Nuclear new build melt down

It has been announced today that RWE Npower and E-On have pulled out of their project to build new nuclear powered generating rectors at the sites in Anglesey and Oldbury, Gloucs.  There is little information at present but this news from the Horizon consortium represents a set back to the UK’s plans for future power generation.

The cancelling of the £15 billion scheme is a significant blow to both local economies but there are hopes that the Government will be able to attract alternate providers.  The UK’s nucear power generating plans are still on course with EDF Energy, who are progressing plans to build in Hinckley in Somerset and Sizewell in Suffolk and the NuGen consortia made up of GDF Suez and Iberdrola who are working in West Cumbria.

Following the Fukushima nuclear accident the German Government announced its decision to phase out nuclear power generation and this is thought to have played a part in the decision by Horizon.

D Day for Planning

Today’s the day.  The new National Planning policy framework will be announced by Ministers at lunchtime.  Following a much criticised consultation process with developers, environmental groups and other during last year, the new framework will come into force immediately.

Opponents of the change are badging the reforms as a “developers’ charter” whilst the Government are confident that reforms will simplify the existing complex and confusing system and help boost growth. 

One of the key points of contention is the definition of what is meant by the phrase “sustainable development”.  Speaking on BBC Radio 4 this morning Planning Minister Greg Clark explained that sustainable development meant that  "If there are reasons, for example if it destroys the environment, if it builds on the green belt, if it builds outside a town centre if it's a commercial premises when you want to keep town centres thriving, then that would not be sustainable, it would not be in the public interest and so it should not go ahead."  The framework also indicates that the default answer for development proposals should be yes, and this is where the nub of the matter lies.

To date the planning process has proved to have been a rather inaccessible matter for most people to engage with.  Part of the objective of the new framework has been to simplify and make the process more accessible.  1,300 pages down to 50, quite a change. There is a perception that this slimming down of the “rules” will allow developers to ride roughshod over local wishes and turn swathes of the greenbelt into housing estates.  Government has given assurances that this is not the case.  However, vocal opponents including the National Trust, the Campaign to Protect Rural England (CPRE) and Friends of the Earth believe this is exactly what will happen and our green and pleasant land will be no more.

Currently 11% of the area of the UK is developed.  It will be an interesting watch to see what transpires from this new framework.

Thames Valley Acquisition completes

Further to the January blog “Reading Acquisition Update” it was confirmed last week that PRUPIM has completed the £22.6 million deal for Energis House, which totals 108,000 ft², together with a neighbouring development plot.  Energis House is the controversial, loved and hated in equal measure, ex Metal Box building, an octagonal throwback to the heady days of the 1960’s with fine views over Reading Gaol.  For over 10 years there has been speculation as to the future of this site, with interest being shown from a number of parties over time.

With Cable & Wireless in occupation until July 2015 and planning permission in place for development of 370,000 ft² of office space, attention (and speculation) will now turn to the timing on future development usage for the site.  Next door, One Reading Central is complete, and Two & Three Reading Central are now in the pipeline, so the potential for the site is significant.  The opportunity for the creation of a centrally located business hub is significant and further developments will be keenly watched.

Review Time

James Alexander Consultants are helping bring clarity to the challenges the asset portfolio’s of their clients bring.  Determining the relevance your owned or leased assets has to your business and its long term effect is fundamental to ensuring you have the correct profile in place.  Planning and managing the utilisation of those assets and their place in your business is our speciality.

James Alexander Consultants are expert in assessing your portfolio and, with you, determining a strategy to develop the correct balance of assets, their relevance and performance for you.  We develop, plan and implement the strategy, leaving you to focus on core activity and opportunity.

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

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.

News from across the Pond

Are the winds of change for good blowing for parts of the commercial property sector in the USA?  It was reported at the weekend that during the last quarter of 2011the US banking fraternity increased their lendings for commercial real estate projects, the first increase in volume in 2 years.

This is seen as a clear signal that the US banking sector is starting to realise its return to healthy trading, in part supported by Government actions following the 2008/9 crisis in allowing the extension of loan maturities, thus allowing banks time to bolster their own finances and commercial real estate values to rise.

Banks leading the return to lending include Wells Fargo & Co, Bank of America Corp, U.S. Bankcorp and JPMorgan Chase & Co.  Default rates are at the lowest for three years, including multi-family units and this, combined with an slight increase in GDP to 3% is giving a feeling of optimism in some quarters; there is great hope abroad that this heralds a more positive outlook. 

Meanwhile, in the UK……..

Govt. Acts on Empty Homes

Easing the pressure on families who have inadequate housing should be a primary focus for any Government.  Those who are fortunate to be able to close the front door of their own home at the end of the day cannot be too grateful for this privilege.  Helping more families to be able to do this is a key objective for any society.

At a time when house building is bumping along the bottom in terms of new home starts the Government has increased its initiative to energise local councils into refurbishing and bringing back into use empty homes.

In the UK there are more than 700,000 empty homes, over 280,000 of which have been unused and under-maintained for six months or more.  Empty homes that can often attract anti-social behaviour, vandalism and fly-tipping to neighbourhoods and depress the values of other homes in the area.

Communities Minister Andrew Stunell offered £50 million Government funding to areas with clusters of empty homes which have good market prospects, such as access to transport links, but require intensive refurbishment to return them to a liveable standard.  Administered by the Homes and Communities Agency, councils who wish to apply will have to match the funding they receive - bringing the total investment to £100 million. Every successful bid must have strong local support and aim to bring at least 100 homes back into use.  Mr Stunell said:

"It's shocking that hundreds of thousands of houses sit unoccupied while people across the country are in need of a home of their own”.

Councils will also be rewarded by the application of the New homes Bonus scheme measuring the total number of long term empty properties.