wales |
KEEPING UP THE MOMENTUM P
Phil Jardine is a Partner with law firm Blake Morgan. He says 2017 has been a much stronger year than anticipated with plenty of reasons for optimism in 2018.
olitical uncertainty may prevail but we believe that the market in Wales will flourish with plenty of opportunity for growth across all sectors in 2018. The pressure on retailers and high
streets isn’t diminishing and some may fear the introduction of the new Welsh Land Transaction Tax but there are many reasons to be positive; not least of which the increase in the SDLT threshold to £300,000 for first time buyers.
The private sector is leading the way in
Wales. 2018 will be an exciting year with work scheduled to progress swiftly on JR Smart’s Capital Quarter and the Central Quay site; an inspirational joint venture between Rightacres and Brains.
Rightacre’s award winning Central Square development will see the practical completion of BBC Cymru’s new
Philip Jardine
headquarters while work is work is
2018 will be an exciting
year with work scheduled to progress swiftly on JR Smart’s Capital Quarter and the Central Quay site; an inspirational joint venture between Rightacres, Brains and Network Rail.
continuing on the £100 million GPU/HMRC development at Wood Street. Of course, we hope that the Central Square Interchange will get the green light and it would be good to see Network Rail committing to the long overdue development of Cardiff Central Railway Station.
Progress on the Cardiff Capital Region City Deal is needed and the Metro project
should get a welcome boost when Transport for Wales complete the procurement exercise for the current Arriva Trains Wales network. Meanwhile, Swansea is on the brink of transformation with the long-awaited Swansea Bay Tidal Lagoon being the catalyst for investment and regeneration across the region. Continued growth in demand for office space in Cardiff is matched by rising capital growth. This should spread East with the scrapping of the Severn Bridge tolls. Towns like Chepstow could really start to benefit with commercial and residential property benefiting from cheaper transport costs. From industrial warehousing to the private rental sector, the outlook is encouraging and investor confidence is strong. The stimulation of further growth and opportunity now needs a can-do attitude from Welsh and UK Governments to make decisions and make things happen. That’s what really will give us the chance to compete in a post-Brexit world. Visit:
www.blakemorgan.co.uk
INDUSTRIAL MARKET STAYS STRONG IN SOUTH WALES A
By Neil Francis, Partner in the Industrial Agency team of Knight Frank in Cardiff
s we approach the end of 2017 it is clear that the occupier market for industrial units of over 50,000 sq.ft in south Wales still remains strong. We reported 1.2 million sq.ft of transactions for the first half of the year and indications are that the second half figures will be higher again. The letting of
the 280,000 sq.ft in Newhouse Farm, Chepstow to CM Downton and the sale of 250,000 sq.ft in Llantrisant to an owner occupier have certainly
helped to boost this figure. As in
Neil Francis
previous years there has been more of a
trend for regional companies wanting to purchase property as evidenced by the acquisition of the 135,000 sq.ft Aviation House, Waterton, Bridgend by Willis Asset Management Ltd and Heathpak buying 69,000 sq.ft in Oakdale, Caerphilly. It is also pleasing to see that
COMMERCIAL PROPERTY MONTHLY 2017
speculators and investors still have an appetite to purchase second-hand industrial units that provide subdivision and refurbishment options. Rombourne has continued to grow its industrial offering by
It is also pleasing to see that speculators and investors still have an appetite to purchase second-hand industrial units that provide subdivision and refurbishment options.
adding the former Avana Bakery to its portfolio. Close to Junction 28 of the M4 Motorway, this 150,000 sq.ft facility offers plenty of options for incoming tenants and will provide some much-needed
refurbished space into the market. Critically though, new build for larger units is non-existent within South Wales. Despite the success of St. Modwens 50,000 sq.ft at Celtic Business Park, Llanwern - which was let to Amazon and then sold as an investment - there remains a lack of confidence in speculative development. It is hoped that the removal of the Severn Bridge Tolls and announcement on the M4 Relief Road will generate further interest and potentially move occupiers from Avonmouth where rents and land are more expensive. This sentiment is echoed by many within the industry but, with development costs continuing to rise, the profit margins are too low to make many projects viable. Taking into account a number of requirements active in the market and the lack of stock available, assistance from the Welsh Government will be required in order to ensure similar take-up figures in the coming years; whether this is via development grants, rates relief or even them developing themselves remains to be seen – but all need to be considered.
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