Agenda item

The committee to receive a presentation from the Property Development Project Manager on the redevelopment of Watford Business Park.

The committee received a presentation from the Associate Director of Property and Asset Management and the Property Development Project Manager. The presentation provided an overview of the scheme, the rationale, the letting strategy, the financial undertakings and the risks and challenges faced. 

                Members asked about confidence levels in reaching the lettings’ target; officers noted that work with lettings agents was ongoing and they were actively looking at enquiries in the market. There was not a significant supply of industrial accommodation in Watford and the range of units provided an opportunity to meet different needs. The forecasting was prudent but the team were encouraged by demand levels.

                Noting that the park looked to provide a 4-5% return on investment, the committee asked about the lifecycle of the warehouses. Members were advised that it should be at least 40-50 years and the structure made them flexible for different uses. In response to a question about letting to the voluntary sector, the project was principally an investment venture as part of the commercial investment portfolio. As such, it was not specifically geared to the voluntary sector and had planning consent for industrial and storage uses.

                Developing the discussion around rates of return, officers noted that costs had been projected against rents. Advice on viability had been sought and regular checks and changes were made to this assessment. The industrial market remained robust and the business park represented a net gain in capacity as well as providing job creation opportunities.

                The committee asked about the process to procure an operator for the onsite café. The scheme was always instead to sit within the investment portfolio and this had been an open market letting process. The offers that had come in had been assessed on the basis of financial benefit and heads of terms had been agreed with a national chain. Other more community-focused opportunities within the town’s parks had been highlighted to other parties in the bidding process.

                Noting the sustainability credentials of the park, it was hoped that this would set a precedent in industrial developments as it had been awarded a BREAM very good rating. The leases also included green clauses to hold tenants to account.

                Turning to transport, the officers noted that cycling had been embedded in the development with a shower in every unit, cycle storage and Beryl stands. The bus service was outside of the council’s remit but there were routes to Croxley Park as well as car parking available onsite.  

                Members asked how the opportunities for this development being next to Croxley Park were being maximised. The two parks had very different aims and were managed separately. Lambert Smith Hampton provided the property management services which enabled coordination.

                Responding to a question about building types, it was noted that there was not the land value to justify a multi-storey approach but that the units provided the flexibility to add a mezzanine if needed. 

                The Portfolio Holder commented that this had been a great seed funding project in an area that previously had been underfunded.

                    RESOLVED –

                     That the presentation be noted.