< Previous10 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Accountancy firm secures private equity investment Dains Accountants has secured significant investment from Horizon Capital, the private equity investor specialising in technology and business services. With almost 200 staff, Dains provides services to 4,000 fast-growth businesses, international companies and high net worth individuals helping clients achieve their goals through audit, tax and business advisory and support services. The market that Dains operates in is highly fragmented and driven by strong tailwinds due to increasing levels of compliance and sophistication, as a result of which a growing proportion of clients are outsourcing business-enhancing tasks to expert providers. Dains has delivered growth through the COVID-19 pandemic. Horizon Capital have invested significant capital to expand these capabilities further and to enhance this through high quality acquisitions. The partnership with Horizon will enable Dains to continue to build on the momentum already created following recent acquisitions. Richard McNeilly, managing partner of Dains, said: “This is an exciting time for Dains, our clients and colleagues. We are delighted to be partnering with Horizon Capital who have a strong track record in supporting companies such as ours to accelerate both organic and acquisitive growth. Dains has grown in recent years thanks to the hard work of our colleagues and the support of our clients, and we look forward to building on that success with this investment.” Chesterfield IoT software company raises £2.1m A Chesterfield-based business which aims to transform industry with its internet of things software platform has raised £2.1m to accelerate its international expansion. Konektio received funding from both the Midlands Engine Investment Fund (MEIF) and Northern Powerhouse Investment Fund (NPIF), managed by Mercia and Foresight Group, along with existing investor Tern plc. The funding will allow Konektio to further develop the product, boost its sales and marketing team, create a number of new highly skilled roles at its headquarters, and grow sales in international markets. Konektio’s main product AssetMinder enables companies to connect to and monitor assets, ranging from individual components to turbines in remote locations or assets across an entire factory floor. The technology gathers data from the assets, allowing users to make informed decisions on maintenance and servicing, reducing downtime and energy usage and improving efficiency. AssetMinder, which was commercially launched just over two years ago, is now used across multiple sectors from food processing and manufacturing to logistics, energy and water industries. Konektio clients include maintenance and repair operation Dexis, GCE Healthcare, global engineering company Howden and gas turbine manufacturer Centrax, among others. The company, which was previously known as InVMA, was founded by Patrick Nash, Jan Hemper and Jon Hill, who recognised the need for the software due to their work as industrial IoT consultants. It now employs around 20 staff at its headquarters in Chesterfield and has recently opened an office in North Carolina. Peter Stephens, CEO of Konektio, said: “Companies have started to cut through the confusion around digital manufacturing and the next industrial revolution and now share a real appetite to see how the intelligent use of data can deliver returns on investment. “This is really good news for our business, and we are looking to capitalise on this trend by investing significantly in product development, R&D and expanding our global customer base. The investment secured will help us achieve these goals.” New low carbon growth fund launched Small and medium-sized businesses, public sector organisations, and community groups developing low carbon projects across Derby, Derbyshire, Nottingham, and Nottinghamshire are being urged to apply for investment through the D2N2 Local Enterprise Partnership’s new low carbon growth fund. The D2N2 low carbon growth fund, which is now open to applications, will invest £6.5 million in low carbon capital projects to create a pipeline of investable propositions which can be match funded to help our region meet challenges around high carbon dioxide output and unclean industrial practices. Through the funding the D2N2 LEP aims to support a wide range of innovative low carbon projects from across Derby, Derbyshire, Nottingham and Nottinghamshire. Successful projects must be able to clearly demonstrate current or future carbon reductions through carbon sequestration. Projects awarded funding will be encouraged to support local supply chains, helping to create new jobs and must be able to start delivery in the 2022/23 financial year. Funding will be capped at £1.5 million of D2N2 funding per project to enable the pot to invest in numerous key strategic investments. Elizabeth Fagan CBE, chair of the D2N2 LEP, said: “The recent COP 26 UN Climate Change Conference in Glasgow highlighted the urgent need to take action now. The launch of our Low Carbon Growth Fund signals our region’s ongoing commitment to reduce carbon emissions and support the growth of our green economy. “Investing in low carbon capital projects will support the delivery of our Recovery and Growth Strategy and our strategic aim of delivering the UK’s largest carbon turnaround.” L-R: Jon Hill, Peter Stephens, Pat Nash and Jan Hemper Richard McNeilly 06-15.qxp_Layout 1 10/01/2022 08:35 Page 5HR consultancy expands health & safety provision with acquisition A HR services consultancy has made its largest acquisition to date, while strengthening its position in the Health & Safety sector. HR Solutions has significantly expanded its reach in the field by bringing Essential Safety on board – a health & safety and fire safety consultancy, with a team of 12. Essential Safety is an established Health & Safety consultancy with offices in Corby and London. Its team of experienced and IOSH qualified consultants support and advise clients in a broad range of industries and sectors, including construction, education, manufacturing, warehousing and distribution. Greg Guilford, CEO of HR Solutions, said: “Essential Safety has an excellent reputation in the Health and Safety sector due to the expert knowledge of its consultants and its dedication to clients. “As a result of this, the company has secured larger corporate clients, as well as working with SMEs. The company’s 25 years’ experience and its expertise compliments HR Solutions’ offering, having recently launched its Health and Safety division in 2020. “This is a great opportunity to work with a like-minded business that has service delivery and client satisfaction at the heart of what they do.” The acquisition is HR Solutions’ fifth over the past six years. In 2015 the company merged with Business Human Resources Solutions, followed by the acquisition of HR Services (UK) in 2017, the addition of Crispin Rhodes in 2020 and Cherington HR earlier this year. Greg added: “Whilst HR Solutions continues to grow organically, we are excited by the opportunity of acquiring a similar business to be able to offer a wider range of services to businesses.” As a result of joining HR Solutions, Essential Safety’s clients will benefit from a wider service offering and access to additional experienced staff with extensive skills. Dean Howells, Managing Director at Essential Safety, added: “We are delighted to be joining the HR Solutions team, who we have trusted for HR advice and support for the last 10 years. Our clients will now have access to a broader range of services and support from a wider team of consultants and advisors. “Helping our clients succeed safely has always been at the heart of everything we do at Essential Safety, and that will not change. This new alliance will add further investment and impetus into our business, and our consultants and advisors will benefit from increased support as they continue to deliver the high levels of service our clients expect.” With a head office in Kettering, Northamptonshire, HR Solutions operates in a variety of industries and has a client list that ranges from small care agencies to multi-national technology firms. FINANCE NEWS www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 11 CTS to step-up growth after multi-million pound refinancing Construction Testing Solutions (CTS), the Palatine-backed provider of construction and infrastructure testing and consulting services, has completed a multi-million pound refinancing with European credit specialist Kartesia. The new funding will support the Leicester-headquartered company to continue a growth strategy that has already seen it acquire five businesses since it secured investment from Palatine’s Buyout Fund in 2018. CTS offers a range of construction testing services including materials testing, structure and pavement surveys and geotechnical and geo- environmental investigations. With support from Palatine, the UK mid- market private equity investor, it has grown to become a national network of 19 laboratories and offices, employing more than 600 skilled engineers and technicians. In the last 12 months CTS’ revenues have passed £40m for the first time, while the business has also recently moved to a new head office, following its separation from sister company CET Group. Chief Executive Phil Coles said: “The new funding from Kartesia will be key to delivering our strategic growth plan, giving us the firepower to make further acquisitions in the short and medium term, while also allowing us to invest in our people and technical capabilities.” Nick Holman, director at Kartesia, said: “We are delighted to complete our second transaction with Palatine and support CTS; a resilient and critical service provider with an excellent track record in the UK market. Our capital will help the company continue its impressive growth story and fulfil its buy-and-build ambitions.” Tom Hustler, investment manager at Palatine Private Equity, said: “This refinancing deal is an important step forward for CTS and will allow it to continue to add depth and scale to its capabilities in line with its strategic vision of becoming an industry- leading nationwide construction testing business. “We are pleased to be supporting Phil and the management team and look forward to making continued progress in 2022.” Greg Guilford of HR Solutions (left) and Dean Howells of Essential Safety © stock.adobe.com/Dilok 06-15.qxp_Layout 1 10/01/2022 08:35 Page 6University collaborates on new research centre to accelerate the UK’s electrified future GKN Automotive, a global leader in drive systems, has announced its new Advanced Research Centre – created to develop next-generation eDrive systems powering future electrified vehicles and increase engineering capability in the UK to meet Net Zero commitment. GKN Automotive is partnering with the University of Nottingham and Newcastle University to push the boundaries of eDrive technology and accelerate modular innovation. The collaboration will focus on the development of ultra-high efficiency EDUs for future electric vehicles. The Advanced Research Centre is being supported through £3.5m in funding from the Melrose Skills Fund, to increase the automotive electrification knowledge capability and strengthen research and development in the UK. The project will be virtually shared between the engineering departments at the University of Nottingham and Newcastle University, with research teams at each university operating collaboratively with engineers at the GKN Automotive Innovation Centre. Gordon Day, Managing Director, GKN Automotive Innovation Centre, said: “GKN Automotive is a pioneer of advanced eDrive development and this new research partnership will play a key role in strengthening the innovation of electrification technologies for future advanced propulsion systems. “We are extremely proud that this research will be in partnership with Newcastle University and the University of Nottingham, two renowned and respected global leaders in automotive electrification engineering research. Both institutions will also play a leading role in helping us develop a supply of high-calibre engineering talent, which is essential to enable us to put the UK at the forefront of global automotive industry innovation.” 12 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS Hitachi/Alstom JV wins contracts to build HS2 trains in Derby A Hitachi/Alstom JV has been awarded the contracts to build Britain’s next generation of high speed trains at their factories in Derby and County Durham in a major deal set to support 2,500 jobs. The landmark contracts – worth around £2bn – will see the JV design, build and maintain a fleet of 54 state-of-the-art high speed trains that will operate on HS2 – the new high-speed railway being built between London, the West Midlands and Crewe. Capable of speeds of up to 225mph (360km/h), the fully electric trains will also run on the existing network to places such as Glasgow, Liverpool, Manchester and the North West. Building on the latest technology from the Japanese Shinkansen ‘bullet train’ and European high-speed network, they will be some of the fastest, quietest and most energy efficient high-speed trains operating anywhere in the world. The design, manufacture, assembly, and testing of the new trains will be shared between Hitachi Rail and Alstom. The first stages including vehicle body assembly and initial fit-out will be done at Hitachi Rail’s facility at Newton Aycliffe, County Durham; and the second stage of fit out and testing will be done at Alstom’s Litchurch Lane factory in Derby. In another major boost for train-building in the UK, all the bogies (which house the wheelsets) will both be assembled and maintained at Alstom’s Crewe facility – the first time since 2004 that both jobs have been done in the UK. Hitachi Rail has recently completed a £8.5m investment in new welding and painting facilities at Newton Aycliffe where the 432 HS2 bodyshells will be manufactured. The first train is expected to roll off the production line around 2027. Following a rigorous process of testing and commissioning, the first passengers are expected to be carried between 2029 and 2033. Welcoming the news, HS2 Ltd Chief Executive, Mark Thurston, said: “The trains that will be built in Derby, Newton Aycliffe and Crewe will transform rail travel – offering passengers unparalleled levels of reliability, speed and comfort and help in the fight against climate change. I’d like to congratulate Alstom and Hitachi and I look forward to working with them as together we bring these exciting new trains to passengers across the UK.” Agri-feed manufacturer secures refinance package to support growth and sustainability plans Agri-feed company, GLW Feeds, has sealed a refinancing deal with HSBC UK to support the company’s future growth and to enhance its sustainability credentials. Founded in 1873, Charnwood-based GLW Feeds is one of the largest independent, family-run livestock and speciality feed manufacturers in the UK. The deal with HSBC UK will provide the company with additional working capital and allow the business to expand its facilities and invest in new machinery. The support from HSBC UK will ensure the longevity and sustainable growth of the 150-year-old company. It will enable GLW Feeds to invest in state-of-the-art milling equipment and technology which will allow the company to meet increasing market demand and further its commitment to British Agriculture and the Environment. GLW Feeds have been actively working towards reducing their carbon footprint and maximizing their environmental sustainability through increased capacity coupled with more energy efficient production processes. The company now sources c.70% of major raw materials locally to the mill and has already enrolled in global sustainability schemes with other raw materials. Furthermore, a new CHP plant will allow GLW Feeds to continue to reduce their carbon footprint through energy consumption and increase their overall energy efficiency per tonne of feed produced. Jamie McDonagh, finance director at GLW Feeds, said: “From the initial meeting with relationship director Phillip Carr and the wider team from HSBC UK, the enthusiasm, sector knowledge and support they had for GLW Feeds was clear and we instantly knew they were the banking partner we needed. We now look forward to working closely together as we implement our growth strategy.” © stock.adobe.com/ake1150 06-15.qxp_Layout 1 10/01/2022 08:35 Page 7New train fleet supports local supply chain jobs East Midlands Railway is supporting jobs in the local supply chain after the awarding of contracts linked to manufacturing its new train fleet. Hitachi Rail is currently building the new Aurora trains for the Derby-based train operator – and is using some local firms for the project. Among them is Mors Smitt, which manufacturers Automatic Warning Systems (AWS) / Train Protection & Warning Systems (TPWS) and the Automatic Power Control (APC) systems, at its factory in Burton. The contract with EMR and Hitachi Rail helps support Mors Smitt and the 65 employees it has across the Midlands. The TPWS safety systems it produces assists the driver in the safe operation of the train, providing them with information about the upcoming signal status and applying the trains emergency brake if the train passes a restricted signal. The APC safety system ensures the train is not drawing power from the overhead line when it passes through a neutral section – preventing electrical arcing that can damage the overhead line and the train. Another Midlands company, Ripley’s Forbo Flooring Systems, was also chosen to supply parts for the Aurora fleet. The flooring product, which was developed purely for the rail sector, has been designed to be easy to clean, hardwearing to cope with the heavy footfall of passenger numbers and simple to maintain. When it enters service in 2023, the Aurora fleet will offer significant advances on EMR’S existing fleet, with passengers benefiting from more seats and modern interiors. The trains, which will have the ability to run on overhead electric lines, will also include features that passengers have said they want to see, including air conditioning, free WiFi throughout, plug sockets and better passenger information screens. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 13 MANUFACTURING NEWS East Midlands manufacturers see mixed end to the year Manufacturers in the East Midlands have seen a mixed performance at the end of the year, according to the latest quarterly Manufacturing Outlook survey from Make UK and business advisory firm BDO. According to the survey, while all indicators on output and orders remained positive for East Midlands manufacturers, growth has slowed compared to the previous quarter, which is very much in line with the national picture and other business surveys. Output and domestic orders were at balances of +14%, which are both still at reasonable levels historically, although export orders and total orders at +7% were below historic averages. While the region will have benefitted from the upturn in food and drink as hospitality opened up in the second half of the year, the continued downturn in the aerospace and automotive sectors is still dragging on growth in the East Midlands. Despite this mixed picture, the outlook for jobs across the region has significantly improved. The employment balance was +29% which is well above the national average while investment intentions also increased, possibly in response to the Chancellor’s extension of the Annual Investment Allowance in the Autumn Budget. As with the national picture, the big challenge for companies, in addition to attracting and retaining talent, remains the escalating inflationary pressures which are forcing companies to raise prices, in many cases significantly. Make UK has forecast growth for manufacturing in 2021 of +6.9%, down slightly from +7.1%, and growth in 2022 of +3.3%. Charlotte Horobin, region director for Make UK in the Midlands, said: “While manufacturers in the East Midlands will be able to enjoy some festive cheer this year, their spirits will be tempered by the eye watering impact of escalating cost pressures which are leading an increasing number to pass these on to the consumer. “Given the global nature of some of these pressures there is little sign that they will abate anytime soon. However, they will hope as we enter a fresh year that these will gradually unwind, with the compensation being that demand prospects among their major markets continue to look strong.” Jon Gilpin, head of manufacturing at BDO in the East Midlands, said: “Manufacturers faced a brutal 10% decline in output in 2020. This year, they have rebounded proudly with some record-breaking figures. While challenges clearly still lie ahead, they can enter 2022 on significantly firmer footing than last year. “Despite the dip in orders and output balances this quarter, the results for East Midlands businesses are still very positive compared to historical figures. However, costs pressures – input prices, labour, logistics and inflation – are settling in for the long haul and will continue to impact manufacturers well into 2022.” © stock.adobe.com/Ulf © stock.adobe.com/jeson 06-15.qxp_Layout 1 10/01/2022 08:35 Page 8PROPERTY NEWS Remanufacturing facility expansion sees Old Dalby Business Park fully let A Leicestershire business park owned by independent property company Hortons’ Estate Limited is fully let after an existing tenant’s expansion secured the final available industrial/warehouse unit on the site. Engineering and technology firm, RBC Group has signed a 10-year lease with landlord, Hortons’ Estate Ltd on 51,000 sq ft of additional space at Old Dalby Business Park, near Melton Mowbray. The deal extends RBC Group’s commitment at the business park to almost 200,000 sq ft of industrial accommodation, which includes its current headquarters at Unit 3, one of Europe’s largest remanufacturing facilities. The firm operates five additional depots at strategic locations across the UK, supporting its delivery of automated retail, manufacturing, technology, asset management, payment solutions and integrated logistics. Old Dalby Business Park is a 39-acre industrial complex located between Leicester, Nottingham and Loughborough, approximately 1.2 miles from the A606. The site offers a range of warehousing and manufacturing accommodation from 2,000 sq ft to 135,000 sq ft, and is home to established occupiers including Toyota Material Handling UK Limited, Funbikes and East Midlands Pharmaceutical. Jeremy Boothroyd of Hortons’ said: “We are very pleased that RBC Group has chosen to commit to Old Dalby as the location for the continued expansion of its industry leading services. “Like many of our occupiers on the business park, we have developed a positive working relationship with the team at RBC Group and look forward to supporting their growth and development in the years ahead as the business continues to evolve and expand.” East Midlands contractor appointed to £7bn Department for Education framework G F Tomlinson are celebrating their re-appointment as an approved partner for the new £7bn Department for Education 2021 Construction Framework, a four year framework for the delivery of both education and non-education projects in the public sector. The framework supports the delivery of the Department for Education’s school building programmes, with an emphasis on achieving net zero carbon in operation. Following a rigorous selection process, G F Tomlinson is one of only 26 contractors to be selected nationally, and will deliver projects valued between £0.5m and £6.0m across the East and West Midlands. This is the third consecutive Department for Education framework the regional contractor has been appointed to since 2014. Over the last 8 years, the company has delivered more than £55m of new build and refurbished primary, secondary, SEND and alternative provision schools, providing 4,467 new pupil places across the Midlands. The new framework will be available to local authorities, schools, academies, FE colleges, universities and other public bodies which provide educational facilities in England, whilst also being available to central government, including government agencies. G F Tomlinson will deliver schemes which meet stringent framework targets for local spend/labour, apprenticeships, T Level placements and reducing waste and carbon emissions. Chris Flint, Managing Director at G F Tomlinson, said: “We are proud to have been re-appointed to the 2021 Construction Framework which continues our long-association with the Department for Education and expands on our delivery of high quality education facilities across the Midlands.” 14 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Food packaging and catering supplies business agrees deal for new warehouse Catering24 has agreed a deal with Clowes Developments for the development of a state of the art warehouse facility in Ilkeston after doubling in size. The family run business adapted their business model throughout the difficult year of 2020 for the hospitality industry by providing food packaging for takeaway and delivery. Their continued growth in this area is set to rise over the next decade and Catering24 have agreed a bespoke build with Clowes Developments in the East Midlands area strategically located between Nottingham and Derby. Catering24 have agreed a lease with Clowes Developments for the development of a brand-new purpose-built warehouse and distribution facility at Etiquette Park located off the existing Manners Road Industrial Estate in Ilkeston. The deal marks significant expansion for the food packaging distributor who have doubled their turnover in the past 18 months. Catering24 has the option to purchase the property within the first 2 years which Catering24 aim to do and represents a total investment in the warehouse, equipment, racking and IT software to the sum of £2.8m. Clowes Developments have instructed TanRo to construct the bespoke facility for Catering24 at the Ilkeston-based business park. The 27,249 sq ft facility will be the larger of two brand new facilities expected to be built at the site following a successful planning application submitted by the developer to Erewash Borough Council. Catering24’s bespoke building will sit within a secure complex and will comprise of a steel portal frame single storey warehouse with integral two storey offices. The property will benefit from a secure service yard, 40 car parking spaces, 8m haunch height, 2 level access loading doors, 3 phase power supply and EV charging points. 06-15.qxp_Layout 1 10/01/2022 08:35 Page 9PROPERTY NEWS Second phase of Space Park Leicester completes The keys to the second phase of a £100 million research, innovation and teaching hub for space-related high-tech companies and researchers in Leicester have been handed over. Space Park Leicester, established by the University of Leicester in partnership with local, national and international partners, consists of a pioneering research, innovation and teaching hub, which will incorporate academic research, industrial space, and Earth observation research and development (R&D). Building on Leicester’s 61-year history of space research, this project comprising of a 9,700 m2 facility including shared laboratories and teaching facilities, will put Leicester at the forefront of space technology in the UK. Following completion of the building, the keys for the second phase were handed over to Professor Richard Ambrosi, by representatives from construction company Bowmer + Kirkland. It houses laboratories, workshops and calibration facilities along with high technology projects such as the double-walled insulator for the Mars Sample Return 2026 NASA ESA Mission as well as one of the UK’s largest academic clean rooms for the assembling and testing of space equipment. Professor Richard Ambrosi, Professor of Space Instrumentation & Space Nuclear Power Systems at the University of Leicester, said: “We are extremely proud of completing phase two of this project. This is another major step in consistently expanding our understanding and knowledge surrounding space and space-enabled sectors. “With the opening of Space Park Leicester and other recent nearby developments, Leicester is well and truly on the map as a key place to be for forward-thinking, high-end technology and space science businesses.” Logistics developer to invest £46.5m in Derby St. Modwen Logistics, a logistics developer and manager, is set to deliver new warehouse space that could create up to 1,250 new jobs, boosting the local Derby economy and transforming a 67-acre brownfield site. The initial phase will comprise investment of £46.5 million to acquire land from joint venture partner Network Rail and deliver the first four logistics units. Phase 2 is expected to follow within the next two years and will deliver the remaining 550,000 sq ft of warehouse space, completing the transformation of the site. The announcement is the culmination of seven years’ work between St. Modwen Logistics, Derby City Council and Network Rail, to bring forward the land for regeneration which previously formed part of industrial railway sidings. As part of the first phase of development, St. Modwen will speculatively build four high-quality industrial and logistics units of 39,000 sq ft, 54,000 sq ft, 79,000 sq ft, and 131,000 sq ft. Totalling 303,000 sq ft; Phase 1 is due to be completed and ready for occupation in September 2022. Polly Troughton, Managing Director at St. Modwen Logistics, said: “St. Modwen Logistics is committed to investing in regeneration projects with the aim of supporting local economic growth and generating jobs for local communities. “Through the development of this high-quality warehouse space, underpinned by our ESG commitments and the needs of our customers, we hope to welcome new and existing businesses to St. Modwen Park Derby and look forward to seeing them grow and thrive here.” Study Inn adds second Nottingham property to growing portfolio Study Inn Group, the student accommodation owner, developer, and operator, is set to deliver a 270-bed purpose-built Study Inn in Nottingham, its second property in the city. Triumph House is located adjacent to the University of Nottingham’s Jubilee campus. The £35 million brand-new scheme will offer a mixture of studios and en-suite serviced apartment rooms. Construction of the 5-storey ground up new build is in progress with opening scheduled for the next academic year. Facilities will include 24?7 onsite management, room cleaning and linen services, superfast Wi-Fi, and state-of-the-art communal facilities such as study space, wellness spa, sauna, steam room, hot beds, gym, yoga studio, games room, lounge, big screen cinema room, bicycle parking, and private landscaped gardens. Commenting on the new development, Jack Jefferson, acquisitions director at Study Inn Group, said: “Having opened 288 rooms in Talbot St, adjacent to Nottingham Trent University in 2020, this new development offers the opportunity to open a similar number of rooms adjacent to the University of Nottingham and so we are very pleased with the acquisition and the potential to continue to work with both universities in these excellent locations. “This will be the seventh property in our second portfolio of luxury Study Inns. We had the ability and resources to close the acquisition quickly and have appetite for further acquisitions in good locations in UK cities.” www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 15 06-15.qxp_Layout 1 10/01/2022 08:35 Page 1016 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY A new year is the perfect opportunity to leave a challenging past behind and focus on a better future, which is what the East Midlands commercial property sector has been successfully doing. The new year is the perfect time for new opportunities, new investments and new developments and the East Midlands commercial property sector has definitely taken that leap to start the new year in the best of ways. Across the region, the focus has been on investing in new technologies and improving existing resources in order to provide the territory with new opportunities to grow and the local communities with a better future. The Derby City Council will soon be starting a new Local Plan to develop the city and it has announced residents and businesses will have their say on Derby’s new planning policy. Cabinet Member for Regeneration, Decarbonisation, Strategic Planning and Transport, said: “We are making sure that residents get their say. Housing and planning is a major concern Towards a better, greener future 16-19.qxp_Layout 1 10/01/2022 08:38 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 17 COMMERCIAL PROPERTY for many people. With a new local plan Derby can create planning polices to help tackle the issues of our time, shape the future of our city and build back better.” Work on the new plan will begin this year, a wide ride range of stakeholders will be engaged including residents, communities and businesses to gather ideas and inform the proposals. A new cross-party working group of Derby councillors will be created to oversee the creation of the local plan. The new working group will provide the opportunity for all political parties to work together, consider the full range of Local Plan issues and how to address them. An ambitious project to build a state- of-the-art new £5.25m planetarium and science discovery centre in Sutton-in- Ashfield has moved a step closer after funding was secured and a contractor appointed. Planetarium project manager, Steve Wallace, said: “The new centre will create a unique visitor attraction and help raise the profile of our area significantly. It will focus on delivering STEM content in an exciting and hands- on way, to raise awareness of the opportunities that STEM careers can unlock an important aspect of future jobs creation in our region.” The project aims to turn a disused underground Victorian reservoir on the site of the Sherwood Observatory into a state-of-the-art tourist attraction and education centre. The reservoir will be repurposed to house a multi-functional exhibition area and teaching spaces while preserving the existing architectural heritage features. It is hoped that the education and outreach activities it carries out will help create a pipeline of talented and motivated people interested in STEM, which will support prosperity in the area and develop the skills needed by local businesses. Nottingham will be going through some incredible and revolutionary changes in the new year that will make it a greener, more sustainable city. Experian has been granted planning permission to re-imagine its Sir John Peace Building. The changes come in the wake of the pandemic, the shift to hybrid working models, and a push from the company for enhanced sustainability with a business-wide commitment to become carbon neutral by 2030. The proposals will see new disabled parking provision and more cycle storage as part of the reconfiguration of the Sir John Peace Building site to enable the creation of a regional business hub. Other works include the ecological 18 Á © stock.adobe.com/Mongkolchon 16-19.qxp_Layout 1 10/01/2022 08:38 Page 2enrichment of the biodiversity in the landscape, offering staff food growing plots and beekeeping, opportunities for exercise, and electric vehicle charging points. The plans come as Experian reduces its office footprint to recognise new agile ways of working. Globally Experian are reducing from 157 sites to 100 and in the UK that is a reduction from 17 sites to 5. The Sir John Peace building will provide a touch down base for staff from the North East and North West, Wales, the Midlands and the East of England. Nottingham’s independent Greater Broad Marsh Advisory Group, established by Nottingham City Council in March 2021, has published its Vision and recommendations for one of the most significant city centre development sites in the UK. The unique 20 acre site includes the former, part demolished Broadmarsh shopping centre which was handed back to Nottingham City Council when Intu went into administration at the start of the COVID-19 pandemic. Heatherwick Studio, led by the highly-acclaimed British designer Thomas Heatherwick, and Stories, a socially responsible development company, were commissioned to work with the Advisory Group on the creative Vision for the city centre site and advise on how Nottingham can deliver the project. Thomas Heatherwick said: “The aim is to bridge between generations, communities, and cultures so that the new Broad Marsh can reflect the true diversity of the city. In the fog of COVID- 19, Nottingham has seized the opportunity to create a new blueprint for the future of city centres.” Businesses have also been showing an interest in greener and more sustainable environments and Galliford Try has left its East Midlands base to move to new offices in the Gateway House development at Grove Park in Leicester. The new workspace is energy efficient with internal green spaces and electric vehicle (EV) chargepoints, in line with the Group’s Sustainable Growth Strategy and move to an all-EV and hybrid fleet. Jon Marston, Managing Director for Galliford Try Building East Midlands, said: “We are excited to be starting a new era for the business in our energy efficient offices at Gateway House. This move aligns with the overall Group strategy for reducing carbon from our operations, and gives us a modern workspace, fit for a business looking to the future.” Overall, there has been an increased interest in sustainability, however, the construction industry in the UK, and particularly in the East Midlands, is not confident they will be able to achieve net zero by 2050, as it has been predicted by the government. Chief product officer, Peter Sayce, at Bramble Energy said: “Inherently the construction industry is a heavy carbon emitter and continues to be the focus of many planned government initiatives and policies, as well as public scrutiny. The urgency to act on climate change has never been greater, and the construction industry – like all others – has a moral and legal responsibility to address the climate emergency and accelerate sector decarbonisation.” As much as the commercial property and construction sectors are making significant efforts to meet the net zero goal, there is still a lot of work to do and in order to achieve those results, it will be essential to coordinate efforts and work together. That been said, there is no doubt the East Midlands property sector is already working very hard to improve the region and deliver excellent results to its communities. © stock.adobe.com/kerkezz 18 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY 16-19.qxp_Layout 1 10/01/2022 08:38 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 19 COMMERCIAL PROPERTY Following the COP26 climate conference there has been a real focus on how the country is going to tackle the challenge of net zero by 2050 and this includes the Buy to Let sector. It is estimated that 15% of all UK emissions come from our housing stock and the Government’s proposal to reduce this will require all rented houses to reach an Energy Performance Certificate (EPC) rating of at least C by 2025 (existing tenancies have until 2028). In addition, all non-residential properties have potentially even tougher targets of EPC rating of C by 2027 and B by 2030. If the targets aren’t met, then the property cannot be rented out. Energy Performance Certification is not a new thing, it was introduced in 2007 with the intention of rating a property’s energy efficiency. By law, all domestic and commercial buildings available to buy or rent in the UK must have one. The scale ranges from an A rating being the most energy-efficient, with a G rating being the least energy efficient and each certificate lasts for 10 years. A recent assessment of the current EPC register for private rental sector properties suggests 65% are below the target of EPC grade C. Shawbrook Bank has been at the forefront of consumer research on factors affecting the Private Rental Sector (PRS) for over a decade and continues to analyse the potential impact on the Buy to Let market of the proposed changes to EPCs. Lee Albino, of Shawbrook Bank, said: “For many property owners in the UK, getting their property to a C rating is going to take a lot more than simply installing a new boiler. The reality is that for older properties - some of which may be listed - it will be an expensive exercise to make the necessary changes. More needs to be done to help property owners with these changes.” Over recent years, lenders like Shawbrook have led the way with the introduction of innovative and competitive products to the market, whether borrowing to refinance the loan and capital raise or funding for the cost of works. In response to this, Sterling has seen an increase in the requirement for short-term finance (bridging finance) for light and heavy refurbishment to improve the energy efficiency of property. Short- term finance can be a useful solution where there are works required to increase the rating to an EPC C and above, especially where the property will not be lettable during the refurbishment or where funds to carry out the work are not readily available. Meanwhile, new research from lender The Mortgage Works found that 35% of 750 landlords surveyed were ‘not confident’ they would be able to meet the target, a point acknowledged by Giles Inman of the East Midlands Property Owners organisation: “In our view it is unlikely the government will achieve its ambition for all private sector housing to have a C or higher EPC rating by 2028. “There are insufficient installers. This has been exacerbated by recent government initiatives which restrict the number of qualified installers to transform homes into ECO-homes and to undertake other government grant work. The offer of £5,000 to go towards installing heat pumps is not sufficient to upgrade most older properties and to help landlords meet the cost of replacing radiators and installing hot water cylinders. For heat pumps to be effective other measures such as solid wall installation, double/triple glazing and underfloor heating may be required in many homes and the cost for this would be more expensive than installing heat pumps. So, the question is how are landlords going to afford the cost to upgrade their rentals to achieve a C rating?” The big issue is clearly the cost. Currently, the cost for EPC improvements for landlords is capped at £3,500. However, this cap will likely rise to £10,000 for the new EPC minimum. While there are potential Government led funding options that landlords can reach out to, they are few and far between. The Mortgage Works survey also cited 44% of landlords saying access to the property to carry out the work and disruption were both among the top concerns. Getting the right people to carry out the work was also an issue. 34% said they were worried about finding ‘reputable’ tradespeople, while 30% were worried about their availability. All this means that landlords will need to get a new EPC rating done to include suggested changes for improvements. They will then need to implement these changes at personal cost just to legally keep their property as a buy to let. In the meantime, the Government have announced their intention to increase the penalty for not having a valid EPC from £5,000 to £30,000 from 2025. For further information on Energy Performance Certificates or to discuss funding the cost of works to make improvements to property, please contact the property team at Sterling Commercial Finance on 0115 9849800 or email property@sterlingcommercialfinance.co.uk. Buy to Let going green By Nic Rotton, Sterling Commercial Finance 16-19.qxp_Layout 1 10/01/2022 08:38 Page 4Next >