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Cheshire and Warrington property positive despite two-year decline

Investment in Cheshire and Warrington’s property markets fell for the second consecutive year in 2012, although 38 transactions across the year generated more than £127m in the region.

Despite a continued fall in the market, Cheshire and Warrington generated in excess of £21bn GVA, which is equivalent to half of Wales and three quarters of Northern Ireland.

Information was released on Thursday at the Cheshire and Warrington Property Review, which gave a positive and optimistic view of the region’s market.

Warrington was cheered after being placed as the most improved ‘city’ in Britain last year, while it also came in second to Milton Keynes as Britain’s best location for business investment.

The review showed that 3.2m sq ft of industrial and logistics space was taken up in 2012, while there was a 20% rise in the level of office take-up in comparison with 2011.

Key deals included catering firm Brakes’ commitment to open its Northern operations site at Warrington’s Omega development, which is currently under construction.

Jaguar Land Rover took over 37,500 sq ft of space in Ellesmere Port, while Brockton Capital LLP invested £29m into the Riverside Retail Park in Warrington for just under 15,000 sq ft.

Looking ahead, the report said: “At a sub-regional level the Cheshire and Warrington LEP continues to be given more powers and resources as Government directs post-Regional Development Agency responsibilities to LEPs.

“The Heseltine report […] refers to the Atlantic Gateway initiative, which Cheshire and Warrington lies at the heart of.

“It concludes the attraction of significant overseas investment into the Atlantic Gateway should be a national priority for UKTI and Government.

“With potential for more than 250,000 jobs; £14bn new investment and an annual economic impact of £6bn it presents a major opportunity to grow the sub-region’s economy.”

The report also welcomed plans for the Government’s HS2 rail service, which it said will provide easy access for businesses and residents in the north east of Cheshire and Warrington.

Ian Pritchard, development director at logistics firm, Goodman said: “[This report] arrives at a time when high demand and a shortage in supply of good quality industrial and logistics buildings in the North West market has caught the eye of investors with a previous southern bias.

“We look forward to the continued expansion of its investment activity in the North West and Cheshire in particular.”

Peter Crompton, from property firm and sponsors of the report, BE Group, added: “Our property report findings clearly reinforce Cheshire and Warrington’s position as the power-house of the Northwest economy.

“Both office and industrial are up on the previous year, and with industrial take up at 3.2 million square feet Cheshire and Warrington has secured 25% of the entire North West industrial property sector.

“And looking ahead, prospects for 2013 suggest a continuing upward trend in industrial, investment and office sectors. Industrial deals already signed in Warrington and Winsford alone equate to half the business generated last year.”

This was posted in Bdaily's Members' News section by Miranda Dobson .