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Liverpool Development Update

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LIVERPOOL DEVELOPMENT UPDATE March 2015 Welcome Welcome to the latest edition of Liverpool Development Update. It is has often been said that you can judge how well a city is doing by counting the number of cranes towering above its skyline. Today, at the start of March 2015 there are 17 large cranes on building sites across the City Centre where some £1.13 billion worth of development is currently underway. This level of activity exceeds that which was underway in 2008 (excluding Liverpool ONE), the year of European Capital of Culture which had attracted so much developer interest in Liverpool. Now, some seven years later, that interest is being sustained and built upon even further. In the neighbourhoods, more than £750m worth of development activity is also underway. As the new Alder Hey hospital prepares to open, work has finally begun on a number of schemes we have waited for many years to see. The long-awaited Project Jennifer has begun, with work starting on the new food superstore in the next few months. In nearby Anfield, Liverpool FC has started the expansion of the club’s stadium, while just a couple of miles away, site clearance work is continuing as the £200m rebuilding of Edge Lane Retail Park gets underway. All the above activity, amounting to £1.89 billion, will create around 4000 jobs when all the new or refurbished floorspace is filled. In the meantime, the building work itself is creating several thousand construction jobs. Of the 12 new schools I promised when I became Mayor in 2012, 11 are either built or on site and the last school is currently awaiting planning permission. In the housing sector, more than 4,300 of my target of 5,000 new homes have been built or are currently on site, while the number of derelict and vacant homes brought back into use has now almost achieved double the original target of 1,000 and we now have a new target of another 3,000. We are also actively pursuing absentee owners of vacant homes to encourage them to bring their buildings back to life for families who want to live in them, and have introduced the UK’s first mandatory licensing scheme for private landlords to make sure that their properties are maintained to an acceptable standard. Liverpool is a fantastic city, much loved by the millions of visitors who come here to experience our cultural and retail offer, not to mention the burgeoning conference market with our BT Conference Centre FRONT COVER: and soon-to-open Exhibition Centre, which will attract some of Europe’s biggest trade shows and the ever-increasing number of cruise 2 ships calling in to our cruise liner facility. Last year’s International Festival for Business was a major success; one of its key legacies being 1 3 that Liverpool, the city region and the wider North West are more clearly recognised as excellent places in which to invest. Liverpool, a 4 top class business destination, will hold the event on behalf of the UK again in 2016. 1. ALOFT HOTEL, NORTH JOHN STREET 2. CROWN PLACE, I am sure that the information in this document will be useful to BROWNLOW HILL individuals and organisations involved in regeneration, investment and 3. JOHNSON CONTROLS, development and my team is always ready to talk to you. LIVERPOOL INTERNATIONAL BUSINESS PARK, SPEKE 4. LFC STADIUM, ANFIELD 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: £2.8 billion • Value of major schemes completed in Liverpool since January 2014: £648 million • Number of potential new FTE equivalent jobs created by city-wide developments THE LARGEST CONCENTRATION OF CRANES IN THE CITY AT ALDER completed since January 2014: 1,835 HEY’S NEW HOSPITAL SITE DURING SUMMER 2014 • Value of major schemes currently on site city-wide: £1.89 billion of which £1 billion will complete during 2015. SURGE IN CITY-WIDE DEVELOPMENT ACTIVITY • Number of potential new jobs that will be created by new developments that are Liverpool’s economic upturn is continuing, with 17 tall currently on site: 4,372 cranes visible on the city centre’s skyline alone evoking memories of the previous construction boom during 2008 as Liverpool ONE was nearing completion Breakdown of development values by and residential investors flocked to Europe’s Capital of activity currently on site, Liverpool city-wide Culture. At present the city has some £1.89 billion as at February 2015 (£m) worth of development activity on site, with some £740 15 million of this taking place outside of the City Centre. 50 By far the greatest element of this new activity is in the health 298 92 sector, with two of the city’s major hospitals currently being rebuilt at a combined cost of £666 million. Another major boom is being witnessed in student accommodation. This also had seen modest growth during the mid 2000s. However, students coming to the city from all 254 over the world have much higher expectations for their temporary city home, and suppliers are rising to the challenge to deliver yet more quality of choice, particularly 706 in and around the City Centre where some £297 million is being invested in the creation of over 4,000 student 22 pods/bedrooms. 157 Over £250 million is being invested in other housing either 87 building new homes or refurbishing existing homes. INDUSTRIAL 195 Significant progress has been made in bringing many empty OFFICES homes in the city’s neighbourhoods back into use, with the Mayor’s original target of 1,000 now having been RETAIL/DISTRICT CENTRES comfortably exceeded and an additional target of another HEALTH CENTRES & HOSPITALS 2,000 being set. EDUCATION (SCHOOLS, COLLEGES, UNIVERSITIES) With the long-awaited Project Jennifer just having gone on HOTELS site in North Liverpool, the value of retail schemes in the neighbourhoods has been boosted to £92 million, and will OTHER MAJOR LEISURE ATTRACTIONS see a more significant boost later this year when the next PUBLIC SECTOR INC INFRASTRUCTURE phases of the £200 million Edge Lane Retail Park get HOUSING (NON-STUDENT) underway. STUDENT ACCOMMODATION 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 2000: £4.36 billion Value of major schemes completed in the City Centre during 2014: £249 million Number of potential new jobs created or safeguarded by developments “BALTIC VILLAGE””, A £40 MILLION RESIDENTIAL SCHEME AT HURST STREET completed since January 2014 (when COMMENCED ON SITE IN DECEMBER 2014. IT WILL DELIVER 324 APARTMENTS. let and filled to capacity): 1,835 Value of major schemes currently on CITY CENTRE SEES SPIKE IN CONSTRUCTION site across the City Centre: £1.13 billion ACTIVITY AS NEW HOMES APPEAR of which £522 million is expected to complete during 2015. With over £520 million of investment due to complete in the City Centre this year, 2015 will see more than double the amount of investment finished than in most previous years. Investors are clearly returning to the city as money becomes available again, and it looks as though some £1.3 billion is likely to be spent over the next three years, creating several thousand jobs within the construction industry. Late 2014 and early 2015 is witnessing a welcome increase of non-student related residential activity commencing or coming forward for planning approval. Whereas 2013 and 2014 only saw some 124 new units built, 2015 and 2016 will see at least 745 apartments and family homes completed that are already on site. 600 (550) 550 28 500 522 115 (407) 430 400 230 300 310 312 287 270 £ millions 249 235 200 232 223 233 200 177 156 100 133 115 100 0 2005 2006 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 Major Development Schemes in Liverpool 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 VALUE OF ROYAL LIVERPOOL HOSPITAL (CURRENTLY ON SITE) EXPECTED COMPLETION YEAR AND VALUES OF UNSTARTED SCHEMES AS SUGGESTED BY DEVELOPERS 2 City Centre: Offices 2014 saw the continuing refurbishment of existing office stock providing refreshed accommodation for city workers, with a total of 383,341 sq ft being taken up, nearly 67,000 sq ft more than in 2013. Moorfields Corporate Recovery have invested in 20,500 sq ft of space inside Walker House and Horton House (Exchange Buildings): 16,500 sq ft inside Walker House was taken up by law firm Jackson & Canter, whilst 4,500 sq ft in Horton House will be filled by recruitment agency Bluefire Consulting. Meanwhile, Liverpool City Council refurbished some 80,000 sq ft of its new acquisition, Cunard Building, before relocating 800 staff into it. 16,500 SQ FT OF OFFICE SPACE INSIDE WALKER HOUSE WAS TAKEN BY JACKSON & CANTER WHO SPENT £500,000 ON A CUSTOM FIT OUT FOR Four significant new schemes are currently on RELOCATING ITS HEAD OFFICE FROM CHURCH STREET site.
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