Investment confidence in Leeds and its surrounds is robust, according to GVA
The advisory firm has produced the Leeds City Region Confidence Yields Growth report outlining the key factors for strength in the area. The report states the city region, which is made up of 10 local authority districts, generates 5% of England’s total output, at £62.5bn. The City Deal between the government and the local economic partnership was agreed in 2012, giving the region greater control over the levers of economic growth.
The City Region is home to a number of development sites including Leeds City Region Enterprise Zone, and the South Bank in Leeds, one of Europe’s largest city centre redevelopment sites. A key strength is its cluster of the major cities of Bradford, Leeds, Wakefield and York which are becoming hubs for engineering, manufacturing, wholesale technology, healthcare and life sciences. The region is also home to the highest number of academic institutions outside London, with nine universities and 14 higher education institutions.
Through the Growth Deal, awarded in 2014, the local economic partnership is investing in learning facilities which support the LEP’s Strategic Economic Plan, linking employers with education providers. In addition, as part of the City Deal, the Leeds City Region and Central Government have agreed to invest in the Skills Capital Programme, which directs investment to further education colleges and training providers. The LEP has also acquired an additional £20 million from the Regional Growth Fund, allowing it to establish the Business Growth Programme which provides capital grants for businesses. Businesses across the Leeds City Region have already obtained around £100m government funding.
Further investment
There is heavy investment into transport infrsatructure including HS2, York Central Station and strategic new train stations at White Rose Office Park, Thorpe Park and Leeds Bradford International Airport Parkway; city centre regeneration and out-of-town investment opportunities; and the continuing strength of Leeds City Region’s commercial property market.
Ben Hall, regional senior director of GVA in Yorkshire, said: “Against a backdrop of central government’s strengthening policy to rebalance the UK economy, Leeds City Region has worked tirelessly to develop a strong international brand, improve links with the region’s key intermediaries and better understand its core proposition to inward investors and overseas markets.
“Working within the Leeds City Region providing investment advisory services, it is clear that from a commercial property investment perspective, the region has so much to offer to attract occupiers. We can see that through a shared desire to drive forward the largest city region economy outside London, our ten local authorities and the LEP have combined to allocate even more resources to trade and inward investment activities.”
Leeds city centre office market has had more than 600,000 sq ft average take-up pa over the past four years. New developments such as Central Square, Wellington Place and Sovereign Square set benchmarks for grade A development. While 2016 also saw activity fuelled by the growth of technology businesses such as Sky’s enhanced footprint at Leeds Dock and the expansion of Perform Group, the digital sports content and media group owned by the US billionaire Len Blavatnik. Inward investment enquiries are strong with a significant proportion of occupier demand coming from London-based businesses reviewing their property strategies. There are a number of requirements in excess of 50,000 sq ft.
Bradford’s local authority is working with the private sector to deliver grade A office space at The Hub, and Wakefield has completed the regeneration of the Merchant Gate area of the city. Out of town is also performing, according to the report, with rents reaching up to £18.50 per sq ft at Thorpe Park in Leeds, and £16.50 per sq ft in York at Monks Cross.
“Legal & General Capital has every confidence in the Leeds City Region, where there is a chance to invest in property and infrastructure, supporting enterprise and boosting the region.
“We are particularly proud of our joint venture at Thorpe Park in Leeds. It is one of the UK’s premier business parks, attracting international brands like IBM, Atkins and M&S, and we look forward to seeing this go from strength to strength. It is an excellent example of twenty first century regeneration and development in action.
“Our latest £55m commitment in Selby, Leeds City Region, represents a key part of what we are doing to help address the UK housing crisis. We will make innovative modular housing in the largest facility of its kind in Europe. The location and talent pool matches our needs exactly,” said Laura Mason, director of direct investments and urban regeneration at Legal & General Capital.
Jason Greenwood, COO at retailer Mamas and Papas, added: “Our location within the Leeds City Region really works for us, from an operational and skills perspective. We have excellent transport infrastructure on our doorstep along with a solid labour pool within easy reach. We have been based in Huddersfield for over 30 years and are in the process of committing our long term future to the region.”
Historical strength
Manufacturing locations, have been strong in the region, largely due to their critical mass and historical status such as Normanton Industrial Estate and Junction 41 in Wakefield. But the region has many emerging clusters signalled by Universal Components’ commitment to 165,000 sq ft at Ashroyd Business Park in Barnsley, TK Maxx’s commitment to 638,000 sq ft at Cross Point in Knottingley, and John Lewis and Amazon signing up to 130,000 sq ft between them at the Leeds City Region, Aire Valley Enterprise Zone.
New retail schemes have also been developed, such as Hammerson’s Victoria Gate in Leeds, home to the largest John Lewis outside London. Roger Marsh OBE, chair of the Leeds City Region Enterprise Partnership, said one of the reasons Leeds was on the rise was operating costs were 23% less than in the South of England. “It continues to be an exciting time to invest in Leeds City Region. There is now a real window of opportunity for the City Region to become one of the world’s most competitive locations for investment and trade.”
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