< Previous10 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FINANCE NEWS Independent Power Producer enters administration Calon Energy Limited (CEL) has entered administration. CEL is the holding company of the Calon Energy Group, an Independent Power Producer (IPP) in the UK, with a 2.3 GW Combined Cycle Gas Turbine (CCGT) portfolio operating across three sites: Sutton Bridge Power Station, Sutton Bridge, Lincolnshire (850 MW); Severn Power Station, Newport (850 MW); Baglan Bay Power Station, Port Talbot (582 MW). The Group employs approximately 111 staff. It also holds the relevant consents to construct a new CCGT at Willington Development Site in Derbyshire, England. The operating companies below CEL, which own and operate the Severn, Sutton Bridge and Baglan Bay power stations, are not in any insolvency process and continue to trade under the control of their respective directors and management teams. All members of staff remain employed and will continue to be paid as normal. Jim Tucker and David Pike from KPMG’s Restructuring practice were appointed Joint Administrators of CEL on 24 June 2020. Jim Tucker, restructuring partner at KPMG and joint administrator, said: “Although we have been appointed administrators over the Topco to the group, the group’s power stations continue to operate as normal, outside any insolvency process, under the control of their directors. “We will be working with the directors and senior management in the coming months to develop a new business plan for the power stations, before finalising the timeline to commence a sales process.” Seven-figure funding package secures jobs at plastics recycler Luxus ltd, the East Lincolnshire-based independent plastics compounder and recycler has secured a funding boost from HSBC UK to assist the business in continuing operations during the COVID-19 crisis. Luxus is a major regional employer and will use the seven-figure funding package from HSBC UK to ensure it can adapt to changes in its supply chain. During the COVID-19 lockdown, Luxus was identified by the government as a key service, as the company uses its specialist knowledge, innovation and technology to recycle existing plastic materials, such as food packaging and plastic storage containers, into new sustainable, high performance thermoplastic product. As businesses around the world have experienced disruption to their supply chains, Luxus has continued its operations, notably the production of repurposed plastics that have been used in the production of Coronavirus testing kits and personal protective equipment (PPE). Whilst Luxus continues to provide this key service, many of their key commercial relationships remain in stasis. This led to the firm furloughing 80 members of staff and operating the business at around 50 per cent capacity. The funding from HSBC UK has helped to ensure job security for employees across the business throughout this period. Peter Atterby, Managing Director of Luxus, said: “We have worked in close partnership with HSBC UK for many years, and it was great to see this partnership in action with the fast turnaround of a CBILS loan when we needed it most. “This support has allowed us to continue to deliver support products to the front line at the height of this crisis. I am confident that this support has placed us in a good position as we collectively look to how we address rebuilding the economy.” University of Nottingham generates £1.5m from sale of Oncimmune shares The University of Nottingham has realised more than £1.5m from the sale of shares in Oncimmune Holdings plc, which was founded in 2002 as a spin-out to commercialise a blood test for the early detection of cancer. The sale of shares by the University – in line with its policy to release investment in spin-outs to fund education and further innovation at Nottingham – brings the total realised from Oncimmune to more than £7m. Dr Andrew Naylor, CEO of Nottingham Technology Ventures, which manages the University’s spin-out portfolio, said: “It is immensely gratifying to see a spin-out company continue to develop and commercialise technology to save lives, benefit society and generate real impact. “Oncimmune has delivered a significant return on investment for the University and is an excellent example of how spin-out companies can flourish with good financial and commercial support.” He continued: “Dynamic life sciences companies and research institutions have a vital role in securing a high-skill economy, as well helping power recovery and growth after the Coronavirus.” Oncimmune launched its platform diagnostic technology in 2009, followed by its first commercial tests of EarlyCDT Lung and EarlyCDT Liver. The key to improving cancer survival is early detection and better selection for therapy and Oncimmune’s immunodiagnostic tests can detect and help identify cancer on average four years earlier than standard clinical diagnosis. To date, over 200,000 tests have been performed for patients worldwide. EarlyCDT Lung, pioneered by a team from the Faculty of Medicine and Health Sciences, is also used in what is believed to be the largest randomised controlled trial for the early detection of lung cancer using biomarkers, the NHS Early detection of Cancer of the Lung Scotland (ECLS) trial of 12,209 high-risk smokers. This trial demonstrated that EarlyCDT Lung reduced the incidence of patients with late-stage lung cancer or unclassified presentation at diagnosis, compared to standard clinical practice. © Shutterstock /Rawpixel.com 06-15.qxp_Layout 1 03/07/2020 15:20 Page 5FINANCE NEWS Leicestershire non-bank lender receives CLBILS accreditation for term loans ThinCats, the alternative lender to mid-sized UK SMEs, has been approved by the British Business Bank as a new accredited lender to provide term loans through the Coronavirus Large Business Interruption Loan Scheme (CLBILS). ThinCats is the first non-bank lender to receive CLBILS accreditation for term loans. CLBILS funding will be used by ThinCats initially to support businesses that have an existing ThinCats loan. Plans to make the scheme available to new borrowers may be announced at a later date. The Coronavirus Large Business Interruption Loan Scheme, delivered through British Business Bank accredited lenders, is designed to support the continued provision of finance to UK businesses during the COVID-19 outbreak. The scheme enables lenders to provide facilities of up to £200m to larger businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow Amany Attia, Chief Executive Officer, ThinCats: “We are delighted that the British Business Bank has approved ThinCats as the first non-bank lender accredited for CLBILS term loans. Our initial priority is to support our existing borrowers who we know well and can therefore help most quickly. “Our focus remains on supporting mid-sized SMEs, however, we found that some of our larger customers with turnover greater than £45m also require funding, which we cannot provide under our existing CBILS accreditation. It made sense, therefore, to apply for the CLBILS accreditation to enable us to extend our support to slightly larger businesses. “We will make further announcements about making CLBILS available to new borrowers in due course.” Loughborough University spinout targets US market with Innovate UK support Loughborough University spinout Previsico has reached a significant milestone in securing a £700k loan from Innovate UK, and is now targeting the US market with its 3rd generation live flood forecasting technology, and a Series A funding round in 2021. Underpinned by 20 years of academic research across 50 cities worldwide, with the support of the Cabinet Office, Met Office, and Environment Agency who conducted pilots in London, Manchester, Birmingham, Leicester and Loughborough, Previsico has been on a fast-track since launch in November 2019, including going UK-wide in November 2019 to support insurers, brokers, and customers with ‘live actionable flood warnings’, including for surface water flooding. The company is headquartered in the University’s Incubator, LU Inc, on its Science and Enterprise Park LUSEP. The Innovate UK loan will support: accelerated product development to improve Previsico’s accuracy and speed; more proof of concept trials with insurers; collaboration with the Lloyd’s Lab to deliver value-added services in underwriting, loss mitigation, and claims; and continued expansion, including in the US, where there is an urgent need for surface water flood modelling. Previsico’s CEO Jonathan Jackson said: “The increasing catastrophic risk of flooding, including surface water flooding in the US, and worldwide, make this development very timely. We have big plans at Previsico, including our Series A round in 2021. The Innovate loan is a great facility to enable us, as an early-stage spinout, to accelerate our product development and growth, including in the US as a key target market for 2020.” Loughborough University Pro-Vice Chancellor for Enterprise Professor Tracy Bhamra said: “With Innovate UK’s support, Previsico will continue to build capability and accelerate adoption of its unique surface water flood forecasting technology for maximum societal and economic impact, as well as generating skilled employment to boost the regional economy.” Previsico’s CEO Jonathan Jackson and Founder and Chief Scientific Officer, Professor Dapeng Yu. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 11 © Shutterstock /Tashatuvango 06-15.qxp_Layout 1 03/07/2020 15:20 Page 6New body to strengthen Midlands manufacturing sector Manufacturing Technology Centre Chief Executive Dr Clive Hickman has been appointed to head a new body aimed at leading the resurgence of manufacturing industry in the Midlands. The Midlands’ Manufacturing Resilience Commission, to be known as M2R, will review the Midlands’ manufacturing landscape post-COVID, contribute to the creation of a wider Midlands’ manufacturing strategy and develop recommendations to help build the region’s manufacturing resilience and its subsequent economic impact. Contributions will be invited from senior representatives from industry, academia and government. Clive Hickman said: “Through the recent crisis we have seen the manufacturing sector respond to the needs of the hour, including through vital initiatives such as the Ventilator Challenge and the production of much needed PPE. We are proud of what we achieved, but we believe there are lessons to be learned, not least in terms of how we, here in the Midlands, can work together to maximise our impact, and develop a strategy that will put our region on the map, not only nationally but also internationally. “In these challenging times, we must build on our strengths; our skills, our heritage and our willingness to respond and adapt to new challenges. I look forward to leading this process and delivering a commission that will make a real difference to our region.” The Mayor of the West Midlands and lead sponsor of the Commission said: “I am pleased to support this vital initiative. I know how important manufacturing is to the region through jobs, investment and growth. We need an overarching report that will identify how we can work better together. The lessons we have learned through the last few months have given a real urgency to understanding what we need to do to be at the forefront of world-class manufacturing, something which is very close to my heart.” 12 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk MANUFACTURING NEWS Scrappage scheme called for to help manufacturers automate A scrappage scheme for old IT, plant and machinery equipment should be introduced to incentivise cash-strapped manufacturers to invest in automation and digitisation to boost output and exports. The calls have been made to government by Make UK, the manufacturing organisation, to help the manufacturing sector supercharge a technological comeback. The scheme should run hand-in-hand with a programme to encourage UK consumers to buy a new, more environmentally friendly car through a government-funded scrappage scheme, delivering a much-needed boost to the country’s automotive industry. A voucher-style system where Government gave a contribution of around £5,000 for each new car, would deliver a healthy incentive for households to upgrade, with industry contributing the trade-in value of the old model. This double cash injection would give businesses the head start they desperately need as they struggle to replenish their decimated order books and get production up and running again. Up-front labour and raw material costs are proving a block to many factories which have been forced to close or run on lower capacity over the past few months since the pandemic outbreak. Others which shifted to making much needed medicines, sanitizers and vital medical equipment to support the NHS and combat the spread of the disease also face considerable costs as they revert their factories to normal production. “The challenge faced by manufacturers as they start to rebuild their businesses and bring staff slowly back into the workplace is vast. Supply chains have been decimated and order books are in the worst state in decades,” said Stephen Phipson, CEO of Make UK. New low for manufacturing activity in June Manufacturer output volumes in the three months to June fell at the fastest rate on CBI survey record (since July 1975), having slightly surpassed the recent record set in May 2020. That’s according to the latest CBI monthly Industrial Trends Survey. The survey of 360 manufacturers found that output volumes declined in 15 of 17 sub-sectors, with the headline drops in output primarily driven by the motor vehicles & transport equipment, mechanical engineering, and metal products. Total order books remained poor by historical standards, despite improving slightly on last month. Meanwhile, export orders books worsened on the previous month, falling to their lowest on survey record (since April 1977). Looking ahead, manufacturers expect the pace of decline in output volumes to slow in the next quarter. Firms anticipate that output prices in the next three months will fall at a slower pace. Anna Leach, CBI Deputy Chief Economist, said: “The UK manufacturing sector remained in a deep downturn in June due to the ongoing COVID-19 crisis. “Output volumes declined at a new record pace and export order books fell to an all-time low, reflecting the significant fall in demand in the UK and abroad. Firms are again hoping that this will ease somewhat in the next three months. “The Government has already undertaken a huge amount of work to provide financial lifelines to businesses throughout this unprecedented period. With firms having been encouraged to restart operations, the Government must continue to engage with the sector to understand their specific concerns and provide support as needed.” Tom Crotty, Group Director, INEOS and Chair of the CBI Manufacturing Council, said: “The COVID-19 crisis has been hugely challenging for the manufacturing sector, and these figures reflect the tough circumstances faced by firms across the country.” © Shutterstock /Pixel B © Shutterstock /Jenson 06-15.qxp_Layout 1 03/07/2020 15:20 Page 7Hundreds of jobs to be lost at Triumph Motorcycles 240 people are to be made redundant in the UK at Hinckley-headquartered Triumph Motorcycles, with global job cuts said to be at 400. The move comes as a result of the COVID-19 pandemic, which has significantly reduced demand for large capacity motorcycles. The news follows the company’s decision to transfer mass production from Hinckley to Thailand, causing between 40 and 50 redundancies from its manufacturing workforce. Chief Executive Nick Bloor said that the pandemic has significantly damaged the global motorcycle market, adding: “Regrettably the scale of impact of COVID-19 necessitates us to restructure now in order to protect the long term health and success of the Triumph brand and business.” A consultation with staff is underway. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 13 MANUFACTURING NEWS Rolls-Royce to cut 1,500 jobs in the East Midlands Rolls-Royce is to cut 1,500 jobs in the East Midlands. The news comes after the company confirmed in May that at least 9,000 jobs would be lost from its 52,000 strong workforce. The firm has proposed the major reorganisation of its business to adapt to new reduced levels of demand from customers as a result of COVID-19. The cuts will predominantly affect Rolls-Royce’s Civil Aerospace business, to which the Derby-based firm has started offering voluntary redundancy. Outside of the East Midlands, jobs will also be lost in Solihull (175), Ansty (65), Inchinnan (700), Rotherham (100), Bristol (Civil), Washington (50), London Heathrow (50), Barnoldswick (200), Denby/Trentham (Ross Ceramics) (90). University of Derby supports advanced manufacturing project The University of Derby is supporting an advanced manufacturing project which has secured a £1.2m UK Research and Innovation (UKRI) grant. The award has been made for a project led by engineer Ayantika Mitra of Hampshire-based firm TISICS to transform advanced materials manufacturing through digital technologies. The four-year project, named ‘RAiSE: Radical Approaches in new materials Science and Engineering’, will develop tools to enable rapid certification and qualification of new lightweight products for spacecraft and aircraft. The University of Derby is providing advanced materials and processing expertise support for the project through its Institute for Innovation in Sustainable Engineering IISE, led by Professor Angelo Maligno. The project also draws on expertise from the University of Manchester and the Henry Royce Institute for Advanced Materials. Professor Warren Manning, Provost (Innovation and Research) at the University of Derby, said: “We are delighted to be part of such an exciting project for the future of aerospace technology, underlining how our expertise can play a vital role in the manufacturing processes which will facilitate new developments in air transportation. “Partnerships between business and universities continue to drive industrial innovation, and the continued support of government for ground-breaking research, as with this project, is essential.” Stephen Kyle-Henney, Managing Director of TISICS Limited, said: “This is a fantastic opportunity to accelerate digital manufacturing processing. Automation is essential to achieve the reproducibility and economics demanded by our space and aerospace customers for flight-critical systems.” © Shutterstock /Jonathan Weiss © Shutterstock /Willyam Bradberry 06-15.qxp_Layout 1 03/07/2020 15:20 Page 8PROPERTY NEWS Green light for Derby’s first Build-To-Rent scheme Proposals to construct Derby’s first Build-To-Rent (BTR) scheme and one of the city’s tallest buildings have been granted permission by Derby City Council’s planning committee. The developer, Godwin Developments, submitted plans to transform the site in Phoenix Street, Derby, into 201 BTR apartments, designed to match the growing interest in the sector from both investors and residents. The scheme, called The Landmark and situated at the heart of the city, will consist of a mix of one-and two-bedroom apartments and include a range of resident amenities such as a gym, concierge, lounge, guest suite and coffee area in addition to 47 car parking spaces and provision for 36 bicycles. The development will deliver rental stock to cater to the needs of a growing cohort of professionals and graduates in the area while supporting the wider Derby regeneration plans announced by the Derby Economic Recovery Task Force. The development is set to inject £68 million into the city’s economy, enhance the city centre and help to grow the reputation of Derby as one of UK’s key national business and investment hubs. The decision, which was supported by the majority of councillors, will also see the creation of 900 temporary construction jobs over a two-year period and around 10 to 15 permanent roles once complete. Stephen Pratt, group land director at Godwin Developments, said: “We are absolutely delighted that Derby City Council approved once again our proposals for The Landmark – in a huge vote of confidence for the city and its ambition for the future. “We are passionate promoters of Derby and its potential to reinvent itself through attracting additional employment and strengthening its city centre. Our scheme – The Landmark – will be a fantastic extension to Derby’s Future High Street bid and will bring additional investment, jobs and desirable city living into the heart of Derby, while also improving the public realm and flood defences.” Countryside Properties lets 359,305 sq ft manufacturing facility Mountpark Logistics, a developer of industrial and logistics property, has leased a 359,305 sq ft purpose-built manufacturing facility to Countryside Properties at its Mountpark Bardon II scheme in the East Midlands. Countryside plans to use the building to make its advanced modular panel system that will deliver around 3,250 new homes a year for the company’s three Midlands regions when the factory is fully operational. The facility will create over 100 jobs, including apprenticeships for the local area. Les Brown, Managing Director, Countryside Timber Frame Limited, said: “We aim to build 6,000 modular homes a year by 2023 and this new facility is an important part of our development strategy. “Mountpark Bardon II is centrally located, close to Junction 22 of the M1 motorway, so we will be in an ideal position to deliver components to our sites across the Midlands.” With full planning consent in place, Mountpark hopes to start construction work as soon as possible. The new Countryside facility will be the second building at Mountpark Bardon II, where the company recently completed a 579,160 sq ft national distribution centre for VF Corporation. Mountpark has already delivered 1.4 million sq ft at the first phase of its Bardon development with lettings to Amazon, Eddie Stobart and Pharmacy2U. Tom Kilmister, Development Director, Mountpark UK & Ireland, said: “Pressure on UK housing supply is well documented and Countryside’s pre-fabricated housing strategy offers an exciting and innovative solution. We look forward to welcoming the company to Mountpark Bardon II and working with the team to deliver a state-of-the-art manufacturing facility that will accommodate Countryside’s growth plans.” 14 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk Go ahead for new industrial units at Nottinghamshire business park Clowes Developments, the Derbyshire based developers, have been granted planning consent by Bolsover District Council for two additional industrial units to be constructed at Castlewood Court. The 31,396 sq ft and 12,484 sq ft units now added to the masterplan follow the announcement of planning consent for a 24,842 sq ft unit which has already been pre-let to CST Industries. The construction of all three units will see Plot 11 built out in its entirety. Current occupiers at the wider Castlewood Business Park include Alloga, Bombardier, Co-Op, Middle Brook Transport and Parker Knoll. Hannah Bailey, Senior Surveyor at Clowes Developments, said: “After having built out Castlewood Business Park over the last 10 years, We recognise that the market has been desperately lacking in high quality smaller scale industrial units in the area and therefore we are embracing this opportunity to build speculative units to meet this demand.” 06-15.qxp_Layout 1 03/07/2020 15:20 Page 9PROPERTY NEWS 1.65 million sq ft logistics property deal completes in Leicester A major industrial property deal has competed in the East Midlands. Neovia Logistics has completed the sale and leaseback of its Desford Campus, Leicester, with Griffen UK, an international real estate investment and development fund managed by Griffen Capital. The 1.65 million sq. ft. facility comprises three modern warehouse buildings and is strategically located in the heart of the East Midlands golden triangle. In addition to the 82-acre operational campus, Griffen UK has also acquired an adjoining 46-acre site with immediate development potential from Neovia. The sale price was undisclosed. Property consultancy Dove Haigh Phillips (DHP) and law firm Walker Morris helped to broker the transaction between Neovia Logistics, a third-party logistics provider, and Griffen UK. Neovia CEO Pat Olney said: “Having operated from this campus since 1987, Desford is Neovia’s largest global facility and continues to be of key operational importance. This transaction aligns with our asset-light global business model and establishes a significant partnership with a leading property investor for future collaboration.” Rui Nobre, CEO of Griffen, added: “This acquisition provides Griffen with an excellent opportunity for both large-scale development and potential future redevelopment. “Griffen continues to have a high conviction in the UK logistics sector so, notwithstanding the outsized challenges brought about through trying to close in the midst of a financial and pandemic crisis, we see this as a lucrative golden triangle purchase to add to our institutional grade portfolio of strategically located logistics assets in the UK.” Plans revealed to transform Chesterfield office block into flats New plans to convert a run-down office block in Chesterfield town centre into apartments have been revealed. Nottingham-based ALB Group have bought Burlington House, in Burlington Street, for a seven- figure sum. The company is set to apply to Chesterfield Borough Council for planning permission to turn the two largely vacant upper floors into 40 apartments, keeping the ground floor for commercial use, where tenants already include Rebel Menswear, H Samuel, BetFred, Bird’s Bakery and Max Speilman. The four-storey 37,000 sq ft building is also home to the former Tiffany’s Bar and Restaurant, which closed its doors around four years ago and has stood empty ever since. Property consultants FHP acted on behalf of the previous owners and sold the building to ALB Group. The company has looked after lettings in the building over the past five years. Arran Bailey, Managing Director of ALB Group, explained the attraction of the investment. He said: “The offices will make fantastic flats in the centre of Chesterfield, which will increase footfall on the high street. “The development will breathe life into this part of the town, adding vitality and vibrancy. “Chesterfield is such a good area to invest in as it is in a great location, with the Peak District and M1 on its doorstep, and it is an ideal, affordable commuter base for those working in cities like Sheffield, Derby and Nottingham, with London less than two hours away by train.” Work to construct two new industrial units has started at Derbyshire County Council and HBD’s regeneration site Markham Vale. Aver Property Partnership Limited, a joint venture between Ergo and NFU Mutual, is building the two units at Markham Vale, off junction M1 29a, in a £25 million deal. The units, measuring 221,518 square feet and 75,000 square feet, are being built on the north side of the business and logistics park and will be available to purchase or lease. Construction of the two units will be carried out by Derbyshire-based firm Bowmer and Kirkland. Derbyshire County Council Cabinet Member for Clean Growth and Regeneration, Councillor Tony King, said: “This investment in Markham Vale shows a great level of confidence in the Derbyshire economy and its potential for growth. “As we continue our work to support local businesses to recover from the downturn brought about by the Coronavirus pandemic, it’s important that we continue to provide new opportunities for investment, bringing the potential for new jobs and helping to keep the economy moving. “This deal sends a strong signal to other investors that Derbyshire is a place that helps businesses to survive and thrive and I’m pleased that the construction contract has been awarded to a local business providing a further boost for the area and the local economy.” www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 15 Work starts on two new units at Markham Vale 06-15.qxp_Layout 1 03/07/2020 15:21 Page 1016 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk COMMERCIAL PROPERTY For many, the property market offers a barometer through which to gauge the health of the economy. Over the last few months, as the coronavirus crisis continued to wreak havoc on sectors right across the industrial spectrum, property has continued to be negatively affected. From this, it was clear that the effect of COVID-19 was pervasive and that this impact ran deep into the economy. As we’ve explored in previous issues, the pandemic essentially put the entire market on hold, with valuations no longer able to take place. Recently, however, valuations have resumed and there’s been some encouraging signs that the market is recovering, if slowly. Changes in government guidance has allowed business centres to open once again, allowing prospective new tenants a physical viewing. Of course, viewings won’t take place as they had done pre-pandemic, but with social distancing measures in place alongside enhanced cleaning routines. Before these changes, anyone interested in viewing a business centre was forced to do so virtually. These virtual viewing were becoming more commonplace even before the lockdown as property owners and estate agents seize innovative technologies. The pandemic will simply hasten the widespread adoption of these virtual viewings and, in a few years, they will likely be standard across the property market. As well as adhering to safety measures, they also allow international viewings to take place without anyone having to get on a plane. So not only are they safer in this current climate, but also a cleaner, greener way to undertake a viewing. In many cases, these viewings concern businesses looking for new accommodation, but what about those that are struggling with rents of their existing facilities during the pandemic? The latest statistics show that sixty-eight per cent of businesses that have a physical location such as an office or warehouse are negotiating rent or lease reductions with landlords. Moreover, a third have decided to leave their premises entirely as working from home has proven successful. Although many businesses have taken to working from home with aplomb, it isn’t suited to every business – nor can every business easily operate 19 Á market With encouraging recovery signs taking place in commercial property, it’s clear the market is moving towards a new normal. Mending the 16-19.qxp_Layout 1 03/07/2020 15:28 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 17 COMMERCIAL PROPERTY © Shutterstock /fizkes 16-19.qxp_Layout 1 03/07/2020 15:28 Page 2Armstrong house Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, the flexible in/out terms of contract mean confidence when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements, give Scotts Property a call today on 01472 267000 and ask about Armstrong House. Last remaining office suites Prime location in Grimsby Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability Easy in/out terms A range of affordable office sizes 3 3 3 3 3 Armstrong House, Armstrong Street, Grimsby DN31 2QE Tel: (01472) 310301 • Email: s.fisher@blmgroup.co.uk www .shutter stoc k.com/ter ekho v igor www .shutter stoc k.com/Y entafer n 16-19.qxp_Layout 1 03/07/2020 15:28 Page 3www .shutter stoc k.com/Y entafer n from domestic settings. Needless to say, many businesses and their employees have been keen to get back to an office environment. Unsurprisingly, office operators and facility owners have also been rather keen to get their tenants back in. With the lifting of certain government-imposed restrictions in early June, many of the UK’s network of 5,000 shared office spaces have tentatively re- opened. Reopening a shared office space might be one of the most difficult like many public spaces with high footfall. Centres with large open plan shared co-working desks face the biggest challenge – the government is actively discouraging this type of workspace for now. Centres which are formed from mainly private office suites are obviously an easier option and with only thirty per cent of staff thought to be returning to work over the next few months, keeping distance is much easier when offices are closed off from each other. Locking down communal spaces within an office building restricts the chance of contamination. With the Government issuing advice to wear face protection on public transport, it is thought that this clear message will help employees feel confident in the transition back to working in a city centre office environment. The first stage of re-opening shared offices took place in June, with the second taking place in July. This second stage will allow access to be open to include visitors, some restrictions may apply; external visitors to be allowed access to meeting rooms; reception services resume, and café areas to open based on government guidelines. Another encouraging sign is that demand in commercial property market recovering to pre-lockdown levels. According to analysis from real estate Rightmove, activity on its commercial real estate (CRE) portal is six per cent higher in May this year than it was in May 2019. The industry sectors performing most strongly are industrial and logistics, land and development, retail and offices. “The COVID-19 pandemic has shown just how quickly markets can change, and therefore timely, granular data is more important than ever,” said William Matthews, Partner and Head of Commercial Research at Knight Frank. “This analysis provides a clear indication that interest in commercial property remains intact, which we expect to only increase throughout the year.” Charles Binks, Head of Industrial and Logistics at Knight Frank, added: “The Rightmove data echoes what we are seeing on the ground across our network. In addition to a surge in post COVID-19 short term requirements, we have started to see an increase in longer term enquiries across all size bands, with enquiry levels ahead of last year.” The commercial property market continues to adjust both to shifting government guidance and to increasing demand from tenants, old and prospective. As we move towards the ‘new normal’, the market must continue to adapt and respond in order to enjoy pre-pandemic levels. © Shutterstock /zhu difeng www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 19 COMMERCIAL PROPERTY 16-19.qxp_Layout 1 03/07/2020 15:28 Page 4Next >