PROJECTS
ALLENDALE ESTATES – A LANDED ESTATE WITH A STRATEGY FOR THE FUTURE.
Bywell Hall is situated in the Tyne Valley, Northumberland, and is the seat of Lord Allendale and the Beaumont family. Allendale Estates comprise a 17,000-acre multifaceted landed estate business.
Like many Estates, the Family & Trustees witnessed declining income streams from traditional rural activities coinciding with increased costs to maintain heritage assets and undertake the stewardship of a large rural landholding. There was a wish to establish a new strategic direction and diversify into new areas to increase the net income stream to enable future investment in historic and heritage assets.
Colin Davidson at Panovista Asset Management was appointed to provide an overview of the whole Estate, prepare a strategic plan, undertake the planned implementation, and provide an on-site CEO service to lead the team on a daily basis.
Colin Davidson has extensive experience with landed Estates as Commercial Property and Main Board Director at the Northumberland Estates for ten years. Colin's expertise allowed him to rationalise the various issues and align the objectives between the trustees, beneficiaries, and estates business.
Panovista developed a concise long-term business plan focused on driving new sustainable income streams through diversifying the Estate's assets. The change included revising the Estates Trust holdings and operating entities, selling non-core assets, securing external long-term fixed debt finance, commencing a planning and development master plan, and improving the existing net income across the current Estate. Significant investment is being made into offsite commercial property.
The most effective outcome for Allendale Estates was accessing an experienced specialist to review Allendale Estates, provide a strategic plan, and deliver the implementation. In addition, Colin Davidson provides a day-to-day CEO service, including performance against the business plan, budgeting, an overview and direction on accounting, Human Resources, Health & Safety and compliance, all on a cost-effective part-time basis on-site and integrated with the existing Estate team.
Wentworth Beaumont commented, "Colin brought significant experience and helped map out our long-term vision for the Estate. He helped conclude several ongoing discussions around our strategic direction, realisations and debt to enable capital investment, income growth and heritage and environmental goals. Colin brought significant experience to tailor a bespoke service to meet our needs. Colin and Panovista offer a uniquely flexible, hands-on service that would benefit many other Estates".
"We are very excited about the future. Having made the most significant changes to the business in a lifetime, we are at a unique point for Allendale. We are confident we can vastly improve the Estate to benefit the local community and meet our conservation and environmental goals".
BRADFORD ESTATES – A LONG TERM VISION TO LOOK AFTER TOMORROW.
Bradford Estates are a 12,000 acre landed estates business responsible for the sustainable stewardship of farming, forestry and property on the Shropshire and Staffordshire border.
Alexander, Viscount Newport, and the heir to the Earldom of Bradford can trace their family connections with the area back to the Norman Conquest in 1066. Alexander has recently returned from a career in London to head up Bradford Estates and, together with the Senior Management Team, have commenced a significant growth programme to invest in the long term future of the business for future generations and the wider community.
The team has been busy progressing various opportunities across a multifaceted landed estates business, streamlining the business, and putting new systems in place. During this period of rapid change, the team benefitted from some extra resources provided by Colin Davidson at Panovista Asset Management, who has brought extensive experience, having been the Property Director at the Northumberland Estates for the last ten years. Colin's expertise allowed him to rationalise the various issues and then align the objectives between the beneficiaries and the estates business.
Working with Alexander Newport and the Senior Management Team, they were able to work up a concise and straightforward Policy Directive and Governance Policy to guide the strategic growth of Bradford Estates. This first stage of this work will provide the base to build a consolidated 5-Year Business Plan.
The advantage of using Panovista Asset Management to undertake the project allowed the team to concentrate on the day-to-day business already in hand and provided a third-party review of Bradford Estates.
The most impactful outcome for Bradford Estates was clear and straightforward strategic direction provided by a roadmap to long term growth which the Beneficiaries, Trustees and Senior Management Team could operate to.
Alexander Newport commented, "Colin helped to align the objectives of the Beneficaries, Trustees and Senior Management Team in terms of capital investment, income growth and, heritage and environmental goals. Colin was able to work flexibly on an ad-hoc basis to meet our needs and helped establish the policy and strategy documents to guide the focus within Bradford Estates. Colin and Panovista offer a unique service that will benefit many landed estates businesses looking to grow.
We look forward to continuing our work together".
NORTHUMBERLAND RETAIL PARK, NORTH TYNESIDE.
Planning permission was sought in early 2019 alongside pre-lets of 55,832 sq. ft to B&M Stores and JD Gyms. The total development cost was £6.3m with a resultant end value in excess of £10m representing a £3.7m capital uplift and a secure annual rental income of £600,947 per annum. This phase of Northumberland Park followed the development of a Toby Carvery, Costa Drive Thru and Aldi Store on this prominent roadside site.
MERRINGTON INDUSTRIAL ESTATE, SPENNYMOOR, DURHAM.
Extending to 17.3 acres (7.17 ha) the freehold estate was bought at auction in 2019 for £1.75m. The estate was re-developed at a cost of £2.6m to include extensive demolition to create large yards and a new roof on 75% of the retained buildings. The total project cost was £4.35m. The passing rental increased from £200,000 per annum to £585,000 per annum representing a capital value of £6,475,000 and capital uplift of £2,125,000.
QUAYSIDE HOUSE, NEWCASTLE UPON TYNE.
Bought in 2017 for £11,250,000 the property had an annual rent roll of £535,087, through a series of asset management initiatives that included, a new roof covering and refurbished toilets throughout the two vacant floors were successfully let. As of May 2020, the property had a headline rent of £995,725 per annum with an ERV of £1,137,926 and a book value of £15,950,000. Annual income has almost doubled whilst the capital appreciation is in the region of £4.7m.
EARLS TRADE PARK, TEAM VALLEY, GATESHEAD.
Purchase due diligence and re-development of the part freehold and part leasehold site, re-negotiated the ground lease, demolition and construction project management. The 9 new trade park units extending to a total of 9,877 sq. ft (917.6 sq.m) met occupier demand and were quickly let on completion establishing a new headline rental of £8.50 per sq.ft. (£91.49 per sq.m)
WILLOWBURN RETAIL PARK, ALNWICK.
Following the purchase of a wider piece of land we sold part of the investment and retained a site to create an extension to the existing retail park adjacent to the A1 in Alnwick, Northumberland. The first phase of the scheme extending to 36,100 sq.ft (3,353.79 sq.m) progressed through planning. Pre-lets were negotiated with M&S, Turnbulls and Starbucks. The development was completed and trading in Winter 2019/2020.
VROOM CAR SUPERMARKET, TYNE TUNNEL TRADING ESTATE, NORTH TYNESIDE.
Site identification and purchase. The site became subject to a Development Purchase Order from Highways England for the new A19/A1058 junction improvements. Working with the occupiers and Highways England we successfully agreed to a compensation package and re-developed the site, to create a new showroom for Car Supermarket and a new facility for Tesla.
KEEL ROW SHOPPING CENTRE, BLYTH
Secondary retail is struggling and landlords have to do what they can to maintain footfall and ensure a centre is vibrant, whilst appealing to the ever-changing market.
In order to reduce void holding costs we developed a scheme to re-purpose a void unit into smaller, easy in easy out retail pods.
The holding costs for the unit was £47,200 per annum, the cost to create 7 pods was £90,000. All units were fully let within 2 weeks of completion, reversing the holding cost to zero and giving the landlord an annual rent of £25,000 per annum. Payback on the investment being 1.5 years. generate a gross annual rent of £38,740 per annum and significanly reducing the landlords holding costs.
SCHWABACH, NUREMBERG, GERMANY
Asset management of a mixed-use industrial and retail scheme extending to 294,232 sq.ft. (27,335.04 sq.m)
Occupiers include DIY giant, Hornbach, fashion retailer Tedi and a significant distribution facility for UVEX.
Working with local advisors we undertook the asset and property management of the site. We have developed an ongoing asset strategy for the wider site that involved the purchase of some neighboring land. We successfully agreed a surrender on one unit and secured a new letting on more favorable terms to the landlord.
We have further experience in identifying and investing in syndicates to develop industrial investments with established partners in Germany.
SATIGNY BUSINESS PARK, MERYIN, GENEVA.
Due diligence and acquisition of the site extending to over 400,000 sq.ft (37,161.21 sq.m) was concluded in 2015. Various asset management initiatives were undertaken including re-tendering and moving the property management to a new provider and tidying up a number of lease and property management issues.
Panovista has experience investing in and managing property in and around Geneva, Switzerland.
WYNYARD BUSINESS PARK, WYNYARD, HARTLEPOOL.
Purchase due diligence and asset management of a 150,000 sq.ft (13,935.45 sq.m) multi-tenanted business park. Various initiatives to improve net rent, including reduction of costs and overheads and the promotion of vacant space to meet local occupation requirements. Outline planning permission for a supporting pub/ hotel and retail parade.
CAWLEDGE A1 SERVICES, ALNWICK, NORTHUMBERLAND
Development and leasing of a roadside, service park constructed on a highly visible site, the previously undeveloped site provides long term income to the land owner. The successful asset incorporates the 53 Bedroom Hogs Head Inn a McDonalds Drive Thru and a modern BP Petrol Filling Station with integrated Costa Coffee.
UK SOUTH EAST INDUSTRIAL PORTFOLIO. HIGH WYCOMBE, MILTON KEYNES & WATFORD.
Effective identification of assets and the management of three UK, South East Industrial Estates, in Milton Keynes and Watford, including the construction of an additional 27,000 sq. ft (2,508.38 sq.m) unit on unused yard. Bought between 2012 and 2015 and sold in 2018 the investment resulted in significant rental and capital appreciation. The capital uplift on sale was £17 m, representing a 55% increase.