аЯрЁБс>ўџ EGўџџџDџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅСБ@ №ПЙ#jbjb˜ ˜ %VђhђhЙџџџџџџl^^^^^^^ЪЪЪЪЪ жЪџ цўМ О О О О О О ,х tъ ^ъ j^^ўjjjB^^М jr,ž,^^^^М j&j ^^ ђ њ!ЙЮЪЪD&  ,џ џ  yjy jУх Mark Smulian Back to articles • Back to home page

 
Land of opportunity
Estates Gazette – 19 October 2013

Can the north east’s recently established, occupier-focussed enterprise zones bring the regeneration to the area that the government is hoping for? And what will the impact be on the local property industry? Mark Smulian reports

It’s a long journey from an economy dependent upon coal, steel and shipbuilding to one based on low carbon technologies, windpower and advanced engineering.

North east England’s old economy has left an array of brownfield sites but, until recently, little to put on them since interest from speculative developers was minimal.

To try to stimulate growth, the Government designated enterprise zones in 2011 in the A19 corridor from Sunderland to Blyth via Tyneside, and at Teesside.

These offer either reduced business rates or capital allowances to companies that locate there and, unlike their predecessors in the previous two decades, this generation of enterprise zones is aimed squarely at occupiers.

Each site offers one or other benefit, not the blanket concessions to developers seen in the earlier zones.

The Government is interested in attracting the renewable energy and low carbon manufacturing industries here with the hope that an eventual clustering effect in these fields and their supply chains will spill over into development in adjacent areas.

Nobody will object to speculative factories or offices, but these new zones are not setting out to attract them, and design-and-build at present holds sway.

Development is happening but, unlike the previous enterprise zone free-for-alls, the largest projects so far are only marginally linked to the proffered incentives.

The local property industry can see something beneficial being created for the long term, but without as yet being very central to it.

Sanderson Weatherall partner Robert Patterson says the zones “just haven’t got the same kickers as the old enterprise zones, they are now more occupier focussed and not concerned with tax incentives for development, so its had a rather minimal effect on the market elsewhere in the region, but it may have a clustering effect in a recovering market”. .

Ian Parker, a partner at GVA, says: “It will be project led and I doubt there will be much speculative building.

“People will want a pre-let, but if confidence grows it may kick off more as there is an acute shortage of large industrial buildings in the area.”

Kevan Carrick, a partner at JK Property Consultants, agrees: “It is not sucking in development that would have located elsewhere because the zones are very specialised and very carefully chosen to create clusters. .

As to the lack of speculative building, Curran says: “There will not be any because its all very specialised and occupiers want buildings that are pretty much skins round their production processes.”

Edward Symmons partner Bill Lynn says: “The government has learnt from its past errors with these new zones and they’re addressed to occupiers who know where they want to go anyway.

“I think we will ultimately see clusters in the surrounding areas, but at the moment adjacent land values are not really rising.”

Stephen Catchpole, chief executive of the Tees Valley Unlimited local enterprise partnership, says he expects the area to eventually see “a mix of speculative building and design-and-build, as the bigger firms want their own buildings, but start-ups need general space.

“It won’t happen overnight but you’ll start to see clustering of industries in and around the zones.”

So far the demand in these two zones has been for highly specialised accommodation. But if the clustering does come, it should encourage speculative building around the zones as the region’s economy begins to take off.

Infrastructure, not enterprise: does the North East need the zones?

Teesside enterprise zone’s largest occupier to date is Air Products, which is building what it claims will be the world’s largest renewable energy plant at the Reclamation Pond site, capable of providing electricity for up to 50,000 homes.

The zone’s incentives were though not part of its choice of location, as an Air Products spokesman explains.

“Tees Valley was chosen as an enterprise zone after Air Products took the decision to build our advanced gasification energy-from-waste facility in Billingham, so it was not a specific factor in our decision,” he says.

Air Products chose Teesside because of its “available industrial zoned land, good access to electrical infrastructure, and excellent road links,” he adds.

Vantec is the major investor so far attracted by to the A19 zone, having taken a 44,000 sqft site at Sunderland adjacent to the Nissan car plant. It was though the presence of Nissan, rather then the existence of the zone, which determined this.

“The actual reason we chose the site was simply because it’s so close to our main customer, Nissan, not necessarily the benefits of the enterprise zone,” a spokeswoman says.

Jason Stowe is managing director of Wilton Developments, which owns the site Vantec will occupy as part of the Turbine Business Park, created adjacent to Nissan’s site on land the carmaker had surplus.

“It’s the right location for people who are suppliers to the automotive industry rather than attracting people in from any other location,” Stowe says.

“There is a potential for a clustering effect there as Nissan is the largest car plant in the UK and it’s a huge advantage having a supply chain close by.” Wilton has 20 acres left on the park with planning permission for offices and manufacturing sites of up to 80,000 sqft.

“The enterprise zone is good because it does give more marketing clout to the area, so it’s doing its job.”

Swan Hunter

The former Swan Hunter shipyard at Wallsend falls into the North Bank of the Tyne section of the A19 enterprise zone and is about to be redeveloped by Kier Properties as an advanced manufacturing centre.

Its plan for the 34-acre site is to provide up to 500,000 sqft of developed space for the offshore, engineering and manufacturing industries.

Kier has secured Ѓ13.6m of funding for the project from the European Regional Development Fund, the Homes and Communities Agency, and the Local Enterprise Partnership Growing Places Fund.

The site lies five miles from both Newcastle city centre and the mouth of the Tyne.

Associate director Mark Robinson says: “The new development will be of particular interest to advanced manufacturing companies that specialise in off-shore activity due to the great location of the site and purpose-built high-spec units.”

He says enterprise zone status “is a sign of public sector commitment to its regeneration,” and the site will enjoy business rate relief.

Robinson adds: “The fundamentals of the site are very strong. It’s a prime location for advanced manufacturing occupiers and the market is already responding positively.”

мяnŸ  їeiжкЕЙКTXYUпl p ,!0!„!ˆ!w"{"# # #И#Й#§ђ§хрхбхбхбхбЪрЪхбхбхбхбхбхбхбхбхСCJOJQJmH  B*PJphB*CJOJPJQJmH ph B*phB*CJOJQJmH phB*CJOJQJphPJ"YvwПРСТбвгQ€ˆ’—˜клмѕіў@A§§§§§§§§§§§§§§§§§§§§§§§§§§§§§YvwПРСТбвгQ€ˆ’—˜клмѕіў@Aop] ^ џ ­ L / Ÿ  >чrжKуОŠDЪмF%&'vjлКYыSгo ‡їјљпq 1!‰!|" #Й#§§§§§§§§§§§§§§§§§§§§§§§§§§§§§ћћMAop] ^ џ ­ L / Ÿ  >чrжKуОŠDЪмF%&'vj맧§§§§§§§ћ§§§§§§§§§§§§§§§§§§лКYыSгo ‡їјљпq 1!‰!|" #Й#їяээээээээээээїїїїїї1$7$8$H$1$7$8$H$#0PАа/ Ар=!А"А# $ %А i4@ёџ4NormalCJOJPJQJmH €€ Heading 1=$1$7$8$@&H$ Ц& 0`Р№ P€Ар@B*CJOJPJQJmH phHH Heading 2$1$7$8$@&H$CJOJPJQJ<A@ђџЁ<Default Paragraph FontJB@ђJ Body TextЄ1$7$8$H$5CJ,OJPJQJ:P@: Body Text 2CJOJQJmH €Q€ Body Text 371$7$8$H$ Ц& 0`Р№ P€Ар@ 5B*CJOJPJQJmH ph(U@Ђ!( Hyperlink>*B*Lўёџ2LDefault1$7$8$H$B*CJOJPJQJmH ph:ў12:22 - Body Text B*phџ4Z`R4 Plain Text OJQJmH ЙVџџџџ!џџ z™ џџ z™ џџ z™ џџ z™џŠ ЙЎКЮЙ#&AлЙ#')*Й#(ЙCJ‡пцшёѓјŒ“•ЄЋ­ЖИНёѓ #зр#(| † у ш ‘ ˜ oyY_БЕRX}2:Л  HJZ\‰Š“•BCx‚‘–ќ§џ ЊЋIJ,-œš›;<фхo p б г H I З К Л М ABйк"#()ghийЗИVWЌЕPQабlm„…њћмнno./†‡Л:::::::::::::::::::::::::::::::::::::::::::::џџmark0Macintosh HD:Users:marksmulian:Desktop:Document1Julia Manninen0Macintosh HD:Users:marksmulian:Desktop:Document1Julia Manninen=Macintosh HD:Documents:Work file:Website:arts11:egneez13.htmlJulia Manninen=Macintosh HD:Documents:Work file:Website:arts11:egneez13.htmlr ХђИЛ).).).).џ@€ИИАBхžžИИy@ЙP @GTimes New Roman5€Symbol3 Arial3TimesuMTimesNewRomanPS-BoldMTTimes New RomanM M Arial-BoldMTArial7Courier qˆ№аhС›ЧёЫ'œб& L‚ 4$№ЅРДД€>0dpY@№џџLand of opportunitymarkJulia Manninenўџ р…ŸђљOhЋ‘+'Гй0|˜ДРамь  , 8 D P\dlt'Land of opportunityandmarkof arkNormal Julia Manninenn3liMicrosoft Word 10.1@vнA@D%RzЩ@žІмЬЮ@~ŒлѕщЮL‚ўџ еЭеœ.“—+,љЎ0ш `hpx€ ˆ˜  Ј Ш'4 r Land of opportunity Title  !"#$%&'()*+ўџџџ-./0123ўџџџ56789:;ўџџџ=>?@ABCўџџџ§џџџFўџџџўџџџўџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџRoot Entryџџџџџџџџ РFЙфуѕщЮH€1Tableџџџџџџџџ,WordDocumentџџџџџџџџ%VSummaryInformation(џџџџ4DocumentSummaryInformation8џџџџџџџџџџџџ<CompObjџџџџџџџџџџџџXџџџџџџџџџџџџџџџџџџџџџџџџўџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџўџџџџџ РFMicrosoft Word DocumentўџџџNB6WWord.Document.8