On an international level the fate of Swindon’s motor giant occupiers is cause for concern, but the town itself is poised for action, finds Elaine Cavanagh
One day’s bad news – the shadow cast over the future of Rover, and Honda’s announcement of a temporary 50% cutback in production – has turned into today’s cause for optimism in Swindon.
Word on the ground, according to local agents, is that Rover’s presence in the Wiltshire town looks safe because of its role as a panel-pressing centre for not only Rover but also other clients. And Honda has prompted whoops of joy with the news that it plans to manufacture its successful four-wheel drive model, the CR-V, at its Swindon base.
David Spencer of King Sturge says this proposal is having a stabilising effect. “Good news like that buoys the local economy because Honda is here for the long term. We are also seeing increased activity from Honda suppliers, which want to be nearby to meet orders for just-in-time supplies.”
Such swings in the town’s economic fortunes do not surprise Paul Whitmarsh of Whitmarsh Preece Lockhart. He points to the loss of several of Swindon’s traditional heavy manufacturing industries – Hoechst Trespaphan is closing its 27,870m2 (300,000 sq ft) plant, and Liebert is exiting its 6,503m2 (70,000 sq ft) complex. “But on the other side there is good news,” he says.
Positive moves include three speculative industrial schemes – Slough Estates’ Faraday Park, the IO Centre by IO Developments, and Rushy Platt by Nolana Investments. Newcomer Bookham Technologies recently took 1,579m2 (17,000 sq ft) at Faraday. And the company, which makes semi-conductor systems, plans to take a similar amount of space in a second building.
Meanwhile, more space is set to be released at South Marston Park, where 25.5ha (63 acres) of undeveloped land still exists at the 141.7ha (350 acre) mixed-use business park, now owned by MEPC.
“New industrial development continues to be steady,” says Edward Preece of WPL.
The sectors that are particularly active include IT and communications. And according to Simon Kingsley of Alder King, this year could see the return of the big shed. “We are seeing renewed interest from the distribution sector,” he says.
Swindon’s office market, too, is preparing to take the stage. Cable & Wireless announced in March that it had secured Galileo International’s former regional office at St Martins’ Windmill Hill Business Park. The communications company plans to invest £100m to create one of Europe’s largest web-hosting centres at the 15,500 m2 (167,000 sq ft) complex.
C&W’s investment is by no means the only excitement in an office market which, says WPL’s Preece, is emerging from a “decade of stagnation”.
Taylor Woodrow kickstarted activity last November when it went on-site with its Delta 1200 at Delta Business Park. The 1,858m2 (20,000 sq ft) speculative building, due for completion in June, is rumoured to be under offer, following a best-bid battle, to computer training firm Skillsgroup.
Meanwhile, JLP Business Space – a joint venture between John Laing and the Bank of Scotland – is preparing to develop Swindon’s first business park in more than 10 years. The first phase of 1,858m2 (20,000 sq ft) of the £16m Drakes Meadow has just received planning permission.
WPL’s Preece believes that the office market offers the most potential for future growth, and that out-of-town rents could climb from their present £172-£182 per m2 (£16-£17 per sq ft) to £215 per m2 (£20 per sq ft).
However, he expresses concern about the lack of good-quality land supply, and admits that could hold Swindon back.
Diminishing stock
The town centre suffered from a glut of ageing office stock – much of it produced by Nationwide’s relocation to Pipers Way. Jeremy Sutton from King Sturge says that vacant space was once measured in acres, but now there is barely 27,870m2 (300,000 sq ft) left.
And the fortunes of the town centre are turning. Peter White of Weatherall Green & Smith says: “Allied Dunbar’s decision to occupy 33,000 sq ft at Friends Provident’s Focal Point provided a much-needed vote of confidence for the town centre.”
Refurbishments are also afoot. The Minton Group has spent £500,000 on a facelift for the newly named Minton Place. while the Marchday Group is offering the yet-to-be refurbished Atrium scheme to the market.
Meanwhile, MEPC, new owner of the Brunel Centre, is planning a major upgrade for the retail mall; news on a permanent home for the recently formed Swindon University is awaited; and urban regeneration in the shape of city-centre living is on the agenda.
King Sturge’s Spencer is optimistic. “It is very exciting. The town is on a roll again.”
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Newbury Main players struggle to expand The fight is on for people and places in Newbury as the town’s key occupiers seek to boost their presence. However, the town faces a shortage of office and industrial sites, little significant development having taken place for 10 years. Coupled with this situation, several commercial plots have converted to residential uses – David Wilson Homes, for example, paid £1.3m for land in Bartholomew Street where it is building 46 flats. “We do not have the supply of commercial sites,” comments Jon Varney of Deal Varney. Peter Brunsden of Peter Brunsden & Associates concurs: “Entrepreneurial companies are finding it difficult to expand in terms of jobs and space.” Vodafone’s occupation of its new 51,095m2 (550,000 sq ft) headquarters north-east of Newbury – which has just been given the green light by West Berkshire district council – could free up some space from the telecoms company’s portfolio of more than 50 buildings in the town centre. However, the feared abandonment – flooding the town with empty space – is thought to be a non-starter by local agents. “Most of the properties are on leases with over 10 years to run, so large-scale disposals would be a nightmare,” says Brunsden. He points out that any surplus buildings that did come onto the market would soon be snapped up anyway because of demand. Space-hungry occupiers include Nokia, Marconi and Ericsson. Bayer and some of its subsidiaries have also been busy – pharmaceutical company Schinn took 464m2 (5,000 sq ft) at the Prudential-owned Benham Valence at Speen. And National Instruments Corporation is to take a major slice of Forth House – a new complex being developed by Forth Medical, which will occupy the remainder of the building. New Greenham Park offers the only substantial development opportunity in the area. Outline planning permission exists for 148,640m2 (1.6m sq ft) of new mixed space. Fresh development there was not scheduled until the completion of infrastructure works. However, Stuart Tagg, chief executive of Greenham Common Trust, says that serious interest is already being shown. “There is such demand for space that we are having to bring our plans forward,” he says. |
