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Property group snaps up Northumberland industrial estate in £5m deal

2025-04-19 00:49:12 By

South Nelson Industrial Estate in Cramlington

Property group Northern Trust Company Ltd has snapped up a Northumberland industrial estate in a multimillion-pound deal.

Northern Trust Company, an investment group focusing on property investment, development and strategic land promotion, currently has a portfolio of around 9m sqft of industrial space, trade counters and office parks, as well as more than 5,000 acres of land throughout the UK, supporting over 25,000 jobs.

Now the business has bought the South Nelson Industrial Estate in Cramlington, which has 46,683 sqft of workspace across 33 units, set next to Northern Trust’s existing Nelson Park Industrial Estate.

The £5m acquisition takes Northern Trust’s total ownership in Cramlington to around 300,000 sqft in 100 industrial units occupied by a range of local and regional tenants, while also further strengthening its presence in the North East industrial market.

The South Nelson Industrial Estate is home to a mix of well-established businesses, including Mosa Welding Products, Rod & Tackle fishing shop, Merc Solutions, A1 Forklift Truck Training and Northumbrian Bearings & Transmissions.

Tom Parkinson, director at Northern Trust, said: “We are pleased to have completed the acquisition of South Nelson Industrial Estate, which is a valuable addition to our portfolio. This strategic acquisition not only strengthens our presence in Cramlington but also enhances our ability to meet the growing demand for quality industrial space in the area.

“The location’s close proximity to Nelson Park Industrial Estate provides an excellent opportunity for us to further support local businesses with a wider range of flexible business space solutions.”

Barry Nelson, regional property director in the North East, added: “South Nelson Industrial Estate is a well-established industrial estate with excellent connectivity, making it an ideal addition to our portfolio. With the diversity in unit sizes, we can cater to a wide range of businesses looking for flexible space to meet their operational needs. We look forward to managing and developing relationships with the existing occupiers on the estate.”

Chris Donabie, partner at Naylors Gavin Black, acted for Northern Trust on the acquisition.

He said: “We identified that the industrial asset had potential to compliment Northern Trust’s nearby Nelson Park Industrial Estate and managed to secure it in an off-market deal.”

The trust’s portfolio in the North East has 75 different schemes, including the Airport Industrial Estate in Newcastle, Amble Industrial Estate, Bede Trade Park in Jarrow, the office scheme Silverlink Business Park and Telford Court office space in Morpeth.

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Commercial Property2025-04-19 00:49:12

32-storey Sky Gardens residential tower to dominate Leeds after £54.4m loan deal

A Grade II-listed former mill in Leeds is set to be transformed into a vibrant residential destination with a 32-storey housing tower following a £54.4m loan deal. Real estate finance provider Maslow Capital has provided the multimillion-pound development loan to back a joint venture between CityLife and Torsion Group, which is set to develop the landmark Sky Gardens scheme in the city. A brownfield site which is just under one acre in size will be turned into Sky Gardens, a huge build-to-sell scheme with 306 homes set across the 32-storey skyscraper – which is set to become one of Leeds’ tallest buildings – and a three-storey refurbished former mill. Once finished, apartments will range from studios to three-bedroom homes to cater for different residents, and the project will also include a number of “premium” on-site facilities including a gym, a cinema room, a luxury residents reception lounge, and the ‘Sky Garden’ – a stunning rooftop area with 360 degree views across the city from the top floor. The development will also include two commercial units. The development team says it is working to preserve and sensitively restore the Grade II-listed mill and integrate it into the wider design, as part of a block housing 22 residential units. The developers say Sky Gardens, set on Water Lane in Leeds’ South Bank regeneration area, embodies Leeds’ ambitious spirit. Gareth Morgan, managing director at CityLife, said: “Leeds has always been a city of ambition and reinvention, and Sky Gardens embodies this spirit. This project allows us to preserve an extraordinary piece of our industrial history while offering modern, sustainable living that meets the needs of today’s residents.” Matt Pigram, senior director, origination at Maslow Capital, said: “CityLife and Torsion Group bring extensive expertise to this project, and we are confident their combined vision will drive the scheme’s success. This £54.4m facility deepens our partnership with both developers, bringing our total support to a combined 896 homes across three major Leeds projects—an effort that underscores our commitment to addressing the region’s ever-growing need for high-quality housing.” David Worsley, COO at Torsion Group, said: “We are delighted to continue our longstanding relationship with Maslow Capital with this being our third transaction following the successful completion The Phoenix and Flax place. Torsion Group is proud to be part of this joint venture, bringing together a highly experienced delivery team including investment, construction and development management expertise. “In partnership with CityLife, we are fully committed to providing Leeds with a best-in-class development which is designed and constructed with placemaking and ESG at the heart of the concept.”

Commercial Property2025-04-19 00:49:12

Bristol office market has highest rents outside London

Office space in Bristol is now more expensive than any other big city outside of London, a new report has revealed. Surging demand among businesses and a lack of supply drove up rents last year, the Bristol Office Agents Society found. Headline rents in the city increased through 2024 to £48 per sq ft - the highest of the big six cities analysed. A lack of "good quality" space also drove up prices on refurbished buildings which in many instances achieved rents of £40 per sq ft. Though take up of space was below the five and 10 year averages for the year, there was an increase on the level for 2023 and with strong demand towards the end of the year market sentiment going into 2025 is positive, the report said. Bristol’s city centre market saw 41 deals completed in the second half of last year with a H2 take up of 187,527 sq ft. Total annual take up in the city centre for 2024 was 440,562 sq ft. Among the biggest deals was BLOCK’s acquisition of 21,235 sq ft at the newly refurbished building The Fairfax. There were also agreements at UBS’s newly refurbished 3 Rivergate, with Aecom’s taking 15,124 sq ft on the sixth and part of the fifth floors, and DNV taking 11,261 sq ft on the fourth. Other Grade A lettings this quarter include CBREIM’s letting at Halo of 9,504 sq ft to Softcat; Mazar’s move to 7,821 sq ft at AXA / Bell Hammers Assembly C; and CBRE acquiring 7,309 sq ft of space for themselves at CEG’s EQ. Several new build schemes also completed in Bristol last year, including CEG’s EQ, Trammell Crow and Tristan Capitals’ Welcome Building, and AXA / Bell Hammer’s Assembly Buildings B & C, all of which secured pre-lets. Beyond these there are no other new developments under construction. The only major works ongoing are comprehensive refurbishment schemes including APAM’s One Friary, CEG’s Crescent and Abrdn’s Queens Quay. Andy Smith, office agency partner at Knight Frank, said: “An election year always has a negative impact on levels of take up as businesses often put moves on hold due to the uncertainty surrounding a new government and 2024 was no different. "However, even in this challenging market there were a number of significant deals, and occupiers continued flight to quality saw rents rise." He added: "As we start 2025 there has been a marked uptick in new enquiries both in and out of town which reflects an underlying improvement in occupier sentiment and a slightly less uncertain political and economic outlook for the year.” Meanwhile, the Bristol out-of-town market saw 13 deals cross the line through the second half of the year to give a H2 take up of 54,773 sq ft. The largest of these was the long leasehold of 13,075sq ft at 23 Clothier Road to Outcomes First Group. The figure was below the five and 10 year averages but the outlook for 2025 is "more positive", the Bristol Office Agents Society said. Chair of the South West OAS, and Lambert Smith Hampton’s office agency director Roxine Foster, added: “2024 proved to be a year of mixed fortunes, however the outlook for 2025 is positive and with pressure on supply becoming more and more evident it will be interesting to see which the next schemes are to start on site."

Commercial Property2025-04-19 00:49:12

£8m revamp completes at Birmingham hotel

An £8 million refurbishment project has been completed on a landmark Birmingham hotel. The work at the Crowne Plaza hotel, in Holliday Street, has seen all 312 bedrooms updated including its club rooms and two suites while accessibility options have been upgraded with two fully accessible wet rooms. Work in the rooms includes upgrades to its tech such as more sockets and digital cable ports and enhanced desk space. During the renovation work, more than 1,500 pillows and hundreds of duvets, mattress toppers and protectors have been donated to those in need. 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. This latest project represents the final phase of renovations at the well-known hotel, following the transformation of its ground floor lobby and bar areas in 2022. General manager Siobhan Thomasson said: "After listening to our guests and their feedback, we've created rooms that are not only stylish and comfortable but also highly functional. "Our thanks go to hotel refurbishment specialists County Contractors for their work as guest feedback for the new rooms has been fantastic. "Our investment in this refurbishment mirrors Birmingham's own growth and ambition and is a fitting representation of the city's progress, reflecting the innovative and welcoming spirit of the place we call home. "At the same time, sustainability is a core part of who we are and we're committed to making a positive impact. These efforts not only reduce waste but also support some of the city's most vulnerable residents. "We're proud to provide guests with a space that blends style, functionality and sustainability, offering an experience that truly reflects the vibrancy and diversity of Birmingham."

Commercial Property2025-04-19 00:49:12

New £68.7m funding deal agreed for Birmingham student flats

A huge student accommodation project due for completion in Birmingham next year has been boosted by a new funding deal. LaSalle Investment Management has agreed a £68.7 million loan deal with developer and operator Vita Group for its project in Gough Street near the city's landmark Mailbox scheme. The building will house 540 beds and be run by the Cheshire-based group once completed. It will cover 105,000 sq ft across two blocks of ten and 29 storeys and contain private dining rooms, a hub for socialising and study, a gym, outdoor basketball court and terraces. Construction work started in 2023 and it is due to be ready to welcome students ahead of the 2026/27 academic year. It will add to the firm's other student project in the city at the former home of BBC Pebble Mill studios in Edgbaston. Vita Group is also behind the regeneration of the old Axis Square site, in Holliday Street, where it plans to build 'Goods Station', a residential-led, mixed-use scheme across four acres of derelict land. Chief operating officer Max Bielby said: "We're delighted to be working with trusted partner LaSalle to deliver this best-in-class student accommodation to the heart of Birmingham. "The delivery of this building is well under way and will raise the standards of what students should and can expect from their accommodation experience in the city centre. "We look forward to welcoming students from September 2026." David White, head of LaSalle real estate debt strategies, added: "This latest development loan completed by our debt investments platform maintains our strong pace of deployment, positioning our business as one of the most active real estate debt providers in Europe.

Commercial Property2025-04-19 00:49:12

Persimmon sees sales rebound and points to higher profit expectations

Housebuilder Persimmon has pointed to the beginnings of recovery in the housing market after seeing a growth in sales last year. The York-based firm, along with all of the UK’s largest housebuilders, has seen a period of decline in recent years as rising interest rates and wider problems in the UK put the brake on sales. But now it has announced a 7% increase in housing completions last year, selling more than 10,000 homes and seeing a small increase in its average selling price. Persimmon will announce its final results for 2024 in March but in a trading update it said that new home completions had risen to 10,664 last year and its average selling price had increased 5% to £268,500. It also said the increase was being driven by consistently higher demand for private homes, with its private sales position 31% better off than the previous year. But it said that discounting had been in place for much of the year to drive sales. Persimmon is now expecting full-year underlying profit before tax to be around the upper end of market expectations of between £349m to £390m. Group chief executive Dean Finch said: “We performed well through 2024 delivering 7% growth in completions, ahead of market expectations. We expect to report an underlying operating margin in line with the prior year, as previously guided, with 2024 underlying profit before tax expected to be around the upper end of market expectations. Customer enquiries and sales rates have been consistently ahead of the prior year since the spring selling season. “Persimmon has worked hard and is well positioned for the future, supported by the land and planning investment we have made in recent years, our vertical integration capabilities and our excellent teams. This investment, coupled with the Government’s ambitious planning reforms which demand more of the high-quality, affordable homes which are Persimmon’s core strength, supports our growth ambitions in the medium-term.” Persimmon ended the previous year with net cash of around £260m, lower than the previous period. It had spent £60m on remediating potentially dangerous buildings during the year, bringing its spending on post-Grenfell issues to £120m. It said remediation works were either under way or completed on more than 70% of its known developments. Persimmon said it was “well positioned” for 2025 and welcomed Government announcements on changes to planning guidance to encourage more housebuilding. But it said it was “mindful of evolving macroeconomic and geopolitical uncertainties, including the timing of future interest rate changes, and the effect that they may have on our market and consumer confidence in the short-term.”

Commercial Property2025-04-19 00:49:12

Sale of luxury London hotel boosts profits of family-owned empire

Apex Hotels, the family-run hospitality empire, has reported a substantial increase in pre-tax profits to £28.4 million for the year ending 30 April 2024, following the lucrative sale of its Apex London Wall Hotel in July 2023, which netted an £18.9 million gain. The group also saw revenues climb from £74.8 million to £79.4 million during this period, attributed to higher room occupancy and rates, as reported by City AM. The proceeds from the hotel sale, along with funds from a refinancing agreement with Barclays Bank, are fuelling Apex Hotels' expansion across the UK. In its latest financial year, the company added Pine Trees Hotel in Pitlochry and Meldrum House Country Hotel and Golf Course in Aberdeenshire to its portfolio. This year, it has continued to grow, acquiring The Vineyard Hotel in West Berkshire and the DoubleTree by Hilton Dunblane Hydro in central Scotland. Angela Vickers, Chief Executive of Apex Hotels, expressed optimism about the future, stating: "Following strong trading last year, we have set out a path for continued growth of the portfolio through strategic acquisitions and refurbishment of existing properties." "The acquisition of Pine Trees, Meldrum House, The Vineyard and the DoubleTree by Hilton Dunblane Hydro marks a new chapter in the group’s history as we venture into rural resorts and hotels. Offering greater choice will help maintain customer loyalty and enhance the guest experience." "Maintaining a healthy profit margin has allowed us to continue to sustainably re-invest in our hotels, our people and our continued commitment to our ESG strategies." "I am delighted to see the impact of investment in plant and infrastructure delivering reductions in scope one and scope two carbon footprint during the year, despite the three per cent increase in total rooms sold." "We look forward to another strong year in 2025 as we continue to grow our market position and establish ourselves as one of the top independent hotel groups in the UK."

Commercial Property2025-04-19 00:49:12

Strong tenant interest in £12m low carbon Carmarthenshire office and industrial scheme

A new sustainable £12m office and industrial development in Carmarthenshire is already half let with strong tenant interest in remaining space. The Parc Gelli Werdd development at Cross Hands provides 26 office and workshop units, which collectively extend to 32,500 sq ft. The project was finance with £4.5m from the Welsh Government, £1.25m from Carmarthenshire County, as well as backing from the Active Building Centre and the European Regional Development Fund. Thirteen units are already occupied, with a further three under offer. The scheme is being managed and marketed by the council with quoting rents for offices at £11 per sq ft, hybrid units £8.50 sq ft and light industrial space £7. The low carbon development, part of the Welsh Government’s property delivery plan, comprises high performance insulation and roof mounted solar panels that will deliver reduced building running costs and benefit the environment. Designed to achieve net zero carbon in-operation target, it also includes an building management system that incorporates a bespoke metering and monitoring platform to enable billing and detailed performance monitoring. This will allow tenants to manage electricity consumption to achieve cost efficiencies. Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:“We are determined to stimulate green economic growth, creating sustainable employment opportunities and supporting Wales’ transition to a low-carbon economy. “I’ve spoken to so many businesses both here in Carmarthenshire and elsewhere who have been clear that creating localised, well connected, high-quality business spaces with sustainability at their core, is a priority for expansion and job creation. “The Parc Gelli Werdd development has been built to exceptional environmental standards and will reduce operational costs for occupying businesses whilst minimising environmental impact, in accordance with the net zero strategic plan.” Among the first companies to occupy units at the site is Conquer Teamwear. Company owner Chris Jones said: “Moving into units 3 & 4 at Parc Gelli Werdd has been a great boost for our business and will help with the continued growth of Conquer Teamwear. The units are of a really high specification and the location is perfect for our staff and customers, being just a few minutes off the dual carriageway and Cross Hands roundabout.” Leader of Carmarthenshire County Council, Darren Price, said: "The Parc Gelli Werdd development is an important example of how the local authority and Welsh Government can collaborate to deliver high quality business space with sustainability at its core. "The council is committed to tackling the climate emergency, working towards our net zero carbon goal, and business space like this prove that this ambition is possible. “It is encouraging to see a number of Carmarthenshire businesses already utilising this space, allowing them to grow their business create local jobs and pursue their own sustainability goals moving forward.”

Commercial Property2025-04-19 00:49:12

Take up of office space in Cardiff in 2024 the best for seven years

Take-up of office space in Cardiff had its best year in 2024 for seven years with the letting of the 1 John Street building to Lloyds the standout deal. With the headline rent for the city increasing to £28 per sq ft, the year saw letting deals totalling 581 643 sq ft, according to research by property consultancy Knight Frank. In the highest level of take-up since 2017, the rate was more than double that in 2023. The final quarter of the year contributed 247,137 sq ft, the highest quarterly return since Q3 2017. The final quarter saw Lloyds agreeing a 10-year lease for the entire speculatively built 113,000 sq ft 1 John Street building from developer JR Smart in the city centre. The bank's new hub for 3,000 staff will be completed later this year, with Lloyds taking occupancy of the grade A building in the second quarter of 2026. Mark Sutton, office agency partner in Knight Frank’s Cardiff office, said: “There were 92 office deals concluded in the year with an average deal size of 6,322 sq ft, more than double the figure for last year and 40 per cent ahead of the 10 year average.” Prime rents for the city moved onto £28 per sq ft in Q3, with occupiers continuing to focus on prime space with just 16 grade A deals accounting for 45 per cent of the quarter’s take up. Mr Sutton said:“With continued demand for the best quality space we will see the availability of grade A space continue to decline in 2025 and this will translate to further pressure on rents, pushing them beyond £30 per sq ft this year.” Office vacancy rates inclusive of out-of-town areas stood at 11% the end of 2024. Mr Sutton added:“The stand out deal of 2024 was Lloyds Bank signing up to take a lease of 1 John Street, a stand alone 113,000 sq ft office building at the head of Callaghan Square in the heart of Cardiff’s central business district,” Other notable deals in the city centre included professional advisory frim PWC signing up for 33,166 sq ft at 1 Central Square, and Aldermore Bank’s move across to the 28,098 sq ft 2 Central Square, along with the sale of the 50,934 sq ft Wilcox House at Celtic Gateway. Cardiff Gate led the out of town deals with Welsh Government’s acquisition of the 51,411 sq ft Centre 7 to create a new hub for the semiconductor industry. Overall, the financial services and banking sector took centre stage in 2024 with the 17 deals in this sector totalling 253,057 sq ft and accounting for more than half of the year’s total take up, High-profile deals in the sector also included expansion from Starling Bank at Brunel, and Go Compare’s move to Hodge House. Looking at availability in 2025 Mr Sutton said: “With no new buildings being delivered in 2025 the severe lack of prime office space will be a continued trend for the year ahead. Grade A availability has dropped below 300,000 sq ft and with several live requirements between 15,000 and 50,000 sq ft the competition for space is hotting up. “The market continues to polarise and there is activity where landlords have created - or are investing to create - a suitable standard of office space with the right environment and amenities. Secondary locations or where landlords have not yet invested will continue to struggle. "We are seeing better occupancy levels across the sector with businesses using flexible workplace strategies but with an increased focus on staff being in the office. Businesses remain focused on creating a better environment to achieve corporate goals, retain and attract staff and to future proof their occupational assets.”

Commercial Property2025-04-19 00:49:12

JD Sports updates plans for new 'campus' HQ that will 'rival Facebook and Google'

JD Sports, the fashion retail behemoth, has unveiled revised plans for a campus headquarters in Bury, which company leaders claim will 'rival Facebook, Google and Nike'. The proposed development at Pilsworth, near the M66, includes an all-weather sports pitch, running track and padel court for employees and guests. Preliminary plans for the campus were approved in 2023, and new road access and car parking off Pilsworth Way and Hollins Brook Road have been completed. JD Sports previously stated that they needed to invest millions into the working environment in Bury to 'attract talent' and compete with the facilities offered by global brands and tech firms. Bury Council's planning committee will review detailed plans for 'phase two' of the project next week. The new hub would be a three-storey building serving as a 'central office', featuring offices, a gym, restaurant, cafe, meeting rooms, training facilities and a presentation theatre with outdoor terraces. The building, designed with two wings connected by a central atrium and linked on the first and second floors by a bridge, could accommodate around 2,000 workers. Nearby, multi-purpose all-weather pitch and circular running track would be constructed. The latest plans have scaled down the building from four storeys to three, and previously approved plans for an employee crèche have now been scrapped, reports the Manchester Evening News. JD Sports, currently operating out of three buildings on Pilsworth Road and employing around 1,300 people, is one of the largest employers in Bury. The sports and leisure firm referred to the creation of the campus as 'a pinnacle moment in our company's history' when the outline plans were approved. A design and access report supporting the latest plans stated: "The business is seeking to work with their employees to improve staff retention." It further added, "JD recognise the need to update and improve on the benefits that the business provides for employees. The requirements include an improved food and beverage offer on site, gym and recreation facilities, training environments and collaborative working spaces." The planning committee meeting will decide on the application on Tuesday, January 28.

Commercial Property2025-04-19 00:49:12

Runway East to open co-working space in Bath

Co-working space provider Runway East has signed a 20-year deal with global investment firm Abrdn to open a new site in Bath. Kings Court, a Grade II listed building on Parsonage Lane in the city centre, is the flexible workspace company’s third site in the South West. Runway East Bath, which covers 23,000 sq ft, will open in phases starting in the spring of this year. The agreement is the second with partner Abrdn following a deal for Runway East Bloomsbury, a 45,000 sq ft joint venture. “It seems we’re collecting all the cities beginning with B! Bath joins Brighton, Birmingham and Bristol in addition to our sites in London,” said Natasha Guerra, chief executive of Runway East. “Bath is internationally known for its UNESCO World Heritage status, it is regularly featured as one of the best places to live, work and visit - so we are thrilled to offer our services here.” Edinburgh-headquartered Abrdn joins L&G, GPE, Peer Group and Soho Estates as landlords of Runway East sites. In Bristol, Runway East is the largest operator of flexible workspace. Peter Tomley, deputy fund manager from Abrdn, said: “We’re really pleased to welcome Runway East to King’s Court, Bath. With a business model to create the best possible environment for startups and scaleups, as well as established businesses looking for more flexible office solutions, their product is a great addition to the city, playing both to the region’s growth agenda whilst also providing the fund with long term, durable income.” Runway East was selected as the preferred partner by Abrdn given its knowledge of the South West market. Will Kinnear, founder of HEWN who advised Abrdn, added: “They are a great addition to the Bath market, their in-demand product is attune with the ambitions of the local council and the economy it wants to create and foster.” Runway East, which is B-Corp certified, now has 13 spaces across London, Birmingham, Brighton and Bristol. Businesses using their space include household names such as Deliveroo, Dojo, and Grind.