Question: what do adventurer and TV presenter Bear Grylls, BBC’s Top Gear, intrepid duo Ben Fogle and James Cracknell and a crack property development team have in common? Answer: they’ve all used the climate change chambers at MIRA to train for expeditions.
MIRA, once known as the Motor Industry Research Association, is now a private company specialising in vehicle testing and development, based in Hinckley, near Nuneaton.
Until recently, the 830-acre MIRA site was best known for its highly secure testing facilities, including road circuits and climate simulators. That changed when it zoomed onto the commercial property scene, with ambitious plans for its 1.8m sq ft MIRA Technology Park (MTP).
Last month the site, one of the new generation of enterprise zones, was given the planning go-ahead by Hinckley and Bosworth and North Warwickshire borough councils. Work is expected to start before the end of the year on what is now one of the largest development schemes in the region.
Specialist expertise
The speedy progress so far is no accident. Acknowledging that its engineering background was not necessarily the best credential for property development, MIRA cannily brought in specialist expertise.
In 2010, it reunited key players from former Midlands-based developer Stannifer, bringing in development director Andy Macdonald to spearhead the £300m MTP project, with MIRA’s strategic property adviser, industry heavyweight and one-time Stannifer managing director John Shaw (see below).
Macdonald explains the reasons for his arrival: “The site’s been full for the past few years. But the buildings are outdated and slightly disparate. This is not the image we want to portray. We need new development that is more integrated.”
At present, more than 30 tenants, including Toyota, Triumph, Pirelli and Land Rover, occupy around 500,000 sq ft of space, one-third of the total land available. MIRA occupies the remainder.
MTP plans to develop two parts of the estate – the tenanted 70-acre South Zone, which fronts the A5, and the 60-acre secure area to the rear of the site, known as the North Zone. MTP will create a campus housing specialist hybrid buildings that will replace outdated infrastructure, along with central amenities – including a 100-bedroom hotel and ancillary retail, leisure and restaurant facilities.
In addition, a centrepiece is planned between the two zones – a 538,000 sq ft engineering centre for MIRA’s own use. The entire development will be phased, with final completion set for 2021.
Half the site’s stock will be replaced by development on the MTP. The bulk of new space (around 1.2m sq ft) will be B1 office and research & development facilities, split between around 25 properties, and will be available for external tenants. Buildings will range in size up to 130,000 sq ft. Infrastructure is a vital part of the project, on and off site. Last November, MIRA received a £19.4m boost from the Regional Growth Fund as a contribution towards road and other infrastructure changes. These include a much-needed upgrade of the A5 dual carriageway, a new main entrance to the site and a new duelled entrance and roundabout on the A5. Macdonald adds: “This is crucial for the development, its accessibility and for job creation.”
The second entrance will open up the first phase of development to the west of the South Zone, at the front of the site. All infrastructure upgrades will be completed within the next three years, and Macdonald confirms that work is due to start soon.
Potential occupiers
MTP is now turning its attention towards potential occupiers. Matthew Smith, director at Jones Lang LaSalle, expects demand to come from MIRA’s highly specialised customer base.
“MIRA is a world-class test facility, and the EZ status will further enhance its potential to attract new occupiers and retain existing ones. The automotive industry is well known for co-location, with multiple manufactures and related parts suppliers clustering.”
Smith believes the site will have little effect on the region’s wider office market because he anticipates the majority of demand will be specific to MIRA, and less likely to be in competition with other sites in the region.
Marketing started last December, and Macdonald claims he is working on 45 leads, a handful of which are close to agreeing terms. He says: “We’re cherry-picking who comes on to the site. There will undoubtedly be international companies. We could open the first space in early 2014.”
Before that happens, MTP needs to finalise the funding-and-delivery strategy before the start of construction of the first phase. Although MIRA has financed the project to date, it is now looking to share some of the development costs.
“We’re looking for an investment/development partner for £30m-£50m worth of investment so we can develop out the site,” Macdonald says. “We’ll also tap into institutional funding.”
No names are yet in the frame, and he says discussions with potential candidates have yet to start in earnest. Macdonald adds: “The big costs will ramp up by the start of next year, so we’ll certainly have a partner by then.”
MIRA financials
MIRA had a bumper year in 2010, making a pre-tax profit of just over £1m on a turnover of £37m – more than double the level of the previous year. Turnover for 2011 is expected to have risen to £41.7m, and the company has a longer-term goal of reaching £100m annual turnover. Foreign income is likely to increase from a level of 18% to around 40% in the next few years as the company expands its engineering services and undertakes internet expansion.
MTP who’s who
Andy Macdonald: As development director for MIRA Technology Park, Macdonald overseas the day-to-day running of MIRA’s property arm, which was set up in 2010. Macdonald’s 20-year-long property sector experience includes stints at Edinburgh-based agent Montagu Evans, Stannifer Developments (where he helped to deliver Aberdeen’s Union Square), Multiplex Developments and Stockland – one of Australia’s largest diversified property groups.
John Shaw: Shaw is a seasoned property veteran, having started his career more than 30 years ago at East Kilbride Development Corporation in Scotland. He then became a founding director of Scottish Enterprise. In 1995, he joined the Stannifer Group as managing director and led the operational team that completed more than 3m sq ft of retail-led development in the UK and the Czech Republic. Between 2006 and 2008 he was one of four chief officers with Abu Dhabi-based investor Aldar Properties.
Brian Reid: Reid is head of project management at MTP. In 1996, he joined Stannifer Developments as the director responsible for the project management and delivery of development throughout Scotland and Northern Ireland, across all sectors.
Richard Breese: Breese leads the financial modelling and forecasting for the MTP project. The former banker and chartered accountant joined Stannifer in 1998.
Stratford-upon-Avon based developer Stannifer was launched in 1991. More than a decade later, the firm was sold to Chelsfield, which was later taken over by Multiplex, Westfield and the Reuben brothers in a £2.1bn deal.
Did you know?
MIRA is home to the largest automotive technology park in the UK. The entire MIRA site covers 830 acres, and sits next to the A5. The majority of the site is taken up by test tracks.
There are more than 35 major laboratory facilities at MIRA, including two climatic wind tunnels that allow vehicles to be driven in conditions ranging from those found in the Sahara desert (50°C) to an Arctic snow storm (-40°C).
It is home to Europe’s only Intelligent Transportation Systems Proving Ground. This wet and dry circuit enables the development of systems that will make transport safer in the future.
MIRA is active in the defence sector, engineering vehicles to make them safer for front-line troops.
The fastest lap time for MIRA’s high-speed circuit was set by a McLaren F1 road car in 1996. The car completed the 3-mile circuit – with three super-elevated bends – in less than 60 seconds, at an average speed of more than 180mph.
