Staffordshire keeps upbeat message for MIPIM

Mar 5 2009 by Alun Thorne, Birmingham Post

Commercial property delegates from across Staffordshire head for the world’s largest property show in a bullish mood this year despite the current gloom surrounding the sector.

While there may not be so many reasons to be as enthusiastic as this time last year, many developers and investors are refusing to be downbeat.

Projects in both the north and south of Staffordshire will be in sharp focus at MIPIM, while the changing face of Stafford town centre will try and lure investors into considering relocating to the centre of the county.

As far as most developers are concerned the emphasis will be on the long-term prospects for the county. With the property sector currently facing one of its worst recessions, many are keen to highlight what the picture will be in five to ten years’ time rather than the next 18 months.

Leading figures from inward investment agency InStaffs and the North Staffordshire Regeneration Partnership (NRSP) will be showcasing the continuing potential posed by the multitude of projects underpinning the economic transformation of Stoke-on-Trent and surrounding areas.

InStaffs, a partnership of Staffordshire local authorities and Chambers of Commerce, provides a single point of contact for businesses looking to move to, or expand within, Stoke-on-Trent and Staffordshire.

The company promotes Stoke-on-Trent and Staffordshire as a business location and offers a service to investors including providing a wide range of information; site visits; guidance on training and recruitment and grant advice.

John de Kanter, chief executive of InStaffs said: “We have many long-term opportunities for development and investment across North Staffordshire.

“Many of those benefit from substantial public sector funding. That gives confidence to private investors and helps to prepare the way for the upturn in the economy.

“We will work at MIPIM with our private sector partners like Realis, who are developing the East West Centre, to show that we are serious about regeneration and investment in North Staffordshire.”

Key areas of progress to be highlighted will be:

Planning permission recently secured for the East West Centre retail-led scheme in Stoke-on-Trent City Centre

Work underway to construct the University Quarter

Good progress with City Waterside housing regeneration area

Major investment in public spaces and the environment in the city centre

Continuing development of new employment sites at Chatterley Valley, Keele Science Park and Etruria Valley

Continuing investment and development of Newcastle town centre and the town centres of Burslem, Stoke and Longton

In addition, the name of the preferred developer for Stoke-on-Trent’s Central Business District will also be announced.

The current shortlist of preferred developers comprises: Birmingham-based St Modwen, Kier and Manchester-based Genr8 Developments.

The £107 million redevelopment of the Stoke-on-Trent College of Further Education is a crucial part of the long term plan to revitalise the city’s University Quarter. It is key to creating a world-class learning facility augmented by three centres of excellence serving the Construction, Health & Social Care and Business & Professional Services sectors.

Mick Laverty, chief executive of Advantage West Midlands, said: “The economic regeneration of Stoke-on-Trent and North Staffordshire is a key priority for Advantage West Midlands – and it is vital during the economic downturn that major physical developments are kept moving.

“The short-term economic challenges we face cannot allow us to be blown off course. The West Midlands region’s message to the commercial property world at MIPIM is that these major projects are going ahead, creating jobs and prosperity for the future.”

The importance of the logistics industry to the region will also be the focus of attention, especially due to Staffordshire’s unique location, which has long made it a Mecca for companies operating in this sector.

This reputation is likely to be enhanced with the completion of the £50million Blue Planet complex at Chatterley Valley. The innovative development, being delivered by Gazeley UK, will see 31 acres of former colliery land transformed into one of the greenest logistics parks in the country.

The development will be carbon-positive and will even have its own micro power station, fuelled by rapeseed oil. This will produce power for the on-site buildings and even have enough of a surplus to provide energy for 650 nearby homes.

Although the sector is facing a challenging time, Mr de Kanter said there were some positive signs on the horizon with enquiries for commercial premises in both Stoke-on-Trent and Staffordshire as strong as ever during January.

This is supported by InStaffs’ own research which showed that the vast majority of users of its internet-based property search facility were genuinely looking for new premises.

It is not only enquiry levels that are looking positive. InStaffs has recently identified nearly 40 businesses that have relocated to Stoke-on-Trent and Staffordshire since April 2008 and more than 30 companies that have relocated within the area – activity which is not far off from what would normally be expected at this time of year.

Companies operating in the technology sector are also providing a boost to the county with the various incubator buildings at Keele University Science Park now virtually full. This has been strengthened with Biocomposites exercising its option to take a second 10,000 ft2 area in the IC4 building.

The development of Phase 3 of the science park is therefore seen as very important and the project has recently been boosted with the allocation of funding to undertake off-site highway works.

Speculative build may have stalled in the last year but the county still has a wide variety of options available including 3.3 million sq ft of industrial/warehousing and 375,000 sq ft of offices space.

Industrial/warehousing includes one of the largest units available in the West Midlands – the 700,000sq ft Flair development at G Park in Rugeley.

Other options include the 460,000sq ft Opus Axis development at Centrum 100, Burton-upon-Trent, the 415,000sq ft Lymedale 415 at Lymedale Business Park, Newcastle-under-Lyme, and the 388,000sq ft Prologis 388 at Prologis Park, Stoke-on-Trent.

In the south of the county large scale projects are at a premium. Nevertheless, there are a number of units available at sites such as Kingswood Lakeside in Cannock, Centre 38 in Burton-upon-Trent, Prologis Park in Stafford and at Fradley Park near Lichfield.

In addition, there are a wide range of options available in Cannock, Rugeley and Stafford through locally-based developer Pritchard Holdings.

Fred Pritchard, chief executive of the property group, said: “The south of the county has a lot to offer investors looking to relocate. There are a number of sites all offering flexible accommodation and benefiting from excellent access to the transport network.

“I would hope these would be of interest to people visiting the MIPIM event.”