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SOUTH WALES INDUSTRIAL TAKE UP TOPS PREVIOUS YEARS
first half of 2017, with around 1.45 million sq.ft of recorded transactions above 50,000 sq.ft, according to the latest research from property consultancy Knight Frank. The take-up figure represented a
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450,000 sq.ft increase on the same period in 2016 and a 650,000 sq.ft increase on the first six months of 2015. Neil Francis, partner in the industrial
agency team of Knight Frank in Cardiff, said: “In line with recent trends, two thirds of these transactions were purchases by owner occupiers.” He added: “The largest transaction
during this period was the sale of 250,000 sq.ft at Trident Park, Cardiff to the Welsh Government, which has subsequently leased the space to Bad Wolf for use as a studio and office scheme for independent television production – a move that highlights how significant and popular the creative industries sector has become within South Wales.” Whilst demand continued to outweigh
supply for modern units along the M4 corridor it was positive that the first half of the year (H1) witnessed three companies acquiring units north of the M4. The BBI Group moved to 120,000 sq.ft in Crumlin, Sharp Clinical secured 108,000 sq.ft in Tredegar and Treforest Glass doubled its size by relocating to 53,000 sq.ft in Tonyrefail. “All have an existing presence in South
Wales and by expanding they are safeguarding local jobs whilst also committing to adding to their workforce over the next couple of years,” said Neil Francis. On the supply side for units above
50,000 sq.ft there remained approximately 4.1 million sq.ft available, with Grade A stock accounting for less than five per cent of this. The lack of quality stock had
emand in South Wales for large industrial units continued during the
resulted in rents for better units in good locations continuing to increase, whilst incentives had hardened as landlords took advantage of high demand versus low availability. Neil Francis said: “On the land supply
side there remains a number of serviced development sites immediately available with good accessibility to the M4 motorway. However, the costs of construction, measured against the level of rents or sales values that are achievable, still make new-build development marginal, which has resulted in limited developer interest.
On the land supply side
there remains a number of serviced development sites immediately available with good accessibility to the M4 motorway.
“In certain circumstances demand
received for these sites has been from the motor trade and there have been some land sales, at higher levels than traditional industrial values, from operators wanting to construct new showrooms on the edge of busy industrial locations.” He added that multi-let industrial
estates with asset management opportunities, and single-let investments to a strong covenant, continued to prove attractive to investors seeking value for money. This had been evidenced by the recent sales of Cook Court in Ocean Park, Cardiff; the disposal of the Amazon unit at Celtic Business Park, Newport; and the demand being shown in the multi-let West Point, Cardiff. Looking ahead, Neil Francis said that
NEW £3.7M FACILITY W
ork on Qioptiq’s new £3.7m purpose designed manufacturing and warehousing facility in St Asaph - which
is supported by Welsh Government investment – is now underway and will ensure Qioptiq, an Excelitas Technology Company, has the additional capacity needed to deliver a major £82m MoD contract within the required timescales. The start of work was officially launched recently at a
ground breaking event with Economy Secretary Ken Skates, Qioptiq MD Peter White and representatives from Read Construction which secured the design and build contract. The Welsh Government is investing £1.7m to build the 24,900
sq.ft. secure facility on land it owns adjacent to Qioptiq’s existing premises on St Asaph Business Park. The development is due to be completed by the end of the year when Qioptiq will lease the building and invest c£2m in fit out, security and IT.
COMMERCIAL PROPERTY MONTHLY 2017 N
with a lack of quality stock remaining in the market there would be a number of requirements for units above 50,000 sq.ft that would remain unsatisfied in 2017. “Unfortunately, this means the take up
of 3 million sq.ft achieved in Wales in 2016 is unlikely to be met or bettered this year,” he commented. He believed that the lack of quality
stock could soon be assisted by the introduction of the Property Development Grant which the Welsh Government had invited interest in earlier this year. It was reported that demand was high, with a number of developers eager to secure the funding required to make development viable. “If successful we anticipate that by the
end of 2017 a number of speculative schemes will be announced that could satisfy some of these development requirements,” he said. “There are also several Government-led
initiatives that will impact sentiment within the market. Occupiers and developers are particularly eager to understand how the M4 Relief Road will progress, and whether the Severn Bridge Tolls will be scrapped. “Positive decisions on both will provide
improvements for the whole of South Wales and assist in attracting further inward investment into the area from occupiers looking to benefit from opportunities that present better value for money than those over the Severn Bridge.” Knight Frank LLP is the leading
independent global property consultancy. Headquartered in London, Knight Frank, together with Newmark Grubb Knight Frank and Douglas Elliman Fine Homes in the Americas, has more than 13,000 people operating from over 400 offices across 58 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
30 JOBS CREATED IN TENBY
ation-wide fashion retailer M&Co has opened its doors to customers in Tenby. M&Co announced it had agreed a lease with family-run T.P.
Hughes to occupy its 10,000 sq.ft property fronting on High Street, Upper Frog Street and St Nicholas Lane, which include the extensions into Bank Lane. The store has created 30 new jobs with five positions being
filled by former T.P. Hughes staff. This is the third store in Wales for the fashion retailer, which
ranges include women's, men's and children's clothing and accessories, together with homeware products. Advised by Cardiff-based independent commercial property
specialists Cooke & Arkwright, T.P. Hughes will still operate in the town but will focus its efforts on home furnishings.
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