Future development in Burton upon Trent is likely to be on edge-of-town sites, writes Paul Strohm.
The increased importance of the A38 and A50 and the arrival and subsequent expansion of Toyota at Burnaston have improved the fortunes of Burton upon Trent.
Guy Dixon of Wilson Orridge says that he has noticed a renewed confidence in all sectors: “The evidence is in the amount of activity on the industrial and retail fronts . . . there’s a shortage of prime space in all sectors and prices have started to increase gradually.”
The town is still dominated by brewing, and supports essentially local office and industrial markets – with some notable exceptions; Pirelli, Johnson Controls and Robirch. Future large-scale, or even medium-scale, investment in the town is likely to be forced to sites on the edge of town or in outlying areas.
There is no shortage of contenders. The first was Bass Developments’ Centrum 100. In addition to the new Bass headquarters building, the first phases of the site were dominated by retail. After a Wm Morrisons superstore opened in October 1994, Dixons, Homepower and a McDonald’s drive-thru restaurant all began trading last Easter. B&Q is believed to be interested in the remaining retail space. Also on the site, a deal has been done with a care-home group on 1.62ha (4 acres); discussions are under way with a Holiday Inn franchisee for a hotel; and agreement has been reached with a motor dealer for a main agency garage.
The bulk of the development’s 40ha (99 acres) remains for B1, B2 and B8 development. Bass recently obtained detailed planning consent for a 27,870m2 (300,000 sq ft) high-bay distribution building on 6.07ha (15 acres). This, says Philip Hickman of Rushton Hickman Partnership, joint agent with Hillier Parker, is the only consent of its size in the area.
Bass is considering speculative development, although 18,580m2 (200,000 sq ft) could be snapped up by one of three distribution companies competing for a local contract. Hickman says that if it is not crucial for a company to have a motorway location, the A38 is an accessible trunk route and Burton competes on land cost – quoted at £432,419 per ha (£175,000 per acre). “For anyone in Birmingham, the A38 is still the fastest route to the North,” Hickman claims.
Other new roads and large development sites are also emerging. Near Hilton, to the north-west of the town, Conder developments is completing infrastructure for the 80.94ha (200 acre) Dove Valley Park on the newly streamlined A50, which links the M1 and M6 respectively at Derby and Stoke. The first phase of the scheme, comprising 44.52ha (110 acres) has consent for 139,350m2 (1.5m sq ft) of business space. Phillip Randle of Salloway & Associates, joint agent with Chesterton, says that negotiations are under way with a number of mainly distribution companies. “The link road will make a vast difference – access is greatly improved,” says Randle.
Nearby, St Modwen is developing the MOD’s former Hilton Depot. The first 18.21ha (45 acre) phase of housing land has been sold and the first employment land is on the market. To the north of Burton at Clay Mills, Blue Circle industries is about to sign a joint development agreement with an as yet unnamed developer to provide 28.33ha (70 acres) of commercial, residential and leisure space. At nearby Stretton, NFC Properties is in the process of relaunching the 4.45ha (11 acre) Stretton Business Park through Salloway & Associates.
To the south of the town is the 48.56ha (120 acre) Barton Business Park, which has scope for a railhead. Dixon says that 16.19ha (40 acres) has been shortlisted by a US company here. To some extent, this competes with the already established 93ha (230 acre) Fradley Park, being developed by Evans of Leeds subsidiary Lichfield Securities further down the A38 near Lichfield. Here, too, is a mix of offices, industrial and distribution space. Consent to develop another 140ha (346 acres) has just been granted. Agents are Kingston & Partners and Grimley. To the south-east of Burton, at Swadlincote, RJB Mining has a 32.38ha (80 acre) open-cast mine. Now almost exhausted, there are plans for a mix of B1, B2 and B8 development, as well as a new spine road linking Swadlincote with the A444. The first 16.19ha (40 acres) is available immediately.
Randle says that local industrial companies have a tendency to develop their own spaces. On Wellington Street, Lycett Industries’ premises have been broken up and 1.71ha (4.2 acres) sold to Russell Roof Tiles which has a further 0.48ha (1.2 acres) under offer; the sale of 0.32ha (0.8 acres) to Pioneer Concrete has been agreed, and local businesses and a developer are to buy the remaining 1.82ha (4.5 acres). Salloway & Associates was agent for Coopers & Lybrand, which is joint administrative receiver of Lycett Industries.
The lack of speculative development leaves a gap when a tenant does emerge, particularly in the office market which in Burton itself is dominated by residential conversions and space over shops. Paul Rushton of Rushton Hickman Partnership comments: “Even 10 years ago Burton did not have an office market. The advent of the service industry meant developers refurbished buildings as offices, but the majority is refurbished space and there is nothing available of any size. We recently had an inquiry for 2,787m2 (30,000 sq ft) and haven’t a hope in hell of finding anything immediately available.”
While a small, locally targeted office development could take place at Centrum 100, Horninglow Street is becoming an important area for professional firms, not least estate agencies. The bulk of Ednaston Developments’ 6,503m2 (70,000 sq ft) Anson Court, a multi-let scheme chiefly comprising refurbished buildings, is now let. Almost directly opposite, developer Startline has bought the former Travis Perkins builders’ yard, although its main intention is to create parking space to serve Horninglow Street.
In general, Burton’s retail strength is undiminished. According to Dixon: “Traders had the best Christmas on record. Existing town-centre food retailers were expecting a deflection from Wm Morrisons and the new Tesco, but they have recovered completely and are trading well.” About two-thirds of Burton’s retail space is under cover and the three shopping developments – the Octagon Centre, Cooper’s Square and Worthington Walk – provide a virtually continuous mall.
Pensman Nominees has completed extensive upgrading of the 34,512m2 (371,500 sq ft) Cooper’s Square with the letting of an 80-seat coffee court in the central area to baker Hindleys, which has also taken a nearby unit. New tenants include Dunn & Co, Halifax Building Society and Game, while River Island and Abbey National have taken larger units. Zone A rents range between £753.50 per m2 and £861.14 per m2 (£70 per sq ft and £80 per sq ft).
Jonathan Brown of Nelson Bakewell, letting agent for the Octagon Centre, says that at Christmas 140,000 people per week passed through. Recent lettings have taken place to Sam Goody Records – a zone A rent of £430.57 per m2 (£40 per sq ft) was achieved – and Hines Jewellers. Brown is finalising terms with Mercer Sports for a unit in the West Mall – the retailer is relocating from Cooper’s Square – and now only one unit is not trading. “We’ve seen a marked pick-up with the likes of Hines, the only multiple jeweller in the town, choosing to come to the Octagon Centre,” he says.
Key transactions
- Derwent Industrial Park: Industrial. The freehold of the 359m2 (3,864 sq ft) former Elsym unit has been sold to Holfield plastics for £80,000. Wilson Orridge acted for the vendor.
- Horninglow Street: Offices. Resin Trade has taken a 186m2 (2,000 sq ft) suite at Ednaston Developments’ Anson Court and is believed to be paying a stepped rent averaging £91.50 per m2 (£8.50 per sq ft). Rushton Hickman is letting agent and Salloway & Associates acted for the tenant.
