Pictured: Rupert Young
Birmingham-based Nurton Developments has underlined its
expertise in extracting value from secondary locations, with a deal
in Shropshire.
The property business, has established a reputation over the
last decade, for identifying the potential to make solid returns by
investing in stock which others have passed by.
Now Nurton's development director, Rupert Young, reports a new
letting which demonstrates that its value-conscious strategy still
pays off, even during the most volatile economic conditions.
Spanish conglomerate Roberlo has taken 5,121 sq ft for five
years, on the Harcourt Trading Estate in Telford.
The agreement was based on the asking price of £3.50 per
sq ft, the current benchmark for industrial space on secondary
locations in the region.
"Some people considered Harcourt too off-piste, because there
was a perception that Telford's economy had begun to flag as inward
investment had dipped, but we were convinced it was still a sound
strategic location," recalled Rupert.
"It's located in one of the town's main industrial areas and
access to the national motorway network is excellent, via the M54.
Since we refurbished the estate last year, we have let close to 50%
of the 65,000 sq ft available, which I think is a very decent
performance, especially given the state of the economy."
Matt Tilt, a senior surveyor with Telford-based Bulleys - joint
agents for Harcourt with Andrew Dixon & Co - is optimistic
about future lettings, and says the refurbishment programme has
been critical in attracting interest.
"I'd have to say that Harcourt presents itself well now. The
People's Dispensary for Sick Animals took 20,500 sq ft there, to
store items for their charity shops. A lot of locations were eager
to sign them, but they were most impressed by Harcourt," he
said.
"It was the same story in Roberlo's case. They were relocating
from another site in the area, and didn't want to move too far, so
there was a lot of interest in them, but they thought Harcourt was
just what they needed, in terms of quality, price and location."
Rupert was understandably pleased to hear positive feedback
about Nurton's refurbishment programmes, but stressed that - as
with identifying secondary locations of potential - such decisions
were always fine judgements.
"It's never easy, even in boom times, to assess how much
investment needs to go into existing industrial stock," he
admitted.
"If you spend too little, the space simply won't let, but if you
spend massive amounts, then you might have to pitch the rents too
high to attract interest, and potential tenants might decide to go
for newer space.
"It's a balancing act, and it's a strategy which requires very
careful fine-tuning to make sure you're always in line with what
the market wants."