The Brinell Building, Brighton, is fully pre-let as Unity Technologies signs-up

  • Record rent achieved for Brighton
  • Unity becomes latest tech occupier at new office development

The Brinell Building, a speculative office development in Brighton, has been fully let ahead of completion in June 2019. The newly developed 65,253 sq ft Grade A, seven-storey office building, is being delivered by developer and contractor McAleer & Rushe.

The Brinell Building achieved record rents for the city with each pre-let transaction, topping out at £32.00 per sq ft.

Unity Technologies, the ApS video game development company based in San Francisco with a market cap in the region of $2.5Bn (May 2017), has become the final occupier to take space at The Brinell Building. The tech company, who will be the anchor tenant, has committed to 37,398 sq ft over the first to fourth floors on a ten-year lease.

Unity Technologies joins other standout occupiers including Diversified, the leading technology integrator delivering innovative digital media, broadcasting, electronic security and OTT solutions, which has pre-let 8,272 sq ft on the ground floor on a 15-year lease. As well as professional services firm Dehns which has pre-let the top two floors covering 18,514 sq ft on a 15-year lease.

Angus Monteith, Property Development Director at McAleer & Rushe, said:

McAleer & Rushe successfully developed CityView in 2016 and we saw the opportunity to bring forward additional office space to meet untapped demand in central Brighton. Our decision to speculatively develop The Brinell Building has been rewarded with 100% pre-lettings to a first class tenant line-up six months ahead of practical completion.”

Jack Riley, Associate, National Offices Knight Frank, said:

The Brighton occupier market has historically been underpinned by corporate giants like L&G, American Express and BUPA but the letting success at The Brinell Building highlights demand from the ever-expanding TMT sector. Brighton’s amenity offering coupled with a young, skilled labour force and growing tech sector is making it a hotbed for talent. With vacancy rates at an all-time low, speculative schemes providing Grade A office stock, such as The Brinell Building, are crucial for the continued growth of Brighton’s thriving business community.

Emma Lockey, Associate at CBRE, said:

We have worked alongside Unity for a number of years, advising on its original offices at CityView. We are delighted to have secured The Brinell Building for one of Brighton’s rapidly growing businesses in what is one of the largest office pre-lets for many years.

Knight Frank acted jointly with SHW for McAleer & Rushe and CBRE acted for Unity Technologies.


McAleer & Rushe sign agreement with Dalata Group for new Birmingham City Centre Maldron Hotel

Northern Ireland based developer and contractor McAleer & Rushe has announced that it has signed an Agreement for Lease with the Dalata Hotel Group Plc to deliver a new 330 bed, four-star Maldron Hotel in Birmingham City Centre.

This scheme represents another significant project in the long-standing partnership between the two companies which has seen McAleer & Rushe deliver numerous hotels across the UK and Ireland for the leading hotel operator. The most recent of these include the 237 bed Maldron Hotel in Belfast which opened for trading in March 2018 ahead of program and a 265 bed Maldron Hotel Newcastle Upon Tyne scheduled to open in Q1 2019.

The new c.£40 million Birmingham project by McAleer & Rushe, is strategically located on a prominent site fronting onto Queensway and is a five-minute walk from New Street Train Station. Nearby landmarks include Beetham Tower, one of Europe’s largest mixed-use buildings, the Mailbox and the Bullring Birmingham’s premier shopping destination.

The hotel, which is subject to planning approval, is scheduled to be delivered by Q1 2021 and is expected to create 100 full time and part time jobs, once completed. It will be the Dalata Hotel Group’s second hotel in Birmingham following its successful acquisition of the Hotel La Tour in 2017 which now operates under the contemporary Clayton brand.

Commenting on the announcement Stephen Surphlis, Property Director, McAleer & Rushe said:

The new Maldron hotel is a significant project that will enhance Birmingham’s continued development and add to the regeneration within the City. With a large economy and major projects in close proximity including the new HMRC Regional Hub, HSBC’s Headquarters and the pending HS2 high speed rail network linking to London we are confident that our investment in the City will make an important contribution to the economy and provide a modern hotel offering for business users as well as leisure visitors.

Having delivered a range of projects for the Dalata Group across the UK and Ireland we are looking forward to partnering with them, once again, to deliver this exciting new hotel scheme.


Dermot Crowley, Deputy CEO – Business Development and Finance, Dalata Hotel Group said:

”We are very excited by securing this excellent opportunity. Birmingham is a very attractive hotel location and ensures that we continue to grow our development pipeline in the UK as per our growth strategy. We will work closely with McAleer & Rushe through the development phase and look forward to introducing the Maldron brand to Birmingham.”


 
McAleer & Rushe are expecting to submit a planning application to Birmingham City in Q3 2018. Dalata Hotel Group will enter into a 35 year lease on completion of the hotel, subject to five year reviews and linked to Retail Price Index.

Elsewhere in the city, McAleer & Rushe, is on site in Lancaster Circus in where it is constructing a 1000+ bed student accommodation scheme.


Plans for £75 million Belfast landmark redevelopment unveiled

The scheme, focused on state-of-the-art workspace is to be known as ‘The Sixth’ and will include 230,000 sq ft of commercial space and ‘active’ ground floor uses such as cafes, restaurants and retail.

The project’s name is inspired by the newspaper’s original evening edition. The street vendors’ call of “Sixth Late Tele” was familiar throughout Belfast for more than a century.

Designed by Stirling Prize-winning architectural practice Allford Hall Monaghan Morris (AHMM), the proposals will deliver 2,000 high value jobs as part of an emerging creative district centred on the education, culture, media and technology sectors.

The announcement comes as a Proposal of Application Notice (PAN) for the scheme was submitted by Bel Tel LLP, the site owners. The LLP, which acquired the site in late 2016, is the first joint venture by Belfast City Council with a private developer, McAleer and Rushe.

The submission of the PAN marks a significant milestone for the project that will see an investment of £75 million to bring one of Belfast’s most famous landmarks back into active use.

Launching the proposals Stephen Surphlis, Property Director of McAleer and Rushe, on behalf of Bel Tel LLP said:

These are important proposals that will bring a landmark building associated with the news industry back into use for a digital age. Adjacent to both the Ulster University Campus and Central Library, The Sixth will play an important role in the regeneration of Belfast by delivering high quality workspace for global and local businesses, particularly those in the professional, creative and technology sectors.

Built in 1886, the Belfast Telegraph building was home to the city’s newspaper for more than 100 years, before it moved to new premises in June 2016. The grade B2 Listed Building will be comprehensively refurbished as part of the redevelopment of the wider one-acre site.

Suzanne Wylie, Chief Executive of Belfast City Council explained:

The partnership is delighted to unveil its plans for The Sixth. The Sixth will add to the vibrancy of this emerging creative district and help stimulate further regeneration in Belfast”.

The proposals for the site include a public walking route through the building, and new retail and food and beverage opportunities on the ground floor that will enliven the streetscape and provide a range of amenities to the area.

Ms Wylie explained that the proposed scheme is being showcased to an international audience of investors, developers and occupiers today at MIPIM in Cannes – the world’s largest real estate conference.

Councillor Mairead O’Donnell, Chair of Belfast City Council’s City Growth and Regeneration Committee, explained:

This is an exciting milestone for what is Belfast City Council’s first joint venture with a private sector developer. As part of the delivery of our City Centre Regeneration and Investment Strategy, the Council made the strategic decision to invest in this part of the city centre and stimulate further regeneration.

The partnership’s proposals will help to re-energise this area with a scheme that has been designed to respect the existing built heritage in this part of the city, and The Sixth will build on the momentum already generated by the Ulster University investment.

A planning application for the scheme will be submitted following a 12-week pre-application community consultation led by national planning consultants Turley. The consultation will provide local residents, businesses and other members of the public with an opportunity to see and to comment on the plans.

It is expected that The Sixth will create 650 jobs during construction, and more than 2,000 jobs when fully occupied.


Construction begins on first new office development in Brighton since Brexit

Knight Frank and SHW appointed as joint letting agents.

Developer and Contractor, McAleer & Rushe, has begun construction on The Brinell Building, Brighton’s first new office development since Brexit. The development is due to complete in January 2019.

Knight Frank LLP and SHW have been appointed as joint-letting agents for the 65,000 sq ft new build office. The Brinell Building, designed to a Grade A office specification, comprises seven storeys and roof terraces with views across Brighton and the seafront. The development is targeting a BREEAM ‘Excellent’ rating and includes amenities such as secure underground car and cycle parking, electrical car charging points, private changing booths and showers, a drying room and a double height reception.

Angus Monteith, London Property Director at McAleer & Rushe said:

We are delighted to be underway with construction of The Brinell Building and we look forward to the building completing in January 2019. The 65,000 sq ft building is double the size of our last Brighton office project at CityView which was a real success. It was an easy decision to push ahead with construction when we have a well-designed building in a great location and the undersupply of the Brighton office market is seeing rents and values rise.

Emma Goodford, Head of National Offices at Knight Frank LLP, said:

There’s been a dearth of good quality office stock in Brighton at a time when we’ve seen increased demand through an expanding workforce and a burgeoning residential offer. The Brinell Building is the first new build since Brexit and McAleer & Rushe has a track record for developing in Brighton after completing CityView in 2016 (32,000 sq ft), which leased to tenants on completion including Rocketmill, Ideal Networks and Unity Technologies.

The Brinell Building is in a prime location next to the station and its design will attract media and tech companies as well as appealing to financial and business occupiers. I forecast it to achieve record-breaking rents for the city and lease up ahead of completion in Spring 2019.

Brighton has a growing new digital, media and technology sector which has developed beside established corporate companies that include American Express, BUPA, Kimberly-Clark, EDF, Mott MacDonald and Lloyds Bank.

The Brinell Building sits in the heart of Brighton’s office district and is located only a three-minute walk from Brighton station which provides frequent trains to Gatwick Airport and Central London. Brighton’s buzzing independent coffee shops, retailers, restaurants and bars can be found just 50 metres away.


McAleer & Rushe announce new Maldron hotel deal in Glasgow

McAleer & Rushe has just announced that they have signed an Agreement for Lease with the Dalata Hotel Group, Ireland’s largest hotel chain, to deliver a new four-star Maldron Hotel in Glasgow City Centre.

The proposed c. 250 bed hotel, with bar, restaurant and business conferencing facilities will be centrally located on Renfrew St, close to the main shopping district on Sauchiehall Street and is adjacent to the Theatre Royal and a short distance from Buchanan Bus Station.

The c. £30 million project by McAleer & Rushe, which is subject to planning approval from Glasgow City Council, is projected to be delivered by mid-2020, representing Dalata’s first Maldron hotel in Scotland. Once construction is completed, Dalata will operate the hotel under a 35-year lease, subject to five-year rent reviews linked to the Retail Price Index.

This latest McAleer & Rushe project represents a long-standing partnership with the Dalata Hotel Group in delivering hotels across the UK and Ireland and follows the recent announcement of it’s sale of the planned Maldron Hotel in Newcastle to a major institutional fund, the UK Commercial Property Trust Limited (UKCPT).

According to Stephen Surphlis, Property Director, McAleer & Rushe, the hotel’s strategic positioning on Renfrew St will support Glasgow’s growing economy, positively contributing towards the surrounding urban environment and create construction as well as indirect employment. Commenting he said;

The announcement of our latest lease deal with Dalata represents the growing confidence in key regional UK cities for hotel operators, particularly in Scotland. This major new four-star Maldron Hotel will be an exciting addition to this dynamic consumer and business hub.

Working with the Dalata Group we are developing a number of hotel projects across the UK and Ireland and we look forward to partnering with them once again on this new project.

Dermot Crowley, Deputy CEO – Business Development & Finance Dalata Hotel Group said;

We are delighted to have entered into an agreement to lease a newly constructed Maldron Hotel in Glasgow. We have a very strong relationship with McAleer & Rushe who are currently building our new hotels in Belfast, Newcastle and Charlemont, Dublin. Today’s announcement brings the number of UK hotels in our development pipeline to 5 with a total of circa 1,350 rooms.


McAleer & Rushe sell Newcastle hotel investment for £32.7 million

McAleer & Rushe has announced that it has sold a planned new four-star Maldron Hotel in Newcastle City Centre to UK Commercial Property Trust Limited (UKCPT) which is advised by Standard Life Investments for £32.7 million on a forward funding basis reflecting a market investment yield of 4.99% on completion.

The six-storey hotel due to be completed in March 2019 by McAleer & Rushe is let on a 35-year FRI lease to Dalata, Ireland largest hotel operator and forms part of McAleer & Rushe’s wider £75 million mixed use regeneration scheme in the City. Alongside the hotel, the project also includes a 575 student bed accommodation which will be operated by the Unite Group and ancillary retail units.

The 265 bed hotel will be Dalatas first Maldron brand operation to be opened in England which includes an extensive bar, restaurant and business meeting facilities, which will provide a major boost to the Newcastle economy.

The development is strategically located on Newgate Street at the heart of Newcastle City Centre on the site of the former Newgate Shopping Centre and is close to St James’ Park, home to Newcastle United FC and the Eldon Square Centre.

According to Stephen Surphlis, Property Director of McAleer & Rushe, the deal represents a significant transaction within the UK hotel investment sector and highlights the confidence and strong interest in the regional cities, particularly for hotel investments with long term income streams let to major brands such as Dalata. Commenting he said

The new Maldron hotel and the complete mixed-use scheme is a significant project and will support Newcastle’s continued economic development by attracting both business and leisure visitors to the heart of the City. We are looking forward to working with Standard Life Investments and Dalata, for whom we are delivering numerous hotel projects in the UK & Ireland.

Will Fulton, Fund Manager at Standard Life Investments, added,

We look forward to working with McAleer & Rushe on the delivery of this new scheme in Newcastle. Dalata and its flagship Maldron brand are an exciting, well managed, high quality, competitive hotelier which we believe will compete well in the Newcastle market, a home to leading universities, a thriving business community and leisure scene.

Joint Agents CBRE & Steerforth Partners advised McAleer & Rushe, with Knight Frank advising Standard Life Investments.


Newcastle celebrates 800 years of Mayoralty and looks to the future with time capsule burial at major redevelopment

Newcastle and the North East marked the significant milestone of 800 years of Mayoralty by burying a time capsule at the Newgate Centre, the site of a major £100m regeneration project in the city.

The capsule buried by Newcastle Lord Mayor Hazel Stephenson and Councillor Ged Bell will not be opened before 2097 and includes a broad range of objects and artefacts that celebrate different aspects of life in the North East today.

The Council chose the site of the development project in the heart of the city to position the capsule as it represents an important investment for the future of the region. The redevelopment being undertaken by McAleer & Rushe will support 780 jobs during the construction phase with up to 153 new full time jobs on the site following completion.

At the event attended by local community and businesses the Lord Mayor highlighted the significance of the milestone and investment in the city. Councillor Hazel Stephenson, said:

“Newcastle and the North East has a rich and cherished history and we wanted to mark this major milestone by linking our past with the future and the planting of the time capsule at this important site is a fitting tribute to life in our city today. It represents the very positive and dynamic opportunity for the city and the wider region in the years ahead.”

The redevelopment will see the existing 1960’s shopping centre being replaced by a 265-bedroom four star Maldron hotel, 20,000 sq ft of commercial space for retail, leisure or professional services use and 575 units of purpose built student accommodation operated by the UK’s leading provider of student housing, Unite Students.


Eamonn Laverty, Chief Executive of McAleer & Rushe, commented:

“We are privileged to have been involved in the marking of the 800th anniversary of Mayoralty in Newcastle, attending the event alongside the local suppliers and consultants who are working closely with us and Newcastle City Council. This marks an important moment in the region’s history and through the development of the Newgate site we are looking forward to helping develop economic growth and sowing the seeds of future prosperity.”

Objects in the capsule include a Newcastle United scarf, a Royal Mint coin set, and one of the last round pounds in circulation providing future generations with an insight into life in the city in 2017.

Attendees at the event included Brunswick Methodist Church and representatives from project partners Maldron and Unite Students.


Mcaleer & Rushe Sells Brighton Hotel For £28.2m To The Charities Property Fund

JI Brighton
McAleer & Rushe has sold the 234-bedroom Jurys Inn hotel in Brighton to the Charities Property Fund, managed by Savills Investment Management for £28.2m reflecting a net initial yield of 5.25%.

The hotel in the heart of the New England Quarter of the city, centrally located adjacent to the train station, was completed by McAleer & Rushe in 2008.

In February of this year McAleer & Rushe began speculative development of its City View, office building next to the hotel.

The six-storey Urban Innovations-designed office is scheduled for completion in January 2016. It is the first speculatively built large scale office in Central Brighton since 2005.

Knight Frank and Stiles Harold Williams are marketing City View.

The Charities Property Fund, which passed the £1bn milestone in assets under management in September, also acquired the Jurys Inn hotel in Derby from McAleer & Rushe earlier this year.
CityView-Brighton-VMcAleer & Rushe Property Director Stephen Surphlis said:

“We think there is a very strong investment story for Brighton and are confident of securing headline rents for City View.

“The hotel has performed very well but we decided to take advantage of the strong demand for regional hotel assets and the uplift in covenant strength following Lone Star’s acquisition of Jury’s Inn in January”.

McAleer & Rushe was advised by Steerforth Partners. The Charities Property Fund was advised by Cooper Rose and Gerald Eve.


McAleer & Rushe Gets Consent For New City Centre Hotel In Belfast

Blackstaff-Square-CGI-IMcAleer & Rushe has received planning consent for a 206-bedroom hotel on the site of the former Belfast Metropolitan College adjacent to Blackstaff Square.

The Cookstown-based developer, acquired the site just over a year ago and intends to develop the site with a mixed-use hotel and student accommodation scheme.

Belfast City Council approved plans designed by Belfast-based Consarc Design Group for the 14-storey development which will also comprise restaurants, bars and meeting and conference space.

The site sits within an area known as ‘The Linen Quarter’ which Belfast City Council and other Government agencies have targeted for major regeneration with plans including a major upgrade of the urban streetscape.

The hotel will have an entrance facing on to Blackstaff Square.

In a design and access statement submitted as part of the proposal, McAleer and Rushe said the hotel would make a “positive contribution” to the city by regenerating the site of an unoccupied building in the city centre.

It also said it would “create a strong development on a prominent corner” in the city centre and “improve the activity and dynamism in a developing area”.

Blackstaff-Square-CGI-IIMcAleer & Rushe Property Director Stephen Surphlis said:

“This is great news for Belfast, as this is a centrally located hotel scheme, which is designed to complement Belfast’s forward looking aspirations and assist in meeting the undersupply in hotel provision. The Belfast leisure market has recovered strongly following the downturn, with figures confirming strong occupancy levels and increasing room rates. This new hotel will help to satisfy increasing demand going forward as Belfast rapidly increases in popularity as a leisure and business destination. We have received strong interest from established hotel operators and have already commenced demolition of the existing college building. We look forward to beginning construction early in 2016”.

McAleer & Rushe also has plans for an adjacent 476 –room student housing scheme on McClintock Street and 804-room student housing scheme on College Avenue. The hotel and two student housing schemes will create in excess of 300 jobs during the building phase giving a much need boost to the Northern Irish construction sector.


Knightsbridge And McAleer & Rushe Sign £100m Student Housing Contract

Knightsbridge01

Knightsbridge Student Housing and McAleer & Rushe have entered into an agreement to deliver 1600 student beds, over two sites in Bournemouth and Portsmouth with an end value of over £100m.

The contract to design and build student accommodation, comprising of 1000 beds in Portsmouth and 600 beds in Bournemouth, is subject to planning and follows Knightsbridge Student Housing acquiring both sites from the Northern Irish group.

Knightsbridge Student Housing is led by Bob Crompton, who was the former CEO of student provider Victoria Hall. He has stated Knightsbridge’s intention is to rapidly build up an £1bn portfolio. It has already some 6,500 beds currently operational and almost 10,000 beds at varying stages of planning, design and construction.

The first phase of the Portsmouth scheme, on Stanhope Road, will see the former landmark office, Zurich House, converted to provide 400 student beds, with a purpose built second block housing a further 600 students.

Knightsbridge02To achieve a holistic redevelopment of the entire site, plans for approximately two thirds of the remaining site will explore a mix of development options including hotel, residential and commercial. It is also proposed to create an attractive landscaped boulevard to provide access to the adjacent verdant Victoria Park.

Student housing will make up around half of the site in Bournemouth on St Paul’s Lane, St Paul’s Road, with the remainder of the site being allocated to offices, and possibly a new hotel.

Planning submissions are targeted for early 2015 which would see construction work begin in summer 2015 with delivery of the first phase in Q3 2016 and the second phase in Q3 2017.

Simon Pollitt Knightsbridge Development and Acquisitions Director said:

“We are delighted to sign this agreement with McAleer & Rushe who we have got to know very well, and rate highly. These projects will create high quality student housing for Bournemouth and Portsmouth which are currently undersupplied markets, and will lend added momentum to our development pipeline.”

McAleer & Rushe Project Development Director Graham Mitchell said:

“McAleer and Rushe has ambitious targets for student housing construction, which is a very logical extension for us. We are delighted to be working with Knightsbridge and look forward to working together on other projects. This deal unlocks the regeneration of important sites in Bournemouth and Portsmouth, and is an important vote of confidence in the economic recovery of both cities.”

The deal is a significant milestone for McAleer & Rushe which has established a strong foothold in the student market. It is set to deliver 7,500 student beds over the next five years and is also currently under contract to deliver two schemes for UNITE plc – a 750-bed scheme for in Stratford, London and a 700-bed scheme in the North East of England.

For further information please contact: Robert Gibson at Grenadier on 0207 834 6263 / 07748  182 234


McAleer & Rushe JV Sells Invest NI’s Headquarters

Bedford-Square-Belfast-Phase-1-Main

The Northern Irish Government has acquired Invest Northern Ireland’s Belfast city centre headquarters through a sale of the shares of the holding company from Bedford Street Developments Ltd for close to the guide price of £40m.

Bedford Street Developments is a joint venture between McAleer & Rushe and Dunloe Ewart.

The acquisition includes Invest Northern Ireland’s award winning headquarters and the adjacent Linum Chambers premises. Constructed in 2005 under a Public Private Partnership contract by McAleer & Rushe the assets consist of over 130,000 sq ft of Grade A office accommodation and secure basement car parking for 95 spaces. To date it is the only office PFI contract to have been undertaken in Northern Ireland.

McAleer & Rushe property director Stephen Surphlis said:

“McAleer & Rushe is particularly proud of its role in delivering such a flagship development. The price achieved reflected not only the strong covenant and income stream but the acknowledged high specification and finish of the building which was reflected in the intense interest from a number of UK funds. This transaction is an exemplar of private and public bodies working well together. We enjoyed a very positive and supportive relationship with NAMA who were our banking partner on this particular transaction, and Invest Northern Ireland with whom we have developed a strong working relationship over the course of the project.”

Osborne King Commercial Property Advisors director Paul Henry who advised Bedford Street Developments said:

“The original PFI structure protected Invest NI from any potential development risk and ensured that it got a bespoke headquarters building delivered to its time-frame and budget by an expert developer. But once delivered the Government has been persuaded of the advantages of owning the building.”

The McAleer & Rushe joint venture has retained the adjoining site which has planning permission for a 225,000 sq ft office development.

ASM Chartered Accountants and law firm Pinsent Masons also advised Bedford Street Developments.


McAleer & Rushe dives into the annual Jones Lang LaSalle Property Triathlon

JLL-Triathlon

Angus Monteith once again represented McAleer & Rushe’s sporting prowess by competing at the Jones Lang LaSalle Property Triathlon held at Dorney Lake Eton, Berkshire.

Angus completed the sprint distance triathlon comprising 750m swim, 21.2km cycle and a 5km run in a very creditable time of 1:21.

Co-sponsored by Property Week and coordinated by Human Race, the Jones Lang LaSalle Property Triathlon is now firmly established as one of the UK’s largest triathlons. The event has raised over £1 million to date for charity.

Angus Monteith said:

“I’m looking forward to next year. This is a fantastic sporting occasion, the industry camaraderie is brilliant and it’s a terrific achievement that so much has been raised for charity.”