Cheshire East

CommercialPropertyReview2015

Contents

Foreword 4

6Executive Summary

8The Cheshire East Economy

24Investment

16Offices

22Visitor Economy

20Retail and Leisure

26Residential

30Strategic Developments

32Acknowledgements

10Industrial and Distribution

Foreword 5

I am especially delighted to introduce this annual review on the progress being made by the Cheshire East property market.

The year 2014 was one of resurgent growth for the Borough’s economy, with many of our major employers announcing significant new investments. This gave a strong indication of rising business confidence and those positive trends have accelerated during 2015.

Cheshire East Council is setting out an ambitious plan to support the creation of more than 31,000 new, predominantly private sector jobs by 2030. This will mean greater skills, fewer people claiming benefits and less dependence on public sector employment.

This review shows that the property market has well and truly woken up to the strength of our economy. More and more industrial, retail, office and leisure occupiers, on whom the market depends for its livelihood, are finding that Cheshire East is a great place to do business.

As a result, we now have more businesses per head than any other North West district, ranging from multinational corporations to entrepreneurial start-ups.

Advanced engineering and scientific research and development are all vital to our economic success. Jodrell Bank has been confirmed as the headquarters of the global Square Kilometre Array project for the next 50 years, making it the nerve centre of the world’s largest radio telescope.

Work is well under way to transform Alderley Park into a multi-occupier community of collaborative bioscience innovators and the BioHub is now home to 81 companies with 310 employees. Cheshire East Council is proud to be an investor in this project alongside Manchester Science Partnerships.

Production is the major contributor to our economic output and employment in manufacturing is well above the national average.

That’s why leading companies such as Bentley Motors, AstraZeneca, Autoliv, Siemens, Waters Corporation, BAE Systems and Oliver Valves are based here.

In its biggest ever investment in Crewe, Bentley is spending £40 million to create a new research and development centre, creating over 300 jobs. The company is gearing up to bring the world’s first ultra-luxury SUV to the market in 2016.

All good businesses need good people and Cheshire East is renowned for its highly educated, entrepreneurial workforce, with access to 4.8 million people of working age and more than 40 percent of residents qualified to degree level.

The Council is moving rapidly to acquire properties and sites to energise the regeneration of Macclesfield, Crewe and Middlewich town centres. We expect more exciting news on these projects before the end of this year.

The Council’s three-year capital plan includes over £450 million of expenditure: £240 million on highways; £60 million on economic growth and the visitor economy; £61 million on education support; and £95 million on health and wellbeing, environmental, estate management and IT.

Cheshire East Council is helping to foster entrepreneurialism. Fourteen of our small and medium-sized businesses – more than any other North West borough – were named in 1,000 Companies to Inspire Britain, a special report published by the London Stock Exchange.

The Council has decided that superfast broadband will be a standard feature in new developments, enabling more people to work remotely or run businesses from home.

We are investing in skills to create the workforce of the future: Crewe’s University Technical College is due to open in September 2016; we already have a strong take-up for adult apprenticeships; and we work closely with our schools and colleges to ensure that none of our school leavers become NEETs.

Cheshire East already has great connectivity to the road and rail network and Manchester International Airport. An HS2 hub station in Crewe would bring a £10 billion boost to the economy of South Cheshire and North Staffordshire.

HS2 will do more for Cheshire East than for Manchester or Birmingham because we are the gateway to the Northern Powerhouse. In 20 years time, we expect to have a major jobs boost in Crewe and the surrounding area.

As well as a powerful economy, we have plenty of other assets: lovely countryside, beautiful towns and villages; and many places of special historical and natural interest. It is no wonder that for the second year running, Cheshire East has been named as ‘Best Place to Live in the North West’ in the Halifax Quality of Life Survey.

Cheshire East Council has a relentless focus on improving the lives of our residents and businesses. Our strategy is bearing fruit and we welcome engagement with all those who can contribute to, and share in, the Borough’s success.

Councillor Michael Jones

Leader, Cheshire East Council

CHESHIRE WEST& CHESTER

WARRINGTON

TRAFFORD

MANCHESTER

STOCKPORT

DERBYSHIRE

STAFFORDSHIRE

CITY OF STOKE ON TRENT

SHROPSHIRE

HALTON A555

A556

A530

A525

A534

A51

A534

A49

A523

A523

A537A537

A536

A34

A34

A54

M6

M6

M56

KNUTSFORD

WILMSLOW

POYNTON

MACCLESFIELD

HOLMESCHAPEL

CONGLETON

SANDBACH

ALSAGER

NANTWICH

CREWE

AUDLEM

ALDERLEY EDGE

MIDDLEWICH

Executive Summary2014 saw increased activity across most sectors of the economy and property market in Cheshire East. Small businesses were buoyant and there were a number of significant strategic developments across the borough:

• The creation of the Cheshire and Warrington Prosperity Board with Warrington and Cheshire West and Chester Borough Council’s to deliver economic growth to the sub region, and support the activities of the Cheshire and Warrington Local Enterprise Partnership such as the Cheshire Science corridor, Crewe High Growth City and the Atlantic Gateway.

• Investment projects in infrastructure, to improve access and communication to businesses, such as the link road between the M6 and M56 to better connect the M6 corridor to Manchester International Airport and Manchester, and the M6 junction improvements at Junctions 16 and 17 to ease access to and from the motorway.

The strength of the business community was evident through a number of events and announcements:

• Waters Corporation opened their new headquarters outside Wilmslow. The company manufactures mass spectrometry instrumentation and invested over £2 million in the site.

• Bentley announced an investment of £40 million to expand its headquarters in Crewe, creating over 300 new jobs in the process.

Industrial transactions doubled from the previous year with floorspace showing a similar increase:

• Total take up of 76,602 sq. m, against 45,000 sq. m. in 2013 - an increase of 70 percent. With 61 deals, this is the highest level of activity recorded by this annual review.

• Deals below 1,000 sq. m. accounted for 49 of those, with an average size of 443 sq. m, re-enforcing the confidence in the SME sector.

• Crewe and Macclesfield accounted for the highest level of activity and Crewe recorded the largest amount of floor space let at 23,587 sq. m.

• Leasehold deals dominated, with just six sales during the year, and rents in the region of £35 per sq. m. were the norm.

• Speculative development by Black and White Developments’ at Orion Park in Crewe reached completion, providing 4,000 sq. m. in four high specification units, all of which were let and sold prior to completion.

The office sector continued to strengthen in 2014 with a steady improvement both in terms of floorspace occupied and the number of deals completed:

• 22,318 sq. m. of floorspace was let or sold, which was down by eight percent over the previous year, whilst transactions across Cheshire East increased by 10 percent to 45, and Crewe and Wilmslow stood out as real hot spots in the Borough.

• All but two transactions (87 percent of floors pace) were below 1,000 sq. m, reflecting the strength of SME’s in the Borough.

• The majority of space was taken on a leasehold basis. Only 11 of the 45 deals were sales. The highest rent achieved was £204.50 per sq. m. at 1 Kings Close, Wilmslow and rents are beginning to rise and a good number of rental deals now exceed £155 per sq. m.

The Council’s plans to provide improved shopping and leisure facilities in a number of the towns are seeing mixed progress:

• The Silk Street Town Centre scheme in Macclesfield is designed to bring big improvements to the town and proposes a mixed use development consisting of predominantly retail, leisure, residential and a multi-storey car park.

• Plans were submitted for phase one of the South Macclesfield Development Area, including 325 homes and a new supermarket on land between Congleton Road and London Road.

• Congleton has received £1 million of funding to develop new pedestrian areas in the town centre to make shopping a more enjoyable experience.

• In the pub and restaurant sector, work started on a new 698 sq. m. Greene King pub and McDonald’s restaurant on a 1.21 hectare plot of brownfield land off Dunwoody Way, Crewe; the Belle Époque restaurant and hotel group purchased The Freemason Arms and reopened it in July 2014 as The Folly; and brewery group Joules acquired the Lower Chequer in Sandbach.

• The hotel sector has also been active; Marston Hotels received approval to add almost 50 new bedrooms to the Q Hotels Crewe Hall; Chimney House Hotel in Sandbach changed hands from Washington Hotel to Talash Hotels at a guide price of £1.85 million; and hotel operator Accor entered into two franchise agreements to create Ibis Budget hotels locally, one at Knutsford and the other at Lymm Services on the M6.

There were also developments in house building, with a slight increase in completions from the previous year:

• 37 sites were under construction with a capacity for over 30 homes. When completed they will deliver a total of 3,943 units.

• In addition, 42 sites were granted planning permission for a minimum of 20 homes during 2014, and these sites will see the development of 5,395 houses over the next few years.

• Redrow acquired a 6.88 ha site in Tytherington from Ainscough Strategic Land in a £13 million deal.

• Planning permission was granted for a major mixed use development on a 58 ha open farmland site at Kingsley Fields, Nantwich. North West Nantwich Consortium plan to build up to 1,100 new homes (including up to 30 percent affordable housing), as well as providing up to 1.82 ha of business space, a primary school, community facilities, a local centre, allotments and recreational open space.

• Developer Countryside, in partnership with Your Housing Group and Cheshire East Council are building 143 homes on the former Bombardier factory site in Crewe.

• Kier Construction has also started building 34 new homes at the £3.5 million West View development in Underwood Lane, Crewe.

• Also in Crewe, Wulvern plans to redevelop Brooklands House into a three storey apartment block for over 55’s in a £1.9 million residential scheme.

Industrial take-up 76,600 sq. m.61 deals70% increase on the previous year

7

Office take-up 22,300 sq. m.45 deals30% above the 5 year average

663 new homes£35 million investments transacted

The Cheshire East Economy

With a diverse and rich economy, Cheshire East Council continues to take a leading role in a whole range of initiatives aimed at supporting and growing business within the Borough and is setting out an ambitious plan to support the creation of over 30,000 new jobs in the next 15 years. These include both major projects in Cheshire East and developments across the sub-region alongside some of the Council’s neighbouring authorities.

The creation of the Cheshire and Warrington Economic Prosperity Board with Warrington and Cheshire West and Chester Borough Council’s will see the three authorities combining resources and identifying joint activities that will deliver economic growth to the sub-region, and support the activities of the Cheshire and Warrington Local Enterprise Partnership (LEP).

The LEP has ambitious plans for the sub-region and aims to grow the local economy by around £15 billion by 2030. The Economic Prosperity Board will look beyond individual projects to create jobs and economic growth across Cheshire and Warrington. A number of key investment priorities have already been supported by the LEP, including; Cheshire Science Corridor, Crewe High Growth City and the Atlantic Gateway, with Cheshire East very much at the heart of two of these priorities.

The Cheshire Science Corridor intends to link centres of excellence together, which will include Jodrell Bank and Alderley Park, currently the home to AstraZeneca and the growing BioHub Life Sciences incubator. These facilities along with other Cheshire based science parks are at the heart of a science cluster generating substantial economic benefits and an estimated £2.2 million GVA for the pharmaceutical industry across the LEP area, whilst a growing cluster of very high quality instrumentation businesses are now estimated to generate £48 million. This sector whilst small, is key to serving the life science and engineering sectors across Cheshire East.

Alderley Park, which was purchased by Manchester Science Partnerships, a partnership of Bruntwood, Manchester University and local authorities, including Cheshire East, is being developed as a centre of excellence for the science sector. A new Development Framework has been prepared to drive the Park forward in the future. Since AstraZeneca announced a phased relocation to Cambridge, interest has grown in the park, and 81 different businesses now occupy space there, many in the BioHub, and companies spun out from AstraZeneca and the North West’s world leading Universities in Manchester and Liverpool are also expected to locate to the BioHub. AstraZeneca also has a manufacturing base in Macclesfield and aims to strengthen the facility with the development of the site as a centre of excellence for manufacturing packaging.

Jodrell Bank has been confirmed as the headquarters of the global Square Kilometre Array project for the next 50 years. The project brings together radio telescopes as far away as South Africa and Australia to combine their capacity and create a powerful gateway to the stars.

Cheshire East’s Local Plan was submitted to the Secretary of State in June after four years of public consultation. The Plan will define policies for economic growth, housing and the environment. Towards the end of the year, the Examination in Public of the plan commenced, but was formally suspended in December, and should resume in 2015. This then sets the agenda for the period up to 2030.

Four major infrastructure projects are underway that will improve access and communication to businesses in the Borough. Work has commenced on the M6 junction improvements at Junctions 16 and 17 to ease access to and from the motorway; the Crewe Green Link Road and Basford West Spine Roads, will provide access to unlock the Basford East and West development areas; the Council has established the preferred routes for the Poynton Relief Road and Congleton Link Road, and Highways England are currently building a new A556 link road between the M6 and M56 to better connect the M6 corridor to Manchester International Airport and Manchester.

Connecting Cheshire is a partnership between the four Cheshire local authorities and BT to roll-out superfast broadband to 99 percent of homes and businesses by 2017. The project is nearing the completion of the first phase of the roll-out and has already seen hundreds of kilometres of new fibre cable and roadside cabinets installed. A recently produced value and impact study predicts that over 15 years, superfast broadband covering Cheshire, Warrington and Halton could generate £1.3 billion for businesses, over 11,000 jobs and £380 million in household benefits.

The strength of the business community was evident through a number of events and announcements. Waters Corporation opened their new state of the art headquarters in Wilmslow. The company which manufactures mass spectrometry instrumentation equipment has invested over £2 million in the site, and employs more than 500 people.

Bentley announced a further investment of £40 million to expand its headquarters in Crewe, with a new world-class research and development centre, creating over 300 new jobs in the process. Bentley has also announced the creation of over 950 jobs in the past 18 months, during which time the business has produced record sales. In 2013, Bentley made 10,120 cars, more than ever before, and expects to surpass that figure when 2014 figures are announced. The company also committed to an £800 million investment over three years in product and facility development.

In the Sunday Times HSBC International Track 200 league table, three Cheshire East companies scored well. Tandom Metallurgical Group in Congleton is ranked number 1 in the UK for growth in international sales, growing 364 percent over 2 years. Two Macclesfield companies are in the same table with online entertainment trader Music Magpie at number 18, and Longfield Chemicals at 25.

The education sector saw new investment announced. Macclesfield College is developing a new conference facility on a 0.75 hectare site to expand its higher education offer, whilst Reaseheath College is one of only 11 locations in the country to secure Food Enterprise Zone (FEZ) status, a government scheme aimed at boosting the economy in the countryside. The zones will create simplified planning areas to enable development in the food sector, and will create an environment for growth. Reaseheath has included five sites in the proposal for the FEZ which could see a research facility being developed to aid crop efficiency using drone technology.

With a diverse and rich economy, Cheshire East continues to take a leading role

9

The number of industrial transactions has doubled from the previous year with floor space showing a similar increase.

The year saw a total take-up of 76,602 sq. m. compared with the 2013 level of 45,000 sq. m. This represented an increase of 70 percent. With 61 deals, the highest level of activity recorded by this annual review. With the exception of one letting, all the activity was for space of under 10,000 sq. m. The largest deal was the letting by warehousing property specialist Prologis to Optima Logistics of a 17,229 sq. m. building at Midpoint 18 in Middlewich. With the strong take up of high quality stock at the larger end of the market reported last year, those sizeable deals were limited to four transactions above 5,000 sq. m.

The smaller end of the market below 1,000 sq. m. accounted for 49 of the deals, an average size of 443 sq. m, re-enforcing the confidence in the SME sector. This was a change from last year when the mid range deals were the most active, and is possibly another symptom of the reducing supply of high quality space in the market which presents the opportunity for speculative development. Property professionals support this view and are calling out for new stock to be brought to the market.

Across the Borough a number of towns saw a decent level of activity.

Crewe and Macclesfield accounted for the highest level of activity. Crewe recorded the largest amount of floor space let, helped by the three lettings over 5,000 sq. m. TJX which operates the TK Maxx high street brand took just under 6,000 sq. m. at Radway Green Business Centre, and the remaining two deals were vending drinks company Brupac, and the Swansway Group which runs car dealerships and is also headquartered in Crewe.

The Macclesfield deals were on a smaller scale with all but one under 1,000 sq. m. The largest deal was to Time to Care UK, taking 1,372 sq. m. whilst restaurant chain Bungalows and Bears have taken 929 sq. m. at Newbridge House.

A number of industrial schemes saw strong activity. There were nine lettings by Orbit Developments at their Stanley Green Business Park near Handforth, and in Knutsford, four lettings were achieved at Parkgate Industrial Estate. In Nantwich Screwfix took two units at Barony Industrial Estate, whilst another screws and fixings wholesaler Timco added 2,000 sq. m. to its existing building in Nantwich.

Leasehold deals dominated, with just seven sales during the year. A unit at Barony Industrial Estate achieved a price of just under £1,000 per sq. m. Rents of around £80 per sq. m. were reached on two lettings, but those were the exception with rents in the £35 per sq. m. mark the norm.

Speculative development returned to the Borough, as Black and White Developments’ Orion Park in Crewe reached completion. The development provides 4,000 sq. m. in four high specification units, and all were let or sold prior to completion.

GEOGRAPHIC SPLITTown Number of deals Total Area (sq. m)

Congleton 3 4,158Crewe 15 23,587

Handforth 9 4,214Knutsford 4 997

Macclesfield 19 8,348Middlewich 2 17,635Nantwich 2 781Poynton 1 413

Sandbach 4 12,587Wilmslow 2 3,882

TOTAL 61 76,602

TRANSACTIONS BY SIZESize Range (Sq. m.) Number of deals Percentage

200 - 500 31 52500 - 1,000 18 29

1,000 - 2,000 4 62,000 - 5,000 4 65,000 - 10,000 3 5

10,000+ 1 2

TOTAL 61 100

Industrial and Distribution

Leasehold deals dominated, with just seven sales during the year.

11

INDUSTRIAL DEALS > 200 SQ. M.

NUMBER OF DEALS

2010 (46) 2011 (54) 2012 (32)

2013

(35)

20

14 (6

1)2010 (68,000) 2011 (104,477) 2012 (43,350

) 20

13 (4

5,00

0)

201

4 (76

,602)

INDUSTRIAL DEALS > 200 SQ. M.

TAKE UP (SQ. M.)

2014 Industrial DealsPROPERTY NAME/ADDRESS VENDOR/LANDLORD TENANT/

PURCHASERSIZE

(SQ. M.)RENT/PRICE

(SQ. M.)

LEASE TERM

(YEARS)AGENTS

HANDFORTHUnit K1 Stanley Green Business Park,

Oak GreenOrbit Developments

Limited Fresh Ltd 873 Undisclosed Undisclosed Knight Frank / Davies Harrison

Unit 4C, Stanley Green Trading Estate, Earl Road Private Vendor Private Investor 743 £73.95 5 Hallams

Unit E6 Stanley Green Business Park, Oak Green

Orbit Developments Limited Private Investor 558 Undisclosed Undisclosed Knight Frank

Unit E1 Stanley Green Business Park, Oak Green

Orbit Developments Limited Costain Group plc 550 £67.28 5 Knight Frank/ Davies

HarrisonUnit D6, Stanley Green Business

Park, Oak GreenOrbit Developments

Limited Private Investor 309 £67.28 5 Davies Harrison

Unit D10, Stanley Green Business Park, Oak Green

Orbit Developments Limited EWE Ltd 309 £67.28 3 Knight Frank

Unit D8, Stanley Green Business Park, Oak Green

Orbit Developments Limited

Bromborough Paints 306 Undisclosed 3 Knight Frank

Unit D9, Stanley Green Business Park Orbit Developments Limited UIS Ltd 301 £67.28 5 Knight Frank /

Davies HarrisonUnit 2D, Stanley Green Trading

Estate, Earl Road Private Vendor Private Investor 265 £90.63 5 Hallams

CONGLETON

Eaton Bank, Riverdane RoadAdministrators of

Cranworth Engineering Limited

Churchill Paints Limited 2,662 £168.99 Freehold Sanderson

Weatherall

71 Manchester Road Burns Garage Famous Brands Furnishings 857 £54.57 8 Lamont Commercial

3&4 Radnor Park Private Vendor Banyan Manufacturing 637 £46.72 2 Hallams

CREWEBuilding 9, 12a, Radway Green

Business CentreAshtenne Industrial

Fund TJX UK 5,946 £13.99 3 Lamont Commercial

Weston Road Rowlinson Group Ltd Swansway Garages 5,249 £32.83 16 Lamont Commercial

7D, Marshfield Bank Employment Park

Andrews Property Investments Brupac 4,476 £31.22 13

Lamont Commercial / Wild Commercial

PropertyUnit 7 Marshfield Bank Employment

Park Private Vendor Private Investor 1,589 Undisclosed Undisclosed Cushman and Wakefield

Former Dairy, Groby Road Private Vendor Private Investor 1,280 £273.30 Freehold Matthews & Goodman

Units 11-12 Wistaston Road Business Park Private Vendor Private Investor 755 £16.58 Undisclosed Butters John Bee

Wistaston Road Business Centre, Wistaston Road Private Vendor Private Investor 658 Undisclosed Undisclosed Butters John Bee

Orion Park Black & White Crewe Ltd

Halo Accident & Repair 649 £61.89 10 Lamont Commercial

Unit P, Herald Park, Herald Drive J. Beeson J. Lester 649 £454.46 Freehold Lamont Commercial

Unit 3, Orion Park Black & White Crewe Ltd

Lafert Electrical Motors Limited 536 £55.97 12 Lamont Commercial

Unit R1, Herald Park, Herald Drive Private Vendor

Centre for Advanced Transport

Engineering and Research - Europe

481 Undisclosed 3 Carter Towler

Unit 45 Crewe Gates Industrial Estate, Quakers Coppice Private Vendor Private Investor 467 £53.50 Undisclosed Butters John Bee

PROPERTY NAME/ADDRESS VENDOR/LANDLORD TENANT/PURCHASER

SIZE (SQ. M.)

RENT/PRICE (SQ. M.)

LEASE TERM

(YEARS)AGENTS

CREWE

Unit 1, Gateway Pinlee Manufacturing Ltd

Smallwood Manufacturing Ltd 381 £57.70 5 Lamont Commercial

Workshop, Rainbow Street Private Vendor Global Adventure Sport Ltd 260 £30.79 Undisclosed Buckinghams

Unit 1, 523 West Street Private Vendor Private Investor 212 £33.05 Undisclosed Butters John BeeKNUTSFORD

Unit 4, Wolfe Close, Parkgate Industrial Estate Private Vendor Knutsford Electrical

Supplies 292 £63.29 3 Fisher German

Unit 1-6 Parkgate Industrial Estate Private Vendor Private Investor 251 Undisclosed Undisclosed Impey & CoUnit 3, Wolfe Close, Parkgate Industrial

Estate Private Vendor Barrington Sports 228 £45.64 5 Fisher German

Unit 2, Parkgate Industrial Estate, Haig Road Private Vendor Private Investor 225 £76.53 6 Impey & Co

MACCLESFIELD

Goodall Street Private Landlord Time to Care (UK) C.I.C 1,372 Undisclosed Undisclosed Greenham

Commercial

Newbridge House, Henderson Street Private Landlord Bungalows and Bears 929 Undisclosed Undisclosed Jones Associates

Clarence Mill, Clarence Road Adelphi Mill Properties Limited Adelphi Alterations 725 £91.49 Undisclosed Adelphi Mill

Properties

The Old Stables, Brook Street Private Vendor Lovair 649 £44.67 Undisclosed Greenham Commercial

Green Street Mill, Green Street Private Landlord Private Investor 625 £40.04 Undisclosed Janhill EstatesUnit 1-2 Rainbow Mill Private Landlord Jonathan Howcroft 560 Undisclosed Undisclosed Harvey Scott Estate

Warehouse, Hurdsfield Industrial Estate Private Vendor Private Investor 383 £70.93 Undisclosed Greenham

CommercialWorkshop, 110 Hulley Road SISIS Young Shin Europe 360 £55.43 5 CBRE

34 Windmill Street Dacord Limited Private Investor 330 Undisclosed Undisclosed Greenham Commercial

Derwent House, Hulley Road Private Vendor GEC / Edmundson Electrical 327 £80.73 5 Hallams

Albion Mill, London Road Private Vendor Private Investor 320 £282.56 Freehold Meller BragginsUnit 3 & Unit 2, Turnock Farm, Salters

Lane Private Vendor Private Investor 318 Undisclosed 5 Fisher German

Unit 7 Heather Close, Lyme Green Business Park Private Vendor Private Investor 227 £821.72 Freehold Hallams

Unit 1, Fence Avenue Industrial Estate Private Vendor Private Investor 219 Undisclosed Undisclosed Greenham Commercial

Adlington Industrial Estate, London Road South Private Vendor Private Investor 205 £53.82 5 Hallams

Unit 2, Pool Street Industrial Estate Private Landlord Private Investor 201 Undisclosed Undisclosed Greenham Commercial

Unit 6 Heather Close, Lyme Green Business Park Private Vendor Hartwood Kitchens 200 £55.97 2 Hallams

Adelphi Mill, Grimshaw Lane Adelphi Mill Properties Limited

Art Graphics UK Ltd 200 Undisclosed Undisclosed Adelphi Mill

Properties

Unit 1-2 Rainbow Mill Private Vendor Bollington Joinery Ltd 200 £42.63 Undisclosed Harvey Scott Estate

This schedule only relates to properties in excess of 200 sq. m. 13

2014 Industrial DealsPROPERTY NAME/ADDRESS VENDOR/LANDLORD TENANT/

PURCHASERSIZE

(SQ. M.)RENT/PRICE

(SQ. M.)

LEASE TERM

(YEARS)AGENTS

MIDDLEWICH

MW180, Midpoint 18, Pochin Way Prologis Optima Logistics 17,229 £51.13 10 CBRE / Lamont Commercial

Unit 9 Valley Court, Sanderson Way, Off Pochin Way PBS Properties Limited Bespoke Auto

Technology Ltd 407 £58.99 10 Legat Owen

NANTWICHUnit 1, Barony Industrial Estate,

Beam Heath Way PBS Properties Limited Screwfix 476 £64.58 10 Legat Owen

Unit 2, Tricketts Lane, Willaston Private Vendor Private Investor 305 £36.06 Undisclosed Rory MackPOYNTON

Unit B, Poynton Industrial Estate, Third Avenue Private Vendor McCann 413 £51.13 Undisclosed Roger Hannah & Co

SANBACHLodge Road Private Vendor Private Investor 7,369 Undisclosed Undisclosed Buckinghams

Unit 2 Lodge Road Mr W Douglas Euro Accessories Ltd 3,809 £217.86 Freehold WHR

Unit 11, Millbuck Way Euro Accessories Private Investor 851 Undisclosed 5 Lamont CommercialSandy Lane Ipstone Developments Peter Baroow 557 £341.00 Freehold Lamont Commercial

WILMSLOW

Unit 1, Brooke Park, Epsom Avenue, Handforth

Nottinghamshire County Council Pension

FundCompetition Line 2,507 £54.25 10 DTZ/Jones Lang

Lasalle

Unit 2b, Brooke Park, Handforth Thermo Fisher Pendragon 1,375 £62.00 4 BE Group/WHR

15

UP TO 93 SQ. M.

32 enquiries totalling

649 sq. m.

94 - 232 SQ. M.

9 enquiries totalling

1,449 sq. m.

233 - 465 SQ. M.

7 enquiries totalling

2,322 sq. m.

ENQUIRIES FOR INDUSTRIAL SPACE IN CHESHIRE EAST,

JAN – DEC 201499 IN TOTAL

1,003,648 SQ. M.

466 - 930 SQ. M.

15 enquiries totalling

13,562 sq. m.

931 - 1,860 SQ. M.

2 enquiries totalling

3,716 sq. m.

1,861 - 4,650 SQ. M.

5 enquiries totalling

19,509 sq. m.

4,651 - 9,300 SQ. M.

19 enquiries totalling

172,792 sq. m.

9,301 - 18,600 SQ. M.

1 enquiry totalling

18,580 sq. m.

OVER 18,600 SQ. M.

9 enquiries totalling

771,069 sq. m.

This schedule only relates to properties in excess of 200 sq. m.

The office sector continued to strengthen in 2014 with a steady improvement from previous years both in terms of floor space occupied and the number of deals completed.

The level of floor space let or sold was 22,318 sq. m. which was down eight percent from the previous year, whilst transactions increased by 10 percent with 45 deals across Cheshire East. There was activity across the whole of the Borough, but Crewe and Wilmslow stood out as real hotspots, with the two towns accounting for over half of deals in the Borough.

Knutsford attracted five new or expanding occupiers, with companies continuing to be attracted to Booths Park and The Pavilions.

However, the largest deals were to be found away from those centres. Middlewich attracted the largest deal with the letting of Universal House to Bentley, which took 2,109 sq. m. in a three storey modern office building on the Midpoint 18 business park. In Macclesfield, Orbit let a 1,296 sq. m. unit to Momentum Instore for its headquarters, at a reported rent of just £43 per sq. m. The company specialises in developing retail marketing for large retailers and brand suppliers.

Crewe attracted 12 businesses to new premises during the year with floor space totalling 5,735 sq. m. With an average size of 477 sq. m. there were five deals over 600 sq. m. These included WEX Europe which specialises in card services and joint tenants such as Barclays and Virgin Trains at Pochin’s Emperor Court. Other companies include Europac which provides state of the art scanning and 3D services, one of a number of advanced engineering companies clustering in the Crewe area, and mobile phone insurance provider Assurant Group, which recently acquired the Lifestyle Services Group. The company is locating its European HQ in Crewe leading to a major expansion of its workforce.

Orbit Developments was successful in letting a number of offices across the Borough, and in Wilmslow let 985 sq. m. to care home operator Four Seasons Healthcare. The company moved within the town from Emerson Court to Norcliffe House.

The smaller end of the market, accounted for the largest number of deals reflecting the strength of SME’s in the Borough. All but two transactions were below 1,000 sq. m. representing 87 percent of floor space let or sold.

The majority of space was taken on a leasehold basis with just 11 of the 45 deals being sales and the freehold market remains mixed. Businesses are still looking for value for money and five of those deals recorded were at £750 per sq. m. or less, whilst the best price achieved was £3,358 per sq. m. for an office on Stevens Street in Alderley Edge. Rents are beginning to rise and a good number of rental deals now exceed £155 per sq. m. The highest rent achieved was £204.50 per sq. m. at 1 Kings Close, Wilmslow.

Bruntwood is also extending Booths Park and planning consent was granted for three new office buildings totalling 17,700 sq. m. to be built on the existing car park, as the current space reaches capacity. Last year saw further lettings at the Park to Medline and Glory Global Solutions totalling 1,200 sq. m.

Specialist provider BioHub based at Alderley Park, is continuing to attract companies linked to the life science sector and specialist service providers. Manchester law firm Appleyard Lees has joined a number of specialist service providers located there who will provide support to the growing science base at Alderley Park.

In addition to the space recorded as let in this report, which is limited to 200 sq. m. or above, the demand for space from micro companies of up to nine employees remains strong with a number of business centres reporting successes across the Borough.

GEOGRAPHIC SPLITTown Number of deals Total Area (sq. m.)

Alderley Edge 2 764Crewe 12 5,735

Holmes Chapel 1 381Knutsford 5 2,078

Macclesfield 5 3,054Middlewich 4 3,071Nantwich 1 474Poynton 1 268

Sandbach 2 515Wilmslow 12 5,978

TOTAL 45 22,318

SIZE RANGESize Range (sq. m.) Number of deals Percentage

200 - 300 15 33301 - 465 12 27466 - 930 14 31

931 - 1,860 3 71,861 - 4,645 1 2

4,646 + 0 0

TOTAL 45 100

Offices 17

OFFICE DEALS > 200 SQ. M.

NUMBER OF DEALS

OFFICE DEALS > 200 SQ. M.

TAKE UP (SQ. M)

2010 (41) 2011 (24) 2012 (28) 2013 (

43)

201

4 (45)

2010 (16,006) 2011 (11,187) 2012 (13,000) 2013 (24,26

4)

2

014

(22,318)

2014 Office DealsPROPERTY NAME/ADDRESS VENDOR/LANDLORD TENANT/

PURCHASERSIZE

(SQ. M.)RENT/PRICE

(SQ. M.)LEASE TERM

(YEARS) AGENTS

ALDERLEY EDGE

11 London Road PPMCR Ltd (in liquidation) Private Investor 465 £1,776.06 Freehold

Hallams / Matthews & Goodman

7 Stevens Street Private Vendor Private Purchaser 298 £3,358.37 Freehold Williams Commercial

CREWEWellington House, Delamere Street Private Vendor Job Centre 846 £86.11 Undisclosed Legat Owen

Infinity House, Mallard Way Private Vendor Lifestyle Services Group Limited 743 £137.24 Undisclosed Colliers

InternationalImperial Chambers, Prince Albert

Street Private Vendor Private Investor 725 Undisclosed Undisclosed Rory Mack Associates

Second Floor, Emperor Court, Crewe Business Park Pochin's Plc WEX Europe

Services Limited 689 £129.17 Undisclosed

Lamont Commercial/

Matthews and Goodman

Royal Oak Building, Marshfield Bank Private Vendor Kindertons Accident Management 494 £65.66 Undisclosed Lamont

CommercialTechnology House, Crewe Business

Park Private Vendor Europac Limited 424 £94.19 Undisclosed Lamont Commercial

Group House, Crewe Business Park Dunefield Properties Limited

Chemocal Business Association 423 £1,173.28 Freehold

Lamont Commercial/

Edwards and CoMallard Court, Crewe Business Park Private Vendor Private Investor 376 £42.52 Undisclosed Legat OwenHawksdrum House, Marshfield Bank

Employment ParkBegbies Traynor

Group Private Purchaser 263 £740.67 Freehold Louis Taylor Ltd

Emperor Court, Crewe Business Park, Electra Way Pochin Property Reclaim Limited 259 £142.62 Undisclosed

Lamont Commercial/ Matthews & Goodman

Ground Floor, Unit 2 Westmere Court, Crewe Business Park Crest Sign Limited Cheshire Training

Association Limited 251 £123.79 Undisclosed Lamont Commercial

Breeden House, High Street Private Vendor Private Investor 241 Undisclosed Undisclosed Legat OwenHOLMES CHAPEL

Cotton Court Hornbuckle Mitchel Group Tyres on the Drive 381 £139.93 6 Lambert Smith

HamptonKNUTSFORD

Booths Park, Chelford Road Bruntwood Limited Medline 681 £177.61 5CBRE/Edwards & Co / Jones Lang

Lasalle

5 Booths Park, Chelford Road Bruntwood Limited Glory Global Solutions Ltd 524 £177.61 Undisclosed Edwards & Co

Booths Park, Chelford Road Bruntwood Limited Towry 358 £172.22 10CBRE / Edwards

& Co /Jones Lang Lasalle

George House, Mallory Yard, Goostrey Way Private Vendor Portman Travel

Group 315 £126.05 5 Regional Property Solutions

Booths Park, Chelford Road Bruntwood Limited James Fisher 202 £177.61 10CBRE/Edwards

& Co/Jones Lang Lasalle

PROPERTY NAME/ADDRESS VENDOR/LANDLORD TENANT/PURCHASER

SIZE (SQ. M )

RENT/PRICE (SQ. M.)

LEASE TERM

(YEARS)AGENTS

MACCLESFIELD

Beechwood Court Private Vendor Momentum Instore Limited 1,296 Undisclosed Undisclosed

Greenham Commercial/Orbit

Developments

Pinewood Court, Springwood Way Orbit Developments Limited Private Investor 592 Undisclosed Undisclosed Orbit Developments

The Bath Masters House, Davenport Street Spicerhaart Group Ltd NFU Mutual 485 £752.73 Freehold Hallams

Churchill Chambers, Churchill Way Private Landlord SAS Daniels 364 £118.40 14 Hallams

Peak House, South Park Road Private Vendor Private Investor 318 £739.59 Freehold Greenham Commercial

MIDDLEWICHUniversal House AJPROP Limited Bentley 2,109 £43.06 Undisclosed Lamont Commercial

Unit 7 Verity Court Pochin's Plc Imetec UK Limited 409 £1,184.04 Freehold Lamont Commercial

Lex House, 10 Leadsmithy Street Private Vendor Dr JT Hammersley & Partners 331 £694.06 Freehold Buckinghams

Unit 3, Midpoint 18, Verity Court, Pochin Way Private Vendor Private Investor 222 £1,348.08 Freehold Matthews &

GoodmanNANTWICH

George House, Beam Heath Way Private Vendor Private Investor 474 Undisclosed Undisclosed Legat Owen

POYNTON147 London Road South Private Vendor Pentith Ltd 268 £1,547.86 Freehold Hallams

SANDBACHEdwin Foden Business Centre, Moss

LaneHurstwood Group

LimitedSafeGuard World

International 279 Undisclosed 5 Hurstwood Holdings/Lamont Commercial

10 Congleton Road Private Vendor Sandbach Music Centre 237 £84.50 Undisclosed Greenham

CommercialWILMSLOW

Norcliffe House, Station Road Orbit Developments Limited

Four Seasons Healthcare Limited 985 £182.99 Undisclosed Orbit Developments

1 Kings Close Petros Travellers Tales 966 £204.52 10 Jones Lang Lasalle/ LSH /CBRE

Stanley Court, Stanley Green Business Park

Orbit Developments Limited Pets at Homes Ltd 892 Undisclosed Undisclosed Orbit Developments

Freedom House, Church Street Dorchester Property Investments Foundry 42 543 £153.39 5 Williams Commercial

/ Canning O'Neill

1st Floor, Emerson Court Orbit Developments Limited Private Investor 530 £166.84 Undisclosed Orbit Developments

The White House, 180-186 Wilmslow Road, Handforth Best Western Hotels Private Investor 528 £710.42 Freehold Matthews &

Goodman

St Anns House Private Vendor Bott & Co Solicitors Ltd 407 Undisclosed Undisclosed Canning O'Neill

1st and 2nd floors, 69 Water Lane Private Vendor Effective Finance Ltd 284 £34.34 3 Buckley Commercial

Freedom House, Church Street Dorchester Property Investments Genesis 245 £153.39 5 Canning O'Neill/

Williams Commercial

48 Alderley Road Orbit Developments Limited Handelsbanken 200 Undisclosed Undisclosed Orbit Developments

Cypress House, Grove Avenue Quorum Oakbase 200 £161.46 5 Canning O'Neill/ Williams Commercial

Units 1-34, The Paddock, Handforth Orbit Developments Limited Private Investor 200 Undisclosed Undisclosed Orbit Developments

19This schedule only relates to properties in excess of 200 sq. m.

Retail and LeisureCheshire East Council has committed to a major investment programme to improve the vitality of its town centres.

Improving the vitality of Macclesfield Town Centre is central to the regeneration of the town. The Council owns key sites within the town centre and is in a unique position to take the lead and drive forward the delivery of major change in Macclesfield.

The Council has been working with a development partner Wilson Bowden, for many years to secure the delivery of a significant town centre development.

In March 2014 Cheshire East Council’s Cabinet resolved to promote a Compulsory Purchase Order to facilitate land assembly for the scheme. The recent withdrawal of Debenhams as an anchor tenant has presented challenges and the Council is currently proactively considering alternatives, to ensure a regenerative town centre proposal is still delivered.

There is a strong desire for a leisure development to improve the twilight economy and increase footfall for the benefit of town centre businesses and the Council is currently looking to accelerate this element of the wider scheme.

To the north of the proposed Silk Street scheme, Eskmuir the owners of the Grosvenor Centre, a shopping mall of retail units, have received planning approval to upgrade the Centre by the demolition of a number of units to facilitate four new shops and office accommodation.

Also in Macclesfield, variety discount retailer, B&M took over the premises of the former TJ Hughes store on Exchange Street. The 140 sq. m. store is the second B&M store in the town, after the retailer’s Silkworks site on Pickford Street opened in early 2008.

Plans for phase one of the South Macclesfield Development Area were submitted in May and include building 325 homes and a new supermarket on land between Congleton Road and London Road. The supermarket will meet the food shopping needs of the southern part of the town and the receipts from the sale will contribute to the proposed link road from London Road to Congleton Road.

In Middlewich, plans for a £50 million development straddling the Cheshire East and Cheshire West boundary have been approved. The Cheshire FRESH scheme will include a new livestock auction centre, along with shops and a garden centre. It is estimated that the complex could bring as many as 800 new jobs to the area.

Congleton has received a £1 million boost to the town centre which will fund new pedestrian areas to make shopping a more enjoyable experience.

There was some smaller scale activity across the Borough. In Congleton, units in West Heath Retail Park were let. In spite of concerns raised by over-development on the site, BP have been given permission to redevelop their fuel station on Alderley Road in Wilmslow, to incorporate a 225 sq. m. M&S Simply Food store. This represents a significant increase in the size of the shop previously on the site.

In Crewe the SEAT dealership, formerly known as LC Charles, has opened a new 3,200 sq. m. showroom just off Weston Road and four premises have also been let along Queensway and on Market Street.

The importance of the food and drink sector to the local economy is highlighted by the large number of food and drink festivals that took place throughout the year.

UP TO 46.5 SQ. M.

22 enquiries totalling

1,023 sq. m.

47 - 70 SQ. M.

1 enquiry totalling 69 sq. m.

ENQUIRIES FOR RETAIL SPACE

IN CHESHIRE EAST, JAN – DEC 2014

33 IN TOTAL4,285 SQ. M.

OVER 930 SQ. M.

1 enquiry totalling

931 sq. m.

71 - 93 SQ. M.

1 enquiry totalling 92 sq. m.

94 - 140 SQ. M.

3 enquiries totalling

314 sq. m.

141 - 232 SQ. M.

2 enquiries totalling

371 sq. m.

233 - 465 SQ. M.

2 enquiries totalling

556 sq. m.

466 - 930 SQ. M.

1 enquiry totalling

929 sq. m.

21

To add to this Cheshire East Council announced a major public realm investment programme for Congleton. The £1 million project, funded by Cheshire East Council will dramatically improve the centre of the town, re-establishing Congleton as an attractive location to live, work, shop and visit. The project is intended to improve the pedestrianised areas of the High Street, Bridge Street, Duke Street and Little Street and create a community square. This will enable occasional markets festivals and other street activities to take place.

The Council is also progressing with its plans for a Lifestyle Centre off Forge Street in Crewe town centre. The Lifestyle concept is the integration of all the services in one place, that citizens need in relation to their lifestyle and will comprise an eight lane 25 metre pool, smaller 17 metre pool, a gym, new public library, fitness suites and studios, new sports hall and day care facilities, including offices, meeting rooms, treatment rooms, training facilities and an outdoor play area.

Visitor Economy

Our best hotels provide excellent accommodation and we need more of them. Cheshire East’s occupancy rate is rising faster than Manchester, York and other parts of Cheshire. It reflects the quality of Cheshire East as a good place to do business.

23

Cheshire East includes some of the UK’s most beautiful scenery, attractions, market towns, events, festivals and sites of historical significance. From sprawling plains and panoramic cliff top views to historic market towns and hidden gems, there is something for everyone in the Borough.

With almost 14 million visitors coming to Cheshire East it is no surprise to see hotel occupancy rising to 74 percent in 2014, up by 4.3 percent on 2013, while the average daily room rate rose to £56.50 compared with £53 the year before.

Well known events and festivals, the weddings market and business tourism have been particularly important in helping the Borough’s hotel operators fill their rooms and the improving market has encouraged hotel owners to invest in additional bedrooms and facilities.

An example of this is the Best Western Pinewood on Wilmslow Hotel which has invested £1.4 million in a refurbishment programme during 2014, adding 12 en-suite bedrooms, a new 85 seat restaurant, kitchens, and rooms for conferences and banqueting. Additionally Cranage Hall in Holmes Chapel has invested £150,000 on improving facilities, Cottons Hotel and Spa in Knutsford invested £4 million, including a 30 bedroom extension; the Best Western Manor House Hotel invested £1 million on improved facilities and Combermere Abbey spent £200,000 on cottage upgrades and outdoor wedding spaces. Mottram Hall had a major £6 million transformation turning it into the ultimate country retreat. Cheshire East’s planning committee also approved an application by Marston Hotels to add almost 50 new bedrooms to the 17th century 117 bedroom Q Hotels Crewe Hall. The £3 million proposed extension at the Grade I listed hotel will add two new bedroom wings to the hotel.

In Sandbach, the 50 bedroom, three star Tudor style Chimney House Hotel changed hands from Washington Hotels to Talash Hotels at a guide price of £1.85 million. Furthermore, hotel operator Accor has entered into two franchise agreements to create Ibis Budget hotels locally. Ibis Budget Knutsford is to be operated by Signature Management Services as a result of the agreement between Accor and Think Options Ltd, and the other hotel will be at Lymm Services on the M6.

There have been a number of developments in the pub and restaurant sector in Cheshire East during 2014. In Crewe, development started for a new 698 sq. m. Greene King pub and McDonald’s restaurant on a 1.21 ha plot of brownfield land off Dunwoody Way, sold by engineering firm Bombardier. Russell Homes secured the deal with both operators and is currently marketing the adjacent 1.01 ha plot for food, retail or leisure use.

Following the purchase of the Rose and Crown Chophouse and hotel in 2013, The Belle Époque restaurant and hotel purchased its third Knutsford venture, The Freemason Arms. This reopened its doors in July 2014 as The Folly, and in Sandbach the Lower Chequer, which dates back to 1570, reopened its doors following the acquisition and refurbishment by brewery group Joules as its first venue dedicated to Craft Beer.

The importance of the food and drink sector to the local economy is highlighted by the large number of food and drink festivals that took place throughout the year. This included the Congleton Food Festival, the Foodies Festival at Tatton Park, the Nantwich Food Festival and Cheshire Food Festival at Arley Hall, the North West Food Lovers Festival at Tatton Park and the Christmas Food Festival at Arley Hall. These festivals are complimented by a wide range of food and farmers markets that are held throughout the year, with the ever popular Treacle Market welcoming visitors from far afield to Macclesfield each month. There has also been an explosion of artisan markets taking place across the borough adding to the culinary delights of Cheshire East.

Other renowned festivals bringing thousands of visitors to Cheshire East include: the Nantwich Jazz Blues and Music Festival, the Cheshire Show, the Nantwich Cheese Show, The RHS Tatton Flower Show and the 80’s Rewind Festival at Capesthorne Hall.

In 2014 Tatton Park in Knutsford was awarded the gold award in the Large Visitor Attraction of the Year Category at the prestigious, VisitEngland Awards, which celebrates the best of English tourism. Cheshire East attractions also scooped top prizes at Marketing Cheshire’s 2014 Annual Awards with Peckforton Castle Hotel, near Bunbury named as large hotel of the year. In the same category, the Best Western Manor House Hotel in Alsager was highly commended and Kerridge End Holiday Cottages in Rainow, near Macclesfield, on the fringes of the Peak District National Park, were named as self-catering holiday provider.

2014 has proved to be another fantastic year for Film and TV production in Cheshire East producing a £2 million bonus for the local economy. In 2014, crews have done more than 130 days’ work in the Borough and have spent an estimated £1.99 million. This compares with 65 days’ filming in 2013, which generated estimated spending of £1.04 million. During 2014 ITV cameras were in Bunbury to film Home Fires, a six-part second world war drama starring Francesca Annis and Samantha Bond; The Real Housewives of Cheshire, an ITV reality show about the lives of glamorous women living around Alderley Edge and Wilmslow has just been awarded a second series and viewers in the UK and US saw historic Arley Hall, near Knutsford, playing a major role in Evermoor, a mystery adventure for the Disney Channel about an American teenager who leaves the States behind for a new life in England.

Investment

£35.45 million of investment sales have been recorded in Cheshire East with four retail, three office and two leisure deals. However, it should be noted that a sale price was only available for five of the nine deals (with the others remaining confidential).

Investment in the Industrial sector was limited and this reflects similar trends in the occupier market. However, nationally offices were seen as a more attractive investment opportunity in 2014.

Two investment sales completed at Crewe Business Park (achieving yields of 14.9 percent and 10.7 percent respectively).

Furthermore Alderley Park in Alderley Edge was sold by AstraZeneca to Manchester Science Partnerships (MSP) in March 2014, in a deal estimated to be worth more than £30 million. This was without doubt the most notable investment sale in the Borough in 2014.

With over 139,400 sq. m. of world-class scientific, laboratory, office and conferencing space, Alderley Park has formed a reputation as the leading life science facility in the North of England and the largest R&D campus of its kind in the UK. Building on AstraZeneca’s legacy, Manchester Science Partnership’s (MSP) aims to bring in a new phase of the park’s evolution by creating a new, collaborative community of bioscience innovators who will sit alongside business at every stage of growth from a single co-working desk up to entire office buildings. This will be complemented by new residential, leisure and retail opportunities that will see the park opened up to everyone for the first time in its history.

Using Bruntwood’s extensive development experience, one of the first major redevelopments is the transformation of a four storey building on the eastern edge of Mereside. It will create up to 27,880 sq. m. of highly flexible space that could cater for offices or science/manufacturing facilities. With the aim of bringing people together at its focus, the building will feature a communal atrium and internal courtyard with new meeting/conferencing facilities, and retail and café amenities. Taking advantage of the extensive views over the Alderley Park woodlands and farm, two brand new entrance façades extending the full height of the building will create a light, open environment and impressive sense of arrival.

Reflecting the strong concentration of world class science assets and activity in Cheshire East, the Council has set out a clear action plan to develop and grow the Technology and Science corridor in the Borough. A Science Corridor Opportunity Study has been developed which will play an integral part in future proofing the growth of key science corridor assets by setting out a clear, evidence-based action plan, which in turn will support economic growth and attract both talent and business spinout growth in the area. The action plan presents targeted interventions for the pharmaceutical and life sciences, ICT, Instrumentation and Astrophysics sub-sectors by developing projects relating to skills development, property provision, business engagement and inward investment, the development of R&D capabilities, and supply chain growth. This fully aligns with ongoing activity to develop the Science Corridor including the Greater Manchester and Cheshire Life Science Fund, Greater Manchester and Cheshire Life Science Strategy, and the Alderley Park Development Framework.

The 2014-2020 European Structural and Investment Funds Growth Programme represents a significant opportunity for Cheshire and Warrington to invest in growth and jobs in the area and make a real difference to the local economy. Funding opportunities include £66.4 million from the European Regional Development Fund (ERDF) and £54.8 million from the European Social Fund (ESF), as well as £2.5 million from the European Agricultural Fund for Rural Development (EAFRD). The Governments Growing Places Fund has allocated £12 million to Cheshire and Warrington Local Enterprise Partnership to support key infrastructure projects and the North West Evergreen Fund provides debt funding for commercial property and regeneration projects in the North West of England. Further funding for rural areas will also be available under the “LEADER” programme.

£35.45 million of investment sales have been recorded in Cheshire East in 2014

Across the UK investment activity has continued to improve with overseas investors, property funds and private investors increasingly seeking better value in the regions. In the North West one commentator reported a 41 percent uplift in activity.

Type Location/ Property Vendor Purchaser Size

(sq. m.) Price (£m) Tenants Income (£/pa)

Net Initial yield (%) Agents

Office Alderley Park,

Mill Lane, Alderley Edge

AstraZenecaManchester

Science Partnerships

278,707 & 162 ha c.30.0 Various Undisclosed Confidential

Jones Lang Lasalle/Strutt

& Parker

Office2 Millennium Gate, Crewe

Business Park

LPA Receivers

Praxis Real Estate 3,023 2.7 Various c.420,000 14.9 Knight Frank/

FinnProperty

Office

Unit C, Southmere

Court, Crewe Business Park

Private Vendor

Private Investor 650 0.7 EMAC c.78,000 10.67 WHR/Lamont

Commercial

RetailWilmslow Post Office, Waters

Lane

Private Vendor

Private Investor 831 Confidential Post Office Confidential Confidential Williams

Commercial

Retail18-20 Bridge

Street, Congleton

Private Vendor

Private Purchaser 207 0.4 Various 39,300 8.6 Acuitus

Retail 10 Alderley Road, Wilmslow Threadneedle Private

Investor 130 Undisclosed Co-op & Star PFS 33,500 Undisclosed Allsop

Retail Warehouse Crewe Development

SecuritiesKames Capital Confidential Portfolio

Sale Confidential Confidential Confidential Other

LeisureLittle Chef,

Chester Road, Knutsford

Private Vendor

Private Investor 2,670 Undisclosed Wycliffe

Moore 32,378 Undisclosed Allsop

Leisure Crewe Business Park Halo Ltd JNR

Management 831 1.65 Kids Unlimited 139,845 8 Christopher

Dee

25

A housing requirement of 27,500 new dwellings is proposed in the Cheshire East Local Plan, including 500 homes to be accommodated under the Duty to Co-operate with High Peak Council during the period 2020-2030. However, the examination of the Cheshire East Local Plan was formally suspended in December 2014 in response to receiving the interim views of the Inspector. As a consequence of these interim views the Council will need to review the 27,500 figure.

As of 31st August 2014, Cheshire East reported that it has a total deliverable housing land supply for 11,051 dwellings. With a 5 percent buffer (allowing for choice and competition) this equates to 6.36 years supply of deliverable housing land and with a 20 percent buffer (to allow for shortfalls in previous years) this equates to a 5.57 years supply of deliverable housing land.

For the 2013/14 year (in line with housing monitoring data) 663 full market price dwellings were completed. This shows there has been a slight increase in completions from the previous year, but it remains a long way off pre-recession completion rates. 199 affordable homes were also completed during the year.

Residential

Data compiled at 31st December highlighted that 37 sites each with a capacity for over 30 homes were under construction. When the 37 sites are fully completed they will deliver a total of 3,943 units. In particular there has been a lot of developer activity in Congleton (five sites totalling 484 units), Sandbach (four sites totalling 759 units), Middlewich (four sites totalling 503 units), Crewe (six sites totalling 574 units) and Macclesfield (four sites totalling 270 units).

Furthermore, housing consent data shows that 42 sites were granted planning permission for a minimum of 20 homes during the course of 2014, and these sites will see the development of 5,395 houses over the next few years. These include six sites at Shavington, which together will bring 1,176 new homes to the market. The demand from developers for residential development sites in Sandbach is evidenced with 1,049 homes at five sites being granted permission. In addition, permission for 446 homes was granted at four sites in Alsager, and Congleton will see the development of 354 homes distributed between six sites.

For the 2013/14 year 663 full market price dwellings were completed.

In what was reported as one of the most profitable and high profile strategic land deals ever completed in the North West, Redrow acquired a 6.88 ha site in up-market Tytherington from Ainscough Strategic Land (ASL) in a £13 million deal. This followed ASL’s acquisition from Allied Irish Bank in May 2012 for £4.5 million. A masterplan for 162 new houses has been completed for the site, and planning permission and a Section 106 agreement is already in place. During the year Redrow reported its pre-tax profit had doubled in the first half of its financial year, boosted by the government’s Help to Buy scheme.

The Council has granted planning permission for a major mixed use development on a 58 ha open farmland site at Kingsley Fields, Nantwich. The proposal by North West Nantwich Consortium includes plans for up to 1,100 new homes (including up to 30 percent affordable housing), as well as up to 1.82 ha of business space, a primary school, community facilities, a local centre, allotments and recreational open space.

There has been a focus on the delivery of affordable housing in Crewe. Developer Countryside, in partnership with Your Housing Group and Cheshire East Council, are building 143 homes on the 2.63 ha former Bombardier factory site in Crewe. The £14 million development included £1.5 million funding from the Homes and Communities Agency and comprises 119 two and three bedroom houses and 24 one bedroom apartments, available for affordable rent and shared equity.

Kier Construction has also started on site at the £3.5 million West View development in Underwood Lane, Crewe. This comprises 34 new homes on the site of a former nursing home and sheltered housing scheme, on behalf of Your Housing Group and Wulvern Housing. The homes will all be for affordable rent, and funding for the development included a grant from the Homes and Communities Agency.

Furthermore a £1.9 million residential scheme in Crewe has also been given the go ahead. Wulvern Housing, which is headquartered in the town, plans to redevelop Brooklands House into a three storey apartment block for over 55’s. The scheme is set to include 12 one bedroom and four two bedroom apartments. Wulvern has been awarded grant funding of £352,000 through the Homes and Communities Agency’s Affordable Homes Programme towards the cost of the development.

27

ResidentialMAJOR HOUSING SCHEMES 2014 (CURRENTLY UNDER CONSTRUCTION) Future dwelling completion greater than 30 units expected in the next five years

Site Address Settlement Housebuilder Capacity

Land off Queens Drive Nantwich Gladman Developments 270

Former Fodens Factory, Moss Lane Sandbach David Wilson Homes North West 269

Land south of Hind Heath Road Sandbach Richborough Estates 269

Former Fisons Site, London Road Holmes Chapel Bellway Homes 224

Loachbrook Farm, Sandbach Road Congleton Bovis Homes 200

Land off Warmingham Lane Middlewich Morris Homes 194

Land to the north and south of Maw Green Road, Coppenhall Crewe Richborough Estates 165

Land off Warmingham Lane Middlewich Bellway Homes 149

Stapeley Water Gardens Nantwich David Wilson Homes North West 146

Bombardier Transportation, West Street Crewe Countryside Properties 143

Bath Vale Works, Bath Vale, Brookhouse Lane Congleton Bovis Homes 126

Haulage Depot, Gunco Lane Macclesfield Jones Homes 124

Fibrestar site, Redhouse Lane Disley Persimmon Homes 121

Fodens Test Track, Moss Lane Sandbach Persimmon Homes 120

Canal Fields/ Rookery Bridge, Hall Lane, Moston Sandbach Bellway Homes 101

Wychwood Park, Abbey Park Way, Weston Bovis Homes 100

The Waterhouse Employment Site, Wellington Road Bollington Bellway Homes 91

Land off Jersey Way Middlewich Stewart Milne Homes 83

Land off Dunwoody Way Crewe Haigh & Haigh Homes 82

Land on Rope Lane Shavington Wain Homes 80

Land off The Green Middlewich Muller Property Group/Persimmon Homes 77

Macclesfield District Hospital, Victoria Road Macclesfield Keyworker Homes 72

Ingersley Vale Works, Ingersley Vale Bollington Brian Elwell & Co 66

Land south of Crewe Road Alsager Miller Homes 65

Bossons Mill/Brooks Mill, Stonehouse Green Congleton Falconer Chester Ltd 60

Land at COG Training and Conference Centre, Crewe Road Nantwich Stewart Milne Homes 59

Caravan Site, Park Lane and Flowery Nook, Mere Lane Pickmere Westbury Homes 58

Land south of Portland Drive Scholar Green Ben Bailey Homes 56

Kestrel Engineering, Brook Street Congleton Morris Homes 54

South Cheshire College of Further Education, Dane Bank Avenue Crewe Redrow Homes 50

Land rear of 33 to 45 Mill Green Congleton McCarthy & Stone 44

Land off Vicarage Road Haslington Elan Homes Ltd/Muller Strategic Ltd 44

Land on Sheppenhall Lane Aston Newlyn Homes Ltd 43

Priors Hill Children’s Home, 26 Kennedy Avenue Macclesfield Joanne Fallon (Affordable Homes Consultancy) 38

Park Green Mill, Park Green Macclesfield PH Property Holdings Ltd 36

Underwood Court and West View, Underwood Lane Crewe Your Housing Group 34

Land on Hassall Road Alsager Seddon Homes Ltd 30

HOUSING CONSENTS 2014 Schemes with capacity for a minimum of 20 units granted permission during 2014

Location Total sites Total units

Shavington 6 1,176

Sandbach 5 1,049

Alsager 4 446

Leighton 1 400

Congleton 6 354

Middlewich 2 343

Nantwich 3 329

Macclesfield 5 287

Haslington 1 250

Wilmslow 1 204

Willaston 2 186

Crewe 2 141

Bollington 1 91

Holmes Chapel 1 80

Hough 1 39

Wybunbury 1 20

TOTAL 42 5,395

29

300

600

900

1200

1500

1,287

1,498

1,295

182123

243

319334

233

118184 199

1,365

741

632

464

535

654 663

2005

COMPLETIONS

AFFORDABLE

2006 2007 2008 2009 2010 2011 2012 2013 2014

Please note: The affordable housing delivery figures are net new build completions only (this does not include other forms of affordable housing delivery).

Strategic Developments

• The future of Alderley Park – The Council has prepared a Development Framework which sets out the long term vision for the site as a world class science park. A planning application for the site is expected to be submitted by the new owner, Manchester Science Partnerships, during summer 2015.

• Following the successful award of £20 million Local Growth Funding and £5 million contributions from the Council and Manchester Science Partnerships, the Council is working with partners at the Greater Manchester Combined Authority, the Cheshire and Warrington Enterprise Partnership, and Manchester Science Partnerships to establish the £42 million Greater Manchester and Cheshire Life Science Investment Fund. Due for launch in early summer 2015, the fund will provide investment funding for life science SME’s across Greater Manchester and Cheshire.

Cheshire East’s commitment to delivering growth through new employment opportunities, jobs and homes is evidenced through the investment and initiatives where the Council has a leading role.

• The BioHub Life Science incubator at Alderley Park – The facility has created an environment for life science businesses to thrive within a cluster of likeminded businesses. Currently 81 companies employing 310 on-site staff are located there. This includes an increasing number of former AstraZeneca staff going through a ‘Business Bootcamp’ to develop ideas for start-ups.

• Crewe HS2 Hub Station – Independent government reports in October 2014 proposed that Crewe should be a North West hub for HS2 with the proposed station up and running by 2027. A fully integrated station would provide 360 degree connectivity to North Wales, Liverpool and Merseyside, routes to Scotland, Greater Manchester and beyond into the Northern Powerhouse and south to Stoke, Staffordshire and on to the East Midlands and Birmingham and finally into Shropshire and Mid Wales becoming a even greater node of the national rail network linked to all London and UK’s major Airports.

• Cheshire East Council is proposing to build a multi-purpose depot on the site of the disused ideal Standard factory in Middlewich. The site was purchased for a reduced price of £2.41 million and it is estimated that the redevelopment plans would involve the transfer of up to 400 jobs in Middlewich. The environmental hub would allow the Council to speed up implementation of its strategy to cut landfill to a minimum and increase recycling, which will bring multiple environmental and economic benefits and further boost the local economy.

• The roll out of fibre broadband through the ‘Connecting Cheshire’ project - Current fibre broadband coverage across Cheshire East is 94 percent (April 2015), this is set to rise to 96 percent by the end of 2015 and to around 99 percent by the end of 2017. These improvements are as a result of the intervention of the Connecting Cheshire Partnership which has invested public, European and private funds into additional fibre connectivity in areas hitherto outside the commercial roll-out. By the end of 2017 this partnership will have secured additional coverage to over 90,000 homes and businesses across Cheshire, primarily in rural areas.

• The delivery of sustainable renewable energy in the Borough – The Council has undertaken a detailed review of the potential for renewable energy in Cheshire East in order to develop an Energy Framework which acts as the evidence base to underpin activity in this sector. As a result of the Energy Framework a number of initiatives are progressing to deliver a more sustainable environment for Cheshire East. These include providing residents with FairerPower through a new arrangement with Ovo Energy Group to provide cheaper tariffs; a review of Council assets to determine the suitability for renewable energy such as biomass and solar photo voltaic technology; continued exploration of deep geothermal potential in Crewe in collaboration with Keele University and an early feasibility of an anaerobic digestion project within the Borough.

• The expansion of Bentley Motors in Crewe – Bentley announced the latest phase in the biggest site development in the company’s history. A further £40 million investment will expand its headquarters in Crewe, with a new research and development centre, creating over 300 jobs in the process.

• The new centre, measuring over 45,000 sq. m., will include a dedicated styling studio, research and development offices and a technical workshop. The facilities will house 1,300 Bentley engineers and is the latest step in preparing Bentley’s infrastructure to bring the world’s first ultra luxury SUV to roads in 2016.

• The new University Technical College at Crewe – A new 800 place University Technical College (UTC) is being developed in the centre of Crewe and will open in September 2016. This £10 million project will redevelop an existing site off West Street in Crewe. The UTC is sponsored by a number of key local employers such as Bentley, OSL Rail and Jacobs as well as Manchester Metropolitan University.

• Road Infrastructure schemes:

– Work has commenced on the M6 junction improvements at Junctions 16 and 17 to ease access to and from the motorway. These are due to complete in mid-2015.

– Work is also well advanced on the Crewe Green Link Road and Basford West Spine Road, which are due to open to traffic in Autumn 2015, and will provide access to unlock the Basford East and West development areas.

– The Council has established the preferred routes for the Poynton Relief Road and Congleton Link Road; and is securing around £62 million of Government funding.

– Highways England are currently building a new A556 link between the M6 and M56 to better connect the M6 corridor to Manchester International Airport and Manchester, and they have also committed to adding extra capacity to the M6 from Junction 16 to 19 through Cheshire East.

• Engine of the North is Cheshire East Council’s property development company and was set up to accelerate the growth of housing and jobs through the Council’s own land and property asset base. The Company has had a number of early wins. It managed the freehold sale of a strategic employment site at Parkgate in Knutsford to support the growth of Oliver Valves. It has also agreed deals for the former Remenham offices in Wilmslow, land at Earl Road in Handforth and the former Redsands facility in Nantwich. It is progressing planning applications for a residential scheme at Leighton Green in Crewe and a mixed use site at South Macclesfield Development Area. These successes serve to demonstrate the vision and insight of Cheshire East Council in setting up Engine of the North - promoting challenging development sites to accelerate homes and jobs growth.

31

A555

A556

A530

A525

A534

A51

A534

A49

A523

A523

A537A537

A536

A34

A34

A54

M6

M6

M56

KNUTSFORD

WILMSLOW

ALDERLEY EDGE

POYNTON

MACCLESFIELD

HOLMESCHAPEL

CONGLETON

SANDBACH

ALSAGER

NANTWICH

CREWE

AUDLEM

MIDDLEWICH

1

2

3

45 Alderley Park/BioHub1

CEC Waste Management Site (proposed)2Bentley Motors3Crewe Station (current)4University Technical College5

AcknowledgementsAdelphi Mill Properties

BE Group

Buckinghams

Buckley Commercial

Butters John Bee

Canning O’Neill

Carter Towler

CB Richard Ellis

Colliers International

BE Group is a property agency, regeneration and planning consultancy and has over 30 years experience of working in the Cheshire commercial property market.

For further information on the Inward Investment and Business Engagement Service, please contact:

John Willis, Inward Investment and Business Engagement Service Manager

Tel: 0300 123 5001 Email: business@cheshireeast.gov.uk

Webpage: www.cheshireeast.gov.uk/business

Cushman & Wakefield

Davies Harrison

Edwards & Co

Fisher German

Greenham Commercial

Hallams

Harvey Scott Estate

Hurstwood Holdings

Impey & Co

Janhill Estates

Jones Lang LaSalle

Jones Associates

Knight Frank

Lambert Smith Hampton

Lamont Commercial

Legat Owen

Louis Taylor

Matthews & Goodman

Meller Braggins

Orbit Developments

Regional Property Solutions

Roger Hannah & Co

Rory Mack

Sanderson Weatherall

WHR Property

Wild Commercial Property

Williams Commercial

BE Group, First Floor, 501 Birchwood One Business Park, Dewhurst Road, Birchwood, Warrington WA3 7GB

Tel: 01925 822112 Webpage: www.begroup.uk.com Email: vincesandwell@begroup.uk.com

www.cheshireeast.gov.uk

Designed by:

www.blaze-marketing.co.uk0161 387 7252

This report has been carefully prepared. However it is for general guidance only and Cheshire East Council, and BE Group cannot guarantee that there are no errors or omissions. The information, forecast and opinions set out herein should not be relied upon to replace professional advice on specific matters. No part of this report should be published, reproduced or referred to without the prior permission of BE Group.