2023 Business Predictions: Jason Hercock, Andrew McFarlane Holt and Trevor Wells, directors at Wells McFarlane
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Jason Hercock, Andrew McFarlane Holt and Trevor Wells, directors at Chartered Surveyors and Property Consultants, Wells McFarlane, who present their views on the future of the office, industrial and land markets in 2023…
“It’s unlikely the office market will experience much variation from the past 12 months; the old adage of the high-quality properties attracting interest and tenants will certainly remain true,” says Jason. “This is not only compounded by a shortage of labour and skilled people, but also the rising costs of fuel and living impacting on the workforce’s willingness to commute. Offices in accessible locations with good transport links such as rural market towns will be the most desirable, followed by those on city perimeters or semi-rural locations.
“From a landlord perspective, perception is critical. There’s an oversupply in the market so premises that are modern, energy efficient, flexible enough to facilitate hybrid working, and located in a well-connected environment that stimulates creativity and productivity will be the most in demand, so it’s advisable to talk to your agent about how best to market your property. I’m also starting to see a pleasant rebalancing in terms of freehold office space. Pre-Covid, there were very few available but with the changing interest rates and working patterns, an increase in freehold supply is emerging that could offer businesses alternative options next year,” concluded Jason.
The demand for modern, high-quality units looks set to be the same in the industrial sector, as Andrew explains. “The better quality, thermally efficient buildings, like the Net Zero ready one at Hinckley Park we’ve just launched for IM Properties, will always hold their value and be well sought-after despite market conditions. We must expect the general uncertainty to be reflected in tenant enquiry levels, but in any recession there are still businesses up- and downsizing, meaning activity in the market. In certain areas, and on certain properties, I anticipate corrections in prices will be needed – tenants will be looking for deals and this will be the primary motivation for relocation – but the Midlands boasts excellent transport links and a strong labour pool, so is in a positive position and deals will continue.”
On the land side, despite the announcement from government that housing targets will not be mandatory, there will still be pressure on the housing market, and therefore land supply. Trevor says: “Development land is already in short supply, and these changes are likely to make parcels even more scarce so I expect competition for consented sites will remain strong. The knock-on effect of course is that this likely lack of supply should sure up land prices, and hopefully as we see inflation fall back and interest rates stabilise, mortgage lenders will offer more competitive rates which should once again see sales rates of new homes start to pick up. Getting on with the strategic promotion of land will be more important than ever given the proposed changes to the way local authorities will have to deal with their housing supply numbers, so those with land which may have potential are advised to seek advice or a no obligation appraisal.”
2023 Business Predictions: Christopher Taylor, design director at Marchini Curran Associates
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Christopher Taylor, design director at Marchini Curran Associates.
The industry is dramatically shifting to incorporate sustainability at the forefront of design, rather than paying lip service to it, and this is fantastic to see. We commend our home city of Nottingham for having an inspiring target of being carbon neutral by 2028, two years ahead of the national target of 2030.
For 2023, we predict that our industry will be heavily looking to incorporate high quality sustainable design in all projects, and as a RIBA Chartered Practice, we have a strong commitment to this.
Focusing on ethical and responsible sourcing of materials will also be more important than ever, as will recommending ways to build more efficiently, especially from a thermal perspective, in light of the current financial climate. Industry professionals will also be looking at creative ways of reinterpreting redundant building stock for contemporary purposes, and this is a key focus of our practice.
We plan to continue developing our sustainability credentials across multiple aspects of the business, and our sustainability lead will oversee appraisals, addressing how we can continue to meet and exceed national and global targets, by reducing operational energy and embodied carbon in our buildings.
The only way is up on the sustainability ladder, and it has to be this way – we are excited to see and contribute to the future of the industry by taking necessary environmental action.
Evolve Estates acquires main shopping centre in Northampton
Grosvenor Shopping Northampton is under new ownership after it was snapped up by Evolve Estates, the national commercial property and investment company.
The real estate company, which is part of the M Core group, has added the 319,048 sq ft prime retail, leisure and events destination to its rapidly growing retail portfolio, acquiring it from L&G for an undisclosed sum.
Joe O’Keefe, one of the founding partners of Evolve Estates, said: “We are pleased to have completed this acquisition in an incredibly challenging market, cementing our commitment to continued investment in the retail sector.
“This is one of the largest retail centres to come under our ownership and we’re excited to get to work. We’re already in discussion with numerous tenants who will complement the scheme and the wider Northampton town centre offer.
“It’s also rare to find a scheme like this, with so many positive projects going on in and around it. There are more than £25 million of government-backed development projects immediately surrounding the centre on three separate sites, with Market Square, Greyfriars and the Abington Quarter, plus the Clock House key worker residential scheme. These will provide significant opportunities for us and the town to grow and fulfil its potential.”
The two-storey shopping centre was comprehensively refurbished in 2015 and is anchored by Primark, Boots and Next. Other national retailers include: Office, Superdry, Lush, Pandora, Smiggle, Deichmann Shoes, and River Island. It has an 809-space multi-storey car park, which is owned and operated by West Northamptonshire Council.
Evolve Estates has a UK-wide portfolio over more than two million square metres, and a value of about £340 million.
Private equity firm invests in Indian casual dining restaurant group
TriSpan, a global private equity firm, has invested in Mowgli Street Food, an Indian casual dining restaurant group with sites in Nottingham and Leicester, through Rising Stars, its dedicated restaurant program.
The founder and management have maintained a significant interest in the company with Nisha Katona MBE, the founder, continuing to lead the group as CEO in its next phase of growth, supported by TriSpan and the board. Matthew Peck and Lucy Worth will continue in their roles as CFO and COO respectively.
Robin Rowland OBE, TriSpan European Operating Partner will chair the board. Dame Karen Jones, current chairperson, will remain on the board as a non-executive director.
The first Mowgli restaurant opened in 2014 and it has since expanded to 15 sites nationally.
The group has confirmed plans to open sites in Brighton, Bristol, Edinburgh in 2023, and is actively reviewing other expansion opportunities around the UK.
Nisha Katona MBE, founder of Mowgli, said: “Founding and growing Mowgli has been an unremitting joy for me. I soar with excitement when I think of the future possibilities for Mowgli and the way the public and our teams have embraced our food and our brand.
“TriSpan understands the elements that have made Mowgli, her food and her culture worthy of this affection and loyalty. They get it and always have, and I look forward to sharing the board table with colleagues that are committed to continuing to grow Mowgli with this delicious integrity at her heart.”
Robin Rowland, chairman, added: “I have admired Mowgli for a number of years and am looking forward to working alongside Nisha and her proven management team and strong board to continue the evolution of this unique and loved brand, delivering authentic, fresh and exciting Indian cuisine.”
Commenting on the opportunity to support Mowgli, TriSpan partners Fady Michel Abouchalache and Joseph Patrick Dib said: “We are proud to have been given the opportunity to partner with Nisha and her exceptional team during its next phase of growth.
“We are very excited at the prospect of bringing more Mowgli restaurants and their distinctive approach to Indian cuisine to more and more cities across the UK. This investment is once again testament to TriSpan’s commitment to the sector, especially in the face of the difficult macroeconomic environment present in the UK and globally.”
This is TriSpan’s tenth restaurant investment globally, and its fourth in the UK, following previous UK investments in Pho, Rosa’s Thai Café, and Thunderbird Fried Chicken. Debt financing for the transaction has been provided by OakNorth Bank. Terms of the transaction were not disclosed.
Warm reception for new manager at Nottingham Venues’ Orchard Hotel
Nottingham Venues, the brand behind meetings, events, hotel stays and a collection of venues across the University of Nottingham’s campuses, has appointed Peter Bartlett as hotel manager at their Orchard Hotel venue.
Bartlett joins a growing team at the hotel and the wider group (nearly 250 employees) from the DoubleTree by Hilton, where he recently oversaw a £6m refurbishment of one of their West Midlands venues during the pandemic.
With over 20 years in the hospitality industry and having worked in France, America (Long Island) and London, Bartlett brings a wealth of experience to the role as the business continues to build on a resurgence in business post-pandemic.
Peter says: “This is a very exciting time to be joining the group as they have transitioned from being part of a major organisation in terms of De Vere into a thriving independent brand incredibly well.
“This has been against a backdrop of huge uncertainty and challenges for the industry but Tom and his team have shown incredible vision to hit the ground running since last summer and are now reaping the rewards of a carefully managed process.
“As well as having a firm focus on putting our customers first, I am looking forward to continuing the development of the growing team here at The Orchard Hotel and helping to forge a fantastic culture in the hotel and as part of the wider business.”
General manager of Nottingham Venues, Tom Waldron-Lynch says: “Peter brings a wealth of experience to our growing team, both from his previous role and his wider global experience in the industry. His involvement in the major refurbishment programme at DoubleTree and the associated changes required within the team and the customer experience at his previous venue is also invaluable as we continue our own journey.”
Stockyard appoints new head to level up
Jay Cooledge has been appointed as head of the Stockyard in Melton Mowbray, Leicestershire.
His appointment comes at an exciting time for the unique food and drink destination in the Rural Capital of Food after news that it will be receiving Levelling Up Funding from the Government.
The funding will support development of additional food production units and events space at the Stockyard in the town’s Cattle Market – building on its reputation as a site for food and drink producers to manufacture and sell their artisan products and a visitor destination for food and drink lovers.
Jay, a former East Midlands Entrepreneur of the year (2016), has a wealth of experience in the food and drink and hospitality sectors, having helped to build up and run The Griffin Inn and the Old Stables in Swithland in Leicestershire as a family business. More recently he was marketing, sales and events manager in Dickinson and Morris’ Ye Olde Pork Pie Shoppe in Melton.
Jay and his team will be responsible for bringing new tenants, stallholders and events to the Stockyard, driving visitor numbers and delivering the levelling up development.
Hugh Brown, CEO of Gillstream Markets Ltd, which operates the site, said: “We are delighted to have Jay on board. He has an extensive background in catering and hospitality and shares our vision of delivering a regional destination in Melton Mowbray.”
The Stockyard, located in the old livestock market sheds, provides a unique space for food and drink producers to manufacture and sell their wares in the heart of the Rural Capital of Food. It hosts a number of food and drink festivals through the years attracting thousands of visitors from all over the country.
It is already home to a number of artisan producers and retailers including the multi award-winning Round Corner Brewing, Melton Premium Craft Distillers, along with butchers, bakers and pork pie makers. Smoked food specialist Feast and the Furious is also about to open.
The Levelling Up Funding will support the creation of a Hub at the Stockyard to provide an area for food production, education and support services for small or upcoming producers, networking opportunities for local producers and a café for visitors. In addition, under-used, dilapidated buildings and sheds will be converted into smaller food production units for local food and drink businesses, where production activity can be part of the visitor experience.
Jay said: “I am very pleased to be joining the Stockyard at such an exciting time and look forward to helping to deliver these inspiring plans which will benefit the whole town and attract more visitors to the area, boosting the local economy.
“I’m from both a small business background and a catering and hospitality background, and I am passionate about supporting and incubating entrepreneurs working in this sector. This is perfect timing for us to lay the foundations and be ready as a shining beacon when the economy picks up.”
The Stockyard, working in conjunction with Melton Borough Council, is part of the wider Food Enterprise Centre in the borough, building on the rich food heritage of the local area. Melton Mowbray is the home of the pork pie and Stilton cheese. And for hundreds of years, Melton Mowbray Market in its various guises has played a key role in the ‘farm to fork’ story.
Today it has markets on Tuesdays, Fridays and Sundays, plus many special events and festivals.
Engineering company reports record year
One of Lincolnshire’s largest engineering companies has reported that 2022 was its best-ever year.
GAME Engineering, which is based at Witham St Hughs, saw sales top £40 million in 2022.
The company was founded in 1986 and employs 70 people across two divisions: material handling and process design and custodial.
Of the record sales, £26 million was secured by the custodial division, with projects ranging from minor repairs to new build turnkey projects and major refurbishments. The custodial division was introduced in 1999 and works with His Majesty’s Prisons, police forces, secure hospitals and financial institutions.
“2022 was a challenging yet successful year for us, and I have to thank our team for all their hard work and commitment. Without them delivering to a consistently high standard, we could not have earned the trust of our clients,” says Stuart Hasler, custodial director.
“On the custodial side of the business, it was very pleasing to see us win work in all four UK nations, with projects ranging from just a few hundred pounds to more than £5 million and spanning everything from a simple repair all the way through to major new build and refurbishment projects.
“2023 has started in the same way as 2022, and we are very pleased to have won a variety of projects, including work that will be undertaken in 2024 and 2025.”
The success of the custodial division is mirrored by the performance of GAME Engineering’s material handling and process design team, which received its largest ever single order. The seven-figure project saw GAME designing and building a process plant for blending and packing grass seed.
“2022 was a fantastic year for us,” says Adam Conroy, project sale director. “As well as winning our largest ever order, at the end of the year, we were also awarded a contract to design and install all of the process equipment within a new factory producing animal feed. It’s a significant project for us and represents a great start to 2023.”
Local flooring business makes strides with substantial growth
Leicestershire-based flooring specialist Floorstock is marking a year of substantial growth – achieving a 170% increase in sales revenue online in the last 12 months, with an overall 35% increase in sales across the board since 2020.
The business, formed in 2008, has invested heavily in its online presence in the last two years – increasing both sales and visibility substantially. Its success follows an influx in demand for interior based products and a desire for consumers to upgrade their homes succeeding the Covid-19 pandemic.
In particular, the firm has seen a boost in sales for trend-led flooring styles such as herringbone wood flooring and custom floors, following the announcement they were appointed to be the UK distribution partner for Whiteriver, a leading UK flooring supplier.
As members of the Contract Flooring Association (CFA), the firm supplies a wide range of flooring products including solid wood flooring, engineered wood flooring and vinyl to trade and consumers, alongside all the accessories, tools and maintenance products required for installation.
Wayne Haslam, sales director at Floorstock, says: “The success we’ve had in the last 12 months is a real testament that hard work really does pay off. Despite various setbacks including price increases, supplier delays, and raw material shortages due to the ongoing war in Ukraine, Brexit and the after effects of Covid-19, we have managed to keep regular supplies of our best-selling materials and ensured our customers are well looked after during their busiest periods.
“Due to the economic climate, it is hard to predict what the future holds, however we are looking to focus on our core strengths – providing the very best levels of stock, service, and support to our customers.
“We continue to keep our pricing competitive, whilst holding maximum stocks for next working day delivery. Customer service is of paramount important to us as a business and we are incredibly grateful to our current customers for the ongoing support we receive.
“We have many exciting plans in the pipeline which we’re looking forward to announcing this year.”
Mansfield Connect project will provide ‘economic stimulus’ to the town centre
Partners, businesses and the Mayor have shared their excitement, visions and hope about the latest regeneration project planned in Mansfield.
Mansfield District Council recently found out it had been successful in its bid to the Levelling Up Fund and was one of only four projects in Nottinghamshire to be awarded the money. What these funds can be spent on are ring-fenced to regenerate and level up towns and cities across the country.
The newly-awarded £20m will see the former Beales building revitalised into a multi-agency hub – Mansfield Connect – that will house key partners in the district, including the NHS, Vision West Nottinghamshire College and Mansfield CVS. The project is being led and facilitated by the council.
As well as public sector provisions in the building, there will also be the opportunity for private sector spaces available for investment.
Jay Rowlinson, Chief Executive at Mansfield BID, shared his support for the Mansfield Connect project.
He said: “The impact the hub will deliver to our local businesses is two-fold. We will see an increase in footfall in the town centre, by having the one-stop shop for health care, council services and education.
“Also, our businesses will further reap the benefits with the staff and visitors using their eateries, shopping with them for goods and enjoying what the town offers. Bringing a building that has stood empty in a prime location back into use for the public can only be a good thing for our town.”
The Mansfield Connect scheme forms a vital part of the council’s ambitious long-term town centre regeneration plans, and it is hoped the repurposing of the building will then have a knock-on effect, stimulating the local economy and encouraging private-sector investment into the wider Mansfield district.
Vanessa Whitton, Chief Executive of Mansfield CVS explained the project was essential in giving people another reason to come in to the town centre.
She said: “The idea of us all connecting in this project is brilliant, it brings all services in to one place with the view to spread it across the district wider – but we have to start somewhere.
“It is important there is a reason to come to the town centre, if we don’t have that we could lose it. We need to make Mansfield town a place where people want to live, work and socialise, and having this as a focal point will help that.”
The council was successful in being awarded the full bid of £20m for this project during the round two of applications. The major investment announced by the government included an allocation of £1.7 billion to 105 projects from round one of the Levelling Up Fund in 2021– taking the total allocated so far from the fund to £3.8 billion.
David Ainsworth, Director of Strategy and Partnerships at Sherwood Forest Hospitals NHS Foundation Trust emphasised the multi-agency hub will create aspiration in the next generation.
He said: “I’m delighted for our local community that we have managed to get this funding. It is a brilliant initiative and health is right in the middle of these plans.
“Just down the road, we have also been lucky enough to get at least £20m of funding to build a community diagnostic centre. You can see the regeneration of the Mansfield town both with the levelling up agenda and our new centre. There is a real opportunity to create local jobs for local people and give our children and young people some hope and aspiration for this area.”
Elected Mayor of Mansfield, Andy Abrahams, emphasised residents are at the heart of the project’s ambitions.
He said: “This building will be transformed into a multi-agency hub, and yes, will house the district council, but it will also be home to our partners so we can deliver services for residents in a coordinated and direct way – a one-stop shop.
“The council has a history of bringing old and derelict buildings back to use for the public when private investments have otherwise failed.
“The White Hart Street area sat disused and an eye-sore for multiple years, and now we have been able to fund a new multi-million residential development. The general hospital site was derelict for a quarter of a century, but the council took the site on and created our housing with care provision, now called Town View. Now, here we are, taking proactive action on Beales.
“We are demonstrating civic leadership to take the reins of this failing market building that otherwise would have represented the decay of the town centre.”
Mansfield MP Ben Bradley said: “The truth of the matter is, if we don’t intervene with this kind of funding from local stakeholders it will just be left – it is not a commercially viable building to invest in.
“It’s really important that we bring it back to life with multi-agency use, services, businesses, leisure – all sorts of stuff in the town centre – and reviving Stockwell Gate, which can only be a good thing for the town and regeneration.”
Health and education services as well as spaces for private sector opportunities are also key players in the Mansfield Connect project.
Tom Glynn, Director for Retail Development at Colliers, added: “Public sector leadership in re-purposing challenging large former town centre retail units is essential in the current market.
“Mansfield Connect proposals will create direct new footfall from both staff operating from the building as well as visitors using services which in turn creates private sector confidence and new investment.
“This will be a great stimulus for Mansfield town centre.”
Long Eaton project scrapped to secure and enhance other regeneration schemes
Richard Ledger, chairman of the Long Eaton Town Deal Board, has backed a decision by all members to cancel the proposed £6.93 million Derby Road junction project in favour of securing and enhancing other regeneration projects.
Due to the complexity of the issues around these junctions and the current exceptional inflationary pressures, it has not proven possible to design a Derby Road Junctions project that is value for taxpayer’s money.
It is proposed that the funding will instead be reallocated to secure three other key projects; Long Eaton High Street, Long Eaton Walking and Cycling Network, and the Stable Block Managed Workspace. This will include:
- An additional £3.43 million for the High Street project which will see a redesign and upgrade of the High Street with the aim being to enhance the public space by making it a more sociable space with seating and planting. The reallocated funding also enables an expansion in scope to include Tamworth Road.
- An additional £2.96 million for the walking and cycleway improvements which will include lighting along the cycleway within West Park and replacing the bridge which connects West Park to the town centre, as well as the construction of a new bridge on Britannia Road.
- An additional £540,000 for the Stable Block which will see the conversion of a former Stable Block next to Long Eaton Town Hall into modern office spaces and studios.
