The linking of Blackburn and Burnley to the North West’s motorway network has brought a a development boom. Paul Unger reports on the key schemes
The M65 towns of Burnley and Blackburn are reaping the benefits of their two-year old links to the North West’s main motorway network.
Several notable developments are either in the process of being completed or are coming on stream.
Key among these have been a number of out-of-town leisure schemes around Blackburn. And demand for office space has increased.
The area’s former star performer, industrial distribution, has continued to struggle in the face of land shortages with many parks full or nearly full.
Agents are anticipating a spate of developments, and occupiers will be pleased to hear plans are progressing to fill the supply void.
Burnley
Michael Cavannagh of local agent Trevor Dawson says: “Despite media coverage following the riots in the past 12 months, Burnley has continued to attract investments.
“This is illustrated by the success of the two main business parks in the area, Shuttleworth Mead and Network 65, which are all but full.”
Shuttleworth Mead was undertaken in 1999 by Ribble Industrial Estates, a joint venture between Barnfield Construction and local private landowners, and has since secured occupiers such as Graham & Brown, Time Computers and Fagan & Whalley.
Similarly at Network 65 next to junction 9, Priority Sites – a Royal Bank of Scotland and English Partnerships joint venture – has developed four units totalling 35,000 sq ft.
All of the units were sold within six months of completion for around £38 per sq ft.
Preston-based Eric Wright Construction is shortly to start a 240,000 sq ft national distribution centre for Glen Dimplex at Network 65.
The two remaining plots on Network 65 are 2.7 acres, recently acquired by the omnipresent Barnfield for speculative development, and a 3.8-acre frontage plot, which the council wants to see used for offices, leisure and showrooms.
Cavannagh adds: “There have been 283 acres taken up in the past five years next to M65 junctions, and this needs to be repeated in the next five years to match demand.”
Barnfield Construction remains the dominant development player in its own backyard, with plans for several site expansions to free up supply.
It is developing the last plot of Lomeshaye Industrial Estate, where it is based, with an 11,600 sq ft unit that attracts rents of £75 per sq ft to £4.25 per sq ft depending on how the space is split.
Trevor Dawson is acting on behalf of Barnfield at Network 65 and Lomeshaye.
At Vivary Way in Colne, Barnfield is planning a 20-acre mixed-use scheme next to junction 14 of the M65. Despite a large remediation programme, buildings are expected to be available from early 2004.
And at Shuttleworth Mead, Barnfield is hoping to open up further land for development.
Barnfield’s property director Mark Taylforth says the company is now working with planning advisers to put forward a case for the release of a further 75 acres for development adjacent to the park.
Barnfield’s arsenal also includes the Hepworth Building Products site next to junction 9 – a 50 acre site, partly occupied by Hepworth but under-used. Talks are ongoing with Burnley council to open the site up for industrial development.
Hope could also lie in the former Michelin site, which the North West Development Agency acquired last year for £6m.
The 40 acre site is to be developed as a business park, but no details have been released yet.
Blackburn
In their own half-jokey way, Blackburn’s agents admit they have often lagged behind the rest of the UK, and the leisure and retail boom is testament to that.
Three out-of-town schemes with a mixture of fitness clubs, cinemas and retail warehouses are due to come on line this year.
In November, Peel Holdings submitted a detailed planning application for the £18m second phase of its retail and leisure park in Lower Audley.
The phase includes a 30,000 sq ft, 10-screen multiplex cinema, 35,000 sq ft of bowling, a 22,500 sq ft health centre, believed to be occupied by JJB, with 16,000 sq ft of shops attached, and a 3,600 sq ft restaurant. Taylor Weaver is advising.
The first phase of the scheme, now open, comprises a 55,000 sq ft retail warehouse, of which Matalan took 30,000 sq ft, and Staples 25,000 sq ft.
JJB is also planning one of its soccerdomes and health centres at Shadsworth on a site owned by Arrowcroft. Fuller Peiser is advising.
At Trident Park in Whitebirk, over the boundary into Hyndburn from Blackburn, Barnfield Construction is building a leisure centre for Total Fitness, and has just handed over a Toyota dealership to operator Vantage.
Trident is a 10-acre site off junction 6, acquired last year by Barnfield from Powergen to be developed on adesign-and-build basis.
Three further car dealerships will front the site, and there are plans being considered for 35,000 sq ft of offices on two acres at the rear.
Inevitably, given the area, freeholds will be considered as well as leaseholds, with quoting rentals of £10 per sq ft. Taylor Weaver is advising.
Alex Taylor of Taylor Weaver says the scheme reflects the leisure boom that Blackburn is experiencing.
In Blackburn town centre, Standard Life has sparked rumours of a retail crisis with the initial collapse of its sale of the town’s main shopping centre to Tops Estates.
Tops sought to reduce the price at the last minute and was swiftly rebuffed by Standard Life, which says talks of a retail slowdown are ill-founded.
Chris Geaves of Strutt & Parker, advising Standard Life, is bullish: “There is more money in the market for shopping centres and retail in general than ever before.
“The Blackburn centre is now under offer to another party. It remains a rare opportunity to gain control of the whole town centre.”
Geaves says Standard Life is likely to get close to the asking price of £102m.
In the office market, the M65 has seen more activity in the past couple of years than previously, no doubt owing to the motorway’s completion.
At the end of last year, Brookhouse Managed Properties signed Capita to a 60,000 sq ft (5,574m2) call centre in India Mill, Darwen.
The site was in need of refurbishment, and Capita paid £4 per sq ft before spending £2.5m improving the space. Taylor Weaver acted for Brookhouse.
Shadsworth Gateway has also seen activity, with a 25,000 sq ft production and office facility sold to SG Aluminium. Four more offices of 2,500 sq ft each are for sale or to let, with two of them under offer through Taylor Weaver.
At Walker Park, the 6,000 sq ft Ewood House has been let to Scottish & Newcastle for around £10.50 per sq ft, and the 17,000 sq ft Darwen House will be completed this summer. Taylor Weaver and King Sturge advised on the Ewood House deal.
Barnfield is developing the nearby 11-acre Roman Road Estate as 120,000 sq ft of industrial and office space, split equally.
Another office offering is Glen Mill Developments’ Mercury Rise near junction 8, a 32,000 sq ft park with outline consent.
The first phase of 9,000 sq ft is due to start soon with agent Robert Pinkus & Co quoting £90 per sq ft to buy or £9 per sq ft to rent.
Future schemes will include Lantern Park next to junction 6 in Hyndburn.
The NWDA has committed to partly funding development of the 90-acre greenfield site along with European Objective Two aid. A developer has yet to be appointed or plans released.
|
M65 business park availability |
|||||
|
The huge developments springing up on the M65 are providing thousands of jobs |
|||||
|
Junction |
Name |
Size (acre) |
Amount undeveloped (acres) |
Comments |
|
|
5 |
Walker Park |
30 |
10 |
||
|
5 |
Shadworth Business Park |
62 |
16 |
End value to date, £20m; 1,200 jobs created |
|
|
6 |
Grennbank Business Park |
85 |
7 |
||
|
6 |
NWDA’s strategic site |
90 |
|||
|
8 |
Altham Business Park |
35 |
0 |
||
|
8 |
Shuttleworth Mead |
62 |
5 |
Development commenced 1999 |
|
|
9 |
Network 65 |
49 |
6 |
End value to date, £19m |
|
