coke gearing

PROPERTYMATTERSSPRING EDITION

INSIDE THIS ISSUE:n A strong year for Coke GearingCompletion on a total of 50+ transactions during the financial year 2012/13

n Development opportunities: Futura Park, IpswichA thriving working environment with up to 600,000 sq ft of new build units in 44 acres

n Air-related or just related to the airport?Development framework to replace the Local Plan

n Getting bigger, to serve you better!Coke Gearing moves into impressive new Harlow office

www.cokegearing.co.uk

Property Matters 12pp Spring 2013_Layout 1 24/04/2013 16:14 Page 2

Bishop’s Stortford Commercial Commentary

Richard Coke [email protected]

A strong year for Coke Gearing

According to statistics put together for the Estates Gazette’s‘Most Active Regional Agents’ competition, we completed on atotal of 50+ transactions during the calendar year 2012, anaverage of one per working week, and whilst this number is welldown on the transaction level that one might expect to see in amore active and buoyant market, it nevertheless represents acreditable performance from our team in current marketcircumstances.

They say that variety is the spice of life, and so it has been inrelation to Coke Gearing’s 2012 activity. During the year,amongst other things, we completed a lease of a new JohnLewis/Waitrose combined store in Ipswich, sold an engineeringworkshop in Stansted to a care home developer, a former hotel(Pearse House) to residential developers, an existing industrialsite to the Baptist Church and a former church building to a playschool, not to mention a range of ‘vanilla’ transactions in theindustrial, retail and office sectors.

We have represented a range of clients from major plc propertycompanies such as SEGRO, development funds and investors andlocal property owners, occupiers and investors. It is clear, despitethe generally negative opinions expressed in both national andlocal media, that the local business community as a whole is inreasonably good shape.

There are clearly serious issues around the general lack ofconfidence, and in particular issues remain with the availabilityof funding, particularly for any project which involves an elementof speculative risk.

We have, however, had conversations recently with high streetbankers who, surprisingly, are willing now to look at fundingspeculative property development transactions for the rightoperator with a good track record. Whilst this is encouraging,there is clearly a long way to go before normal service isresumed from a banking perspective.

Looking ahead to 2013, our concern is that we are likely to seedistinct areas of shortage of stock developing: for example in theindustrial/warehouse sector we have exchanged or put underoffer during the last three months around a dozen existinginstructions.

Given that no new building (with the exception of HowardProperty Group’s Raynham Road development) has taken placein Bishop’s Stortford since approximately 2007, we do foreseethat in specific areas of industrial and warehouse requirement –particularly in the small to medium sized range – there willshortly be a position where an occupier has a very limitedchoice of options. This is exacerbated by the absence of anymeaningful commercial land allocation within the EastHertfordshire Local Plan and within the emerging LocalDevelopment Framework.

We would seriously question the Local Authority’s commitmentto commercial development, given that there have been no

meaningful commercial elements emerging as part of the planningapplications to be submitted for the Bishop’s Stortford Northextension.

Given the emerging stock shortages, it is certainly conceivable that wewill see a return towards rental growth, and certainly a reduction inthe incentive and other packages offered to occupiers in recent times.

In view of this, and acknowledging that planning matters can take timeto progress, now would seem to be an appropriate time forlandowners to consider bringing forward sites that could potentiallyhelp to relieve the shortages.

Struggling against the background of a double dip recession, an incipient crisis in the eurozone andgeneral lack of confidence, together with an absence of appetite for risk, 2012 was always going tobe a challenging year for commercial property. Looking back over the last 12 months, we havesurprised ourselves by the volume and variety of transactions which we have undertaken.

n BAPTIST CHURCH - FORMERLY REDUNDANT INDUSTRIAL LAND

“Given the emerging stock shortages, it iscertainly conceivable that we will see a returntowards rental growth, and certainly areduction in the incentive and other packagesoffered to occupiers in recent times.”



On the market Bishop’s Stortford www.cokegearing.co.uk

To LetUp to 5,258 sq ft offices on ground and first floors. Modern suites with parking for circa 30 cars.

Water Circle, Elsenham Meadows

To Let500 sq ft corner retail unit with good visibility.

A1/A2 use. Two car parking spaces.

For SaleCharacter property in prime town location.1,707 sq ft on three

floors plus basement. Close to local car parking facilities.

30 North Street, Bishop’s Stortford121 London Road, Sawbridgeworth


On the market Bishop’s Stortford

Ground Floor, Sworders Court, Bishop’s Stortford

Investment SaleFreehold office, fully refurbished, let on new 15-year FRI Lease from August 2012.

To Let/For Sale2,369 sq ft and 3,194 sq ft self-contained, two-storey units with

parking. Close to Stansted Airport.

To Let3,500 or 7,000 sq ft retail space. Excellent passing trade/corner

position. Double height ideal for full mezzanine.

R/O Jackson Square, Bishop’s Stortford 40, 41 and 43 Golds Nurseries, Elsenham




Investment SaleA3 restaurant. Virtual freehold on prime riverside site with 13 years’ unbroken underlease.

To Let4,534 sq ft car showroom with associated yard and workshops.

To Let8,015 sq ft modern warehouse and offices with generous

on-site parking close to M11 and Stansted Airport.

Dane Street, Bishop’s Stortford Unit 28, Stansted Distribution Centre

Block C1, 4 Adderley Road, Bishop’s Stortford


To LetUnits from 3,292 to 14,414 sq ft. Under refurbishment.

To Let863 sq ft two-storey retail unit on busy

neighbourhood centre.

To Let556 sq ft prominent, attractive retail unit in busy location.

Unit 8, Thorley Neighbourhood Centre, Bishop’s Stortford 37 South Street, Bishop’s Stortford


UNDER REFURBISHMENT

Units 2, 5, 10 & 11 Haslemere Industrial Estate, Bishop’s Stortford


On the market Braintree www.cokegearing.co.uk

We were delighted to be involved with the acquisition of Coopers ofStortford’s 67,270 sq ft warehouse facility in 2010 and the subsequentregional facility for the East of England Ambulance Service’s HazardousArea Response Team (HART) in 2012.

Other properties being marketed in Braintree include modern B8warehouses and a selection of offices in the attractive and newlyrenovated Old St Michael’s hospital, a Grade II listed building which nowoffers modern working space set in an attractive landscaped courtyard.

Skyline 120 Business Park, Great NotleyCoke Gearing’s involvement with Countryside Properties’ Skyline 120 business park in Great Notleybegan in 2007 and continues with the remaining plot on the site, which offers design-and-buildopportunities from 15,000 to 40,000 sq ft for office, industrial, trade counter or warehouse units tosuit occupier requirements.

To Let2,895 sq ft modern office space in newly

renovated Grade II listed building with allocated parking.n MAJESTY HOUSE, SKYLINE 120

Unit 1, Old St Michael’s, Braintree


Potential for:

n Trade counters

n Car showroom

n Builders merchants

n Self storage

n Industrial

n Warehouse and distribution

n Delivery in 20 weeks from detailed Planning Consent

Futura Park Ipswich

Futura Park, IpswichIn a move that has demonstrated our capabilities beyond the Hertfordshire andEssex borders, Coke Gearing has been working closely with clients AquiGen RealEstate Solutions, the owners and developers of the new Futura Park site in Ipswich.

Even in a difficult market this demonstrates that with the right levelof expertise, and for the right occupier, development is still possiblein current market conditions.

Originally the 43 acre site belonged to Crane Co of Chicago, anengineering company that operated a foundry there for 83 yearsfrom 1919.

AquiGen, a joint venture between Generator Group and AquilaHouse Holdings, purchased the site in 2011 and, after clearance andremediation, the first ever combined store for John Lewis at homeand Waitrose was developed, opening on 8 November 2012.

With this first phase of development completed, the second phaseof retail space – 66,000 sq ft – recently gained planning approval,and six tenants have been confirmed: DFS, Furniture Village, PaulSimon, Costa Coffee, Carphone Warehouse and Oak FurnitureLand.

The construction of Phase II commences in spring 2013 forcompletion by late summer – a 16-week construction period.

While continuing to work on the retail development, we are nowlooking at the remaining part of the site which has outline consentfor a further 25 acres of office and industrial development.

Futura Park is an exciting project and we look forward to continuingour association as the employment land development continues.

www.futura-park.com

“A thriving working environment set within44 acres of superb landscaped grounds”


On the market Ipswich

Rare employment opportunity to operatealongside 100,000 sq ft newly opened John Lewisat home and Waitrose flagship store on Ipswich’spremier employment site.

For further information, or tomake enquiries regardingavailability, please contact

Richard Coke [email protected]

Rare development opportunity at Futura Park

25 acres of premium location employment land – B1/B2/B8 outline consentgranted – offering freehold occupation or leasehold, subject to covenant.

Potential for office space, industrial units, warehouse/storage facilities, carshowrooms and trade counters from 1 acre to 15,000 sq ft upwards


Occupiers include:


Stansted Airport Commercial Commentary

Both Uttlesford and East Hertfordshire District Councils are inthe process of undertaking employment land reviews which willinfluence the provision of employment land within the respectivelocal authorities’ emerging Local Development Framework.

Aside from the issues which arise from the somewhat arbitrarynature of the Local Authority boundary, which puts Bishop’sStortford and Stansted Airport in different county and districtjurisdictions, the question of the supply and location ofemployment land should, in our view, not be regarded as adistrict-wide issue, as employers tend to serve a much widercatchment area and are not restricted to drawing theiremployees from the immediate local district.

Indeed, employment land designations have significant impactsin relation to infrastructure, access and amenity, which tend tostretch beyond their immediate hinterland.

Notwithstanding this, however, it is worth noting that UttlesfordDistrict Council’s Employment Land Review, which waspublished and reported to members in August 2011, hasidentified a shortfall in employment land.

The consultants’ recommendations in relation to this matter aremost interesting in that they rightly observe that, despite there

being a shortage of employment land per se, the distinctionbetween ‘airport-related’ employment and non airport-relatedemployment is creating an artificial divide between what areeffectively two classes of the same use.

In our experience, the definition of employment-related use is fartoo narrowly drawn insofar as it relates only to those properties‘directly associated with the business of Stansted Airport’.

This would tend to exclude those companies whose locationchoices are driven by the proximity of the Airport, the use of theAirport for communication with their markets or indeed theother infrastructure benefits associated with the Airport, ie theM11 and the mainline rail link to central London.

It has been a long cherished view of Uttlesford District Council’smembership that the interests of avoiding an overspill betweenthe Airport and the countryside are best served by protectingthe Airport land for direct air-related employment.

In practice this has the opposite effect, as it tends to put pressureon employment-generating sites in the vicinity of the Airportwhich are not directly air-related, and indeed the DistrictCouncil’s own report identifies a shortfall, particularly of goodquality B8 warehousing in the vicinity of the Airport.

Air-related or just related to the airport?Under the auspices of the current planning legislation, local authorities are obliged to providea Local Development Framework which replaces the Local Plan, currently in force. Under theLocal Development Framework, the Local Authority is obliged to consider provision ofadequate land reserves for a range of functions which are considered to be desirable, amongstwhich is the provision of adequate employment land to meet the needs of the district.



Stansted Airport Commercial Commentary

The consultants’ recommendation is that this could be dealtwith by way of a temporary or partial relaxation of the airportuser restriction, thus allowing the 30 to 50 acres of potentialdevelopment land within the Airport boundary to be broughtforward for a more general commercial employment use andthus protecting other potential sites.

Whilst we are not expressing a view one way or the other onthis prospect, it seems to us that there must be some logic inthis approach.

Our primary reason for this is that the Airport and airlineindustry have evolved significantly from the model envisaged bythe planning authorities when planning consent was initiallygranted.

Stansted is essentially a low-cost airport, and as a consequencehas limited belly-hold cargo traffic (cargo traffic which iscontained within the belly-hold of passenger planes) and hasvirtually no requirement for in-flight catering.

In addition to this the whole concept of air-related activityaround ticketing, flight booking, customer service, etc, is, for allairlines, a thing of the past and this is particularly true ofStansted.

It is therefore reasonable to argue that the airport-relateddemand which was envisaged when Stansted was originallygranted its planning consent is never likely to materialise.

On the other side of the argument, it is reasonable, of course,to make provisions for changes in the nature of the Airport inthe future. However, with the Government having effectivelybarred the concept of a second runway for the foreseeablefuture, it seems to us that the risks in relation to the change ofthe nature of the Airport are slight, particularly when taken incomparison with the pressure on other greenfield sites. Aboveall, the pressure for coalescence around the motorway junctionand the Airport boundary occasioned by the acknowledged lackof alternative employment sites might make this policy a logicalone for the impartial observer.

To this, we believe, ought to be added the similar levels ofpressure in relation to employment land around EastHertfordshire, and in particular Bishop’s Stortford which is theprincipal town affected by the growth of Stansted Airport.

In our view, this is not a site-specific matter, but a general policyissue as to whether or not the employment needs of an areasuch as ours should be taken in the round and whetherconstructive and effective dialogue with Manchester AirportGroup may provide a way of protecting existing greenfield sitesfrom unwarranted development and avoiding the unfortunateconsequences of the current scenario, which sees sites whichare designated for employment purposes, albeit of a restrictednature, lying idle and offering no economic benefit to thecommunity to compensate for the potential blight caused by thecommercial designation of these sites.

We should stress that the views expressed above are personaland are intended to offer a perspective on the wider issuesaround economic development.

It remains to be seen what appetite for moving this debateforward emerges from the recent acquisition of Stansted byManchester Airport Group.

“To this, we believe, ought to be added thesimilar levels of pressure in relation to employmentland around East Hertfordshire, and in particularBishop’s Stortford which is the principal townaffected by the growth of Stansted Airport.”

To Let16,197 sq ft (1,505 sq m) cargo transit shed with airside

access with landside and airside forecourts.

Unit C2, Stansted Cargo Area, Stansted Airport

To LetWarehouse and distribution units from 12,300 to 24,600 sq ft. Ample car and vehicle parking. Also design-and-build site for

25,000 to 200,000 sq ft B1–B8.

Stansted 600, Stansted Airport

To LetGrade A specification ‘Air-Related’ offices to let from

4,000 sq ft to 16,000 sq ft

Endeavour House, Stansted Airport



Due to the increased number of property transactions in the Harlow, Ware and Hertfordareas in 2012, Coke Gearing opened its Harlow office in September. The office provides uswith a base from which to better serve Harlow and its surrounding markets: we have alreadyseen the benefits and continue to grow our market share.

Dealing with mainly agency instructions of leasing, sales andinvestment sales of industrial stock, we are keen to grow ourmarket share in the other markets of offices and retail properties.

Despite all the doom and gloom in the market, we haveexperienced continued success with lettings and sales, the mostbuoyant of the sectors being the smaller industrial/warehouseunits of up to 7,500 sq ft. Transactions in 2012 included twoinvestment sales on the Moat House Estate and one new letting(all units being around 1,500 sq ft), a sale to an owner occupierof a 12,500 sq ft unit in Horsecroft Place and a new letting withan option to purchase to an electrical contractor firm in aneighbouring property.

Other transactions include acting on behalf of TevaPharmaceuticals in acquiring 12,500 sq ft of offices in Field Houseand advice to clients on the acquisition of the 7 acre PitneyBowes site for redevelopment.

Harlow certainly ticks all the boxes when it comes to operatinga business from this location. Research by Experian has shownthe Essex town had the biggest business growth rates betweenJuly 2010 and February 2012. In that time the number ofbusinesses grew by 478, the 6.2% average yearly increase beingthe highest in the UK. Harlow also saw a 23.5% increase in thenumber of business start-ups.

The broad range of accommodation Harlow offers is appealingto all sizes and types of business operations, from the older,cheaper 1950s stock up to newer '00's properties offeringmodern, smart space for established high-tech and growingbusinesses. Harlow is also well placed geographically, withestablished infrastructure offering good access to the M11, M25,Stansted Airport and central London, both by road and rail. In2011, Harlow was granted Enterprise Zone status. The 51 hectarezone comprises two sites, 23 hectares at London Road

We’re getting bigger to serve you better!

Adam Tindall [email protected]

n COKE GEARING’S IMPRESSIVE NEW HARLOW OFFICES

“Coke Gearing is very positive aboutbusiness growth in Harlow and working todevelop our Harlow team. As well as sales andlettings in all sectors of commercial property,we offer a wide variety of services.”

Harlow Commercial Commentary

(comprising the former Nortel campus to the south and a 14 hectaregreenfield site to the north) and 28 hectares at Templefields NorthEast. Benefits of the zone include a 100% business rate discount,worth up to £275,000 over a five-year period, radically simplifiedplanning approaches in the zone and the installation of superfastbroadband.

Coke Gearing is very positive about business growth in Harlow andworking to develop our Harlow team. As well as sales and lettings inall sectors of commercial property, we offer a wide variety of services:as RICS Registered Valuers we can provide ‘red book’ valuations forpension fund, bank security and probate purposes, as well as rentalvaluations for business sales and other types of valuations.Additionally we offer development, investment and acquisition adviceand have also been successful with rating appeals in the area.

If you would like to discuss your commercial property needs pleasecontact Adam Tindall MRICS.



To Let4,931 sq ft warehouse/industrial unit on established estate

with circa seven parking spaces.

Units 5 & 6 Italstyle, Harlow

Retail Space To Let2,000-5,000 sq ft ground floor retail space.

New development with prominent road frontage.

Joseph Rank House, Harlow

For Sale770 sq ft industrial/business unit,

with planning permission to extend.

3 Sarbir Business Park, Harlow

To Let 2,333 sq ft warehouse/industrial unit.

Four allocated parking spaces with option to lease more.

Unit 8 Italstyle Buildings, Harlow

To LetSmall starter industrial units, flexible terms,

242 sq ft, 447 sq ft and 982 sq ft.

Harlow Business Centre, Harlow

To Let2,368 sq ft industrial/warehouse unit

on popular estate with parking.

Moat House, Harlow

On the market Harlow www.cokegearing.co.uk


Hadleigh Road, Ipswich, Suffolk

On the market Ipswich

For SaleCleared site of 10 acres of residential-led development land for mixed-use scheme off Hadleigh Road, Ipswich.

Futura Park, Ipswich

For Sale/To Let25 acres of premium location employment land – B1/B2/B8 outline consent granted.

Offering freehold or leasehold occupation subject to covenant.


www.futura-park.com


2012 Highlights www.cokegearing.co.uk

n AquiGen Real Estate Solutionsn BAAn Churchill Retirement Livingn Countryside Propertiesn Handelsbankenn Henderson UK Property Fundn Hutton Construction Ltdn Industrial Property Investment Fund (IPIF)n Legal & General n M & D Developments Ltdn Marshgate Developments Ltdn Nockolds Solicitorsn Pellys RJP Solicitorsn Portland Place Plcn Ropemaker Propertiesn SEGROn Tees Solicitorsn Threadneedle Asset Managementn Weston Homes

Acquisition of former Pearsons department store in Bishop’s Stortford

for developer clients.

Negotiated lease terms on all six non-retail units on this prestigious new site opposite Waitrose and John Lewis at home.

Bishop’s Stortford

Companies we have worked with

Futura Park, Ipswich

Stansted Distribution Centre

Skyline 120, Braintree

Freehold investment acquired on behalf ofRopemaker Properties from Irelandia Investments

for circa £11 million.

Acting as joint agents in respect of the East ofEngland Ambulance Service’s new regional

headquarters for their Hazardous Area ResponseTeam (HART) - currently under construction -following the earlier acquisition of Coopers of

Stortford’s new warehouse facility.


COMMERCIAL PROPERTY SPECIALISTS

We are an independent practice of Chartered Surveyorswith 40 years’ experience in the field, and we offer a fullcomplement of agency and professional services including:

n INVESTMENTS

n VALUATIONS

n SURVEYING

n LANDLORD AND TENANT

n PLANNING ADVICE

n DEVELOPMENT

n SALES AND LETTINGS

n MANAGEMENT

n BUILDING CONSULTANCY

Bishop’s Stortford Head Office100 South Street, Bishop's Stortford, Herts CM23 3BG

01279 758758

Harlow OfficeSuite 128, Greenway Business CentreHarlow Business Park, Harlow, Essex CM19 5QE

01279 758758

A digital version of this publication can be downloaded at:


Richard Coke FRICS [email protected]

Richard is a FRICS Surveyor with over 30 years’ experience in propertydevelopment and occupier advicethroughout Eastern England. Please callfor an informal consultation in respect ofany property problem.

Adam Tindall [email protected]

Adam has been with CokeGearing since 2008 specialisingin industrial, office and retailagency; he is MRICS and aRegistered Valuer.

Kim Davison [email protected]

Kim’s role encompasses managing theoffice, PA/secretarial support andmarketing and business development.

Louise [email protected]

Louise is a commercial surveyor whojoined the team in April 2012. Shedeals with both professional andagency work, in particular the retailand office markets.

Sarah [email protected]

Sarah is responsible for finance andsuppliers and is Company Secretary.

Meet our Team

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Due to our continued development, we are activelylooking to recruit and for new business opportunities.If you would like find out more about us, have a lookat our website or contact Richard Coke for a chat.


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