to grow year on year since 2010. The value of developments that are currently on site: schemes completing by the end of 2015 will reach 4,480 £1.1 billion, eclipsing 2014’s total of £854 million and Breakdown of development values by almost matching that achieved pre-recession when activity currently on site, Liverpool city-wide the city had attracted a flurry of investment activity in as at October 2015 (£m) the run up to its successful and memorable year as European Capital of Culture. At present the city has some £1.26 billion worth of development activity on 38 46 site, with some £508 million of this taking place outside 237 78 of the City Centre. The health sector continues to dominate the city’s construction projects, with the new £237 million Alder Hey Childrens Hospital having opened this month, and the Royal Liverpool University Hospital being half way through its £335 million rebuild. 317 With the recession now well behind us, 2015 has seen 295 significant improvement in the housing sector. Several small investors and developers are stepping forward with modest schemes of between 6 and 20 properties both in the City Centre and the Neighbourhoods, to offer a range of alternatives to some of the larger volume house-building 24 100 schemes. At the same time, prestige developers continue to INDUSTRIAL 70 51 report brisk selling of higher-end and aspirational housing OFFICES where demand continues to rise. RETAIL/DISTRICT CENTRES The amount of industrial/warehousing development HEALTH CENTRES & HOSPITALS completed and underway also is promising, with yet more EDUCATION (SCHOOLS, COLLEGES, UNIVERSITIES) schemes coming forward at both Stonebridge Business Park and Liverpool International Business Park promising yet more HOTELS jobs for the city. OTHER MAJOR LEISURE ATTRACTIONS PUBLIC SECTOR INC INFRASTRUCTURE Key up and coming sectors to keep an eye on will be Knowledge Quarter where LJMU are set to expand and HOUSING (NON-STUDENT) consolidate their City Centre campus, and the Islington area STUDENT ACCOMMODATION where more comprehensive regeneration proposals look set to commence in 2016. 1 Development Overview: City Centre CITY CENTRE DEVELOPMENT ACTIVITY OVERVIEW: KEY FACTS AT A GLANCE: Value of major schemes completed in the City Centre since 2010: £1.76 billion Value of major schemes completed in the City Centre since January 2015: £425 million Number of potential new FTE jobs A RECENT COUNCIL COMMISSIONED STUDY INTO STUDENT ACCOMMODATION created or safeguarded by CONCLUDED THAT THE PERCEIVED OVER SATURATION OF THE MARKET WILL developments completed since RIGHT ITSELF WITHOUT INTERVENTION. “X1 THE EDGE” AT SEYMOUR STREET OPENED IN OCTOBER 2015 AT A COST OF £12.9 MILLION, PROVIDING 231 January 2015 (when let and filled to BEDROOMS. capacity): 1,277 Value of major schemes currently on CITY CENTRE DEVELOPMENT ACTIVITY site across the City Centre: £759 million SOARS TO NEW LEVELS of which £225 million is expected to complete by the end of 2015. As at October 2015, the level of development activity completed in the City Centre has already exceeded the £333million achieved in 2014, with a current estimate to reach over £600million by the end of the year. Amongst the completions are the much welcomed £40million Exhibition Centre Liverpool which is now being predicted to have a major impact on the city’s hotel industry in the coming years. Four new hotels have been completed, with the Pullman Hotel at Kings Dock currently nearing completion, as well as a significant part of the new Shankly Hotel on Victoria Street. Several new student accommodation schemes have completed or will complete by the end of the year; but, more significantly, activity has increased in the non-student residential sector with several new schemes having commenced and new ones coming (749) 346 forward for planning approval. (650) 225 600 550 500 503 400 425 403 (341) 333 300 210 310 312 287 270 £ millions 235 200 232 223 233 200 156 131 100 115 100 0 2005 2006 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 Major Development Schemes in Liverp ool City Centre since 2005 COMPLETED SCHEME VALUES LIVERPOOL ONE COMPLETED SCHEME VALUES EXPECTED COMPLETION YEAR AND VALUES OF SCHEMES CURRENTLY ON SITE EXPECTED COMPLETION YEAR AND VALUES OF UNSTARTED SCHEMES AS SUGGESTED BY DEVELOPERS 2 City Centre: Offices 2015 has seen yet more refurbishments to existing buildings provide nearly 120,000 square feet of new quality floorspace, much of it Grade A. This has included over 65,000 sq ft at Bruntwood’s “The Plaza”, whilst Capital and Centric recently completed 40,000 square feet at “Tempest” on Tithebarn Street. Amongst “Tempest’s” first tenants will be London start-up incubator “Launch 22” who promote and enable entrepreneurship by providing workspace, on- demand mentoring and access to finance, one of the new breed of companies helping fledgling new businesses to set up and grow. BRUNTWOOD’S “THE PLAZA” HAS SEEN TWO FLOORS REFURBISHED AS Completing this December, almost half of PART OF A £20 MILLION INVESTMENT PROGRAMME ACROSS THE ITS Merepark’s 75,000 square feet “The Department” PORTFOLIO OF PROPERTIES IN LIVERPOOL’S COMMERCIAL OFFICE DISTRICT. inside the former Lewis’s Building has been taken by NHS Liverpool Clinical Commissioning Group. The 33,433 sq ft letting is the first office pre-let in excess of 30,000 sq ft in the City Centre for five years. Since January 2015: Value of office refurbishments £10.4m completed Square feet of office floorspace 137,649 refurbished Net potential safeguarded or new 1,000 jobs created when the above space is filled CAPITAL & CENTRIC’S “TEMPEST” ON TITHEBARN STREET HAS SEEN THE £6 Currently on site (as at October 2015): MILLION TRANSFORMATION OF A RUN-DOWN 1970’S OFFICE BLOCK.
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