Eddisons boosts London operation with acquisition of HNG chartered surveyors
Property consultancy Eddisons has strengthened its presence in London after acquiring Hargreaves Newberry Gyngell (HNG), a London-based firm of chartered surveyors in a £1m deal. Based in central London, HNG’s 14-strong team will integrate with Eddisons’ team of 300 staff, who work across 20 UK offices.
HNG provides a wide range of commercial property services such as agency, management and lease advisory services to clients including private investors, property funds and commercial businesses. The acquisition will strengthen the Eddisons property services capability in London and provide a platform for the firm’s further growth across the South East.
Eddisons director Anthony Spencer said: “I am very pleased to welcome the HNG team to Eddisons and the acquisition significantly strengthens our property services capability in London. Like Eddisons, HNG has an excellent reputation for high quality professional advice, and we continue to seek opportunities for further growth.”
Torquil Gyngell, a director at HNG, said: “Through our talented team of people, HNG has developed a market leading reputation for delivering quality property advice throughout London and the Home Counties.
“We are excited to be joining the Eddisons team as there is a natural overlap with the services we offer and an opportunity to work with like-minded individuals. This strengthens our proposition to clients and I look forward to developing the opportunities the deal presents.”
The acquisition continues Eddisons’ expansion which saw the firm acquire Barker Storey Mathews in the East of England in 2019. In the last five years, Eddisons has also acquired planning consultant Croft, real estate and business valuers Taylors, and leading property auction business Pugh & Co.
Eddisons appointed Property Managing Agent for pioneering Meridian Water development
Eddisons has been chosen by Enfield Council as Property Managing Agent for their flagship Meridian Water Estate. The 3 year appointment, with a potential 3 year extension, was awarded after an OJEU competitive tender process.
The award will see Eddisons manage the existing and new tenancies on the 37 hectares of land that the Council currently owns at MW, as the Council brings forward the gamechanging development scheme. Tenants currently include Vibration Group, North London Waste Authority, Troubadour Theatre and Building Bloqs.
Meridian Water will ultimately see over 10,000 homes, flexible commercial space and leisure facilities created over a 25-year period. The scheme is also anticipated to deliver thousands of new jobs.
Cllr Nesil Caliskan, the Leader of Enfield Council, said:
“I welcome our new partnership with Eddisons, which will enable us to maximise our estate at Meridian Water, raise its profile in attracting new tenants, and deliver an integrated management service to those currently on site.”
Javid Patel, Head of Public Sector at Eddisons, was delighted with the appointment:
“Securing this significant mandate to provide property services to Enfield Council at “Meridian Water is an absolutely key win for us. We intend to become advisors of first choice for the Public Sector and the Meridian Water appointment is central to this vision.’
David Rowling, Head of Property Management at Eddisons commented:
“We are looking forward to working on this unique portfolio as it evolves over time. Meridian Water is a fantastic development and we are looking forward to supporting the Council as they deliver their exciting long term plans.”
Whether you’re an occupier, investor or landowner and would like more information , please contact Javid Patel, Head of Public Sector.
Eddisons expands across Eastern England with acquisition of BSM
Leading national property consultancy, Eddisons, has today confirmed the acquisition of Barker Storey Matthews (BSM) one of the largest independent chartered surveying firms in Eastern England.
BSM was recently ranked the overall winner for Eastern England in the EG Deals Competition 2018 (‘EG’) for commercial property agents and acquisition will see the experienced 38-strong team integrate with the current Eddisons team.
Eddisons will also expand its national office network to 20 by incorporating BSM’s premises in Cambridge, Huntingdon, Peterborough and Bury St Edmunds, further strengthening the company’s ability to deliver specialist property services on nationally.
BSM is a multi-disciplinary practice and delivers services consistent with those offered by the existing Eddisons business, including commercial property agency, property management, building consultancy, professional services (including valuations) and planning services.
Eddisons Partner, Anthony Spencer, said: “I am very pleased to welcome the BSM team into Eddisons; it widens our geographical coverage to twenty offices around the UK and increases the number of clients. This is our fifth Eddisons acquisition since we joined the Group and we continue to seek opportunities for further growth, both organically and by strategic acquisition.”
Steve Hawkins, Managing Director at BSM, commented: “Through our talented team of people, Barker Storey Matthews has developed a market leading reputation for delivering quality property advice across the Eastern region.
“We are excited to be joining the Eddisons team as there is a natural overlap with the services we offer and an opportunity to work with like minded individuals. This strengthens our proposition to our dedicated client base and we look forward to developing the opportunities the deal presents. Not only will we be able to offer a greater spread of professional services but we will be able to do so on a UK wide basis.”
This marks the second acquisition of 2019 for Eddisons, having bought transport and planning consultancy Croft earlier this year. The firm has also acquired industrial auctioneers CJM Asset Management, real estate and business valuers Taylors, and leading property auction business Pugh & Co.
The BSM deal marks the second acquisition of 2019 for Eddisons.
Which UK areas are struggling to meet commercial property demand?
The UK’s entrepreneurial spirit continues to flourish, with a remarkable 5.5 million businesses operating in 2016 throughout the country, over 99 per cent of which are SMEs. However, in some areas, the demand for commercial property outstrips the supply. We take a look at the areas where demand is high and what sectors are faring best.
The country’s regions are out-performing London in terms of transaction volume for the first time since 2013. In 2015, a total of £24 billion was invested in commercial property – the highest level on record. The reasons for this include an improvement in the UK economy as a whole last year, as well as rising occupier demand, mainly within the industrial and office markets. And while London remains a favourite with overseas investors, particularly within the prime market, the regions beyond the capital offer excellent investment opportunities. Manchester, Edinburgh, Leeds, Birmingham and Bristol are all performing well, both in terms of rent and availability.
Despite some of the major cities performing well, and meeting commercial property demand, others are failing to satisfy the needs of small and medium sized business owners.
Scotland in general, Edinburgh notwithstanding, has seen a decline in demand during the third quarter of 2016, according to RICS, with at least 12% of prospective business owners failing to have their office needs met.
Away from the capital, data prepared by Oxford Economics reveals that office job growth forecasts were strongest in Nottingham and this is confirmed by RICS’ UK Commercial Property Market Survey – Q3 2016, which shows that office and industrial space in Nottingham remains in high demand, outstripping current supply.
The East Anglian market is also lacking in industrial commercial property, particularly in the mid-Cambridgeshire area, where many commercial property owners are converting their properties to residential, to capitalise on the demand for housing rather than commercial rentals.
The North East is reporting a continued shortage of quality accommodation, particularly among the office and industrial sectors and analysts predict a further shortfall in the future if commercial property values continue to plateau.
In the North West (excluding Manchester) commercial property activity is reduced, especially in the retail sector, where many high streets are suffering due to out-of-town retail parks and shopping centres, leading to a decrease in rents. Although some areas of the North West are seeing an increase in industrials.
The industrials sector in Northern Ireland is currently strong, driven by internal investment, as opposed to overseas’, while in Scotland, excluding Edinburgh, uncertainty surrounds commercial property in light of talk of a second independence referendum.
In the South East, the housing shortage has led to an increase in residential development to the detriment of commercial, leading to a decrease in the availability of commercial properties, particularly industrial units.
Throughout the South West demand for prime commercial space is still outstripping supply and has led to an increase in interest from investors keen to maximise their returns on scarce resources.
The West Midlands has seen strong demand for industrial units and retail premises which contrasts with a sluggish office market.
Yorkshire and Humberside’s rural prime office and industrial market is reported as being under-supplied, increasing rental costs accordingly. Whereas Hull, which will be the UK’s Capital of Culture 2017, is seeing increased interest in small retail units as well as seeing a potential boost by virtue of its status as a renewables hub.
Our quick snapshot of the state of the commercial property market yields mixed results throughout the country, with some areas reporting increased confidence and others sounding a note of pessimism.
If you’re interested in investing in commercial property or wish to rent in any location in the UK, talk to a member of our team. Our highly-qualified and -experienced advisors can offer you advice and information to enable you to make an informed choice about your purchasing or rental options.
Infographic: The Rise of Luxury Student Accommodation
A month on from Freshers’ Week frolicking, students at universities up and down the country are now settling down after the initial whirlwind of new friends, a new city, and a new place to call home. But what exactly does this new home consist of?
Ian Harrington, building surveyor and fit out specialist at Eddisons, says; “Student accommodation is not ‘one size fits all’. There is now a wider choice than ever before when students choose their term-time accommodation; from traditional university owned cluster flats, to luxury city centre studios, however each of these comes with its own (potentially high) price tag.”
Eddisons have looked into what today’s students can expect from their accommodation. We consider what factors are deemed important when choosing accommodation, and how much the average student can expect to pay for the privilege.
From The Young Ones to the more fortunate ones, we present the current state of university accommodation and the range of students catered for. It seems there’s been a shift from digs to bigwigs…
Understanding commercial rent review disputes and the Calderbank Offer
In the course of commercial property letting, it is sometimes inevitable that a dispute may arise regarding the rent – either from the side of the landlord or the tenant. We examine the most famous rent dispute in an effort to understand how such disagreements can be resolved.
What is a Calderbank Offer?
A Calderbank Offer is an offer made ‘without prejudice, save as to costs’ in order to settle a dispute without incurring extra costs and the possibility of a full trial. The term stems from a divorce case in 1975 in which the judge decided that in a case of litigation, where the winning party has refused an earlier settlement, the losing party may present the details of the offer as evidence towards costs.
The implications this has in commercial property rent disputes are that if the winner of such a dispute is awarded less costs than was previously offered, the losing party may be able to pay a reduced amount of costs to the winning party.
How does this affect commercial property rent review disputes?
Rent reviews can be a bone of contention between landlord and tenant. They typically take place every three to five years – historically this period of time was seven or 14 years. However, with the shorter terms of modern commercial leases, usually between 10 and 15 years, rent reviews now occur more frequently.
The rent review clause in the lease will set out when the reviews will take place and how the new figure will be arrived at, what procedure will be followed and how any disputes, if any, will be dealt with. The most common method of recalculating a commercial rent is revaluation in the open market.
The Royal Institution of Chartered Surveyors (RICS) publishes a voluntary Code for Leasing Business Premises in England and Wales which aims to promote the values of fairness and negotiating commercial leases on the basis of informed choices, for both landlords and tenants.
The review will be based on the open market value of similar properties, on similar leases, in the local area. In some cases, the lease will stipulate that the rent will be increased, ‘upwards only’ which allows the landlord to increase it by the agreed amount. However, if, during the course of his or her research, the tenant discovers that the local market value is actually lower than the increase being asked for by the landlord, negotiations may take place.
This is where the Calderbank offer is of particular relevance to commercial property. If, during the course of negotiations, a tenant makes the landlord an offer of a reduced rent via a negotiator (usually an independent surveyor), in line with local market values and this is at first refused but then later accepted by the landlord, the tenant can use the first refusal both to argue their case and to claim any subsequent costs.
Commercial rent reviews can be fraught with difficulties and create an atmosphere of anxiety and disharmony between landlord and tenant. In order to avoid such a scenario it is essential that before the tenant signs the lease it is professionally examined to ensure that the clauses are fair and reasonable for both parties.
For advice and information on any aspect of commercial rent reviews, either from the perspective of a tenant or a landlord, contact the Eddisons team. Our highly-qualified, independent RICS surveyors have extensive and current experience on a wide range of matters relating to what can be a thorny issue.
Written by: Steven Jones on Wednesday 13/07/2016
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