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Premier Inn could make way for 14-storey student block

2025-05-22 14:41:03 By

CGI of plans to redevelop the Premier Inn hotel site in Essington Street, Birmingham, into new student accommodation containing 546 bedrooms

New plans have been revealed to redevelop the site of a Birmingham hotel into student accommodation.

Under the proposals, the Premier Inn, in Essington Street, would be demolished to make way for a new 14-storey property containing 546 bedrooms.

Other amenities at the site near Broad Street would include study space, a garden and terraced areas.

A specialist operator would be appointed to run the accommodation and the hotel will continue to trade during the planning process.

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The brand's owner, listed group Whitbread, said the proposed move was part of its plans to build what it called a 'perfect portfolio' of locations across Birmingham.

Currently, the business has eight venues in the city and is looking for two new locations in the Smithfield and Snow Hill areas.

It is estimated there is a shortfall of more than 19,500 bedrooms for students across the city and full-time numbers are set to increase.

Whitbread's senior development manager Richard Pearson said: "With a significant shortfall of student bedspaces across the city, our proposals would provide much-needed accommodation which offers the very best experience for students.

"The building has been carefully designed to complement other properties on Broad Street and provide high-quality landscaping to enhance the neighbourhood.

"I would like to thank our project team for all the dedication and commitment in getting the plans to the current stage and I am looking forward to talking to residents and our other local stakeholders through our plans in the next few weeks."

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Commercial Property2025-05-22 14:41:03

Newcastle hotel group sells luxury Cheshire hotel in multimillion-pound deal

A Newcastle hospitality group is seeking new opportunities for growth after selling one of its venues to new owners in a multimillion-pound deal. Mere Court Hotel in Knutsford, Cheshire, has been sold to an unnamed North West hotelier for an undisclosed amount by Newcastle based Ailantus. The four-star country house hotel is set across seven acres of grounds, with 34 rooms and an AA Rosette restaurant. The deal to sell the luxury venue was overseen by Newcastle-based Mincoffs Solicitors. The law firm has been advising Gosforth-based Ailantus group for more than 25 years, with the firm's other venues including the George Washington Hotel in Washington, the Holiday Inn at Gosforth Park and the Quality Hotel in Boldon, South Tyneside, as well as other hotels across the North of England. Mincoffs’ corporate partner John Nicholson worked with Ailantus director, Neel Chawla, to deliver the transaction. Mr Chawla said: “The corporate team, spearheaded by John Nicholson, have once again transacted diligently and efficiently in our group’s first hotel asset disposal. We look forward to working with Mincoffs on future transactions.” John Nicholson said: “Ailantus are a longstanding client of the firm and Mincoffs has advised Neel and the team on their portfolio for a number of years. It was our pleasure to act on the sale of this venue, as part of the group’s ongoing restructure.

Commercial Property2025-05-22 14:41:03

Plans for new 120,000 sq ft Senedd headquarters building out to tender

The Senedd Commission has issued a tender for a new 120,000 sq ft headquarters building in Cardiff Bay. The corporate body of the Senedd is inviting bidders to submit proposals for a new office location to replace its existing Ty Hywel home - a 1990s red brick building connected to the Senedd debating chamber via an enclosed walkway. The Senedd’s current lease on Ty Hywel with landlord Equitix, expires in 2032. The lease carries an annual rent of £2.3m, exclusive of VAT. While a decision will not be made until the end of the year, an invitation to tender will remain open until next month. The tender states: “The Senedd is seeking to procure accommodation of approximately 11,000 sq mts (around 120,000 sq ft), with at least 90% of its capacity in close proximity to the existing Senedd building. “The accommodation must allow for all required direct infrastructure links between the two buildings and be sufficiently close to ensure the secure, free flow of Senedd Members and staff between the new accommodation and the Senedd building.” However, the Senedd could opt not to pursue a new-build option and instead negotiate a new lease with Equitix to remain in Ty Hywel beyond 2032. This would require significant investment in the building, which, from 2026, will also need to accommodate additional Senedd Members and their teams. There is also potential for the Welsh Government to acquire the building from Equitix and lease it back to the Senedd. As a repairing and insuring lease the Senedd is responsible for maintaining the building, where there is understood to be a liability for replacing windows at a cost of several million pounds. The Senedd doesn’t have financial reserves to purchase the building itself and operates on an annual budget (2025/26) of £84.3m. Property advisory firm Avison Young is assisting the Senedd in evaluating its property options, focusing on the best outcome for the public purse. If a decision is made to construct a new building, the Senedd is providing enough time for planning approval, construction and fit-out. If the Senedd decides to vacate Ty Hywel a new building would cost potentially around £60m. To make any project financially viable, a selected developer would require the Senedd to commit to a long-term lease - potentially up to 40 years. Given current construction and borrowing costs a new office building in Cardiff would need pre-let agreements at around £40 per sq ft for leases of shorter duration. Cardiff’s current headline office rent currently stand at £28 per sq ft, compared to nearly £50 in Bristol. A new-build agreement could also eventually see the freehold owned by the Senedd or the Welsh Government. A Senedd spokesperson said:“The lease on Ty Hywel runs out in 2032, and there are several potential options for the long-term office needs of the Senedd. “We have a narrow window of opportunity to explore these options thoroughly and credibly to ensure the best value for taxpayers’ money. We are conducting a procurement process in line with HM Treasury advice to identify the best long-term solution. “We recognise that times are incredibly tough across Wales, and our absolute priority is securing the best possible value for money.” If a new building is approved, the rent would be higher than that for Ty Hywel. However, it would be a far more energy-efficient and purpose-built facility, potentially making the overall cost neutral. A potential location for a new building is a vacant development site adjacent to the Senedd chamber. Cardiff-based property developer Rightacres acquired two connected parcels of land (known as 1 and 2 Assembly Square) from financial services giant Aviva in 2023. A potential location for a new building is a vacant development site adjacent to the Senedd chamber. Cardiff-based property developer Rightacres acquired two connected parcels of land (known as 1 and 2 Assembly Square) from financial services giant Aviva in 2023. With the Senedd seeking direct infrastructure between any new building and the debating chamber, there would seem to be limited alternative choices. There is Porth Teigr, a nearby site owned by the Welsh Government after its acquisition from Igloo, a sustainable real estate fund managed by Aviva. The Welsh Government is currently developing a masterplan for the 30-acre site. In theory, the Welsh Government could finance a new-build project itself using its mutual investment model, a long-term repayable financing method. Another option that could be ruled out is Atlantic Wharf, where Cardiff Council has long-term plans for a major mixed-use development centered around a new indoor arena. While at an early stage of planning, Cardiff Council is also considering a public sector hub as part of the wider Atlantic Wharf development. The hub could span 500,000 sq ft and include a new 100,000 sq ft headquarters building for Cardiff Council. The council's existing 240,000 sq ft headquarters at Atlantic Wharf is set to be demolished to make way for further development. If the Senedd moves, Ty Hywel (formerly known as Crickhowell House) may struggle to attract new tenants in the current market, while repurposing it for residential use would be costly.

Commercial Property2025-05-22 14:41:03

Harworth reports record 2024 on path to £1bn assets

Property firm Harworth says it is on track to accumulate £1bn in assets by the end of 2027 after what it described as a record year. The Yorkshire-based developer and landlord says that as key land sales complete, it is confident of meeting its target of £1bn European Real Estate Association Net Disposal Value (EPRA NDV) - a key measure of assets used by real estate investment trusts. In a trading update to the London Stock Exchange, Harworth pointed to its £106.6m deal with Microsoft for land at the site of the former Skelton Grange power station near Leeds and completion of a £53.5m sale at Ansty in Warwickshire. Bosses also pointed to a record 2,385 residential plots sold, including 13 deals with a headline sales value of £104.1m, and against a group target of 2,000 plot sales on average per year. Those deals included national and regional housebuilders and affordable housing providers. Meanwhile there was 4.4m sqft of industrial and logistics land sold for £230.1m, giving Harworth a pipeline capable of delivering 33.6m sqft of space. Following a spate of planning approvals, the group now has 8.4m sqft of industrial and logistics land with consents. During the year 100,000 sqft of direct development was completed and Harworth was on site at the year end with another 270,000 sqft of space which is expected to be completed within a year that is anticipated to bring £2.7m annualised rental income. The majority of the space (68%) was kept in the group's investment portfolio with the remainder built for owner occupiers. Lynda Shillaw, chief executive of Harworth, said: “2024 has been a record year for Harworth operationally and, as we enter 2025, we remain confident in our ability to reach our £1bn EPRA NDV target by the end of 2027. "We have an extensive platform to scale the business, owning and controlling a sizeable land pipeline capable of delivering 33.6m sqft of industrial and logistics space and 31,264 new homes, and we remain well positioned in structurally undersupplied sectors that are fundamental to the UK's economic growth. With low debt and high available liquidity, we are well placed to take advantage of opportunities whilst remaining resilient through the near-term macro-economic uncertainty. "The consistency of Harworth's performance over time continues to highlight the agility and resilient nature of our business model, and our team's expertise in identifying and driving significant latent value from the portfolio. We continue to make solid progress in delivering our strategy and are confident in our ability to continue to drive both strong returns and long-term value from our landbank and development activities."

Commercial Property2025-05-22 14:41:03

Accountancy giant takes space at landmark Bristol office development

A landmark Bristol city centre office development has secured a UK professional services firm as its latest tenant. Forvis Mazars is taking 7,800 sq ft of Grade A space on the eighth floor of Assembly Building C. The company joins a community of businesses at the mixed-use scheme including law firm Clarke Willmott and Norwegian wireless fabless manufacturer Nordic Semiconductor, which are within the same building. Other businesses in the development include real estate firm Knight Frank in Building B and BT, which has its South West hub - employing some 2,500 staff - in Building A. The Assembly scheme comprises three office blocks overlooking Bristol’s historic harbour. The project is part of the growing Bristol Temple Quarter Enterprise Zone next to Temple Meads railway station. The public realm surrounding the development is now complete, including a public art trail by acclaimed artist Alex Chinneck. The scheme has also enabled the re-opening of a historic walkway through the site, reconnecting Temple Meads to the city centre for the first time in 50 years. Assembly Bristol is represented by Savills and JLL as letting agents. Forvis Mazars was represented by Cushman & Wakefield. “Assembly Bristol is setting the standard for a mixed-use regeneration scheme, offering flexible and smart workspace across three buildings, as well as cafés and public space,” said Chris Meredith, director at Savills. “Incorporating the latest methods of construction and design, the buildings combine exceptional quality with excellent efficiency and impressive sustainability. It has been thoughtfully designed to deliver a thriving workplace with a focus on staff wellbeing, productivity and health."

Commercial Property2025-05-22 14:41:03

New property agency launches

A new agency specialising in the logistics sector in the Midlands has been launched by two experienced property professionals. Ed Cole and Richard James-Moore have unveiled Incore which will focus on land, development and leasing across the warehouse market. The duo were previously senior directors at property consultancy JLL and each has 20 years of experience in the sector. Incore will operate as a dedicated, director-only service covering the national market for large warehouses with a physical presence in the core Midlands and South regions. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. Mr Cole said: "We are really excited to launch Incore at this point in the cycle where we believe we can utilise our accumulated market knowledge and relationship network to add real value for our clients. "As the market moves into a new phase full of opportunity but not yet free of challenges, we believe our offering of highly experienced, hands-on advice can be a valuable source to both familiar and new clients in the sector." Mr James-Moore added: "It is very exciting to bring Incore to the market, providing clients a unique niche agency offering with director-led advice from both Birmingham and London and an entrepreneurial energy." Mr James-Moore has spent the last seven years at JLL where he led the Midlands industrial and logistics teams from its base in Birmingham city centre. He has advised on multiple key development projects including the strategic rail freight hub called West Midlands Interchange near Cannock and the award-winning Coventry Logistics Park. Mr Cole spent 16 years at JLL, becoming head of national logistics in 2018.

Commercial Property2025-05-22 14:41:03

New car park for nearly 700 vehicles in Cardiff Bay

Work on a new multi-storey car park for the Mermaid Quay mixed-use scheme in Cardiff Bay will start next month. Owners of the 150,000 sq ft waterfront development, that includes restaurants and retail outlets, are demolishing the existing car park and building a new facility in a multi-million-pound investment. The car park, which is scheduled to open in April next year, will have 680 spaces - nearly double the existing facility that has 380. As with the present facility the new car park will be operated by Mermaid Quay, which is owned by Schroders Capital UK Real Estate. The exact cost of the new car park is not being disclosed. The existing car park will stop operating on March 2nd with demolition beginning shortly after. Following a three month demolition phase, construction will take around nine months. It will have two additional floors than currently - adding over 300 new spaces. Improvements will also include more accessible spaces on the ground floor, increased parent and child spaces, as well as new electric vehicle charging points. It will also creation of a new layout and exits to help improve traffic flow. It will also include a cycle hub. To minimise the impact of the temporary closure, the management team will be working with neighbouring car parks to help guide staff and shoppers to alternative parking options. The investment improving the Mermaid Quay car park follows the recent public realm refurbishment works which have taken place across Cardiff Bay to enhance the visitor experience. Mark Nott, centre manager at Mermaid Quay said: “During the temporary closure of the Mermaid Quay car park we urge visitors to Mermaid Quay and wider Cardiff Bay attractions to check out alternative parking options before they travel. Our team will also be on hand to provide advice to those working and visiting the area on alternative ways to travel to the bay to help minimise disruption and ensure you continue to have an enjoyable experience whilst visiting Mermaid Quay.

Commercial Property2025-05-22 14:41:03

Manchester's building boom falters to 'lowest level in 10 years' as huge developments fall through

The great Manchester building boom slowed to its lowest level in a decade, the latest Deloitte crane survey has shown – but analysts are optimistic there's more development to come. The city saw the start of only 20 new construction projects in 2024, which the survey said was the 'lowest level in 10 years'. Despite the successive decline in new starts over three years, John Cooper, infrastructure and real estate partner at Deloitte, holds an optimistic view regarding Manchester's prospects. He said: "You only need to look at the skyline in Manchester to see just how much the city has changed over the last decade, as it has transformed it into a dynamic innovation hub. Our survey's findings demonstrate that despite ongoing pressures and a decrease in new starts, Manchester's construction sector remains active." In the combined area of Manchester and Salford, there were 58 developments under construction over the past year. That led to an 'significant increase' in completed projects, with 27 reaching completion. Residential initiatives were central to the construction sector, with 4,448 new homes finished in the previous year, while another 10,788 homes were still being built. With residential projects constituting over half of the new schemes and approximately 9,000 additional homes predicted to be ready within two years, market analysts suggest that "Manchester is on track to exceed the average annual demand for homes", reports the Manchester Evening News. Mr Cooper, said: “Despite economic headwinds and political uncertainty shaping much of 2024, the residential market in Manchester continues to deliver strong results. “The city’s commitment to addressing housing needs and the projected completions of approximately 9,000 new homes over the next two years means Manchester is on track to exceed the average annual demand for homes, identified in Greater Manchester policy.” “With Manchester’s leading higher education institutions also bringing in thousands of students every year, the city’s student residential sector is continuing to deliver more bedspaces, with a number of new permissions granted to ensure growing student demands can be met.” Office openings in Manchester have seen a significant increase, with 1.07 million sq ft marking the largest total since 2020. However, concerns persist about the lack of new office space available in the city centre in the coming years Mr Cooper added: “The shift to hybrid working patterns has created an opportunity to deliver high-quality office space that prioritises collaboration and sustainability. Manchester has certainly embraced this trend whilst seeing a shift towards refurbished offices which represents 68% of the total floorspace under construction in 2024. The pipeline of activity is strong, ensuring Manchester remains at the forefront of hybrid, sustainable office spaces that cater to changing working dynamics.” Professor Duncan Ivison, Vice-Chancellor of the University of Manchester, emphasised 'there is more to do' in 'attracting top talent to the city-region and empower them to push the boundaries of discovery and innovation'. In the hospitality sector, 258 new hotel rooms were completed last year, with an additional 1,181 expected by 2028. This expansion will support the growing demand for visits to Manchester, which has been boosted by the opening of Aviva Studios in 2023 and Co-op Live in 2024. Deloitte now estimates Greater Manchester's tourist economy to be worth £8.7b, a figure also bolstered by fans attending Manchester City and United matches. Last week BusinessLive reported on Manchester's big ambitions to become a £15bn tourist city. “Manchester boasts many unique cultural offerings, from its iconic music scene to its globally renowned football teams. New leisure developments are making the city a must visit destination, bringing world-class artists right to our doorstep. “The tourism sector was hit hard during the pandemic, however it’s clear that it has come out the other side stronger and more resilient, with Manchester alone accounting for £4.65 billion of tourism and supporting around 45,000 jobs. As a result, the demand for hotel rooms is growing further, with a strong development pipeline helping to ease strains on the sector.”

Commercial Property2025-05-22 14:41:03

Gloucester Quays shopping centre hails 'record year'

The owner of Gloucester Quays has reported a record year for the shopping centre following a successful Christmas trading period. Growth in sales in 2024 meant the outlet finished off the year 6.7% ahead of the national average, according to Peel Retail & Leisure. The Gloucestershire shopping destination was also boosted by Black Friday and some retailer offers in advance of that date, the company said. Across November and December, retail sales grew by 3.6% compared with 2023 – which was itself a record year – and food and drink sales were up 7.6%. The performance uptick was supported by the free-to-attend Christmas market, with more than 100 stalls. In 2024, an overall 7.4% year-on-year sales increase across Gloucester Quays’ current tenants was split between 6.1% for retail and 8.5% for food and drink outlets. Double-digit growth from fashion, homeware, and outerwear brands including Next, Skechers, All Saints, Mountain Warehouse, Puma, Crew Clothing, Le Creuset, and Suit Direct was boosted by new lettings for Pret a Manger and Bakers & Baristas. Paul Carter, asset director at Peel Retail & Leisure, said the results were a reminder of "how relevant and in demand" the outlet is. "There have been various headlines this month about how challenged retail was around Christmas, so to have Gloucester Quays performing so well is a real credit to our team and our brands," he said. "We have experienced consistent growth for several years, and that success can be put down to the quality of our offer and waterside environment. "There is no doubt our catchment is responding to how we have evolved Gloucester Quays, as an urban outlet that combines a compelling shopping environment with dining and leisure to fit all tastes and needs, benefitting from a heritage waterside setting that few regionally can match.” This news follows an announcement in December by Peel that it had agreed 20 leasing deals over the year including with a number of major high street brands. Among the 11 brands to renew at Gloucester Quays are French-Belgian kitchenware brand Le Creuset, which invested in a new fit out, and international lifestyle and athletic footwear retailer Skechers, which increased its footprint at the destination by 50%.

Commercial Property2025-05-22 14:41:03

Builders' merchant MKM Supplies expands with new branch at Central Park in Bridgend

Central Park in Bridgend has been boosted with another key letting. Independent builders' merchant MKM Supplies has opened a new 20,000 sq ft branch at the Robert Hitchins developed park under a 25-year leasing agreement. The 355,000 sq ft park provides a mixture of trade and industrial warehousing properties ranging from 2,500 sq ft to 40.000 sq ft. Other tenants include Evri, PCI, Plumbase, Edmundson Electrical, Markes International and Pensord Press. Development opportunities exist for a further range of commercial buildings from 10,000 sq ft to up to 145,000 sq ft. The new branch, which has created 18 jobs, is MKM Supplies’ 132nd in the UK. Its other outlets in Wales include those in Cardiff, Llandudno and Ruthin. A further branch in Bangor due to open later this month. Branch director Jonathan Thomas said: “We’re bringing something new to Bridgend - a one-stop shop for builders, tradespeople and the public.” John Jones, senior asset and development manager at Robert Hitchins, said: “Our commitment to delivering employment-generating development in Bridgend and South Wales continues and we are proud to be investing further with commercial premises which are best-in-class,” he said. Robert Hitchins has developed Central Park over several phases since it acquired the former Kimball Electronics plant in 2006. A scheme of 16 trade counter units amounting to 51,000 sq ft was developed in 2008, followed by a 13,500 sq ft trade counter scheme in 2012, a 40,000 sq ft facility for PCI Pharma Services in 2017, and an 82,000 sq ft industrial warehouse for parcel giant Evri last year. The new building from MKM, brings Robert Hitchins’ investment in Central Park to more than £25m. Mr Jones estimated that there are currently more than 500 jobs associated with Central Park. He added: “We are proud to be investing for the long term in Bridgend by self-funding the development of high-quality buildings which has become increasingly rare in the commercial property market due to rising build costs and other factors.” The builders of the MKM unit were EG Carter & Co.

Commercial Property2025-05-22 14:41:03

City of London approves major new skyscraper on doorstep of UK's busiest station

The City Corporation has greenlit a 54-storey skyscraper adjacent to the UK's busiest station, as the demand for office space in London continues to surge. The development at 99 Bishopsgate is poised to become one of the tallest structures in the Square Mile, with plans to offer at least 1.2 million square metres of office space by 2040, as reported by City AM. Designed to meet the "highest level" of sustainability standards, the skyscraper was proposed to cater to the "increasing demand for new office schemes of this kind" according to the City Corporation. There's a growing appetite for well-connected, eco-friendly, and top-tier buildings in the capital, driven by stricter environmental regulations on offices and companies' efforts to attract employees back to their desks. The project will feature a 'City Market' on the ground floor, providing retail, food, and beverage options. "The 99 Bishopsgate scheme will give the Square Mile one of the largest public realm upgrades from a single planning application in recent history, increasing the ‘walkability’ of the City, so that it becomes a safer and more pleasant place to travel through," stated Shravan Joshi, Chair of the City of London Corporation’s Planning and Transportation Committee. Joshi also remarked that the approval of the site "speaks to the confidence that global investors have in the local real estate market, as well as the UK economy, more widely." This approval signals an influx of new structures set to reshape the capital's skyline. Recently approved projects such as the 74-storey One Undershaft, the 63-storey 55 Bishopsgate, and the 36-storey 60 Gracechurch Street are all set to reshape the City's skyline. According to global property consultancy Knight Frank, prime rents in the City have surged by 16 per cent over the past year, with availability standing at a mere 0.5 per cent.