Railfreight controversy Park Street in St Albans is the site of a key development spat – the second time it has hit the headlines. By Simon Jack
Apart from a fleeting appearance by its public toilets in a film version of the situation comedy On the Buses, the village of Park Street near St Albans has rarely been in the spotlight.
But its profile has risen greatly with HelioSlough’s attempt to build a 3.5m sq ft rail-connected distribution park, in line with the government’s desire for three to four strategic rail freight interchanges to be developed around London.
The scheme, on a former airfield, has been turned down twice by St Albans council, and an appeal has been heard at two public inquires. The most recent finished on 18 December, and the result is eagerly awaited.
Given their likely effect on the green belt, the plans were previously quashed by former communities secretary Hazel Blears on the grounds that HelioSlough had not carried out a thorough enough survey of alternative sites.
Blears said that, had HelioSlough done a sufficient survey, this would have led her to “conclude that this consideration, together with other benefits, were capable of outweighing the harm to the green belt”.
This issue has now been addressed by HelioSlough in its latest application, which compared Park Street with sites near Luton, Heathrow, Harlington and Maidenhead.
Traffic congestion
But there is a vociferous lobby lined up against the scheme, which argues that there are environmental, noise, traffic congestion and rail capacity issues that need to be addressed. Opponents include St Albans council, local politicians and newspapers, a local campaign group and passenger rail operator First Capital Connect.
If it wins the appeal, HelioSlough has options to purchase the majority of the site from concrete manufacturer Lafarge Aggregates and local landowner the Gorhambury Estate. But part of it is owned by Hertfordshire county council, which has expressed concerns about the scheme.
HelioSlough refused to comment on its proposals, but its inquiry submission states: “The county council has not indicated an unwillingness to release this land for development if planning permission is granted.” But a statement from the council says it has “taken no decision regarding the future use or disposition of its land”.
HelioSlough would also have to make the development stack up commercially. The Freight Transport Association, which represents users and providers of all modes of freight transport, believes that rail freight volumes will double by 2030 and one major company in the field, DB Schenker, spoke in defence of the plans at the inquiry.
However, a similar rail-connected scheme – ProLogis’ 2.1m sq ft development at Howbury Park near Dartford – has yet to attract any occupiers after gaining consent two years ago.
Knight Frank’s head of logistics and industrial, Charles Binks, believes that it is difficult to move such developments forward without a massive prelet because of the large capital expenditure needed for the rail infrastructure. “These schemes really need to be allowed to offer flexibility in terms of road or rail connection in the initial stages of occupation,” he says.
There is also a question mark over how many firms need a direct rail connection. Richard Burnett, a business unit director at logistics firm Wincanton, says that most companies are happy to transport containers by road to a shared-user railhead where they can switch to rail. “They don’t necessarily need a railhead within their own site,” he says.
Significant development
If HelioSlough’s scheme does go ahead, opinion is split as to how much of an effect it will have on the local Hertfordshire market. Robin Catlin, director of industrial agency at BNP Paribas RE, says: “It is a significant development in its own right, and will generate spin-off business and economic benefits for areas around it.”
Others are not so sure. Brasier Freeth partner Peter Brown says: “I don’t see much impact on the local market. I think it would act as a separate entity.”
If HelioSlough loses the appeal, many believe that the site is too poorly served in terms of access to make any other development likely.
Aitchison Raffety group director Mark Bunting says: “I can’t imagine offices or even residential on the site as there is already a Barratt Homes scheme in Park Street.”
The green belt status would further restrict possibilities, according to Davies & Co partner Mike Davies. “The site wouldn’t even get on most developers’ radar,” he says.
It’s a hard slog in the markets
Demand in Hemel Hempstead, Hertfordshire’s biggest market, is subdued, say agents, at a time of plentiful supply. Lambert Smith Hampton director Claire Madden says: “I don’t see demand picking up for another 9-12 months.”
Ian McGill, director at Stimpsons, adds: “It’s a hard slog, and we are expecting a difficult year ahead.”
According to Colliers CRE, take-up in Hemel fell 63% in 2009, while supply increased by 29%.
Take-up also fell in St Albans, Stevenage and Welwyn Garden City, but there was growth in Watford. Supply increased in all locations but, unlike in Hemel, agents believe this does not equate to oversupply.
Colliers says that headline rents have fallen, and agents say that occupiers are in a good position to negotiate incentives.
Few agents expect to see much development over the next year, and many believe that it will mainly involve refurbishments, such as the five units totalling 55,000 sq ft that September Properties is developing at its Eclipse scheme in Watford.
