South Coast Central Issue 37 April 2018
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The Standard Life Investments

Heritage with Profits Fund has

secured three lettings for Fareham

Industrial Park, totalling over

80,000

sq.ft.

making the

450,000

sq.ft.

scheme fully let.

Armorgard, a leading manufacturer

of secure storage for tools and

equipment, has taken 60,000

sq.ft,

whilst HRP Limited has taken

5,500

sq.ft,

both on ten year leases.

Completing the trio of lettings,

refrigeration and air conditioning

distributer Kooltech has relocated

on the estate taking a 15,000

sq.ft.

unit on a ten year lease. The Fund

was jointly advised by Hellier

Langston and Hughes Ellard.

As one park becomes fully

let another opens. Merlin Park,

Portsmouth, the areas’ largest

speculative development for a

decade, is nearing completion.

The 6.5 acre site features

100,000

sq.ft.

of space in seven

units for business, industrial and

warehouse uses and will be the

home of Hampshire Constabulary’s

new Eastern Police Investigation

Centre. Joint agents on the

scheme are Lambert Smith

Hampton & CBRE.

5

Commercial Property Register

April – September 2018

www.compropregister.com

7

NEWS

MARKET DUE FOR

defence boost

One door closes

ANOTHER OPENS

HMS Dauntless, Portsmouth

An analysis from JLL of global trends in the real estate industry

highlights the substantial changes that are taking place.

In particular, the demand for flexible working space is increasing, together

with what JLL calls a more dynamic workforce combined with greater focus

on employee performance and wellbeing.

At the heart of the faster market is the need to compete and be innovative

in terms of embracing technology in a digital age. This has to mean a

different set of priorities for developers and planners in providing the

structures to suit the new conditions.

Growing pressure to increase

defence spending in the face of

Russian belligerence and conflicts

in the Middle East will have an

impact in the region.

Apart from the Portsmouth Royal

Navy base, there is a substantial

defence related business sector

catering for all defence but especially

strong in the marine sector.

However, the Ministry of Defence

budget is under pressure so there

should be no surprise that the MOD

is seeking to both save money and

raise funds, mainly from property

sales. Here, Lambert Smith Hampton

(LSH) is using its online auction

system to sell MOD property.

Oliver Childs of LSH said: “We

have been pioneers of the online

auction over the past two years and

have developed a track record for

success having sold a wide variety

of property in the UK”.

The potential for development

of MOD assets is illustrated by

the schemes at Daedalus, Solent

Airport.

The importance of the region’s

economy is well recognised and

has produced new investment in

transport links. One key junction

which is to be upgraded Is the

A34/M3 junction, which is heavily

used by vehicles moving between

Southampton docks and the Midlands.

Mike Short, Chair of the M3 Local

Enterprise Partnership, said: “The

improvements to Junction 9 are

critical to the strategic corridor that

runs all the way from the Port of

Southampton to the Midlands and

North which will help rebalance

the national economy”.

Another road upgrade in the

region is at the heavily used A31

at Ringwood.

An indication of the buoyancy of

the South Coast market is provided

by the industrial sector where

demand has been so strong,

said Lambert Smith Hampton’s

Adrian Whitfield. However, 2018

will be a key year as increased

supply kicks in although so far this

year Whitfield has seen a 15% rise

in enquiries, which supports his

prediction that rents will move

above £107.60 sq.metre

(£10

sq.ft.

) for mid box properties

of 2,788 to 4,647 sq.metres

(30,000-50,000

sq.ft

.).

Interestingly, increased demand

for mid sized units rather than

smaller properties indicates

greater corporate long term

confidence as well as a shortage

of smaller properties.

One intriguing aspect of

Southampton is that people in

the city are prepared to take the

most risk when investing for the

future, according to a study by

Moneybox, followed by Edinburgh

and, surprisingly, Sunderland in

third place.

FAST PACE OF

change

IN BRIEF

The

mixed use development of the former Bargate Shopping Centre

(which will also open up hidden areas of the city’s medieval walls) will

move ahead with the start of demolition of the old area. It closed

because of the changing landscape of the business district, said

Southampton Council.