Plans for further commercial units in Rotherham have been submitted, signalling a return of speculative development at Templeborough.
The first phase of works at the £31m Magna 34 Business Park were completed in 2008 where Sheffield-based joint venture partners, Loxley Land and Property and Jaguar Estates, predicted it would eventually create around 600 jobs for the region.
The 19 acre park located off Junction 34 of the M1 is on the historic site of the former steelworks and before that, a Roman fort. 10,000 sq ft of office and industrial space is home to the likes of HS Atec, Grayson Fixings and Sortec Software Development. The massive 152,421 sq ft distribution unit, empty since completion in 2008 was taken by Parcelforce in 2014 and later bought by LondonMetric Property Plc in a £10.3m deal.
Now a planning application has been submitted to enable new commercial units to come forward on remaining plots at the site.
Having gained planning approval in 2007, the site benefits from further consent for 40,000 sq ft of industrial use and 10,000 sq ft of office use. However, the current proposals are to replace previously proposed uses on the northern part of the site, with around 26,000 sq ft of industrial use.
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The speculative development will be eligible for B1(c) light industrial, B2 general industrial & B8 storage or distribution and at this stage it is not known who the end users of the different units will be or indeed how many staff will be employed.
The plans, drawn up by Self Architects, show an indicative layout of two buildings which could be subdivided into four units immediately to the west of the first phase, with three buildings to the north between the first phase and RiDO's Fusion business centre, which have the potential to be split into nine units.
The development plots at Magna 34 are allocated within the Sheffield Enterprise Zone, which offers business rates relief worth up to £275,000 to a business over a five-year period.
With GVA and Knight Frank as agents, units have been available on a pre-let or pre-sale basis with consideration given to land sales.
At nearby Tinsley, Rotherham-based developer, E V Waddington Ltd, specialist in brownfield development, continues to successfully bring speculative developments to the market at the completed Vantage Park.
In 2004, Euro Dismantling Services and developer Jaguar Estates were appointed by Corus (now Tata Steel) as joint developers for the former Mayer Parry and Rolling Mills sites on Sheffield Road in Templeborough, Rotherham.
EDS undertook large scale decontamination, groundworks break out and land remediation to create development plots on the sites and following remediation, EDS established Loxley Land and Property to take the schemes forward.
EDS encountered financial problems in 2013 and the decontamination, access & insulation and nuclear trading divisions were acquired by OCS in 2014.
Property investors, LondonMetric Property Plc, has snapped up the massive new Parcelforce distribution centre in Rotherham in a £10.3m deal.
The UK real estate investment trust (REIT) is listed on the London Stock Exchange and invests across the UK in retail and distribution properties as well as Greater London real estate opportunities.
Royal Mail Group's express parcels business, Parcelforce Worldwide, opened its new depot in Rotherham at the end of 2013. The UK and International parcel delivery service took over the 152,421 sq ft distribution unit at the Magna 34 development at Templeborough that had been empty since it was completed by JF Finnegan in 2008.
The new depot is part of a UK-wide £75m expansion programme which is expected to create up to around 115 jobs in Rotherham over the next three years. The Rotherham operation currently employs around 110 people but this is expected to increase to up to around 225 people over the next three years as the number of parcels the company handles increases.
The massive unit now includes a jet wash facility, new ramps and fencing and new access doors and has the capacity to hold up to 141 vehicles and handle up to thirty thousand parcels a day. It is about seven times the floor space of the previous site on Parkgate Business Park.
The property is the largest parcel distribution centre in the country outside of Parcelforce's main Coventry hub. Around 12,000 parcel movements are made per day on average, peaking at 25,000 per day in busy periods. Currently, Parcelforce only utilise 80% of the warehouse which will be fully occupied within two to three years to keep pace with the rapidly expanding home delivery market.
Parcelforce has taken a 15-year lease and paying around £650,000 per annum with fixed rental uplifts of 1.75% per annum compound in 2018 and 2023.
Sheffield agents, Commercial Property Partners (CPP), had been advertising the investment opportunity with a guide price of in excess of £9.8m and LondonMetic said that the £10.3m deal represents a net initial yield of 6.0%.
JF Finnegan was represented by Commercial Property Partners as agent and DLA Piper as lawyer, with CBRE acting as agent for LondonMetric.
Andrew Jones, chief executive of LondonMetric, said: "[We are] extremely pleased to have secured our second Royal Mail distribution centre. This will further strengthen our relationship with them as well as delivering a long, strong and growing income."
Roger Haworth, partner at Commercial Property Partners, added: "This deal is a great result in the current market where there is strong demand for prime, long-let distribution assets with fixed uplifts, let to good covenants. The high profile nature of Royal Mail, which was listed on the London Stock Exchange in October 2013, coupled with the quality of build, proved key in attracting investor interest."
The Templeborough property fits into the portfolio of the trust in that they operate an occupier-led approach with an asset focus on properties with enduring occupier appeal providing opportunities to improve both rental values and the security and longevity of income; and limited risk redevelopments with the aim of enhancing shareholder returns.
Created in a merger between London & Stamford Property plc and Metric Property Investments plc, the trust reported a profit of £125.3m for the year ending March 31 2014.
Andrew Jones, added: "The last six months has seen a dramatic change in the UK property market particularly for assets outside the south-east. We have seen liquidity return to the vast majority of the UK market for the first time since 2007 and strong secondary assets outperforming prime real estate, a trend we expect to continue.
"As yields on prime real estate head towards record lows there is an increasing acceptance that yield compression is a button that can't be pushed forever. Conversely strong secondary assets continue to offer higher sustainable income returns and with an improving economic outlook and little new development, will also begin to deliver real income growth.
"Our focus on out-of-town retail and distribution has not only simplified the business but created a portfolio of good quality real estate with strong occupier appeal and desirable income characteristics, as well as laying the foundations for income growth."
OCS, the UK-based total facilities management provider with global revenues of £840m, has acquired certain business and assets of Euro Dismantling Services, EDS Plant Solutions and EDS Group Holdings from Joint Administrators at BDO.
The acquired business units are subsidiaries of Silverdell plc and comprise the Decontamination, Access & Insulation and Nuclear trading divisions operated by EDS. It is unclear what will happen to the construction and property development divisions which have played a significant part in the regeneration of the site of the former Templeborough Rolling Mills in Rotherham.
Silverdell encountered financial problems when a subsidiary went into administration in summer 2013. Shares were suspended from AIM in July and cancelled on 2 January 2014. When the shares were suspended in July, Silverdell Plc was valued at over £40m.
Advertisement In December, turnaround investor Rcapital acquired the company's £16m debt and OCS said that it was made aware of the opportunity on 23 December and worked over Christmas to undertake due diligence and close the deal. Financial terms were not disclosed.
In 2004, Euro Dismantling Services and developer Jaguar Estates were appointed by Corus (now Tata Steel) as joint developers for the former Mayer Parry and Rolling Mills sites on Sheffield Road in Templeborough, Rotherham.
EDS undertook large scale decontamination, groundworks break out and land remediation to create development plots on the sites. It resulted in the successful Magna 34 development that is now home to Royal Mail, HS Atec and Grayson Fixings.
Following remediation, EDS established Loxley Land and Property to take the schemes forward.
Silverdell acquired Sheffield-based EDS in 2012 for £18m. Its founder, Andrew McGee has since established the WRD Group which took over the waste processing site at Templeborough last year after previous operators, Sterecycle went in administration.
The UK's largest independent parcels, mail and logistics services company, UK Mail Group PLC, has relocated across Rotherham to the Magna 34 Business Park in Templeborough.
UK Mail has relocated their South Yorkshire operation from Hellaby and has signed a ten year lease for a brand new 27,232sq ft industrial unit at the development by Jaguar Estates and Loxley Land and Property.
GVA and Knight Frank represented the developers and UK Mail Group PLC was unrepresented. Terms of the deal were undisclosed.
With a national network of more than 50 sites and 3,500 vehicles, UK Mail Group handles around three billion items from over 2,000 customers every year, constituting 17 per cent of all addressed mail within the UK and making it the busiest alternative to Royal Mail.
Paul Hutchinson, Property Manager for UK Mail Group PLC, said: "We now have around 80 employees in our South Yorkshire operation and had outgrown our existing facility.
"Due to the nature of our business, we need quick and direct connectivity to the motorways and the ability to access multiple routes should one be affected by traffic. Magna 34 provides this in addition to offering the flexibility to tailor and fit-out the unit to our exact specifications.
"We look forward to continuing to provide an excellent service to our broad customer base which extends across Sheffield and Doncaster."
Rebecca Schofield, Associate at Knight Frank's Sheffield office added: "UK Mail Group PLC conducted an extensive search for a new facility and due to their delivery requirements, accessibility to all motorway networks was a primary factor. Magna 34 stood out in terms of both location and quality of the facility itself as the natural choice."
UK Mail Group's unit is the largest of eight industrial units which were completed as part of Phase 1 of the scheme, of which just one unit of 6,200sq ft now remains available for occupancy. A total of 10,000sq ft of BREEAM "Good" rated office space was also developed over two buildings, the first of which is fully occupied whilst the second has secured lettings to three national organisations since fit-out was completed last year. A limited number of serviced office suites which can accommodate between 2 and 15 people are available.
Additionally in Phase 1, the development partners teamed up with JF Finnegan to deliver a 151,716sq ft distribution unit for which interest is being invited.
Patrick Herbert of Jaguar Estates said: "With just one small and one large industrial unit left and limited office availability, Phase 1 has been an incredible success and we will now be looking ahead to Phase 2."
Plans for Phase 2 of Magna 34 include design and build opportunities for office accommodation from 2,000sq ft to 20,000sq ft and industrial units from 2,500sq ft up to 40,000sq ft.
Loxley Land and Property and Jaguar Estates' £31M Magna 34 Business Park at Templeborough in Rotherham has secured four new tenants to its BREEAM "good" rated office accommodation. The four companies, two relocations and two start-up organisations, are occupying 40% of the A06 Office Building which was launched towards the end of last year as part of Phase 1 of the 19 acre park. Grayson (GB) Ltd purchased 3 of the industrial units totalling 7,500sq ft just weeks after their completion and the latest tenant to move in is B2B telecommunications provider Duocall Communications. Since their establishment in 2007, Duocall Communications has doubled its number of employees and has grown its turnover from some £200,000 in year one to circa half a million. They have relocated from Eastwood Trading Estate in Rotherham as part of their expansion strategy. Director of Duocall Communications, Phil Coley, said; "The business has gone from strength to strength in the last two years and we wanted new office space from which to service our nationwide client base. Magna 34 provides an excellent working environment for our existing team and will undoubtedly assist us when recruiting new staff." Eldon Stevens, Property Manager for Loxley Land and Property added: "The service office option that we are offering at Magna 34 has proven to be very attractive for companies looking for flexible, hassle-free operations set-up. This combined with the sustainable, sleek office and meeting room space that we have taken great care in designing offers a unique product within the locality." Agents for the scheme, GVA Grimley and Knight Frank, are handling significant interest in the park. Magna 34 website
Magna 34 Business Park has secured its first industrial occupier just weeks after phase 1 of the Rotherham regeneration scheme was completed. Grayson (GB) Ltd has purchased 7,500sq ft of industrial accommodation over 3 units for an undisclosed sum. Grayson represented themselves and GVA Grimley, joint agents on Magna 34 with Knight Frank, secured the deal for the Magna 34. Grayson (GB) Ltd supplies fixings, fasteners and consumables to the construction industry and local authorities across the UK. This established business is relocating from leased accommodation at Centurian Business Park in Rotherham and will be fully operational at their new Magna 34 units by the first quarter of 2009. Clare Spivey, Graysons General Manager, said; "Grayson (GB) Ltd is a start-up business and in the two years it has been trading has experienced rapid growth in a challenging market. In line with our recent expansion plans, we have been looking for accommodation to purchase which can accommodate the growing product lines and staff numbers. Therefore we were not only looking for high quality, well positioned workable space but also a good investment opportunity. Magna 34 met all our criteria and we are looking forward to continued business success in our new location." Eldon Stevens, Property Manager for Loxley and Property joint venture developer on Magna 34 with Jaguar Estates, continues; "We have always been sure of the success of Magna 34 as an office and industrial location and this early deal confirms that our initial confidence was justified. The property industry is experiencing challenging times but deals such as this prove that if you have high quality stock in the right location at the right price, there will always be a requirement." Grayson website
The first phase of works is now complete at the £31m Magna 34 Business Park in Rotherham and it is expected to create around 600 jobs for the region. Joint venture partners Loxley Land and Property and Jaguar Estates have unveiled the first phase of office and industrial accommodation, all of which is ready for immediate occupation, at the 19 acre park located off Junction 34 of the M1 at Templeborough. Phase 1 encompasses 10,000sq ft of Grade A, BREAM ‘Good’ rated contemporary office accommodation and a 151,716sq ft distribution unit for which the Magna 34 development partners have teamed up with JF Finnegans to deliver. Phase 2 of the development will incorporate further office and industrial units, in addition to design and build opportunities, ranging from 806sq ft up to around 40,000sq ft. Property Manager for Loxley Land and Property, Eldon Stevens, said: "We are incredibly proud to unveil this first phase of office and industrial space. Our development agenda was to capitalise on the site’s strategic location and create a business park that could accommodate a range of office and industrial occupiers." Patrick Herbert of Jaguar Estates added: "Magna 34 has transformed the approach to Rotherham from the M1 and our commitment to developing high quality accommodation can be seen with this first phase. The office offering is sleek and contemporary and the serviced option delivers the flexibility potential occupiers are increasingly seeking."
The Yorkshire Post reports that decommissioning specialist, Euro Decommissioning Services (EDS), has established a property division to take advantage of a niche in the property market. Loxley Land and Property (LLP) will be headed by Eldon Stevens, the former development director of Velocity Estates in Sheffield, as it looks to take advantage of the current market conditions. EDS specialises in working on high risk sites and over the past few years, the company has taken a new direction into cleaning up post-demolition land for redevelopment. One such site is the site of the former rolling mill at Templeborough in Rotherham which has been transformed into the Magna 34 Business Park. The £31 million joint development with Jaguar Estates saw the developers manage the whole process of the development, from demolition, remediation, planning, securing an Objective One grant of £2.7m and managing the build contract. Patrick Herbert of Jaguar Estates recently told The Chamber: "The site was known for the old rolling mill which was a local landmark and this has been replaced with a range of offices and industrial and a large distribution warehouse which provides a significant statement itself. The scheme will create a huge physical and economic impact for the area, greatly enhancing the corridor between the M1 motorway and Rotherham town centre. We expect around 600 jobs to be created once the development is complete." Magna 34 website Yorkshire Post article The Business Desk article
The property is the largest parcel distribution centre in the country outside of Parcelforce's main Coventry hub. Around 12,000 parcel movements are made per day on average, peaking at 25,000 per day in busy periods. Currently, Parcelforce only utilise 80% of the warehouse which will be fully occupied within two to three years to keep pace with the rapidly expanding home delivery market.
Loxley Land and Property and Jaguar Estates' £31M Magna 34 Business Park at Templeborough in Rotherham has secured four new tenants to its BREEAM "good" rated office accommodation. The four companies, two relocations and two start-up organisations, are occupying 40% of the A06 Office Building which was launched towards the end of last year as part of Phase 1 of the 19 acre park. Grayson (GB) Ltd purchased 3 of the industrial units totalling 7,500sq ft just weeks after their completion and the latest tenant to move in is B2B telecommunications provider Duocall Communications. Since their establishment in 2007, Duocall Communications has doubled its number of employees and has grown its turnover from some £200,000 in year one to circa half a million. They have relocated from Eastwood Trading Estate in Rotherham as part of their expansion strategy. Director of Duocall Communications, Phil Coley, said; "The business has gone from strength to strength in the last two years and we wanted new office space from which to service our nationwide client base. Magna 34 provides an excellent working environment for our existing team and will undoubtedly assist us when recruiting new staff." Eldon Stevens, Property Manager for Loxley Land and Property added: "The service office option that we are offering at Magna 34 has proven to be very attractive for companies looking for flexible, hassle-free operations set-up. This combined with the sustainable, sleek office and meeting room space that we have taken great care in designing offers a unique product within the locality." Agents for the scheme, GVA Grimley and Knight Frank, are handling significant interest in the park.
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Magna 34 Business Park has secured its first industrial occupier just weeks after phase 1 of the Rotherham regeneration scheme was completed. Grayson (GB) Ltd has purchased 7,500sq ft of industrial accommodation over 3 units for an undisclosed sum. Grayson represented themselves and GVA Grimley, joint agents on Magna 34 with Knight Frank, secured the deal for the Magna 34. Grayson (GB) Ltd supplies fixings, fasteners and consumables to the construction industry and local authorities across the UK. This established business is relocating from leased accommodation at Centurian Business Park in Rotherham and will be fully operational at their new Magna 34 units by the first quarter of 2009. Clare Spivey, Graysons General Manager, said; "Grayson (GB) Ltd is a start-up business and in the two years it has been trading has experienced rapid growth in a challenging market. In line with our recent expansion plans, we have been looking for accommodation to purchase which can accommodate the growing product lines and staff numbers. Therefore we were not only looking for high quality, well positioned workable space but also a good investment opportunity. Magna 34 met all our criteria and we are looking forward to continued business success in our new location." Eldon Stevens, Property Manager for Loxley and Property joint venture developer on Magna 34 with Jaguar Estates, continues; "We have always been sure of the success of Magna 34 as an office and industrial location and this early deal confirms that our initial confidence was justified. The property industry is experiencing challenging times but deals such as this prove that if you have high quality stock in the right location at the right price, there will always be a requirement."
The first phase of works is now complete at the £31m Magna 34 Business Park in Rotherham and it is expected to create around 600 jobs for the region. Joint venture partners Loxley Land and Property and Jaguar Estates have unveiled the first phase of office and industrial accommodation, all of which is ready for immediate occupation, at the 19 acre park located off Junction 34 of the M1 at Templeborough. Phase 1 encompasses 10,000sq ft of Grade A, BREAM ‘Good’ rated contemporary office accommodation and a 151,716sq ft distribution unit for which the Magna 34 development partners have teamed up with JF Finnegans to deliver. Phase 2 of the development will incorporate further office and industrial units, in addition to design and build opportunities, ranging from 806sq ft up to around 40,000sq ft. Property Manager for Loxley Land and Property, Eldon Stevens, said: "We are incredibly proud to unveil this first phase of office and industrial space. Our development agenda was to capitalise on the site’s strategic location and create a business park that could accommodate a range of office and industrial occupiers." Patrick Herbert of Jaguar Estates added: "Magna 34 has transformed the approach to Rotherham from the M1 and our commitment to developing high quality accommodation can be seen with this first phase. The office offering is sleek and contemporary and the serviced option delivers the flexibility potential occupiers are increasingly seeking."
The Yorkshire Post reports that decommissioning specialist, Euro Decommissioning Services (EDS), has established a property division to take advantage of a niche in the property market. Loxley Land and Property (LLP) will be headed by Eldon Stevens, the former development director of Velocity Estates in Sheffield, as it looks to take advantage of the current market conditions. EDS specialises in working on high risk sites and over the past few years, the company has taken a new direction into cleaning up post-demolition land for redevelopment. One such site is the site of the former rolling mill at Templeborough in Rotherham which has been transformed into the Magna 34 Business Park. The £31 million joint development with Jaguar Estates saw the developers manage the whole process of the development, from demolition, remediation, planning, securing an Objective One grant of £2.7m and managing the build contract. Patrick Herbert of Jaguar Estates recently told The Chamber: "The site was known for the old rolling mill which was a local landmark and this has been replaced with a range of offices and industrial and a large distribution warehouse which provides a significant statement itself. The scheme will create a huge physical and economic impact for the area, greatly enhancing the corridor between the M1 motorway and Rotherham town centre. We expect around 600 jobs to be created once the development is complete."
