Cheshire West & Chester Annual Property Report 2012

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Contents

Foreword 06 Executive Summary 08 The Cheshire West Economy 10 Investment 12 Offices 14 Leisure and Culture 18 Industrial and Distribution 22 Retail 28 Residential 32 Strategic Developments 36 Acknowledgements 40 04 Cheshire West & Chester Annual Property Report 2012

Matt Crompton Managing Director, Muse Developments

Company Profile

Muse Developments is one of the country's Muse is the development partner within English leading names in property development and urban Cities Fund (a strategic partnership with the Homes regeneration. & Communities Agency and Legal & General) and a partner in Isis Waterside Regeneration, a development vehicle The company has a broad portfolio of projects ­ embracing created in partnership with British Waterways and Aviva to commercial, retail, leisure, residential and industrial uses – unlock the potential of the nation’s waterways and with a total area in excess of 25 million square feet and an waterfront locations. end value of over £4 billion. Our aim is to deliver complex mixed­use schemes – with an emphasis on quality and 2011 was an excellent year for Muse, with another solid sustainability ­ and create vibrant new places within our and profitable all round performance across the UK. In the towns and cities. North West, Muse expanded its growing portfolio of schemes which include: Cheadle Royal Business Park; Established around a quarter of a century ago, Muse St Paul’s Square Liverpool; Blackpool Talbot Gateway; is a national developer with regional operations in Smithfield Markets Manchester and Salford Central, and Manchester, Leeds, London and Glasgow. secured major large scale mixed­use schemes in Chester and Stockport. Part of Morgan Sindall Group plc, the FTSE 250 UK construction and regeneration group, the company Cheshire Schemes has a strong development pipeline which now stands at £1.6 billion, with a further £0.6 billion of schemes at We are particularly active in the Cheshire region and preferred bidder stage. Muse offers a fully integrated consider the area to be strategically important not only to commercial and residential development capability to Muse but also to the regional and national economy. The secure competitive differentiation and maximise following is a summary of our key schemes in the region. development potential. The company’s resources and Chester Central expertise cover the complete development cycle from site Our plans for a new Business Quarter on 3.5 acres of the evaluation, planning and masterplanning to land assembly, Lloyds Banking Group campus in Chester are on track project management, letting and funding. with design work progressing towards the submission of a planning application to Cheshire West & Chester Council Working in partnership with land owners, local authorities, this autumn. community groups, government agencies and private investors across the UK, Muse’s commercial vision generates A vital part of Chester’s One City plan, the proposed a competitive edge in all areas of activity. The company’s Business Quarter, with its proximity to Chester Station, resources, leadership and vision have combined to help benefitting from a direct, two hour connection to London, release latent potential in many now landmark sites, often will drive Chester’s commercial offer and economic in urban fringe areas where profitable development has not growth, including the city’s retail and evening economies. been immediately obvious. 05

The scheme will offer 500,000 sq ft of The park benefits from outline planning One of the largest regeneration projects prime office space and the potential to consent for a further 400,000 sq ft in the region, our £130 million ‘Bridge create over 1,000 jobs in a location that of office space and 150,000 sq ft of Street Quarter ’ scheme is the first – with its strong transport links, distribution space. As part of a phase of the Council ’s 25 ­year strategic amenities and close proximity to the comprehensive masterplan, Lingley masterplan for the town centre and historic city centre – will prove Mere will be developed further by waterfront area. It will deliver a new attractive to businesses looking for enhancing the excellent range of indoor market, along with a range of modern, sustainable premises. amenities that already exist there. leisure­ based uses aimed at creating Development will be complemented by Future plans include a 132 bedroom a family oriented environment. It will the provision of new public realm hotel that will have conference space, also create much needed commercial works, linking the scheme with Chester meeting room facilities and a fitness space ­ with a diverse range of Station and the Shropshire Union canal. centre. complementary uses and building sizes ­ including a new hotel, cinema, food The existing Premier House building on Planning permission was recently store and a leading edge office designed site will ultimately be demolished to secured for an amenity building. The and built specifically for the Council ’s make way for future phases of the new facility, covering 7,500 sq ft, will occupation. development. The initial phase of be situated in the centre of the development, comprising a 70,000 sq ft, development between the park ’s two The integration of the surrounding BREEAM Excellent, Grade A office lakes. The stunning building will area is critical and a comprehensive building, will commence on parking incorporate full ­length curved glazing to programme of public realm works land adjacent to the building. maximise the south ­facing view of the will be central to our masterplan. We surroundings and will also feature an We are working closely with Cheshire will create an iconic new market square elevated canopy where people can sit West and neighbouring stakeholders, and deliver pedestrian and public outside. including Network Rail and Lloyds, to transport improvements along with easy to follow and natural links with ensure that the new development The amenity building will offer hot and adjacent streets, including Bridge Street, complements the area. This will be cold food, a Costa coffee and Buttermarket Street, Mersey Street, further assisted by plans for the convenience shop. development of adjacent sites. Planning the waterfront and other parts of applications have recently been The development, which lies close to Warrington town centre. the M62 and M6, has also obtained submitted for a new Waitrose store planning permission to build a fifth unit This will result in an increased diversity along with the redevelopment of the of 18,500 sq ft to complete the of uses that will act as a destination historic Shot Tower and leadworks site. Clearwater phase, which already boasts for people of all ages and interests

Lingley Mere four units that have been let and sold. throughout the day and into the evening. Lingley Mere is an expanding and Bridge Street Quarter, Warrington thriving business community that We are committed to designing, currently provides 380,000 sq ft of Muse has been appointed as procuring and delivering stunning, office accommodation set within 100 development partner to help distinctive and sustainable buildings. acres of landscaped grounds, offering Warrington Borough Council realise its Construction is expected to begin in a unique and attractive location for ambitious plans for the regeneration of 2013. The whole scheme aims to be businesses. Bridge Street and Time Square. completed by 2019. 06 Cheshire West & Chester Annual Property Report 2012

Foreword

Cheshire West and Chester offers a great place to live with enviable residential locations, beautiful countryside and waterways and great connectivity.

Despite challenging economic times The rural regeneration strategy and action plan will be led by the new Rural Regeneration Board which the borough of Cheshire West and will be appointed during 2012 and will look at how Chester continues to buck the trend we increase investment in businesses.

with positive business investment. The area regeneration teams have produced The jobs and investment secured at Vauxhall investment strategies and action plans and three Motors in Ellesmere Port (announced in May 2012) private sector­led boards in Chester, Ellesmere Port was wonderful news and a testament to the and the Weaver Valley are working in partnership to exceptional productivity of the workforce. Nearby, deliver impressive results across the borough. Regatta’s floor space deal at Pioneer Point was one Cheshire West and Chester offers a great place to live of the largest secured in the UK in 2011 and the with enviable residential locations, beautiful investment by Jaguar Land Rover adds another countryside and waterways and great connectivity. prestigious name to the list of World Class Despite the tough conditions in the UK economy, we companies located in Ellesmere Port. continue to have confidence in the depth and Chester City centre doubled the retail floor space strength of our current and future investment take up in 2011 compared with the year before, opportunities which are illustrated by the 2011 and retail performance remains relatively strong in results outlined in this property report. very challenging times. The recent launch of the One City Plan has now defined the ambitions of Chester as a vibrant historic city with a dynamic future.

In the Weaver Valley, the Council has taken back control of the strategic Baron’s Quay site in Northwich and a detailed planning application for Mike Jones a major mixed use development is underway. Leader of Cheshire West and Chester Council Waitrose has planning permission for a new store and marina and in addition a new £15 million entertainment and leisure venue called Memorial Court is due to open in 2015. 07 08 Cheshire West & Chester Annual Property Report 2012

Executive Summary

2011 proved to be a false dawn of recovery major foodstore commitments, although the deals did feature small store format lettings to both Waitrose and for the UK’s economy. Despite this, as befits Tesco in Chester city centre. an area within one of the country’s sub­ regional economic powerhouses, Cheshire Retail properties contributed significantly to the investment market performance. One multi­let scheme in West and Chester’s property market turned Chester city centre generated a £56 million investment in a robust performance. Stability was the sale, reflecting an initial yield of 4.5 percent. key, with a close correlation with the The UK office market was generally perceived to be in activity levels of 2010. decline in 2011. Despite little or no activity in terms of new supply completions, the level of available stock Investment and office deals were both numerically up rose as demand, rents and capital values dropped. For by 50 percent. Leisure and retail deals remained at the Cheshire West and Chester the headline office same level. There was a small reduction in industrial floorspace take­up figure showed a year­on­year fall of property transactions. A total of just over one million some 30 percent – but the underlying trend was of sqft (93,370 sqm) of office, industrial and retail growth in the sector. It was just that Cheshire West and floorspace was either let or sold to occupiers. Chester Council having taken 10,000 sqm in 2010, not Investment transactions involved a further 177,600 sqft unsurprisingly did not do it again in 2011. When that (16,502 sqm) within these sectors. deal is taken out of the equation, there were more deals and more larger space lettings than in 2010. For the retail sector, nationally an already bad position got worse. There was little strength in retail spending; The market did swing away from freehold sales. the growth in online retail activity impacted on high Although freeholds still represented a quarter of the street shopping; over 30 major retailers went into deals, this was half the share reported the previous year. administration and almost 2,500 stores closed. Chester continues to be the borough’s prime office But led by Chester city centre and to a lesser degree by location, dominating the market transactions. But, in Cheshire Oaks at Ellesmere Port, the borough’s retail contrast to 2010, the emphasis of the transactions was sector delivered more than double the floorspace take­ in the city centre, rather than the out­of­town business up achieved in 2010. And this was not the result of parks.

As a result of recent take­up and an absence of new speculative development, there is a dearth of available modern property for distribution and logistics facilities. This is as much the case for the borough as it is for the rest of the country. Clothing firm Regatta’s lease of 393,000 sqft (36,510 sqm) in Ellesmere Port involved one of the last large warehouses in the borough remaining from the pre­recession heydays of speculative development. Such was the scale of this transaction that it featured in the top twelve largest floorspace deals in the country in 2011.

As was the case in 2010 Ellesmere Port dominated the industrial property sector. It secured 45 percent of all the year’s deals. This equated to almost 75 percent of the floorspace take­up. Winsford again was the other main centre of activity, being involved in 24 percent of the 09

“A number of Cheshire West and Chester based businesses enjoyed regional and national recognition of their achievements during the year.”

deals and 16 percent of the floorspace take­up. There was completed or announced at Cheshire Oaks and The evidence of greater confidence amongst those companies Port Arcades. These included Travelodge’s first expanding or relocating, in that there was a much BREEAM ‘Excellent’ hotel in the UK ; a further fourteen increased incidence of commitment to longer term leases. international brands moving in to Cheshire Oaks and plans by Debenhams to open a new store there. Cheshire West and Chester’s three established Place Teams – Chester Renaissance, Ellesmere Port The Weaver Valley Partnership area of Mid Cheshire Development Board and the Weaver Valley Partnership – includes Northwich, Winsford and Middlewich. In saw planning and tangible results associated with their Northwich the Council took back control of the strategies and action plans. For Chester Renaissance this strategic Barons Quay site, terminating its agreement included completion of the consultation on the ‘One City’ with Wilson Bowden. A Council appointed design Plan; the Council’s purchase of the former Odeon as the team is to produce a detailed planning application for location for a new £43 million theatre: the Council a major mixed­use development. Northwich will also seeking to end the Northgate redevelopment inertia by see the Council funding a £12.5 million Entertainment ending ING Real Estate’s development agreement and and Leisure Centre in the town centre. Also, in producing its own new development concept. Plans by Winsford, the Partnership along with the Town and Muse Developments for the central business district and Borough Councils is preparing a Neighbourhood Plan, by Waitrose for the redevelopment of Boughton Retail as a national pilot. centre, progressed. Chester Zoo opened new facilities as part of their ongoing development plan. A number of Cheshire West and Chester based businesses enjoyed regional and national recognition For Ellesmere Port, endeavour throughout the year bore of their achievements during the year. These included fruit with new product and jobs investments secured at EA Technology; The Hut Group; Clicky Media and Vauxhall Motors. New retail and leisure facilities were International Travel Connections. 10 Cheshire West & Chester Annual Property Report 2012

The Cheshire West Economy

Cheshire West and Chester forms part of Park, is now the UK’s leading multi­website online retailer. 2011 saw a reported 78 million visits to its a sub region whose GVA equates to half websites. Over one third of total revenues came from that of Wales and three quarters of that overseas sales. The company also purchased of Northern Ireland. Its businesses MYProtein.com, the sports nutrition brand. Formed only seven years ago, The Hut now employs more than continue to deliver despite the gloomy 550 people. economic background. Further positive job news for the borough’s resident Nationally the first half of 2011 showed signs of workforce was the opening in October of the new £400 economic recovery, off the back of growth in GDP million Airbus North Factory at Broughton. This will during 2010 and increasing consumer spending, produce wings for the new A350 aircraft. Although notwithstanding that this was from a low base. located in Flintshire, the proximity to Cheshire West and However the second half of the year was poor with the Chester provides opportunities to be part of the 650 economy hit by several factors. Key amongst these was workforce at this facility, or within the further 5,000 the fear of a Eurozone crash and that recovery from the jobs that will be supported across the wider supply recession had actually had little real strength. chain.

At the North West level, research amongst businesses The strength of Cheshire West and Chester’s business at the end of the year pointed to a gloomy prognosis base is illustrated by the fact seventeen of the North for the economy. Those expecting an up turn dropped West’s Top 200 companies (Liverpool Daily by two thirds from the equivalent survey twelve Post/Manchester Evening News Survey 2011) are months earlier. However two in three companies located within the area. There is also some strength in indicated they would be taking a proactive approach to depth, with around 6 percent of the Insider Top 500 address the situation. So, whilst access to finance companies headquartered in the borough. Eight continues to be an issue, one fifth of private companies companies feature in the Insider North West Growth in the region expect to be considering an acquisition in 100 companies with The Hut achieving the coveted the next twelve months. number one slot. The others comprise a mix of manufacturing and professional services companies, Within Cheshire West and Chester a number of the including Cogent Breeding, the UK’s largest bull stud borough’s businesses demonstrated why the area is an farm operation. And International Travel Connections, economic big hitter, and continues to be, even though a luxury tour operator based in Chester, was amongst the national economy struggles to move forward. They the five Cheshire and Warrington sub region companies are already driving growth forward through expansion to feature in the Sunday Times UK’s 100 best small in international markets and company acquisitions. companies to work for.

Capenhurst headquartered EA Technology won the top Nevertheless Cheshire West and Chester was not totally prize at the inaugural Insider North West International immune to economic concerns during 2011. In the Trade Awards. In a region exporting goods and services latter part of the year there was much concern about to the value of £26 billion, this was no mean feat. In one of the borough’s largest employers, Vauxhall 2011 the company opened an office in Texas, generated Motors, as parent company General Motors embarked 40 percent of its sales from overseas and forecast this on a cost cutting plan that brought into question share will more than double over the next five years. continuing production at its Ellesmere Port plant. The company also won a Queen’s Award for Innovation Although a top four site for productivity, concerns were for the second time in four years. that closure might occur as part of a rationalisation of A combination of growth in international business and the company’s European manufacturing sites. acquisitions underpinned a 70 percent uplift in sales for However, rather than the potential loss of 2,000 direct another home grown success. The online retailer The jobs and many more in local supply chains, Vauxhall Hut Group, which has its headquarters at Gadbrook Motors confirmed as this Property Report was about to 11

“A combination of growth in international business and acquisitions underpinned a 70 percent uplift in sales for another home grown success.”

be published, that not only would the factory remain and medium sized businesses. It will incorporate open but there would be new investment. The new office space, conferencing, workshop facilities and Astra model will be built there, 2,000 jobs will be networking. It will also provide direct access to safeguarded and a further 700 created as the company laboratories to explore new technologies and moves to a three shift operation. advancements in nanotechnology and microbiology technology. For another internationally renowned borough business 2011 saw disappointment, with the announced closure In terms of the property market, the national picture by Shell of its main UK research and development for 2011 was one of declining occupier demand, facility at Thornton. The Shell Technology Centre particularly so for the office and retail sectors. As employs around 300 scientists researching high­ such there was much negative sentiment about office performance fuels for Formula One engines as well as and retail rent levels, as available space continued to developing new bio fuels. Closure is expected to take rise. There was better news for the industrial place in 2014. It follows on from the sale, in 2010, of property market. For the first time since 2005 the its nearby Stanlow refinery to Indian company Essar. amount of vacant space showed a modest decrease. Demand levels remained broadly unchanged, and this Innovation, skills development and leading edge helped to see industrial rents stabilising following research facilities are recognised as vital components of several consecutive decreases. growing a strong business community. The University of Chester continues to deliver on this. 2011 saw Capital values continued to fall, marking nearly two planning approval granted for a £4.7 million food years of decline, with again the office and retail research centre to be built in the University’s Parkgate sectors taking the biggest hits. Road Campus. The food industry is estimated to be worth £8 billion a year to the North West’s economy. It For Cheshire West and Chester the picture was is also an important sector of Cheshire West and broadly the same. Challenging conditions for office Chester’s local economy. The University’s planned landlords saw some vacant Grade A space in Chester investment will help strengthen this sector. marked down from by as much as 45 percent. As a result of recent take­up there is a dearth of available To be known as NoWFood, the North West Future Food modern property for distribution and logistics Solutions Exchange will be housed in a 16,000 sqft facilities, as stock built during the pre­recession (1486 sqm) building. NoWFood will provide heydays of speculative development has been technological, scientific and business support to small snapped up. 12 Cheshire West & Chester Annual Property Report 2012

Investment

Nationally, optimism and expectation about the investment market at the outset of 2011 waned as the realism of another hard year of economic conditions, and fears of falling into another recession grew. Despite this for Cheshire West and Chester the investment market reported an increase in sales value, albeit from a reduced volume of space, during the year.

The increased sales value, totalling £73 million, came from eight of the nine investment transactions recorded. This was almost 50 percent above the previous year’s figure. For one transaction the sale price was not disclosed. The investments involved 177,600 sqft (16,502 sqm) of retail, office, industrial and leisure floorspace.

Retail investments, and especially ones in Chester, dominated. The largest transaction, in terms of both floorspace size and price generated, was the sale of Chester city centre retail space at Foregate Street. Here Prupim paid £56 million for a 40,000 sqft (3716 sqm) multi­occupied investment. Nearby, in Eastgate Street, Royal London Mutual Insurance Society in contrast acquired premises representing a single let, to Next. The initial yield of 4.67 percent was As auctions became increasingly used for investment marginally higher than the 4.5 percent reflected in sales, two other tenanted retail properties were Prupim’s purchase. Another retail investment deal disposed of through this route. Two of Chester’s out­ involved the Tesco Express store in Northwich. The of­centre retail units realised an initial yield just into investment, which includes two upper floor flats, double digits. In Ellesmere Port, an investment of achieved a sub­6 percent yield. three properties (two let to Dorothy Perkins and Superdrug) realised an initial 14 percent yield. The These yields are comparable with levels reported for yield reflected that by far the largest share of the 2010, indicating that despite the woes of the retail property was un­let. sector, the prime opportunities are still attractive to the investment market. Two leisure sector property investment deals saw two Chester city centre premises, let as eating establishments, sold. One involved property in Northgate Street, where CBRE had secured a 15 year lease with Pret A Manger in 2010. In 2011 CBRE sold the resulting investment to Marchmont Investment Management, who manage funds on behalf of high net worth individuals.

There was little activity involving industrial or office property investments. The one office investment sale involved CDP’s Admiral Court scheme at Cheshire Business Park, Northwich. In line with the company’s policy of selling once lettings are secured, CDP disposed of two units let to Comms Care in 2010. 13

Investment deals

Size Income Initial Address Vendor Purchaser Price (£m) Tenants Agents (m2) (£/pa) yield (%)

Industrial CBRE/ Sealand Road, MCR Property Halo/Private 4,698 1.050 Undisclosed 199,500 19.00 Christopher Chester Group Investor Dee

Offices Admiral Court, Stapleford Comms Care Jones Lang Cheshire Business CDP Associates 657 0.850 102,558 11.3 Group LaSalle Park, Northwich LLP

Retail Multiple Prudential including 36­69 Foregate Property Welbeck Land 3,716 56.000 Argos Extra, 2,525,000 4.50 CBRE Street, Chester Investment Schuh and The Managers Union Tavern The Royal Scottish London 37 Eastgate Widows Jackson Mutual 2,388 12.300 Next 574,410 4.67 Street, Chester Investment Criss/Savills Insurance Partnership Society Dorothy 7­7b, Rivington Perkins/ Private Road, Ellesmere LPA Receiver 3,052 0.580 Superdrug/ 80,850 14.0 Acuitus Purchaser Port Vacant (2358 sqm) Courtesy Units 1­2, River Grosvenor New Embrace 936 0.750 Shoes/ 78,000 10.4 Acuitus Lane, Chester Estates Barnardos Tesco/ Tesco Express, Franck­Steier Private Two upper 41­43 Chester H22 372 0.810 50,000 5.8 Price/Franc Purchaser floor flats (on Road, Northwich Warwick long leases)

Leisure Marchmont SG 21­23 Northgate CBRE Investment 466 Undisclosed Pret A Manger 139,986 Undisclosed Commercial/ Street, Chester Investors Management Knight Frank What's 14 Cuppin Street, Moradi and Kenny Cooking 217 0.335 Francs Bistro Undisclosed Undisclosed Chester Associates Moore Chester

“The increased sales value, totalling £73 million, came from eight of the nine investment transactions recorded.” 14 Cheshire West & Chester Annual Property Report 2012

Offices

More deals, less space, were the accounts for some 70 percent of the total UK stock. A combination of economics and economic conditions outcomes of the office market in has halted the pipeline of new speculative Cheshire West and Chester. The number development. As such, the out of centre Chester of deals was up by half compared to Business Park represents the majority of the available Grade A space, at rents of between £10 and £15 per 2010, but with no substantial public sqft (£107 to £161 per sqm). This is somewhat below sector letting this time the total take­up the previous headline figure of £18.50 per sqft. dropped by around 30 percent. Take­up At the end of 2011 Cheshire West and Chester Council amounted to 124,300 sqft (11,555 sqm). completed the vacation of Backford Hall. Originally purchased and occupied by Cheshire County Council Chester continues to deliver as the borough’s main the 24 acre (10 ha) estate comprises 100,000 sqft offices location. There was however a switch in (9,290 sqm) of offices based around a 17,000 sqft emphasis in the year. Two thirds of the Chester (1,577 sqm) Grade II­listed Jacobean mansion. The transactions involved city centre, rather than out of property is being sold as part of the rationalisation of town properties. Organisations taking space in the city the Council’s property portfolio. centre included Muir Housing Group; Chester and District Housing Trust and digital marketing company, Chester Business Park is home to Bank of America’s Clicky Media. The latter is currently ranked the third MBNA credit card brand. Whilst the company has best Social Media Agency in the UK by TOPSEOs, the announced plans to cut jobs and sell its European Card independent authority on search vendors. Indeed it is Services division, it has also confirmed a separate, the only top ten agency to be located in the north of unrelated new back­office technical support centre in England. Chester. The new facility will form part of the bank’s Global Technology and Operations organisation, with Another city centre deal involved serviced­office the potential for up to 1,000 new jobs, and eases fears provider Citibase taking 7,500 sqft (696 sqm) on the top about a potential glut of additional office space being floor of the Exchange, in St John’s Street. Citibase is put onto the market. now the third largest serviced­offices company in the UK. The company styles itself as the Travelodge of The take­up of offices during the year is heavily biased business centres, which is ironic as Travelodge is towards deals of below 5,000 sqft (465 sqm) and another occupier of the Exchange. reflects the experience relating to enquiries received by the Council during the year. For larger properties, This letting of what is Grade A (prime) space represents although 10 percent of enquiries involved demand for a diminishing commodity not just in Chester, but space in excess of 20,000 sqft (1868 sqm) no nationally. Poor quality secondary floorspace now transactions of this size occurred.

Cheshire West Office Enquiries by Size (%) 2 Year Size (m ) 0 ­93 93­ 232 232­ 456 456­ 930 930­ 1,860 1,860­ 4,645 4,645+ 2006 48 20 16 6 3 2 5 2007 36 18 16 9 2 8 4 2008 35 4 17 11 13 13 7 2009 29 20 21 14 5 4 7 2010 49 13 12 4 4 4 4 2011 60 12 7 2 9 5 5 15

“More deals, less space, were the outcomes of the office market in Cheshire West and Chester.” 16 Cheshire West & Chester Annual Property Report 2012

Office Deals

This schedule only relates to properties in excess of 200 sqm. Lease renewals are excluded.

Size Price/Rent Address Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Chester First Floor, International The Funding House, Kingsfield Court, Undisclosed 1,301 Undisclosed Undisclosed Legat Owen Corportation Chester Business Park

Department of Muir Housing 80 Lightfoot Street 1,115 Undisclosed Undisclosed Legat Owen Health Group

The Exchange, Robert Beaumont Opus North Citibase 696 161.46 Undisclosed St. John Street Associates

Building E, Telford Court, Gladman Chester Gates Undisclosed 567 1,613.75 Freehold Legat Owen Developments Business Park Ground Floor, Lakewood, Bristol Myers Hilliards Court, Chester Tuxedo Finance 435 Undisclosed Undisclosed Jones Lang LaSalle Squibb Business Park Grosvenor 2 Vicars Lane Allington Hughes 420 107.23 5 Estates

80­82 Watergate Street Hilbre Estates Private Purchaser 393 674.30 Freehold

Unit 3, Minerva Court, Undisclosed Private Tenant 316 63.32 5 Legat Owen Sealand Road 1st Floor, 73 New Undisclosed RAS 282 42.55 Undisclosed Legat Owen Crane Street Poplar House, Park West, Pugh Davies Pescado 279 Undisclosed Undisclosed Legat Owen Sealand Road, Properties Chester and Linenhall Property Stanley Street District Housing 215 Undisclosed Undisclosed Investments Trust

Douglas House, 117 Lloyds Banking Oliver and Co 208 4,687.50 Freehold CBRE Foregate Street Group Solicitors

Linia Cosmetic 7 Stanley Place Undisclosed 204 122.32 Undisclosed Surgery

Units 3­6 St Johns Court, Grosvenor Clicky Media 203 85.35 5 Vicars Lane Estates 17

Size Price/Rent Address Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Ellesmere Port Units 19, 21 and 22, Legat Owen/Spencer Venture Point, Stanney Spencer Holdings Undisclosed 689 36.99 5 Asset Management Mill Road Little Stanney

Hollins Murray Cheshire and Cheshire Oaks Trade Park 297 Undisclosed 5 Partridges/Legat Owen Group Wirral NHS Trust

Units 14­16, Rossmore Northern Way Alexander Business Village, Properties 278 129.17 Undisclosed Legat Owen Beard Group Inward Way (Rossmore)

Units 19, 36 and 38, Evans Business Park, Public Safety Evans Easyspace 212 Undisclosed Licence only Pioneer Business Park, Charitable Trust North Road

Unit 4, Venture Point, The New Business Legat Owen/Spencer Stanney Mill Road, Spencer Holdings 202 63.33 5 Data Company Asset Management Little Stanney

Northwich Natrium House, TATA Chemicals Undisclosed 1,366 145.28 25 Fifield Glyn Winnington Avenue Europe Morgan House, Debt Collection Undisclosed 465 537.63 Freehold Fifield Glyn Winnington Avenue Services Building C, Rudheath Solid Rock CMC 464 145.31 10 Fifield Glyn Way, Gadbrook Park 2b Admiral Court, KBC Advanced Cushman and Marshall CDP 380 156.08 10 Cheshire Business Park Technologies Wakefield/Fifield Glyn 14 Brunel Court, Kenmore NPORS 200 107.53 3 Fifield Glyn Gadbrook Park

Pulford Kinnerton House, Park Lane, Bell Meadow PPLS Kuehne and Nagel 368 102.26 10 Business Park 18 Cheshire West & Chester Annual Property Report 2012

Leisure and Culture

The leisure sector represents a £1.1 billion industry for Cheshire West and Chester. The equivalent of over 17,000 full time jobs are provided.

This is by some way the largest share of the Cheshire and Another commercial leisure facility was announced as Warrington sub­regional total. That this is so should not Scottish company Goals Soccer Centres commenced a be a surprise, as the borough includes visitor destination £2.5 million investment at Chester Commerce Park. hotspots such as Chester’s historic city centre, receiving Appropriately located next to Chester Football Club in excess of 8 million visitors per year, with 2.4 million (who continued their resurgence with another visitors to the walls and towers alone and a visitor promotion up the footballing league pyramid), the economy worth over £500 million annually. The development will provide ten floodlit, all weather 5G borough is also home to Chester Zoo, Cheshire Oaks and artificial turf football pitches. Blue Planet. Indeed, Chester Zoo attracted in excess of 1.28 million visitors in 2011, helping to retain its status Determination to be a market leader led to the creation within the Top 10 paid entrance attractions in England. of the Chester App. It was launched with spectacular results. Within forty eight hours of its release in October The strength of the visitor attractions and quality of it had entered the iTunes Top 20 most downloaded travel supporting accommodation was evidenced in the 2011 applications. As such it became the most downloaded Marketing Cheshire Awards for the tourism sector. UK destination application apart from London. Chester Zoo won Large Visitor Attraction and Best Developed by Marketing Cheshire and New Mind e­ Tourism Event for the Dinosaurs at Large! exhibition. Tourism solutions, the application provides constantly Two hotels – Chester Grosvenor and The Green Bough updated, live information on where to eat, drink, stay, won awards for the Large Hotel and Small Hotel shop and what’s on in the city. respectively. 2011 saw key decisions by Cheshire West and Chester Hotel provision in Chester is substantial. There are Council regarding future leisure developments within the eleven five or four star hotels alone. Consequently it is a borough. The Council purchased the former Odeon destination market of a scale that sees its performance cinema in Chester, a listed Art Deco building, having monitored along with the likes of Liverpool and decided it should become the home for a new theatre. Manchester. Reflecting the tough trading conditions, This will reintroduce a producing theatre to Chester, a and in line with much of the North West’s hotel sector, facility lacking since the closure of the Gateway in 2007. Chester saw a fall in both room rates (2.2 percent) and The new theatre is estimated to cost £43 million, with room yields (1.4 percent). On the positive side there was around half this sum being funded by the Council. just under a one percent increase in occupancy rates. The Council also committed to plans to seek a leisure Further investment in hotel provision within the borough developer or operator to deliver a £60 million building was secured with Travelodge’s decision to locate a 77 programme over the next five years. This will see bedroom hotel at Cheshire Oaks. The scheme forms the Cheshire West and Chester setting aside £31 million final piece in the overall development of the Cheshire from its capital budget for new leisure facilities, mainly Oaks Coliseum Leisure Park. Travelodge’s trading in Chester and Ellesmere Port. Stanney Oaks will be the experience at other major shopping centres throughout location for new £11 million leisure and sports facilities the UK identified the location as a destination to pursue. to replace Ellesmere Port’s outdated EPIC Centre. The Work started on site in September, with Travelodge new facility will provide wet and dry sports facilities, a having taken a pre­let on a 25 year lease from Legal and regional indoor sports arena and an events venue. General Property, who aim to make the hotel the first BREEAM ‘Excellent’ Travelodge in the UK. The hotel is Another element of the programme includes a new £15 forecast to boost the local economy by around £1.2 million sports and leisure centre in Chester that will million a year. incorporate a regional diving centre. 19

“Hotel provision in Chester is substantial. There are eleven five or four star hotels alone.” 20 Cheshire West & Chester Annual Property Report 2012

Leisure deals

Purchaser/ Size Price/Rent Address Vendor/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Allostock Drovers Arms, Enterprise Inns Equiport 232 1,400.86 Freehold Colliers 1 London Road Plc

Chester Former Rowton Poplars Good Undisclosed Undisclosed 360,000 Freehold Pugh and Co. Hotel, Rowton Neighbours

Private The Beehive, Hoole Road Undisclosed Undisclosed Undisclosed Freehold Pugh and Co./Fleurets Purchaser

The Grosvenor Centre CEREP (Restaurant), Grosvenor Earls Court 309 324.00 Undisclosed Christie and Co Newgate Street S.A.R.L

31­31A Bridge Street CEREP Patisserie (Café), The Grosvenor Grosvenor 266 281.95 10 Tushingham Moore Valerie Centre S.A.R.L

The Railway (Pub), Punch Taverns Undisclosed 247 668.02 Freehold Colliers 119 Brook Street

Cheshire West Odeon Cinema Brook Group and Chester 230 1,130.43 Freehold Northgate Street Limited Council

Ellesmere Port Liverpool The Coliseum at Legal & General Football Club 511 264.26 15 Jones Lang LaSalle Cheshire Oaks Leisure Fund (The Boot Room)

Tarporley The Headless Woman, Mcclemonts & Punch Taverns 258 1,356.59 Freehold Colliers Tarporley Road Mcclemonts 21

“The Council also committed to plans to seek a leisure developer or operator to deliver a £60 million building programme over the next five years.” 22 Cheshire West & Chester Annual Property Report 2012

Industrial and Distribution

Nationally demand levels for industrial and organisation Network 4 to facilities at Navigation Park. Chester maintained its share of deals, with around 20 distribution space were largely unchanged percent of the transactions. However as there were no from those of 2010, despite continuing large lettings, the deals represented only some 34,100 sqft concerns with the economy. This (3,167 sqm) in total. underlying trend applied to Cheshire West The lack of supply, rather than a lack of demand, continues and Chester. 38 transactions were to be a challenge to Chester’s industrial property market. recorded, a slight reduction on 2010’s As a result deals continue to be done for industrial performance. But as supply dried up there premises on the edge of the city, but over the border in North Wales. However, small business space provider, were fewer big shed deals. Brymau Estates, was granted planning for a new build scheme at Boundary Lane. This will deliver six industrial The knock­on from this was that floorspace take­up units, totalling 6,180 sqft (574 sqm) and an office block of reduced to around 724,450 sqft (67,305 sqm) for premises 11,250 sqft (1045 sqm). in excess of 2000 sqft (c.200 sqm). A feature of the market in 2011 has been the increased Nevertheless, Regatta’s lease at Pioneer Point, Ellesmere number of deals done where transaction details remain Port represented one of the country’s twelve largest confidential. No doubt this is a consequence of the distribution space transactions during 2011. economic circumstances and the bargaining power available to purchasers and leases. Owners and landlords Regatta’s occupation of 393,200 sqft (36,553 sqm) was are therefore less willing to divulge what may be below also the largest space deal concluded in the year in the market rate deals. Cheshire and Warrington sub­region. As a result Ellesmere Port once again dominated the borough’s industrial As in 2010 there were very few freehold transactions property market. It took a 74 percent share of the total reported. Those that took place involved properties at the floorspace take­up, backed by a 45 percent share of all the lower end of the size band range – between 2500 and transactions. These included a number of businesses 3445 sqft (232 and 320 sqm). Similar sized properties at adding to their established presence in the town. Amongst Wharton Industrial Estate, Winsford sold for contrasting them were Next, Hertel UK and Flexible Coatings. values ­ £58 and £31.5 per sqft (£625/£340 per sqm). The one sale in Chester achieved £42 per sqft (£453 per sqm). Around one quarter of the borough’s transactions and one sixth of the floorspace take­up related to Winsford – and Ellesmere Port once again achieved the headline industrial in particular Winsford Industrial Estate. In late 2005 rent, with Northern Trust’s Elm Court development Winsford Industrial Estate became the first Industrial attracting just over £5.90 per sqft (£63.79 sqm). Most Business Improvement District in the UK. This status has other lettings in Ellesmere Port were between £4­4.50 per now been renewed for a further five years. The success sqft (£43.10­£48.44 per sqm). Rents in Chester showed a and popularity of the estate was reflected by the similar level £4.18­£4.50 per sqft (£45­48.44 per sqm) attraction of the new North West base for logistics though £5.50 per sqft (£59.20 per sqm) was secured for a company, Seafield. Headquartered in the East Midlands, unit at Chester West Employment Park. Seafield will use its location at Premier Park to handle Tata Chemicals’ national and international distribution, as well Average industrial rents in Winsford range from £3.75 to as distribution for Congleton–based Sibelco quarries. £4.75 per sqft (£40.35­£51.10 per sqm). Most of 2011’s Bentley Motors and beauty products importer and transactions were within this range, though one property distributor Zulu also leased space at Premier at Premier Park, Winsford Industrial Estate reflected the Park.Winsford’s growing credentials as a viable location development’s name – setting a rent above the norm, at for logistics operations were further strengthened with the £5.25 per sqft (£56.20 per sqm). commitment by national home delivery service “The lack of supply, rather than a lack of demand, continues to be a challenge to Chester’s industrial property market.”

Elsewhere in the borough there was very little activity in As the year ended the Northwich area saw a boost to its the industrial sector. Only a handful of deals occurred, industrial sector, with plans announced for a two acres with all but one being in Northwich. The limited (0.8 ha) development at New Cheshire Business Park. transactions reflect rents at best at just over £4.00 per sqft Quarrying and waste recycling equipment distributor, Blue (£43.10 per sqm). Machinery, has purchased the site for its new headquarters, workshop and maintenance facilities. This The automotive industry sector plays a significant role in will involve relocation and consolidation of facilities Cheshire West and Chester’s economy. During 2011 currently occupied elsewhere in the North West. national automotive parts supplier, Andrew Page, leased space at Waters Business Park in Ellesmere Port. Bentley Analysis of the transactions concluded during the year Motors also took space at Winsford Industrial Estate. And, shows over half involved properties of less than 5,000 sqft as noted earlier, as this report went to press, Vauxhall (465 sqm). One fifth related to lettings or sales of buildings Motors confirmed investment in new products and 700 of between 5,000 and 10,000 sqft (930 sqm) and a further new jobs at its Ellesmere Port plant, whilst Jaguar Land fifth for properties above 10,000 sqft. The percentage split Rover announced it will create 300 jobs at a new parts of take­up generally aligns with the breakdown of warehouse to be managed on its behalf by logistics enquiries received by the Council over the year, although it supplier DHL. This will support production at Jaguar’s should be noted the enquiries data includes premises Halewood site. below the 200 sqm threshold applied by this report.

Cheshire West Office Enquiries by Size (%) 2 Year Size (m ) 0­ 93 93­ 232 232­ 456 456­ 930 930­ 1,860 1,860­ 4,645 4,645+ 2006 23 10 19 15 12 11 10 2007 27 11 15 13 11 11 11 2008 21 14 20 11 9 11 14 2009 26 23 16 7 12 9 7 2010 40 15 16 5 9 5 10 2011 43 10 12 10 8 4 13 24 Cheshire West & Chester Annual Property Report 2012

Industrial Deals

This schedule only relates to properties in excess of 200 sqm. Lease renewals are excluded.

Size Price/Rent Location Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Chester Unit 21, Bumpers Lane, Sealand Industrial Stretton Estates Thrifty Car Rental 743 47.09 10 Legat Owen Estate, Sealand

Whipcord Lane Undisclosed Undisclosed 590 17.81 Undisclosed

Unit 7, Sealand Industrial Legat Owen/Lamont Estate, Knutsford Way, Stretton Estates C H Cars 465 26.88 3 Commercial Sealand

Unit 2, Sealand Industrial Stretton Estates Undisclosed 455 Undisclosed Undisclosed Legat Owen Estate, Sealand

Unit 4, Chester West Cheshire West and Cheshire West and Clare James Employment Park, 380 59.20 10 Chester Council/ Chester Council Trade Parts Jupiter Drive Redsun Developments

Milford House, Lehman and Private Individual 320 453.12 Freehold Fearnalls/Mason Owen Grange Road Lehman

Cheshire West and Chester Auto Cheshire West and Unit 6B, Hartford Way 214 47.97 15 Chester Council Engineers Chester Council

Ellesmere Port Royal London Pioneer Point, Asset Regatta 36,533 37.67 15 Lamont Commercial Poole Hall Road Management

1 Chapelhouse Close, Andrews Property Legat Owen/Morgan Hertel UK 4,088 Undisclosed Undisclosed Cloister Way Investments Williams

Elm Court Legat Owen/ Northern Trust Flexible Coatings 2,875 59.2 2 Newbridge Road Whittle Jones

Unit 1, Junction Eight Royal London Hitchcock Wright Business Park, Next 891 48.44 10 Property Fund and Partners Rosscliffe Road Cheshire West & Chester Annual Property Report 2012 2521

Size Price/Rent Location Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Unit 2c Rossmore Industrial Estate, Undisclosed Private Individual 891 13.99 Undisclosed Rossbank Road

Legat Owen/Lambert 7g­7h, Junction Eight Smith Hampton/ Business Park, Royal London Screwfix 878 45.75 10 Williams Gunter Rosscliffe Road Hardwick

Waters Business Park, Northern Office Andrew Page Ltd 574 Undisclosed 10 Mason and Partners Oil Sites Road Investments

Unit 6, Mersey Court, Merseyton Road, Portside Undisclosed Undisclosed 504 47.63 Undisclosed Legat Owen Industrial Estate

Portside South, Hurstwood Itab Interiors 465 43.06 Undisclosed Hurstwood Gibson Court Holdings Unit 7a, Junction Eight Undisclosed Undisclosed 438 Undisclosed Undisclosed Hitchcock Wright Business Park

Scrap Solutions, Canalside R Webster and Co Undisclosed 384 Undisclosed Long­Leasehold Sanderson Weatherall Industrial Estate

Units 1­4, Merseyton Hurstwood LTG UK 354 43.10 1 Hurstwood Road Holdings

Unit 5, Mersey Court, Merseyton Road, Portside Undisclosed Undisclosed 306 31.08 Undisclosed Legat Owen Industrial Estate

Westminster Unit 3, Merseyton Road, Undisclosed Electrical and 279 26.91 Undisclosed Portside Industrial Estate Plumbing

Unit 17, Elm Court, Legat Owen/Whittle Northern Trust Flexible Coatings 258 63.79 Undisclosed Newbridge Road Jones/Bolton Birch

Novah/H&H Video 2­5 Portside Ultrascan Non­ & TV/Electricity 208 Undisclosed Undisclosed Business Park Destructive Testing Solutions

Unit 4, Stanney Ten The Hollins Al­Murrays Industrial Estate, 207 44.99 Undisclosed Legat Owen Murray Group Carpets Stanney Mill Road 26 Cheshire West & Chester Annual Property Report 2012

Size Price/Rent Location Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Northwich Mid Cheshire Frank Marshall Units 1­2, Ash Street Undisclosed 529 Undisclosed Undisclosed Fruit Co. and Co.

Unit 6, Kingfisher Court, Edmundson Undisclosed 225 43.33 Undisclosed Denton Drive Electrical

Unit 5, Kingfisher Court, WML Ex Pension Private Individual 225 43.33 Undisclosed Denton Drive Scheme

1­3 New Cheshire Vale Plumbing Blue Machinery 223 Undisclosed Undisclosed CBRE Business Park Supplies

Tarporley Unit One, Tarporley Undisclosed Undisclosed 2,520 27.00 Undisclosed Lamont Commercial Buffer Depot, Rode Street

Winsford Units 19/20, Premier CBRE/Lamont Park, Winsford Patrick Properties Seafield Logistics 4,181 51.12 10 Commercial Industrial Estate

Navigation Park, Mitras Automotive Legat Owen/Lamont Stretton Estates 1,858 40.36 5 Winsford Industrial Estate (UK) Commercial Unit 16, Premier Park, CBRE/Lamont Patrick Properties Zulu 1,115 56.50 10 Winsford Industrial Estate Commercial Ibex House, Northenside, S. Hall Network 4 1,115 32.28 5 Lamont Commercial Nat Lane Unit 11, Premier Park, Patrick Properties Bentley Cars 1,022 Undisclosed Undisclosed Legat Owen Winsford Industrial Estate

Matthews and Unit 6, Pineapple Park Omega Goodman/Jones Lang One, Winsford Industrial Crankshaft 465 40.32 3 Automation LaSalle/Lamont Estate Commercial

Unit 3, Nat Lane, Fraylings Holdings S Cooper And Sons 279 340.5 Freehold Lamont Commercial Wharton Industrial Estate

Unit 2, Nat Lane, Carpets Unlimited AB Joinery 232 625.00 Freehold Lamont Commercial Wharton Industrial Estate

Unit 9, Woodford Cheshire West and Mid­Cheshire Cheshire West and 216 35.65 3 Court, Leslie Road Chester Council Conversions Chester Council 27

“Nationally demand levels for industrial and distribution space were largely unchanged from those of 2010, despite continuing concerns with the economy.” 28 Cheshire West & Chester Annual Property Report 2012

Retail

The borough’s retailing sector, spearheaded by Chester city centre and Cheshire Oaks, at Ellesmere Port, continues to deliver despite challenging economic conditions, rising operating costs and the growth of online shopping.

Reports on retailing, published at the end of 2011, show Also at Cheshire Oaks, Marks and Spencer continued a polarised national performance, with some high streets with the construction of their largest UK store outside thriving and others locked in a spiral of decline. It is now London. The 195,000 sqft (18,116 sqm) store is due to evident that with technology enabling consumers to shop open in Autumn 2012. And the adjacent ‘The where, how and when they like, town centres need to Coliseum’ development has announced that adapt if they are to thrive, or even survive. Debenhams has chosen the location for a new 60,000 sqft (5,574 sqm) store. Retail sector experts comment that rising travel costs may lead to less shopping trips and that consumers may Belief in the long term economic strength of the want to combine these with leisure activities such as Cheshire West and Chester area was behind John visiting the cinema or having a meal. Leisure, excitement Lewis’ decision to open a ‘John Lewis at Home’ store at and a sense of theatre will be components of successful Greyhound Retail Park, Chester. The 38,000 sqft (3530 retail centres. sqm) store, which began trading in 2011 is the first ‘at Home’ shop to open in North West, and only its fifth Evidence of this is illustrated by McArthur Glen’s Cheshire within the UK. The store has created some 200 jobs. Oaks development at Ellesmere Port. The total number of stores is now 145, with 2011 seeing over 14 new The year saw 153,000 sqft (14,215 sqm) of retail brands opening. These included Hugo Boss, Jigsaw, floorspace completions for properties in excess of Armani, Mamas and Papas, Gant, Reiss and Wolford. UK 2,000 sqft (c.200 sqm). These represented a similar restaurant chain Wagamama also brought its brand of number of transactions to 2010, but more than double pan­Asian food to Cheshire Oaks. And in November, the previous year’s floorspace take­up. Around one Liverpool FC confirmed its plans to open a Boot Room fifth of the floorspace reflects Wickes’ purchase of the Sports Café that will create 50 jobs. The level of new former Focus DIY store at Wharton Retail Park, investment achieved during 2011 helped Cheshire Oaks Winsford. This was one of the thirteen former Focus to deliver year­on­year sales growth of 14 percent, and stores bought by Wickes – but the only one in the footfall up by 4 percent. North West. 29

The level of new investment achieved during 2011 helped Cheshire Oaks to deliver year­on­year sales growth of 14 percent, and footfall up by 4 percent.

In Autumn, Frogmore Property Company completed construction of the fourth phase of The Port Arcades Shopping Centre at Ellesmere Port, and signed up UK chain, Store Twenty One. And as the year ended, Poundstretcher announced they would be taking the former TJ Hughes store within Port Arcades.

Comparing retail demand in terms of deals done against enquiries received over the year shows some differences. Firstly enquiries for larger floorplates saw a significant hike from the recent trend. Over one fifth involved requirements of at least 10,000 sqft (930 sqm). Another one in seven were for units of more than 2,500 sqft (232 sqm), reflecting the national trend of retailing. This sharply contrasts with the transactions reported in 2011, which saw 70 percent falling into the 2,500 to 10,000 sqft bracket (232­930 sqm).

No doubt a reflection of the difficult trading conditions for the retail sector, but as with other sectors of the property market, there has been a much increased reluctance from landlords to divulge transaction information on rents and lease terms. The presumption is that in the current market, occupiers prepared to take on new outlets – at least in town centres locations – are securing very competitive deals.

Chester city centre once again dominated the transactions. Three quarters of Chester’s eighteen transactions involved city centre properties, with the majority of these being either on Foregate Street or at the Grosvenor Shopping Centre. Deals involved a mix of national multiples and local or regional retailers. Amongst the national names, Waitrose, on Foregate Street, and Tesco on Pepper Street, both opened small format food stores. 30 Cheshire West & Chester Annual Property Report 2012

Retail deals

This schedule only relates to properties in excess of 200 sqm. Lease renewals are excluded.

Size Price/Rent Address Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Chester The Grosvenor Shopping Carlyle Group Undisclosed 1,177 Undisclosed Undisclosed Savills Centre

The Grosvenor Shopping CEREP Grosvenor Turners Pine 1,130 56.05 1 Tushingham Moore Centre, 14­18 Paddock Row S.A.R.L

BS Pension Fund The Entertainer Legat Owen / Smith 92 Foregate Street 920 108.75 10 Trustees Group Price/Reid Rose Gregory Unit 3, Caldy Valley Sainsburys Rightway 697 28.70 3 Kenny Moore Retail Park Aviva Investors 44 Foregate Street Little Waitrose 669 Undisclosed Undisclosed CBRE Global Service

Welbeck 72­76 Foregate Street Investment Holton 622 Undisclosed Undisclosed CBRE Management

Chester Retail Park, Consolidated Maplin 522 Undisclosed Undisclosed Savills Old Seals Way Property Group

36 Bridge Street Undisclosed Sugacane 419 89.50 10

Windsor House, Bride Hall Savills/Tushingham Tesco Stores 418 Undisclosed Undisclosed Pepper Street Holdings Moore

Units 1­2, River Lane New Embrace Barnardos 372 Undisclosed 10 Mason Owen

The Grosvenor Shopping Bride Hall Centre, 22 St Michael's Raw 370 Undisclosed Undisclosed Tushingham Moore Holdings Square

Unit 1, 7 Lower Bridge CEREP Grosvenor Street and 3A­ 3B Windsor Furniture Matters 337 103.85 2 Tushingham Moore S.A.R.L House, Pepper Street

The Grosvenor Shopping Bride Hall Centre, 16 St Michael's Pop Art Products 325 Undisclosed Undisclosed Tushingham Moore Holdings Square

Claire House 53­55 Frodsham Street Edam Ltd 262 129.69 10 Mason Owen Childrens Hospice

The Grosvenor Shopping Bride Hall Savills/Tushingham The Works 243 Undisclosed Undisclosed Centre, 23 Newgate Row Holdings Moore 31

Size Price/Rent Location Vendor/ Purchaser/ Lease Terms Agents Landlord Tenant (m2) (£m2) (years)

Unit 1, Ethos Court, David Kingsley 3K Enterprises 232 103.33 5 Kenney Moore City Road

The Grosvenor Shopping Bride Hall Savills/Tushingham Pulp 220 Undisclosed Undisclosed Centre, 14 Newgate Row Holdings Moore Fawley Watson 42 Foregate Street Studley The Bodyshop 209 409.43 10 Booth/MMX Retail

Ellesmere Port Invista Real Estate Coliseum Shopping Park, CBRE/Wilkinson Investment H&M 791 Undisclosed Undisclosed 30 Coliseum Way Williams Management 315­317 Chester Road, Undisclosed Wirral Pine Centre 597 251.25 Undisclosed Kenny Moore Little Sutton

Unit 3, Phase 4, The Port Frogmore Property Store Twenty One 557 134.64 10 Tushingham Moore Arcades Shopping Centre Company

Northwich Cheetham and 46 Witton Street Undisclosed Sue Ryder 217 207.37 Undisclosed Mortimer

Winsford Wharton Retail Park Ernst and Young Wickes 2,909 Undisclosed Freehold Weaver Valley Road LLP

Cheshire West Retail Enquiries by Size, percent* 2 Year Size (m ) 0­ 93 93­ 232 232­ 456 456 ­930 930 ­1,860 1,860 ­4,645 4,645+ 2006 50 17 17 3 13 ­ ­ 2007 64 17 12 4 3 ­ ­ 2008 57 25 7 1 7 ­ ­ 2009 34 28 18 7 14 ­ ­ 2010 64 12 14 2 7 ­ ­ 2011 47 18 14 ­ 21 ­ ­ Source: Cheshire West and Chester Council. *Includes Use Classes A1­A5 and C1 (Hotel) 32 Cheshire West & Chester Annual Property Report 2012

Residential

The 2011 Annual Property Report drew attention to the re­awakening of the housing development market. Last year saw the market getting out of bed. 39 planning applications were approved for schemes that deliver a minimum of five residential units. Collectively they equate to just under two years supply based on the borough’s annual 850 units target.

The shortage of housing land supply, the level of Neston, Northwich and Winsford. Northwich saw the affordable housing to be provided, and beneficial re­use second largest share of planned supply, with almost one of redundant or derelict factory sites, were factors third of the total. These include the two large proposals exorcising such residential planning decisions in 2011. for the Tarporley area.

‘Past their sell by date’ brownfield sites continue to The need for affordable homes in rural areas of Cheshire attract residential developments in Cheshire West and continues to grow. In response to this social landlord Chester. During 2011 outline planning consent was Plus Dane completed a development at Kingsley, near granted for housing (37 units) on the former Richmond Frodsham, aimed at locals who have been priced out of Packaging premises in Winsford. The approval is one of the area. Funding contributions for the development the first to be given within Winsford Waterfront, an area were made by the Homes & Communities Agency and identified for residential­led regeneration. Cheshire West and Chester Council. This scheme contributed to the total of 803 residential units In the first quarter of the year planning consent was completed during the year, and to the 48 percent share secured for the 15 acre (6 ha) former Nestle yoghurt associated with affordable housing. factory at Cuddington. Taylor Wimpey was granted outline permission for 156 homes, and subsequently The number of completions in 2011 was the highest for purchased the site from owners Ainscough Strategic five years – but is still some way short of the 1,336 figure Land, in what is claimed to be the largest single achieved in 2006. residential land transaction in the North West since the recession.

Greenfield sites were also consented during the year. Planning permissions were granted for two developments in the Tarporley area, which together would deliver 279 homes. Taylor Wimpey secured consent for 130 homes on a 13 acre (5.25 ha) site at Tarporley Road, Tarvin. Fox Strategic Land and Property, owned by Congleton­based Gladman Developments, was granted planning for 149 new homes on another site of 11 acres (4.45 ha) in Cuddington.

At Lostock Triangle CDP secured outline consent for 160 dwellings on 11 acres (4.45 ha) that was previously earmarked to be part of Cheshire Business Park.

Developer appetite for all areas of Cheshire West and Chester is reflected in the 39 consents figure mentioned above. Whilst Chester accounted for about 40 percent of both consents and total units to be provided, schemes were also approved in Ellesmere Port, Frodsham, Malpas, 33

The number of completions in 2011 was the highest for five years – but is still some way short of the 1,336 figure achieved in 2006. 34 Cheshire West & Chester Annual Property Report 2012

Major Housing Schemes 2011

(30 Units plus completed)

Scheme Settlement Housebuilder(s) Units Completed 2010

Former St Lukes RC Primary School, Ashton Drive Frodsham Weaver Vale Housing Trust 65

Land to the east of Tower Wharf, off Raymond Street Chester CTP 56

Cambridge Road Development ­ Great Hall Park Ellesmere Port Taylor Wimpey 52 (Phase One: Land at Lees Lane), Former McAlpine Site

Land at Black Diamond Street, fronting Hoole Road Chester Taylor Wimpey 47

Chester and District Wain House, Rake Way, Saughall Chester 37 Housing Trust Cosmopolitan Housing Ellesmere Port Conservative Club, Westminster Road Ellesmere Port 37 Association Chester and District Hoole House, Willow Crescent Chester 36 Housing Trust

Land at Waterbank Road Northwich Halebank Developments 35

Former YMCA House and land to the rear, Chester Watkin Jones and Son 34 Station Road

Housing Consents 2011

Schemes with a minimum of 5 units

Affordable and Affordable and Location Total Sites Total Units Extra Care Sites Extra Care Units Chester 15 629 5 202 Ellesmere Port 4 149 2 42 Frodsham 4 85 0 0 Malpas 1 5 0 0 Neston 2 20 1 15 Northwich 7 551 0 0 Winsford 6 117 3 35 Total 39 1556 11 294 35

Future Supply of Housing

Future dwelling completions greater than 100 units in the next five years

Scheme Settlement Housebuilder(s) Units Completed 2010 Winnington Urban Village, Land at Winnington Northwich Morris Homes 250 Avenue/Winnington Lane Fox Strategic Land Land at Chester Road/Forest Road, Cuddington Northwich 149 and Property

Linenhall Stables, Stanley Street Chester Taylor Woodrow 144

Car Park, Northgate Avenue (Extra Care) Chester Arena Housing Group 131

Site of Former Saighton Camp, Sandy Lane (Land Saighton Bovis Homes 125 south of Phase One) Nestle Site, The Creamery, Warrington Road, Northwich Taylor Wimpey 110 Cuddington Cambridge Road Development (Outline permission Ellesmere Port Taylor Wimpey 110 for the remaining phase)

Former YMCA House and land to rear, Station Road Chester Watkin Jones and Son 110

Lostock Triangle Site, Manchester Road, Northwich Barratt Homes 110 Lostock Gralam Overpool ­ (Phase One) Land at Netherpool Road Ellesmere Port Bellway Homes 107 (Rivacre Village) Rossfield Park Development (Remaining Phases Ellesmere Port Wainhomes/Persimmon 103 3B/4/5), Rosscliffe Road/Rossbank Road

Mere's Edge, Former BICC Site, Chester Road (Extra Care) Helsby Brookhouse Group 100

*Includes schemes with outline and full planning permission and schemes awaiting completion of a Section 106 agreement, as well as those under construction.

Housing Completions 2004­2011

(Net Completions)

2004 2005 2006 2007 2008 2009 2010 2011 Total

Completions 1062 1116 1336 799 707 723 733 803 7281 Affordable ­ ­ ­ ­ ­ 223 283 382 887 36 Cheshire West & Chester Annual Property Report 2012

Strategic Developments

Cheshire West and Chester Council has four spatially focused initiatives. For three, Place Teams are already set up. The fourth, for the Rural Areas, will follow in 2012.

Locally determined, comprehensive regeneration initiatives have shown in the past that they can deliver value and returns. And in this respect the decision has been taken to set up the Blacon Asset Management Company, to be jointly owned by the Council and Chester & District Housing Trust. The company will manage assets including land, buildings and housing in Blacon. The initiative is seen as a UK lead project in localism.

Chester Renaissance

Chester Renaissance is an ‘arms length’ regeneration Chester Renaissance will play a key role in ensuring body working across the city to support the efforts of Chester is effectively positioned to take advantage of the partners to complete and accelerate economic new and emerging funding and delivery initiatives and growth of the city, ensuring that delivery happens in a will champion Chester as a business location to both timely manner. Led by a Chief Executive and existing and potential inward investors. Its core strengthened by a private sector led board its work functions will centre around:­ contributes to the wider area of the Cheshire West and Chester Borough by providing a strengthened and • Managing the city through City Centre focused capacity to deliver change and support its Management and delivery of a Business partners. Improvement District • Business in the City – focussing on inward The recent production by Chester Renaissance of the investment One City Plan sets out a 15 year strategic plan for the • Developing the City city. The plan has been widely consulted upon and • Animating the City – working with the Events and recognises the city as it is now and sets out its plans Festivals Board and aspirations for the city of the future. • Marketing the City – working with Marketing Cheshire The planned programme of new development and city centre improvements within the One City Plan aims to The One City Plan has received the endorsement of the make Chester a ‘must see’ European city. Chester Renaissance Board as well as cross party approval from the Executive of Cheshire West and Chester.

A major initiative for Chester is the business quarter in the east of the city. Using the Railway Station as a gateway to the city, some 500,000 sqft of high quality new office space and new public realm will drive Chester’s commercial offer and economic growth. The project is privately led by Muse Developments and a planning application is expected late 2012.

Having terminated the development agreement with ING Real Estate, Cheshire West and Chester Council has prepared new concepts for the Northgate site. These propose a multiplex cinema, department store, restaurants, retail units, new library and market. 37

There will also be a new approach to bus provision, 129,000 sqft (11,970 sqm). One will comprise a health rather than the previously proposed revamp of the centre for four GP practices, along with community city’s existing bus station. A detailed scheme and services and associated facilities. One will contain 42 business case are to be reported to the Council in apartments. The third will provide 32,200 sqft (2,990 summer 2012. sqm) of offices and local authority health services.

Planning consent has been given for a £30 million Waitrose submitted plans for a £40 million development on the Gorse Stacks site on Delamere development at Boughton Retail Centre and St Paul’s Street, near the Roman walls and close to the School site. The redevelopment of these sites will Fountains Roundabout. The originally consented create a new 50,000 sqft (4,645 sqm) Waitrose scheme stalled due to demand for retail and private supermarket, a 120­bedroom hotel, two new retail residential property evaporating. The site’s sensitive units and a new car park. A new pedestrian bridge location has involved extensive consultations with a over the Shropshire Union canal will provide a link to number of organisations but the go ahead has now the railway station and the proposed Chester Business been secured for three buildings totalling almost Quarter development.

Ellesmere Port Development Board

Established in 2010 the Development Board has Investment in Ellesmere Port’s retail offer continued produced a Vision and Strategic Regeneration on two fronts. In the town centre, the fourth phase Framework for the town. This addresses economic, of Frogmore’s development at The Port Arcades was social and physical improvements over the next decade. completed. Work proceeded at a pace on the Housing, the re ­use of large tracts of brownfield land, construction of what will be Marks and Spencer’s and ensuring business growth, are key priorities. second largest UK store, to be located at Cheshire Oaks. This is expected to be trading in autumn 2012. 2011 saw progress on a number of key developments Also at The Coliseum at Cheshire Oaks, Debenhams that will contribute to delivery of the vision. announced their commitment to taking a 60,000 sqft Construction commenced on a £25 million academy (5,574 sqm) store. building. The University of Chester Church of England academy opened in 2009, based in the former Cheshire The Development Board has secured funding for an Oaks High School and Ellesmere Port Specialist School initial two ­year contract for a town centre manager. of Performing Arts. The new development includes an This is to be jointly funded by Marks & Spencer and eight acres (3.24 ha) site that will deliver sports pitches Cheshire West and Chester Council. and an athletics track facility. Project completion is programmed for autumn 2012. 38 Cheshire West & Chester Annual Property Report 2012

Weaver Valley Partnership

The Weaver Valley Partnership has been formed to develop a detailed scheme for planning consent, and plan, co­ordinate and deliver new activity throughout to identify potential occupiers. The scheme will the Weaver Valley, including the Cheshire West and comprise 205,000 sqft (19,045 sqm) of non­food Chester’s towns of Northwich and Winsford. retail including a 50,000 sqft (4,574 sqm) department Together with Middlewich the towns are being store anchor, restaurants, a cinema, a bowling alley marketed as Mid Cheshire. as well as public squares. An outline planning application is expected to be submitted in autumn In Northwich, 2011 saw plans submitted for the 2012. redevelopment of Northwich Marina. The proposals have been produced by H2O, the joint venture Another development focus for Northwich is the new company formed by British Waterways and private Entertainment and Leisure Centre proposed for the developer, bloc. The plan is to regenerate a long site of the current Memorial Hall and former underused and mainly vacant site that has significant Magistrates Courts. This will see the Council development constraints, providing public access to committing to a £12.5 million capital investment that Northwich’s new waterfront. The scheme, if will provide a new entertainment hall, swimming approved, will see a 18,000 sqft (1,672 sqm) pool, dance studio, café bar, gym and spa in a Waitrose foodstore; town centre car parking; building that will contribute to the town’s waterways improvements including 40 boat mooring regeneration and enhancement of its riverside berths; new waterside restaurant and café facilities setting. Mouchel have been appointed to take the and a McCarthy & Stone retirement village. project to outline design stage, ahead of the Council appointing a Design and Build contractor. The new As reported in last year’s Annual Property Report, facility is targeted for opening in January 2015. one of the area’s key strategic development opportunities is Barons Quay, Northwich. This In Winsford, The Town Council, the Weaver Valley occupies a 25 acre (10 ha) site which sits between Partnership and Cheshire West and Chester have the town centre and the River Weaver. 2011 saw joined forces to develop a Neighbourhood Plan. This progress towards its delivery. has been selected by the Government as a national pilot. The plan will look at a range of development First, Cheshire West and Chester Council took back and growth issues for the town, including the town control by terminating an agreement with developer centre redevelopment, future housing, employment Wilson Bowden, after the developer’s proposed and leisure needs. Planning consultants Tibbalds scheme foundered due to the property market have been appointed to develop the plan in downturn. As a result the Council has now appointed conjunction with the Weaver Valley team and the a consultancy team led by Rider Levett Bucknall to Council’s spatial planning team. 39

Rural Areas

In 2012 Cheshire West and Chester Council will of the borough’s population and one third of its’ establish a Place Team for the Rural Areas. Around employment. 85 percent of the local authority area falls within Rural Areas. This includes the market towns of During 2011 the Council’s rural support fund Frodsham and Neston; the larger villages of awarded £513,000 to 28 capital projects within Tarporley, Helsby and Malpas; the landed estates of these areas with a total value of £5.5 million. Funds Grosvenor, Bolesworth, Peckforton and have been awarded to community organisations, Cholmondeley; Reaseheath College and Delamere charitable groups and other groups carrying out work Forest. The Rural Areas are home to over 40 percent in their local communities. Acknowledgements

BNP Paribas Liberty Properties Carter Jonas Marshall CDP CBRE Mason and Partners Chantry Developments Mason Owen and Partners Cheetham and Mortimer Matthews and Goodman Colliers Miller Developments Commercial Estates Group Morgan Williams Cushman and Wakefield Morris Homes Mowbray Gill Daniel and Hulme Muller Davies Harrison Nolan Redshaw Edward Symmons OBI Property Fifield Glyn P3 Property Consultants Fisher German Patrick Properties Fisher Wilson Peel Frogmore Property Persimmon Gerald Eve Pochins Greenham Commercial Rory Mack Associates GVA Sanderson Weatherall Honeyborne Kenny and Partners Savills Commercial Jones Lang LaSalle Seddon Homes Kenny Moore St Modwen Keppie Massie Taylor Wimpey Knight Frank Tushingham Moore Lambert Smith Hampton Wainhomes Lamont Commercial WHR Property Consultants Legat Owen Wild Commercial

BE Group is a property agency, regeneration and planning consultancy and has over 30 years experience of working in the Cheshire and Warrington commercial property market. This report has been carefully prepared. However it is for general guidance only and Cheshire West and Chester Council, Marketing Cheshire and BE Group cannot guarantee that there are no errors or omissions. The information, forecasts and opinions set out herein should not be relied upon to replace professional advice on specific matters. No part of this report should be published, reproduced or referred to without the prior permission of the above organisations.

For investment and property enquiries please contact Meryl Pugh on tel: 0151 356 6609 or email us at: [email protected]

Cheshire West and Chester Council – Meryl Pugh email: [email protected] Marketing Cheshire – Barrie Kelly email: [email protected]

Cheshire & Warrington Local Enterprise Partnership ­ Aidan Manley email: [email protected]

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