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Renewable energy and residential development in South West is looking positive while commercial sector lags behind15th January 2014

Residential development in South West steams ahead while commercial sector falls behindCommercial property developer London and Devonshire Trust (LDT) says that only the prime locations across the South West are demonstrating marginal demand from occupiers in the commercial sector.

Daniel Stephenson, Managing Director of South West based LDT, the company behind the 22-acre Plymouth Enterprise Park (PEP) at Ernesettle Peninsula in Plymouth, said: “Only the region’s major cities such as Exeter and Bristol offer any rationale behind speculative commercial development potential, and this has yet to happen on any scale.

“There are plenty of sites ready for occupation from Bristol to Exeter, but the market is showing little interest with a distinct lack of any major pre-lets. It comes as no surprise then that outside of these major city hubs we are not experiencing any speculative building with investors remaining unconfident to return to speculative building unless there are tenants or owner-occupiers lined up.

“It will be interesting to see if speculative development might return to Bridgwater with the announcement that Hinckley Point will be going ahead.”

LDT has itself submitted outline planning application for the development of 168,000 sq ft of B2 and B8 at its Plymouth Enterprise Park, having already secured energy tenants and open storage operators for approximately ten acres.

Mr Stephenson said: “At PEP we have been successful in attracting energy developers to the site. This sector has become the main source of interest while the traditional drivers for commercial demand that would benefit from the superb location and readymade infrastructure at PEP, are not yet demonstrating demand for commercial space above 25,000 sq ft.

“To this end I see the overall opportunity in the region for 2014 lies within the renewable energy and residential sectors.”

Apart from Plymouth Enterprise Park, a subsidiary company of LDT – Devonshire Homes – has recently acquired the vacant office block Trinity Court at Southernhay in Exeter with planning permission to convert into 29 apartments. The gross development value is estimated to be worth £7.25m.

Mr Stephenson added: “In the residential sector housing shortages are generating more opportunities both to convert empty commercial premises into residential units, and in areas where councils do not have a five-year housing plan.

“I very much hope that we see a stronger recovery in the employment sector which is needed to support the housing sector in the South West. What is also crucial to both is a sustainable and cheaper source of energy.”  


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