New schemes are under way in Nottingham and now the Bank of England has opened an office in the city, writes Ian Evans.
The decision by the Bank of England to open an office in Nottingham last year was as much a major coup for the city as it was a symbolic gesture of confidence in the East Midlands.
Staff from the Old Lady visit the neighbouring counties of Derbyshire, Leicestershire, Rutland, Northamptonshire and Lincolnshire for their regional economic surveys, but return to Nottingham to write them up – adding weight to local agents’ claims that the city is the commercial capital of the East Midlands.
But, while the opening of the College Street office was a nice fillip for Nottingham pride, perhaps the more important office deal of recent times happened at the former Boots Printing Works to the south of the city. American credit card company Capital One is creating a £30m European call centre at the 8,361m2 (90,000 sq ft) 1950s building with £2.9m of funding from English Partnerships and guidance from the East Midlands Development Corporation. The office is due to be up and running by 1999 and will eventually employ 900 people, although the firm is opening a temporary call centre in May.
Meanwhile, Philip Giles at Nattrass Giles, joint agent with Sturgis Shattock & Partners at Castle Wharf – developed by Sowden Group and Monk Estates – is confident of sealing lease deals with BT and NatWest for two offices at the site totalling 5,574m2 and 1,858m2 (60,000 and 20,000 sq ft) respectively, within the coming weeks.
Work continues at the nearby Island Business District site for a new £4m, 1,579m2 (17,000 sq ft) television and radio centre for the BBC. The public broadcaster has signed a 25-year lease with developer Simons Estates and Gulliver Development Property Unit Trust, rumoured to be for about £121 per m2 (£11.25 per sq ft). Nicks Ebbs, at Innes England, which advised the landowner with Oliver Liggins, says that the developers are planning a 1,858m2 (20,000 sq ft) speculative scheme at the site. Lambert Smith Hampton advised the BBC, whose present lease in Mansfield Road will transfer to Nottingham Trent University.
The Island site and Canal Wharf areas are part of the city council’s southside development plan to regenerate the south of Nottingham city centre.
Further out of Nottingham, Loughborough-based developer William Davis has been given planning consent for the 48.6ha (120 acre) Nottingham Business Park at Chilwell Dam Farm, following an inquiry. The firm is planning a design-and-build scheme, with the first buildings expected to be completed in 1999.
Back in the city, Orchard Holdings is demolishing the existing building at 55 Maid Marian Way and putting up a 1,432m2 (15,416 sq ft) speculative office scheme with EP funding.
At Royal Standard Place, developer Hampton Trust has obtained planning consent for 9,383m2 (101,000 sq ft) of offices at the existing five-storey Cumberland Place. It will include 123 parking spaces and adjoin Nottingham Health Authority’s headquarters, which used to own the entire site.
David Pepper at Chesterton says that Crosby Homes plans to convert the former pay bed unit into five, three-storey town houses, to build 40 apartments on the adjacent Broxtowe House site, and to convert the Memorial House nursing home into 30 upmarket apartments with a view of the south Nottingham landscape. Pepper says that prices could reach nearly £300,000 for the best units, and marketing will start in the spring. Nottingham planners are considering 1,394m2 and 3,716m2 (15,000 sq ft and 40,000 sq ft) office schemes earmarked for land between Memorial House and the main plaza. Pepper agrees with other agents that rents for good office space are about £135 per m2 (£12.50 per sq ft).
Investment sold
Wilson Bowden Properties achieved £139 per m2 (£12.90 per sq ft) for its 1,584m2 (17,050 sq ft) speculative Lock House office scheme when Shoosmith & Harrison solicitors took the central site on a 15-year lease. The investment has since been sold to Blue Circle, represented by Weatherall Green & Smith, for £2.735m. Fisher Hargreaves Proctor advised on the letting, and jointly with Vincent O’Grady in the investment sale, while Geo-Hallam & Sons acted for Shoosmith & Harrison.
At Wilson Bowden’s Riverside Park site, Cornhill Insurance has taken 1,138m2 (12,250 sq ft) of offices on a 25-year lease at £124m2 (£11.50 sq ft). Other occupiers include Toys ‘R’ Us, B&Q and Nottingham success story Experian – formerly CCN – which has 8,361m2 (90,000 sq ft) and is looking for more, says Ebbs of Innes England, joint letting agent with Fisher Hargreaves Proctor. Cornhill was represented by Skinners of London.
Commenting on both schemes, Wilson’s Euan Lindsay says: “This letting to Cornhill Insurance, following the recent letting of Lock House, reaffirms the need for high-quality office accommodation in the area.”
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Residential: old offices into housing
Nottingham city council is keen to see the conversions of empty 1960s and 1970s city-centre office buildings into flats. The authority estimates that there is some 46,450m2 (500,000 sq ft) of empty space in the city centre, much of which is unlikely to be let again. Among the offices earmarked for conversion are Barker Gate House, Birkbeck House, Chaddesden House and CMA House in St James’s Street. Nick Ebbs at Innes England says: “The city council is very proactive in finding a new use for these buildings. They want to see more young people staying in the city centre, with the involvement of housing associations.” |
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Retail: expansion continues
Nottingham city centre maintains its strong performance in the retail market, serving a catchment area of more than 2m regular shoppers. With four shopping malls, 1,150 retail units and the largest concentration of multiples outside London, Nottingham is the fourth largest shopping destination in the country. The Victoria Centre continues to dominate retailing in the town, strengthened by the summer opening of the £35m, 14,864m2 (160,000 sq ft) extension. Nineteen units of 47-836m2 (500-9,000 sq ft) have been let, alongside the new 10,219m2 (110,000 sq ft) anchor House of Fraser store. Hargreaves at FHP, joint agent with Lunson Mitchenall, says that zone A rents are up to £1,938m2 (£180 sq ft) on the ground floor, and £1,076m2 (£100 sq ft) on the first floor. He says that rental levels have almost doubled in 12 months, underlining the centre’s popularity. Owners Dusco Asset Management and Capital Shopping Centres are working on a 1,486m2 (16,000 sq ft) extension for four units which they hope will be completed in April. A 557m2 (6,000 sq ft) unit has been prelet to Music & Video Club at an annual rent of £150,000. Council moots Broadmarsh Centre extension Meanwhile, Nottingham city council has been holding talks with Hermes, owner of the Broadmarsh Centre, to extend the arcade. That could involve moving the adjoining bus station and demolishing the Middle Hill viaduct. Marks & Spencer hopes to complete its 2,973m2 (32,000 sq ft) city-centre extension and home furnishings department in 12 months’ time. Out of town, Chartwell Land sold its 6,280m2 (67,600 sq ft) Springfield Retail Park, fully let, to ScottishPower for £8m in November. Innes England was letting agent, while Richard Ellis acted for the purchaser. Wilson Bowden has gained planning consent for its 8,826m2 (95,000 sq ft), £5m Lady Bay retail development, to the south-east of the city centre. Development manager Simon Russian says that it is talking to potential operators for the nine units of 697-1,394m2 (7,500-15,000 sq ft), although the planning deal placed restrictions on food and fashion retailing. He adds: “We’ve had good feedback and I’m confident of filling it. We hope to start work in the spring and be up and running before Christmas.” |
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Leisure: county tourism capital forges ahead
With an estimated income of more than £140m, the tourism and leisure industry is a key earner for Nottingham. As well as the more established venues such as Theatre Royal, Playhouse, Castle Museum and the cricket and football grounds, the city boasts more than 250 restaurants and caf |
