Cheshire East Annual Property Report 2012 www.investincheshire.com 01 Cheshire East Annual Property Report 2012 I Cheshire East Annual Property Report 2012 02 Contents Foreword 03 Executive Summary 07 The Cheshire East Economy 09 Investment 11 Offices 13 Leisure and Culture 17 Industrial and Distribution 19 Retail 25 Residential 29 Strategic Developments 33 Acknowledgements 36 03 Cheshire East Annual Property Report 2012 Foreword 2011 represented a major year of progress for Cheshire East. Our Borough secured major job boosts, many on the back of new property deals. We are set well for the future with over £50m recently committed to deliver investment in projects that will improve infrastructure and boost business productivity. As the gateway between the Midlands, the Cheshire & Warrington sub­region and Greater Manchester, Cheshire East has the potential to deliver more growth. Much more. Cheshire East Council is focused on ensuring we realise this by ensuring the conditions for economic growth are in place – whether it be our town centres, road and rail infrastructure, or education services – we are pushing harder than ever. Our own assets are an important element of this, and we’re keen to use these to deliver new investment and jobs. I and my team have an open door to developers and investors who share our ambitions and can help us deliver them. We know our plans will deliver the aspirations of our residents and businesses. It can deliver Cllr Michael Jones for you too. Leader, Cheshire East Council 04 9 Nantwich Court, Hospital Street, Nantwich, Cheshire CWS SRH Cheshire's leading Commercial property specialist • Investment • Development • Office • Industrial • Management & • Retail Professional HIN PROPERTY All The Space You Need We work in partnership with public and private sector organisations, investors and local communities in order to create high quality developments • DEVELOPMENT • INVESTMENT • MASTERPLANNING 07 Cheshire East Annual Property Report 2012 Executive Summary As this is the second Annual Property Report for Cheshire East there is a benchmark against which 2011’s performance can be measured. For most sectors of the property market the evidence is one of positivity and resilience despite the background of another tough twelve months for the economy. The stand out success was the industrial and distribution sector where the achievements were at odds with the national trend. Whilst across the country take­up in the sector fell by more than 25 percent, in Cheshire East it increased by 45 percent and over 1.1 million sqft was let or purchased. This included Expert Logistics investment in Crewe, which at 360,000 sqft, placed it in the top 12 largest deals in England in 2011. It was certainly a year of success for Crewe. Over 40 percent of all the industrial transactions and 80 percent of the floorspace take­up, was in the town. The green shoots of recovery in the residential The retail and leisure sectors saw an uplift in market recorded in 2010 grew sharply during the deals transactions, albeit from a relatively low year. Again, Crewe featured prominently as the benchmark figure. Amongst those taking new approval of the Borough Council’s interim planning retail space in the Borough were a number of policy allowing the release of land adjacent to national names – WH Smith (Knutsford); Laura the settlement boundary, generated a number of Ashley and Morrisons (Wilmslow); Waitrose in housing applications and consents. Housebuilders Knutsford; Costa Coffee and Frankie & Benny’s in also promoted new schemes, recognising that the Crewe. Borough lacked a five­year land supply. Although away from the high street, another The upshot was that over 2,250 residential units iconic sports car manufacturer opened new were granted planning in the course of the year – North West dealership operations in Cheshire East, a more than sevenfold increase on the 2010 figure. in 2010 McLaren announced its first Northern More than 80 percent of the total is attributed to dealership, which opened in Knutsford in 2011. five approvals. Proposals by Taylor Wimpey, This year it was the turn of Ferrari, who located in Bloor and Linden Homes will see 1,050 homes in Wilmslow. Crewe. Two large mixed­use schemes proposed by Bluemantle, that will regenerate former industrial sites in Disley and Holmes Chapel, include a further 445 residential units. Countryside Properties will build 375 homes as part of a mixed­ use development near Sandbach. 08 Mirroring the experience of the adjacent A vision for Macclesfield’s future has been agreed; Manchester market, Cheshire East’s office sector a strategy is already in place to promote its image saw a decline in take­up from the previous year’s and boost its economy; a branded website has figure. The office sector continues to suffer more been established. The 63 ha South Macclesfield so than the industrial sector from the ongoing Development Area is now likely to be promoted challenges to the economy. The number of as a large­scale leisure­led mixed use scheme. transactions reported dropped by almost half from Cheshire East Council and Wilmslow Town the level of 2010 and although the floorspace Council joined forces to pursue substantial take­up also reduced, by just over one fifth. SME new development in Wilmslow town centre businesses are capitalising on the market harnessed to a new lifestyle centre. Also in conditions and purchasing rather than leasing Wilmslow, the Waters Corporation secured properties. Forty percent of the transactions consent and commenced construction on a new recorded involved freehold deals. UK headquarters, R&D and manufacturing facility for its mass spectrometry business on a 37 acre Wilmslow’s location in proximity to Manchester (15 ha) site. International Airport and within the important South Manchester out­of­town office market was Scarborough Development Group announced a reflected in 2011’s performance. Property £14 million redevelopment and extension scheme transactions in the town attracted Cheshire East’s for the Bridestones Centre in Congleton. Work offices headline values – rents at £17.50 per sqft will commence during 2012 on a new foodstore, (£188 per sqm) and £175 per sqft (£1880 per sqm) market hall, retail units and a multi­storey car freehold value. park. Investment transactions increased in number by In Woodford the former BAE Systems aircraft fifty percent compared to 2010. There was production plant was acquired by Avro Heritage. business to be done in the retail property sector, Avro subsequently entered into a joint venture with three investments traded at a combined with Harrow Estates to pursue proposals for the value in excess of £47 million. Properties occupied 500 acre (202 ha) site that could see 900 homes by Waitrose in Knutsford and B&Q in Crewe, provided on the part of the site that lies within attracted pension fund purchasers, with a Stockport borough. combination of covenant and location resulting in an initial yield of 5 percent for the Waitrose premises. The third investment involved the sale of the Grosvenor Shopping Centre in Macclesfield to Eskmuir Securities. This year saw public sector funding secured to deliver new and improved pieces of transportation infrastructure within Cheshire East. A new dual carriageway link between the M6 and M56 will ease congestion on this heavily trafficked route. Public sector funds will help deliver major development opportunities at Basford and Midpoint 18. Also, the upgrading of Crewe’s historic rail station was kick started with a £6 million Government grant. Progress was made with a number of strategic developments. A private sector­led Partnership Board is now in place to lead the All Change for Crewe regeneration programme. The Make it Macclesfield Forum was also established early in the year to drive economic growth in the town. 09 Cheshire East Annual Property Report 2012 The Cheshire East Economy As 2011 ended the evidence emerged that the UK A total of six companies feature in the Top Track 250, economy was once again shrinking and the fragile as do three in the 100 best UK small businesses to confidence expressed during the year of signs of work for. The plaudits go to Knutsford located de recovery had cracked. Projections of economic Poel Ltd, who are the UK’s number one procurer of growth for 2012 are being downgraded, with temporary agency labour and who featured in almost particular concerns that the manufacturing sector, every listing. that had seemed to have fared well, is now also faltering. There was economic good news stories associated with Cheshire East’s main industry sector strengths. With more businesses than any other North West Waters Corporation announced it had purchased the unitary authority area; with strengths in former Ciba­Geigy Life Sciences site at Wilmslow pharmaceuticals, automotives and advanced for a new mass spectrometry headquarters that will engineering, research and development, and paper combine four separate existing sites. The site of 37 and paper products; with its locational assets of acres (15 ha) has now secured planning consent for proximity to Greater Manchester, Manchester Airport a 212,620 sqft (19,753 sqm), £60 million investment and accessibility to the M6 motorway and West by this US owned corporation. The development will Coast Main Line railway, Cheshire East continues to include world class customer demonstration demonstrate a resilient economy. laboratories, R&D facilities and expanded manufacturing capacity. Construction has begun on Consistently Cheshire East­based businesses feature the site that will see 450 working there when it in ‘the best of’ listings, not just at the North West opens in 2013. region level but also nationally. Insider Magazine’s Top 200 lists 21 Cheshire East companies, with two Other internationally owned businesses also Knutsford companies – Amec and Marlowe featuring committed to first investments in Cheshire East.