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REI reports strategy on track with £20m sales but remains in the red

2025-03-25 13:16:15 By

Paul Bassi, chief executive of Real Estate Investors

Birmingham property group Real Estate Investors says it is continuing with its sales programme while reducing debt after announcing its annual results.

Listed Birmingham-based REI reported completed sales of £18.9 million in 2024, with an additional £1.6 million of completed and contracted sales since its year end.

It said disposal proceeds had been used to pay down £15.2 million of debt, reducing the company's total debt to £39.2 million.

This is down from £54.4 million at the end of 2023 and a further £1 million has been paid since the turn of this year.

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Chief executive Paul Bassi said: "We are on track with our three-year, orderly sales programme announced in January 2024 to repay our debt and return capital back to shareholders."

He said that, despite the early General Election in 2024 and the negative impact of the Autumn Budget on the property market and economic sentiment, REI completed £18.9 million of targeted sales aimed at the private investor market.

The company reported a pre-tax loss of £2.4 million, reduced from £9.4 million in 2023, primarily as a result of a revaluation deficit of £6.3 million on investment properties.

Mr Bassi added: "There are signs that the property investment market is bottoming out and we anticipate stable and improving values ahead.

"We are optimistic that, with the anticipated improvements to the property market and against a backdrop of gradually reducing interest rates, planned sales to private investors in the first half of 2025 and larger asset sales in the second half of the year, along with further debt reduction, will be achieved.

"The pace of the sales strategy will be dependent on further interest rate reductions and no major adverse events.

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Commercial Property

Humber property firm Clark Weightman snapped up by national group Sanderson Weatherall

2025-03-25 13:16:15

A Hull property consultancy has been snapped up by national business Sanderson Weatherall to expand its regional presence. Clark Weightman, Hessle-based chartered surveyors and commercial property consultants, has become the 11th UK office for its new owners and it will maintain its name to trade as Clark Weightman, part of Sanderson Weatherall. The acquisition has been made to bolsters Sanderson Weatherall's presence in the Humber, East Yorkshire, and northern Lincolnshire regions, including the key port locations of Hull and Grimsby. The move also expands the firm's service offering to clients across various sectors. The Clark Weightman founders all previously worked for a regional firm before establishing the business, which has over 25 years of experience in the regional property market, with expertise in agency, business rates, property management, lease consultancy, valuation, healthcare, dispute resolution and public sector consultancy. David Rastrick, COO at Sanderson Weatherall said: “We are delighted to welcome Clark Weightman to the Sanderson Weatherall family. This acquisition aligns perfectly with our vision to further solidify our position as a leading SME in the property industry, with a strong local and regional presence. “Sanderson Weatherall, a certified B Corp, has established high standards for environmental and social impact, and a robust approach to governance. This has made the firm an attractive partnership option when you also consider the benefits that come from economies of scale for smaller companies concerned about the increasing financial burden and mandatory requirements, which continue to be introduced and implemented by Government and regulatory bodies.” Andrew Clark, director at Clark Weightman, added: “We recognise the growth opportunities in our region and are excited to join forces with Sanderson Weatherall, a highly regarded and well-established firm with national reach. This partnership will allow us to leverage their B Corp status and other accreditations, enabling us to offer our clients a broader range of services and expertise. It will also create exciting new professional development opportunities for our employees. “There will be no change in our personnel with myself, Simon Weightman and Carl Bradley joining as partners and other staff members continuing in their existing roles.” Mr Bradley added: “This is an exciting time for me and the Clark Weightman team. We have enjoyed a good working relationship with Sanderson Weatherall over recent years on a number of successful joint agency instructions and look forward to building that relationship in the future now that we have joined forces and become part of their business. I am sure our clients will share that excitement and will benefit from our expert local market knowledge whilst being part of a larger national consultancy.” Mr Weightman added: “This is the result of 12 months of active positive discussions which has resulted in the merger of our two firms. I’ve known some of the Partners of Sanderson Weatherall for many years, having graduated with Dan Hardy and Andrew Ellis back in 1989. I can’t wait to introduce my current and future clients to our wider range of services that this national consultancy can provide.”

Commercial Property

Deal signed to progress new health tech campus

2025-03-25 13:16:15

Plans to deliver a health technology campus have taken a step forward after the project's partners entered a heads of terms agreement. University of Warwick and developers Arden Cross and Muse have signed the deal to create the new facility in Solihull which will bring together the university, NHS, private providers and industry to support start-ups to enter the health service and other markets. It will also deliver a range of community benefits closer to home, including supporting local health and wellbeing through access to medical research and technology. The campus will form part of the wider Arden Cross regeneration scheme which is aiming to develop new commercial and residential property to tap into the benefits of the HS2 Interchange station near Birmingham Airport. The £3.2 billion scheme could deliver tens of thousands of jobs alongside public spaces and an innovation district where the health tech campus will sit. 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. West Midlands Mayor Richard Parker said: "Arden Cross is a priority growth project for me and the region. It's pivotal to delivering the business investment and the jobs that we need. "But we must move faster because complex projects can often take a long time to commence and there is now an urgency for delivery. "That's why I will be working closely with our local councils, investment partners and Government to unlock delivery and attract thousands of new jobs and homes for our local communities. "Accelerating the development of the healthtech campus will create more high-quality employment, build on our competitive advantage and help improve the lives and health of people across the region and beyond." University of Warwick vice-chancellor Stuart Croft added: "The campus will leverage the competitive advantage of the West Midlands to accelerate innovation in healthtech, transform healthcare services and improve patient outcomes locally, nationally and globally. "The ambition of the campus is closely aligned with both the UK's Industrial Strategy and NHS transformation plans. It has the potential to drive significant value for the UK economy and health system.

Commercial Property

New £6.5m North Tyneside industrial scheme set for market

2025-03-25 13:16:15

Industrial space at a new £6.35m development in North Tyneside is now on the market after being completed by UK Land Estates. Regional property developer and landlord UK Land Estates broke ground on the huge L7 scheme last summer, amid moves to tap into demand for industrial space. The speculative development has created 73,000sqft of hi-spec industrial and distribution space at the North Tyneside site, and forms part of a £35m investment programme across the firm’s regional business space portfolio. Brandon Bailey, projects director at UK Land Estates, said: “With a shortage of vacant, high-quality industrial space across the UK, we do not see L7 as a risk. In fact, we are really looking forward to bringing it to market as we expect a great deal of interest. “It’s one of a number of projects under way that is strengthening our portfolio, but particularly at the Tyne Tunnel Estate, where we are investing £11m in L7, the recent completion of the refurbishment of the former JTF Discount Warehouse building, several smaller C-units and we recently started refurb of another large industrial unit on the site.” Construction of L7 has been led by STP Construction Limited, with the local supply chain including Thompsons of Prudhoe, Philadelphia Structures, CCS Cladding, Mathew Charlton, ME Electrics and Voltz power services, and design partners including Faulkner Browns, Portland Consulting Engineers and Kinetic Engineers. The development has delivered 72,898sq ft of flexible industrial and/or warehousing, including 5,955sq ft of office space, and will be marketed by Knight Frank and Savills. David Gibbs, property director at UK Land Estates, said: “This estate is in a fantastic location, close to the main arterial road network and port services. Proximity to workforce and high density housing makes the building an attractive proposition for both manufacturing or distribution. Delivering quality buildings for business on core estates remains our main focus and we have every confidence the building will be well received. “We’re confident L7 will generate plenty of interest, but it won’t be the only large-scale project on the site and we’re progressing several options to deliver further projects of this size and larger, attracting businesses and creating employment opportunities in North Tyneside.

Commercial Property

City centre retail block sold

2025-03-25 13:16:15

A prime retail and leisure building in Birmingham city centre has been sold in a £4 million deal. Temple Buildings, a part grade II-listed property on the corner of New Street and Temple Street, has been acquired from Hortons by a private investor. The complex comprises two adjoining properties, 49-50A New Street and 19-20 Temple Street, which together total 10,055 sq ft. The ground floor units are let to clothing retailer Moss Bros, Ryman stationers, bubble tea café T4 and Everyman Barbers. 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. The upper floors of 19-20 Temple Street are let to Vogues Holdings for residential use. Birmingham-based agency MK2 Real Estate sold the building on behalf of Hortons. Director Mark Johnson said: "Despite the economic challenges over the last few years, Birmingham's retail and leisure market has remained resilient, with positive levels of take up and tenant demand. "Temple Buildings sits on the main thoroughfare from Grand Central to the Colmore Business District and the popular bars and restaurants in the area, with high footfall and passing trade as a result." Steve Tommy, head of asset management with Hortons, added: "The disposal of Temple Buildings is part of our ongoing strategy to reinvest in both existing and new projects within the industrial sector."

Commercial Property

Plans unveiled for new £100m Digbeth scheme

2025-03-25 13:16:15

A former ironworks site in Birmingham city centre could be transformed into a new £100 million mixed-use development. Hartwell, the automotive and property development company, has unveiled its proposals for the old Phoenix ironworks off Digbeth High Street which will be led by 240 new residential units. Called Phoenix Yard, the designs also include 260,000 sq ft of media and educational space, commercial floorspace, retail units, public realm and landscaping. The brownfield plot, which covers 2.8 acres and sits next to the new Eastside tram extension connected to the HS2 station, is bordered by Coventry Street, Oxford Street and Meriden Street. 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. Hartwell said Phoenix Yard could create around 200 construction jobs and has the potential to deliver more than 500 full-time equivalent jobs. Architecture practice Allford Hall Monaghan Morris has designed the scheme which Hartwell said paid homage to the land’s industrial history as Phoenix ironworks. The application site is now occupied by a children’s nursery and was home to South & City College and more recently Birmingham City University’s STEAMhouse innovation facility before it moved to a new development in Belmont Row. Hartwell, which owns the land, was founded in 1919 and also previously ran a garage there. A public consultation has now been opened into the proposals which runs until the end of March ahead of a planning application being submitted to Birmingham City Council. The project would join a long list of new developments currently in the pipeline for the Digbeth area including the Beorma Quarter opposite Selfridges and the neighbouring Stone Yard and Tower Leaf schemes, also off High Street. Elsewhere in the district, the BBC is revamping the former Typhoo factory to create a new home for its West Midlands teams currently based in the Mailbox and the Smithfield project will revamp the old Wholesale Markets site near the Bullring. Joanne Churchill, group property manager of Hartwell, said: "We are delighted to unveil our vision to transform an under-utilised brownfield site to deliver Phoenix Yard. "Through unlocking the potential of this site, our plans promise to positively contribute to the area’s ongoing transformation into a thriving and vibrant part of Birmingham, delivering an exciting range of new opportunities and living space for the future. "In recent years, Digbeth has benefitted from significant investment and is recognised by Birmingham City Council as a key growth area. This scheme has been designed with this investment and the wider ambitions for Birmingham in mind. "The potential delivery of media and educational space will support the continuing growth of BBC Midlands HQ and its ecosystem following its multimillion-pound investment into the area. "Similarly, new homes will complement the site’s location in Digbeth’s creative centre. "This will be supported by excellent connectivity, which is enhanced by nearby major transport investments including HS2’s Curzon Street Station and the Metro Eastside Extension. "We look forward to receiving comments on the proposals from local residents and businesses, with feedback set to help inform our final planning application."

Commercial Property

Warrington building to be transformed into digital hub

2025-03-25 13:16:15

Good progress is being made on the transformation of a building on one of Warrington's busiest roads into a digital enterprise hub. A report being presented to the council's cabinet for its Monday meeting includes an update on the project at St James Business Centre, located on Wilderspool Causeway. The quarter three review of non-treasury investments says the business centre will house Warrington's first digital enterprise hub, with work well underway to renovate and upgrade the building to suit this new economy sector. It stated: "The new roof is already in place along with restrooms and remodelled interiors. The entrance to the building will be changed to have more presence on Wilderspool Causeway, which will also benefit from a new café." The report added: "This new workspace will provide an excellent environment for digital businesses to collaborate and grow, and has already been the subject of interest from several established businesses in this sector."

Commercial Property

Plans for 145 new homes in Old Trafford to replace warehouse and bakery

2025-03-25 13:16:15

Plans for the construction of 145 homes on the site of a former wholesale warehouse and bakery in Old Trafford are likely to be approved at Trafford's planning committee meeting on Thursday. The proposed development, which will replace buildings previously occupied by trader Valitus Ltd and the Jesse Oldfield Bakery, includes a residential-led mixed-use scheme, community space, car parking, and landscaping. The project, proposed by YC Property Group Ltd, will be situated on a three-acre brownfield site on Brixham Road and will comprise 123 apartments and 22 terraced houses, with 40% designated as affordable housing. Additional features include a corner shop at the junction of Brixham Road and Ayres Road, 'local areas of play', and a series of interconnected communal gardens. Private amenity spaces will be provided through gardens, terraces, and balconies. Vehicle access to the site will be from both Ayres Road and Brixham Road, with courtyard parking available. The apartments will be distributed across four separate blocks fronting onto Ayres Road and Brixham Road, while four rows of terraced housing are planned for the south-western part of the site. A report by Trafford planning officers, who have extensively consulted with the applicant, recommends approval of the plans. The application has encountered opposition, with 10 letters of objection submitted by local groups including the Old Trafford Amateur Gardeners' Society (OTAGS) representing Seymour Grove Allotments and Orchard 49. The objectors have raised concerns about the potential construction impacts, such as dust generation affecting plant cultivation, possible food contamination, and soil damage. Some are calling for restrictions on construction hours to avoid noise pollution at evenings and weekends and have specified that any beehive relocation should occur only in winter, with compensation provided for any property damages incurred. One objection highlighted the importance of allotments, stating: "Allotments must be protected and cherished. They are of huge value to the local community and positive for physical and mental wellbeing." The planning report advises the committee to approve the project on the condition that the developer contributes £318,562 towards off-site affordable housing, £29,926 for open space provision, £219,936 for secondary education in the area, and pays £15,000 for a traffic regulation order review. The report argues that "The delivery of 145 new homes – including 40% affordable – on a sustainable brownfield site which would contribute significantly towards the delivery of housing within the borough would be of benefit. "This is of considerable importance, given the aspiration of both the council and the Government to significantly boost housing delivery. Substantial weight is attached to this benefit."

Commercial Property

Bruntwood completes £4.5m office revamp

2025-03-25 13:16:15

A £4.5 million project to regenerate an office block in Birmingham city centre has been completed. Bruntwood SciTech has led the scheme to revamp its Centre City offices, in Hill Street, which forms part of a wider mission by the group to spend £52.5 million renovating its estate in the city. Among the new facilities at Centre City include a green atrium, wellness centre, fitness studios, café and active travel facilities. The 20-storey building also has a range of flexible workspaces for companies of differing sizes while common areas of the building are now powered by 100 per cent renewable energy. 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. Current tenants in Centre City include global tech firm Hitachi and the Ministry of Justice. Other work completed recently by Bruntwood SciTech in Birmingham includes Cornerblock in Cornwall Street while construction is nearing completion on the first building on the Health Innovation Campus in Selly Oak. Its Mclaren office block near Moor Street station is also undergoing facelift work. Regional director Rob Valentine said: "Birmingham is rapidly becoming one of the UK's most exciting innovation hubs, with over 2,000 tech startups and more than 6,000 tech businesses calling the city their base. "In particular, we're developing real strength and expertise in subsectors like fintech, digital marketing, medtech and gaming and that's in no small part down to the unparalleled talent, excellent links to academia and extensive business support networks on offer in the city. "Continuing to invest in this ecosystem and the infrastructure that supports it will be crucial to keeping up momentum and unlocking future growth and innovation in the city. "Our transformation of Centre City will see it become a crucial part of this supportive innovation ecosystem, helping to drive increased interest in the city from new and growing businesses. "More and more businesses are demanding the very best from their workspace facilities and amenities and we're confident that we've created an environment that will allow ambitious businesses to create, innovate and succeed." Separately, Bruntwood SciTech, which is a joint venture between Bruntwood, Legal & General and the Greater Manchester Pension Fund, has appointed Molly Cook as associate commercial director for the West Midlands.

Commercial Property

Festival Park in Ebbw Vale transformed into new business development

2025-03-25 13:16:15

The former Festival Park retail scheme in Ebbw Vale has been transformed into a new business location. Owners in Birmingham-based Mercia Real Estate have created 24 industrial units totalling 84,202 sq ft for businesses and logistic operators on the 70 acre site. The 24 units range in size from 958 sq ft to almost 12,000 sq ft and offer a range of business uses including light industrial, trade counter and storage units. The redevelopment work has transformed the site from a retail park to a multi-use business facility. The investment has seen modifying existing units, removing their canopies, and recladding and reroofing the refurbished units. The site has an improved access and flow to accommodate industrial operators including the central walkway being resurfaced to create a spine access road. In addition, the landlord has undertaken a comprehensive remodelling of the site which included dismantling specific units to create more yard space, parking, roads, and paths. Mercia Real Estate acquired the unoccupied site in 2021 and was granted planning permission last year to go ahead with the changes. Its chief executive, Samuel Clark, said: “The much-needed redevelopment of Festival Park provides an attractive proposition to new and existing businesses, and provides a range of unit sizes to enable successful small businesses to expand over time without ever needing to leave the site to find larger premises.” The company has appointed the Cardiff office of global property consultancy Knight Frank to attract tenants to the completed centre. Rhys Price, associate in Knight Frank’s industrial and logistics division in Wales, said: “This is a great opportunity that is addressing the lack of refurbished, quality business units in the region within close proximity to the Heads of the Valley. The development provides a broad range of occupational space that is attracting strong interest from a range of potential occupiers already. “The Festival Park site has a long history and the landlord’s imaginative redevelopment of Festival Park, coupled with a willingness to agree leases quickly, will help bring the site back to life and this will no doubt be an attractive proposition to local and national businesses.” The existing site was chosen as the last British Garden Festival site in 1992 because of the waste land which had been the British Steel steel and tin works, which had been partly demolished in the early 1980s. The National Garden Festival ran from May until October 1992 and attracted over two million people.

Commercial Property

Salford's long term vision for the future revealed – more homes, jobs, offices and transport options

2025-03-25 13:16:15

Salford's future is taking shape, with a vision for the city by 2042 outlined in the second part of Salford council's local plan including ambitious goals for jobs, housing, transport and property development. The document, known as the borough's 'core strategy and allocations.', includes plans for housing, employment, and transportation. The council has plans to construct at least 33,000 homes by 2042, but this figure could rise to around 40,000 as Salford has also adopted the Greater Manchester Places for Everyone scheme. The future blueprint for Salford also involves creating over 250,000 sq m of new office space and 550,000 sq m of industrial and warehousing facilities, providing a significant boost to the local economy and job creation. The plan indicates that a 'large proportion of new housing and office development' will be concentrated in the city centre and Salford Quays – identified as key growth areas – with industry and warehousing centred around Port Salford in the south-west part of the city. Approximately 85% of new development is planned to be built on previously developed land and existing buildings which are currently vacant, according to the plan. In the city centre and Salford Quays areas, new housing is set to focus on apartments and duplexes, with more houses within the inner-city areas such as Eccles and Ordsall, and further out towards the edges of the borough. Significant development projects are ahead for the Salford Community Stadium, which the council acquired with aims to bolster tourism, business, as well as industrial and warehousing sectors. In terms of transportation, Salford Council is devising strategies to 'minimise the need to travel', pushing for sustainable transport options to reduce car usage by expanding development work's scale and density. These initiatives align with imminent improvements to the city’s walking and cycling infrastructure, including upgrades along Chapel Street. The city's blueprint for growth also proposes allocating additional land at Duchy Road to supply new accommodation for the gypsy and traveller community, addressing an acute shortfall in plots for travelling showpeople, adjoining the north of the current site in that locale. Distinct masterplans for Salford’s neighbourhoods are being drafted to detail their prospective evolution. With an expected formal adoption by autumn 2026, the local plan has recently undergone a ten-week public scrutiny period spanning December to February 2025. Coun Mike McCusker, in charge of planning, transport, and sustainable development for Salford Council, said: "Core strategy and allocations is an important final element for Salford's local plan. "It builds on Places for Everyone and the Salford local plan: development management policies and designations, to support the continuing sustainable growth of a fairer Salford, fostering neighbourhoods where all communities can thrive. "This part of the local plan sets out how and where Salford's growth will happen, and how we'll ensure that this growth happens alongside a high-quality and resilient natural and built environment. "There's still a lot of work to do on the local plan as we progress, and we hope that the local community engages with this process as much as possible."