Developer and contractor McAleer & Rushe has exchanged contracts to sell the Brinell Building in Brighton. The company is selling the speculative office development for £39 million, reflecting a yield of 4.75%, to Orchard Street Investment Management, who has purchased it on behalf of St James’s Place Property Unit Trust.
The Brinell Building is due to complete in Q2 2019 and will comprise 65,253 sq ft of Grade A office accommodation across seven floors. The development is fully pre-let to three tenants, Unity Technologies, Diversified and Dehns, which will all relocate from within Brighton city centre. The Brinell Building achieved record rents for the city with each pre-let transaction, topping out at £32.00 per sq ft, with all of the leases agreed for a minimum of 10 years.
Angus Monteith, Property Development Director at McAleer & Rushe, said:
We are delighted to have exchanged contracts on the Brinell Building, which has proved extremely popular to both occupiers and investors. The fact that it has been entirely pre-let eight months before completion illustrates not only the quality of the property itself but also of the wider Brighton office market, which continues to go from strength to strength.
Tom Chadwick, Partner at Orchard Street, added:
The Brinell Building is a prime addition to the portfolio and upon completion of the development the property will present a fantastic Grade-A office. We are very confident in the prospects for the Brighton office market given the extremely favourably supply demand conditions as illustrated by the 100% pre-let nature of the building.
Heads of terms signed to become anchor tenant in new Bedford Square Development, which includes the historic Ewart Warehouse New offices will be able to accommodate more than 1,000 Deloitte people Deloitte expected to move in to offices in 2021
Deloitte announced today that it has selected Bedford Square as the location of its new head office in Northern Ireland.
The new Belfast office will accommodate all of Deloitte’s core business areas, including audit, tax and consulting and will also see a new state-of-the-art Deloitte Digital and Greenhouse space created in the Ewart building.
The vacant four-storey sandstone warehouse building was designed by James Hamilton for the Bedford Street Weaving Company and completed in 1870. The new development aims to regenerate the old warehouse building, respecting its heritage and the character of the exterior, while completely redesigning the interior.
Jackie Henry, senior partner at Deloitte in Belfast, said:
After a long selection process we are delighted to be able to announce the choice of Bedford Square as our new home in Belfast.
It is a symbol of Deloitte’s commitment to this city that we have chosen a development which will breathe life back into one of Belfast’s beautiful but neglected heritage buildings, contributing to the regeneration of the city centre while at the same time delivering an exciting and flexible modern work environment for our increasingly diverse and connected workforce.
She added: Deloitte’s operations have been growing rapidly over the past few years, driven by increased requirements for our services across traditional areas such as tax, audit and consulting, but also our wider expertise in exciting new areas such as digital analytics, cloud services, cyber security and robotics.
This new office will bring Deloitte’s expertise in Belfast together under one roof, which will foster even greater collaboration between teams and enable us to create a campus environment that is ideally suited to the agile and augmented jobs of the future.
This significant investment reflects our confidence in Belfast and its high-quality talent base. Based on our current growth projections we expect to have 1,000 staff in Belfast by 2022 and given that growth trajectory we have also made sure we have the option to increase the space to accommodate up to 1,250.
Stephen Surphlis, Property Director in McAleer & Rushe said:
Securing Deloitte’s commitment is a significant milestone in the delivery of this strategic development which will bring economic activity to the heart of the City and surrounding local businesses.
We have already commenced works and upon completion the building will provide much needed grade A office accommodation for international and indigenous companies within Belfast’s prime office district.
The development will include comprehensive refurbishment and restoration of the iconic Ewart Building, returning it to its original splendour and giving Deloitte a high-quality office environment in this unique 150-year-old heritage building.
Deloitte supports our vision for the project and the contribution it will make to the Linen Quarter and the wider city and we are looking forward to working closely with them to develop their new headquarters.
The project will also aim to obtain the BREEAM excellent rating for sustainability.
Deloitte was advised on the transaction by Cushman & Wakefield, Belfast.
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.”
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.
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.
Development Milestone Reached as Offices Housing 2,900 Civil Service Jobs in the Heart of the Old Town Nears Completion.
The new UK Government hub planned for New Waverley in the heart of Edinburgh’s Old Town has reached a significant milestone today (Wednesday July 4th) with the official ‘Topping Out’ of the office scheme set to be home to some 2,900 government workers.
The seven-level development, which comprises two interlinked office buildings providing almost 200,000 sq. ft. of ultra-modern Grade A office space, has now reached its highest point – an occasion marked by the UK Government and developers Artisan Real Estate Investors.
The UK Government announced last year that it will relocate 2,900 civil service jobs to the new regional hub by 2020 under the terms of a 25-year lease. This includes HMRC, which will operate one of its 13 regional centres from New Waverley. This will be the UK Government’s cross-departmental flagship Hub in Scotland, which will function as the Scottish base of several government bodies, including the Office of the Secretary of State for Scotland, the Office of the Advocate General, the Competition and Markets Authority, the Office for Statistics Regulation, the Government Actuary’s Department and HM Treasury. Staff from the Health and Safety Executive and the Information Commissioner’s Office will also be based here.
The new Government offices will offer the highest levels of sustainability and operational efficiency, and employees will benefit from a contemporary design with added staff amenities including a landscaped roof area providing sweeping views across the Waverley Valley,
This new flagship building is part of our radical upgrade of the Civil Service, and will support a diverse and creative workforce as they make a real difference to the lives of people living in Scotland. The hub will provide high quality, skilled jobs right in the heart of the city centre as well as contributing significantly to the local economy. Alongside significant savings for the taxpayer, the roll-out of Government Hubs will provide modern working environments across the whole of the UK enabling us to provide the best public services we can.
Locating HMRC to a new regional centre in Edinburgh in the New Waverley development is another step in HMRCs transformation into a modern, digitally advanced tax authority. This unique city centre location will bring our teams together to promote closer working relationships as well as increasing our effectiveness in collecting taxes.
The completion of the office hub will complete the cornerstone of New Waverley’s current development phase, which will see the high quality office space blend with restaurants, cafes and shops around the public plaza. Artisan’s £200 million, 7.5 acre mixed-use scheme seamlessly links Waverley Station with the city’s iconic Royal Mile, forming part of the Old Town’s UNESCO World Heritage site.
Welcoming the UK Government to New Waverley, Clive Wilding, Artisan’s project director, said:
Bringing the UK Government hub right into the historic heart of Edinburgh is a ringing endorsement for what we are building here – not just for New Waverley, but for the city of Edinburgh and for Scotland. It sends out an important message that our city centres have the interest, value and capacity to attract investment from the very best employers, setting an important precedent for Edinburgh and the rest of Scotland
For New Waverley, it’s another significant step of our journey to restore life, vitality and energy to this very special part of Edinburgh’s historic city centre, and will be a natural fit for the exciting and vibrant mixed-use community we are creating here.
People coming to work here will enjoy an unmatched working, leisure and living environment. On their doorstep will be one of Scotland’s major transport hubs as well as an eclectic mix of shops, hotels, cafes, bars, restaurants and homes in a location that reflects both the best of the city’s heritage and its future.
They will find that New Waverley is a genuinely unique destination in which to work, live and enjoy time out. This is a transformational development of a UNESCO Heritage site, in one of the world’s most iconic yet delicate locations. It’s pioneering the future, whilst preserving the past, representing a blueprint for sensitive yet positive city-centre regeneration.
Reaching the Topping Out stage of the office hub is also a significant milestone for New Waverley contractors, McAleer & Rushe, who are on target to complete the commercial phase by summer 2019.
Construction of the two interlinked office buildings totalling 230,000 sq. ft. brought its own particular challenges, including overcoming a 40 ft. gradient which runs from the Royal Mile down into the Waverley Valley. This means that both buildings are built into the side of the hill, with the ground floor access into the public plaza on one side becoming the building’s second level further down the slope.
The buildings have a significantly large concrete frame composed of 15,000 cubic metres of concrete, all of which was non pre-fabricated and poured on site. The facades of the completed buildings will be clad in the highest quality Stanton Moor buff sandstone to reflect the unique heritage and environment of their immediate surroundings.
Shane McCullagh, contracts director from McAleer & Rushe added:
This strategically important landmark building provides a spectacular focal point and destination for the wider New Waverley development. It’s a challenging development to complete, especially considering its unique location at the heart of Edinburgh’s UNESCO World Heritage site, but one that is being delivered on time, on budget and with the highest safety standards.
Now that we have ‘Topped Out’ the office buildings, the true mass, vision and scope of the entire New Waverley masterplan is now apparent, and it’s a fitting testament to our team on site and the whole development team that so much has been achieved in a relatively short timescale. We are appreciative for this opportunity in the ongoing partnership with Artisan and very much look forward to handing over the completed offices to the UK Government in 2019.
New Waverley’s office development was sold in October 2017 by Artisan to Legal & General, who secured the development on behalf of Legal & General Retirement which invests in high-quality long-term UK assets that generate income streams that match its commitments to pensioners.
The development has won three place-making awards in the last year – including best regeneration project for both the Scottish Property Awards and the Royal Institute of Chartered Surveyors (RICS). The scheme’s architects are Allan Murray Architects.
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.
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.
The community arts engagement project is enabling Brighton’s children to develop a better understanding of their citizenship and local community through art and creativity. The primary school pupils have worked with Art4Space to develop the content of the artwork in the form of drawings, doodles, words and quotes, which will be displayed as an outside public gallery during the construction of The Brinell Building.
Commenting on the arts engagement project, Jonathan O’Neill from McAleer & Rushe said,
“I hope this initiative will encourage local young people to take an interest in the development of this building and during the next 12 months our hoarding will act as an outdoor exhibition space where local children and their families can proudly see their art on display. It was great to show the students around the site and provide them with a greater insight into the work that we do. Construction is a dynamic and exciting industry to work in and we are delighted to have been able to showcase this today.”
The Brinell Building, will comprise 7-storeys of Grade A office accommodation and views across Brighton and to the seafront from multiple roof terraces. The development is targeting a BREEAM ‘Excellent’ rating and includes amenities such as secure underground car and bicycle parking, electric car charging points, private changing booths and showers, a drying room and a double height reception.
Julie Norburn, director of Art4Space has been delighted with the artwork produced;
“I admire what the children have created around the theme of citizenship and the paintings will create a wonderful outside gallery for all to enjoy for many months during the construction of The Brinell Building. What a way to brighten up the streets!”
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.
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.
Margaret’s achievement is all the more remarkable because it was her first role as a construction manager, working on the £22m nine storey office block at 9 Adelaide Street in Belfast City Centre which McAleer & Rushe both developed and constructed.
Working with the client Belfast City Council, Margaret delivered considerable cost savings of over £1m by reducing the height of the building and adapting the existing raft foundations for the new superstructure, as well as completing the 80-week project two months early with a clean health and safety record and an Excellent BREEAM rating.
McAleer & Rushe dominated this year’s CMYA picking up two further medals with Michael Yohanis and Paddy Connolly winning Gold and Silver respectively within the Leisure and Retail category. Michael won the Gold medal for his work on the construction of the £20m Adagio Royal Mile hotel in Edinburgh with Paddy winning the silver medal for his work on the £25m Holiday Inn in Manchester.
“Margaret is a true inspiration for anyone thinking of entering this exciting and challenging industry. As well as remaining in control of the immense technical and logistical challenges of her day job, her inclusive style has encouraged young people to get involved in construction. Our sector badly needs a more diverse workforce and Margaret shines out as a young leader who is making a genuine difference. We will watch her career with great interest.”
Commenting on the team’s achievements, Martin Magee, Managing Director, McAleer & Rushe said:
“The success of Margaret, Michael and Paddy at this year’s CMYA is truly outstanding. These Awards demonstrate the diversity, inclusivity, commitment and expertise of our employees and our teams and we are immensely proud of their achievements. Investing in our people, developing their experience and nurturing them in their areas of interest and expertise is at the heart of our success and central to our back to back CMYA wins.”
“9 Adelaide Street was a challenging scheme in terms of programme, site logistics and budget. Margaret was intuitive to Belfast City Council’s needs, always focused on delivering the scheme on time, whilst never losing sight of the importance of safety or quality. Her ability to communicate all issues and foster a real sense of teamwork set a benchmark for the project.”
Martin Magee concluded:
“For McAleer & Rushe it is very rewarding that over the last number of years our project work across Office, Hotel, Student Accommodation and Residential sectors of the construction industry has received such wide recognition. Indeed, it is no coincidence that our Award winners at the 2017 CMYA have been recognised for their work on projects in Belfast, Edinburgh and Manchester. After 50 years in business this shows our growing reach and the talented skill base we have to service it.”
As part of Edinburgh Living Landscape, Leonie Alexander Urban Biodiversity Project Officer at the Royal Botanic Garden Edinburgh (RBGE), has worked with the company to develop a space to encourage insect life and help supportthe butterfly and bee population in the local area. Contributing to ‘A Square Metre for Butterflies’ the area is a place where companies are encouraged to devote at least one square meter to butterfly caterpillar food plants and nectar plants for adult butterflies.
Kevin Byrne, Health & Safety Officer at McAleer & Rushe commented:
“We are delighted to support this important initiative working in partnership with the RBGE to enhance biodiversity in central Edinburgh and would like to thank all the pupils from Royal Mile Primary School for their help. As a company, we remain committed to supporting environmental initiatives and look forward to adopting similar measures at future developments.”
Leonie Alexander added: “This is a brilliant initiative by McAleer & Rushe to support local wildlife. This small green space acts as a stepping stone for insects to top up on supplies and the bee hotel offers high class accommodation for bumblebees, solitary bees and a whole range of other insects. The pupils at Royal Mile Primary School are super aware of pollinators and this is a great opportunity to contribute something practical.”
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.
Phase two of the city centre development consists of a new 17-storey office building providing 182,598 sq ft of grade A office accommodation, as well as the refurbishment of the listed William Ewart building to create a further 34,942 sq ft of space.
The first phase of the project was completed in 2006 and is home to the headquarters of Invest Northern Ireland, with the latest buildings located on adjacent sites and arranged around a new landscaped public piazza to provide high-quality public realm in the heart of Belfast city centre.
Stephen Surphlis, property director at McAleer & Rushe, said:
This planning approval is a welcome boost to the Belfast office market, with the second phase of Bedford Square bringing a landmark building back into active use after many years of vacancy and helping to alleviate the shortage of grade A space in the city.
The first phase of Bedford Square has been a great success and we now have the opportunity to complete the vision with the creation of much-needed business space and new public realm which, together with our Maldron Hotel and QUB student accommodation developments on the adjoining Brunswick Street site, will make a huge contribution to the regeneration of Belfast’s Linen Quarter and this part of the city.
McAleer & Rushe is in discussions with potential office occupiers for phase two of Bedford Square, with work expected to commence on site in the coming months.
“Belfast City Council is committed to working with partners and stakeholders across the city to deliver Grade A office space in the city centre to attract new investors and businesses. Our new headquarters are testament to that commitment.
“We are delighted that McAleer & Rushe is delivering this project both within budget and ahead of time and commend the firm on their continued commitment to Belfast. I look forward to the completion of the project, which will ensure our staff are located in a cluster with our other administrative buildings in the city centre.”
Stephen Surphlis property director of McAleer & Rushe added:
“We are very pleased to have reached topping out on this significant project. An achievement made possible through the hard work and close co-operation of Belfast City Council along with McAleer & Rushe’s Design and Build team.
“We look forward to continuing this excellent working relationship and the successful completion of this 100,000 sq ft (NIA) Grade A office development, on programme ready for the council’s occupation by the end of this year.”