Case Study: Thornaby - The Pavilions

Published on: 12th September 2014

A £30 million public/private partnership between Stockton Borough Council and Thornfield PLC to regenerate the Pavilion Shopping Centre in Thornaby, creating a new regional shopping centre of 270,000 sq ft.

This has completely transformed the Town Centre with a mix of retailers including New Look, Boots, Superdrug, Asda, Grainger Games, Wilkinson, and more, along with the adjoining Pavilion Leisure Centre and new Public Library.

We were involved from inception with the initial retail demand study and evaluation of bidder’s proposed schemes, resulting in award of preferred developer status to Thornfield Plc.

We advised the Council throughout development agreement negotiations, in particular advising on liability arising from CPO of 61 interests, funding arrangements, clawback provision in the case of default, level of developers bond, indemnity clause and disposal provisions including apportionment and overage.

We marketed the new scheme for Thornfield to achieve pre-let levels necessary for viability and new national retailers were successfully secured with the scheme 90% let at the date of freehold disposal.

Pre compulsory purchase negotiations with 51 tenants and compensation was agreed on relocation & extinguishment basis by our team. We also provided strategic advice on the CPO process, appointment of land referencer, preparation of statement of case and expert evidence for Public Inquiry.

Full development appraisal for loan security was undertaken by our valuation team with assistance from retail consultancy and the building team.

The asset management team established a service charge policy for redevelopment, recruitment of Town Centre manager and staff.

Finally our Retail Agency Team successfully disposed of the freehold interest in the scheme.

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Compulsory Purchase

Our industry leading team have a wealth of experience in dealing with compulsory purchase cases and we provide our first class services across the UK. If you have received a compulsory purchase order then we will guide you through the complicated process. Our team has experience dealing with a wide range of compensation claims and we will work with you to ensure you receive a fair compensation settlement. If you are applying powers, we will work with your team to provide advice throughout the project lifecycle to ensure that your scheme finishes on time and with minimal delays.

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Retail Agency

Our principal retail agency services include: Shopping Centre, High Street and Out of Town Retail Consultancy Disposals Acquisitions Innovative Marketing Solutions Development Appraisal Monitoring of retail requirements and trends Strategic Asset Management Strategy and Investment Funding   Our client base is spread across a wide spectrum of retailers, developers, investors and retail property owners and occupiers. With an established team of experienced focussed professionals our offices cover the whole of England and Wales and the Scottish Borders. We have an enviable reputation in the market amongst our clients and competitors alike. Each and every one of our clients is very important to us. We strive to work in partnership with our client to achieve the best possible results. To understand our client’s business and objectives is of huge significance and importance to us. Our appreciation of local market conditions and national retail trends helps us to achieve the best possible solutions to our client’s property issues. We are committed to achieving an innovative and multi faceted approach to our marketing of client’s retail property utilising both technology in all its complex forms and personal and direct communication with potential targets. We understand retailers and retail property.

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Glossary of terms

The compulsory purchase process is full of technical jargon and can be very confusing. To assist with this the following glossary of terms may be useful. Compensation Code: A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition. Entry: See "Taking of Entry" General Vesting Declaration (GVD): A legal procedure used in connection with compulsory purchase whereby an acquiring authority, having obtained a CPO, is able to obtain possession and ownership of the land. This is a procedure for the speedy acquisition of land and normal conveyancing practice does not have to be adopted. Goodwill: The price which a purchaser of a business is prepared to pay, above the value of the premises and stock, for the probability that customers will continue to resort to the old place of business, or continue to deal with the firm of the same name: it is the benefit or advantage which a business has in its connection with its customers. Investment Property: Generally, any property purchased with the primary intention of retaining it and enjoying the total return, i.e. income and/or capital growth, over the life of the interest acquired. Land: Land includes buildings and structures. Existing interests and rights in land, such as freehold or leasehold together with any existing rights can be compulsorily acquiried either as a whole or in part. Lands Tribunal: A tribunal for England and Wales set up under the Lands Tribunal Act 1949 and proceeding in accordance with rules made by the Lord Chancellor. Its jurisdiction, amongst others, includes adjudication on disputed compensation for the compulsory acquisition of land. The tribunal comprises the Present (who must be a barrister or have held judicial office) and members who are all either legally qualified or experienced in valuation. Marriage Value: Latent value which is or would be released by the merger of two or more interests in land. For example, two adjoining parcels may be worth more as one property that the aggregate of their separate values. Similarly, two interests in the same property (such as freehold and the leasehold) may have a greater value when merged than the sum of their individual values. Mitigation of Loss: The duty of a claimant seeking compensation to take any reasonable steps open to him to reduce or avoid loss. For example, a claimant could mitigate loss by seeking a number of quotes from reputable contractors and instructing the cheapest. New Rights: Compulsory purchase can be used by most acquiring authorities to create and acquire new rights over land. An Example would be the creation of a right of way or a right of support. Noise Payment: A noise payment is available to moveable homes within 300 metres of a new or altered road who have been seriously affected by increased noise levels as a result. It is payable at the discretion of the Highway Authority. Notice of Entry: A notice served on the owner and occupier(s) of a property by an authority possessing compulsory purchase powers requiring possession to be given by a date prescribed in the notice. A minimum of 14 days notice must be given. Notice to Treat: A notice served on owners, lessees and mortgagees by an authority with compulsory purchase powers to acquire land. The notice gives particulars of the property to be acquired, demands details of the recipients interest in the land and his claim for compensation and states that the authority are willing to treat for the purchase of the land. Public Development: A new or altered highway, aerodrome or other public works. Ransom Value: The ability to obtain a high price for a small area which is key to the site being developed. For example, where your land could unlock the development potential of an adjoining site by providing the only possible access to it. Relevant Date:In the context of a Public Inquiry it is the date of the letter which the Confirming Minister sends to the acquiring authority and the objectors confirming that an Inquiry is to be held. This date is used to establish timetables for the Inquiry procedure. Statement of Case: A statement prepared by the acquiring authority which sets out full particulars of the case to be put forward at the inquiry and justifies the reasons for making the CPO. Statement of Reasons: Sets out the authority's reasons for seeking to acquire the land, and will accompany the CPO. Taking of Entry: This is the act of an acquiring authority physically entering and taking possession of a property following service of Notice to Treat and Notice of Entry. Contact Us

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