2009December February January IS CHRISTMAS COMING EARLY FOR SOME RETAILERS AS CROSS-BORDER SHOPPERS FLOCK NORTHWARDS? Although retailers in Northern Ireland are facing the prospect of another tough year in business in common with their regional counterparts across the UK, many anticipate that the growing number of cross-border shoppers will trigger a significant spike in pre-Christmas sales figures. Despite the Irish government’s appeals to consumers to remain loyal to their own retailers and substantial price cuts introduced by companies such as Tesco, it is clear that the potential savings on offer north of the border coupled with favourable exchange rates are simply too tempting for the Republic’s shoppers to resist. Analysts estimate that cross-border shopping will cost the Irish Exchequer something in the region of 430 million Euros (£388 million) this year alone in lost tax revenues, and while there have been representations from interested parties seeking reductions in VAT and Excise duties, such pleas seem to have been ignored. Recent results from market research company, TNS Worldpanel, reveal that almost 16% of households in the Republic of Ireland are now travelling north for their grocery shopping. This translates into a staggering 250,000 households up from 200,000 households making the cross-border trip during 2008. Statistics also suggest that Northern Irish stores have captured 2.6% of the Republic’s grocery trade worth an estimated 900 million Euros (£810 million) and as much as 10% of off-sales trade worth 260 million Euros (£234 million). Admittedly, the Republic of Ireland has the highest excise duties and VAT within the EU, which goes a long way towards explaining the latter figure. In contrast to previous Christmas periods when Irish shoppers confined their shopping trips mainly to the border towns, traffic congestion and overcrowded stores in these towns means that we are now seeing a deeper penetration into the province, which is benefitting towns and cities including Armagh, Omagh, Craigavon and Belfast. For instance, The Quays Shopping Centre in Newry has recently introduced pay car parking in an attempt to ease congestion at the Centre. Meanwhile, on-going infrastructural improvements between north and south are also helping to make other parts of the province more accessible. Indeed, it is estimated that a fifth of all shoppers in Belfast city centre now come from southern Ireland, a figure which rises to one in three shoppers at weekends. Figures reveal that Belfast had 1.1 million visitors from the Republic during 2008, an increase of 200% on 2007.  Pic: The Quays, Newry Obviously, revenue from Irish shoppers is benefitting the UK multiples to a greater extent than indigenous retailers in addition to the UK Exchequer, however, this revenue is helping to sustain local employment at a time when retailers across the UK are shedding jobs. There are also positive spin-offs for our tourism and hospitality sectors with figures released by the Northern Ireland Tourist Board stating a 14% increase in visitors from southern Ireland since 2008 translating into an average stay of 2.5 nights - a welcome economic boost for both sectors. Looking ahead, it is unlikely that VAT rates increasing to 17.5% in the New Year will have a detrimental impact upon the flow of cross-border shoppers, particularly while VAT rates in the Republic of Ireland remain at their current level of 21.5%. In my view, it would take something fundamental such as a major currency correction or a radical re-structuring of tax or some other fiscal re-alignment to stem the tide of “euro tourism”. In the meantime, some sections of our retail trade, especially those specialising in food, alcohol, furniture and electrical goods can prepare themselves for a better Christmas trading period than might otherwise have been expected during these recessionary times. For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 November RESIDENTIAL LAND ATTRACTS STRONG INTEREST FROM LOCAL DEVELOPERS Property consultants, Osborne King, have sold land zoned for residential development outside Ballymoney, Co. Antrim for £1.35 million on behalf of the Northern Ireland Housing Executive.  The sale attracted keen interest from a number of cash purchasers according to Gareth McGimpsey from Osborne King who acted for the Housing Executive: "We were very encouraged by the level of interest in this particular site. The fact that it is surrounded by existing residential housing and benefits from close transport links to both Ballymoney town centre and other urban areas including Ballymena and Coleraine, made it an extremely attractive development proposition. The sale price itself represents excellent value for money, particularly since property still offers potentially the best returns when compared with other asset classes. So far this year, we’ve sold two sites on behalf of the Northern Ireland Housing Executive and have a number of additional Housing Executive sites on the market currently, which are also attracting high levels of interest". A local building firm has acquired the site at Carnany on the Ballymena Road, which is located southeast of Ballymoney town centre and will be applying for planning consent in the near future. For further information, please contact: Gareth McGimpsey - Osborne King T: 028 9027 0042 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 INVESTORS CONTINUE TO ACQUIRE SOLID INVESTMENT PROPERTIES Library Court, a commercial development occupying a prominent position on the Upper Newtownards Road, Belfast has been sold to a local private investor. Situated on the corner of Eastleigh Drive and the Upper Newtownards Road, the property comprises eight retail units at ground floor level in addition to a first-floor library, which is held by way of a long leasehold. A customer car park containing 25 spaces is located to the rear of the property. The development is fully let and tenants include Belfast Education & Library Board, Youth Justice Agency, Muse Hair and the Streat. The scheme has a rental income of £132,000 per annum and benefits from both a strong vehicular and pedestrian traffic flow.  Pic: Library Court While acknowledging that economic conditions are still having an adverse effect on commercial property in general, Andrew Coggins, Investment Director with Osborne King who acted for the vendor, commented: "Certainly, the market is experiencing a protracted period of re-alignment mainly in terms of price adjustment. Nevertheless, this is providing enhanced opportunities for investors, particularly those who are less highly geared and who can take advantage of a yield shift in the market. Granted these are challenging times, however, I am convinced that local investors will continue to seek out and acquire solid investment properties such as Library Court that offer secure long-term income and strong yields on a medium to long-term basis, which is essentially how property as an asset class should be regarded". David McNellis from Lisney, acting for the purchaser, added: "There is certainly value in the current market to acquire properties such as Library Court, which offer well-secured income and is strategically located within a strong suburban retail pitch". For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 INVESTING IN COMMERCIAL PROPERTY STILL OFFERS THE POTENTIAL FOR GREATER RETURNS THAN ALTERNATIVE ASSET CLASSES After a period of unprecedented growth, no one could deny that the commercial property market has experienced one of the lowest levels of activity since the beginning of the decade. As we approach the end of another challenging year, the question we must ask ourselves is whether the market is seeing signs of recovery. Alternatively, will it be more of the same during 2010? There is no doubt that for much of 2009, the banks' lack of liquidity meant that they had limited funds available and that investors, due to the drop in the value of assets and loan to value ratios, were not subsequently in a position to invest. In recent months, we have noticed a shift in sentiment as investors not restricted by the lack of bank finance are coming back into the commercial property market tempted by the opportunity to acquire good-quality product at competitive prices. Institutional investors, pension funds, trusts, cash-rich private companies and individuals are taking advantage of the fact that some sectors of the market, particularly prime property, have experienced a bottoming-out of yields and are injecting capital once more into this sector. Take last month's commercial auction held in London by Allsops, one of the UK’s leading auctioneers and property consultants, which achieved a 93% success rate for its organizers who hailed it as their most successful October auction since 2006. A total of £83.2 million was raised on the day with lots achieving 15% on average above their reserve prices. Interestingly, the largest lot sale price achieved was £3.3 million with the average lot size coming in at around £660,000. Overall, Allsops report total auction sale proceeds for this year as amounting to £369 million, which represents a 35% increase on 2008 sales figures. The company attributes this increase to a combination of cash-rich buyers coupled with a restricted supply of properties and realistic pricing, which it claims has helped stimulate sales during the past year. Closer to home, we are seeing a distinct resurgence as private local investors come forward to acquire good-quality stock. Most recently, a number of sale and leaseback opportunities brought to market by one of the province's main clearing banks shows that that strong prices are still achievable - indeed, some of the deals in which we have been involved this year support this theory. Notable deals include the sale of a new-build Tesco Food Store in Enniskillen for £12.75 million, a local investor's acquisition of premises within a landmark new town centre scheme in Barking, Greater London in a deal worth £5.3 million and the sale of a property currently let to M&S Simply Food in Coleraine for over £1.75 million. All of this is very encouraging: the fact remains that debt buyers and not simply cash-rich buyers need to come back into the market if it is truly to re-gain ground. Therefore, we do need the banks to start allocating funds both for long-term investment and development projects currently on hold. From a broader perspective, the key to future sustainable investment is how the shift in the property market that we have witnessed over the past eighteen months is handled. There is no doubt that existing property owners and investors will have to focus extremely hard on managing their assets in order to maximise returns. Now more then ever is the time for sound advice and strategic asset management, an area in which we have been extremely proactive over the past few years. While loath to strike more than a note of cautious optimism regarding the market bouncing back, I am convinced that the opportunity to invest in quality property that offers considerably better returns than other investment vehicles, particularly bank deposit accounts, will stimulate activity levels and that investors will start to come back in greater numbers. We could do well to heed the words of the man lauded as "the world's greatest moneymaker", Warren Buffet, who once said, "Be greedy when others are fearful and fearful when others are greedy". Taking a bite out of the market is infinitely preferable and ultimately more profitable than nibbling around its edges, surely? After all, we should not lose sight of the fact that property historically has been and looks likely to remain a preferred asset class and, as such, is a solid investment vehicle for those who have access to funds be they individual or institutional investors. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 October 
MARKET CONSOLIDATION PRESENTS OPPORTUNITIES FOR INVESTORS In recent years, the performance of the Northern Ireland commercial property market has become closely aligned with the banking sector due to the dependence of the majority of local investors on bank finance. It is therefore no surprise that the current banking crisis has resulted in a significant reduction in investment and development activity across all sectors. Currently we have reached a stage where the banks' lack of liquidity means that they have limited funds available and investors, due to the drop in the value of assets and loan to value ratios, are not in a position to invest. These two things combined mean that the market is experiencing a low level of activity, levels that we have not witnessed for over a decade. However, there are some investors who are not restricted by the lack of bank finance albeit these would be in the minority and include institutional purchasers, pension funds, trusts and cash-rich investors. The deals that Osborne King have been involved in so far this year reflect these market conditions with investment properties offering long term, secure income purchased by cash-rich investors or trust funds. They include the sale of a new-build Tesco Food Store in Enniskillen, which changed hands for £12.75 million and premises within a landmark new town centre scheme in Barking, Greater London, that we acquired for a local investor in a deal worth £5.3 million. Other recent deals include the acquisition on behalf of a trust of a new Marks & Spencer Simply Food Store in Dunblane, Scotland, for c. £5.75 million and the sale of a retail property in Coleraine for a sum exceeding £1.75 million. In addition, First Trust Bank has recently released a number of sale and leaseback opportunities, which have been received well in the market and have attracted strong bidding.  Pic: Tescos Enniskillen As Irish banks face the prospect of the National Asset Management Agency (NAMA) coming into force and UK banks try to regroup, it is likely to be some time yet before a reasonable level of liquidity returns to the market and certainly not before the second half of 2010. It is still unclear what the precise implications of NAMA will be, except that it will allow distressed assets to avoid fire sales therefore controlling market conditions going forward. The scale of the challenge is reflected in the fact that an estimated €4.9 billion (£4.5 billion) worth of property assets in Northern Ireland that were financed by Irish banks look set to fall within NAMA’s remit. This is a massive sum and would roughly equate to 22,500 houses (assuming a Northern Ireland average house price of £200,000), which in effect would be the entire housing stock in a medium sized town in the province. Nonetheless, regardless of the efforts made under the auspices of NAMA or through initiatives engendered by our own government, the reality is that whatever happens, property values will still be depressed for the near future. This will limit activity for most of those already committed to significant property investment, but will also present opportunities for others, who are already beginning to dip their toes into the market. From Osborne King's perspective the key to future sustainable investment is how the shift in the property market that we have witnessed during the past eighteen months is handled. Existing property owners and investors will have to focus extremely hard on managing their assets in order to maximise returns and a key element to this is obtaining the appropriate medium to long term advice in respect of their asset management strategies. Now more then ever is the time for sound advice and strategic plans. New investors or people who previously were less committed to property investment now have genuine opportunities to acquire good quality product at realistic prices. In addition, as assets are developed and enhanced it follows that activity levels will increase and investors will start to come back in greater numbers. Let's not forget that property has been and is likely to remain a preferred asset class. For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 OPEN COLLEGE RE-LOCATES TO HIGH-SPEC OFFICES Open College Network Northern Ireland (OCNNI) has moved its headquarters to new, high-specification offices at Heron Road, Belfast in a deal negotiated by Osborne King. OCNNI was based formerly on the Upper Newtownards Road, and the decision to move was prompted primarily by organisational growth according to Chris Sweeney from Osborne King who negotiated the letting on behalf of OCNNI. He stated: "Essentially, OCNNI had outgrown its existing premises and were looking for accommodation that allowed for easy access from both the city centre and the airport. The new offices also had to be fully compliant with current Disability Discrimination legislation in order to ensure maximum client accessibility. We spent a lot of time and effort in trawling through a number of possibilities before coming up with what we considered was the best possible fit for OCNNI. From our perspective, out-of-town business parks remain an attractive proposition for occupiers mainly due to on-site car parking and excellent transport links". He added: "A large part of our role as letting agents also focused on negotiating the best possible lease and terms for OCNNI, helping to arrange fit-out costings and, generally, advising them on other practical matters pertaining to their re-location from their former premises". Open College Network Northern Ireland is part of the UK's leading credit-based award body and was established to recognise the achievements of learners across Northern Ireland. Chief Executive Officer, Brendan Clarke, remarked: "This is a fantastic opportunity for OCNNI to ensure that all of our partners, schools, Further Education colleges, employers, voluntary and community sectors are able to ensure that the people they support have opportunities to access flexible learning in bite-sized chunks and link to the Qualifications & Credit Framework. This investment means that we will be able to support our learning centres and the learners more effectively as we seek to make Northern Ireland an even better place to live, learn and work”. Open College Network Northern Ireland has a client base of over 350 organisations and has registered almost 150,000 learners in a range of areas including the private and public sectors and the Further Education, Voluntary and Community sectors. For further information, please contact: Chris Sweeney - Osborne King T: 028 9027 0000 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 JACKS OF LONDON LAUNCHES FIRST NORTHERN IRISH STORE Jacks of London, a revolutionary new concept in men’s hairdressing and grooming, has opened its first store in Northern Ireland report letting agents, Osborne King. Occupying a prime city-centre location at Fountain Street, Belfast, Jacks of London promises customers "the ultimate barbering experience". This includes a complimentary beer on arrival, the opportunity to play computer games, surf the web, watch TV on a dedicated sports wall while waiting for a haircut or traditional wet shave in masculine, 'bachelor pad' style surroundings. Local businessman, Neil Murphy, has acquired the store on a franchise basis and has put his own personal stamp on a highly successful format that has been established across southeast England. The Belfast store incorporates features such as an industrial-type ceiling and exposed brick work that complement the dark wood flooring, leather sofas and vibrating massage chairs common to existing Jacks of London stores. Commenting on his decision to open a Jacks of London store in Belfast, Neil Murphy said: "Currently in Belfast you have the choice of either basic barbershops or an overpriced salon, which many men find an uncomfortable experience. Jacks will introduce an entirely fresh approach to male grooming in Belfast from the moment customers walk in the door – it is a unique experience for men and they really won’t find anything like it in the city." Andrew Nixon who was involved in letting the unit to Jacks also remarked: "It’s always encouraging to see new stores opening for business especially since this has been a most challenging year for the retail trade generally. That said, there will always be a demand for high-quality premises in a prime retail pitch and Jacks has certainly chosen well in terms of its first store location within the city centre, which is reflected in the striking design and layout of the store. Neil and his team are also offering a radically different concept in terms of men’s hairdressing and personal grooming, which both enriches and broadens the local retail offer. Belfast needs to attract new retail brands such as Jacks if it is to position itself as a dynamic and cosmopolitan city able to compete effectively with our regional counterparts."  Pic L to R: Jenny - Jacks of London, Andrew Nixon - Osborne King and Neil Murphy - Jacks of London Aiming to attract a diverse range of customers, Jacks operates a student discount scheme on certain days in addition to a corporate loyalty card scheme offering 20% discount to registered members from Mondays to Fridays while holders of the company’s "Smoothie" card are entitled to have every fifth traditional cutthroat shave for half the full price. Employing five full-time staff at present, the store is open seven days a week, 8.00 am to 8.00 pm on weekdays and operates a live "Queue Watch" webcam enabling customers to check on how busy it is before visiting (www.jacksoflondon.co.uk). For further details, please contact: Alana Simpson - Osborne King T: 028 9027 0020 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275
DEMAND STILL STRONG FOR SOLID INVESTMENT OPPORTUNITIES Osborne King has sold a property in Coleraine currently let to Marks & Spencer on behalf of a private local investor for a sum exceeding £1.75 million. Trading under the Simply Food banner, the store which is located at 13, The Diamond in the town centre and extends to circa 6,700 sq ft, is leased to Marks & Spencer until 2030.  M&S Simply Food, 13 The Diamond, Coleraine Commenting on this recent transaction, Andrew Coggins, Investment Director with Osborne King said: "This property has a number of strong attributes as a solid investment opportunity offering long-term, secure income and a strong covenant. The store is also superbly positioned within the town centre to meet the needs of the local population and an increasing number of visitors to Coleraine plus it benefits from the municipal car parking facilities to the rear of the premises. As the regional centre of the north-east, Coleraine serves a catchment population of over 200,000. Furthermore, the borough of Coleraine accounts for a significant proportion of the annual total tourism spend in Northern Ireland playing host to up to two million visitors each year." Continuing, Andrew Coggins added: "Owing to the lot size, this property attracted a number of cash-rich investors, which shows that there is still an appetite to buy good-quality property in Northern Ireland. Investors understand that property provides, in many cases, a stronger return than other asset classes and is, therefore, still a worthwhile investment vehicle." Marks & Spencer has a total of eight Simply Food stores in towns and cities across Northern Ireland that includes Belfast, Armagh, Cookstown and Londonderry. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0022 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 CHALLENGING TIMES PRESENT OPPORTUNITIES FOR OFFICE OCCUPIERS The Northern Ireland office market has experienced a slow start to the year with limited transactions despite a number of active requirements both from the private and public sectors. These requirements continue to concentrate around the greater Belfast Area. The Belfast office market will see new modern developments being finished before the end of 2009 including OBEL, The Boat, Clarence West, The Soloist and Lanyon Plaza creating c.250,000 sq ft of Grade A office accommodation. This injection of Grade A accommodation presents the ability to satisfy the majority of the active requirements currently in the market place.  Clarence West Offices Whilst market conditions remain difficult, there is demand for office space, however, there still exists a degree of nervousness within both the private and public sector and a reluctance to re-locate due to economic factors irrespective of their need to do so. The current market is providing tenants with the ability to secure favourable terms at lower rents compared to 2006/2007 levels. Overall, this presents the potential occupier with lower occupational costs and therefore makes re-location or expansion more economically viable. From a capital value perspective, if potential purchasers are able to acquire office space at lower levels, this will represent good value for money. It is important that landlords and vendors adopt a more realistic approach in today’s market. Landlords, in particular, have to become increasingly flexible in terms of lease structures as well as offering incentive packages. If they do, there is a greater likely hood of securing a tenant and more importantly a revenue flow. In these challenging times whether you are a landlord or tenant, sound advice is crucial in order to secure the best deal possible. For further information, please contact: Michael McCafferty- Osborne King T: 028 9027 0038 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 September LICENSED PREMISES - FACING THE FACTS A question I am often asked is "how are pubs selling". At the present time it would be foolish of me to paint a rosy picture and suggest that the market is great and is unaffected by the current economic climate, the smoking ban, the general increase in overheads and the competition from off sales. Most publicans would accept that their business has been affected and that it is a struggle to maintain their turnover of 2 years ago never mind trying to increase it. For those who are relying on a drinks only business it has, in most cases, led to a declining turnover and only those who have concentrated on food sales have managed to make up any for decrease. Competition from off sales is a serious threat, with many customers chosing either to stay at home and drink and come out later or not come out at all. There is little doubt that times have changed; those pubs which are experiencing a drop in turnover will not be surprised that this, in turn, will affect the value of their premises. However, it is comforting to know that the trade is not having the same problems as the residential market. The other aspect of the market, which has not helped, is the lending policies by banks that appear unwilling to entertain loan facilities unless it is well secured on a loan to value basis. I am sure some of you have had personal experience, or have heard stories that banks are actively involved in restructuring your existing loan facilities together with the associated costs and being selected on new loans. A further source of funding in the past has been the breweries, which have been willing to take out a second charge against the property, but these facilities have now also virtually dried up. However, the current lending policies by the banks apply to all businesses and are not restricted to the licensed trade On a more optimistic note, the advantage of a good pub is that accounts will show that there is a profit to be made on a weekly basis and the banks are not relying on a speculative commercial development, which may never sell. Within the last few months I have sold the Wildfowler in Greyabbey and the Chestnut Lodge in Moira and with the right approach deals can be done.  The Wildfowler, Greyabbey sold earlier this year  The Chestnut Lodge, Moira sold earlier this year It will be interesting to see the outcome of the situation with Ultimate Leisure, who have 50 premises throughout the UK and have recently gone into Administration. The pubs they own in Northern Ireland are the Advocate, Potthouse, Bambu Beach Club and Irene & Nans. Only Irene & Nans is freehold and the Potthouse and Advocate with rents of £185,000 and £80,000 per annum respectively may prove difficult to sell. Over the last 9 months pub sales have been few and far between, which makes it difficult to accurately assess where the market values stand. It would be fair to say, however, that the days of 2 times net turnover are long gone. In the past a number of pubs have been sold for alternative use, for either commercial or residential development, but unfortunately this type of sale has disappeared. Whilst not wishing to cause alarm, I am trying to give a balanced view of the current market and realise that the economic climate will not last forever and look for solutions to temporary problems. My advice for those thinking about selling is to get your accounts sorted out; showing the current level of turnover; not figures that are 2 years out of date can show that you have a business that is worth buying - there are still purchasers in the market and banks who will provide finance. Good pubs will always sell. For further information, please contact: John Martin - Osborne King T: 028 9027 0018 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 MOTHERCARE RELOCATE TO NEW PREMISES AT NEWTOWNABBEY Mothercare have now completed their move at Newtownabbey to larger premises at Longwood Retail Park. The new store extends to approximately 13,000 sq ft and opened at the end of June. The unit is more than twice the size of their previous store in Abbeycentre and offers the retailer’s full range of nursery, clothing, prams, car seats and toys. In addition, specialist car seat fitting is available with dedicated parking bays adjacent to the shop entrance. Mothercare joins existing tenants at Longwood Retail Park, which include Matalan, T K Maxx, Homebase, Pets at Home, Heatons, Sports Direct, JJB Sports, Reid Furniture and Creations. The landlord is local developer, Corbo Ltd, who along with Letting Agent, Osborne King, negotiated the deal.  Pic L to R: Roger Craig of Corbo Ltd and Colin Mathewson of Osborne King Roger Craig of Corbo Ltd comments - "We are delighted that Mothercare have joined the line-up at Longwood Retail Park. We have specifically identified them as a key retailer for the park providing an excellent product range that was complementary to other retailers already trading within the development." Colin Mathewson of Letting Agents, Osborne King, comments - "Mothercare have created an exciting retail environment with an extensive product range ideal for their target market . The size of the store and the convenience of on site car parking has already made the store extremely popular." Osborne King acted on behalf of the landlord, Corbo Ltd and CBRE (London) acted on behalf of Mothercare. For further information, please contact: Colin Mathewson - Osborne King T: 028 9027 0003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 August HOLDING, NOT FOLLOWING, IS THE NAME OF THE GAME FOR PROPERTY INVESTORS The Northern Irish commercial property market continues to face significant challenges that have led to a notable downturn in transactional activity across all sectors. A reluctance primarily on the part of the banking sector to lend new money into property investment purchases at attractive rates has reduced investment activity. Clients are now concentrating instead on maximizing the value of their properties in preparation for when the market recovers. Holding property on a short-term basis was the main modus operandi for many investors during what is now largely regarded as the “boom” years. Attitudes, however, have shifted considerably over the past year, and the majority of property owners now acknowledge the fact that property should rightfully be viewed as a medium to long-term asset. Obviously, this has required an adjustment to clients’ mindsets, with property consultants having to guide investors accordingly. Strategic property management (also known as asset management) is crucial in order to ensure that investments continue to perform and achieve maximum returns. Helping clients to develop effective asset management strategies features prominently within Osborne King’s business model and is something that we are keen to promote as the main tool to counter the decline in capital values and yields. Successful strategic property management requires a clear vision and action plan to maximise the assets performance within a clearly defined structure that is kept under regular review. Elements of an effective asset management strategy include: - Refurbishment and redevelopment opportunities - Reviewing current tenant line up with a view to improving tenant mix - Identifying opportunities to add additional income streams - Re-gearing leases - Maximizing rent reviews and lease renewals - Exploring re-branding and marketing opportunities - Offering more favourable lease or rental terms We encourage clients to consider all of the options open to them and make recommendations based on what will maximize value for that particular property or portfolio. Obtaining the funding necessary to implement measures that will maximize the value of property can be equally challenging especially with the current credit shortage. Lenders have become increasingly rigorous in their demands for detailed information from property investors regarding funding arrangements, which is why experienced commercial property consultants are ideally placed to manage and expedite the reporting process. Furthermore, companies such as Osborne King are structured into specialist divisions allowing us to pull in expertise and skills from across the company thereby offering a multi-disciplinary approach to strategic property management. Preparing for the inevitable upturn is something that the savvy investor will be taking into account irrespective of how difficult the market has been. Recently, there have been signs of market transactions coming to the fore albeit these have tended towards small lot sizes or properties with well-secured income and/or a strong tenant line-up. For instance, auction sales throughout mainland Britain have held up well post- credit crunch with auction houses such as Allsop’s reporting sales rates of up to 79% during the first half of this year. Meanwhile, property consultants, Jones Lang La Salle’s commercial property auction sale rate actually increased to 77% during the first quarter of 2009 compared with an overall sale rate of 64% achieved during the last quarter of 2008. Demand has also increased for long secure income investments, such as food stores or Government let buildings, with significant competition now prevalent in the market for such opportunities. Property yields for these prime investments have sharpened over the last 3 – 4 months, with typical prime yields now reflecting c. 5.5%. Undeniably, conditions remain challenging for commercial property. Last quarter saw a slight improvement in retail activity while occupier demand within the office sector also improved slightly. There is no doubt that economic recovery will be a slow and painful process, nevertheless, we believe that opportunities exist for investors to acquire good quality product, which will deliver strong returns as opposed to holding money on deposit earning little in the way of interest. Property will remain an integral and important element within the Northern Irish economy provided that lessons have been learned, and that investors and those who advise them continue to observe the fundamentals of property investment – that it is a solid, medium to long-term asset class and no longer a “get rich quick” proposition. For further information, please contact: Robert Ditty- Osborne King T: 028 9027 0025 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 ANTRIM TO REAP REWARDS OF MAJOR DEVELOPMENT The Antrim area has seen a huge transformation over the past 5 years, primarily as a result of the opening of Junction One and its continuing success and expansion. Junction One now boasts brands such as Nike, Next, Adidas, Billabong and Marks & Spencer and the retail park includes a Lidl, Homebase, Burger King drive thru and Holiday Inn Express. The recent announcement of Asda finally getting approval for their new superstore beside Junction One has generated tremendous new interest in the Antrim area. The Asda Superstore, scheduled to open early in 2010, will be the company’s largest store to date in Northern Ireland comprising a total sales area of 54,000 sq ft in addition to a restaurant and 600 car parking spaces. Osborne King have been working closely with ACI Ltd, part of the Kennedy Group of Companies, on developing their extensive portfolio of land and existing buildings adjacent to Junction One at Enkalon Business Park. Enkalon Business Park has excellent transport links and is located approximately ½ a mile outside Antrim Town Centre and is within a 14 mile radius of Belfast, accessed from the Dunsilly Roundabout. Enkalon Business Park encompasses a range of schemes, both industrial and office use. It includes new business units ranging from c. 1,000 – c. 3,000 sq ft in Randalstown Road Business Park. The final tranche of units has now been released, offered on a For Sale or To Let with an option to purchase basis. Current occupiers include Oriel Training Services, CKOS Kitchens, Small Bikes NI and DH Business Services. Construction work is due to begin within the next three months at Enkalon Office Park, also within Enkalon Business Park, which will result in the creation of c. 31,500 sq ft in total of new office space. The first phase of Enkalon Office Park will comprise high-specification, own-door office suites ranging from circa 1,300 sq ft to 2,600 sq ft, each with lift access. Phase 2 of the development will provide a further c. 12,000 sq ft of office space that would be ideally suited for use as a headquarters office building.  Pic: Enkalon Office Park (Artist's Impression) The Kennedy Group have decided to speculatively start building phase one of the office scheme demonstrating great confidence in Enkalon Business Park and Junction One as one of the leading commercial and retail locations within Northern Ireland. As part of the ongoing expansion of the area, Kennedy’s have four commercial development sites on the market within Junction One Business Park, each of which is c. 0.3 acres. Outline planning has been granted for a proposed commercial/industrial development comprising a mix of Use Classes B1(b) Call Centres, B1(c) Research & Development, B2 Light Industry or B4 Storage and Distribution. A number of potential occupiers are in advanced discussions for a design and build basis. Adjacent to Enkalon Business Park, Kennedy’s plan to develop a number of residential sites in their ownership, all currently with the benefit of outline planning consent for a total of over 250 homes and 18 apartments. There is also additional land earmarked for more business trade and warehouse units. Over the next 5 years this area of Antrim will see the final phase of this remarkable transformation. For further information, please contact: Gareth McGimpsey - Osborne King T: 028 9027 0042 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 July ITALIAN BUTTONS UP IN BELFAST  Italian men's shirt brand 7camicie has signed up for a 445 sq ft store at Victoria Square in Belfast. 7camicie has 150 stores in 15 countries and plans up to 15 UK stores. The store is dedicated to a single item "the shirt" with over 500 different styles and colours to chose from. Alana Simpson of Osborne King acted for 7camicie. June FAIRHILL CONTINUES TO GROW AS NEW LOOK AND NEXT GET READY TO MOVE INTO NEW STORES Next and New Look have confirmed that they are to occupy major new stores at Fairhill Shopping Centre, Ballymena. Landlord, Corbo Ltd, has negotiated a surrender of the existing Bhs Store, which has undergone redevelopment and the new units have been handed over to Next and New Look who have commenced their fitting-out work. The new tenants will occupy approximately 27,500 sq ft and 25,000 sq ft respectively, and it is expected that the move will create in the region of 25 new jobs. New Look is scheduled to open in July with Next opening in September 2009.  Pic L to R: Alan Stewart (Pattons), Roger Craig (Corbo), Neil Culbert and Andreia Medeiros (New Look) Colin Mathewson of Letting Agents, Osborne King, comments: "The announcement of these major lettings in the current economic conditions is a reflection of the dominant market position now occupied by Fairhill. Next and New Look are both upsizing considerably into major stores that will further enhance the tenant mix and retail offer within the scheme. Landlords, Corbo Ltd, are continually striving to improve the retail experience available at Fairhill and are determined that the centre, and Ballymena generally, will maintain their position as a leading retail destination within Northern Ireland." The lettings to Next and New Look follow recent openings in the scheme, which include Perfume Shop, Vision Express and Subway, with Semi-Chem and Sky scheduled to open next month. For further information, please contact: Colin Mathewson Osborne King T: 028 90270003 Caroline Kieran CKPR T: 028 9064 4002 M: 07890 387275 RMS CASH MANAGEMENT HAS MOVED INTO MONTGOMERY ROAD PREMISES RMS Cash Management has moved into new premises on the Montgomery Road in East Belfast, which were secured by letting agents, Osborne King. The purpose-built premises comprise 21,000 sq ft of office space, warehouse storage and parking facilities designed to provide a secure base for the company’s rapidly expanding fleet of vehicles and cash management operations. Established in 2004 to provide cash management and secure transport services, RMS is now a major player within the cash in transit industry servicing a diverse range of clients across the banking, wholesale, retail and leisure sectors. While the company’s core business is the collection of cash from clients, it also offers additional cash-related services including the delivery, collection and purchase of coin and the provision of an ATM management service.  Pic L to R: Chris Sweeney (Osborne King) and Richard Dodge (RMS) Chris Sweeney from Osborne King who let the premises on behalf of SABA INVESTMENTS commented: "Montgomery Road is a well-established business location, which is attracting a growing number of companies requiring high-specification, purpose-built and flexible accommodation offering value for money. This is also an extremely accessible part of Belfast which is roughly two miles from the city centre and close to the Outer Ring, and again this is a major consideration for companies such as RMS who benefit significantly from their proximity to excellent transport links. It’s great to see a client like RMS who was struggling to find both a suitable location and premises achieve both through their move to Montgomery Road. We have been actively involved in helping RMS throughout this process from acquiring the premises initially to advising on the subsequent layout and specification." RMS Managing Director and co-founder of RMS, Terry Hughes added: "Since we started up in 2004, our business has grown exponentially but in terms of market share and staffing levels – we now have over 50 employees, therefore, a move to larger premises was absolutely vital. Our new base at Montgomery Road represents a particularly large investment for RMS; however, it is necessary in order to help us focus on achieving our aim of increasing market share whilst providing the highest levels of service possible." RMS is the first cash in transit operation within the UK to have received a Secured by Design award from the Association of Chief Police Officers, (ACPO). Secured by Design is a UK police initiative focusing on crime prevention at the design, layout and construction stages of home and commercial premises and promotes the use of security standards for a wide range of applications and products. "STIRLING" OPPORTUNITY FOR NORTHERN IRISH INVESTOR! Osborne King has acquired an investment property housing a brand-new M&S Simply Food store in Dunblane, Scotland on behalf of a local investor for circa £5.75 million. Marks & Spencer have taken the 16,000 sq ft new build on a 20-year basis, and following a major fit-out, opened the new store for business last month.  Pic: M&S Simply Food store in Dunblane, Scotland Andrew Coggins from Osborne King's Investment team who identified the property as an attractive investment proposition for his client commented: "There's no question that times are extremely tough however, deals such as the Dunblane acquisition show that there are still opportunities for local investors to purchase profitable investment properties offering long-term secure income across the UK. The re-alignment of property prices over the past year is also providing enhanced opportunities for investors, particularly those who are less highly geared and who can take advantage of more realistic prices than in previous years. Granted funding is more difficult to obtain, however, it is available albeit on a lower loan to value basis plus the cost of borrowing is at its lowest ever. Essentially, the market is not dead and property will remain an integral economic component. There will continue to be investment opportunities that offer value and profit in the medium to long term." The M&S store is the first Simply Food store to open in Dunblane, which is located six miles north of Stirling. It is anticipated that up to 50 new jobs have been created on a full and part-time basis. The Simply Food store will offer quality food products and a variety of other goods including a limited range of clothing. For further information, please contact: Andrew Coggins - Osborne King T: 028 9027 0000 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 May BUILDING WORK UNDERWAY AT ENKALON BUSINESS PARK Construction work is due to begin within the next three months at Enkalon Business Park, Antrim, which will result in the creation of c. 31,500 sq ft in total of new office space according to joint sales and lettings agents, Osborne King. The new development, which will be named Enkalon Office Park, is located approximately half a mile outside Antrim town centre within a fourteen-mile radius of Belfast. It is adjacent to the site of the new Asda Superstore, scheduled to open early in 2010, which will be the company’s largest store to date in Northern Ireland comprising a total sales area of 54,000 sq ft in addition to a restaurant and 600 car parking spaces.  Pic: Enkalon Business Park (artist's impression) The first phase of Enkalon Office Park will comprise high-specification, own-door office suites ranging from circa 1,300 sq ft to 2,600 sq ft, each with lift access. All office suites will be offered on a For Sale or a To Let with an option to purchase basis. Phase 2 of the development will provide a further c. 12,000 sq ft of office space that would be ideally suitable for use as a headquarters office building. Gareth McGimpsey from Osborne King who is handling all enquiries relating to the development commented: “The announcement of Asda finally getting approval for their new superstore has generated tremendous interest in Antrim, especially from owner occupiers looking for both own door offices or business units. As such our clients have decided to speculatively start building phase one of the office scheme demonstrating great confidence in Enkalon Business Park and Junction One as one of the leading commercial and retail locations within Northern Ireland.” Meanwhile, the final tranche of business units at Randalstown Road Business Park, which also forms part of the overall Enkalon Business Park, have been released. Units are available from c.1,500 sq ft on a For Sale or To Let basis, with an option to purchase. Osborne King and O’Connor Kennedy Turtle are joint agents. For more information, please contact: Gareth McGimpsey - Osborne King T: 028 9027 0042 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 MALLUSK STILL PRIME LOCATION FOR SHOWROOM, INDUSTRIAL AND WAREHOUSING SPACE Mallusk is still proving to be one of Northern Ireland’s leading locations for businesses seeking to secure industrial, warehousing and showroom space according to property consultants, Osborne King, who have recently completed a further letting to the Donnelly Motor Group within an industrial and warehousing complex located at 45 Mallusk Road, Newtownabbey. The Donnelly Group has taken a ten-year lease on premises comprising a 3,600 sq ft (circa) showroom in addition to forecourt facilities. This is the latest letting in a series of lettings to Donnelly’s amounting to a total 20,000 sq ft of showroom, warehouse and office space completed by Osborne King in recent months.  Pic: 45 Mallusk Road, Newtownabbey Speaking on behalf of Osborne King, Gareth McGimpsey remarked: “Even though the showroom, industrial and warehousing sector continues to experience challenging times, there have been some signs of improvement recently. For example, small industrial units around the 1,000 – 2,500 sq ft mark are still proving quite popular to rent partly as a result of some businesses consolidating and others either downsizing or re-locating We’re also finding that rentals with an option to purchase are proving to be popular, particularly within the last three months. What hasn’t changed is the fact that location is still a key factor in attracting businesses, which is why this complex at Mallusk Road has been so successful in attracting such a diverse range of businesses that includes the Donnelly Motor Group, one of the largest and most successful companies of its kind in Northern Ireland.” The Mallusk Road is the main thoroughfare in the area and is also home to business occupiers including the Henderson Group, HSS Hire and Wilson’s Auctions. For more information, please contact: Gareth McGimpsey - Osborne King T: 028 9027 0042 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 MAKING PROPERTY WORK FOR LONGER TERM GAINS As I review the article which I wrote for the Newsletter 12 months ago, I find myself surprised that little of significance has changed since April 2008. Following the initial banking crisis in the latter part of 2007, we were treated to a second significant panic at the start of October 2008. The financial system still appears paralysed by toxic debt and despite the huge Government bail-outs, borrowing for new projects is all but impossible to achieve. Particularly hard hit is the development sector where even established developers have found access to project finance almost non-existent. Despite statements to the contrary, it appears that none of the banks is open for new business. The lack of development finance and the disappearance of funding for larger investment transactions has led to a very significant realignment of most property businesses. Despite the current recession, it remains my opinion that our home-grown politicians seem unable to provide practical government that would help our development as an autonomous region and drive forward one of our major strengths, namely our knowledge- based workforce. The ideological differences regarding the selection process in education remain a mystery to business leaders who simply want to be able to select the best candidates to enhance their competitive advantage within the wider UK economy. Selection has and always will exist in all sectors of society, and changing an educational system that has consistently produced the best results within the UK could seriously damage our economy in the future. Northern Ireland has stepped away from being a mainly manufacturing economy and we therefore need to maintain any competitive advantage that we have gained by continuing to produce the best knowledge-based workforce for the economy of the future. In terms of major businesses choosing Northern Ireland as a location, we remain a cost effective opportunity for technology-based businesses as well as call centre and back office functions. At a time when major corporations are looking to make significant cost reductions in their operating budgets, we should be again highlighting Northern Ireland’s cost advantages. Office rentals in Belfast still rarely top £14.50 per sq ft as opposed to Birmingham (£33.50), Manchester (£32.00), Edinburgh (£29.00), Glasgow (£28.50), Newcastle £23.00 and Cardiff (£20.00 per sq ft) - Source: 2009 Global Real Estate Markets Annual Review – Knight Frank Rutley. With a number of high profile buildings nearing completion, we can provide a real competitive advantage. Our elected representatives should again be pushing Northern Ireland as one of the UK’s most cost effective locations and we need decisive leadership to promote the region as a huge business opportunity with significant quality of life advantages over other regions in the United Kingdom. With a highly qualified workforce, competitive property values and modern facilities, Northern Ireland remains open and ready for business. Over the last few years many thought that being a property speculator was a way to an easy fortune, and for a very short period of time, property was treated as a short term tradable commodity. Many long established property companies and property professionals exited the market prior to the crash as they realised values had reached ludicrous levels due to the easy availability of cheap finance. For the first time in many years, real value can now been found within the market especially by comparison to leaving cash in the bank. Recent auction sales in the wider UK market confirm a healthy appetite from private buyers for good long term investment product to off-set value loss in pension schemes or savings interest. For instance, Allsops auction on the 31st of March 2009 achieved a 79% success rate with an average lot size of £860,000. Our own experience highlights the fact that cash buyers who view property as a long term investment are waiting and watching for opportunities to pick up well secured investments producing returns that show real advantage over bank interest rates. At Osborne King we began targeting food sector investments in late 2007/2008 as a de-risking policy for our clients. We have subsequently completed some eight transactions in this market sector producing reliable returns on a long term basis. 2009 sees the start of a new era in property for many who had not come into the industry prior to 1994. Gone is the concept that the only way is up and that property is simply another tradable commodity. Gone for my lifetime are the crazy ‘loan to value ratios’ and the cavalier introduction of interest roll-up meaning that debts simply escalated. Last month’s Budget has made us all very aware that we are now destined to pay for the excesses of the last decade for some time to come and, therefore, those of us involved in property need to find ways to make property work harder and more effectively for investors. The need for tight financial planning, effective credit control and creative strategies to assist both landlords and tenants alike, provides a new range of opportunities and challenges for surveyors. As the financial system returns to a more stable platform, we will need to develop workable solutions allowing structured development to begin again and provide the infrastructure for Northern Ireland’s economic future. At Osborne King we have worked hard over the last two years to keep our highly experienced team together despite the downturn within our transactional business. We believe that our surveyors have gained new skills resolving issues in the most pronounced economic downturn since the Second World War and our prudent policies will pay dividends for our clients going forward in a new market environment. A year ago I commented that “we need to see a return to conservative values in business where sound financial planning is seen as a positive attribute” and I believe that even more today. For further details, please contact: Martin McDowell - Osborne King T: 028 90270000 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 April FIRST TEPPANYAKI RESTAURANT IN LISBURN OPENS FOR BUSINESS! Ginza, a new restaurant specialising in Asian cuisine, has opened for business at Lisburn Leisure Complex report letting agents, Osborne King. Ginza, translated as “Silver Mint” in Japanese, is also the name of one of Tokyo’s most affluent shopping and dining districts. This is the first restaurant in Lisburn to feature Teppanyaki-style cooking as a core element of an extensive menu that has been devised exclusively for Ginza by its head chef, Chris Kwan, who was based formerly in London. Commenting on her decision to bring the Teppanyaki restaurant concept to Lisburn, experienced restaurateur and owner of Ginza, Sally Pang, explained: “Teppanyaki is a modern Japanese style of cooking that involves cooking food on a hot plate in front of the customer. High quality ingredients are cooked at an extremely high temperature (400 degrees Celsius) sometimes creating a dramatic flame effect that is quite spectacular to witness. I would describe it as “theatre cooking”, and with customers queuing up every day to watch our chefs in action, it’s certainly proving to be a very strong selling point in terms of entertainment and novelty value to our customers. Our menu is very different to other local restaurants and is the first of its kind in Lisburn.”  Pic L to R: Ginza Head Chef Chris Kwan, owner Sally Pang and Mark Carron (Osborne King) enjoying the menu at Ginza The 3,000 sq ft restaurant with its completely open-plan kitchen is designed along clean, contemporary lines with striking black and red fixtures adding an Oriental accent to the overall décor and layout. Presentation is a key priority with starters served in traditional wooden baskets and all crockery sourced from authentic Asian suppliers. The specially devised menu, which head Chef Chris Kwan describes as “east meets west” features culinary creations such as Grilled Giant King Prawn on a Yorkshire pudding while customers with a sweet tooth can feast on homemade Mango Cheesecake and Chocolate Spring Rolls. Mark Carron of Osborne King, who negotiated the letting of the premises to Ginza on behalf of his client Ebony Developments Ltd, commented: “Lisburn Leisure Complex is an extremely well-established and popular leisure destination. Ginza offers customers a, sophisticated and cleverly-conceived menu and complements the other food eateries within the scheme proving that the complex literally does offer something for everyone.” Open for lunch and dinner seven days a week, Ginza is fully licensed and operates a take-away service. For further details, please contact: Mark Carron - Osborne King T: 028 90270016 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 FAIRHILL SHOPPING CENTRE MARKS RETIREMENT OF JIM McGOOKIN Fairhill Shopping Centre marked the recent retirement of long-serving Centre Manager, Jim McGookin. Jim had been at the helm at Fairhill since its opening in 1991 and has managed the scheme through many changes and significant growth during his nineteen years in charge. Built on the site of the former Ballymena Livestock Market, the shopping centre adopted the Fairhill name and opened in a blaze of publicity in 1991. The scheme originally extended to approximately 110,000 sq ft and brought Co-Op and Marks & Spencer to the town along with retail names such as Barratts, Mothercare, Dresswell, Goldsmiths, Early Learning Centre and Millets. Subsequent investment has seen the Marks & Spencer store triple in size, the redevelopment of the former Co-Op store to create an extended mall with Bhs along with the development of the original car park entrance to provide units for Debenhams Desire, HMV, River Island, Oasis, Vera Moda and Petroleum. In addition, a multi -storey car park was constructed in 2000. More recently, Bhs have vacated the centre and this space is currently being redeveloped to create two major new shop units for Next and New Look, which are scheduled to open later this year. Although originally developed by Co-Op and subsequently owned for a short period by TBF Charitable Trust, the scheme has been owned since 1998 by local property company, Corbo Ltd ,which has delivered all major development initiatives since then, creating the Fairhill Shopping Centre as we know it today that extends to approximately 350,000 sq ft. Roger Craig of Corbo Ltd commented: “Jim’s commitment to Fairhill and his knowledge of the scheme is unquestionable and this has been of major importance bearing in mind the changes of ownership prior to its purchase by Corbo Ltd back in 1998. Jim’s management style has always been hands on and he was ever present in the mall talking to shoppers and shopkeepers alike, and beyond this he contributed widely to the general business community in the town.”  Pic L to R: Colin Mathewson (Osborne King), Jim McGookin and Roger Craig (Corbo) Colin Mathewson of Managing Agents, Osborne King, added: “Jim will be sorely missed at Fairhill and we would like to take this opportunity on behalf of everyone involved in Fairhill Shopping Centre over the last 19 years to wish him a very happy and healthy retirement.” For further details, please contact: Colin Mathewson - Osborne King T: 028 90270003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 HOME FROM HOME FOR CHARITIES Two charities have become the final tenants in a new office block at Carryduff. The Northern Ireland Music Therapy Trust and the Child Brain Injury Trust, moved from other locations to the new offices at McKibbin House, Eastbank Road. Letting Agents, Osborne King, said that all 22,000sq ft of office space at the property has now been taken. Another 12,000sq ft of space is being created by the construction of Eastbank House immediately beside McKibbin House. Around 8,000sq ft of that has already been agreed according to Chris Sweeney of Osborne King. He added: "Despite the economic downturn, we are receiving a steady stream of enquiries from interested parties, which proves that demand for quality, high specification office space still exists." The new building is expected to be completed in August this year and a third phase is planned.  Pic L to R: Catherine Murnin (Child Brain Injury Trust), Chris Sweeny (Osborne King) and Fiona Davidson (Northern Ireland Music Therapy Trust) The Northern Ireland Music Therapy Trust provides a music therapy service for children, young people and adults with a range of difficulties and disabilities and is the main provider of clinical music therapy and employer of state-registered music therapists in the province. The organisation moved fromit's previous home in Knockbracken Healthcare Park. Mr Sweeney said: "The new offices have been fully refurbished and tailored to meet specific needs including ample on-site parking, which was akey priority for both organisations." For further information, please contact: Chris Sweeney - Osborne King T: 028 90270032 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 March IN A RETAIL JUNGLE WILL ONLY THE FITTEST SURVIVE? As with all parts of the economy, the retail sector is finding life difficult, which is hardly surprising in the light of current recessionary conditions with the prospect of rising unemployment having a stark impact on disposable income and consumer spending patterns. From a Northern Irish perspective, we should be in a relatively more favourable position since we have a higher proportion of public sector employment than other regions of the UK. Moreover, significant levels of cross-border trade are also acting as a buttress with border areas benefitting most notably during the Christmas trading period albeit there was clear evidence of shoppers from the Republic penetrating deeper into the province, and in particular targeting Belfast city centre. Interestingly, Irish shoppers are continuing to flock northwards although the main expenditure seems allocated to food, alcohol and “big-ticket” items such as cars, furniture, electrical and digital goods. “Sound bites” regarding the level of grocery trade heading north are quite startling with some stores north of the border reporting turnovers in the region of £3 million per week in the run up to Christmas. In addition, non-resident operators, Sainsbury's and Asda, are each estimated to have secured a 2-3% share of the Southern Irish food market. The local food sector while far from recession-proof is showing evidence of growth as the multiples including Sainsbury’s, Asda, Tesco and Lidl continue to expand their presence. Convenience operators such as Spar, Centra, Mace, Vivo and SuperValu all appear to be holding their own and continue to invest selectively in new stores.  Pic: Sainsbury's In terms of other sectors, it looks as if the more value-orientated retailers such as In Store (Poundstretcher), Ethel Austin, B&M Bargains and Poundland will thrive and prosper. All of these value retailers with the exception of In-Store (Poundstretcher) are new entrants to Northern Ireland and reflects the growth of this sector in current market conditions. Inevitably, our local retail sector has been affected by store closures with the loss of chains Woolworths and Zavvi being two of the most high-profile casualties to date. Undeniably, the mid to high-end sector is struggling while bulky goods, out-of-town retailers are also finding the going tough. With no “quick fix” on the horizon, the year ahead promises to be every bit as testing as 2008, however, we expect to see no immediate decrease in the numbers of Irish shoppers crossing the border, particularly if favourable currency exchange rates and pricing differential levels between northern and southern Ireland prevail. Similarly, the value retailers will continue in the ascendancy with the high-end sector continuing to feel the pressure. There is no doubt that in the present economic climate we are going to experience uncertainty within the retail sector. Vacancy levels will continue to edge upwards as businesses fail with reduced take-up of vacant units from potential new occupiers. This will be evident in shopping centres and High Streets across the province placing landlords under increasing pressure to secure income from their vacant property. The real result will be increased incentives for tenants along with flexible terms and true rental levels falling back. Current market conditions may not be pretty, but the reality is that retail is a highly dynamic business regardless of the economic climate. Current market pressures will dictate that in order to survive, retailers and landlords alike will need to use all of their experience combined with an ability to adapt quickly. Failure to do so could be fatal. For further information, please contact: Colin Mathewson - Osborne King T: 028 90270003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 OSBORNE KING AND NI SCIENCE PARK HAVE FORMULA FOR SUCCESS Limited space is available for rental within the first of three new buildings under construction at The Northern Ireland Science Park according to joint letting agents, Osborne King and CB Richard Ellis Over 80% of Building One, The Concourse, comprising circa 50,000 sq ft of high-specification office space, has been let to a number of companies including Novosco, an all-Ireland IT infrastructure specialist; Fidessa group plc, a leading financial markets software and services company and Bytemobile, a multi-national corporation at the forefront of mobile technology. At the moment, only c 10,500 sq ft of office accommodation is left available for rental on either a multi-occupancy or single occupancy basis, and once fully occupied, Building One has the capacity to accommodate up to 450 employees.  Pic L to R: David Wright (CBRE), Gareth McGimpsey (Osborne King) and Mervyn Watley (NISP) Future development plans for the Concourse include the construction of two additional buildings, which will be linked to Building One. It is understood that this construction work may begin towards the end of this year with completion scheduled for 2010 bringing the total amount of new office space created within the Concourse complex to approximately 170,000 sq ft. Commenting on this latest phase of development, Gareth McGimpsey from Osborne King remarked: “Since its inception, the Northern Ireland Science Park has established a solid reputation for encouraging and supporting the start up, incubation and acceleration of innovation-led, knowledge-based businesses. NISP is one of the best serviced locations in Northern Ireland with regard to issues such as connectivity, physical design, flexible accommodation and general infrastructure. From a property perspective, it is most encouraging to note that despite immensely challenging economic conditions, NISP remains an extremely attractive location appealing equally to both small and medium-sized companies as well as multinational, globally based organisations.” First mooted as a business concept ten years ago, the Northern Ireland Science Park now houses 40 high-tech companies employing 1500 people and continues to attract new innovative, market-leading indigenous and global companies across a broad range of technologies. It is believed that around half of NISP’s current tenants have experienced 100% growth since either starting up or re-locating their businesses within the Science Park. For further information, please contact: Gareth McGimpsey - Osborne King T: 028 90270042 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 UNIVERSITY'S BOOST TO THE CATHEDRAL QUARTER Belfast’s Cathedral Quarter received a welcome boost last month when the University of Ulster unveiled plans to invest £250 million in its Greater Belfast campus that will lead to the construction of a new landmark building within the vicinity of St Anne’s Cathedral. This former merchant quarter and historic nucleus of Belfast is enjoying a commercial and cultural renaissance, emerging as a rising star after years of neglect, and frequently, piecemeal development. To date, the Cathedral Quarter has attracted substantial investment from operators involved in the hospitality and leisure industries who spotting its untapped potential have undertaken extensive development and re-development projects aimed at injecting a new sense of vitality, energy and creativity into the area. Already home to long-established and highly successful pubs and restaurants such as Nick’s Warehouse, The John Hewitt and Duke of York to list a few, new venues including The Potthouse and The Spaniard are helping to revitalise the quarter in addition to making a significant economic contribution. The process of regeneration continues to gather momentum. Within the space of two years, The Merchant Hotel, Belfast’s first five-star hotel, has opened its doors to the public while around the corner at the junction of Waring St and Donegall St, Premier Travel Inn, Britain’s biggest budget hotel chain, launched a 171-bed hotel in spring 2008. Also in the pipeline is a Ramada Encore hotel – the Ramada Group’s latest brand offering stylish, innovative, high-value yet mid-priced hotel accommodation and facilities – which will anchor one corner of the £110 million St Anne’s Square development currently under construction. St Anne’s Square promises to be one of the city centre’s most exciting leisure, commercial and residential developments in terms of concept, design and function. In addition to extensive retail, office and residential space, the scheme will house The MAC, (the former Old Museum Art Centre’s proposed new venue. Designed by RIBA-award winners, the Belfast-based architects, Hackett & Hall, this flagship contemporary visual and performance arts centre, which is due to open in 2011, should cement the Cathedral Quarter’s reputation for cultural and artistic excellence whilst helping to stimulate further artistic and cultural development. One notable feature of recently-built schemes and those yet to come out of the ground is the re-introduction of residential space, which in my view, will go a long way towards transforming the Cathedral Quarter into the vibrant and cosmopolitan heart of Belfast that it once was. Creating a district in which people not only work and play but actually live is fundamental in terms of regeneration and on-going development. This is already happening with the completion of mixed-use schemes such as that completed recently by Barnabas Ventures on Talbot Street overlooking St Anne’s Cathedral. Construction work involved the restoration of a former textiles warehouse and the construction of three new buildings, which comprises office and retail space, over 30 apartments and a new visitor attraction relating to the Northern Ireland War Memorial. The company has expanded its interests in the Cathedral Quarter and is about to start work on a new scheme, Academy Street Exchange immediately opposite the Belfast and Education Library Board’s headquarters, which will include retail and office space.  Pic: Artist's Impression of Academy Street Exchange The University of Ulster’s decision to re-balance its student numbers with the majority re-locating to new premises within the Cathedral Quarter must surely validate the level of investment that developers have made and continue to make within the area. To quote University Vice-Chancellor, Professor Richard Barnett, "Our recent upgrade to the Belfast campus has shown us that there is an enormous appetite for the University of Ulster’s programmes in central Belfast." Expanding upon this statement, he added, "A vibrant city centre is important for those kinds of programmes and the students they attract, and our strategic vision is to provide the space and facilities needed for these activities to flourish." These are encouraging words indeed. In addition, although we cannot ignore the fact that we are faced with some of the most challenging set of economic circumstances in decades, the University’s presence within the Cathedral Quarter will, hopefully, draw in other institutions and businesses. In turn, this could well boost commercial values stimulating further growth within its retail and leisure sectors in the process. Whatever happens, the Cathedral Quarter is on an upwards trajectory and while those involved in the regeneration process are dedicated to preserving its unique personality , their focus is firmly on creating a strategic and sustainable future aimed at establishing a central hub that is also wholly in tune with a 21st century ethos and lifestyle. For further information, please contact: Andrew Coggins - Osborne King T: 028 90270022 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 February HOLYWOOD EXCHANGE, BELFAST WELCOMES HARVEY NORMAN & NEXT HOME Following the successful launch of Ikea at Holywood Exchange, located at Tillysburn in East Belfast, towards the end of 2007, the marketing of the final phase of the scheme, a 150,000 sq ft retail terrace, is now well underway. Owned by clients of AXA REIM Holywood Exchange was ranked third in the Top UK Retail Parks (Source: Definitive Guide to Retail and Leisure Parks 2008) and has to date attracted a number of leading retail names including Ikea, Sainsbury’s and B & Q.  Pic: Holywood Exchange Harvey Norman, the Australian furniture, electrical and computers conglomerate, has opened a 60,000 sq ft store occupying 4 units at the IKEA end of the terrace. Harvey Norman first entered the Irish market in 2003 and now has 11 stores across Ireland. In addition, Next Home has also opened a new 10,800 sq ft unit offering the entire Next homewares range. The retailer has installed a full mezzanine floor thereby increasing the total floor space to approximately 20,000 sq ft. Colin Mathewson of joint Letting Agents, Osborne King, said: "Obviously the arrival of leading retail names such as Harvey Norman and Next Home is a great boost for Holywood Exchange in terms of further enhancing its retail offer. There has been a great deal of interest in the remaining units available within the retail terrace, all of which have now been released and announcements in respect of these are expected shortly". Paul Reid, IKEA Belfast’s Store Manager, added "We are delighted by the public’s response to IKEA’s range of well designed, quality and affordable furniture and home furnishing accessories. In our first year of trading we have welcomed over 2.3 million visitors from across the island of Ireland to our store at the Holywood Exchange. We are confident that the continued development of the Holywood Exchange will further secure its position as a destination for home furnishings shopping." All lettings at the retail terrace at Holywood Exchange are handled by Harvey Spack Field, CBRE and Osborne King. For further information, please contact: Colin Mathewson - Osborne King T: 028 90270003 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 FIRST RESTAURANT OPENING AT EASTPOINT ENTERTAINMENT VILLAGE The first restaurant, Wolfe’s Burger Connoisseurs, has opened at Eastpoint Entertainment Village on the Old Dundonald Road, Belfast report joint letting agents, Osborne King. Open seven days a week from 9.00 am until 10.30 pm (last food orders) and fully licensed, Wolfes offer a range of connoisseur handmade, fresh char-grilled burgers made with 100% pure Northern Irish Beef. They also offer a selection of classic dishes, speciality coffees, desserts and a special junior menu for the kids. The restaurant’s chic modern fit-out boasts a fabulous boutique style interior with a mixture of intimate booths and open-plan seating areas for larger parties. Already experienced restaurateurs who own the highly successful Papa Brown’s Grill in Carrickfergus, the owners plan on creating 15 full-time and up to 20 part-time jobs at Wolfe’s over the next couple of months.  Pic: L to R Richard McKibbin (Osborne King), Olivia Hall (Wolfe's Burger Connoisseurs and Mark Carron (Osborne King) Commenting on the decision to open a new restaurant at Eastpoint, spokeswoman, Olivia Hall remarked: "Having successfully established ourselves in Carrickfergus, we were looking for a new challenge when the opportunity to launch a restaurant at Eastpoint arose. We think that there’s a definite market for what Wolfe’s has to offer which is quality, value-for-money food at affordable prices in a relaxed, sociable and fun atmosphere. We have an all day dining extensive menu from breakfast, lunch to evening meals so that people can drop in at any time whether it’s just for a snack, coffee, dessert or a full meal. Plus, there’s no need to make a reservation, however, bookings are available! We’re aiming to attract a wide cross-section of customers from professionals wanting to meet for breakfast to families, young people and cinema goers and we think that we are ideally placed to do so in terms of location, free on-site parking and overall accessibility." Wolfe’s is the first of a number of new restaurants due to open within the £18 million complex that has been developed by Turkington Holdings Ltd while an 8-screen Omniplex cinema - Northern Ireland’s first digital auditorium - opened in December. The circa 85,000 sq ft development also provides extensive on-site car parking spaces. Dundonald is already well established as a popular leisure destination, a fact acknowledged by Mark Carron from Osborne King, joint letting agents for the complex. He said: "It’s very encouraging to see this development coming to fruition, and now that the Omniplex is fully operational and Wolfe’s is up and running, Eastpoint looks set to become a major leisure and entertainment attraction and one that will complement other attractions located immediately within the vicinity. This part of the Borough currently attracts thousands of visitors per week and we’re confident that restaurants such as Wolfe’s will help to establish Eastpoint Entertainment Village, and indeed Dundonald as one of the province’s top leisure destinations." Not planning to rest on their laurels for long, the owners are planning to open a second restaurant, The Blue Chicago Grill, at Eastpoint within the next few months while the joint agents will be announcing details of additional new restaurant openings at Eastpoint shortly. For further details, please contact: Mark Carron - Osborne King T: 028 90270016 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 TOUGH MARKET CONDITIONS CAN LEAD TO JOB OPPORTUNITIES SAY BELFAST’S NEWEST RECRUITMENT CONSULTANCY Lucas Love Ltd, a newly established firm of recruitment consultants, has opened for business in south Belfast. The company, which specialises in the healthcare, accountancy and financial services sectors, has moved into offices in Beaufort House on the Lisburn Road in Belfast, which were secured by Osborne King.  Pic: Checking out the new Lucas Love offices are from l:r Ryan Cleland-Bogle (Lucas Love) and Chris Sweeney (Osborne King) Lucas Love Ltd is headed up by Ryan Cleland-Bogle, originally from Northern Ireland, who has worked extensively within the financial and legal recruitment consultancy sectors in London, New York, Hong Kong and Dubai. Since his return to Northern Ireland in 2007, Mr Cleland-Bogle has launched a number of new business ventures that include Porch Lucas, a property development company and Lough and Quay Residential Lettings Agency. Lucas Love Ltd currently employs seven consultants who have extensive experience within the financial services, accountancy and healthcare sectors. Commenting on his decision to launch a new recruitment consultancy against the present economic backdrop, Ryan Cleland-Bogle acknowledged that tough times lay ahead stating: "There’s no doubt that the economic landscape is bleak and likely to deteriorate before things improve. We know from experience, however, that in tough market conditions, relationships between clients and recruitment agencies can falter and, in our view, this is an opportunity for young, hungry and professional businesses such as ours to build relationships with clients and help them ride the market in preparation for the upturn that will inevitably come." Continuing, he added: "We are here to deliver vertically to clients. In other words, we will help our clients to identify and attract prospective employees at all levels be it at Director level requirement or on a temporary basis. Through a process of thorough market-mapping and extensive networking, we are able to deliver targeted and relevant candidates." "Furthermore, our charging system for our search and selection service for senior hires differs significantly from many of our competitors, which means that we will only charge clients if they actually employ candidates whom we have introduced. We believe that the onus should be firmly on us to deliver, and not on the client to share risks through up-front fees." Osborne King’s Chris Sweeney negotiated the letting and he added: "Despite being drip-fed a continual diet of economic doom and gloom, it is both encouraging and inspiring to note the emergence of new business ventures such as Lucas Love Ltd, which is proof surely that entrepreneurship is alive and well across Northern Ireland. Ryan and his team are based in fantastic, centrally-located premises that also offer easy access to Greater Belfast and beyond that will allow them to expand as their business grows, which given their combined experience and expertise seems extremely likely!" For further details, please contact: Chris Sweeney - Osborne King T: 028 90270032 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 EUROPE’S LARGEST REGENERATION INITIATIVE OFFERS SCOPE FOR LOCAL PROPERTY INVESTORS A commercial property located within a landmark new town centre scheme in Barking, Greater London, has been acquired by Osborne King on behalf of a local investor in a deal worth £5.3 million reflecting a yield of 6.18%. The 30,000 sq ft building comprises a ground-floor level Tesco Food Store and a 66-bed Travel Lodge occupying a further four floors of accommodation. The newly built property was one of a number of investment opportunities available within Barking Central, a mixed-use scheme that forms part of the £100 million re-development of Barking town centre, by Redrow Regeneration in a Public Private Partnership involving the London Borough of Barking and Dagenham.  Pic: Barking Central Osborne King identified the property as a suitable investment opportunity for its client and Andrew Coggins of the company’s Investment division commented: " Undoubtedly times are tough within the property market, however, deals such as this prove that the market is not, as some would have it, dead. Certainly, it is experiencing a protracted period of re-alignment mainly in terms of price adjustments, which is also providing enhanced opportunities for investors, particularly those who are less highly geared and who can take advantage of more realistic prices than in previous years." " It is worth also noting that yields have moved out to more attractive levels, as is the case in the Barking deal, and again this should act as an incentive in some cases.” Continuing, he added:" Overall, we believe that Northern Irish investors should still be able to acquire profitable investment properties within Northern Ireland and mainland Britain where stock is available across all sectors. Undeniably, identifying and securing opportunities within key sectors including food stores, hotels and offices that offer long-term secure income will be harder than in recent years, yet ultimately worth the time and effort. And let’s not forget that property by its very nature is cyclical, which means that recovery will inevitably occur." Barking Central is one of the first Thames Gateway schemes – Europe’s largest regeneration initiative - to have come to fruition, and its combination of excellent commuter links, location, catchment area and design specification is attracting new business into the area. Located a mere two miles to the east of the planned Olympic Park currently under construction ahead of the 2012 Olympic Games, Barking Central has already become one of the fastest selling developments within the region. For further information, please contact: Andrew Coggins - Osborne King T: 028 90270022 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 January REGATTA CLOTHING RE-LOCATE TRADE LOCATION TO EAST BELFAST Regatta, the outdoor clothing specialist, has re-located from its long-established city centre location on Donegall Street, Belfast to new premises within a recently-built complex at Montgomery Road, in east Belfast. The move to a new purpose fitted-out unit comprising circa 2,000 sq ft of showroom and office space, which was negotiated by Osborne King, was prompted by continued business expansion and sales growth on both sides of the border. Neighbouring businesses include Thales, Guinness, Bombardier Aerospace, Woolsy Plc and HMG Paints plc and Chris Sweeney from our Agency team commented: " Montgomery Road is widely regarded as being a well-known and established business location, which was one of the key considerations for Regatta when they were considering re-locating their existing business. The complex into which they have moved was built during 2008 to an extremely high specification, which was also a significant deciding factor. Since the building’s completion, a number of other businesses have re-located from existing premises and there is strong interest in the last remaining suites comprising circa 1,200 to 2,000 sq ft, particularly from local occupiers." Regatta Clothing is the UK’s largest supplier of outdoor and leisure clothing and exports to over 30 countries world-wide. A family-owned company whose headquarters is located in Manchester, the Regatta brand was established in 1981 and is now one of the most widely sold outdoor brands available in Europe. For further information, please contact: Chris Sweeney - Osborne King T: 028 90270032 Caroline Kieran - CKPR T: 028 9064 4002 M: 07890 387275 Back to top
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