Post on 19-Mar-2018
transcript
Business Strategy Away Day
Board presentation
29th April 2016
Scrutiny Committee
Arch Annual Review 2015/16
2015-16
2015-18 Corporate Strategy framed around
six key programmes that support the delivery of the Northumberland
Economic Strategy
Place Business People
Investment
Arch
Commercial
Arch
Economic
Growth
Development
Estate
Management
Regen &
Infrastructure
Inward
investment
Growth &
enterprise
Northumberland Economic Strategy
Committed to Growth
“Arch will have a key role to play in delivering and managing
commercial and industrial property, providing targeted sector
and business support, completing the superfast broadband
programme, and leading the county’s inward investment effort.
Arch’s profit-for-purpose business model will generate
operating surpluses that will be used to fund our discretionary
support”.
Programme 1: Property Investment
www.archnorthumberland.co.uk
Our investment in commercial and residential
property and land has seen the asset value of the
Arch property portfolio increase to £138m*. Highlights
for 2015/16 include:
• Development of a scheme in conjunction with our
joint venture partner, Northumberland Estates to
improve the retail offer in Prudhoe.
*Includes WIP
Property Investment
www.archnorthumberland.co.uk
• The acquisition of the Tesco site, Bedlington.
• The acquisition and refurbishment of the former
North Eastern Co-op building, Blyth.
• The completion of 28 homes for private rent in
Seaton Delaval.
Property Investment
www.archnorthumberland.co.uk
• The acquisition of the freehold of Wansbeck
Business Park including 14 industrial units, 12
acres of vacant employment land and Esther
Court.
• The acquisition of 16 individually designed
units at Bebside Hall, Bedlington.
• The acquisition of the Arefco HQ on Jubilee
Industrial Estate, Ashington.
Developing Communities
“Northumberland’s urban centres are of primary importance to
the economy as service, cultural and commercial hubs.
The priority for Northumberland is to see place specific
investment in all of our key towns utilising the assets and
partnerships in place locally, this includes a basket of
measures appropriate to the locality including economic
development, strategic infrastructure, business facilities,
housing led renewal, public realm and transport related .”
Programme 2: Development
www.archnorthumberland.co.uk
Arch continues to make significant progress against our spatial
priorities of Ashington, Blyth and Berwick. Highlights for 2015/16
include:
• Portland Park, Ashington
• Commissioners Quay, Blyth
• Walkergate and Cowe Buildings, Berwick
www.archnorthumberland.co.uk
Development Arch continues to lead on the development of the £74m
Ashington Investment Plan
which includes a new leisure centre,
highway infrastructure, retail developments and the recently
approved plans for a new
headquarters for Northumberland County Council..
Development Arch has continued to progress the masterplan for Commissioners Quay in Blyth.
Focusing on delivering the residential and hotel elements on adjoining plots.
www.archnorthumberland.co.uk
Development Arch continues to lead on the development of the £74m
Ashington Investment Plan
which includes a new leisure centre,
highway infrastructure, retail developments and the recently
approved plans for a new
headquarters for Northumberland County Council..
Development Arch continues to lead on the development of the £74m Ashington Investment Plan
which includes the new leisure centre, highway infrastructure, retail developments
and the recently approved plans for a new headquarters for Northumberland County
Council.
www.archnorthumberland.co.uk
Development To the north of the county, Arch’s efforts in Berwick are focused on the creation of
a new commercial hub in Walkergate and the refurbishment of the Cowe Buildings
for mixed retail and residential use.
Development
www.archnorthumberland.co.uk
In addition to our spatial priorities we concluded a
number of developments on site and progressed
with a number of new ones. Highlights for 2015/16
include:
• Delaval Park, Seaton Delaval
• Dolphin Pub demolition, Newbiggin-by-the-sea
• Industrial space, Wansbeck Business Park,
Ashington and Cramlington
• Poundstretcher, Blyth
• Photovoltaic Panels, Ashington
• Ashington Football Club
Housing quality and choice
“Housing is therefore a key factor in the county’s economic
development particularly in terms of ensuring sustainability in
communities, providing for a growing labour force and the
wider economic impact of construction and enabling
infrastructure linked to development.”
Development
www.archnorthumberland.co.uk
One of our greatest achievements this year has been
the creation of a homes for sale division – Ascent
Homes with construction already underway on 100
new properties across Alnwick, Blyth and Newbiggin.
Through our investment in house building activities,
using our local subcontract supply network £3.6m
has been generated into the Northumberland
economy, provided work for 146 people and created
16 new jobs which includes three apprentices.
www.archnorthumberland.co.uk
Programme 3: Estate Management
www.archnorthumberland.co.uk
Having extended its estate portfolio to over 100,000m2 of
commercial and industrial floorspace and over 900
residential units, Arch’s focus is on managing its assets
more efficiently and improving the quality of service
provided to tenants.
The results of our efforts in managing the estate more
effectively can be seen in a number of ways.
• Increased occupancy rates
• Reduced tenant arrears
• Increased profits from the property portfolio
• Customer satisfaction scores
Business locations
“The dilemma is how to stimulate private sector investment,
modernise existing stock and create attractive, modern
business locations in a situation where demand remains
uncertain, the private sector is reluctant to act, and grant
funding is much reduced and access is fiercely competitive”
Investment in key business locations
• Current masterplanning will create an additional 17,450 sq m of
commercial floorspace. Potential to create 460 new jobs.
• Development of the eastern expansion land will provide a further
19,000 sq m of commercial floorspace where up to 501 additional
jobs could be accommodated.
New industrial units at Cramlington and Ashington
• 27 Northumberland based sub-contractors worked on-site. Total
expenditure on Northumberland sub-contractors was over £600k.
• Based on the floorspace created up to 29 jobs can be
accommodated in the units.
Programme 3: Estate Management
www.archnorthumberland.co.uk
Current occupancy rates:
• Homes 93%
• Commercial 96%
• Workspace 76%
Customer satisfaction rates:
74% good, very good or
excellent
71% good, very good or
excellent
93% good, very good or
excellent
We have reduced rent arrears (24%) and increased profits (34%) from
the property portfolio.
Estate Management
www.archnorthumberland.co.uk
On the commercial side of its business, Arch has
improved the quality and efficiency of the portfolio
through the completion of a capital works programme
and the installation of solar PVs.
• Arch invested £380,000 on the installation of solar
PVs on three of our commercial properties in
Ashington generating 59,000 kWhs in energy and
generating an estimated income of £8,000.
• Arch invested £147,000 on capital works across a
newly acquired commercial portfolio contributing to a
25% increase in occupancy levels since
acquisition.
Estate Management
www.archnorthumberland.co.uk
On the residential side of the estate, Arch has used its
Valleydale Mews development in Blyth to pilot an all-
inclusive rental scheme.
Four environmentally efficient homes built using
Trivselhus climate shield system and which come
complete with triple glazing and photovoltaic panels,
have been let on a 12 month pilot period where tenants
have saved around £580 over the course of the year
based on national average utility bills.
Programme 4: Project Management
www.archnorthumberland.co.uk
As well as being a developer and investor in its
own right, Arch has also delivered projects on
behalf of Northumberland County Council.
Highlights include:
• The construction of the £21m Ashington
Leisure Centre.
• Progression of the £74m Ashington
Investment Plan.
• The acquisition of the Tesco site, Bedlington
and launch of a design competition to secure a
lead architect to deliver a mixed use scheme.
• Development of a circa 1,500m2 office
building at Walkergate, Berwick.
Project Management
www.archnorthumberland.co.uk
Ashington Leisure Centre
• Arch Development Projects Ltd acted in the capacity of
development managers on behalf of Northumberland County
Council to deliver the project from inception to completion.
• The building includes a six-lane, 25 metre pool, and a six-
court sports hall with extensive floor space and equipment for
gymnastics and regional standard cricket.
• Other facilities include: fitness gym, luxury spa, library, sort
play area and café.
• Winner of the prestigious Royal Institute of British Architects
North East Award, the Leisure Centre is a community facility
that sets a high benchmark for design excellence and marks
the beginning of the regeneration of the town centre.
• An Economic Growth Team has been established.
• Developing Arch’s existing services to encourage and
attract investment and re-investment into Northumberland.
• A strategic account management programme underpins a
suite of business engagement activity to develop
relationships and understand growth opportunities and
barriers.
• Through our activities in 2015/16 the Economic Growth
Team have contributed to the following:
• £90m leverage of private sector investment into
Northumberland
• Creation of 200 new jobs in Northumberland
Programme 5: Inward Investment and
Account Managed Companies
www.archnorthumberland.co.uk
Programme 6: Business Growth and
Enterprise services
www.archnorthumberland.co.uk
The Economic Growth Team has been and will continue
to be responsible for managing and delivering a portfolio
of business growth and enterprise programmes across
Northumberland. Highlights for 2015/16 include:
• Closure of the following business growth and
enterprise programmes:
– Rural Growth Network (Pilot) Programme
– iNorthumberland Business Support
– The Regional Growth Funded Business
Growth Programme
– Business Northumberland Programme
• Delivery of the new Rural Growth Network
Programme.
• Application for European Funding to support the
delivery of the new Business Northumberland
programme.
Programme 6: Business Growth and
Enterprise services
www.archnorthumberland.co.uk
Private Sector Investment: £4.4m
Public Sector Investment: £3.49m
Jobs Created / Safeguarded: 262
Businesses accessing support: 597
RGN Current Programme • £6m Funding secured from North East LEP –
Growth Deal • Capital funding only • Delivered by Arch across rural
Northumberland, Durham and Gateshead
Rural Growth Network
RGN Grant Funds
Two funds available
Strategic Economic Infrastructure Fund
• Multiple units (industrial/managed workspace/office accommodation)
• Enterprise hubs – multiple business space and ‘smart working’
space
• Key strategic tourism assets
• Infrastructure works needed to unlock employment development
sites where an end user is in place
• 40% intervention rate. Private and/or public match accepted
Rural Business Growth Fund
• Costs to improve business premises to expand business or
purchase capital plant and equipment. Grant up to £60k.
• Sectors : Environmental products, food and drink production,
knowledge intensive business services, (scientific and technical services), manufacturing and niche tourism projects.
Questions?