Eastleigh Works

Site Area: Approx. 50 Acres
Lettable Area / Units: 500,000 sq ft of industrial space plus 15 acres of let open storage land
Client: Corporate Pension Fund Clients of Savills Investment Management

A strategically located existing employment site adjacent to Southampton Airport, The M3 and the M27 purchased on market in January 2018 with a strategy to consolidate the activity of the main rail related operational tenant (c. 85% of income) and maximise returns from the surplus land through a mixture of refurbishment and redevelopment.

At purchase, the Estate was let on multiple internal repairing and inclusive rent leases, with a full time on site management team and considerable non recoverable cost leakage. The main tenant – a rail fleet maintenance business enjoying direct connection onto the rail network from the site – occupied +75% of the site area but on a piecemeal basis. Over time, we separated, repaired and rationalised their occupation to clearly demarcate their demise allowing them to occupy their space (land and buildings) on a regeared, single lease, exclusive rent, FRI basis. That separation enabled the remainder of the estate to be more effectively asset managed and master planned to include the demolition and mothballing of a number of redundant and low value buildings with planning consent secured for 25,000 sq ft of new industrial space in 3 units plus 8 acres of open storage divided into serviced and secure plots. The development works were undertaken on a predominantly speculative basis with works completing during Q4 2024. The majority of the developed space has been let or is under offer at rental values that exceed the business plan underwrite.

By simplifying and rationalising the asset, we have created a more institutional product with the majority of the space let on an FRI basis with no requirement for a dedicated on site management team. The rail fleet maintenance tenant remains dominant both in terms of rent and scale but overall site income has grown since acquisition with very limited non recoverable cost leakage and a far greater degree of tenant diversification. The site remains a longer term strategic land play given its scale, rail connection and location.

eastleigh-works.co.uk

AJW Aviation Headquarters, Horsham

Site Area: Approx. 60 acres
Lettable Area / Units: 125,000 sq ft high office content warehouse
Client: AJW Aviation

We acquired the 60 acres of former BASF site Horsham and sold the first building of 125,000 sq ft to AJW Aviaition as their global HQ. Other existing buildings were modified and or extended and sold to owner occupiers. The remaining 4 acres were developed for residential.

Mowlem Trading Estate, Tottenham

Site Area: Approx. 10 acres
Lettable Area / Units: 17 high specification trader counter and logistics units totalling 211,250 sq ft.
Client: Corporate Pension Fund Clients of Savills Investment Management

This project involved the modernisation and remodelling of a fully operational 1970’s multi-let industrial estate involving careful negotiation with both existing and new tenants, together with the procurement of redevelopment and refurbishment packages in 3 phases between 2016 and 2020 to deliver 226,000 sq ft of multi-let industrial space.  The estates’ development and subsequent sale is heralded as one of the most successful redevelopment projects in the Greater London urban logistics market in the last 5 years generating significant capital value and income return performance upside.

The Pension Fund had purchased this ownership in 2 tranches prior to our involvement. The ownership comprised two multi-let terraces of industrial units (dating from 1970’s) let to a variety of national and local tenants including Plumb Centre and Greenham Trading/Bunzl plus an unconnected but neighbouring piece of land (known as the “front land”) let on an open storage basis to 3 tenants including Travis Perkins. Both ownership elements had been acquired by the Pension Fund for income but offered an interesting development/remodelling opportunity with potential for both rental and capital growth. We were asked to provide a strategy to join the ownerships and remodel the Estate ahead of a looming 2013 lease expiry block date.

We masterplanned the combined ownerships and tabled a strategy to remodel the estate in 3 phases with planning navigated and secured over time. Vacant possession to unlock the remodelling concept was a large part of our initial role. Some of the existing tenants enjoyed 1954 Act protection which we managed working with the Pension Fund’s legal and professional advisers. Some of the existing tenants agreed to relocate within the Estate to new units as they were created, always conditional upon continuity of trading.

Development kicked off with the front land and the demolition of part of the terraced element of the estate to allow the relocation of Travis Perkins and the speculative development of 4 new units totalling 60,000 sq ft. Works completed in February 2016 with all units let within 3 months of PC.

Whilst Phase 1 works were underway, plans to reconfigure the remainder of the estate which was largely let on short term leases were progressed. Consent was secured to demolish the 10 units comprising the middle terrace including those occupied by Bunzl. We agreed terms to relocate Bunzl from 5 units in the old terrace layout to a new single 34,000 sq ft unit. Their relocation unlocked the ability to develop 6 additional speculative units totalling 70,000 sq ft and ranging in size from 4,500 sq ft to 7,600 sq ft. The second phase of works achieved full occupancy in January 2021 with 70% of the development pre-let prior to completion.

The final phase of works to the rear terrace were recommended ahead of the middle terrace works completing buoyed by positive pre-letting discussions with both existing and new tenants. The Phase 3 works differed from Phases 1 and 2. The rear terrace maintained its configuration but the units were taken back to their frames and reclad and reroofed rather than redeveloped. The rear terrace units were made to look and feel like the units created in Phases 1 and 2 so that the presentation of all units across the estate was consistent.

Part of the rear terrace retrofit (25,400 sq ft) was undertaken on a pre-let basis with the balance of the rear terrace works creating a further 8 units totalling 57,100 sq ft on a speculative basis. This final phase of works achieved practical completion in August 2020 with 80% of the space pre-let prior to completion.

Throughout the project, we worked around existing tenants to maintain an element of income for the Pension Fund often relocating tenants on site to enable the wider masterplan to come to fruition. All lettings exceeded underwrite assumptions and shortly after the final phase of works were completed, the Pension Fund sold the Estate (Q3 2021) for a price exceeding £125 million. Rental tone had grown from £9.50 per sq ft when the strategy was conceived to £19.50 per sq ft.

Chiltonian Industrial Estate, Lewisham

Site Area: Approx. 6.1 acres
Lettable Area / Units: 26 high specification trade counter and logistics units totalling 108,200 sq ft
Client: Corporate Pension Fund Clients of Savills Investment Management

The Pension Fund had purchased this ownership in 2 tranches prior to our involvement. The ownership comprised two multi-let terraces of industrial units with units 1-18 purchased as a standing investment and dating from 1970’s and units 19-30 speculatively developed in 2000 on land that the Pension Fund subsequently purchased. The Estate was let to a variety of national and local tenants. In 2015, we were invited to provide a strategy to revitalise the Estate with concerns that the original units were becoming obsolete. The Asset was fully let with an ERV tone of £9.00 per sq ft and so the strategy needed to be worked around existing tenants and a mixed bag of lease expiry profiles including some 1954 Act protected leases.

We devised a scheme and secured a planning consent to part redevelop and part retrofit the Estate and embarked on a series of negotiations with existing tenants to regear and/or relocate where vacant possession could not be secured. The first phase of works saw the demolition of 10 of the original units (typically small and poorly configured with compromised yards) to be replaced with 6 larger units (totalling 31,500 sq ft) reorientated in a more open layout with delivery in phases linked to vacant possession. The balance of the Estate – a mixture of older and newer space comprising 76,700 sq ft in 19 units – was reclad, repainted, re-roofed and realigned with yards resurfaced and new loading doors installed throughout. These retrofit works were carried out by agreement with existing tenants whilst they remained in occupation and delivered a uniformity that matched the look and feel of the newly developed units. The phasing of works around tenants in occupation was challenging but the Estate did not have to close for trading at any point whilst works were ongoing.

Physical works commencing in 2017 and completed in January 2019. The majority of the Estate was pre-let on works completion and we were able to attract a number of new national trade counter brands including Screwfix, Toolstation and Howden. During the course of the project, Estate ERV doubled to £18.50 per sq ft with no discernible discount for unit location or age.

Bourn Quarter ( Phases 1 & 2 )

Site Area: Approx. 25 Acres
Lettable Area / Units: 24 high specification mid-tech/industrial units totalling 310,000 sq ft.
Client: Corporate Pension Fund Clients of Savills Investment Management

This 25 acre cleared site with allocation for employment uses introduced and purchased off market in January 2018. We were retained to masterplan, design and promote the site through the local planning system and to oversee the site’s development and leasing up in 2 phases on a part pre-let/part speculative basis. The first phase of works (160,000 sq ft in 15 units ranging in size from 1,400 sq ft – 56,000 sq ft) completed during Q3 2022 and has subsequently achieved 100% occupancy; the second phase (150,000 sq ft in 9 units ranging in size from 7,700 sq ft to 28,810 sq ft) is due to complete during Q1 2025.

This £100m+ campus style development located 6 miles to the west of Cambridge has led the way both in in terms of building design and placemaking targeting  for tech-based companies seeking a mixture of office, R & D and production space. The project has been delivered in 2 phases on a predominantly speculative basis – the first phase (155,000 sq ft in 15 units) completed in 2022 and is fully let; the second phase (150,000 sq ft in 9 units) completed during Q1 2025.  Bourn Quarter was designed to deliver a highly flexible, efficient, and sustainable outcome achieving EPC A, BREEAM Excellent and targeting operational net zero.  It is widely recognized as the model best in class mid-tech campus development in the Cambridge market and beyond.

Bourn Quarter has been designed without compromise to be one of the most efficient and sustainable developments in the country – BREEAM Excellent, EPC A Rating and incorporating the principles of the Well Building standard. The specification goes far beyond what is required by the planning authority and is targeting Net Zero Carbon in operation with all tenants committing to “Green leases”. The campus offers unrivalled, best in class space designed to suite a range of end users. It is our most progressive development to date in terms of complexity of sustainable design, scale, delivery and leasing outcome.

bourn-quarter.com

Parkers Trade Park (Phase 2), Petersfield

Site Area: Approx. 1 acre
Lettable Area / Units: 3 high specification trade counter units totalling 12,750 sq ft
Client: Wynnstay Properties Limited

We developed a terrace of 3 units, of 4,500 sq ft which was pre-let to Screwfix, 3,750 sq ft was pre-let to Tool Station and the third unit of 4,500 was let at PC to Easy Bathrooms. The development, known as Phase Two, Parkers Trade Park, is adjacent to other trade counter occupiers such as Howdens, City Plumbing, The Facia Place and Travis Perkins. The site is within the main commercial area of the town close to the junction of the A3 and the A272. Amiri Construction were the contractors.

Eastbourne

Site Area: Approx. 5 Acres
Lettable Area / Units: 100,000 sq ft
Client: Funded In house

Aitchison Developments completed the purchase of this 4.7 Acre site in 2021 and has since been undertaking the necessary surveys and design work to promote the site through the local plan with neighbouring landowners – Compton Estates. Located adjacent to Hammond’s Drive Industrial Park on Lottbridge Drove, a key route to the Southeast of Eastbourne and a fantastic location for local and national businesses alike the site, together with adjoining land, could potentially provide up to 250,000 sq ft of much needed emplyment space within the Borough. Having successfully had the site included with the draft Regulation 18 Local Plan as an employment allocation we decided to sell to the adjoining landowner who are locally based and better able to deal with the complexities of dealing with local interest groups as well as statutory bodies on the journey to securing full planning permission.

Hayes Lane, Slinfold, Horsham

Site Area: Approx. 3.5 Acres
Lettable Area / Units: Residential
Client: Funded in house

A direct development of part of the 60 acre former Flint works close to Horsham. This part of the site initially wasn’t considered as a suitable site for housing development but by working closely with the community and Parish Council, planning permission was obtained for 23 houses. The site was sold to A2Dominion. As part of the development a new football pitch and tennis pavilion were constucted for the village.