The region’s dynamism and growing confidence means more interest and investment in less traditional areas. At MIPIM UK, a number of cities are showcasing some exciting new projects
After a Scottish referendum saga that saw Westminster commit to a string of devolution concessions, northern England is eager to prove to the rest of the UK that it boasts several dynamic regions with the economic and political strength to run their own affairs.
The North has so far proven itself extremely well-placed to soak up excess investor and occupier demand from the South East.
In Q2 2014, northern cities made up well over 50% of regional urban take-up in the UK, while investment in Manchester topped £1bn for the first time.
The city achieved a regional first when NFU Mutual cut a deal in September to pay a 5% yield for the Chancery Place office block, redefining prime in the process.
And investors are gaining confidence in more experimental areas of the North, with the Chinese government backing the £60m New Era development in Sheffield.
At MIPIM UK, the Northern cities are attempting to make a clear show to the world of their newfound spirit of co-operation, with a collection of city regions and partnerships coming together to create unified offerings that can compete with the impressive demographic and economic arguments of the central London boroughs.
Leading the way will be the Manchester at MIPIM partnership, exhibiting alongside Liverpool in another show of unity between the North West’s two economic powerhouses.
Supporting the pair will be MIDAS – Manchester’s inward investment agency – Bolton council, Stockport council and Cheshire West, with the Manchester city region again putting on the largest showcase of the North’s property offering.
As well as the region’s more well-known projects, the partnership is keen to emphasise the diversity of mid-sized developments around the region. A particular focus will be given to the 300,000 sq ft Baron’s Quay retail development and the 500,000 sq ft City Place office project, both in Cheshire. The 400,000 sq ft Stockport Exchange – which councillor Patrick McAuley thinks is emblematic of “the growing confidence in our borough” – will also feature prominently.
Meanwhile, Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland councils, backed by the North East Local Enterprise Partnership, have come together for the first time to exhibit alongside 12 private sector partners as Invest North East. Its remit is to sell the region’s industrial recovery as an alternative to the North West’s traditionally strong marketing offer.
Newcastle council leader Nick Forbes said: “It’s very clear we have the most centralised economic system in the western world. It’s that economic stranglehold on our cities which prevents us from growing. For too long our city regions have been overlooked when it comes to economic power.”
The primary schemes to be marketed include the 1.8m sq ft Newcastle Science Central and the 900,000 sq ft Quorum business park.
In Sheffield, the city region LEP is exhibiting its 1.2m-strong talent pool offering, multimodal infrastructure and enterprise zone allocations to attract new investors. Most of the schemes being showcased are out-of-town office projects or industrial parks – capitalising on the region’s low warehouse labour costs. But a number of glossy city-centre projects will also feature, particularly in Sheffield, such as the 100,00 sq ft second phase of the Sheffield Digital Campus.
The 700-acre strategic rail freight interchange at iport in Doncaster, the 50-acre phase two of the grade-A office offering at Sheffield business park, and the 83-acre Bolsover business park are all high up the partnership’s marketing agenda at MIPIM UK. Also receiving special attention will be the 164-acre Robin Hood airport business park, the 200-acre Markham Vale industrial and business park and the 40-acre mixed-use Waterside project in Chesterfield.
Sir Howard Bernstein says he wants to see a much more joined-up approach to transport, business opportunities and strategic thinking. MIPIM UK looks like the first concerted attempt to show that the northern cities are coming together.
chris.berkin@estatesgazette.com
