How to eradicate bad memories of buildings

With an ongoing shortage of Grade A office accommodation in central Birmingham, demand for quality refurbishments continues to rise. Carried out properly, these premises can match and exceed their new build counterparts but expert planning and management is essential to ensure older means wiser.

Buildings, it seems, have memories. Not in a paranormal way, rather it is people who have long memories about buildings.

So when a prospective new tenant is weighing up their options for new office accommodation, certain addresses will be given short shrift, simply because of what they used to be like ten or 15 years ago. As in so many walks of life, a bad reputation is easy to acquire yet fiendishly difficult to lose.

Director Steven Jelfs explained: “Many potential clients are receptive to the concept of refurbishments yet need some convincing, especially when they only remember a particular building as a stuffy, outdated office they visited many years ago.

“Even before a client commits to a property, we can be called to visit the site on their behalf in order to appraise the opportunities of the property and to provide a vision of the finished product.” 

The changes required to upgrade a typical ‘tired’ office for modern needs are so profound that they will affect virtually every aspect of the building, both visible and behind the scenes. Yet if properly managed and executed, the outcome is a unique workplace, blending the comforts and convenience of the new with the style of the old: a workplace which impresses and performs.

A suitably qualified project manager will take you through each and every stage of development from structural appraisal of the existing building to the end users’ technological requirements.

“If you are new to refurbishment, the scope of work required can be quite daunting and that is before you consider some of the more fundamental structural issues.  Apart from the more obvious repair issues, there are often structural reconfigurations required to achieve modern spacial arrangements for occupiers.  These are all issues we deal with on a regular basis.”

Aside from our expertise in negotiating the complexities of refurbishment, a key reason why project management specialists are in such demand is the continuing shortfall in suitable new-build offices at the top end of the spectrum.

“There is plenty of demand for the best accommodation but simply not enough new product,” explained Steven.

“A number of quality refurbishment schemes are in the pipeline and will make a significant impact. In the meantime, some occupiers have been delaying their decision and taking their time to commit.”

We have been involved in a number of major refurbishment projects. Among them is Cavendish House, Waterloo Street – a highly distinguished office building in the heart of the city’s conservation zone;  Maple House on Corporation Street; and 33 Bennetts Hill, a former banking hall and outstanding listed building.

All have undergone comprehensive transformation to provide first-class 21st century accommodation. The question remains: will there be major new occupiers taking these, such as decentralised Government departments, or will it be a case of ‘musical chairs’ with existing companies swapping and upgrading?

Agents and developers are all anxious to see how the market pans out, yet they still believe the opportunities for quality refurbishment is set to remain buoyant either way.

Steven said: “It is inconceivable that sufficient new top grade office space will be available to meet all demand.  It just cannot be done within the core areas of the city centre. Whether we see a marked net influx of organisations or just a merry-go-round of existing occupiers, the demand for quality refurbishment is bound to remain high.

“Rather than bemoan this, occupiers should shake off any preconceptions and bad memories they might still have about older properties and realise that many gems exist in this city – and there are many specialists who can make them shine again.”

Taking the pain out of relocation

We have played our role in ensuring the success of a £1 million business relocation for a leading energy consultancy.

Broadfern, one of the UK’s most innovative and rapidly developing energy consultancies, outgrew their offices in Oak Tree Park, Redditch, last year and bought a new office building, Ravens Court, on the nearby Ravensbank Business Park.

And to minimise the disruption to employees and the knock-on effect it would have on Broadfern’s diverse client portfolio, which represents every major industry sector including Cadbury Trebor Bassett, Sanyo, Levi’s and Morphy Richards, the company appointed us to take care of the entire relocation programme to this 17,500 sq ft facility.

“They needed to ensure the move was successfully completed but simply could not afford to take their eye off the business,” said director Steven Jelfs.

“The upheaval of relocating a modern, sophisticated business, with all its physical and technological complexities, can set companies back months, even years, if not properly planned and managed.”

Our brief was complex but certainly achievable.

“There were encouraging signs from the outset. First and foremost, the company looked ahead and bought themselves that most valuable asset – time,” said Steve.

Planning began well over a year before the move itself when we were hired as relocation project manager in 2004 and brought fully on board from January last year.

Though the distance between the old offices and new location was small, the logistics and sensitivity involved in uprooting a mature organisation and fitting out brand new 17,500 sq ft headquarters were considerable.

Steven explained: “Our tasks fell into four main categories: time planning, project costing, co-ordinating specialist contractors and IT integration in conjunction with the in-house team.

“More specifically, we had to bring two formerly separate offices together under one roof and ensure there is still room to expand in the foreseeable future.”

With such delicate yet vitally important duties to perform, the client / provider relationship is all-important. Steven says this key element was assisted by the client’s willingness to accept advice from the specialists.

“Personalities are clearly important, as we are working very closely together over a significant period of time. In addition, whether it’s domestic or business, moving ‘home’ is commonly acknowledged as a potentially stressful experience. It was therefore extremely good to work with a management team prepared to accept a vision and with the confidence to allow experts to take the right action at the right time.”

This view is shared by Simon Butterfield of Broadfern: “We took a strategic decision to appoint specialists and to give them sufficient responsibility to execute the brief. This enabled us to stay focused on our own affairs, knowing that the relocation was in good hands.”

“We agreed a project fee from the outset, together with key target dates for clearly identified tasks. The approach certainly paid off for us, with the move completed on time and within the set budget. Most crucially of all, we experienced minimal inconvenience and distraction as a business.”

How we benefited from a ‘strata freehold’ agreement

When we relocated to Birmingham’s Ludgate Hill recently, just a stone’s throw from St Paul’s Square, it appeared to be a perfectly normal transaction.

This seemingly unremarkable acquisition of the fifth floor of Griffin House was, however, far from an everyday matter. In fact, it could represent the beginning of a revolution in the Midlands property market.

Unlike the majority of new office occupants, we didn’t acquire a conventional lease for the property, nor did we purchase the building freehold. Instead, we entered into a ‘strata leasehold’ agreement with property owners New Wood Securities.

This means we now effectively own a horizontal ‘slice’ of Griffin House (hence the term ‘strata’). In fact, we agreed a 150-year lease, although the deal operates in most respects as an outright purchase, with just a ‘peppercorn’ annual rent payable.

As a result, we can use the property; refurbish it or sub-let, just as any owner would expect to do, although technically, we do not own the freehold.

On the other hand, owner New Wood Securities has now effectively ‘sold’ a portion of its property, receiving a negotiated purchase price for the near 2,500 sq ft fifth floor. It chose to forgo the recurring income from its asset in the form of market rent.

Whilst this might appear a perfectly sensible arrangement for both parties, this new ‘strata leasehold’ agreement is rare. Nationally, only a handful of similar deals have been concluded of late, notably in London and Manchester.

So what attracted both parties to this arrangement?  For us, it was simply a question of availability. Director Steven Jelfs explained: “Our space requirements are relatively modest but we preferred to buy rather than rent and currently, smaller freehold office accommodation is hard to find in and around the city centre.

“Standalone properties between two and three thousand square feet are rarely for sale. One solution, therefore, is to take a horizontal slice of a larger building.

“Yet traditionally, owners are reluctant to sell on this basis, whilst prospective purchasers may worry about future disposal, should they wish to move on.

“In our case, this consideration was outweighed by our confidence in the marketability of this property, plus the fact that buying the strata leasehold represents an ideal tax-efficient pension vehicle for our directors.”

For the owners of Griffin House, strata leasehold provides a smart solution for particular properties in defined locations.

Director Dominic Stokes said: “There is fierce competition locally for freehold buildings which are suited to owner-occupier businesses. Medium size properties, possibly three to four storeys, are in short supply in the city centre and tend to be bought up by developers.  So, we are looking to create this type of market.”

It certainly sounds logical, but in the absence of any local precedents, how could the company be sure there was a market for this product?

“Generally, for properties under five thousand square feet, it’s hard to tell who is looking,” explained Dominic. “Our experience and local market insight suggests there is a demand, but the only sure way to know is to put the product ‘out there’ and wait for the response.”

“Where the right circumstances exist we may instruct agents to be flexible in approach. Strata leasing should be viewed as a constructive alternative to more conventional deals, but at present it does require some innovative thinking from all sides. For example, there is a differing perception between buying a freehold outright and even a 150-year lease.

“This is a compromise the purchaser has to consider.  On the owner’s part, you are waiving the prospect of perpetual income and limiting the future usage of the building. These are all factors to bear in mind.”

 

Property survey leads to significant savings for Earthquake

Fusion Building Consultancy is continuing to expand its work with developers, after completing a contract to survey 130 properties for Earthquake (UK) Ltd in just six days.

The housing stock with a combined square footage of 98,300 was part of a property investment portfolio that Earthquake was considering and has now purchased.

Before committing, however, full structural and condition surveys were required, together with detailed measured and preparatory drawings, plans, costing and maintenance programme and photographic and video surveys.

A team of five took a week to complete the project.  “The Earthquake contract was a real team effort,” said director Steven Jelfs.  “We pulled out all the stops to complete the job in such a short time period.”

The investment paid off for Earthquake, with detailed measurements highlighting an inflated square footage figure supplied by the selling agent. When adjusted, this resulted in a significant saving on the purchase price of the properties.

Steve Woodward, project manager at Earthquake (UK) Ltd, said:  “We have been very impressed with the speed and professionalism of the Fusion team and we will no doubt be talking to them again as we continue to seek further investment opportunities across the UK.”

Working throughout the UK on a broad spectrum of clients including Jessops, Rosemary Health Foods and The London Development Agency, we are looking forward to embarking on our latest project in Liverpool, delivering a development of 68 new two-bed apartments.

 

Taking the strain out of making big changes

Whether you are relocating a business or refurbishing your existing offices, you run the risk of leaving much of your goodwill behind unless the process is professionally planned and managed, director Steven Jelfs considers some of the challenges – and solutions – experienced by our clients.

 

As building consultants, we are engaged by public and private sector organisations to provide professional services at times of considerable pressure. This may be business relocation, office refurbishment, property survey or a cost management exercise.

Whether it’s commercial office or an industrial client, the principles of engagement are the same: intelligent planning, meticulous preparation, attention to detail and ability to respond to any unforeseen circumstances.

While a leading-edge IT business and a traditional component manufacturer may appear to have little in common at first glance, their needs – and our modus operandi – are often similar.

Take a recent project for an industrial client based in Redditch.  We ensured their IT requirements were met – including all cabling and networking – checked the telecoms capacity and services, reviewed the security, advised on space management, lighting and power services, and generally oversaw all practical aspects of the move.

Given enough time, the MD may have been capable of handling much of this himself, but he recognised that he could not neglect his management duties for weeks on end, so asked us to manage the entire operation while he concentrated on running his business.

Our involvement from the early stages was key to achieving his objectives and we advise anyone seeking project management input to involve your consultants from the outset – not just when you think you need them.

Much of our work on the Redditch project would apply for a more office-orientated, IT-based firm, though our industrial clients, who comprise about one third of our workload, do present some particular issues. For example, production plant and precision machinery often require specialist handling.

Timing can also become hypersensitive if it affects stock levels and key order deliveries, but whether our client is in IT or widget pressing, our input extends to those important details every bit as much as the bigger picture.

For example, ask many MDs if they prefer a kettle or Zip boiler in the new tea room and you might well get a blank look.

In fact, the boiler may prove far more cost effective over time and give a much enhanced service to the staff who rely on it several times every day.

The same applies to mundane matters like water filtration.

We know that a plumbed-in filtration machine is better for staff and the bottom line over time, which is why we are keen to talk clients through the benefits and ensure the premises are as productive as they can possibly be.

Another key plank of our project management portfolio involves refurbishment. To date, we have worked on internal and external refurbishment of residential, commercial and industrial properties, ranging from labyrinthine Victorian offices to starkly functional 1960s units.

Our surveying pedigree gives us a particular insight into the possibilities of an existing building. Not only can we review its condition and advise on its structural condition, but we can assess its potential for residential, commercial or retail purposes.

These are critical decisions that will affect profitability for many years to come. This is why we consider it essential for experienced directors to maintain a hands-on role with client affairs, developing long-term partnerships.

Two recent projects, both in Bennetts Hill in the heart of Birmingham’s commercial district, illustrate this philosophy.

The properties presented widely differing practical challenges yet, as with our relocation work, our guiding principles had much in common.

One involved a scheme for Gort Properties, comprising a restaurant and office accommodation; the second was a slightly larger scheme involving comprehensive refurbishment of a commercial property for New Wood Securities.  In the latter, we retained the existing shell but split the building internally.  Part of it – a former banking hall – enjoys a distinctively high ceiling, which we preserved.

To optimise its functionality and aesthetic appeal, we then created a second access for the remaining part of the building.

For the other project, we recommended the addition of a further storey as the best way to enhance future market potential.

When considering refurbishment, clients tend to look to the medium term – three to five years – whereas we encourage a longer-term assessment and think laterally in terms of future potential and the property’s investment value.

The outcome on these two projects was therefore entirely different, due to the varying type of business and the clients’ eventual requirements.

In many other cases, the central purpose of the property may not change but the client is anxious to bring their asset up to date, creating a better working environment for staff and a better image of their customers.

This was essentially our brief for Cavendish House in Waterloo Street, for HSBC equity fund.

Here we had little input into the concept of the building but concentrated on improving the office accommodation and delivering greatly enhanced communal areas.

The enduring fascination of project management lies not only in helping clients to achieve their new or improved premises, but in the undiminished ability of buildings to inspire and surprise.

In recent weeks, we have turned gamekeeper – planning and co-ordinating our own office relocation into a new corporate home near St Paul’s Square.

I am bound to report that our approach was text-book material, with extensive internal remodelling and redecoration planned like clockwork.

Regrettably, however, even our powers of foresight could not predict the broken pipe in our property, which turned our big moving in day into a mopping up day worthy of a Titanic sequel.  It seems even the experts get soggy feet occasionally.

New directors fuse £300,000 deal

Fusion is reaping the benefits of appointing top-flight directors to its board, having landed a £300,000 Private Finance Initiative contract with Essex Hospital.

Headed up by directors Gavin Stephens and Pollie Jelfs, the PFI survey is being conducted on behalf of Broomfield Hospital and Mid Essex Hospital Services NHS trust.

Our role is to survey and assess the state of the existing stock at Broomfield Hospital and forecast the maintenance costs for five and 10-year periods.

Mid Essex Hospital Services will then use the information to create the tender document for a PFI.

Broomfield Hospital is one of a series of successful PFI instructions gained recently including the HMS Drake Navel base, Plymouth, RAF Newton, Leicestershire, and student accommodation in Nottinghamshire.

Pollie said: “The Broomfield Hospital contract is a very complex and time-consuming exercise, including asbestos, mechanical and electrical surveys, plus a detailed report on the conditions and state of repair of the fabric of the existing buildings.

“Extreme care is required to ensure all short and long-term issues are identified for the PFI consortium and, with our wealth of our experience in this sector combined with the personal hands-on approach from directors, we anticipate it will be a future growth area for Fusion.”

Fusion lands £300k PFI contract

Fusion Building Consultancy is reaping the benefits of appointing top flight directors to its board, having landed a £300,000 Private Finance Initiative (PFI) contract with an Essex Hospital.

Headed up by director Gavin Stephens and our newest arrival, director Pollie Jelfs, formerly associate director at CB Richard Ellis, the PFI survey is being conducted on behalf of Broomfield Hospital and Mid Essex Hospital Services NHS Trust.

A Private Finance Initiative (PFI) is one of most frequently used schemes to deliver and maintain public buildings and facilities. A private company, typically a consortium made up of a building firm, bank and facilities management company, are appointed to take on the day-to-day running of the building and associated services. The NHS Hospital Trust then makes an annual payment to the private company, rather like a mortgage.

Our role is to survey and assess the state of the existing building stock at Broomfield Hospital and forecast the maintenance cost for a five- and 10-year period.  Using this information Mid Essex Hospital Services NHS Trust can then create the tender document for a PFI.

Broomfield Hospital is one of a series of successful PFI instructions gained recently, including the HMS Drake Naval base, Plymouth;, RAF Newton, Leicestershire; and student accommodation in Nottinghamshire.

Pollie said: “The Broomfield Hospital contract is a very complex and time consuming exercise, including asbestos, mechanical and electrical surveys, plus a detailed report on the condition and state of repair of the fabric of the existing buildings.

“Extreme care is required to ensure all short- and long-term issues are identified for the PFI consortium and with our wealth of experience in this sector combined with the personal hands on approach from directors, we anticipate it will be a future growth area for us.”

Malcolm McKilop, Broomfield Hospital’s Project Director added: “We are very pleased with the level of professionalism from Fusion and their broad based experience has enabled us to make realistic forecasts and present a clear picture to those involved in the PFI.”

Fusion pitch in with camping and caravanning club HQ

Coventry is seeing the start of work on a new £6 million headquarters for the Camping and Caravanning club – a project that will create more than 40 new jobs and make the city a centre for national training courses.

Britain’s top club for all forms of camping called on developers Stoford to develop and fit-out its new 30,000 sq ft high-tech HQ and training centre at Westwood Business Park on land bought from the city council. Fusion is providing project managing services.

The development, which is due for completion in spring 2004, will be three times the size of the club’s previous site on the same business park.

The eco-friendly building will incorporate rainwater harvesting, where by processed rainwater will be used to flush lavatories, in line with a new Green campaign that the club is pursuing at its 93 campsites.

David Welsford, director general of the Camping and Caravanning Club, said: “With staff numbers having risen to over 100, and another 40 required, we are now too big for our present HQ. Our new site will enable us to accommodate and train our staff and members and expand our Carefree travel service, which sends 70,000 people to 17 countries each year, as well as serve our 93 local branches even better.”