Property Forum

Take stock and review

2012-01-26T14:22:00.000Z

Thecommercial property sector is to come under further pressure during 2012 in thelight of the current economic climate and the uncertain times ahead for theEuro Zone. Both rental and capital valuesstarted to show sign of weakening during the Q4 last year and are expected to continueto decline during 2012 as the continuing uncertainty over the future of theBritish recovery continues. Tough marketconditions in the retail sector have led to have affected high streets acrossthe country. Even the usually resilient London market is startingto show significant stress with rental levels and capital values starting todecline as the number of potential transactions slows.

However,all is not lost! With the decline invalue for the landlord comes the increase in opportunity for the tenant. Now is the ideal time to undertake a comprehensivereview of all your lease and occupancy arrangements.

Are you able to exercise any lease breaks?
Are any leases up for rent review?
Are you holding over?
Have your business needs changed?
Is your occupancy at the optimum?
Could you place any non essential requirements in better value accommodation?
Is there an opportunity to outsource activities?

Everycloud has a silver lining, see what lies behind this one for your business.

Innovation@jaltd.co.uk

Residential market continues to fall

2012-01-17T18:23:00.000Z

Asthe banks’ mortgage lending criteria continue wreak havoc with the UK residentialhousing market Rightmove (www.rightmove.co.uk)reports the number of searches carried out on their website in for the first 10days of 2012 reached record levels.

Aspo faced bankers continue to be allowed to make everyone else pay for theirmistakes, setting lending criteria that has surely strangled the housing marketinto submission, new to market property listings plunged to a 10 year low. Londonprices managed to go against the trend with a rise in values of just over 6%,but against the lowest level of activity in over three years.

Asexpectations are that the market will continue to be difficult during 2012, ofthose 44 million searches that were carried out, how many were done so in hoperather than expectation?

Reading Acquisition Update

2012-01-12T18:06:00.000Z

Rumour abounds that Prupim hasacquired the biggest office development site in the south east. The 3.3acre site, in the centre of Reading,is adjacent to the mainline railstation and currently houses EnergisHouse, 105,000 ft² of prime office space and a development plot.

Energis House is the controversial,loved and hated in equal measure, ex Metal Box building, an octagonal throwbackto the heady days of the 1960’s with fine views over Reading Gaol. Forover 10 years there has been speculation as to the future of this site, withinterest being shown from a number of parties over time.

Thesite already has detailed consent for upwards of 400,000 ft² ofoffice space in a scheme that would include the demolition of the existingbuilding.

DIO to partner?

2012-01-09T08:36:00.000Z

TheDefence Infrastructure Organisation, which formally replaced Defence Estate in April 2011 has issued a formal invitation to private sector companies interested inmanaging the department’s estate.

Througha process of “soft market testing” the theory that best value for money will beachieved through greater involvement of the private sector will be explored. The soft market testing will provide theopportunity for all parties to explore different and, hopefully original, ideasthat will enable the best value for money agenda to be pursued.

DIOhas already ruled out the possibility that an existing contractor could bechosen as a partner in this activity, with acting Chief Exec Andrew Manley saying that theywould not be able to “bring the right mix”. This rather harsh assessment would seem to condemn all currentincumbents into a 'task driven, contracting only' role, perhaps a comment on previousprocurement policy.

DIOhas announced that it is targeting savings of £1.2 billion over the next four yearsthrough efficiency measures and asset sales. The MOD is owner to one of the largest estates of land and built assetin the UK. Over 240,000 hectares of land, much used fortraining purposes, is owned and any potential asset sales, particularly of landparcels, will create significant interest. The MOD acknowledges that DIO is obliged to consider the potentialapplication of the Crichel Down Rules to all of its surplus sites.

Anotherfactor in this exercise is the effect that the return of service personnel tothe UK from Germany willhave. It is expected that all 20,000troops will return over the next 10 years and the requirement for accommodationwill be a significant element in the thinking. Currently around 50,000 service family accommodation properties aremanaged on behalf of the MOD.

Back to Reality?

2012-01-03T16:55:00.001Z

As the

is lashed by storms, heavy rainfall and record high winds there are thoseamongst us who wished we had stayed under the duvet this morning.

Today was the first official day back from the Christmas and New Yearholidays, although I did hear today that some are stringing it out untilThursday and some even into next week (where did I go wrong?)! We have passedthe half way point and the nights really are starting to pull out (really?!) andwe must acknowledge that a New Year is upon us!

Now is an ideal time to consider the real estate and propertyopportunities your portfolio represents for your business. Whether you need to review your existingportfolio of commercial rented accommodation or review what your businessassets are doing for you, James Alexander Consultants are ready to help withimpartial, client focussed advice. Get in touch,eMail us on innovation@jaltd.co.uk

Should you have a reorganisation of your working space in mind and wantto assess the opportunities without having to resist product offerings in theprocess, we can assist:

Property Consultancy -
assessing business needs with current assetbase

AssetManagement -
development of strategies for rationalisation, expansion, acquisition and disposal.

Project Management -
implementing change strategies

BusinessMentoring -
in financial and generalbusiness administration

We work for you, and with you and help you understand how your assetswill work harder for you in 2012.

Don't forget to get in touch on innovation@jaltd.co.uk

Wishing you all a very Happy and Successful New Year,

Happy Christmas!!

2011-12-25T08:00:00.000Z

A quick blogto wish all our clients, friends and contacts a very

Happy and PeacefulChristmas

and

Very best wishes for the New Year!

Low Power at Battersea

2011-12-21T19:34:00.000Z

The owners ofBattersea Power Station, Real Estate Opportunities Plc had subsidiary companiesplaced into administration when a request by the banks, intent on recoveringthe £502 million they are owed, was acceded to in the court.

Ernst &Young have been appointed to administer the affairs of Battersea Power StationShareholder Vehicle Ltd. including REO Power Station Ltd. REO Site AssemblyLtd., REO 88 Kirtling St. Ltd. and REO 8 Brooks Court.

The 38 acre Battersea Power Station site, which includes the remains of theiconic A & B power stations, including the famous 4 chimneys is valued at£500 million and was in line for a £5.5 billion redevelopment having finallyobtained planning consent. That permission called for a £200 millioncontribution to the extension of the Northern line to Nine Elms, to service the3,400 homes. It is these wider planningconditions, together with the extensive requirements for sympathetic renovationof the Grade II* listed building that has finally put paid to this last attemptat regeneration of the power station site. REO are the fourth potential developer in the past 30 years to attemptto rescue the money pit that it has turned out to be.

It isunderstood that a number of options are being explored, including a suggestedinterest from Chelsea FC, who are looking for a new stadium site. It is thought ‘The Blues’ have engaged MikeHussey to explore the idea.

Perhaps MrAbramovich has deep enough pockets!

Olympic Village to get a Rebrand

2011-12-07T14:25:00.000Z

The Olympic Athletes’s village will berebranded following the games and will become the East Village.

Delancey and Qatari Diar together with Triathlon Homes, the housing consortium running thescheme’s affordable element, today confirmed thatmost of the 1,439 flats at the east London blocks would be available for rentfrom 2013 onwards.

The Village will comprise a mix pfproperty ranging from one bedroom flats through to four bedroom houses and willcarry an E20 postcode. The mixed usagedevelopment will also be home to over 20 retail shops and premises as well as amedical centre and the Chobham Academy. The Academy will take 1,800 children from theages of 3 – 19 and will, among other subjects, specialise in Sports excellence,no surprises there!

Elliot Lipton of TriathlonHomes said: “Our vision is to deliver a neighbourhood that provides the verybest quality homes and services to its residents and one which fosters awelcoming, inclusive, safe and vibrant community.

The development of the Village is seenas one of the key residual assets of the Games and will contribute towards thegreater regeneration and transformation of east London post the 2012 Olympic Games.

Green Park Goes to Oxford

2011-12-01T15:10:00.000Z

Reading’s premier out of town commercialbusiness park has been the subject of a recent acquisition. PRUPIM has sold the 190 acre park to Oxford Properties Group, the real estate arm of the OMERS WorldwideGroup of Companies.

Green Park offers 1.3 million sq ft of Grade A office space and first classamenities to occupiers, which currently includes Cisco Systems, Symantec andQuintiles. Green Parkwas so named to reflect its programme to address sustainability and associated“green” issues, which includes the reduction of waste and emissions, thepromotion of biodiversity, recycling and a green travel plan.

Green Park occupies a prime location on the M4 and is one ofthe largest developments of its type in Europe. Adjacent to Green Park, regular travellers onthe M4 can not fail to have noticed Ecotricity’s impressive, and often static,wind turbine at Junction 11 and wondered at its purpose.

DTZ actedfor Oxford Properties on the purchase. CBRE acted for PRUPIM.

Food Fight!

2011-11-24T16:19:00.000Z

There are fewsectors in British retailing that rival the cut throat nature that is to foundamongst the players in the food retailing sector. Famously robust with suppliers and heartlesswith each other, the big four retailers continue to battle for their share ofthe UK’s£150+ billion grocery shop.

Competitionis fierce; Tesco, the

’sbiggest retailer with over 2,700 stores is said to be losing ground to itscompetitors. Even though special salespromotion campaigns have seen an increase in footfall, revenue has fallen. Following years of aggressive acquisition ofnew sites for superstores and its branded Tesco Local the recent promotion of Kevin Grace, its UK Property Director since 2006 toGroup Commercial Director, has perhaps signalled an end to that phase of thegiant’s growth.

Northern retailingheavyweight, Morrison’s, continues it drive into the south with at least ninenew superstores opened in the last quarter. It will continue to catch up with the competition in the conveniencestore battle, only two opened so far this year. A new regional distribution facility at Bridgwater will pick up loadthough the next quarter.

J Sainsburyhas a healthy profile at this point with profits showing a 7% increase tonearly £400 million. Having beenacquisitive in their portfolio development they have added 596,000 sq ft of new space, including seven new stores, 15 extensions and 37convenience stores, which bring the convenience stores total to 400. Their property value has increased to anestimated £10.9 billion, as at 1 October 2011. Yield has remained stable at 4.9%.

Asset Strategy or Asset Lethargy?

2011-11-11T10:30:00.000Z

JamesAlexander Consultants are helping bring clarity to the challenges the assetportfolio’s of their clients bring. Determining the relevance your owned or leased assets has to yourbusiness and its long term effect is fundamental to ensuring you have thecorrect profile in place. Planning andmanaging the utilisation of those assets and their place in your business isour speciality.

JamesAlexander Consultants are expert in assessing your portfolio and, with you,determining a strategy to develop the correct balance of assets, theirrelevance and performance for you. Wedevelop, plan and implement the strategy, leaving you to focus on core activityand opportunity.

Ourfocus is to maximise the opportunity your built and land assets brings to yourbusiness whilst minimising the liabilities. Get in touch with us to see how we can help you address lease relatedproblems, acquisitions or disposals and help bring your portfolio into line foryour business needs.

eMailus on innovation@jaltd.co.uk or seeour contact page for our numbers. Welook forward to speaking with you.

Empty Homes to Benefit the Homeless

2011-11-02T09:30:00.000Z

The forthcomingChristmas period and its attendant celebrations will once again highlight the needs of those who do not have the security of their own roof over their heads. The plight of those who are homeless orsharing accommodation that is unsuitable for their needs will undoubtedly bebrought to light.

Communities MinisterAndrew Stunell has said that that it was a top Government priority to bringempty properties across the country back into use, and ensure these areavailable for people in need of a new home.

Mr Stunell said:

"The number ofempty homes in this country is a national scandal. There is a clear andpressing need for new homes in this country, yet for every two families thatneed a home there is one standing empty”.

The recent HousingStrategy included an additional £50 million to help areas with the worstconcentrations of empty properties, whilst the Coalition is also consulting ongiving councils the power to charge an Empty Homes Premium - worth up to 50 percent of council tax - on properties that have been left vacant for more thantwo years.

Housing Minister, GrantShapps (@grantshapps) has Tweeted his concerns for the homeless and the actions that can betaken to help address this situation and the returning of empty property ontothe housing stock can only be a move in the right direction.

Councils, housingassociations and voluntary groups can apply for a share of £100 million Governmentfunding to help bring more empty homes back into use. Latest figures show that over the past yearthe numbers of long-term empty homes has fallen by over 21,000 - the biggestyear-on-year drop since 2004. Last year,councils delivered 159,000 properties - both newly built homes and empty homesbrought back into use.

$10 BIllion in the City & West End

2011-10-26T10:23:00.000+01:00

City investment advisors Gesham Down Capital Partners (www.greshamdown.com) calculate that there is more than £6.5 billion of commercial property for sale across Central London: around £5 billion in the City and £1.56 billion in the West End.

Gresham Down predict markets polarising between equity and debt investors, with overseas investors - predominantly equity investors, who currently represent almost half of buyers in London, dominating the market. They estimate banks are trending towards selling or encouraging their borrower clients to sell and this will accelerate "with further stock being added from owners looking to take profit on purchases made within the past 2 years and from maturing loans within CMBS portfolios". The number of active lending banks has fallen from 25 to no more than 10-15.

Gresham estimates that there are currently £1.43 billion of investments under offer in the City and £1.08 billion in the West End. Turnover for the year stands at £4.17 billion for the City and £3.33 billion for the West End, an increase of approximately one third compared to 2010.

Equity buyers are recommended to focus on sales from buyers who have to sell, whilst vendors are being told to focus on equity, rather than debt-based buyers.

Storm clouds over Segro

2011-10-18T09:21:00.000+01:00

Segro, the industrial landlord with property in the UK and Europe, have reported income down 6.1% at £135.5 million ( 2010: £144.3 million), with pre-tax profit down 56.6% to £64.6 million (2010: £148.9 million).

Having taken over the ailing Brixton two years ago, Segro has been offloading the lower quality properties from the portfolio. The UK accounts for about 65% of the remaining portfolio value, of which 92% is in London and the South, with 44% of the UK portfolio value in London, predominantly around Park Royal and Heathrow. A recent disposal of 6 ex Brixton Estates multi-let freehold industrial estates at various locations across London has netted Segro £38.2 million. The purchaser is the Industrial Property Investment Fund (IPIF), managed by Legal & General Property and the deal includes Brent Crescent, Park Royal and Abbeydale Road, Park Royal as well as properties in Poplar and Haringey

Ducati cross the line at Silverstone

2011-10-05T20:15:00.002+01:00

Silverstone has been undergoing major redevelopment in recent years and this has continued with the announcement of Italian motorbike specialist Ducati opening a brand new headquarters building at Silverstone, which is to act as its British operations centre. The purpose built facility includes some 8,000 ft² of office accommodation as well as warehousing and a workshop.

Student Accommodation Update

2011-09-20T12:35:00.008+01:00

The spotlight has turned on the provision, or lack of it, of student accommodation across the

. The combination of student numbers and academic establishments that are growing in popularity, drive demand for rented accommodation and inevitably some locations will be expected to boom in future in terms of student housing while others will struggle to keep up. Fundamental to this is the quality of the universities a town or city has to offer and this can determine whether it is a good place to buy. Calculating how many students apply to attend an institution as well as how much property there is available for them to use will help answer whether it is a good spot for investment properties. Accommodation close to the university with good transport links should ensure a successful rental with a good return. There are a number of locations in the UK that are experiencing significant difficulties with a lack of student accommodation, not least of which is London which has seen significant change in recent times with overseas students in the city driving the market. University accommodation in London is very undersupplied and investing in and around London universities has become an attractive option for investors. Another hot spot for student accommodation is Brighton which has a student population of over 22,000 and with the University of Brighton not being able to guarantee all 1^st year students live in accommodation, competition is hot for each available room. Specific websites and University services are set up to help deal with the yearly outfall from on site shortages.

Quintain Estates recently sold it's completed student accommodation scheme at Elephant & Castle in London for £34 million today. Known as Dashwood Studios, located on Walworth Road, adjacent to Elephant & Castle tube station, Dashwood provides 232 student studios and opened for this academic year. It is 100% let at rents of between of £220 and £280 a room. The asset is managed by Fresh Student Living.

Rise in numbers of residential rental properties

2011-08-29T14:32:00.002+01:00

The number of residential properties in the private rented sector has risen again this year. Approximately 17%, or nearly 1-in-6 of all British houses now belong to the private rental sector, reflecting an increase of 229,000 properties on last year.

Despite mortgage difficulties the opportunity to secure bricks and mortar investments remains as quintessentially British as drinking tea. The rise continues, fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and homeowners deciding to let their property and, in some cases move into private rented accommodation themselves.

National Planning Policy Framework

2011-08-17T17:34:00.038+01:00

The Planning Minister, Greg Clark has published the draft National Planning Policy Framework for consultation. Key objectives of the reforms are to make the planning system less complex and more accessible, and to promote sustainable growth. As well as discussing sustainable growth the consultation document addresses its brief under three headings: Planning for Prosperity, covering business and economic development, transport and communications; Planning for People, covering housing and Green Belt issues and Planning for Places addressing climate change and the natural environment.

The consultation is open until 17th October 2011 and the government is holding a series of public planning reform events during September in London, Leeds, Birmingham and Bristol.

PFI to cost additional £20 Billion

2011-08-12T07:49:00.011+01:00

The much maligned Private Finance Initiative scheme is under further attack as it is revealed existing schemes will cost and additional £20 Billion to finance. The money is to cover the extra borrowing costs for the current 700 schemes to run hospitals, schools, prisons and other public sector projects, currently valued at £53 Billion.

The Treasury is at odds with the Commons public accounts committee, insisting that PFI was only used where it proivides best value for money, a message that the public accounts committee spokesman, MP Richard Bacon, does not believe reflect the current situation.

Norwich's Westlegate House goes to Soho

2011-08-05T11:00:00.048+01:00

An important development in the commercial property marketplace in Norwich has taken place this week with the announcement of the sale of Westlegate House. The 11 storey tower building, considered by some to be the ugliest building in Norwich (rather harsh) has, however, stood empty for the past 15 years and this has done nothing to enhance its aesthetic appeal. The property was on the market for £1 million, and unconfirmed reports suggest it was acquired for a lesser sum than this.

The tower has been bought by Norwich based FW Properties and London based Soho Estates, though a newly created joint venture vehicle called Westlegate Developments Limited. This is an interesting acquisition for Soho estates, not only due to the nature of the building itself, but also as it represents their first foray outside the capital. Famed for their ownership of Ronnie Scott's Jazz Club, Soho Estates is Chaired by former Mayorial candidate for London, Steven Norris. The deal also represents the first acquisition made by FW Properties, which is run by Ian Fox and Julian Wells and based in Prince of Wales Road.

The redevelopment proposals for this building will generate great interest in a number of areas of the local community. The City Council has planned for some time to improve the general appeal of the area, removing traffic flow from the vicinity being one of the objectives. The Norwich Society has strong views on the proximity and design of the tower in relation to the adjacent All Saint's Church and a thatched cottage, concerns that were presumably not uppermost in the mind of the City's planners, when the design was approved without discussion in 1959.

As a spokesman for the Norwich Society says, we await further developments with bated breath....

Harry Potter Stars' Invest in Property

2011-07-22T11:44:00.002+01:00

The young stars of the Harry Potter movie franchise have been spending their respective wealth by investing in property in the UK and abroad reports http://www.primelocation.com./ Harry Potter, in the guise of Daniel Radcliffe, has eschewed the attractions of Privet Drive and is said to have spent a tidy £11.2 million on investment properties, including a £3.5 million penthouse apartment overlooking the Hudson River in New York.

Rupert Grint who played the irrepressable Ron Weasley, has spent more than £9 million on three addresses and, whilst all are believed to be in the UK, it is thought The Burrow is not amongst them, whilst the very lovely Emma Watson has maintained her muggle roots and divided her investment portfolio of undisclosed value between Britain & France.

No details of the acquistions are available but it has to be assumed that they will be predominantly residential, rather than commercial investment properties.

Harry Potter and the Deathly Hallows 2, the last film in the series, was released in the UK on July 7th.

The Property Empire of Satya Sai Baba

2011-07-15T10:41:00.011+01:00

Following the death of Indian Guru and businessman Satya Sai Baba in April this year there has been much speculation about the future of the assets of his empire, including the vast property portfolio his organisation controlled.

The Guru who was always a controversial figure, famed for performing spectacular materialisations, was worshipped by millions of followers around the world and was said to have ammassed assets amounting to between $10 - 25 billion. Certain of the assets based in India are now managed by an Indian based trust but this does not extend to any assets outside the continent. The Trust manages two hospitals and a University amongst others, and the funds to continue to run these are provided by the interest accrued on the estimated $190 million cash reserves the trust controls. The Goverment in Andhra Pradesh has asked the Trust to provide details of these various assets.

Outside India there are thought to be 1,200 Satya Sai Baba centres in 114 countries and countless other properties around the world about which little is known. Undoubtedly Sai Baba's educational, charitable and philanthropic work will be continued by his followers for many years to come, but the task of unravelling the complex dealings of his empire may prove to be a challenging one.

New Development agreed in City

2011-07-05T12:17:00.004+01:00

A 500,000ft2 office development in the City has taken a significant step closer to reality with the granting of consent to the scheme by the City of London Planning and Transport Committee. Hammerson’s 121 & 123 London Wall Place development will require the demolition of St Alphage House and will be built out in two towers, rising to 16 stories and will incorporate landscaped roof gardens, as well as extensive open spaces around London Wall and St Alphage's Church Tower , which remains.

Further bridges will be added to the Barbican’s famous highwalk system, which is retained, allowing easy access to all parts of the City

The scheme will prove a tricky project to undertake as the site is relatively constricted and is situated in the heart of the Barbican, which is well populated with local residents, many of whom are high profile.

It is expected the site will be built for completion in 2014 with full occupation to be achieved in 2015.

http://www.hammerson.com/

Maidenhead site in British Land grab

2011-06-30T22:29:00.005+01:00

Grenfell Island, a road locked office and leisure complex in the centre of Maidenhead, Berks. has been acquired by British Land in what can be seen as a pre-emptive strike in the great Crossrail dash. Grenfell Island is ideally situated opposite the rail station in Maidenhead and comprises some 113,000ft² of high quality office space together with a cinema and health club. British Land purchased the 9.5 year unexpired lease term from the private vendor for £75 million. The building is let to Hutchison 3G UK Ltd, and is the UK headquarters of Hutchison Whampoa Ltd, a telecommunications and data services provider.

Maidenhead is at the western end of the new Crossrail line, which, when completed, will link the town with Heathrow, the West End, the City and Canary Wharf with high frequency fast rail services. Having endured a period of slow decline on recent years it is hoped and anticipated that this will be the first of many such acquisitions and developments that look to cash in on the capital growth that the advent of the new line is hoped to bring.

The Crossrail project carries a £15.9 billion budget and the current programme sees services starting to run in the central section in London following the completion of the main infrastructure works at the end of 2018, with the outlying services following in the months after. The project will see the implementation of many innovative engineering and technical solutions and programmes. There are also many other Health & Safety initiatives, including specialised training for over 4,000 lorry drivers to highlight the skills required to navigate the capital’s roads.

Nuclear New Build UK Sites Announced

2011-06-24T04:05:00.001+01:00

The Government has released details of the locations for the sites of the next generation of new build nuclear power generating stations.

The locations are at Bradwell in Essex, Hinkley Point, Somerset, Oldbury in Gloucestershire, Sellafield in West Cumbria, Sizewell in Suffolk and Wylfa on Anglesey, Hartlepool, Teeside & Heysham in Lancashire. Each if the proposed sites is adjacent to an existing licensed nuclear site owned by either the Nuclear Decommissioning Authority (NDA) or British Energy (BE). During 2009/2010 the Government instructed that surplus land adjacent to licensed sited that were in public ownership be disposed of, netting a very tidy sum for the public coffers and it is anticipated that this land will form part of the new build programme.

The development of new power generating capacity for the

is essential as by the end of the decade a significant proportion of the existing capacity will close, indeed by December 2017 there will a significant downturn in output as the generating capacity of some of the older generating stations is scheduled to come to an end.

Time passes slowly in the nuclear industry and the announcement of the sites is but the first step in the construction and commissioning of a nuclear power station. There is the not insignificant challenge of tackling that other leviathan that is the planning process. It is assumed that applications will come under the auspices of the Major Infrastructure Planning Unit, although how long this process will take is debatable. With the huge numbers of interested parties involved the hoped for swift and efficient planning system may be stretched to the limit.

Outsourced Services Sector

2011-06-21T20:18:00.000+01:00

The Business Services Association (http://www.bsa-org.com/) has released details of a report prepared by Oxford Economics relating to the outsourced services sector in both the public and private sector. It is reported that the outsourced services sector in the UK now has an annual value of £207bn, equating to approx. 8% of the UK economy.

Defined as being services provided under a time bound agreement, with some element of delegated authority and which typically in the past would have been provided by an organisation's employed staff, the outsourced services sector now rivals the financial services sector in terms of size (the financial services equates to 8.1% of the UK economy).

The range of services falling into this category is vast and includes waste management, call centre operations, IT and data services, facilities management services and real estate and asset management provision. The sector accounts for 10% of the total workforce, with in excess of 3 million people employed in the sector, nearly 600,000 engaged in property management related activities including cleaning and maintenance alone.

The sector makes a significant contribution to UK plc with £14bn a year being paid in corporation tax, employee NI contributions and business rates with a further £21bn coming from employee income tax and NI.

Secondary PFI Market

2011-06-17T11:00:00.002+01:00

The BBC Business website ( http://www.bbc.co.uk/news/business/ ) reports that there are significant concerns that HM Treasury is failing to monitor PFI projects adequately and that excessive profits have been made by organisations involved in the PFI market. HM Treasury records do not reflect the billions of ponds of profit made by companies by selling on their equity shares in PFI projects on the secondary PFI market. These concerns regarding the transactions and those surrounding the lack of information at HM Treasury come as two parliamentary committees are convened to take an in-depth look at the PFI.

The Treasury Committee is hearing evidence in connection with its enquiries into the future of PFI, the objective to determine whether PFI has represented value for money for the taxpayer. Shortly after the Public Accounts Committee will investigate what can be taken from the experience of the roll-out of PFI and what improvement could be made for any future projects that may be undertaken.

Opinions run high on both sides of the discussion, with a number of members of Parliament declaring that the PFI process must be clear and transparent with levels of profit reflecting genuine return on investment and, of course, demonstrating good value for money for the public purse. The Public Private Partnership Forum, an industry body for the PFI industry, has said the profits made were a fair reflection of the risks taken on by the financiers and builders of the projects.

More than 700 hospitals, schools, prisons and other public sector projects have been built under the PFI scheme.

Lights out in Italy?

2011-06-14T06:28:00.006+01:00

The Italians have voted by a 94% majority against the introduction of nuclear power generation to the country.
A pretty resounding rejection of this proposal bucks the trend in Europe and leaves the question as to how their future requirements will be met.

Govt to release land for building

2011-06-10T05:48:00.002+01:00

The Government plans to release 1,000s of acres of previously developed land for alternate usage. It is expected that by the Autumn this year each Department with significant surplus land holdings will produce plans detailing those areas to be made available. This Central Goverment initiative is expected to be followed by local Councils, many of whom also retain surplus land banks.
The potential impact on the housing sector is anticipated to be significant, with many in the sector already welcoming this initiative.

Planning Enforcement Notices

2011-05-22T20:28:00.000+01:00

We hear from our friends at Burgess Salmon (www.burgess-salmon.com) of a ruling by the Court of Appeal which means there are potential additional penalties awaiting those who persistently flout the requirements of Local Authority Enforcement Notices. The case in question concerns the operation of an airport park and ride scheme with no planning permission. Despite the serving of an enforcement notice, an unsucessful appeal against it and two sucessful prosecutions for failure to comply, the park and ride scheme continued in operation for several years. The Court of Appeal confirmed that the Proceeds of Crime Act 2002 (POCA) could be applied to any benefit against those who consistently refuse to comply with the requirements of enforcement notices. The Court of Appeal upheld confiscation orders made by the Crown Court against the operators, even though it was determined that the operators did not derive any personal gain from the endeavour. It was determined that what happened to the benefit after it was obtained did not form part of the statutory test. A warning indeed!

Green Construction

2011-05-14T17:38:00.000+01:00

There are numerous initiatives to improve the "green" credentials of the construction industry. James Alexander Consultants have specialist experience and expertise in the application of off-site construction methods, especially in steel frame modular applications. Sister company SystemBuild provides consulting advice on the most appropriate and effective off site manufacturing solution.

Click on this link below from the BBC's News service to see what is being developed in concrete technology. See the blackboard (yes, blackboard, not interactive whiteboard!) behind Prof Franz-Josef, he has been busy!

http://www.bbc.co.uk/news/business-13016593

Premier League!!

2011-05-05T05:37:00.000+01:00

Congratulations to Norwich City for a fine win at Portsmouth, putting them back into the Premier League.

Follow the Canaries at http://www.canaries.co.uk/

Bury High Level Nuclear Waste?

2011-04-26T06:13:00.002+01:00

The progress of one of the UK's largest potential construction projects continues. Following the Govt. White Paper, Managing Radioactive Waste Safely, in 2008 the consultation process continues to seek expressions of interest from local communities to host the deep geological storage facility. The facility would contain high activity level nuclear waste in a managed state.
The project is expected to cost in the region of £12 billion and once the site is selected, would take 25 years to undertake all the geological testing, planning and construction before the first batch of waste is received. It is expected that a large number of jobs, as well as other significant socio economic benefits would accrue to the hosting community.

Come on City!

2011-04-15T22:25:00.002+01:00

Great win for the Canaries tonight, 2nd in the Championship, on the way!!

The First Blog!!

2011-04-14T09:23:00.005+01:00

Welcome to the new blog of James Alexander Consultants. We hope to post interesting commentary on all topics in the commercial real estate and property world and, hopefully, generate interesting and informative debate in the process. Let us know your thoughts and views and help to make this an interesting and informative blog.