The market in minutes – east midlands

Stuart Watson gives you the lowdown on all the sectors across the region

Offices

Derby City Council has granted planning permission to developer Bolsterstone to build a 50,000 sq ft office scheme (above) on Cathedral Road in Derby city centre.

Subject to funding the developer plans to construct the building speculatively with completion scheduled for mid-2009.

The East Midlands Development Agency has launched a £35m High Quality Employment Floor Space Fund.

It will provide grants of between £250,000 and £5m for schemes in the region that encourage the creation of high value-added jobs.

The deadline for applications is 18 February.

Work on a new access road at Abbey Meadows has been completed, opening up two sites at Leicester Science Park for development.

The first will have a £60m scheme on 7 acres, owned by East Midlands Development Authority. An adjoining development will have offices, a car showroom and riverside housing. IM Properties has completed a 25,000 sq ft speculative office building at Pegasus Business Park near East Midlands airport.

Lambert Smith Hampton and Fisher Hargreaves Proctor are the letting agents.

Structural steelwork group Severfield Rowen has taken a 15-year lease on an 8,267 sq ft building at Sladen Estates’ 116,000 sq ft the Village office development in South Normanton, Derbyshire.

Wilson Bowden Developments has submitted a planning application to Nottingham City Council to construct four speculative office buildings totalling 90,000 sq ft at Nottingham Business Park. Fisher Hargreaves Proctor is the letting agent.

Airship manufacturer Zeppelin has taken a 13,000 sq ft building in Innovate Group’s scheme at Sherwood Park in Nottinghamshire.

It will pay £14.50/sq ft on a 10-year lease with a five-year break. Nottingham City Council has also taken 13,000 sq ft for 10 years at a similar rent. HEB was the agent.

Industrial

Wilson Bowden Developments has completed two terraces of speculative industrial units totalling 61,000 sq ft at its 32 acre Centrix scheme in Corby.

The 10 units of 4,000-10,000 sq ft each will be marketed at £4.95/sq ft to rent and £75/sq ft freehold. GAC Logistics has taken a 10-year lease on a 16,000 sq ft unit at Wilson Bowden Developments’ East Midlands Distribution Centre near Castle Donington at £5.65/sq ft.

The developer has completed construction of a 40,000 sq ft unit at the site and plans to build a further 88,000 sq ft speculative shed.

Standard Motor Products has sublet a 37,000 sq ft building from Babcock Networks at Sherwood Park in Nottinghamshire. The new tenant will pay £4.95/sq ft on a lease expiring in 2022.

Lambert Smith Hampton was the letting agent. Volvo has pre-purchased a 20,000 sq ft shed at Wilson Bowden Developments’ 60 acre Interlink Park near junction 22 of the M1. The car maker paid £5.2m for the building.

King Sturge and Lambert Smith Hampton acted for the vendor. IM Kelly Automotive has taken a 44,000 sq ft refurbished industrial unit at Kettering Business Park on Orion Way at around £4.43/sq ft.

Lambert Smith Hampton acted for the landlord, Clowes Developments.

Retail

Hammerson and Hermes have let 70% by income of their £350m Highcross Leicester scheme. Around 30 units remain to be let before the scheme’s scheduled opening in September.

Primark has confirmed that it will open a store in Derby city centre. The budget fashion retailer will occupy the former Marks & Spencer unit on Corn Market.

Mixed use

Developer David Osborne has secured two hotels as anchor tenants at the £95m Riverlights mixed-use scheme in Derby. Hampton by Hilton will open a 120-bedroom hotel, and Holiday Inn a 110-bedroom facility.

Highways works are completed and construction of the first phase is due to begin in the spring.

Developer Bildurn has completed its £25m retail and hotel scheme, the Pod, in Nottingham.

The 108,000 sq ft building houses three levels of shops and a 142-bedroom Ibis hotel. Network Space, the joint venture between English Partnerships and Langtree Group, has completed the construction of the 50,000 sq ft Sherwood Network Centre at Ollerton in Nottinghamshire. Small office and industrial units are being marketed for letting on flexible terms. The developer will complete a further 35,000 sq ft at its I2 scheme in Mansfield later this month.

Cedar House Investments has sold 6 acres at its Axion Business Park in Derby to East Midlands Development Agency, which will use the site to relocate occupiers from the Castle Ward area of Derby, where a mixed-use regeneration scheme is planned.

Leisure

Ramada Encore has purchased a plot of land from Cedar House Investments at Pride Park in Derby for more than £1m/acre. The hotel chain will complete construction of a 112-bed building in the summer.

Property Week