Leeds’ Elbow Rooms sold for £4m
A joint venture between funds managed by Europa Capital and Addington Capital, the property and investment asset management specialist, has sold the Elbow Rooms, 64-68 Call Lane, Leeds for £4 million.
The building, which was once one of Leeds’ most popular nightclubs, has been sold to the private investment vehicle of a high-net-worth investor.
The joint venture partnership acquired the 24,000 sq ft property out of receivership in 2016 and Addington has since been asset managing the property. It obtained consent for a change of use to offices and refurbished the second and third floors whilst retaining the locally well-known Elbow Rooms branding.
The basement, ground floor and first floor are now let to Revolution de Cuba, the popular Cuban tapas cocktail bar. The third floor (4,500 sq ft) is fully let to Parallax, a fast-growing digital agency headquartered in Leeds. Last year North Property Group took 2,100 sq ft of office space on the 2nd floor on a 5-year lease at £25 per sq ft. A remaining 2,100 sq ft of space is still available to let via agents Carter Towler.
Matthew Allen, principal at Addington Capital, said: ”Once stripped back, the characterful upper floors at the Elbow Rooms has enabled us to design and deliver much-in-demand creative and modern office accommodation in the lively heart of the city. Leeds has a growing innovative and enterprising local economy, and we are delighted to have harnessed this demand to attract a vibrant array of tenants and now a buyer for the building.”
Cushman & Wakefield advised the vendors.
Plans unveiled to bring landmark Hull building back to life
Developer Wykeland Group has unveiled plans to bring the landmark former Burton building in the heart of Hull back to life.
The building, on the corner of Whitefriargate, close to Queen Victoria Square, has been vacant since the fashion store closed its doors after owner Arcadia went into administration in 2020.
It was purpose-built as a fashionable men’s tailor shop in 1936 for company founder Montague Burton and, with its striking art deco facade, the building is one of the most distinctive in the city centre.
Having acquired the Grade II listed building, Hull-based Wykeland has now announced plans to conserve and regenerate the building.
Wykeland has submitted a planning application to Hull City Council for the extensive repair, refurbishment and conversion of the building to create a prime retail or restaurant space on the ground floor, with offices on the upper floors.
The imposing building features polished granite cladding, full height windows to the upper floors and decorative columns and balconies. However, it has fallen into disrepair over time, with the building’s fabric in poor condition, internally and externally.
A number of cladding panels are defective, including cracks that have allowed water penetration into the building.
The steel-framed, single-glazed windows are in poor condition, with corrosion and distortion to many of the frames and damaged glazing. The internal plasterwork is also damaged, with brickwork exposed in many places.
The plans put forward by Wykeland include complete replacement of the cracked and worn cladding. The project would also involve replacement of all the windows with new metal-framed, double glazed units and creation of a new entrance facing Whitefriargate based on the design of the original Burton shopfront.
The building also has an internal art deco-style metal cage lift, which is being refurbished and brought back into use, while the plans also include recreating a parapet at roof level with the Burton name, which was once a key feature of the building.
Tom Watson, development surveyor at Wykeland, said: “Since acquiring the building, we’ve worked closely with our expert consultants, Historic England and Hull City Council’s Conservation Officer to bring forward these proposals.
“We plan to deliver a sympathetic regeneration of the building, saving a landmark, listed building from dereliction and bringing an important commercial space in a prominent city centre location back into use.
“We have invested significantly in Hull city centre over many years, including in Whitefriargate, and the acquisition and proposed reinvigoration of the Burton building underlines our commitment to the heart of the city.”
The building has four floors, plus a basement, with a total of 11,000 sq ft of space. The proposed retail or restaurant area on the ground floor will offer 2,000 sq ft of floorspace, with the first, second and third floors each covering 2,600 sq ft.
Jonathan Stubbs, development director at Wykeland, said: “We identified the significant potential this building offers and were pleased to secure it following the collapse of Arcadia. These plans will enable the building to have a long-term, commercially viable future.
“Once redeveloped, this will be a fantastic opportunity for businesses to move into a landmark building in a prime location in the heart of Hull.
“That potential has been reflected in interest we have already received in the building as we have developed our plans to bring it back into use.”
Subject to planning approval, work on the building is expected to begin in early 2023. The project is expected to take up to 12 months, meaning the building could be in use again by late 2023 or early 2024.
South Yorkshire land parcel sold for £29m
Harworth Group has sold two residential land parcels at its Waverley and Thoresby Vale developments to Barratt and David Wilson Homes, for a total consideration of £39 million.
At Waverley in South Yorkshire, Harworth has competed a £29 million land sale which will see the delivery of approximately 450 homes, of which over 30% will be affordable. This represents Harworth’s largest-ever serviced residential land sale by number of plots.
The new homes will represent Barratt and David Wilson Homes’ fifth phase at the site and will be situated adjacent to both Highwall Park and the Waverley Lake, benefitting from unique water frontage in an area of the development known as Waverley Waterfront.
Construction will follow a bespoke design code, devised in partnership between Harworth and Barratt and David Wilson Homes, that complements the existing Waverley development while maximising the amenity value of the area’s waterfront location. The development will include a pedestrianised promenade, further enhancing the site’s placemaking and connectivity.
Meanwhile at Thoresby Vale in Nottinghamshire, Harworth has exchanged on the sale of serviced land capable of delivering 174 homes, for £10 million.
Andrew Blackshaw, chief operating officer, Harworth Group plc, said: “Barratt and David Wilson Homes is a trusted and valued partner to Harworth, and we are pleased to be developing our relationship with these two significant land sales. Harworth is particularly well-placed in volatile markets as our serviced land provides housebuilders with a product which is de-risked and ready to build on from day one.
“The acceleration of both our Waverley and Thoresby Vale sites will see Harworth stepping through its strategy to take advantage of the placemaking and levelling up that these schemes ultimately bring to these communities. In addition, these sales will enhance the maturation of these socially diverse neighbourhoods when delivered alongside our recently launched single family Build to Rent product, Project Spur.”
Pandemic-born businesses could add £20.4bn to UK economy
More than £20 billion could be added to the UK economy in future from the number of additional businesses created during the pandemic, fresh data from a joint report by CBI Economics & NatWest Group reveals today (Thursday).
Some 800,000 companies were registered in the first year of the pandemic, a 22% increase compared with the previous year.
Compared with its international peers, the UK is a proven hub for entrepreneurship. Pre-pandemic the number of new businesses created as a share of total firms was 13%, higher than the U.S. (8%) and Germany (11%). Historically, the success and survival of these firms is also well established. In 2018, the one-year survival rate for new business was 89% – around nine percentage points higher than the EU average.
To gain greater insights about the hitherto little-known experience of pandemic-born firms, CBI Economics surveyed 543 firms. Key findings include:
- Only 13% cited regulation as a challenge when starting their business.
- Access to finance was a key concern for many burgeoning business leaders, with 55% highlighting this post 2020, compared with 42% pre-COVID.
- 4 in 5 firms report no plans to wind down their business.
- Pandemic-born businesses are more likely to say it is important to adopt the newest technologies compared to their pre-pandemic counterparts (56% versus 71%).
- Pandemic-born businesses are 20% more likely to use both sustainable materials and suppliers, compared with firms established prior 2020.
Hull Liberals pull plug on city’s cruise terminal plans
Hull City Council’s new Liberal leadership has pulled the plug on plans to build a cruise terminal near The Deep, claiming the proposed scheme was ‘fundamentally unworkable’.
Having listened to residents in the area and the official objections of The Deep, Hull’s Lib Dems say they’re protecting The Deep by confirming this site will not be used.
This is one of the new administration’s first major moves, said to confirm its intention to listen to people across the city and put local people at the heart of Council decision-making.
Claiming Labour’s Cruise Terminal plans were fundamentally unworkable, Council leader Mike Ross has asked the Council to explore alternative locations where a Cruise Terminal could be feasible, with publication of a review expected shortly.
Boris Johnson expected to resign today
According to sources within the Government, Boris Johnson will resign today – although he may remain as PM until Autumn. A spokesperson for No.10 has said that the Prime Minister will make a statement to the country today.
This follows a raft of resignations including Rishi Sunak, Sajid Javid and Andrew Murrison among others. Newly instated Chancellor Nadhim Zahawi even explosively told the Prime Minister that “he must go now” after accepting the position.
Business leaders are expected to react on the matter after it happens, and we will report on that – if anything – the resignation will mean for businesses in the region. As of yet, a replacement PM has not been selected, though it has even been suggested that Theresa May could return as temporary (or interim) PM. Others have suggested Raab will make a more likely candidate.
Government awards contract for difference on world’s largest wind farm zone
The UK Department for Business, Energy and Industrial Strategy has awarded Ørsted a contract for difference for its Hornsea 3 offshore wind farm, which will form part of the world’s largest offshore wind zone.
With a capacity of 2,852 MW, Hornsea 3 will produce enough low-cost, clean, renewable electricity to power 3.2 million UK homes, making a significant contribution to the UK Government’s ambition of having 50 GW offshore wind in operation by 2030 as part of the British Energy Security Strategy.
The wind farm will play a key role in the ongoing development of a larger and sustainably competitive UK supply chain to support the next phase of the UK’s offshore wind success story. Ørsted has already announced a multi-million pound agreement for Hornsea 3 to be the first and lead customer at SeAH Wind’s monopile factory in Teesside, underpinning SeAH’s investment decision to establish a new, globally competitive monopile factory in the UK. Hornsea 3 will contribute significantly to Ørsted’s ambition of globally installing 30 GW offshore wind by 2030. The company currently has about 7.5 GW offshore wind in operation, a further 3.5 GW under construction, and another almost 11 GW of awarded capacity under development, a figure which includes Hornsea 3. Martin Neubert, Deputy Group CEO and Chief Commercial Officer at Ørsted, says: “Offshore wind once again proves itself as a homegrown source of clean energy at large scale that will help the UK achieve its climate targets and increase energy independence while creating local jobs and industrial development. “We remain fully committed to financial discipline. The strike price is inflation-indexed and the contract comes with a level of merchant flexibility. We have already secured capacity with key suppliers for around two thirds of Hornsea 3’s CAPEX. Also, we can unlock significant synergies by taking a global portfolio view in procurement and by utilizing Hornsea 3’s size and location adjacent to our existing UK East coast wind farms with close to 4 GW in operation.” Hornsea 3 will be built 160 km from the Yorkshire coast, and the company expects to commission it in 2027. When Hornsea 3 comes online, Ørsted’s Hornsea zone – comprising Hornsea 1, 2 and 3 – will have a total capacity of in excess of 5 GW, making it the world’s largest offshore wind zone covering the power consumption of approx. 5 million UK homes. Duncan Clark, Head of Region UK at Ørsted, says: “This is another landmark for offshore wind in the UK. Not only will Hornsea 3 provide low cost, clean energy for millions of homes in the UK, it will also deliver thousands of high quality jobs and billions of pounds of investment in the UK’s offshore wind supply chain. “Successive governments deserve credit for providing the regulatory and policy certainty for continued investment in offshore wind – Ørsted alone expects to further invest around 14 billion pounds in the UK to the end of this decade. This has allowed the cost of offshore wind to fall rapidly and to become the thriving industry it is today, with private companies expected to invest 155 billion pounds and almost 100,000 people to be employed in the sector by 2030. “Now more than ever there is a need for the further development of renewable energy, not only to address the increasing threats from climate change, but also to increase the stability and resilience of energy supply. We look forward to working with government and industry colleagues to accelerate the deployment of offshore wind.” Hornsea 3 will support up to 5,000 jobs during its construction phase with up to a further 1,200 permanent jobs both directly and in the supply chain for the long operational phase. Hornsea 3 will be operated from Ørsted’s operations and maintenance hub in Grimsby. The Hornsea Zone will also include Ørsted’s Hornsea 4 project, which could have a capacity of approx. 2.6 GW. Hornsea 4 is currently going through the planning process with a decision expected in early 2023. About the contract Ørsted will build Hornsea 3 including transmission assets (offshore and onshore substations and export cables). When the wind farm has been fully commissioned, Ørsted will, in accordance with UK regulation, divest the transmission assets to a new owner. Ørsted expects to take final investment decision on Hornsea 3 within 18 months and potentially as soon as by end of 2022. The two-way contract for difference (CfD) for Hornsea 3 runs for up to 15 years starting after commissioning of the wind farm, which is planned for 2027. The strike price is inflation-indexed up to and throughout the CfD period. The nominal starting price per MWh will be determined based on the strike price plus accumulated inflation from 2012 until the CfD starts. After the CfD ends, Hornsea 3 will receive the market price for electricity or enter new power purchase agreements.Almost 3 in 4 financial services firms see staff training as top business priority
With businesses across the economy struggling to access people and skills, the majority of FS firms are putting upskilling and retraining staff (73%) at the forefront of future business strategy and transformation plans, according to the latest CBI/PwC Financial Services Survey.
Advances in technology & business transformation (69%) and achieving operational resilience (68%) were second and third most common priorities, respectively, for future strategy and transformation plans.
The survey of 78 financial services firms – conducted between 30 May and 17 June – found that 74% of firms are looking to upskill their existing workforce in response to disruption.
Regulation (71%), changes in customer preferences and behaviours (62%), acceleration in digital technologies (55%), and skills shortages (52%) were the top four trends said to be driving disruption in the year ahead.
Meanwhile, sentiment across the sector remained poor in the quarter to June – falling at broadly the same quick pace as the previous three months – despite business conditions remaining relatively positive and profitability growth accelerating (although business volumes were flat). Furthermore, headcount grew at its fastest rate since December 2019.
Looking ahead to the next quarter, FS firms expect business volumes to return to modest growth, while profitability growth is expected to slow. Numbers employed are expected to be broadly unchanged in the three months to September.
There was a modest improvement in investment intentions for the next 12 months (compared to the previous 12). Land & buildings and vehicles, plant & machinery investment intentions both firmed on the previous three months, while IT capital expenditure plans remain strong. Uncertainty about demand was the most common factor cited as likely to limit future investment.
Nearly half (48%) of all FS firms have initiatives to support consumer and/or commercial clients with the cost of living / cost of doing business. A further fifth (21%) of businesses said they were planning to set up initiatives in the future.
Rain Newton-Smith, CBI chief economist, said: “The erosion of business confidence seen in the last financial services survey has pulled through to this quarter, likely reflecting concerns about the impact of high inflation on the economy. With pressure expected to persist throughout the year, there’s a real need for government to press ahead with confidence-boosting measures now.
“Implementing a permanent successor to the highly successful super-deduction would help to crank-up investment levels and set the country on a path back to higher growth.
“One of the bright spots from the survey was FS firms’ commitment to upskilling and retraining. It’s encouraging to see so many firms put staff development at the heart of their business strategies – and that is sure to reap rewards in terms of recruitment and retention later down the line.
“It’s also welcome to see so many firms taking steps to support customers and business clients through the cost-of-living crisis. From improving access to finance and better financial education, FS firms have a range of tools to help households cope with rising costs.”
Isabelle Jenkins, leader of Financial Services at PwC UK, said: “With a fierce war for talent impacting the financial services sector, it makes sense that firms are putting retaining experienced staff at the top of their to-do list.
“That plus the 12 percent growth in employment, the fastest uptick since December 2019, proves that for CEO’s, building and maintaining their workforce is critical.
“In fact, our research with the Financial Services Skills Council from earlier this year showed that, reskilling, once seen as perhaps a nice to have, can create cost savings of up to £49,100 per employee compared to recruiting or making a role redundant, a significant sum, especially in light of the increasing headwinds due to inflation.
“So the business case is clear, however with half of the firms we spoke to admitting that time remains a barrier in delivering training, there remains a crucial shift that some businesses will need to embark on.
“What we are seeing through today’s results show that financial services firms are aware that the fundamentals have been reset, and the breadth of competition for well trained staff means that firms will need to ensure that they can offer the kind of culture, environment and purpose that will attract and keep the very best.”
Green light for 2,000 new Leeds homes
White Laithe Developments Ltd, as part of a consortium of landowners, has secured planning consent from Leeds City Council to transform land at Whinmoor into a residential-led sustainable urban extension with 2,000 homes, which could facilitate significant job creation.
Approval has been granted for the creation of a new community including 2,000 homes, a local centre, a primary school, public open space and part of the East Leeds Orbital Road. The circa 250 acre site comprises three adjacent parcels of land, off Coal Road and Skelton Lane, between the A58 Wetherby Road and the A64 York Road.
The residential development, which will be the primary land use within the site, will incorporate a mix of market and affordable homes from two bedroom apartments to five bedroom townhouses.
Leeds City Council is required to deliver 51,952 new dwellings between 2017 and 2033, with a target that 3,247 dwellings per year should be delivered. The land at Whinmoor will significantly assist in contributing to housing delivery as it will accommodate 2,000 units of the wider East Leeds Extension site, which has an allocated capacity of 3,771 homes.
The new primary school will be a two-form entry school and the mixed-use local centre will provide a variety of retail, community and health uses as a focal point for the new community.
The development will also provide the first phase of the East Leeds Orbital Road between the A58 Wetherby Road and the A64 York Road, connecting surrounding communities.
Peter Garrett, Managing Director of Keyland Developments – one of the JV partners, said: “The planning consent has facilitated an entirely new extension of Leeds to bring about much-needed housing and associated community facilities as well as a vital new road connection. The development has the potential to deliver a multitude of economic and social benefits, including significant job creation, and we are pleased to have played a role in unlocking its potential.”
John Carter, director at Evans Property Group – a JV partner, said: “Developments of this scale have the ability to ensure the long-term success of cities and we are delighted that this strategic site at Whinmoor will be brought to life as a vibrant mixed-use development with a community at its heart. Development of sites like this is crucial and we are looking forward to seeing the scheme progress.”
Construction firm builds on track record in the care industry with new contract win
Yorkshire construction firm, Hobson & Porter, has won a new contract to build a £6m luxury care home in Sleaford, Lincolnshire.
The win follows the successful completion and recent hand over of two other new build care homes for the same firm, Yorkare Homes. Both Louth Manor in Louth, Lincolnshire and Cottingham Manor Care Home in Cottingham, East Yorkshire completed on time and within budget.
Hobson & Porter has a longstanding history with Yorkare Homes, first working for the family run care company in 2015.
Mark Smee, contracts director, from Hobson & Porter, said: “Our first project for Yorkare Homes was the conversion and extension of Lindsey Hall, a former school in Cleethorpes seven years ago. We successfully tendered for that job, then started on a three further impressive new build projects for the company – Beverley Parklands in Beverley, Tranby Park in Hessle and Mere Hall in Hornsea, all of which raised the bar in terms of design and finish.
“This latest contract win, which we competitively tendered for, will see us build a 67-bedroom care home on London Road, in a 1.25-acre plot, completed with bar area, cinema, hairdressing suite, library and lounge.”
Laurence Garton, from Brough-based Yorkare Homes, said: “We are a family business that has operated in the care industry for over 30 years and our homes provide outstanding care within a luxury environment.
“We now have 9 standout homes across Yorkshire and Lincolnshire and have found Hobson & Porter always deliver the high standards of craftmanship and build quality we expect. A real partner, that we can rely on and trust to understand the challenges we face and the time constraints we are under, Hobson & Porter have successfully met our needs on numerous projects across two counties.
“Both Louth Manor and Cottingham Manor are immediately proving popular with residents looking for a special and luxurious home that exceeds everything else in the Louth and Cottingham areas. Following this success, we’re delighted that work is now underway in Sleaford and residents will be able to move in from summer next year.”
