< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY Y orkshire’s industrial and logistics property sector is bustling, with numerous important deals, newly revealed plans, and novel schemes breaking ground and completing recently, highlighting the region’s prowess as a prime location to establish, and invest in, new developments. It comes after a year of extreme lack of supply (in 2022), and a continuing flight to better quality, more sustainable buildings for occupiers. In South Yorkshire, construction of a state-of-the-art 405,411 sq ft distribution and logistics facility has begun at Eclipse, Doncaster. Building contractor Bowmer & Kirkland has been appointed to deliver the smart scheme, whilst CBRE’s industrial team in Leeds, alongside Colliers, are joint agents for the Grade A industrial space, acting for Blackbrook and Rula Developments. Doncaster Council granted planning consent in December 2022 for the speculative development unit, which is scheduled for completion in January 2024 and is expected to achieve a BREEAM Excellent certification and EPC A Rating. The carbon neutral building will deliver 381,150 sq ft of high quality, modern warehouse/industrial space to meet demand in the region and more than 24,000 sq ft of Grade A office accommodation. The development also has capacity for up to 100% coverage of roof solar PV panels. Mike Baugh, executive director, CBRE Leeds industrial team, said: “We are delighted to see works starting on site at the brand new Eclipse logistics development which will deliver much needed high quality industrial space to the regional pipeline. Eclipse offers market-leading sustainability credentials, designed specifically to reduce energy use, mitigate climate risk and boost biodiversity. It fulfils a number of ESG criteria sought after by occupiers.” Ben Ward, Managing Director at Rula Developments, added: “With limited speculative development taking place within the industrial and logistics sector, at a time of severe supply shortages, we are proud to be driving forwards with this extensive unit.” A sector With a plethora of deals and new schemes hitting headlines, Yorkshire remains a hotspot for industrial and logistics property, developers and investors. 10-13.qxp_Layout 1 02/05/2023 15:08 Page 1www.blmforum.net Business Link 11 COMMERCIAL PROPERTY Remaining in Doncaster, Panattoni has put the first spade in the ground to start speculatively developing a 417,570 sq ft logistics facility. Winvic Construction Ltd has been appointed main contractor for the construction of Panattoni Doncaster 420, following the approval of planning consent from Doncaster Council in February. The facility will be Net Zero Carbon and is being built to a BREEAM sustainability rating of ‘Excellent’ and an EPC rating of ‘A’. Other sustainability features include 20% electric vehicle charging spaces, 15% roof lights and the roof being designed to hold up to 100% PV panels. Completion of the development, said to be the largest speculative logistics facility under construction in Yorkshire, is expected in January 2024. Dan Burn, development director at Panattoni, said: “Panattoni are delighted to be underway with another 13 Á Mike Baugh, executive director, CBRE, Rob Whatmuff, head of Leeds, Colliers, Alice Vacani, vice president, Blackbrook, Danielle Raunjak, associate director, CBRE, and Ben Ward, Managing Director, Rula Developments, at Eclipse, Doncaster 10-13.qxp_Layout 1 02/05/2023 15:08 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 10-13.qxp_Layout 1 02/05/2023 15:08 Page 3www.blmforum.net Business Link 13 COMMERCIAL PROPERTY sustainable speculative commitment in the South Yorkshire region and we were very pleased to welcome Cllr Glyn Jones and representatives of Business Doncaster to the site to witness the early progress we have made. Panattoni Doncaster 420 occupies a prime location in South Yorkshire with fantastic transport links, providing easy access to both national and international consumer and industrial markets.” Danny Nelson, director of industrial, distribution and logistics at Winvic, added: “It’s great to be working in partnership with Panattoni once more and we’re delighted Winvic was selected to construct this facility due to our expertise in delivering projects with Net Zero Carbon credentials and delivering social value. We will be working in partnership with Panattoni, our supply chain and the local authority to take an active role in the community, committing through an Employment and Skills Plan, to prioritise training and employment opportunities for local people and businesses. The team has just commenced the initial groundworks programme and we aim to build on our already excellent relationship with Panattoni throughout the project.” Showing appetite amongst investors for Yorkshire industrial and logistics property, just last month Glenbrook Investments acquired a multi-let industrial estate in Barnsley for £4.65m. Fall Bank Industrial Estate in Dodworth comprises eight warehouses totalling 97,761 sq ft and is located less than two miles west of Junction 37 of the M1 motorway. The estate is fully let. Solomon Halpern, investment analyst at Glenbrook, said: “We are pleased to widen the scope of our portfolio with the acquisition of this industrial asset in Yorkshire. Fall Bank Industrial Estate provides a solid return and presents an opportunity to add value through refurbishment and improved site configuration. We look forward to delivering a more efficient and well improved multi-let industrial estate as we seek to maximise its income potential.” The site was purchased off-market from a private vendor. Meanwhile, Arrow Capital Partners has completed the off-market acquisition of a logistics warehouse near Leeds, in Birstall, for its strategic industrial real estate (SIRE) joint venture with Cerberus. The 140,000 sq ft property was bought for £10.35m from the occupier, XL Joinery, in a sale and leaseback transaction. Birstall 140 includes a two-storey office block which has recently been refurbished. These represent just a few recent deals and developments that have taken place across the region, with the industrial and logistics property sector continuing its buoyant legacy. © stock.adobe.com/marcinjozwiak 10-13.qxp_Layout 1 02/05/2023 15:08 Page 414 Business Link www.blmforum.net CORPORATE FINANCE S ome of the key tools used in corporate finance include financial analysis, valuation methods and risk management techniques. These may all involve using financial data to understand the current and future position of the corporation, while valuation methods are used to determine the present value of the corporation and its assets, and are critical in making investment decisions. This all boosts capital, a critical aspect for many a firm with concerns for supporting itself financially. Some of the routes you could take to achieve this may involve issuing stocks, bonds or other securities, as well as obtaining loans from banks or other financial institutions. Corporate finance professionals must have a deep knowledge of the various capital- raising options available, but it’s also an advantage for the business owner to have an understanding of these approaches, as well as the associated risks and costs of each option. The role of corporate finance overall is to ensure that your corporation is able to make sound decisions that maximise its value for shareholders, while also ensuring the long- term sustainability of your financial strategy. There are a number of strategies that may work for you, depending on your business goals. Here’s where we once again return to that all-important matter of capital, which is a key exchange component to the method known as equity financing. This involves selling shares of the corporation to investors in exchange for cash, an advantage being that it does not require the corporation to make regular interest payments or repay the principal. Additionally, the corporation does not have to guarantee any specific return to investors. However, the downside is that equity investors become shareholders in the corporation and are entitled to a portion of the profits, as well as a say in corporate decisions through voting rights. For those up for more of a risk, preferred Making finances Managing finances is crucial for any corporate organisation, but it’s not always enjoyable for owners who would rather focus on building their brand and customer base. But there are ways to break this task down into manageable areas to tackle as needed. 16 Á 14-17.qxp_Layout 1 02/05/2023 15:10 Page 1www.blmforum.net Business Link 15 CORPORATE FINANCE © stock.adobe.com/ipopba 14-17.qxp_Layout 1 02/05/2023 15:10 Page 216 Business Link www.blmforum.net CORPORATE FINANCE stock is a type of equity security that has a higher priority than common stock in terms of dividend payments and liquidation proceeds, and can thus provide a higher return to investors than common stock, without the voting rights and control associated with equity financing. However, the downside is that preferred stock can be more expensive for the corporation than debt financing, and the dividend payments are not tax- deductible. There are a couple of options that turn more control over to your investors, which may bring added benefits from allowing them a share of the power or benefits you hold in your business. Convertible securities allow a conversion of investment into equity shares at a later time, for instance, providing the option for investors to become shareholders at a future date. However, the downside is that the conversion feature can dilute the ownership and control amongst all your existing shareholders as a result, which is where crowdfunding might come in. Particularly where it isn’t necessary to secure more than a small amount from each investor, this web-based alternative can be a cost-effective way to raise capital, and can also provide valuable feedback and exposure. There’s also the possibility to encourage higher © stock.adobe.com/ joyfotoliakid 14-17.qxp_Layout 1 02/05/2023 15:10 Page 3www.blmforum.net Business Link 17 CORPORATE FINANCE investments through the employment of tiered reward options for any backers, offering them a slice of any gains you can offer as a gesture of thanks. However, the downside is that it may not be suitable for larger capital raises, and the investors may not be sophisticated or experienced, this method instead relying on amassing support through strength in numbers. As touched on earlier, corporate finance also deals with managing financial risks that can arise from a variety of sources, such as interest rate fluctuations, currency fluctuations or changes in commodity prices. It can be a comfort to know that there are several risk management techniques which can be used to minimise the impact of these risks on the corporation’s financial position, no matter your business or strategy. Hedging may be the most well- known and recognisable from its connection to the phrase ‘hedging your bets’. This is more or less what it means to use financial instruments, such as futures contracts, options or swaps, to offset the risk associated with a particular investment or financial position. For example, a corporation might use a futures contract to hedge against fluctuations in the price of a commodity it uses in its production process. While hedging can reduce the corporation’s exposure to risk, while also providing some level of protection against adverse market movements, diversification involves spreading out the risk factor by investing across different asset classes or sectors. In reducing the overall risk of your corporation’s portfolio, diversifying potentially lessens the impact of any one investment or market event on its overall financial position, and might involve investing in a mix of stocks, bonds and real estate as a few examples. As a variation on this approach, derivatives can be used through strategies such as currency swaps, to cushion the blow from fluctuations in interest rates or stock market value. Of course, good old-fashioned insurance against concerns such as property damage and liability is always available too, and much lower risk than the expertise and attention to detail required when manipulating stocks and shares. Identifying the best choices for you to make when gathering capital into your organisational coffers, and keeping it there by averting risk factors, will ultimately depend on your goals and how many risks you’re willing to take to achieve them. Paying attention to your strategic direction will help in identifying those potential risks, evaluating their impact on your financial position, and developing mitigation strategies as needed. With the help of corporate finance professionals, knowing your objectives and options will see you well on your way to helping the finance of your business grow and thrive. 14-17.qxp_Layout 1 02/05/2023 15:10 Page 418 Business Link www.blmforum.net RELOCATION AND INWARD INVESTMENT © stock.adobe.com/LIGHTFIELD STUDIOS Finding the right course for your business Moving your business can be a daunting task, but it can also bring significant benefits such as access to new markets and better infrastructure. However, if a full-scale move is not feasible, inward investment can be a great alternative that offers similar advantages. Finding the right course for your business Moving your business can be a daunting task, but it can also bring significant benefits such as access to new markets and better infrastructure. However, if a full-scale move is not feasible, inward investment can be a great alternative that offers similar advantages. 18-21.qxp_Layout 1 02/05/2023 15:11 Page 1www.blmforum.net Business Link 19 RELOCATION AND INWARD INVESTMENT The upheaval of moving won’t be a strange concept to anyone who’s ever so much as moved house. Moving an organisation or business is much the same, in having to shift everything of importance and value within it to a new city, or in some cases a new country. Even the reasons for relocation can be very similar, such as to accommodate new working opportunities, or to make business more convenient for the owner’s family life or changes in personal circumstance. Companies may also relocate operations to take advantage of better business opportunities or more favourable economic conditions. But if a full-scale pack up and move effort isn’t viable for any reason, especially on the international level, inward investment is ideal for allowing more opportunity to come to you through investment in the capital or cultural wealth of another area. This strategy most typically involves a company or individual from one country investing in a business or project in another, which can bring significant benefits to the initiator such as job creation, increased economic activity, or access to new technologies and expertise. These can each be boundlessly valuable in the transfer of knowledge and skills, and may help to stimulate innovation and growth in the local economy. Both relocation and inward investment can be used in varying combinations for an array of benefits, but perhaps the biggest advantage of the former comes in providing your business with access to new markets. By relocating to a new city, state or country, businesses can access new markets that were previously unavailable to them, which opens up possibilities for expansion of a customer base, increasing sales and otherwise growing business out from relative seclusion. Even on the micro level, a company that relocates from a small town to a large city will be better positioned to reach a much larger customer base and increase its revenue as a result. Relocation can also help your company work harder for you through access to better infrastructure, such as transportation links for streamlining logistics operations. But a more thoughtful mode of efficient productivity can be facilitated by inward investment. Expanding your organisation’s pool of income can be easily managed by utilising lower costs in other countries, such as for rent or taxes, thereby reducing operating expenses and further increasing profitability. But in balancing reduction of operation, manufacture or labour costs 20 Á 18-21.qxp_Layout 1 02/05/2023 15:11 Page 2Next >