We were appointed by MEPC to provide the strategic asset management and development management for Birchwood Park , Warrington. The property covers over 123 acres, with potential for 1.8millionsq ft and is well located close to junction 11 of the M62 and junction 21 of the M6.
MEPC purchased their first interests in the Park during 1998. The site was previously owned by AEAT plc and consisted of some 500,000 sq ft of un - refurbished 1960's office buildings, a large canteen facility, some very specialist industrial and R & D facilities used by the nuclear power generating industry, and 30 acres of challenging brownfield land.
Whilst formulating their strategy for this hugely complex asset, MEPC realised that a local management team was needed with the wide range of skills and experience necessary to move all aspects of the asset forward at the same time. Despite having huge long term potential, the site faced some real short term challenges which needed to be addressed quickly if that potential was ever to be realised.
Our activities were focused into six main areas, outlined briefly below.
1. Maximise Income
- Identify which buildings could be reconfigured and held as medium/long term income producers.
- Re-gear leases with existing occupiers wherever possible.
- Refurbish void space in sensible segments in order to re- let it quickly.
- Re-negotiate existing contracts in order to reduce and rationalise service costs.
- Diversify product offer to widen tenant mix and create income resilience.
- Reduce reliance on a small number of large occupiers on short leases.
2. Manage Effectively
- Build positive relationships with our customers.
- Mould a largely outsourced resource into one ‘team' with a common purpose.
- Identify and motivate the key individuals to work harder by creating loyalty and rewarding success.
- Review all legal documentation and create standard documents.
- Review and resolve all outstanding title matters and keep documentation in a Ready For Sale state.
3. Create a deliverable Masterplan
- Identify the maximum site value to be realistically generated.
- Identify main site constraints and develop strategies to deal with them.
- Identify the infrastructure works necessary to deliver the development programme.
- Create short term planning framework to allow immediate new development.
- Obtain an Outline Consent and Development Brief to secure long term development plans.
- Undertake further strategic purchases to compliment existing holdings.
- Work in partnership with the Local Authority and the local community in order that the business plan can be delivered.
4. Develop New Buildings
- Create a high quality product and bring it to market quickly.
- Generate a momentum and maintain it to deter rivals and control supply.
- Go for quality to counter the affect of some poor existing buildings and decouple rents from the local market.
- Deliver the infrastructure works and services needed for a large site.
- Invest in the restaurant and catering facilities.
- Create other on site amenities.
- Create a deliverable travel plan to cater for new occupiers.
5. Effective Marketing
- Rationalise and simplify the sales message.
- Create a brand which the market could understand and easily respond to.
- Become the dominant provider of space in the local area.
- Compete at a Regional level for high quality footloose occupiers.
- Become a destination of choice over a period of time.
- Become ‘Best in Class' in order that a premium rental could be achieved.
6. Build Investor Confidence
- Create a sustainable long term business plan.
- Stabilise income streams.
- Diversify product offer to reduce risk.
- Improve product quality.
- Improve net income.
- Increase capital values.
The Results
This was a great opportunity for us to demonstrate the full range of our skills, from understanding and tackling day to day property management issues and undertaking complicated refurbishments to negotiating one of the largest planning consents in the region at the time, and delivering award winning new build Grade A office space which is now widely regarded as the best example of business park space in the North.
Our remit was to take an eclectic and difficult mix of land and buildings and turn it into a rational and cohesive Business Park. We like to think that we achieved that aim.
- 27,780 sq m (300,000 sq ft) of new Grade A Office space constructed
- 18,580 sq m (200,000 sq ft) of new industrial space constructed
- New gym constructed
- New lake constructed
- Electrical infrastructure upgraded and power supply secured for future development
- New roundabout and new main access created
- A further 40 acres containing 40,000 sq m (430,000 sq ft) purchased
- 37,160 sq m (400,000 sq ft) of Office space refurbished
- Outline consent for 98,000 sq m (1,054,000 sq ft) negotiated
- Detailed consents for 50,000 sq m (500,000 sq ft) obtained
- Total potential of 167,224 sq m (1,800,000 sq ft) created
- Value movement from £23m to c £150m
- Income movement from £1.5m to £8m pa
- Major pre lettings to Vodafone, Dept of Work & Pensions, Atkins and Amec
- Well over 120 new businesses attracted to the park
- Bridgewater Place scheme won BCO award for best commercial workspace (North Region)
- Travel Plan introduced which became a ‘best practice' example throughout UK
- One of the best performing assets in the Hermes portfolio 2005/2006
