2012 KENT PROpERTY MARkET

THE ANNUAL GUIDE tO INVEStMENt & DEVELOPMENt IN KENt

CONTENTS
1 2 5 6 8 Welcome Property market Economy Business park performance Office performance

10 Industrial and distribution performance 12 Retail performance 14 Leisure and tourism performance 16 Rural performance 18 Residential performance 20 Inward investment 22 Regeneration 29 Green infrastructure 30 Contributors 32 Strategic developments 35 Contact details 36 Acknowledgements

Hermitage Court, Maidstone (credit Gallagher Group)

KENT PROPERTY MARKET 2012

WELCOME
Welcome to the 21st edition of the Kent Property Market Report, produced by Kent County Councils Regeneration & Economic Development division, Cluttons LLP and Locate in Kent. The report reviews activity and major property deals throughout 2011-12, showing that despite the ofce and retail sectors struggling, the retail warehouse sector showed a positive rental growth in 2011 and the industrial market outperformed both the south east and national average. The report also looks in detail at the rural, retail, tourism and residential sectors performance. The economy section reports that although Kent tracks the performance of the national economy, the county is an increasingly favourable business location, beneting from concerted efforts to attract new investment and support commercial growth through the Enterprise Zone at Discovery Park and the 35m Expansion East Kent Regional Growth Fund and soon to be launched Grow for it! East Kent campaign. The regeneration section features current and planned developments across Kent and Medway, focusing particularly on the growth areas of Thames Gateway North Kent and Ashford and also regeneration projects in the coastal towns. The strategic developments pages feature key commercial sites and developments throughout Kent, as well as providing useful contact details and location map. The full report and all previous 20 reports can be accessed via an interactive website www.kentpropertymarket.com. If you would like further information on any of the developments or projects featured please do not hesitate to contact us. For contact details please see page 35. Cluttons is an independent, professional rm of chartered surveyors delivering a wide range of commercial and residential property services including professional and valuation advice, property management, agency and development advice, rating, and project and building consultancy. Kent County Councils Regeneration & Economic Development division is responsible for working with the public, private and voluntary sectors to support Kents economic growth by encouraging and supporting businesses; working closely with specic sectors to promote growth and nding new ways of funding business critical infrastructure and unlocking key sites. Locate in Kent provides a comprehensive, condential and free business relocation and advisory service for all companies looking to relocate to, or expand in Kent and Medway. We hope you nd the report useful and informative.

Kent History and Library Centre, Maidstone

Kent Institute of Medicine & Surgery, Maidstone

Mark Dance
Cabinet Member for Regeneration and Economic Development, Kent County Council

John Wood
Managing Partner, Cluttons LLP

Paul Wookey
Chief Executive, Locate in Kent Ltd

The Foundry, Faversham (credit Quinn Estates)

PROPERTY MARKET
UK Property Market
The UK property market backtracked in 2011 delivering a total return of 7.7%, half of that recorded in 2010. Despite this, net investment was 5% ahead of that seen in 2010, with activity expected to remain consistent throughout 2012. However, while the property sector continues to attract strong interest in London, particularly from overseas buyers, regional markets remain cautious, with the limited activity that does occur coming from well-capitalised property companies and institutional investors. Bad debt portfolios amongst the banks are gradually being released with expectation that supply will increase over the coming year. Nevertheless, with the exception of a limited number of prime markets outside the capital, demand is expected to remain muted until pricing catches up with the realities of the occupier market in which rents are forecast to fall across most property market sub-sectors. This readjustment is anticipated during the remainder of 2012 and into 2013, with the average All Property yield expected to rise. This in turn will dent total returns which are expected to barely reach positive territory in 2012. this is a sharp improvement on the -6.5% recorded in 2010. Despite this, retail yields in the county shortened by 10 basis points over the year to 6.3%, reecting the regional and national trend. The Kent retail warehouse sector fared better in 2011, with positive rental growth of 1.2%. This follows its above average growth of 1.0% in 2010 while rents were still falling at a regional level. A 10 basis point decline in the countys average retail warehouse yield to 6.3% in 2011 is in line with the regional average, with pricing at a similar level to that of the UK as a whole. The Kent industrial market performed relatively well in 2011, with the pace of rental decline slowing to -0.6% from -0.9% in 2010. The county continues to outperform both the south east and national average. Despite this, yields remained stable at 8.1%, failing to experience the inward movement seen across the region and rest of the UK.

Kent Property Market

The Kent ofce sector recorded a further fall in average rents in 2011 of -5.3%, following a -1.2% dip in 2010. The weakness in the occupational market is mirrored across the south east, although the pace of decline at the regional level has slowed. The countys fragile occupier environment was reected in an outward 20 basis point yield movement in 2011 to 10%; a somewhat less robust picture than the south east as a whole. Deteriorating consumer condence and rising vacancy rates on the high streets are taking their toll on the performance of the Kent retail sector. Rents fell by -1.8% in 2011, although

Investment yields
Equities 10 8
% Change a year

UK property total returns

Gilts Property 25 20 15 10 2007 2008 5 % p.a. All property Retail Office Industrial Forecast

6 4

2012

2011

2009

2 0
Dec 2002 Dec 2010 Dec 2004 Dec 2006 Dec 2008 Dec 2003 Dec 2005 Dec 2007 Dec 2009 Dec 2011

-5 -10 -15 -20 -25

2010

Odiam Farm, ?? Boat Yard, Tovil 2 KENT PROPERTY MARKET 2012

Source: Cluttons LLP/IPD/FT

2013

Source: IPD

2014

Proposed Cheriton Road Sports Ground, Folkestone 3

St Georges Place, Canterbury 4 KENT PROPERTY MARKET 2012

ECONOMY
Global economic outlook
The world has yet to see a sustained recovery from the 2008 crisis. Growth in the Eurozone has remained at over the past year, with persistent sovereign debt crises in Europes southern periphery reducing investor condence. While the performance of emerging markets remains stronger, a slowdown in Chinas growth reects weak global consumer demand. Looking ahead, most forecasters anticipate growth in Europe and the United States will remain very fragile in 2012, with below-trend growth sustained into 2013.

UK economic outlook
Growth in the Eurozone Britains largest trading partner is key to the future performance of the UK economy. However, reecting international difculties, further contraction of -0.2% is expected in 2012, with a return to growth of 1.3% anticipated in 2013. Whilst sustained growth remains a national priority, the governments ability to increase output remains constrained by continued pressure to reduce public debt. Despite this challenging outlook, Britain is increasingly seen as a safe haven for investment, retaining a AAA credit rating and a relatively attractive tax and regulatory environment. Interest rates remain at historically low levels, the ination rate is stable at around 2.6% and unemployment is below the levels of previous economic downturns and the Euro area average.

Kent economic outlook

Kent generally tracks the performance of the national economy. GDP growth forecasts are therefore likely to reect how the UK fares in 2012/13, with limited growth ahead. However, Kent is an increasingly favourable business location, beneting from concerted efforts to attract new investment and support commercial growth. Discovery Park at Sandwich has been designated as an Enterprise Zone focused on attracting R&D investment and has been successful in retaining or attracting about 1,000 jobs. Across East Kent, a 35m programme of nancial support to businesses with the appetite for investment and growth has been launched, with the aim of attracting both inward and indigenous investors (see page 28). The county has major strengths in sectors likely to grow in the next few years, especially in low carbon and environmental goods and services, life sciences, advanced manufacturing, the land-based economy and creative and digital industries. In addition, Kent is benetting from major infrastructure investment made in recent years. Services between Ashford, North Kent, East Kent and London on High Speed One have drastically reduced journey times and are set to improve further, increasing the countys long-term attractiveness as a business location. Although economic conditions remain difcult, development plans for Kents regeneration and growth areas in the Thames Gateway, Ashford and the coastal and principal towns are advancing, opening up some of the most signicant investment opportunities in the south east.

Competitiveness indicators
Indicators Gross value added (GVA) per head () Gross median weekly resident earnings () Gross median weekly workplace earnings () Gross disposable household income () NVQ 4 or above (%) - working age* Employee change since 2008 (%)* % Employees in the knowledge economy Annual average unemployment rate (%) New businesses as a % of stock* Business survival rates after 3 years (%)*

Kent 16,641 543.90 491.10 16,192 30.0% -2.0% 14.3% 3.2% 9.7% 63.8%

UK 20,341 503.10 502.60 15,727 31.3% -3.4% 18.4% 3.8% 10.0% 63.0%

Source Date 2009 2011 2011 2010 2010 2010 2010 2011 2010 2010

Figures include Medway, apart from those marked * which are for the KCC area only. Source: Compiled by Research and Evaluation, Kent County Council, July 2012 Growth projections are taken from the Economist Poll of Forecasters, August 2012 averages.

BUSINESS PARK PERFORMANCE

Increased occupancy rates for south eastern business parks witnessed during the rst half of 2011 continued into the latter quarters with a minor surge in activity. However, this has not been sustained throughout 2012 where transaction levels have been subdued. Availability remains stable following the slight rise in early 2011, with levels continuing to be limited by very little new stock coming to the market. Kent therefore continues to perform well in light of the fact that negative rental growth persists nationwide. The Investment Property Databank (IPD) index reports that rental values are down -1.9% year on year across the UK, however the rate of decline appears to be slowing following the -3.1% year on year fall seen from 2010-2011. Kings Hill has had another year of steady lettings with six ofce transactions completing, totalling 6,022m (65,000ft). The largest deal was to Russet Homes, provider of affordable homes and sister company Invicta Telecare, at 32 Tower View, where over 1,635m (17,600ft) has been let on a ten year lease. Vaillant Ltd, established its new centre of excellence and training facility at 6 Alexander Grove occupying 1,069m (11,500ft) and Rail Europe has taken 900m (9,688ft) at 34 Tower View. Rents here, as throughout much of the county, remained static, with the average dropping 1.6% year on year to an average of 231 per m (21.50 per ft). Lease incentives have started to soften a little as landlords aim to ll voids. Elsewhere Merrits Properties Ltd has let 1,618m (17,407ft) at Ashfords Eureka Park to Wooden Spoon Preserving Company on a 6 year lease, while at Chatham Maritime, Wichford Chatham Ltd has let 665m (7,158ft) to the Department of Communities and Local Government (DCLG). Agents on Crossways, Dartford continue to report encouraging volumes of enquiries and viewings; that said, the ofce buildings are still proving more challenging to let than the industrial premises. Poor economic sentiment continues to limit construction, a notable exception coming at the Kent Science Park (KSP) near Sittingbourne. Following on from the success of KSPs Tech1 which completed in 2008, KSPs Tech 2 completed this year to provide two units measuring 1,395m (15,000ft) and 2,325m (25,000ft), the former being placed under offer in February. As an alternative, cost effective refurbishments are taking preference and are undertaken as premises become vacant. KSP witnessed 1,023m (11,000ft) retted for GoResponse earlier in the year, and to the west Liberty Property Trust UK has refurbished 32 Tower View. Liberty is also refurbishing the art deco Control Tower with iconic ofces located above retail and a community space at ground oor level. At Chatham Maritime, planning was agreed in May 2012 for the 650m mixed use Chatham Waters scheme over 10.5 ha (26 acres). Plans include 176,515m (1.9m ft) of ofces, a conference centre, hotel, around 900 homes and a supermarket. At Eclipse Park, Maidstone, increased interest has been reported in early 2012 and planning is in place for four buildings totalling 10,219m (110,000ft). Investment demand for prime stock has been hit hard by the frailty of the economy. Transactions have dwindled to the lowest levels seen since Q1 2009. Yields tightened throughout 2011, falling 0.25 basis points and remain at 6% during 2012, but the gap between new and secondary stock has continued to widen. The long leasehold at Gillingham Business Park was sold in early 2012 for a reported 32.25m to Threadneedle Property Investments reecting net initial yield of 8.6%. The biggest news story this year was the sale of the former Pzer site, Discovery Park, comprising circa 278,800m (3m ft) to a private consortium Discovery Park Ltd. The site, which has Enterprise Zone status, is now home to around 1,000 scientists and other staff bolstered by a handful of recent lettings.
Crossways Point, Crossways, Dartford 6 KENT PROPERTY MARKET 2012

Business park rents

2008-09 350 300 250 200 150 100 50 0 Arlington Business Park, Reading Chineham Business Park, Basingstoke Crossways, Dartford Chatham Maritime, Chatham Stockley Park, Heathrow Eureka Park, Ashford Kings Hill, West Malling 2009-10 2010-11 2011-12

/m2

Source: Cluttons LLP

Lettings
Location 6 Alexander Grove, Kings Hill 200 Eureka Park, Ashford 34 Tower View, Kings Hill 2nd Floor The Observatory, Chatham Maritime Blake House, Schooner Court, Crossways, Dartford 1 Waterside Court, Crossways, Dartford Landlord Kings Hill Unit Trust Quadrant Estates Kings Hill Unit Trust Wichford Chatham Ltd c/o Kenningtons Frogmore Tenant Vaillant Ltd Rift Ltd Rail Europe DCLG Lakeview Computers MBRSS Ltd Size ft2 11,575 10,161 9,688 7,158 5,994 2,293 Rent (pa) Condential 193,000 Condential 112,738 107,892 35,000 Lease Term 10 year 15 year 10 year with break at year 5 10 year with break at year 5 10 year with break at year 5 3 year Agent Altus Edwin Hill, Hanover Green, Knight Frank Martine Waghorn Watson Day, Altus Edwin Hill, Hanover Green, Knight Frank Watson Day Caxtons, Kenningtons Altus Edwin Hill

Sales
Location 23 Kings Hill Avenue, Kings Hill Vendor Develica Purchaser Private Investor Size ft2 14,857 Tenant Vertex Law LLP Price Condential Income 335,788 Yield Condential Agent Watson Day, Bracketts, Lawson and Partners

32 Tower View, Kings Hill (credit Liberty Property Trust)

Unit H, Hermitage Court, Maidstone (credit Gallagher Group)

Kent Science Park, Sittingbourne 7

OFFICE PERFORMANCE
Despite a minor improvement in occupier demand in the south east region over the past 12 months, demand within the county has been very subdued. The over supply of secondary stock in the majority of key commercial locations has resulted in rental levels dropping by 2% to an average of 135 per m (12.54 per ft) from the 138 per m (12.82 per ft) seen last year. Rental growth remains negative at -5.7%, the lowest for 17 years, but is still above the south eastern average of -6.5%, released by Investment Property Databank (IPD) index. The polarisation of demand between the west and the east of the county remains, with the majority of signicant deals limited to established business locations. Turkey Mill, Maidstone has seen occupancy rates reach 95% with over 14 deals in the last 12 months, with new lettings and relocations comprising 20% of the business parks 9,290m (100,000ft). Following this continuing success, Turkey Mill Investments has planning permission to build a further 1,375m (14,800ft) detached building. Designed by Kent based award winning architects, Guy Hollaway, Paul Sandby Court will provide a combination of up to eight Grade A individual ofce suites set around a feature man-made babbling brook water course. Elsewhere, construction of two new speculative ofces, one of only a handful this year, at Gallaghers Hermitage Court, Maidstone are due to be completed at the end of 2012. A pre-let has already been agreed on the 492m (5,300ft) Unit H to a single international occupier for a 10 year term at 204.50 per m (19 per ft); with Unit G-483m (5,200ft) also part let. In Sevenoaks, a letting at BTs 160 London Road to Siemens saw 888m (9,558ft) taken at a rent of 167,256pa on a 10 year lease. This letting represents some retained demand for larger transactions, albeit one of a minority to take place this year. To the east of the county, at Cantium Developments Watermark, Sittingbourne, only a single unit remains. However, in the wake of waning occupier demand planning
Tenant Siemens Focus Vision PFPR Communications Klarity Vision Kent Music Pilgrim Petcare Liverpool Victoria Friendly Society Size ft2 9,558 4,365 3,984 3,715 2,636 2,500 2,116 Rent (pa) 167,265 69,840 77,000 23,776 42,500 32,500 35,972

permission has been secured for the change of use of the remainder of the site to 300 residential units. Whilst the lettings market remains subdued, investment has seen a slight resurgence in some key towns. In Canterbury, 1,394m (15,000ft) of space at Beer Cart Lane and Stour Street is under offer following a change in marketing strategy from leasehold to freehold 12 months prior. Elsewhere, to the south of the town, the former Adscene premises, News Paper House, has sold to a church group. A urry of investment deals in the south east has resulted in yields stabilising at 6%. However, within Kent the lack of quality supply has continued to result in a limited number of investment deals completing, with availability predominantly made up of secondary and tertiary stock. This is of limited interest to investors and subsequently yields continue to rise. The multi-let, 1,227m (13,210ft) Orchard House, Canterbury sold at the beginning of the year for 1.3m, representing a net initial yield of 10.1%.
Lease Term 10 year with break at year 5 5 year with break at year 3 10 year with break at year 5 10 year with break at year 5 10 year 15 year 10 year with break at year 5 Agent Altus Edwin Hill Durlings Watson Day Martine Waghorn Caxtons Watson Day Martine Waghorn Glenny LLP Altus Edwin Hill

Lettings
Location 2nd Floor, 160 London Road, Sevenoaks Longford House, Mount Ephraim Road, Tunbridge Wells 25-26 Turkey Court, Turkey Mill, Maidstone 4th Floor Joynes House, New Road, Gravesend 23-24 Turkey Court, Turkey Mill, Maidstone LGF Enterprise House, Essex Road, Dartford 1st Floor Kestrel House, Knightrider Street, Maidstone Landlord BT Sion Holdings Ltd

Turkey Mill Investments c/o Cedar Harp Turkey Mill Investments Texcel Developments Milroy Developments

KENT PROPERTY MARKET 2012

Sales
Location Vendor Purchaser Size ft Tenant Various including Pitman Training, Zibrant Ltd, Co-Op Insurance Services Price Income Yield Agent

Orchard House, Orchard Street, Canterbury

Merchant Navy Pension Fund

Private individual

13,210

1.3m

138,810

10.1%

BTF Partnership

Clockhouse Court, Bessels Green, Sevenoaks The Old School House, Tonbridge 1 Craddock Road, Canterbury

Ascom Plc / Nutbury Ltd Private investor Chaucer Homecare Ltd

Bishops UK Ltd Private individual Private company

7,137 2,500 1,650

Vacant Vacant Vacant

1.7m 520,000 285,000

Durlings Broadlands Commercial Property Agents LLP Caxtons

Office rents
2008-09 300 250 200
/m2

Office rental growth

2009-10 2010-11 2011-12 15 10 5 0 -5 Kent UK South East

Office average yields

Kent 12 11 10 9 8 7 6 5 Dec 2003 UK South East

% Change a year

150 100 50 0

-10 -15 Dec 1997 Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011

Dartford

Gravesend

Ashford

Sittingbourne

Folkestone

Maidstone

Tonbridge

Sevenoaks

Canterbury

Medway

T.Wells

Thanet

Dover

% Yield

Dec 2003

Dec 2001

Dec 2005

Dec 2007

Dec 2002

Dec 2009

Dec 2010

Dec 1998

Dec 1997

Dec 1999

Dec 2000

Dec 2004

Source: IPD

Dec 2006

Dec 2008

Source: Cluttons LLP

Source: IPD

Dec 2011

INDUSTRIAL AND DISTRIBUTION PERFORMANCE

The UK manufacturing sector has struggled in 2012. A sharp deterioration in operating conditions, due predominately to the ongoing weakness of the Eurozone, has resulted in poor performance in the industrial property sector which is set to worsen in 2012. In Kent demand remains muted but stable, although North Kent, traditionally one of the countys hotspots, has seen depleted requirements this year. Reecting the market backdrop, industrial rents in Kent have fallen slightly. Although the pace of decline has slowed, incentives have softened considerably, with lettings on some schemes at their slowest for two years. Capital values have also experienced further marginal reductions, with occupiers proving cost sensitive. That said, demand for good freehold premises persists where nance is available. In the warehousing sector, demand from distributors has also softened, although supply of suitable space remains limited. Agents across the county report an increase in enquiries from occupiers seeking under 465m (5,000ft) which accounts for nearly 50% of all requirements, while enquiries for over 1,858m (20,000ft) stand at 17%. This is illustrated by Euro Car Parts, which has chosen a unit at Quarry Wood Estate, Aylesford as a store and regional distribution centre for the south east. Meanwhile, all the units at Eurocentre, Faversham, built by George Wilson Holdings Ltd, are let or sold, the majority of which are under 465m (5,000ft). Industrial investments remain popular, although opportunities in the county are limited. On behalf of clients, Cluttons purchased Unit 11 Newtons Court at Crossways, Dartford. The property let to Post Ofce Ltd reected an initial return to the client of 8%, while 20 units forming the Botany Trading Estate, Tonbridge were sold to the Electricity Supply Pension Fund for 10.46m, reecting net initial yield of 7.5%. Land values have held rm over the past 12 months. Salmon Properties has sold one of the last plots of land (0.61 ha /1.5 acres) at Orbital Park, Ashford to SE Ambulance for 675,000 for a 3,066m (33,000ft) unit which has now completed. B&T Plant Hire purchased 0.9 ha (1.27 acres) on the Kent Kraft Estate, Northeet for 1.12m per ha (452,000 per acre). Goodman who purchased 5 ha (12.3 acres) last year has sold 2.1 ha (5.19 acres) to Stapleford Commercial for an undisclosed sum. These transactions reect the fact that most land purchases are completed by end users rather than to speculative developers. That said, Gallaghers will start enabling construction on a 3,530m (38,000ft) development at Brooklyn Park adjacent to Jct6 M20 in December 2012. With 9m eaves and 24 hour access, interest is already reported. Meanwhile, at the rst phase of Quinn Estates Deal Business Park where units start from 90m (968ft), MKM building supplies has leased 1,115m (12,000ft) whilst at The Foundry Business Park in Faversham, Units 9-12 (697m / 7,500ft) were sold to the international design company, Blue Ant. Larger buildings are now being divided where land for new build development is scarce. George Wilson Holdings Ltd bought a 5,110m (55,000ft) unit from receivers at Lakesview, near Canterbury, selling 2,601m (28,000ft) to an owner occupier with the remainder sub divided and refurbished into three units. Also on the estate 2,090m (22,500ft) has been sold to Sealy Bed Ltd. Although the unit has a footprint of only 697m (7,500ft), two extra oors with a lift have been constructed.

Lettings
Location Unit 17-19 Botany Trading Estate, Sovereign Way, Tonbridge Unit 5 Interchange, Wested Lane, Swanley 6 Stirling Park, Rochester 2a Longeld Road, Tunbridge Wells 4 Wyvern Way, Ashford 11 Lordswood Industrial Estate, Chatham Landlord Private company CBRE Global Investors Industrial Property Investment Fund COIF Charities Property Fund Verve Properties Aviva Investors Global Services Ltd Tenant John Newton & Co. Ltd Selecta Inate Ltd Fox Print Services Ltd Shefeld Insulation Group SPI Matrix Ltd Size ft2 20,272 17,000 11,444 9,300 5,197 plus 2,458 mezz 6,700 Rent (pa) 115,000 119,000 71,600 58,600 33,000 41,000 Lease Term 10 year with break at year 5 10 year with break at year 5 10 year with break at year 5 3.5 year 10 year 10 year with break at year 5 Agent Caxtons Altus Edwin Hill Watson Day Broadlands Commercial Property Agents LLP Taylor Riley Watson Day

10

KENT PROPERTY MARKET 2012

Sales
Location Medway City Estate, Rochester Unit 5 Stag Road, Tunbridge Wells Unit 7 Access 4:20, Aylesford Vendor c/o Hadleigh & Partners Clerical Medical Investment Group Private investor Purchaser Veetee Rice Ltd A&A Metals Ltd Obsidian Securities Size ft 25,386 6,000 2,922 Tenant Vacant Vacant Vacant Price 1.4m 450,000 295,000 Income Yield Agent Caxtons Durlings Core Commercial

Industrial rents
2008-09 100 2009-10 2010-11 2011-12

Industrial rental growth

Kent 10 8 UK South East

Industrial average yields

Kent 12 11 10 9 8 7 6 5 UK South East

80 6
% Change a year

60 /m2

4 2 0 -2 -4 % Yield
Dec 2002

40

20

Gravesend

Sevenoaks

Sittingbourne

Dartford

Ashford

Folkestone

Canterbury

Maidstone

Tonbridge

Medway

T.Wells

Thanet

Dover

-6
Dec 1997 Dec 2003 Dec 2004 Dec 2000 Dec 2005 Dec 2007 Dec 2010 Dec 2009 Dec 2011 Dec 1998 Dec 1999 Dec 2001 Dec 2008 Dec 2006

Dec 2000

Dec 2006

Dec 2007

Dec 2009

Dec 2010

Dec 2003

Dec 2004

Dec 1999

Dec 1997

Dec 1998

Dec 2001

Dec 2002

Dec 2005

Dec 2008

Source: Cluttons LLP

Source: IPD

Source: IPD

Dec 2011

11

RETAIL PERFORMANCE
As at June 2012, all retail sales volumes and values were estimated to have increased by 1.6% and 1.9% on June 2011 respectively. Despite this, the early part of 2012 has seen values become largely stagnant across the board, with some centres experiencing falls. Prime pitches within the main Kent towns can and are still attracting occupiers, but the run of what is considered prime pitch is shortening. As a result vacancy rates have remained static with prospective tenants continuing to negotiate hard over deals and this, coupled with a cautious approach to commitment, has continued to impact transaction turnaround times which have, in large, been drawn out. Further to the report carried out by Mary Portas, Ashford, Dartford, Margate and Medway have successfully won Portas Pilot funding from the government to assist in regenerating the High Street. With a pot of 2.7m set to be shared between 27 winning centres, along with a tailored package of support from the government and Mary Portas, the funding aims to drive improved performance from the smaller independent retailers. In contrast, larger stores continue to remain very cautious, with the demise of Clinton Cards reminding retailers of the need to correctly balance sales and overheads. Development within town centres is thin on the ground with very little pipeline supply. However, Silvercoin Investments are to embark on the development of 576m (6,200ft) of retail space with a 120-bedroom hotel above on the corner of St Georges Place, Canterbury. Supermarkets continue to surge as Sainsburys completed an extension to their store in Sevenoaks in 2011 and Aldi constructed a new store in Maidstone which opened in May 2012. Aldi has also agreed terms with Legal and General to occupy the former Habitat store in Canterbury which provides 1,394m (15,000ft) of sales space. A Lidl is also planned for Sevenoaks, while Waitrose also opened a new outlet at Kings Hill, West Malling in December 2011. Kent continues to lure retail investors with yields ranging from 6.2% to 9% depending on covenant and location. High street shops are attracting greater numbers of smaller investors seeking better value resulting in falling capital values; the smaller investor often operates a proactive management approach. According to IPD (Investment Property Databank) the average yield of the High Street is 7.9%, 190 basis points higher than the wider market. Two investments in Tunbridge Wells saw the Lower Pantiles being sold to Marquess of Abergavenny for 4m from Deloittes Ltd, the administrators of a subsidiary of Targetfollow, and Martin Moore Ltd purchased the freehold of 25 High Street for 1.05m. Retail warehouse rents have remained steady this year following the rally of last year, with continued investment interest. Units 1-8 Wincheap Trade Park, Canterbury sold to Threadneedle Property Investments Ltd for 3.75m reecting a net initial yield of 9%. At Westwood Cross, Land Securities retail park in Broadstairs, Primark opened the largest unit comprising 6,503m (70,000ft) in October 2012. At the same time, plans for an extension to the park, including the addition of 720 new parking spaces have been revised and were out to public consultation in summer 2012 prior to a planning application being made.

Lettings
Location 80 High Street, Ashford 13 Military Road, Chatham 1 Guildhall Street, Canterbury 129-131 High Street, Tonbridge Unit 1D/J Liberty Square, Kings Hill 70B High Street, Whitstable Landlord Private Trust Halpern Group Guildhall Estates Private company Liberty Property Ltd Partnership Private individual Tenant Tesco Raphaels Jewellers AJ Chocolates Regal Consultants Humpreys Private individual Size ft2 10,400 2,496 1,477 1,155 1,155 917 Rent (pa) 49,500 20,000 28,500 18,000 Condential 15,829 Lease Term 20 year with tenant break in year 10 10 year with tenant break in year 3 10 year Undisclosed 10 year Assignment Agent BTF Partnership Caxtons Caxtons Cradick Retail Liberty Property Trust UK Cradick Retail Taylor Riley

12

KENT PROPERTY MARKET 2012

Sales
Location Vendor Purchaser Size ft Tenant Price Income Yield Agent BTF Partnership Walter & Randall Cradick Retail Caxtons Cradick Retail

Albert Street, Whitstable

Rogate

Private investor

3,000

Pizza Express

760,000

45,000

5.6%

27 High Street, Tenterden 24 St Peters Street, Canterbury Tesco store, Dover Road, Folkestone

Private investor Private investor Starnes Plc

Private investor Private investor Private investor

933 817 -

Country Casuals Ltd Messrs Malik and Sikdar Tesco Plc until 2031

510,000 385,000 985,000

35,047 29,250 57,500

6.5% 7.3% 5.5%

High street retail rents

2008-09 2500 2009-10 2010-11 2011-12

High street retail rental growth

Kent 8 6 UK South East

High street retail average yields

Kent 10 9 8 % Yield 7 6 5 4 Dec 2000 Dec 2002 Dec 2001 Dec 2005 Dec 2007 Dec 2009 Dec 1998 Dec 1999 Dec 2003 Dec 1997 Dec 2004
Dec 2007

UK

South East

2000 % Change a year Dartford Folkestone Gravesend Ashford Sevenoaks Sittingbourne Maidstone Tonbridge Canterbury Medway T.Wells Thanet Dover

4 2 0 -2 -4 -6

1500 /m2 1000 500

-8 Dec 1999 Dec 1998 Dec 2003 Dec 1997 Dec 2000 Dec 2001 Dec 2004 Dec 2002 Dec 2006 Dec 2008 Dec 2009 Dec 2005 Dec 2010 Dec 2011

Dec 2006

Dec 2008

Source: IPD

Source: IPD

Source: Cluttons LLP

Dec 2010

Dec 2011

13

LEISURE AND TOURISM PERFORMANCE

Contributing more than 3.2bn to the Kent economy, the tourism and leisure industry continues to be one of the countys major employers supporting 63,000 jobs equivalent to 1 in every 14 people employed. Kent welcomes 57m visitors each year. Phase 1 of the Dreamland project has received full funding for restoration of the scenic railway, the historic rides collection and Lord George Sangers menagerie cages. The park will open in 2013. Ramsgate Tunnels Heritage Group is looking to develop the disused rail tunnels and air raid shelters under Ramsgate into an all-weather, year-round attraction. A successful Big Lottery Fund bid is supporting progress with feasibility studies. New shops, homes and restaurants in central Dover have passed the nal planning stage. In phase 1 a 108-bedroom Travelodge, telecommunications mast and 10m LED screen at Woolcomber Street/St Jamess Street, has achieved planning permission with completion in 2013. Phase 2 includes a variety of public spaces, a int town wall, renewed retail and restaurant space and 450 parking spaces. The aim is to revive interest in Dover as a hub for shopping, eating and relaxing. The National Trust is appealing for 1.2m to buy a mile of land on the White Cliffs of Dover. It is the missing link of local coastline owned by the National Trust and will safeguard it for the future. The Trust also launched a two year, 27m restoration of Knole House in Sevenoaks in 2012. Battle of Britain Memorial Trust has planning permission for The Wing to be built at the National Memorial to the Few, Capel-le-Ferne. Designed by Folkestones Godden Allen Lawn the building is in the shape of a Spitre wing and will be a paid-for visitor experience, with special effects/video walls and an education centre.

Attractions and venues

Turner Contemporary, Margate continues to draw in the crowds with 700,000 people having visited in its rst year. It has received a Catalyst endowment grant of up to 1m from Arts Council, Heritage Lottery Fund and Department for Culture, Media and Sport to support sustainability and attract investment in new artistic work.

The Beaney Art Museum & Library, Canterbury (credit Tim Stubbings) 14 KENT PROPERTY MARKET 2012

Turner Contemporary, Margate

Maidstone Museums 3m restoration and East Wing development by Hugo Broughton Architects, opened to the public in spring 2012 as well as the new Kent History and Library Centre. Maidstones Mote Parks 2.5m restoration and the Maidstone High Street Public Realm Project were also completed. The Beaney Art Museum and Library, Canterbury, re-opened in September 2012 after extensive restoration and includes exhibition galleries, community/educational space, visitor information and interactive events. The new 26m Marlowe Theatre opened in October 2011 and sold 300,000 tickets in its rst nine months. Designed by Keith Williams Architects, the theatre received The Cultural Landscape Award and the RIBA Downland Award for architectural excellence. Cyclopark, Gravesend opened in May 2012. This multi-sport centre brings rst class running, cycling and extreme sports to Kent as well as regional and national events. Also in the Thames Gateway, Milton Creek Country Park has opened near Sittingbourne town centre. Glow is a 5,200m (55,972ft) event venue in Bluewater. The 60m space, owned by Lend Lease, opened in November 2011 and has two main halls and a gallery to host exhibitions and top musical acts and includes a plaza with 12 restaurants, cafes and bars.

In 2012, GSE completed phase 1 of the regeneration of the Hythe Imperial Hotel, with a 1m investment in the exterior of the building. Completion of the new homes on Imperial Green will allow a further 3m investment in the new south elevation of the hotel. Medway has several new hotel sites including a 120-bedroom hotel on Gillingham Waterfront, a 150-bedroom hotel on Rochester Riverside as well as plans for a 200-bedroom hotel on Chatham Waterfront close to a new events/conferencing complex. Work has re-commenced at The Coniston Hotel, Sittingbourne, with a view of opening in late 2012. Shepherd Neame acquired The Bell Hotel, Sandwich and The Fayreness Hotel, Broadstairs in late 2011 and is investing in accommodation at other properties. The Joiners Arms, West Malling, now has French boutique style bedrooms following a 140,000 refurbishment, and the Dog and Bear Hotel, Lenham, has refurbished its 24 bedrooms while maintaining its 17th Century period charm.

Marlowe Theatre, Canterbury

Transport
A masterplan by Dover Harbour Board to increase capacity with four additional Ro-Ro ferry berths in the Western Docks is proposed. The investment will see a new marina created for up to 370 berths. 11.4m has also been invested by extending Pier A at the Eastern Docks to enable longer vessels to moor in berth. This will provide improved mooring for DFDS vessels and an alternative berth for P&O Spirit class ships. Works will also improve marine safety and help avoid disruption to schedules. P&O Ferries has added a second new ship, the Spirit of France, to its eet. The assets of liquidated operator SeaFrance were awarded to Eurotunnel and three ships will be back in operation shortly. A new Dover-Calais route operated by LD Lines and DFDS started in February 2012.

Maidstone Museum, Maidstone

Accommodation
Princes Golf Club, on the Kent coast near Deal and Sandwich, has opened new Lodge accommodation. The opening marked the 80th anniversary of the rst shot in the 1932 Open Championship hosted at Sandwich. A new Premier Inn opened at Minster, near Ramsgate while a boutique hotel at Albion House, overlooking the Royal Harbour, is also planned. The Sands Hotel has planning permission for boutique accommodation on Margate seafront.

Glow at Bluewater, Greenhithe 15

RURAL PERFORMANCE
The rural land market has seen positive growth over the last year. Nationally farmland prices have reached a record high driven by demand from commercial farmers and facilitated by improved availability of debt nance for land purchases (RICS). The strength of the market is reected in its investment performance, delivering total returns of 15.9% in 2011, outperforming all other property sectors. Kents rural market reects the national picture with a constrained supply of available bare land and equipped farms coming to the market. While inheritance tax and pension benet changes have heightened interest from private investors, it has been existing farmland owners seeking to increase holdings to enhance protability that have dominated the little activity that has occurred over the last 12 months. According to the RICS, bare land values are at a historic high in the south east, rising steadily since 2009 following the market downturn. These now stand at 2,934 per ha (7,250 per acre) and 2,378 per ha (5,875 per acre), for arable and pasture land respectively. However there remains wide variation around this gure and is dependent on the nature of land. Given the dearth of supply, opportunities for either the expansion of existing farms or estate purchases remain a rarity. One of the few large transactions in the market over the last 12 months was the 4.8 sale of Cleve Hill Farm, Graveney by Savills to a farming business comprising 408 ha (1,009 acres) of mostly grade 3 arable land. More recent transactions include 236 ha (582 acres) of grade 2 and high-end grade 3 land situated to the south of Faversham at The Parsonage and Valley Farm by BTF. No buildings or dwellings were included in this sale and the land was offered in six lots or as a whole ranging from 8 ha to 90 ha (20 acres to 223 acres) with guide prices from 3,035 per ha to 3,642 per ha (7,500 per acre to 9,000 per acre). The overall guide price was 3.5m to 4m. At the lower end of the scale, 72 ha (177 acres) in Biddenden Woods was sold for the equivalent of 1,520 per ha (3,757 per acre). Lifestyle buyers remain in the market, although are now less prominent than in recent years. Demand for good quality country houses with accompanying land continues to be underpinned by former London dwellers, however, the quality of the property is important, and focused mainly in mid and west Kent. Savills 2.5m sale of Odiam Farm on the outskirts of Tenterden, comprising four bed house, barn used for garaging and annex, and six outbuildings with 95.9 ha (237 acres) of pasture land, underlines the value attached to good quality residential farms. In contrast, Mount Pleasant Farm at Marden, which includes 16 ha (40 acres) of pasture land and house, with two ranges of buildings sold for slightly in excess of 1m. In 2012, tenders for short term arable Farm Business Tenancies (FBT) have proved competitive with average tender rents across the county equivalent to 81 per ha (200 per acre). In Ashford, 233 ha (576 acres) of arable land, 62 ha (153 acres) of pasture land and 10.9 ha (27 acres) of woodland are being marketed as lots or as a whole through a ve year FBT agreement at Cheesemans Green, which forms part of the Church Commissioners holdings in this area. Looking ahead, agricultural land values are anticipated to show further growth this year, although the impact of the impending CAP reform is generating some uncertainty.

Rural property total return relative to other asset classes

Rural property Commercial property Residential property Equities

25 20 15 10 % 5 0 -5 2011
Source: IPD

3 years

5 years

10 years

Odiam Farm, near Tenterden 16 KENT PROPERTY MARKET 2012

Cleve Hill Farm, Graveney

-10

The Parsonage & Valley Farm, near Faversham 17

RESIDENTIAL PERFORMANCE
The Kent residential market showed tentative signs of turning a corner in mid 2012. At the end of July average values stood 0.2% ahead of the same point last year (Land Reg.). While marginally below the south east average, this masks a mixed picture across the region. Demand for large family houses in west Kent has continued, upheld by London commuters, having a positive impact on values. More generally, nance constraints and a challenging labour market are suppressing condence and activity in the countys housing market, with residential values in east Kent showing the weakest performance. The high speed train link through Kent to St Pancras is continuing to improve the desirability of the locations it has opened up, but with minimal impact on house values to date. New build activity remains positive across the country, with the build rate driven by sales demand. All national developers are active, with mid, west and north west Kent attracting particular interest. Government and developer schemes to assist rst time buyers are facilitating an increase in sales volumes particularly for smaller houses and ats. Schemes underway include phase 3 of Medway Gate, Strood, which will be released this year by Persimmon Homes, while Cheesemans Green, Ashford, has attracted 2.3m funding through the Get Britain Building Fund for the release of 100 new homes to be built by Crest Nicholson. The signicant demand for housing and reduced desire for commercial development has prompted a review of the masterplan for Kings Hill and a new vision for the future. An outline planning application for change of use of part of the undeveloped commercial land will be submitted late 2012 for a new residential-led mixed use development. There is less activity in the eastern parts of the county due to increased risk and lower capital values, which given the severe constraints on development nance is impacting on development viability. This in particular is denting the activity of smaller housebuilders in the county, leading to more joint venture schemes, with land owners taking deferred payments.
Rochester Riverside, Rochester (credit Medway Council) 18 KENT PROPERTY MARKET 2012

Average new build price range by location

Indicators Sevenoaks Tunbridge Wells Tonbridge and Malling Canterbury Dartford Whitstable Maidstone Gravesham Medway Ashford Swale Ramsgate Sheerness Dover Average price range /psf 2012 315 450 250 400 250 340 235 300 220 285 200 370 185 280 175 265 160 265 160 235 160 220 160 200 155 200 155 190
Source: Cluttons LLP

Given viability issues, a number of Section 106 (S106) Agreements and affordable housing quotas are being contested by developers, while some large scale regeneration sites requiring signicant infrastructure investment have also stalled. That said there are a number of notable schemes in the pipeline. Land Securities, owners of Eastern Quarry, is seeking partners for the rst phase of development at Castle Hill and Weldon, the local authority has eased the S106 transport infrastructure obligations. They have also submitted a planning application for Lodge Hill on the Hoo Peninsula, with phase one planned over eight years. In these areas land values are stable, aided in part by some historic planning consents with lower affordable housing requirements. Registered Providers (RPs) remain active across Kent, but are proving more selective, due to less competition from private developers, while also looking to develop sites for private sales to cross subsidise their affordable programmes. Schemes underway include the rst phase of Rochester Riverside, where Hyde Housing is nearing completion on 73 homes and has commenced construction on the next 210 unit phase.

Ryewood, Dunton Green, Sevenoaks

The Point, Maidstone 19

INWARD INVESTMENT
Locate in Kent, Kent and Medways investment promotion agency, maintains a client database that holds details of the property requirements of companies looking to relocate to or expand in Kent. It also maintains a web-based commercial property database that provides a good indication of Kent and Medways commercial property supply. compared to 273 in June 2011, of up to a total of 194,984m (2,098,810ft), compared to 216,795m (2,333,576ft) in 2011. By the end of 2011-12, a total of 74 companies had been successfully assisted by Locate in Kent to invest in Kent and Medway, of which 52 had a new or additional property requirement. The total area of property occupied was 33,503m (360,623ft) compared to 53,244m (573,116ft) in 2011, which was an average take-up of 644m (6,935ft), representing a 34% decrease in the average size of property uptake since 2011. During the rst quarter of 2012-2013, a further 15,791m (169,981ft) was occupied, compared to 3,639m (39,166ft) in June 2011, representing a 334% increase over June 2011. This is explained by the fact that in June 2011 there were 21 projects (13 ofce and 8 industrial), with only one project larger than 1,858m (20,000ft), whereas in June 2012 there were 14 projects (4 ofce and 10 industrial), with ve over 1,858m (20,000ft) and with take-up of industrial property dominating at 97.8%. The total number of industrial projects seeking property in Kent and Medway in June 2012 was 101 (compared to 114 in 2011). 101 companies made 201 area enquiries, which led to a maximum demand for industrial space of 373,793m (4,023,506ft) compared to 339,094m (3,650,006ft) in 2011. 30% of area enquiries for industrial properties were in Thames Gateway and 29% in Channel Corridor, with 22% in West Kent and 18% in East Kent. With a total of 115 ofce projects to June 2012, total potential demand for ofce space reached 87,241m (939.069ft) (compared with 54,815m (590,024ft) in 2011), which

Property demand
Between April 2011 and March 2012, 216 new projects were logged by Locate in Kent, of which 194 had known property or land requirements (compared with 186 in 2010-11). 74 were for industrial property, 103 for ofce accommodation and 12 for land. At the end of June 2012, there were 309 active projects. Of these, 265 had a potential requirement for property or land,

Total ofce and industrial property demand by sub-region, June 2012

Maximum total property requirements (000s) m2
Office Industrial

Property demand by size range, June 2012

Office Industrial

Property demand by sector, June 2012

Office Industrial

300

55 % of total office/industrial demand

250 200 150 100
(44) (37) (60) (59) (45)

45 35 25 15 5

(44)

(42)

Figures in brackets = no. of active projects at June 2011 (39)

Total (min) requirement (000s) m2

50 40 30

Figures in brackets = no. of office and industrial active projects at June 2012

(16) (20)

(16) (7) (7)

(15)

(16)

20 10
(5) (24) (20) (1) (9) (6)

(10) (7) (6) (14) (2) (16)

(27) (11) (4)

50 0

(61)

(56) (42)

(4)

(2)

(5) (0) (1)

(3)

94-464 (1,001-5,000)

9,290+ (100,000+)

465-929 (5,001-10,000)

930-1,858 (10,001-20,000)

1,859-4,644 (20,001-50,000)

0-93 (0-1,000)

4,645-9,289 (50,001-100,000)

Engineering

Creative Industries

Food & Agriculture

Business Services

Public Services

Manufacturing

East Kent

Automotive

Channel Corridor

Land Based & Utilities

Printing & Publishing

Retail & Wholesale

West Kent

Financial Services

Environmental

Life Sciences

Construction & Property

ICT

Tourism & Leisure

-5

Figures in brackets = no. of active projects at June 2012 (NB. Some projects are considering property in more than one area of Kent.)

Minimum property size requirement m2 (ft2)

20

KENT PROPERTY MARKET 2012

Transport & Logistics

Thames Gateway

was up by 59% on 2011. 115 companies made 203 area enquiries for ofce property. The highest demand (30% of area enquiries) was in Thames Gateway, with Channel Corridor 28%, West Kent 21% and East Kent 22% of area enquiries. Of all industrial property, smaller sized units continued to be the most popular. In both 2011 and 2012, the most popular industrial property size was 93-464m (1,001-5,000ft), which accounted for 42% and 39% of totals respectively in each year. As in 2011, smaller ofce properties continued to be the most sought after. 86% of ofce demand was for properties of under 464m (5,000ft), but the average minimum size requirement was almost twice the size as the previous year - 536m (5,765ft) in 2012 compared to 270m (2,906ft) in 2011. At the end of June 2011, industrial demand was dominated by retail and wholesale representing 16% of projects Property supply by area, June 2012
Total Office - 824 Properties Total Industrial - 791 Properties
300

(29,404m (316,502ft)), followed by manufacturing, (24,994m (269,033ft)), food and agriculture (19,609m (211,070ft)) and engineering (18,414m (198,207ft)). At the end of June 2012, the situation differed slightly, with manufacturing representing 16% of the industrial demand (26,505m (285,297ft)), followed by engineering (19,672m (211,748ft)) and food and agriculture (15,289m (164,569ft)). At the end of June 2011, ofce demand was dominated by business services (35% of ofce demand; (11,223m (120,803ft)), followed by construction and property (3,888m (41,850ft)) and public services (3,721m (40,052ft)), both approximately 12% of demand. At the end of June 2012, the situation was similar, with business services still dominating with 24% of ofce demand (7,985m (85,949ft)), followed by engineering (11%; 3,558m (38,298ft)) and construction and property (9%; 3,084m (33,195ft). Property supply by size bracket, June 2012
Office - 853 properties Industrial - 791 properties
(443) (396)

At the end of June 2012, a total of 1,644 properties were registered on Locate in Kents property database, compared to 1,745 at the end of June 2011, a decrease of 6%. 48% of supply was industrial properties, compared with 47% in 2011. The greatest number of properties overall were available in Thames Gateway (32%), followed by Channel Corridor (30%), West Kent (25%) and 14% in East Kent. Channel Corridor and Thames Gateway offered the greatest number of industrial properties (29% and 34% respectively). Channel Corridor, West Kent and Thames Gateway offered the greatest number of ofce properties (31%, 29% and 29% respectively). At the end of June 2012, 92% of the ofce properties available were at the smaller end of the range - less than 464m (5,000ft), which was the same as June 2011. For industrial properties, the most commonly available sizes were also at the lower end of the size scale, with property under 464m (5,000ft) accounting for 71% of all available industrial properties, as it did in June 2011.

60
(270)

% of office/industrial properties

Number of properties available

250 200

(241)

(239)

(253) (226)

Major investments
Figures in brackets = number of properties logged on Locate in Kents property database at June 2012

50 40 30 20 10 0

(384)

(159)
150 100

(136) (91)

Locate in Kent handled a similar number of industrial and ofce investments in 2011-12 and there were also more than usual from overseas - 20 investments, due to Locate in Kents successful prioritizing of foreign direct investment. These investments were from a diverse range of countries including Ireland, Canada and India. Document Warehouse, a leading South Africa based archiving and document storage specialist set up their rst ofce in the UK in the 9,090m (90,000ft) Orchard House, Henwood Road, Ashford, where they now have their UK HQ, creating 200 jobs over three years. Go Response, a customer services company created 150 jobs by taking an additional 808m (8,000ft) at Kent Science Park and GML Construction created 106 jobs at their Coxheath, Maidstone ofces.

(116)

(108) (68) (43) (18) (7) (37) (5)

50

(19)

930-1,858 (10,001-20,000)

1,859-4,644 (20,001-50,000)

465-929 (5,001-10,000)

Figures in brackets = number of properties logged on Locate in Kents property database at June 2012

Size of property m2 (ft2)

4,645+ (50,001+)

0-93 (0-1,000)

94-464 (1,001-5,000)

0 East Kent West Kent Channel Corridor Thames Gateway

21

REGENERATION
Thames Gateway Kent
Dartford
Dartfords Core Strategy was adopted in September 2011 and consultation on a Preliminary Community Infrastructure Levy Schedule took place in May 2012. Work is progressing on a Development Management DPD and a Supplementary Planning Document on the Northern Gateway was adopted in April 2012 and a Parking Standards SPD in July 2012. In Dartford town centre, one of twelve successful pilots for the Portas Project, the Loweld Street application for a mixed use development is being considered by the council and a Sunday market has been started to increase footfall. Land Securities has engaged a development partner in bringing forward a mixed use development at Eastern Quarry. In August 2012 a deal between ministers, councillors and developers was announced, conrming the rst phase of 1,500 homes is due to complete in December 2013. As part of the plans, around 116m is to be spent on transport infrastructure. An outline application was approved in June 2012 for Dartford Gateway, a mixed-use development of 950 to 1,050 residential units, ofce, retail and food and drink. Construction of the homes starts soon. Other sites at the Northern Gateway are progressing, with employment space created at The Base, residential development on a former paper mill and a further large site is being marketed. Two further phases of The Bridge at Dartford have commenced. Eventually it will comprise 1,500 homes, a community hub and science park all served by Fastrack. Refurbishment and conversion of Stone House Hospital to residential use with additional new homes in the grounds is underway and being successfully marketed. and will allow additional rail freight in future. The spoil will be used at an RSPB reserve at Wallasea Island, Essex. Christian Fields redevelopment continues into phase three. The 400 new houses, managed by Moat housing association are proving popular and the projects social benets have brought the community together. In 2012, a 40m long pontoon off the Grade II* listed Town Pier was opened enabling visitors to reach Gravesend by river, the Piers original function. It has attracted many vessels for their summer visits to the River Thames. Gravesend Skate Park opened to complement attractions in the Riverside Leisure Area and the new Cyclopark.

Gravesham
Consultation took place in 2011 on the Growth Scenarios and Core Strategy. The Publication Stage Core Strategy has a requirement for 4,600 homes for 2011-2028 averaging 271 dwellings a year. This is less than South East Plan requirements but enables delivery of jobs and housing. Lafarge obtained consent for the import of aggregates at Wharf 42 at the former Northeet Cement Works and export of tunnel spoil from Crossrail. It has enabled the reinstatement of the rail connection to the North Kent line

Medway
The 20-year regeneration plan is on course to deliver major changes and improvements to the largest conurbation in the south east. Rochester Riversides rst phase of affordable housing is underway and a new Skills and Employment Centre has begun to create jobs and apprenticeships for local people. Medway City Estate has expanded with 600 companies now providing over 6,000 jobs.

Cyclopark, Gravesend 22 KENT PROPERTY MARKET 2012

Gravesend Pier

Chatham Bus Station (credit Medway Council)

Chatham Waters (credit Medway Council)

A real difference is being made in Chatham with the new bus station and at Chatham Docks, where outline plans have been approved for 900 homes, ofce space, two hotels and conference facilities.The 650m Chatham Waters development is due to commence late 2014 and is expected to create 3,500 jobs. Strood Academy has been completed, one of three new agship academies costing 70m with work also underway at Bishop of Rochester Academy and Brompton Academy. Medway Park is an 11m regional centre of sporting excellence. It has established itself as a venue for national and international events, twice hosting international modern pentathlon competitions including an Olympic qualier. It also hosted the British Transplant Games in August 2012. Medway Innovation Centre was recently awarded the Business Innovation Centre quality mark and became part of the European Business Network the only one in the south east outside London.

Medway Council has invested over 10m in local businesses. The Partners for Growth scheme has offered loans and grants to more than 220 businesses securing over 2,700 jobs. Employ Medway has helped over 800 people get work and the council has invested over 200,000 in apprenticeships, helping 200 young people begin their careers.

March 2012 saw the opening of a 7,432m (80,000ft) facility, by Hamdon Gate for Abbott UK, adding to the existing 280 occupiers employing an estimated 6,500 people at Eurolink. Rushenden Link Road now provides access from the A249 to the Queenborough and Rushenden regeneration area where 2,000 houses, social, leisure, community facilities, school, marina and 180,000m (1,937,503ft) of new employment space is planned. Phase 1 preparatory works are due. Peel Ports deepwater port at Sheerness has been nominated as one of four designated Centres for Offshore Renewable Engineering (CORE) and is seeking to become a major manufacturing hub for the offshore turbine industry. The consortium, Spirit of Sittingbourne, has been selected to regenerate the town centre, with agreements concluding by autumn 2012. Proposals include a new cultural quarter, multi-screen cinema, music/performance venue, associated retail/leisure uses and a civic quarter providing a new council building along with library and community facilities.

Swale
Sittingbourne and Sheppey together form a major commercial centre, with one of the foremost concentrations of engineering and manufacturing in the Gateway. A 45m investment in new roads has improved access and increased the range of sites for investors. Sittingbourne Northern Relief Road, opened in 2011, has relieved congestion in central Sittingbourne, opened up development sites north of the town and improved access to the Eurolink business area. This provides the prospect of further growth and a signicant concentration of commercial occupiers.

23

Gravesend Town Pier (credit Ashford Borough Council) Victoria Way, Ashford

Stanhope, Ashford (credit Ashford Borough Council)

A new Morrisons supermarket at the former Sittingbourne Paper Mill site is planned to open in spring 2013. Permission has also been granted for a major retail led development in Sittingbourne at Milton Creek with a new bridge linking the two. Kent Science Park in Sittingbourne is undergoing a programme of upgrades, re-ts and new construction work ahead of a major extension. The Park, home to 63 tenants and more than 1,300 employees, has recently invested in operational upgrades and provided new laboratory space for both existing tenants and Flow Chemistry Solutions, a Pzer spin out. At Faversham, the recent development of the Eurocentre site provides a mix of new ofce and industrial space and ongoing commercial developments.

The relationship between Ashford and London is transforming opportunities for local businesses and residents. Of people travelling to London from Ashford International Station 71% use High Speed 1. The 6.5ha (16 acres) commercial quarter at Ashford International Station will deliver 55,000m (592,000ft) of ofces, retail/leisure space and 150 homes. The rst 6,000m (64,500ft) ofce was approved in 2011 with owners, the Homes and Communities Agency, working with the council to deliver this business hub. Recent improvements at M20 Junction 9 have supported the expansion of Eureka Business Park. This 39ha (96 acres) park has delivered 30,190m (325,000ft) of business space housing some of Ashfords largest employers such as Coty Rimmel and Smiths Medical. Northdown 2 forms the latest 2,320m (25,000ft) ofce development on this key site. A 7m John Lewis At Home store at Junction 9 has planning permission and will create 160 jobs. Victoria Way completed in late 2011. This new infrastructure opens up major development opportunities south of the

town with potential for 1,750 homes and over 17,230m (185,000ft) of commercial, retail and leisure space. Ambitious plans are coming forward to develop land at Conningbrook as a water sports venue with a lakeside village of 300 homes to complement the Julie Rose Stadium. Proposals are progressing for a sustainable community of up to 5,750 homes at Chilmington Green creating 1,000 jobs. Reconstruction of the Stanhope estate completed in 2012, transforming the lives of residents. For ve years Chrysalis Consortium worked for Ashford Borough Council to refurbish 323 council-owned properties to Decent Homes Standard and with Gleeson Homes and Regeneration to build 442 homes.

Ashford
Highlighted as a place to invest, Ashfords growing reputation continues with the delivery of key projects and plans essential to future prosperity.

West Kent
Maidstone
Major new housing and employment sites have been allocated by Maidstone Borough Council.

24

KENT PROPERTY MARKET 2012

The Tunbridge Wells Regeneration Company, established in 2008, is considering options for John Street and Mount Pleasant car parks and Cranbrook Council Ofces. Berkeley Homes bought the Kent & Sussex Hospital site and a planning application for residential development with potential ofce space is expected in late 2012. Hermes Real Estate has invested in Royal Victoria Place taking full control of the shopping centre. The new owner of Lower Pantiles is reviewing the strategy for the area.

Tonbridge & Malling

Tonbridge and Malling Borough Council Core Strategy was adopted in 2007 with no plans currently to review it. A Development Land Allocations DPD, a Town Centre Area Action Plan and a Managing Development and the Environment DPD have also been adopted. Liberty Property Trust UK, developers of the 363 ha (897 acre) mixed-use, sustainable development at Kings Hill, has announced a review of the masterplan to see how they can better respond to current market demands and, in particular, the need for more housing. With established infrastructure, Kings Hill is well placed to accommodate further, carefully designed, residential-led development via an application for change of use of some, as yet undeveloped remaining consented commercial space. Proposals are likely to include up to 1,000 new homes, possible new primary school, retirement homes, residential care home and landscaped open space. The indicative planning application timeline is for community consultation Q3/Q4 2012, a planning application by the end of 2012 and for local authority statutory consultation thereafter.

Gallagher Stadium, Maidstone

The Kent Institute of Medicine and Surgery (KIMS) is investing 80m in a new hospital at M20 Junction 7 as part of the Maidstone Medical Campus Masterplan being promoted by DHA Planning. The new hospital, designed by David Morley Architects, is being built by Vinci Construction. The new Kent History and Library Centre is a mixed-use purpose built development with 60 residential units and a 57 unit extra-care facility. Nearby, Maidstone Uniteds new 3,000 capacity ground, The Gallagher Stadium, has been built at Whatman Park. Maidstone Museums 3m restoration and the Maidstone public realm project were both completed in 2012.

Tunbridge Wells
Tunbridge Wells Core Strategy was adopted in 2010 with consultation in autumn 2012. A Community Infrastructure Levy Charging Schedule accompanies the policy and a Borough Transport Strategy is being prepared.

Sevenoaks
The District Council adopted the Core Strategy in February 2011. An application has been submitted for redevelopment of a site west of Blighs Meadow for retail and residential. West Kent Cold Store site at Dunton Green is being built out with 500 residential units and 2,300m (24,757ft) of B1 commercial space. Horton Kirby Paper Mills site was completed in 2011, providing 214 homes and commercial space.

Maidstone High Street 25

East Kent
Canterbury
The signicantly extended and restored Beaney Art Museum and Library reopened in September 2012 creating a new library, museum and gallery, community areas and a learning lab. The 13.2m project, together with the new Marlowe Theatre, underlines the citys position among cultural centres in the south east. Canterbury Innovation Centre at University of Kent is now close to full occupancy. Managed by Basepoint Ltd and owned by the East Kent Spatial Development Company the 2,500m (26,909ft) site provides 85 workshops, ofces and studio/laboratories with business incubators sized from 9m - 79m (96ft - 850ft). Work on a new 120-bedroom Premier Inn at St Georges Place begins on site in 2012. Also in St Georges Place, Canterbury Christ Church Universitys new accommodation and a student centre opened in September 2012. It has

200 single en-suite study bedrooms arranged in ats of up to six students, with bar, internet cafe and ofce space plus 10 three-bedroom houses around a landscaped space. The development aims to give a strong urban street frontage onto St Georges Place, consistent with the historical pattern. As interest grows in the student market, Quinn Estates introductions led 90 North Real Estate partners to purchase the 800 bedroom Parham Road Student Village, Canterbury for 46m, one of the largest deals the county has seen. Eddington Nursery Business Park at Herne Bay is now fully committed. The scheme, brought forward by George Wilson Developments, has six units (2,717m / 29,245ft gross) comprising B1 ofce/industrial, B8 distribution and D1 uses with ve units already built and occupied.

Enhancements to Dover Priory station are nearing completion, with plans to create a 500 space car park and retail facilities. In August 2012, Discovery Park (Pzers former research and development site) in Sandwich was bought by a private consortium. Discovery Park Limited has acquired the freehold of the science park, which consists of 278,709m (3m ft) of commercial space across 86ha (213 acres), including laboratories, ofces and warehouses. The site was awarded Enterprise Zone status in 2011, providing a comprehensive package of support measures for new businesses including reduced business rates and simplied planning. This is backed up by the launch of Expansion East Kent, a 35m government backed scheme to provide 0% interest loans for local businesses (see page 28 for further information). The Dover Town Investment Zone, a mixed-use development with retail, hotel and residential development, has received approval with completion due in 2013. Progress on residential developments at Aylesham Village, Buckland Mill, Connaught Barracks, and Whiteld continue.

Dover
The district is seeing signicant investment and exciting projects in a range of areas, with the certainty of the Local Development Framework in place.

Rocksalt, Folkestone (Credit Guy Hollaway Architects) 26 KENT PROPERTY MARKET 2012

Dreamland, Margate (Credit Guy Hollaway Architects)

Discovery Park, Sandwich

Other plans for the district include the submission of a major planning application for the Western Heights and Farthingloe areas and continuing plans for Dover Waterfront as part of wider proposals for Port of Dover.

After signicant investment into the Sports Centre, Cheriton Road Recreation Ground works will complete in early 2013 providing a state-of-the-art facility for hockey and cricket, a sports hall and much needed space for netball and badminton. A private sixth form college has been created in the former Kent Adult Education building in west Folkestone with facilities and boarding for 30 students. Terlingham Forum in Hawkinge is under construction. Phase 1 of this Pentland Homes development will provide 48 residential units and a new retail core. Further phases include around 12,000m (129,167ft) of B1 and B8 space. Hythes Imperial Hotel is also undergoing a 12m refurbishment.

locally and has attracted new businesses to the Old Town and lower High Street. Thanet District Council and the Dreamland Trust have secured funding for the rst phases of the heritage amusement park. Works have taken place to safeguard the Grade 2* listed cinema. The council is to compulsory purchase the site to ensure its future in the town. Manston Business Park and Eurokent Business Park are being brought forward by East Kent Opportunities (EKO) LLP, the Kent County Council and Thanet District Council joint venture. The Eurokent site, adjacent to the Marlowe Innovation Centre, has few ofce and industrial units remaining. The new A256 East Kent Access road opened in 2012 improving access across East Kent and to Ramsgate Port, Manston Airport and strategic sites.

Shepway
Work on bringing forward the Folkestone Seafront masterplan is continuing apace with an outline application submission for a mixed use scheme by autumn 2012. After the successes of the Quarterhouse Performing Arts Centre and the University Centre, the Creative Quarter in Folkestone is redeveloping a former nightclub on Tontine Street to create modern ofces and incubator space. Kent County Council, Shepway District Council and the Creative Foundation successfully bid for Townscape Heritage Initiative funding for the Old Town area to restore a number of buildings and make public realm improvements. Subject to a successful development phase, work will start in 2013.

Thanet
Thanets unique heritage, landscape and coast make it a major tourist destination attracting over 2.5m visitors annually. Margates new Turner Contemporary and its 700,000 visits last year provided an estimated 6.3m of additional income

27

The Kent Empty Property Initiative: No Use Empty

No Use Empty (NUE) is delivered by Kent County Council (KCC) in partnership with all 12 district councils. After its initial success in East Kent, the initiative expanded countywide in 2009. The aim has been to substantially increase the number of long-term empty homes returned to use as good quality housing. Since 2005, NUE has returned 2,126 empty homes back into use, awarding 5.8m of loans levering in 11.4m giving a total investment across Kent of 17.2m. The average cost to renovate a unit (often the very worst properties) is 44,200 with the average KCC investment being 18,500. The actual cost to return an empty property back into use by KCC has been calculated at 2,800. Margate Housing Intervention Scheme aims to transform the housing market in two of Britains most deprived wards, Cliftonville West and Margate Central. The innovative scheme will see Thanet District Council, Kent County Council and the Homes and Communities Agency working on improvements to create a step-change in the housing market. To date the loan scheme has created more than 300 jobs and homes for more than 600 people with 1.6m of funding already repaid and recycled. NUE is widely regarded as one of the most effective initiatives to deal with empty properties in the UK, recognised by the Scottish Government, Welsh Assembly Government and the Empty Homes Agency as a beacon of good practice. A partnership with Bristol City Council has been established which saw the launch of the NUE brand rolled out to the West of England Local Authorities in 2010. NUE won an award from Regeneration & Renewal (September 2011) for their partnership working and was shortlisted for an award by the Chartered Institute of Housing (2012). Further information can be found at www.no-use-empty.org

Broadband Infrastructure for Kent

Kent County Council is leading a 43m programme to transform Kent and Medways rural broadband infrastructure. This will ensure that by 2015 at least 90% of premises will receive superfast broadband, with the nal 10% of premises receiving a service of at least 2mb. Businesses and properties affected by poor broadband are invited to support the programme and register their demand for better broadband at www.makekentquicker.com.

Expansion East Kent

The Governments Regional Growth Fund (RGF) is a national fund worth 2.4bn between 2012 and 2016. It aims to support job creation and private sector growth in areas dependent upon employment in the public sector. Following the decision by Pzer to close its research and development facility at Sandwich, Kent County Council successfully applied for the RGF investment as part of a package of measures to support East Kent. Sandwich Economic Development Task Force, chaired by Paul Carter, following detailed discussions with businesses, successfully bid for 40m in RGF investment: 35m to support the Expansion East Kent programme of direct nancial assistance to business; and 5m to support improvements to the rail line between Ashford and Ramsgate to enhance journey times. Expansion East Kent funding, available to existing or new businesses, offers repayable nance at 0% interest. To access the funding, applications must demonstrate job creation and good value, secure private or other forms of match funding and create employment opportunities within the East Kent district boundaries. All applications will be independently appraised against the criteria contained in the Expansion East Kent guidance notes to be found at the KCC website www.kent.gov.uk/expansion.

Arcadian, Margate (before)

Arcadian, Margate (after)

28

KENT PROPERTY MARKET 2012

GREEN INFRASTRUCTURE
Parklands programme
Thames Gateway Parklands is nearing completion having attracted 10.5m of government investment in a 25.5m programme. Milton Creek, part of the Parklands legacy has opened near Sittingbourne town centre and provides residents and visitors with extensive informal play areas, open spaces and an abundance of wildlife habitats. Within this is the Church Marshes project with creekside open space, waterside walks and seating on former contaminated land. The groundworks and hard landscaping are now complete and the planting work will commence in autumn 2012 to be ready for visitors by summer 2013. The application to extend the Kentish Flats wind farm by 17 further turbines is progressing through the planning process. Meanwhile, Little Cheyne Court Wind Farm is the south easts largest onshore wind farm with 26 turbines. In 2011 it generated 156GWh of electricity meeting the needs of 32,000 homes annually. Kent has three solar farms with the largest at Ebbseet Farm next to the proposed Richborough Energy Park. It has a 4.9MW peak capacity with 20,400 panels across 12.5ha (31 acres). The Park itself includes proposals for biomass CHP (combined heat and power), anaerobic digestion and peaking plant. The Port of Sheerness, designated by the Government as a Centre for Offshore Renewable Engineering (CORE) lies at the heart of the Medway Superhub, an area identied as capable of supporting the offshore wind sector. CORE designation recognises the port as key to facilitating manufacture and assembly of turbines. Planning approval was granted in May 2012 for a turbine manufacturing plant for Vestas, but due to a company restructure they withdrew from the plant shortly after. However, strategic location and development readiness make the port an attractive proposition to the sector.

London Array, Ramsgate Harbour

Renewable energy: micro-generation

Following the introduction of the Feed in Tariff (FIT) in 2010 there have been over 7,200 renewable energy installations in Kent with a combined installed capacity of 24MW. There were only 1,000 in 2011. Solar photovoltaic systems predominate showing its suitability for the county. Renewable Heat Incentive (RHI) is now available for commercial projects on a similar basis to FIT. The availability of local biomass resources (e.g. wood) provides potential to access the RHI for heat projects in Kent.

Sustainable Drainage
The Flood and Water Management Act 2010 has promoted sustainable drainage within new development schemes. In response Kent County Council is supporting new landscape and development design and aims to encourage more attractive communities and enviromental enhancement. Several large schemes in Kent are embracing sustainable drainage design. The Conningbrook Lakes development, sponsored by Ashford Borough Council in 2012 is a scheme with high aspirations to deliver a country park and lakeside village. Through utilising swales and attenuation ponds within open spaces, there are multiple benets to residents from amenity, improved visual aesthetics and biodiversity combined with practical ood control.

Large scale renewable energy

Wind power, the most signicant contribution to power generation in Kent is led by offshore wind farms in the Thames Estuary. London Array (Phase 1) is at construction stage and, on completion in late 2012, will be the worlds largest installation. The 175 turbines will generate electricity for 485,000 homes annually. At Ramsgate Port both Vattenfall and London Array have new operation and maintenance bases representing a signicant industry presence and long term commitment with 125 new jobs. The port and nearby sites are becoming a hub with businesses attracted by wind farm developers/operators.

Construction of London Array Offshore Wind Farm 29

CONTRIBUTORS
A profession on a journey
RICS Royal Institution of Chartered Surveyors - is pleased to endorse the 2012 Kent Property Market report. By promoting the economic importance of land, property and construction with accurate county-level data we hope that this report raises the prole of the sector with policy makers and investors to the benet of property professionals and the wider economy. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the worlds most recognised professional property qualication. If property is your career then gaining RICS credentials is the best way to prove to employers and clients that you have what it takes. We offer routes to chartered membership for experienced professionals, recent graduates and associate membership for non-degree holders. RICS qualications are available in all the main sectors of residential and commercial property, planning and construction. In commercial property RICS credentials are widely recognised by the market place as the gold standard. Whether you work in investment, development, property asset management, transactional or professional advisory services there is a suitable pathway to RICS membership for you. As well as offering the gold professional qualication, RICS offers over 1,000 CPD events annually, including over 200 in London and the south east. RICS Training offers 55 courses, covering both business and technical skills, as well as an online academy. At a local level RICS membership offers invaluable networking opportunities, both for newly qualied and trainee members, as well as for more experienced members. Our Kent Local Association is an active group which focuses on offering inter-professional networking, site visits and social events for the 3,000 RICS members in the county. If you would like to nd out more, please contact the Chairman, Julian Scannell FRICS MCIArb on Julian.Scannell@watsonday.com. To nd out more about joining the profession, please email RICS Membership Business Development Manager, Alison Adams on: aadams@rics.org. Jerry Percy MRICS Chairman, RICS South East Regional Board

Expert Voice for professional landlords*

Condence in the property sector has seen a welcome upturn in the rst half of 2012, bringing with it the prospect of growth, according to the ndings of the recently released Commercial Property Condence Monitor survey by Lloyds TSB Commercial. In particular the survey highlights the strength of the private rental sector, and our team is helping our customers to grasp this opportunity. We have a team of 100 property relationship managers across Great Britain, each one managing a portfolio of property businesses (landlords, letting agencies and property developers). Our lending to the sector is 13 per cent up on the year and we want to develop new relationships with landlords for whom property management is their business. Our approach to our customers tends to differ from that of traditional buy to let (BTL) lenders in that we seek an in depth understanding of the business strategy, prots and cash ows as opposed to a formulaic loan to value (LTV), income multiplier approach. Our approach enables us to provide support to our customers throughout the economic cycle and we have a range of nancial products available to meet customers needs.

Although not always the case, we often nd that employed individuals for whom property investment is a side line are better suited to BTL lenders such as our sister company B M Solutions.

as recently launched Lloyds Funding for Lending offer from Lloyds Banking Group, which utilises the governments Funding for Lending Scheme, and will allow UK businesses to benet from reduced funding costs. Designed to boost demand and encourage investment, the scheme offers a one per cent reduction in the interest rate for new business loans and hire purchase, and will be available to all SME and mid market customers, regardless of the sector that they operate in. Additionally, the government-backed Enterprise Finance Guarantee (EFG) scheme is an ideal funding option for rms who have a viable business proposal, but lack the security to secure conventional funding. Theres a wide range of funding options available to businesses, so its worth discussing the lending available with your bank. Martin Levy Senior Manager, Lloyds TSB Commercial in Kent & East Sussex * professional landlords are dened as property businesses owning 10 or more investment properties

Sector knowledge
To help support our property customers, at Lloyds TSB Commercial our property managers have a sound understanding of the opportunities and challenges facing the private rental sector. Our team undergo regular training and by working closely with organisations such as NLA we keep our knowledge up to date and endeavour to represent the views of ours customers. Now could be the time to act in order to secure growth opportunities and we would encourage rms to take full advantage of the guidance and support available to them from both their lender as well as from business mentoring and development agencies.

Funding options
There is a range of lending products available to SMEs, from traditional term loans to newer funding options such

30

KENT PROPERTY MARKET 2012

6 Alexander Grove, Kings Hill (credit Liberty Property Trust)

Legal update
Property and planning have been in the headlines a lot this year, with the government looking for initiatives to stimulate the economy. Many consider that if the government gets it right, then changes to planning policy could help bring the country out of recession. Vince Cable has suggested that we take lessons from the 1930s and build our way out of the recession. The government has also suggested affordable housing holidays to allay concerns that policies to provide or pay for affordable housing stall developments.

In addition, the past year has seen the introduction of the National Planning Policy Framework (NPPF) and some local authorities take up the Community Infrastructure Levy (CIL). At the heart of NPPF is the presumption in favour of sustainable development. There is, however, no concise denition of the presumption and so we are likely to see differing interpretations from decision makers trying to nd the correct balance of competing interests and inuences. So far, CIL has been implemented by few local authorities, none of which are in Kent. CIL is unlikely to cover infrastructure costs in North Kent and East Kent, therefore the challenge is to nd innovative funding solutions in order to realise the opportunities there.

High streets and town centres have also been in the news following Mary Portass review at the end of last year. Some towns including Ashford, Dartford, Margate and Medway have beneted from bonus funds for projects aimed at boosting their retail sectors. This injection of cash is to be welcomed but, whether or not it xes the underlying problems of the decline of some high streets remains to be seen. It would be fantastic if those fortunate towns can make something of the money they receive sending the right signal to the rest of the country that by working together, stakeholders can make town centres and high streets once again attractive to businesses and consumers. Richard Ellard Partner, Thomson Snell & Passmore

31

St. Pancras International Station

ESSEX
Thames Europort Zeebrugge Dunkirk Vlissingen

5 5 10 Kms

10 Miles

International Deep Sea Routes Zeebrugge

LONDON

14 12 15 16 DARTFORD

A228

2 Ebbsfleet International Station

13

17

27
Thamesport

26

11 10 32 34 31

Sheerness MARGATE SHEERNESS WHITSTABLE HERNE BAY

A2 55

A226

6 30
2

GRAVESEND

28

1 3
M2 5

29

35 5

4
MEDWAY

23 3
Kent International Airport

22
RAMSGATE Ostend Ramsgate New Port

Rochester
A228

8 A27

A2

SITTINGBOURNE

Biggin Hill

M26
M25

2 2a

4
A20

18
M20

M2

33
7

37
A2 90

5
SEVENOAKS
16 A20

19

21
8

20
A26

MAIDSTONE

KENT
A20

7
CANTERBURY
A257

A291

FAVERSHAM

36

A25

M20

TONBRIDGE

9
TUNBRIDGE WELLS Ashford International Station
A2

1
ASHFORD

A2

A207

M20
8 A2

A299

24 25

A25

DEAL

38

A2

7
Dover

10

2 9

8
11 11a

DOVER

Dunkirk

A274

12

13

FOLKESTONE

Strategic Developments

Motorway Dual Carriageway Main Road High Speed 1 Domestic Rail Routes Ferry/Freight Routes Airport Ports
8
London Ashford Airport
A 9 25
A2 59

17 4 5 10 1 1

Business Park Mixed Use Regeneration Industrial Green Energy Park Science Park

CH

Ca

AN

is la

NE

TU

NN

EL

Boulogne

Calais

EAST SUSSEX

Motorway Junctions

FRANCE

32

KENT PROPERTY MARKET 2012

STRATEGIC DEVELOPMENTS
Map No.
1 2 3

Useage codes for strategic sites:

A1 Shops & retail B1 Ofces, light industry B2 General industrial

B8 Warehouses, distribution C1 Hotels D1 Education, crches

D2 Leisure R Residential Sui Generis Petrol station, car showroom

Scheme
Eureka Business Park Waterbrook Park Altira Business Park

Location
Ashford Ashford Herne Bay

Usage
B1 B1, B2, B8, Sui Generis B1, B2, B8

Contact
Knight Frank, 020 7629 8171 / Bidwells, 01223 841841 / Martine Waghorn, 01622 672233 GSE Waterbrook Ltd, 01233 501301 Kitewood Commercial, 01732 886962 / Core Commercial, 01892 834483 / Sinclair Clark, 020 7494 9399 Hanover Green, 020 3130 6404 / Watson Day, 01634 668000 / The Peel Group, 0161 629 8200 Medway Council, 01634 338171 Land Securities plc, 020 77024 3750 / PPS Group, 020 7529 1712 Hardmans & Co, 01304 373922 SW&P, 01303 226622 Valad & Benchmark Estates, 01622 669888 / Core Commercial, 01892 834483 / Caxtons, 01474 567666 Smiths Gore, 01732 879050 / Cluttons LLP, 01622 756000 / Watson Day, 01634 668000 Peel Ports, 0151 949 6000 Altus Edwin Hill, 01322 285588 / Savills, 020 7499 8644 Land Securities plc, 020 7413 9000 / CBRE, 020 7182 2016 Jones Lang LaSalle, 020 7399 5355 / CBRE, 020 7182 2492 CB Richard Ellis, 020 7182 2000 / Colliers CRE, 020 7935 4499 Cushman & Wakeeld, 020 7152 5777 Lafarge Cement, 01634 247156 Altus Edwin Hill, 01322 285588 / CBRE, 020 7182 2565 Knight Frank, 020 7629 8171 / Sibley Pares, 01622 673086 / Gallagher Group, 01622 716543

Website
www.eurekapark.co.uk

www.altirapark.co.uk

4 5 6 7 8 9

Chatham Maritime / Chatham Waters Chatham Centre and Waterfront Lodge Hill, Chattenden White Cliffs Business Park Hawkinge West Link Enterprise Park

Chatham Chatham Chatham Dover Folkestone Hythe

A1, B1, C1, D1, D2, R A1, B1, C1, R A1, R B1, B2, B8 B1, B8 B1, B2, B8

www.chathamwaters.com www.lodgehill.info www.whitecliffsdover.com

www.linkpark.co.uk

10 11 12 13 14 15 16 17 18 19

Queenborough/Rushenden & Neats Court Sheerness Port Crossways Point, Crossways Ebbseet Valley The Bridge ProLogis Park, Littlebrook Dartford North Site Northeet Embankment Aylesford Commercial Park Eclipse Business Park

Isle of Sheppey Isle of Sheppey Kent Thameside Kent Thameside Kent Thameside Kent Thameside Kent Thameside Kent Thameside Aylesford Maidstone

B1, B8, C1, Sui Generis B1, B2, B8 B1 A1, B1, D2, R B1, B8 B2, B8 B2, B8 B2, B8 B1

www.medwayports.com/sheerness www.crosswayspoint.co.uk www.ebbseetvalley.co.uk www.thebridgedartford.co.uk www.prologislittlebrook.co.uk

www.goodmanlogistics.co.uk www.eclipsepark.co.uk

33

STRATEGIC DEVELOPMENTS
Map No. Scheme Location Usage

Useage codes for strategic sites:

A1 Shops & retail B1 Ofces, light industry B2 General industrial

B8 Warehouses, distribution C1 Hotels D1 Education, crches

D2 Leisure R Residential Sui Generis Petrol station, car showroom

Contact
Liberty Property Trust UK, 01732 223426 / Altus Edwin Hill, 01322 285588 / Knight Frank, 020 7629 8171 / Hanover Green, 020 3130 6400 DHA Planning, 01622 776226 Rosefarm Estates plc, 01243 785151 / East Kent Opportunities, 01622 221380 East Kent Opportunities, 01622 221380 / Savills, 01732 789750 China Gateway International Plc, 01843 822444 Cascade PR, 020 7871 3565 Discovery Park Ltd, info@discovery-park.co.uk Medway Council, 01634 338171 / National Grid Property Ltd, 01926 654720 Hutchison Ports, 01394 604500 CBRE, 020 7182 2565 / Colliers CRE, 020 7935 4499 / Goodman, 0121 5068100 / Piers Pollard Chartered Surveyors, 01728 861989 Medway Council, 01634 338171 GVA Grimley, 020 7911 2121/ Watson Day, 01634 668000 Harrisons Chartered Surveyors, 01634 265900 / Watson Day, 01634 668000 CBRE, 020 7182 2000 / GVA Grimley, 020 7895 1515 / Savills, 020 7499 8644 Kent Science Park, 01795 411500/ Jones Lang LaSalle, 020 3147 6040 / Sinclair Clark, 020 7494 9399 GVA Grimley, 020 7911 2267 / Watson Day 01634 668000 / Harrisons Surveyors, 01634 265900 Medway Council, 01634 338171 George Wilson Holdings, 01227 263077 Quinn Estates, 01227 831212 / Cluttons LLP, 01622 756000 Quinn Estates, 01227 831212

Website

20 21 22 23a 23b 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Kings Hill Maidstone Medical Campus at Newnham Park EuroKent Business Park Manston Business Park China Gateway Manston Business Park Richborough Energy Park Discovery Park Isle of Grain London Thamesport Kingsnorth Commercial Park Rochester Riverside Temple Park, Strood Eurolink Business Park G Park Sittingbourne Kent Science Park Kemsley Park Strood and Temple Waterfront Estuary View The Foundry Business Park Deal Business Park

Maidstone Maidstone Ramsgate Ramsgate Ramsgate Sandwich Sandwich Rochester Rochester Rochester Rochester Strood Sittingbourne Sittingbourne Sittingbourne Sittingbourne Strood Whitstable Faversham Deal

A1, B1, D2, R B1, C1, C2 A1, B1, B8, D2 B1, B2, B8 B1, B2, B8 B2, B8 B1, B2, B8 B1, B2, B8 B1, B2, B8 B1, B2, B8 B1, C1, R B1, B2, B8 B1, B2, B8 B1, B8 B1 B1, B2, B8 A1, B1, R B1, C2 B1, B2, B8 B1, B2, B8

www.kings-hill.com www.maidstone-medical.co.uk

www.chinagatewayinfo.com www.richboroughenergypark.co.uk www.discovery-park.co.uk

www.londonthamesport.co.uk www.kingsnorthcommercialpark.com www.medway.gov.uk www.templeparkstrood.co.uk

www.gpark-sittingbourne.com www.kentsciencepark.co.uk

www.medway.gov.uk

www.quinn-estates.com/commercial www.quinn-estates.com/commercial

34

KENT PROPERTY MARKET 2012

CONTACT DETAILS
Written and compiled by: Additional contributors:

Kent County Council

For further advice, assistance and information on development opportunities, contact: Nigel Smith, Head of Development Investment Kent County Council, Invicta House, Maidstone, Kent ME14 1XX Tel: 01622 221866 Fax: 01622 691418 Email: reinfo@kent.gov.uk www.kent.gov.uk

Lloyds TSB Commercial

If youd like to nd out how you can benet from our sector expertise, please contact: Martin Levy, Senior Manager Commercial Kent & East Sussex Key Markets Lloyds TSB Commercial, 2nd Floor, 18 Week Street, Maidstone, Kent ME14 1RW Tel: 07764 287500 E-Mail: martin.levy@lloydstsb.co.uk Or visit our website: lloydstsb.com/property (Lloyds TSB Commercial is a trading name of Lloyds TSB Bank and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to 15M)

Cluttons LLP
Founded in 1765, Cluttons LLP is a leading rm of chartered surveyors providing an extensive range of property related services with a presence in the UK, Europe, Middle East, Asia Pacic and South Africa. The local ofce in Kent provides the full compliment of service lines. Alison Owen, Partner 26-28 Albion Place, Maidstone, Kent ME14 5DZ Tel: 01622 756000 Fax: 01622 695536 Email: info@cluttons.com www.cluttons.com Portman House, 2 Portman Street, London W1H 6DU Tel: 020 7408 1010 Fax: 020 7629 3263

Royal Institution of Chartered Surveyors

The leading professional body on all aspects of real estate, property, construction and associated environmental issues. Jeremy Percy, Chairman, RICS South East Regional Board Gleeds (London) 95 New Cavendish Street London, W1W 6XF T: 020 7631 7000 Email: jerry.percy@gleeds.co.uk

Thomson Snell & Passmore

Thomson Snell & Passmore is a law rm with a reputation for providing high quality, intelligent advice. We provide a legal service that is comprehensive, considered and condent. We build long-term relationships by encouraging a culture of respect, understanding and excellence. Richard Ellard, Partner Thomson Snell & Passmore 3 Lonsdale Gardens Tunbridge Wells Kent TN1 1NX T: 01892 510000 www.ts-p.co.uk

Locate in Kent Ltd

As the single point of contact for all companies looking to expand or relocate in Kent and Medway, Locate in Kent provides a comprehensive, condential and free business relocation and expansion advisory service. Paul Wookey, Chief Executive 35 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4DG Tel: 01732 520700 Fax: 01732 520701 Email: enquiries@locateinkent.com www.locateinkent.com

35

ACKNOWLEDGEMENTS
The compilers of this report are grateful for the assistance, information and data provided by the following organisations in London and Kent:
Altus Edwin Hill Atrium Surveyors Bidwells Bracketts Brian Cradick & Co Broadlands Chartered Surveyors and Property Consultants BTF Caxtons Clive Emson Colliers CRE Core Commercial Durlings Frogmore Property Company Ltd Gallagher Group George Wilson Holdings Ltd Glenny LLP Harrisons Chartered Surveyors Ibbett Mosely Karrisons Kent Science Park Liberty Property Trust UK Ltd Martine Waghorn McMeeking Chartered Surveyors Michael Parkes Pearson Gore Quinn Estates Ramac Holdings Ltd Rosefarm Estates Plc Savills Sibley Pares Smiths Gore Smith-Woolley & Perry Strutt and Parker Taylor Riley Turkey Mill Investments Ltd Valad and Benchmark Estates Visit Kent Watson Day WCR Property Ltd

Kent district councils:

Ashford, Canterbury, Dartford, Dover, Gravesham, Maidstone, Sevenoaks, Shepway, Swale, Thanet, Tonbridge & Malling and Tunbridge Wells Medway Council And a special thanks to Liberty Property Trust UK who provided 32 Tower View, Kings Hill for the launch of the report on 18 October 2012. We also thank Thomson, Snell and Passmore, Lloyds TSB, RICS and Maidstone Borough Council for their support.

Aldi, Maidstone (credit Gallagher Group) 36 KENT PROPERTY MARKET 2012

Waitrose, Kings Hill (credit Liberty Property Trust)

This document is also available in large print, Braille and audio format on request. If you, or someone you know, cannot read this document but would like to, please advise us of your/their specic requirements and we will do our best to provide the information in a suitable format or language. If you require this service, please contact 01622 221866.

Thanet Offshore Wind Farm 37

www.kentpropertymarket.com
This report has been carefully prepared. However it is intended for general guidance only and neither Cluttons LLP, Kent County Council, Locate in Kent nor RICS can guarantee that there are no errors or omissions. The information, forecasts and opinions set out herein should not be relied on to replace professional advice on specic matters. No part of this report should be published, reproduced or referred to without prior permission of Cluttons LLP, Kent County Council and Locate in Kent. Front and back cover shows: Discovery Park, Sandwich Cover printed on: Era silk 350gsm (50% virgin bre from FSCcertied forests and 50% recycled waste) Inner pages printed on: Era silk 200gsm (50% virgin bre from FSCcertied forests and 50% recycled waste) Designed and produced by: Glendale Creative Solutions (01322 868688) www.glendalecreative.com