RICS Modus, Global edition — February 2012

rics.org/modus

SHOP TALK Charting high street decline in two UK towns p14WEALTH EFFECT Asia’s luxury retail development boom p24 TOP RATING RICS’ new Ska Retail assessment method p38

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02.12 // MODUS 03

Regulars04_FEEDBACKYour views on Modus and the profession, and the latest poll

06_INTELLIGENCEGlobal news, plus opinions, reviews and reactions

29_LAW ADVICEPursuing outstanding payment in the EU and worldwide

37_BUSINESS ADVICEProtecting unoccupied premises against theft and damage

Features14_OPEN FOR BUSINESS?We visit the towns of Brighton and Blackpool to explore the decline in the traditional town centre 22_10 MINUTES WITH…Regeneration specialist Parm Dosanjh FRICS of AspinallVerdi

24_EASTERN PROMISEHow the Asian love of luxury goods is fuelling a development boom

30_10 GADGETSThe latest must-have products for the tech-savvy surveyor

32_GREAT DEALS!Four supermarkets share their ongoing construction plans

38_FIT FOR PURPOSEHow Ska Retail is ensuring Lush’s new stores are its greenest ever

In formation43_RICS NEWSNews and updates from RICS worldwide, plus a message from Honorary Secretary Rob Mahoney

51_EVENTSExhibition, training and conference dates for your diary

55_RECRUITMENTThe latest job opportunities from across the industry

58_THE MEASUREShopping centre stats

Contents NO 1402.12 //

THE RETAIL ISSUEShopping is never far from the headlines, particularly with the recent government-

commissioned Portas Review into the future of the UK high street. This month, we

respond to the report (page 20), and investigate the signs of success and failure in

the traditional seaside towns of Blackpool and Brighton (page 14). This issue is

not just a tale of two towns, but one of differing fortunes – some sectors, such as

luxury retail development in Asia (page 24) and supermarket construction (page

32) are booming. Elsewhere this month, we meet a member who specialises in town

centre regeneration (page 22), round up 10 of the latest must-have gadget buys

for surveyors (page 30), and visit Lush’s new store in Bristol (page 38), the fi rst

to be accredited under RICS’ new Ska Retail environmental assessment method.VICTORIA BROOKES EDITOR

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MODUS_Feb_p03-4_Content & Letters_v5.F1.indd 3 30/01/2012 17:32

FOR SUNDAYEditor Victoria Brookes // Art Director Christie Ferdinando

// Contributing Editor Brendon Hooper // Sub Editor

Samantha Whitaker // Creative Director Matt Beaven //

Account Director Stephanie Hill // Commercial Director

Karen Jenner // Commercial Manager Lucie Inns // Senior

Sales Executive Faith Ellis // Recruitment Sales Managers

Grace Healy and Dorlisa Purkiss // Managing Director Toby

Smeeton // Repro F1 Colour // Printers Woodford Litho

and Ancient House Press // Cover Stuart Daly

Published by Sunday, 207 Union Street, London SE1 0LN

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FOR RICSEditorial board Ian Fussey and Jaclyn Dunstan

RICS, Parliament Square, London SW1P 3AD

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Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

92,028 average net circulation 1st July 2010 – 20th June 2011

THE MODUS POLL :WHAT DO YOU THINK IS MOST RESPONSIBLE FOR HIGH STREET DECLINE?Total votes: 1054

Visit rics.org/modus now to vote in our next poll: ‘What’s your experience of BIM?

Due to the volume of correspondence we receive, we regret that we are unable to print all letters or respond to every one individually.

appears crucial to this argument to consider a full life-cycle assessment (LCA), including the energy embodiment versus carbon emissions of the construction of nuclear plants, their decommissioning, and the costs and challenges faced with disposal of waste materials. Mr Lodge also suggests that nuclear plants are ‘zero carbon’, whatever that means, considering that all mankind’s activities emit carbon to the atmosphere. In making a comparison of nuclear with other forms of energy, there is always parked in the background the subjective notion of nuclear risk, which is not dealt with in LCAs.Dr Kelvin Walls MRICS, Auckland

AN ACCURATE RESPONSEMr Hawkyard asked [December/January] what had happened to the SI system of measurement. For a short period I had subject responsibility in the then Department of the Environment for metrication, so perhaps I should add a few words. As far as I can see, the SI system is alive and well, and is in

general use for construction, engineering and science. When this country ‘metricated’, it was well known that the general population of Continental Europe used, for example, centimetres for linear measurement, but the leaders here were committed to getting things ‘right’, so the SI millimetre approach was the one adopted for construction. When I took over responsibility, I briefl y considered the possibility of reversion, but it was clear that the UK was too far down the SI road for it to be a serious option. I am sure now that that was the right decision – the development of building regulations, particularly those for energy conservation, is forcing much greater accuracy on the construction industry.

For those who take up engineering as a career, the mental readjustment is the least of what one has to learn. My curiosity has been more aroused by how and where the new generation learn about feet and inches. I am told maths masters even today devote two or three extra-curricular lessons to the subject. Ian Macpherson FRICS, Guildford

COMMUNITY ACTIONAs regular readers of Modus, we’re impressed by your coverage of sustainability issues, and were particularly pleased to see your feature on Wildpoldsried [December/January]. Over more than 30 years of lending on properties and projects that respect the environment, we’ve seen that true sustainability needs to be embedded at a community level – not bolted on as an afterthought. As Wildpoldsried demonstrates, community involvement in sustainability initiatives is essential for ensuring places and buildings work both for the people that live in them and their immediate and wider environment. When planned in a participative and integrated way, widespread use of renewables and low-energy design makes sense at a social, economic and environmental level.

In the UK, we need to apply this thinking not just to new builds, but to the urgent challenge to retrofit our existing housing stock. While we hope the Green Deal will be a success, we believe take-up will only be maximised through an approach that sees individuals as part of communities as well as consumers, and that takes into account the social aspects of our choices about our homes. Let’s hope places like Wildpoldsried become the norm, rather than the exception. Jon Lee, Ecology Building Society

RISK FACTORI was interested to read the article by Tony Lodge in the recent Energy issue. Mr Lodge points out that, although nuclear plants are initially expensive to build, they have a longer lifespan than conventional power stations. It

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Out-of-town retail parks 30.7%

Internet

shopping

30.6%High rents/

business

rates

18%

Planning restrictions

2.2%

Traffi c and/or parking problems 18.4%

22 March 2012, 5.30pm-7.30pm, 6th Floor, 4 St Pauls Square, Liverpool, L3 9SJ

5.30pm Arrive, drinks & canapes6.00pm Introduction: Mark Williams,

LJMU Alumni Relations Manager6.05pm BREEM Excellence: Darran Lawless,

Muse Developments6.15pm World of Work Programme: Terry Dray,

LJMU Director of Graduate Advancement & Employer Engagement

6.25pm Guest Speakers: Brian Furlong, Jill Baker & Michelle Helsby, Horizon

7.00pm Networking7.30pm Close

Running order:

We will be delighted if LJMU alumni from the School of Built Environment join the University for a networking evening. The event is an opportunity to re-connect with the university and fellow alumni. It will highlight how alumni and the organisations they work for can engage with LJMU’s industry leading World of Work Programme. Horizon, the guest speaker, will present their proposals and bid process for the Royal Liverpool University Hospital.

For more information and details about how to register please visit:www.ljmu.ac.uk/alumni

Horizon is a consortium which is one of the final two bidders for the new Royal Liverpool University Hospital, one of the largest construction projects in the North West. The bidding team is an international consortium comprising - Interserve, John Laing and FCC Construccion. The presentation will look at the proposals for the new hospital, and cover the bid process involved in such a large and com-plex scheme. The presentation will be delivered by: Brian Furlong - Project Director, Jill Baker - Bid Manager, Michelle Helsby - Bid Consultant.

PROPOSALS FOR THE NEW ROYAL LIVERPOOL UNIVERSITY HOSPITALA networking event for LJMU alumni in the Construction and Property industry

MODUS_Feb_p03-4_Content & Letters_v5.indd 4 19/01/2012 16:41

22 March 2012, 5.30pm-7.30pm, 6th Floor, 4 St Pauls Square, Liverpool, L3 9SJ

5.30pm Arrive, drinks & canapes6.00pm Introduction: Mark Williams,

LJMU Alumni Relations Manager6.05pm BREEAM Excellence: Darran Lawless,

Muse Developments6.15pm World of Work Programme: Terry Dray,

LJMU Director of Graduate Advancement & Employer Engagement

6.25pm Guest Speakers: Brian Furlong, Jill Baker & Michelle Helsby, Horizon

7.00pm Networking7.30pm Close

Running order:

We will be delighted if LJMU alumni from the School of Built Environment join the University for a networking evening. The event is an opportunity to re-connect with the university and fellow alumni. It will highlight how alumni and the organisations they work for can engage with LJMU’s industry leading World of Work Programme. Horizon, the guest speaker, will present their proposals and bid process for the Royal Liverpool University Hospital.

For more information and details about how to register please visit:www.ljmu.ac.uk/alumni

Horizon is a consortium which is one of the final two bidders for the new Royal Liverpool University Hospital, one of the largest construction projects in the North West. The bidding team is an international consortium comprising - Interserve, John Laing and FCC Construccion. The presentation will look at the proposals for the new hospital, and cover the bid process involved in such a large and com-plex scheme. The presentation will be delivered by: Brian Furlong - Project Director, Jill Baker - Bid Manager, Michelle Helsby - Bid Consultant.

PROPOSALS FOR THE NEW ROYAL LIVERPOOL UNIVERSITY HOSPITALA networking event for LJMU alumni in the Construction and Property industry

lu ni nstru ti n ent 2 .indd 1 20/01/2012 16:15MODUS_Feb_p03-4_Content & Letters_v5.F1.indd 5 23/01/2012 10:57

Intelligence :NEWS :REVIEWS :OPINIONS :REACTIONS

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Westfield Group, the world’s largest shopping centre operator, has agreed an investment of US$612.5m (£390m) in the new World Trade Center complex in Lower Manhattan. The 16-acre site will feature around 365,000ft sq (34,000m sq) of retail space alongside the 1,776ft (541m), 105-storey One World Trade Center tower, which is due to complete in April 2013, and the National September 11 Memorial & Museum. Westfield had secured the rights to redevelop the retail facilities at the original World Trade Center just months before the September 11th attacks, and has now entered into a joint venture with the site’s owner, the Port Authority of New York and New Jersey, to manage and lease the retail premises, which are planned to open in 2015. Following the successful launch of its two London malls, Westfield London and Westfield Stratford City, the Australian retail giant has also announced plans to expand into continental Europe, with a 50% stake in a €1bn (£855m) development site in Milan. Westfield Milan will be of a similar size to 1.6m ft sq (150,000m sq) Westfield London, which opened in 2008. Westfield Stratford City, which at 1.9m ft sq (175,000m sq) is Europe’s largest urban shopping centre, attracted more than a million visitors in its first week of trading in September 2011.

:WORLD TRADE CENTER NEW YORK CITY, US

MODUS_Feb_p06-7_Intel_openerv1.indd 7 19/01/2012 13:01

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Intelligence//

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Industrial investment volumes grew strongly in Q3 2011, up 13% on the previous quarter and totalling €6.8bn (£5.8bn) for the year, according to Jones Lang La Salle. The total is 15% ahead of the same period in 2010, a sign of strong ongoing interest for logistics and industrial assets. ‘We are seeing an increasing

volume of equity targeting new investment opportunities in the sector, driven primarily by attractive income returns,’ said Chris Staveley, director of EMEA Capital Markets. ‘However, ongoing tight production in the top-end segment coupled with increasing global fi nancial tension is holding back much stronger performance.’

Global construction consultancy Gleeds has won a contract to provide a range of project and cost management services for the construction of a multimillion pound laser facility near Prague. The Extreme Light Infrastructure Beamlines Centre in Dolní Břežany will be a pilot for the production of the next

generation of buildings conducting laser research, helping to develop new ways of slowing the ageing process of reactors, controlling the lifetime of waste products, as well as cutting-edge products for the pharmaceutical industry. The centre is expected to be fully operational by 2015.

Europe // INDUSTRIAL GROWTH Czech Republic // LASER SURVEYING

It seemed uncanny that in the week that we were busily falling out with France and Germany over measures to save the euro, in the UK we had an independent report

by Mary Portas about how to reinvigorate our high streets. The Queen of Shops, it seems, agrees with Napoleon that we are a ‘nation of shopkeepers’. Even if we still view ourselves as such, our consumption patterns don’t refl ect it – we all use large chain stores, supermarkets and out-of-town retail parks. The review was refreshing in recognising this fact, and in its clear analysis of the change we have gone through in the 20th century and the marked evolution in consumers’ mindsets and expectations beyond what the high street can often offer. This has had deep implications for our communities and our sense of place.

But putting such philosophical debates aside, how do we turn around Britain’s high streets? Portas outlines some 28 recommendations, many of which RICS would broadly support – but not all. For instance, the well-intentioned idea of a ‘Town Team’ could simply add extra layers into local authority-led plans, without any benefits. The recommendations on business improvement districts (BIDs) may be more successful, given that they’re a proven method of managing town centres, are increasing in popularity and have government support. RICS has been supportive of BIDs for some time, and published research in December 2011 on what makes them successful and how they have been affected by the recession (bit.ly/ya9stG). We also partnered British BIDs in its annual survey of districts.

On business rates, Portas’ recommendations may have been overtaken by Eric Pickles’ proposals on localisation, and government will have to join these initiatives up. Neither really gets at the issue of empty property rates suffi ciently. RICS will be working with the Departments for Business Innovation and Skills (BIS) and Communities

and Local Government (CLG) on the recommendations, as well as bringing forward further research on Empty Property Rates in the next few months.

Portas even gets into the National Planning Policy Framework debate by arguing that it should include a presumption in favour of town centre development, and Greg Clark has said he’ll go back and see if this re-run of ‘town centre fi rst’ can be strengthened. Ultimately we can’t turn the clock back; we have to acknowledge that many retailers need out-of-centre locations where land is cheaper and large sites more accessible by car can be assembled. Having said that, a mix of shop types and sizes creates the variety that is essential to sustainable communities and our economic recovery. It is to be hoped that the many Local Enterprise Partnership Boards in England have taken a copy of the review home for reading.

In doing our bit, RICS and the British Retail Consortium have published a freely available lease that will support high street retailers by simplifying the leasing process for landlords and small business tenants. It provides a simple, easy-to-use contract that makes clear to all parties the agreement they are entering into (see page 44).

We look forward to the ministerial response to the Portas Review, and to working with the review team, BIS and CLG on the role the surveying profession can play in a sustainable future for our high streets.

Opinion

RICS SUPPORTS MANY OF PORTAS’ RECOMMENDATIONSJeremy Blackburn RICS UK Head of Policy

TOWN PLANRICS broadly supports most of the recommendations in Mary Portas’ report on turning around UK high streets

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:ONE BIG QUESTION WHAT ARE YOUR THOUGHTS ON THE CURRENT STATE OF RETAIL? AND WHAT DOES THE FUTURE HOLD?

02.12 // MODUS 09

Take part in discussions by joining the RICS group at linkedin.com

East Midlands You can easily drive to your out-of-town shopping centre/supermarket but not to your high street, so shoppers are less inclined to go. Although fuel duty is biting, most people still use their car.

Berkshire In Newbury, the new Parkway shopping centre has improved diversity but it is not yet fi lled. Retailers report a lack of customers and a general lack of confi dence in purchasing.

South East I expect the town centre will continue to be at the core of the retail off er – particularly those retailers with a unique off er and strong brand loyalty – but some locations will struggle.

Jeremy Murfi tt FRICS, EIS Property

Shane Prater MRICS, Quintons Chartered Surveyors

David Bainbridge, Bidwells

London Traditionally high streets were ‘stretched’ markets that formed the town centre, but infrastructure today grants easy access to every corner of a city, making centralisation less attractive.

London It is all about the shopper experience. We, at NewRiver Retail, actively seek to get closer to our dynamic retail partners, and regularly organise meetings as we can learn a lot from them.

Nick Sewell MRICS, NewRiver Retail

Nicolas BittnerEuropeRETAIL HIGHLIGHTSRetail investment in Italy, Germany, Poland and the Netherlands increased in 2011, despite an overall decline, according to Savills. However, this is attributable to a lack of prime opportunities rather than a loss of interest from investors. ‘There has been increasingly strong investor appetite for retail stock across Europe, especially in large core liquid markets,’ said Giles Wilcox, head of European Cross Border Investment at Savills.

TurkeyISLAND SHOPPING

Architecture fi rm BDP has revealed plans for a major new retail and leisure complex on the outskirts of Turkey’s third-largest city, Izmir. The Vaha Project will include 175,000m sq of retail, leisure, educational and social space, plus an entertainment park. A series of island destinations will be linked by bridges, with a central outdoor dining space forming the focal point.

UKHUB CONCEPTFoster + Partners, Halcrow and Volterra have unveiled a vision for a major rethink of the South East’s transport and communications infrastructure. The self-funded study proposes the construction of a £20bn international airport in the Thames Estuary, a £20bn high-speed orbital rail line around London and a new £6bn Thames Barrier.

US$40bnThe amount (£25bn) of infrastructure

contracts signed by Qatar’s Public Works Authority to improve roads and drainage

97% The percentage drop in aff ordable housing

starts in England between April and

September


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CAPITAL IDEALondon Mayor Boris Johnson at the opening of Westfi eld Stratford City. The rest of the UK would benefi t from a long-term strategic development plan like that of the capital

Opinion

PLANNING POLICY IS WIDENING THE NORTH-SOUTH GAPPeter Hetherington

Last year, a senior offi cial at one of Britain’s largest retail groups voiced his frustration at an unintended consequence of the government’s planning reforms

in England – namely, a further widening of an already alarming north-south divide. Far from being the gripe of a ‘Nimby’, he bemoaned the absence of a balanced planning strategy across the country. Why were retailers and developers investing disproportionately in London? Because, alone among English regions – the capital, let’s remember, is a powerful city-region set apart from the rest – it offered certainty through its London Plan, a strategic development framework looking ahead 20 years that should underpin every region.

For a variety of reasons, retailers are now feeling the pinch. Early in November, for instance, the pharmacy chain Boots reported a noticeable north-south divide in recent trade, with fewer shoppers going through its doors outside the Home Counties, and those who did spending less.

Until last year, England’s eight regions had London-style planning frameworks. But for Eric Pickles, Secretary of State for Communities and Local Government, they represented the worst excesses of a predecessor, John Prescott. So they had to go, along with housing targets and much else, such as the powerful Regional Development Agencies (RDAs), which – to varying degrees – supported business formation and, hence, job creation.

While strong arguments can be made about the undemocratic nature of these regional strategies, and the RDAs themselves, to close them down arbitrarily without any replacement seemed a triumph of ideology over evidence – especially when London has kept its regional plan and housing targets, and is being blessed with even more economic and housing powers.

For this government – and, to be fair, its predecessor – the capital is a special case, whose economy and potential for yet more growth should be strengthened at all costs. But hang on. Who said recently, ‘…the gap between the north and south is unfair and unsustainable’? And, in Manchester in October, ‘For too long we have seen a dangerous imbalance in our economy… between different parts of the country’? David Cameron, since you ask.

On regional tours, the prime minister never tires of reminding us that the UK economy is too dependent on one part of country (London and the South East) and one industry (fi nancial services). The problem is, his rhetoric has so far failed to match reality – though, to be fair, chancellor George Osborne’s autumn statement did fl ag up some important regional infrastructure projects. About time, too, when London gets the lion’s share of rail investment at £802 per head of population according to Treasury public spending fi gures – three times the level of Yorkshire.

By most measures, even in these challenging times, the North and the Midlands are suffering disproportionately. A recent UK economic outlook by PwC showed the north-south divide widening further with the North East (and Wales) suffering the highest increase in ‘household stress’, followed by the West Midlands. In contrast, says PwC, London, the South East and Eastern regions have fared better since the onset of what they label a ‘recession’.

London is an important driver of the national economy. But it’s not the only driver. Research for the Core Cities Group shows that the collective strength of its eight members (Newcastle upon Tyne, Leeds, Sheffield, Nottingham, Birmingham, Bristol, Manchester and Liverpool) at least equals the economy of the capital.

So what to do? For a start, recognise that if England is to remain truly united, a strong London depends on strong city-regional economies. That means the prime minister matching rhetoric with reality and working towards a level economic playing fi eld across the country. Scotland, for instance – and, to a lesser extent, Wales – is leading the way with a national planning framework to ensure equity. England is lagging well behind.

Of course, England will always have regional disparities – but not, hopefully, a widening chasm between a relatively booming capital, a ‘city state’, and the rest of the country. Time for action, not words. For starters, how about giving other city-regions such as Greater Manchester some of the powers – over, say, the economy and transport – enjoyed by the Mayor of London? Elected mayors for conurbations, rather than single cities? Why not.

PETER HETHERINGTON specialises in writing about urban and rural aff airs, planning, housing and local government. A former regional aff airs and northern editor of the Guardian, he contributes regularly to its Society section. Im

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Books :REVIEWS

The new edition of the essential guide to property and construction, used by professionals since 1983.19067 // £27.95

Order from ricsbooks.com

Each year BCIS takes a long view and produces a commentary and fi ve-year forecast of tender prices and building costs.4400 // £250

The most aff ordable guide to Building Regulations, this is updated regularly to refl ect constant changes.19060 // £26.99

This guidance note details best practice in the management of commercial property.19007 // £30

02.12 // MODUS 11

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IndiaHOLY HERITAGE

A museum dedicated to the Sikh faith has been built in the holy city of Anandpur Sahib. Designed by Moshe Safdie architects, the Khalsa Heritage Centre documents the history of the 500-year-old religion and celebrates the 300th anniversary of the Khalsa scriptures. Clad in local sandstone, the museum features exhibition galleries, a library, rare archive storage and 400-capacity auditorium.

NetherlandsTOWER INSPIRATION

The fi rst project of a masterplan to rethink and renew housing in the city of Nijmegen has been completed. Designed by 24H Architecture, the 13-storey Tower Hatert features 72 free-formed balconies wrapped around the building’s exterior, each with perforated aluminium screen railings inspired by the patterns of leaves. The developers of the €12.5m (£10.7m) tower also used FSC-certifi ed wood throughout the building.

TOP 10 Most expensive retail locations € per square metre1. 5th Avenue, New York 16,7042. Causeway Bay, Hong Kong 14,4263. Central, Hong Kong 12,0224. Tsim Sha Tsui, Hong Kong 10,2245. East 57th Street, New York 8,9096. Ginza, Tokyo 7,7507. Pit Street Mall, Sydney 7,3848. Avenue de Champs Elysées, Paris 7,364 9. Omotesando, Tokyo 7,13010. New Bond Street, London 6,901Source: Cushman & Wakefi eld’s Main Streets Across the World 2011

£793mThe cost (KRW1.4tn) of the Yongsan Triple

One tower in Seoul, set to become the world’s most expensive building

UKCORE SKILLS

A new centre for construction refurbishment training has opened in the Midlands. In a partnership between Stoke City Council, Stoke College and the Building Research Establishment, the Centre for Refurbishment Excellence (CoRE) has been built to BREEAM Excellent standard on the site of a derelict Victorian pottery. Featuring a training centre and exhibition space, CoRE will showcase sustainable refurbishment techniques and materials to help professionals collaborate in best practice across the industry.


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NEWS BITES

Carbon counterThe Environment Agency, in partnership with Sustain, Jacobs Engineering and Balfour Beatty, has launched a carbon calculator tool to help firms reduce the embodied carbon of materials and emissions associated with travel, transportation, site activities and waste management. Download it free at environment- agency.gov.uk.

Housing hazardsMore than a fifth of UK properties contain a hazard that may require immediate repair, according to research by SearchFlow. The company found converted flats to be the most dangerous type of property, in which 38% contained at least one Category 1 safety hazard, compared to just 12% for social housing.

Chatham planPlans have been submitted for a £650m mixed-use scheme to transform a derelict area of Chatham Docks in Kent. Known as Chatham Waters, the 26-acre project will feature offices, apartments, townhouses and a hotel. A public consultation revealed that 90% of respondents support the scheme.

Rail trainingThe Chartered Surveyors Training Trust has launched a scheme to help 12 young people train as quantity surveyors on a range of London transport projects. The charity is working in partnership with Transport for London and several surveying firms to provide the two-year apprenticeships.

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Opinion

CONSUMERS NEED TO START SPENDING AGAIN (JUST NOT TOO MUCH)Simon Rubinsohn RICS Chief Economist

If only we could roll the clock back a few years and get consumers, to use that rather overused phrase, ‘shopping till they drop’

again, the macro mood music today would sound rather less gloomy and policymakers would, in all probability, appear not quite so desperate. Predictably, as is the way with these things, it was not so long ago that this high spend culture was seen as part of the problem, particularly as so much of it was debt financed.

The call for a rebalancing towards spending on capital equipment and higher levels of exports was eagerly advanced in a number of major economies, with households encouraged to raise their depleted savings levels to ensure they were prepared for the proverbial rainy day. Of course, sometimes you have to be a little careful of what you wish for. As the headwinds facing the consumer became more visible, former Bank of England policymaker Sir John Gieve was moved to draw on the pertinent confession of St Augustine all those years ago: ‘Make me chaste and continent, but not yet.’

Unfortunately, it appears that households have taken the rebalancing message a little too

seriously. Paying down debt is now a key driver of consumer behaviour and, in all probability, this story has some way to run. Of course, the unwinding of past excesses is only part of the problem. Real incomes are being squeezed by high inflation, while unemployment is either rising in many countries or remains stuck at elevated levels in others. Against this backdrop, it is not surprising that consumer confidence is languishing in the US, the UK and much of the Continent.

Despite this challenging environment, it is interesting that for the time being most indicators point to good-quality retail space continuing to attract investor interest. But there is a question mark in my mind as to whether this will prove sustainable if 2012 turns out anything like some of the more bearish economic commentators are predicting. Interestingly, the latest RICS Global Commercial Property Survey detected a more cautious stance as to the likely trend in retail rents in the major Western markets, with Germany the only important market bucking the downbeat picture.

12%Commercial development

across central London rose in 2011, according

to Drivers Jonas Deloitte

AustraliaHARBOUR MAKEOVER

Construction has begun on a £3.3bn plan to develop a neglected area of Sydney Harbour. Despite public criticism, the Barangaroo scheme, designed by Rogers Stirk Harbour & Partners and developed by Lend Lease, will be dominated by a high-rise retail and residential development, as well as featuring a park and a museum dedicated to indigenous people. ‘This AUD$6bn transformation is set to reinvigorate Sydney’s position as a global city and financial services hub in the Asia Pacific region,’ said New South Wales premier Barry O’Farrell.

UKIKEA TOWNInter Ikea Systems has announced plans to build a sustainable suburb close to the Olympic Park. Strand East will feature 1,200 homes, a hotel, shops and 45,000m sq of office space. Around 40% of the properties will be three-bedroom mews homes, and with canals either side of the development, Ikea hopes to create a ‘mini-Venice’, with a water-taxi service providing transport. An on-site hydroelectric plant will provide power, while rubbish will be removed via a network of underground suction tunnels. Though planning permission is yet to be granted, demolition work has begun on the site.


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Chilly gusts of wind batter Blackpool’s seafront and rattle the door of Amanda’s Gifts. John Gibbon’s little souvenir and football memorabilia shop is firmly shut against the elements in spite of a sign

that proclaims he is open for business. ‘Blackpool last year was atrocious,’ he complains. ‘I’m pulling out soon and going to Scarborough.’

Meanwhile, in equally chilly but rather less windswept Brighton, ‘Mr Magpie’ of Mr Magpie Collectors Emporium – he asks that his real name not be printed because it will ‘ruin his street cred’ – is lovingly rearranging a display of antique printer’s blocks. He has been open for only six months and is optimistic about the future. ‘The reaction has been

fantastic. There’s quite a community of creatives down here – web design, film-making and recording. It’s a feeder to London without London’s overheads.’

The individual experiences of two traders don’t tell the full story. Not all is gloom in Blackpool, just as not all of Brighton’s retailers are looking forward with Mr Magpie’s buoyancy. But the starkly contrasting experiences of the two seaside towns as they have struggled to protect and nurture their shops through the recession demonstrates how difficult it will be to come up with measures to tackle the crisis in high street retailing in diverse parts of the UK.

That the crisis exists is indisputable. Barely a week passes without news of another major high street chain falling prey to a perfect storm of negative factors.

OPEN FOR BUSINESS?UK TOWN CENTRES ARE SUFFERING A WELL-DOCUMENTED DECLINE, SO WHAT CAN BE DONE TO HALT IT? STUART WATSON VISITS BRIGHTON

AND BLACKPOOL TO GUAGE THE HEALTH OF THE HIGH STREET

14 rics.org

Photography by Shaw & Shaw

Kensington Gardens, Brighton

MODUS_Feb_P14-20_High Street.v2.indd 14 19/01/2012 14:44

Habitat, TJ Hughes, Jane Norman and Oddbins all went into administration in 2011. Thorntons is to close 180 of its 364 high street stores, while Arcadia, which owns brands including Topshop, Bhs, Burton, Dorothy Perkins and Miss Selfridge, announced in November that it would close 260 stores after a 38% slump in annual profits.

There is an atmosphere of deep unease in the country as people fear that their once-thriving high streets will be turned into ghost towns, with parades of empty units studded with occasional pawnbrokers, charity shops and discount retailers. The government has taken note, and commissioned reality TV star Mary Portas to undertake a review that identified 28 recommendations of what government, local authorities and businesses can do to promote the development of more prosperous and diverse high streets.

Figures from retail analysis firm the Local Data Company (LDC) show that shop vacancy in the UK has increased almost fourfold since the beginning of the recession in 2008, from 4% overall to 14%. Over the same period, the development of out-of-town retail space has outweighed the construction of new in-town space by four to one. Supermarkets now account for 43% of all retail spending. Meanwhile, online shopping has grown to account for around 12% of all of the UK’s retail business.

Dr Richard Doidge is director of research and consultancy at Colliers International, one of a number

of consultants that have compiled an analytical report to accompany Portas’ review. ‘Previously high streets followed a cyclical pattern, but nowadays many commentators think there has been a structural change and shop vacancy rates won’t go back to what they were when the economy picks up,’ he says.

Doidge identifies a fivefold assault on the viability of high streets: total consumer spending has been squeezed as wages fall or remain static and inflation continues to rise; the proportion of total household spending on retail goods has fallen as other costs, such as domestic fuel, have risen; online spending is increasing at the expense of physical sales; out-of-town shopping, including supermarkets, is growing at the expense of town centres; and spending in shopping centres is rising at the expense of open-air high streets.

While these forces are at work across the country, they have not affected all towns and cities equally, however. Colliers’ research suggests that the gap between the best and worst performing centres is getting wider. While several locations in central >>

UK high street//

02.12 // MODUS 15

‘There has been a structural change – vacancy rates won’t go back to what they were when the economy picks up’

Church Street, Blackpool


16 rics.org

London saw prime retail rents grow by 20% or more between June 2010 and June 2011, West Bromwich, the worst performing centre, recorded a fall of 28.6%.

LDC’s figures for shop vacancies in Brighton and Blackpool also show a wide disparity. When it was last surveyed in October 2011, 11.5% of Brighton and Hove’s 1,713 shops were unoccupied, compared with a national average of 14.3%. In May 2011, 26.8% of Blackpool’s 646 shops were empty. Eileen Ormand, manager of Blackpool’s business improvement district (BID), an alliance of traders to manage and improve the town’s retail area, disputes the figure, arguing that it is based on an out-of-date definition of the town centre that takes in peripheral areas where there are more vacant premises. Matthew Hopkinson, a director at the Local Data Company, counters that all of its figures are based on boundaries defined by the Department for Communities and Local Government.

COMPARE AND CONTRASTA walk around the two centres is enough to confirm their differing fortunes. On Brighton’s North Laine, three narrow streets packed with small independent traders, only three vacant shops are visible, while on North Street and Western Road, where most of the national multiple retailers are located, there are just a smattering of empty premises. By contrast, Blackpool’s Bank Hey Street in the heart of its main shopping area is liberally scattered with sizeable empty units, pound

shops and temporary retailers. On the edge of the town centre the rows of shabby, boarded-up shops on Central Drive demonstrate the impact of the malaise in retailing even more clearly.

Sarah McConville started Blueberries on the outskirts of Blackpool town centre 27 years ago, and now runs a 4,500ft sq ‘boutique department store’ in the central Topping Street selling a variety of upmarket fashion lines. A quarter of sales are now via the internet. ‘That has allowed us to stay in the town centre,’ she says. ‘Trade would have dropped by about 20% [in the recession] without our online business. One of the problems in Blackpool town centre is the lack of quality independents. We are priced out by rents and rates.’

She feels that limited and expensive parking is driving customers away. The recent remodelling of the nearby St John’s Square has also led to the re-routing of buses past the shop and prevented customers from parking outside. ‘[The council] never asked the traders their opinions, and traders don’t bother now because their voice won’t be heard,’ she says. A campaign is needed to get local people to shop in the town centre, ‘But in order to do that you have to have a good offer here and not so many empty shops.’

Blackpool Council’s deputy chief executive Alan Cavill says the local authority has taken steps to address the problem. Over the last three years it has invested in a series of public realm projects throughout the town centre, upgrading public spaces, renewing

Nicky Harper of Pussy Home Boutique, Brighton


UK high street//

02.12 // MODUS 17

paving and street furniture, and adding some striking public art. ‘The number of empty shops in those areas has reduced slightly if anything, or certainly not got any worse,’ he claims. He adds that leakage of retail spending to nearby Preston and Manchester’s Trafford Centre has also been reduced.

But it is not only competition from other centres that has affected Blackpool’s high street. The Houndshill Shopping Centre, which opened in the heart of the town in 2008, has drawn many of its national fashion chains away from the surrounding streets. ‘A lot of high street stores have migrated into it,’ admits Ormand. ‘The flipside is it is a much bigger shopping centre with a food court that attracts people in, but they don’t always go out into the town.’ Research published by Colliers International and Retail Locations in September confirms that this is frequently the case when new shopping malls open. ‘That suggests that a decent new shopping centre can suck in 25% of the fashion multiples from the rest of the town,’ says Doidge.

Justin Taylor MRICS, CEO of Cushman & Wakefield’s UK retail team, argues that retailing is becoming increasingly polarised as the internet, supermarkets and other out-of-town developments swallow up more spending. He says large regional centres and distinctive market towns that offer a pleasant environment and a reason to visit beyond just shopping can compete and continue to attract consumers, while secondary centres

without such attractions are being left behind.LDC’s figures indicate that 68% of Brighton’s units

are occupied by independent retailers who operate five or fewer branches. But having a large number of independents does not make for a successful centre in itself. In Blackpool 75% of shops are independents, but for the council a lack of national multiples is a more pressing concern. Much of Brighton’s appeal lies in the diversity of its shops. The usual national chains on Western Road and in the Churchill Square shopping centre cater to locals. But the North Laine and the Lanes, with their wide variety of small independents, provide a tourist attraction in themselves. Books, arts and crafts, printers and stationers make up 4.4% of occupancy, compared with 2.5% nationally. There are 17 music shops – four times greater than the average – and 66 jewellers, twice the average figure. ‘That says to me it has a broad mix, a good novelty factor and a high dwell time. It’s got a lot going for it in that regard,’ says Hopkinson.

Claudia Fisher opened her first Purple Heart gift shop in North London in 2000, and a second in Brighton >>

‘One of the problems in Blackpool is the lack of quality independents. We’re priced out by rents and rates’

John Gibbon of Amanda’s Gifts, Blackpool


in 2004. She closed the London shop in 2006, but has since expanded to three branches in Brighton, employing 10 people. She found it hard to secure her first premises here and eventually had to pay a large premium to the landlord to lease a unit on Gardner Street in the North Laine area. Times have changed, however: ‘There are maybe one or two shops on the street unoccupied. There were five in the summer and that’s unheard of,’ she says.

But despite the downturn, business is good. ‘Brighton is busy, it’s buzzy. It will ride out the storm. People who live here really love it. You can eat well, drink well, go to the theatre, sit on the beach. A happy atmosphere feeds into everything.’

LOCAL ACTIONThere are signs that the recession is taking its toll, however. Soozie Campbell was formerly Brighton’s town centre manager and is now an independent retail consultant. ‘Footfall started to take a dive last year,’ she says. ‘A lot of the small shops said that they would see out Christmas and then close. Some are just holding out until they can pass on their leases.’ She fears that the Green Party-controlled Brighton council will raise parking charges, driving shoppers away to the Bluewater shopping centre in Dartford where spaces are free and plentiful. She is one of the creators of a new initiative called Explore Brighton, which is aimed at countering that threat by strengthening Brighton’s attractiveness as a location for a day out.

It will include a smartphone application that will help to guide people to events and shops.

Both Brighton and Blackpool operate town centre BIDs. A majority of retailers must vote to set up a BID, which then imposes a levy on traders to pay for services such as Christmas lights and security patrols as well as helping with marketing and offering a channel through which traders’ interests can be represented. ‘Brighton has improved vastly since the BID was set up,’ says David Houldey, owner of Friends for Leather, which has been trading from the same shop on Bond Street since 1914. ‘Ten to 12 years ago I was close to shutting up shop because of begging and antisocial behaviour. The Christmas lights were very good last year too.’

Liz Peace, chief executive of the British Property Federation (BPF), thinks many town centres would benefit from setting up similar organisations. In addition the BPF has called for government to introduce legislation to allow the landlords of retail premises to become involved in BIDs. ‘The [property] industry is very keen to do this. They can see the benefit of

18 rics.org

‘Brighton is busy, it’s buzzy. People who live here really love it. A happy atmosphere feeds into everything’

Purple Heart, Brighton


managing a business area holistically,’ she says. Peace also argues that local authorities must be more flexible in their approach to planning policy, so that peripheral areas where shops are no longer viable can be redeveloped for housing, or premises can be used for other footfall-generating uses such as doctors’ surgeries.

Cavill argues that Blackpool’s planning regime is already as flexible as it can be. Plans are already in place to redevelop some of the defunct shops on Central Drive as townhouses. He says the council has adopted a ‘carrot and stick’ approach, looking favourably on applications for change of use, but also increasing enforcement action to make landlords tidy up decaying premises. However, recession-hit developers are hardly queuing up to undertake schemes and many small private landlords are difficult to track down.

Planning rules could also be tightened to make out-of-town retail development more difficult, but Peace is not in favour of this option. ‘A bit of me would like to be more draconian, but on the other hand isn’t it just progress and change? Developers develop out of town because there is demand from potential occupiers.’

Many retailers in both Brighton and Blackpool raise car parking as a key issue, arguing that restrictions and charges are driving shoppers away. ‘It’s an age-old problem for local authorities,’ admits Cavill. ‘A significant part of the local authority’s income is from car parking, and we’re like any business – if we give away on one thing we have to take from something else.’

Another means by which local authorities could support retailers is through discounts to business rates. The level is currently set by central government, but provisions in the Localism Act will allow councils to offer local discounts from the start of the 2012-13 financial year. However, councils are already feeling the pinch of the government austerity drive, and will think long and hard before voluntarily reducing their income.

While the two seaside centres are affected by the same fundamental changes taking place on the UK’s high streets, they are very different places. Brighton already has a thriving and diverse retail core and benefits from being close to the economic powerhouse of London. Blackpool is a seaside resort struggling to modernise its shopping offer from a low base in the much less prosperous north. ‘I don’t think there’s a universal solution,’ says Doidge. ‘It needs to be tailored to local circumstances. But given the underlying trend there is too much retail floor space in town centres in secondary and tertiary locations.’

The clock cannot be turned back. In the future fewer people will spend less money on the high street. If town centres are to continue to be attractive places for people to spend their time, then councils, retailers and landlords will need to work together to ensure that each develops its own unique appeal.

Share your views on the future of the high street by emailing [email protected] or tweeting @modusmag.

UK high street//

02.12 // MODUS 19

A bargain retailer on Central Drive, Blackpool


THE END OF THE ROADTHE PORTAS REVIEW SETS OUT SOME USEFUL RECOMMENDATIONS, BUT IS

IT TOO LITTLE TOO LATE FOR MANY TOWNS, ASKS DOMINIC WILLIAMS

The British high street is a battlefront between preservationists and retail developers. Mary Portas has come down firmly on the side of the preservationists – apparently with support from David Cameron and the Cabinet. We can assume they were keen to avoid the kind of outcry that greeted the draft National Planning Policy Framework (NPPF). So, in that sense, The Portas Review is best seen as a political statement rather than a strategy, its primary aim to placate and reconcile various interest groups rather than to set out a new direction for the high street.

Eight of the 28 recommendations concern planning, including a clampdown on out-of-town development in much stronger terms than the draft NPPF proposed. Three suggest reducing the impact of business rates, albeit couched as ‘Government should consider…’ rather than ‘Government should…’ In reality, it is unlikely the Treasury will forgo any more business rates revenue than absolutely necessary, but it is a sign of the times that it is even prepared to discuss such an idea.

There is only one recommendation on parking – asking local authorities to consider reducing charges, rather than raising them as many have done. Several recommendations encourage self-help through business improvement districts (BIDs) and Town Teams, including giving landlords BID representation. Mostly these

are neither new nor controversial. There are also vaguer proposals for dealing with empty shops, such as ‘Explore further disincentives to prevent landlords from leaving units vacant’, that have upset some property groups. Overall, however, there is something for most interest groups to be pleased about, so it has achieved its political aim of defusing a potential row.

However, it also leaves many questions unanswered. It assumes the main problem is how retail expenditure is divided between in town, out of town and online – so reducing out-of-town development will automatically help town centres. However, over the last boom, retail expenditure grew by about 3.8%pa, compared with 3% GDP growth. Meanwhile at local level, it was common to find retail capacity studies based on 5%pa growth for the foreseeable future. As Kenneth Boulding (a famous economist) once said, ‘Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.’ In reality, the growth in spend in the last 20 years was unsustainable. It is likely to be non-existent if not negative in real terms for five to 10 years.

That slowdown affects centres unevenly. Most failing centres are failing not because the retail offer is bad, but because the local economy is bad. That is why the North of England is generally faring worse than the South. Meanwhile, shopping is

concentrating in fewer and fewer large shops in large centres, which are thriving at the expense of smaller towns. There is nothing in the review to address this trend, which appears unstoppable. Moreover, the changes in shopping patterns are happening much quicker than any counter measures can be put in place. Couple this with the loss of public sector jobs and 2012 looks like being make or break year for many town centres.

Portas is clear that the high street needs radical reinvention, and offers some suggestions, such as converting shops to other uses such as residential, offices and leisure, and increasing footfall through more non- commercial activity such as schools, gyms and youth centres. Generally, the review has been greeted as a set of recommendations that are sensible enough – as far as they go. Whether they will be enough to save the high street in its current format is doubtful. While the government may have avoided a row over the loss of trade from town centres to supermarkets, to a great extent the damage has already been done – and 2012 looks like being the year that damage becomes fully evident. Unfortunately, in many towns there may not be much of the traditional high street left to save.

DOMINIC WILLIAMS FRICS is director of Hewdon Consulting. hewdon.com

Photography by Shaw & Shaw

20 rics.org

“ WHEN WE RECOMMEND

A CONTRACTOR FOR A

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ABSOLUTELY SURE THEY

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ECA electrical contractors are periodically assessed to ensure their technical competence

ONE LESS THING TO WORRY ABOUT.

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ECA faces 274x202.indd 3 13/01/2012 11:35MODUS_Feb_P14-20_High Street.v2.indd 20 19/01/2012 14:59

“ WHEN WE RECOMMEND

A CONTRACTOR FOR A

PROJECT, WE NEED TO BE

ABSOLUTELY SURE THEY

ARE RIGHT FOR THE JOB”Jim Rowland, Director, Jones Lang LaSalle

ECA electrical contractors are periodically assessed to ensure their technical competence

ONE LESS THING TO WORRY ABOUT.

To find an ECA contractor that’s right for you: www.eca.co.uk

ECA faces 274x202.indd 3 13/01/2012 11:35MODUS_Feb_P14-20_High Street.v2.indd 21 19/01/2012 14:59

Profile//

Going right back to geography at school, I’ve always loved understanding how towns and cities evolve. I grew up in Northampton, a half historic, half new town that has seen rapid expansion over the years. I remember someone mentioning town planning to me at a careers event and I thought it sounded interesting. So I did a BSc in planning and architecture at University College London, and a diploma in town and country planning. As I was more interested in the development and financial side, my lecturer recommended taking a masters in land management, which I completed at Reading University. I then joined CB Hillier Parker’s graduate scheme, and went on to do the APC in planning and development. In fact, in 2000, I became a member of RICS, a member of the Royal Town Planning Institute and got married all within the space of a few months.

AspinallVerdi was set up two years ago as a Leeds-based property consultancy. I knew one of the founders, Atam, when he was at King Sturge and I was at CBRE. We lost contact for a while, but were reacquainted through LinkedIn – and he offered me a position. It’s incredible how social media is changing the property world. My aim is to grow AspinallVerdi’s London office, and I’m advising public and private sector clients on regeneration and development schemes. Town centre regeneration schemes take a long time to come to fruition – at least 10 years from planning to completion. But I think we’re now at a stage where more local authorities are looking to plan more innovative schemes, because there’s a definite link between investing in town centres and attracting employment and occupiers. The key is not to let town centres be – they must keep evolving to remain strong. Those that don’t invest in their future will fall further behind, leading to higher vacancy rates.

So we have to plan now, but what’s changed is that local authorities have to be a bit more clever as to how they use their assets in encouraging retail schemes, perhaps through partnership

opportunities to invest in a project’s growth, particularly when they’re up against big out-of-town shopping centres. It’s about being flexible and innovative. Mechanisms such as tax increment financing (TIF) should also help some schemes where there are big infrastructure costs – TIFs have been on and off the agenda for a while in the UK, but hopefully this year they’ll start to come into place.

Bracknell has su�ered from a lack of investment in the past 20 years, and has lost trade to neighbouring towns, partly due to a lack of modern retail units in the centre. In 2003, two landowners proposed competing regeneration schemes, but they were rejected as there was too much development coming forward. I was at CBRE at the time, and the local authority asked us to prepare a revised masterplan. As a result, a ground-breaking partnership, the Bracknell Regeneration Partnership, was set up between the two landowners to deliver a 67,000m sq retail and leisure scheme – but by 2007 the downturn hit and it was again deemed unviable. So we were brought back in to improve viability. Every element of the masterplan has had to be re-phased or reworked. I think this is probably happening across the UK – the days of the really big town centre schemes are only going to happen in the larger, financially stronger town centres.

Bracknell’s original scheme was to be covered, but will now feature an ‘open streets’ design. I think this is key for reconnecting the development with the rest of the town centre, so there is a good flow of shoppers in a ‘retail loop’. Town centres have to be about more than just retailing – they should also be a leisure experience. There’s no question that those that can combine both are more likely to succeed. You need to attract people to stay there for the day. This should be the case for a large city to a smaller or historic town centre – think innovatively about your town centre and you’ll attract occupiers and trade.aspinallverdi.co.uk

22 r ics.org

’

‘

‘The key is not to let town centres be – they must keep evolving to remain strong. Those that don’t invest will fall further behind’ Parm Dosanjh FRICS has been involved in

a masterplan for Bracknell since 2003, the first phase of which is now coming online

MODUS_Feb_P22-23_Profile.v3.indd 22 19/01/2012 15:07

02.12 // MODUS 23

1o minutes with…

Regeneration, AspinallVerdi

Interview by Brendon Hooper Photograph by Victoria Birkinshaw

PARM DOSANJH

MODUS_Feb_P22-23_Profile.v3.indd 23 19/01/2012 15:07

EASTERN PROMISEWITH ASIA’S ECONOMIES GOING FROM STRENGTH TO STRENGTH,

CONSUMER SPENDING ON LUXURY BRANDS IS BOOMING – LEADING TO A SURGE IN RETAIL DEVELOPMENT ACTIVITY, SAYS KIT GILLET

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MODUS_Feb_P24-29_Asia_retail_Law.v6.indd 24 19/01/2012 15:19

For those who haven’t noticed, the world is changing, and fast. Countries in Asia once known as the factories of the world are now leading the way in

newly minted high-end consumers, and luxury brands struggling in the aftermath of the global financial crisis have been quick to see the potential – and rush in and help those with money spend their cash. Cue a surge in luxury retail developments everywhere from India and Vietnam to Hong Kong and, of

Luxury retail//

course, China – the Mecca for brands on the lookout for millions of untapped consumers.

Even a decade ago this wouldn’t have seemed likely, with much of the region’s dominant powers at the time still struggling to recover from the Asian financial crisis, and countries such as China and Vietnam still finding their feet in the global consumer world. ‘Twenty years ago we were limited to a small number of high-end hotel arcades with probably room for 20 small shops, each about

2,000-3,000ft sq,’ explains Sebastian Skiff, executive director of CBRE Retail Asia. Now the region boasts dozens of luxury-only malls and a strong presence from most of the leading global luxury brands.

‘Five years ago it really started to change,’ says Skiff. ‘At that time there were still only two or three international malls in cities like Beijing. Now brands are increasingly launching their seasonal fashion collections in Asia before anywhere else. This was unheard of >>

02.12 // MODUS 25


‘We were initially worried about the global financial crisis, but sales since then have been amazing. Sales in luxury goods have tripled in the last three years’

26 rics.org

five years ago. For big luxury brands, half their sales are now from Asia, or at least from Asians travelling overseas.’

In fact, in 2010, sales of luxury goods in China reached US$10.7bn (£6.8bn). And that doesn’t include the small fortune spent abroad: Chinese consumers ranked first in terms of overseas consumption in 2010, with US$50bn (£32bn) worth of luxury goods purchased in Europe alone.

‘In Shanghai, luxury retail is growing at 20% a month. Where else in the world is like this?’ says Maureen Fung MRICS, general manager of leasing at Sun Hung Kai Real Estate Agency, one of the largest real estate companies in Hong Kong and the developer of the International Financial Centre (IFC) Mall in Shanghai, one of Asia’s leading luxury malls. ‘In 2006 the luxury market was still at the beginning, but since then the speed has

been beyond imagination. Even in Hong Kong, which has had luxury retail for a long time, it really picked up in 2009. This was mainly due to Chinese consumers coming to Hong Kong to buy luxury items. We were initially worried about the global financial crisis, but sales since then have been amazing. Sales in luxury goods have tripled in the last three years.’

Six of the 10 economies with the fastest-growing millionaire populations are now in Asia, led by Hong Kong and Vietnam, which each saw annual growth of 33% in 2010. The Asia-Pacific region is home to approximately 3.3m US dollar millionaires, according to the 15th annual World Wealth Report by Merrill Lynch and Capgemini, an increase of roughly 10% from 2009. ‘We did a survey on global luxury retail,’ says Matthew Green, head of research in the consulting division of CBRE Middle East. ‘Asia had four or five places in the top 10. In fact, Hong Kong was the top location for luxury fashion brands, with Dubai second.’

In short, Asia’s love affair with luxury retail shows no sign of waning. In fact, it is likely to pick up pace as Gucci handbags and Louis Vuitton dresses continue to become no longer unobtainable status symbols but something consumers strive towards on the everyday streets of Asian cities such as Beijing, New Delhi, Hanoi and Singapore.

BUILDING BOOMTo help realise this trend – and to stop wealthier consumers shopping abroad – luxury malls are appearing with increasing frequency across Asia. From the six-storey, diamond-like IFC Mall in Shanghai to the 300,000ft sq DFL Emporio in New Delhi, India, and Savills’ soon-to-be-opened The Crescent in Ho Cho Minh City, Vietnam, specialised malls are being set up to cater specifically to luxury brands and their deep-pocketed consumers.

‘Historically, luxury brands in Asia operated out of hotel lobbies. It was an easy access point into a country for them, but it meant there was no room to expand,’ says Vivek Kaul MRICS, head of leasing and corporate marketing at real estate developer DLF. Six years ago his company felt that India was ripe for a luxury-only shopping venue and established the country’s first luxury mall, DLF Emporio. It now boasts many of the world’s leading brands – from Cartier and Armani to Versace and Tom Ford – as well as top Indian fashion labels.

‘It took us some time to get 100% occupancy,’ Kaul says. ‘When we opened three years ago, the challenge was finding the right brands; there were a lot looking but they were being cautious. We also wanted a healthy mix of high-end Indian brands as well as global brands. Top Indian designers charge thousands of dollars for dresses, and Im

ages

Get

ty; C

orbi

s


Luxury retail//

02.12 // MODUS 27

lots of women wear Indian couture to weddings and functions, so there is a desire for it in the retail space and it is a huge business in the country.’ DFL Emporio hit full occupancy in 2010, and Kaul says that his company is now looking at opportunities in other cities across India where high-end retailers have yet to enter prominently.

However, big luxury brands don’t want to set up shop somewhere that may quickly be forgotten by consumers, or where the building design or structure ages badly, adversely affecting brand perception. ‘They are cautious about where to establish themselves because everything here is moving so fast and trends change overnight,’ explains Skiff. While a challenge for developers, this also presents a great opportunity – if they create a stylish location with the right buzz, they can become the one-stop location for many of the global luxury brands in their market.

‘Our most important decision was what to make it look like – it needed to be both modern and classic Indian and designed by top architects,’ says Kaul of DFL Emporio. ‘After we had created the space the biggest challenge was then convincing the brands that the healthy mix of Indian and global luxury brands will be maintained. We need to continually do this.’

Part of the overall caution for luxury brands is about entering markets with which they are unfamiliar, but a large part is due to the limited number of outlets they can have in a single market: unlike Starbucks, which can be placed on every street corner, high-end retailers are likely to have a single signature store in any one market, and perhaps a few smaller outlets. They must therefore choose their locations wisely. This explains why rent on Hong Kong’s Canton Road is among the most expensive in

the world, and why The Dubai Mall has an entire fashion avenue filled with all of the world’s leading brands – they cluster together to guarantee that the there is no better location to buy high-end goods in the whole region.

MARKET KNOWLEDGEThe importance of a singular location leads many brands to choose trusted developers with a good knowledge of the local taste and market. This has so far given an advantage to those with strong regional backgrounds, such as Swire Properties, whose high-end developments in Hong Kong have given it a proven track record among many of the leading luxury brands that have made their entrance into mainland China in the past few years. The limited number of locations in which luxury brands will set up shop also means developers can’t afford to make mistakes or not keep up with trends.

‘Five years ago in China all the malls were gold-covered and traditional looking,’ says Fung. ‘Now they are all fresh and following international high-end sensibilities.’ Many developers are bringing in top architects in an attempt at differentiation, but in order to succeed every element needs to be considered. ‘When it comes down to the nuts and bolts >>

‘Big luxury brands are cautious about where to establish themselves because everything here is moving so fast and trends change overnight’

Previous page: rents in Canton Road in Hong Kong’s Central district are some of the most expensive in the world. Far left: the Plaza 66 shopping mall in Shanghai, where retail is growing at 20% a month. Left: Many Chinese cross over from the mainland to shop in Hong Kong, ranked the top retail destination for luxury brands by CBRE


it is very hard for shopping centres to be different,’ says Skiff. ‘Architecture is one way, so having the wow factor is important, but the right management also becomes key since luxury brands can’t afford to mess up their first entrance.’

Developers have found that even simple touches such as smartly dressed security guards can help to draw in the crowds, and the top brands with them. But it can be initially expensive to attract the big names, with one

developer explaining that each luxury brand looks for contributions from the landlords on improving the space, which can cost as much as US$2-3m per brand for the developer.

However, with experts predicting that Asia is at the beginning of a wealth creation cycle that could last 25 years and create millions of new millionaires, luxury retail developers who are able to successfully tap into this massive opportunity are potentially sitting on a gold mine. The main challenge for those

Luxury retail//

involved, however, is simply keeping up with the growth. ‘With everything moving so fast it is hard to plan even three years ahead. Developers have to try to predict the trends,’ says Skiff.

‘We have learnt some lessons,’ adds Kaul. ‘We could have built bigger, since now we don’t have room for the luxury brands entering the market. We also want to add features like a spa or salon but there is simply no room. It is a learning curve.’

28 rics.org

:NEW LUXURY RETAIL DEVELOPMENTS ACROSS ASIA

INTERNATIONAL FINANCIAL CENTRE (IFC) MALL, SHANGHAIDeveloper: IFC Development (Sun Hung Kai Properties, Henderson Land and Towngas)Size: 1,000,000ft sq (100,000m sq)Rent: HKD250-300 (£20-25) per square foot per monthOpened in time for the Shanghai 2010 Expo, IFC Mall is located in the city’s Lujiazui financial district and offers six storeys of luxury brands and one of only a handful of Apple stores in China – a significant draw for technology-hungry Chinese.

BELLAVITA, TAIPEIDeveloper: CC LeungSize: 225,000ft sq (20,000m sq)Rent: N/AOpened in 2009 to compete in the already crowded Taiwan luxury market, Bellavita offers shoppers a ‘European-style’ mall, complete with flagship stores by Bulgari and Hermès. Located next to the Taipei 101 in Taipei’s Hsinyi district, the mall will further heat up top-end retailing in an area already known for its availability of luxury brands.

DLF EMPORIO, NEW DELHIDeveloper: DLFSize: 320,000ft sq (30,000m sq)Rent: INR900-1,000 (£11-12) per square foot per monthIndia’s first luxury-only retail development opened in 2008, offering exclusive shopping and dining experiences to the growing high-end consumer class in New Delhi. Designed by architects Mohit Guiral and Chandu Chadha, it houses more than 70 global luxury brands and 100 top Indian designer brands centred around two dramatic atrium courtyards.

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∑ THE CRESCENT, HO CHI MINH CITYDeveloper: Phu My Hung CorporationSize: 485,000ft sq (45,000m sq)Rent: N/AIntended to become the social heart of the new urban area of Phu My Hung, and the first international-standard complex in the city, The Crescent is set to be the gateway for many luxury brands to expand into one of Asia’s fastest-growing economies. The development is leased and managed by Savills, which invested US$200m (£128m) in the project.

Imag

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Law advice//

The rules on

PURSUING DEBT ABROADIllustration by Dale Edwin Murray

02.12 // MODUS 29

There have been cases of foreign nationals setting up development projects in England then disappearing to their native country when money becomes a problem, leaving companies with unpaid bills. So what are the options open to businesses pursuing foreign debtors?

EU DEBTORSThe European Order for Payment (EOP) procedure was introduced in 2008 with the aim of making it easier for creditors to recover uncontested debts where the parties live in different EU member states. The procedure is started by completing standard forms and sending them to the court in England, along with supporting information. Assuming the court is satisfied, it will issue and serve an EOP on the debtor, informing them that they must either pay the amount of the debt or contest it. If the debt is not contested, the order becomes enforceable in the same way as a judgment by the court of the member state in which the debtor is based.

If the debt is contested, then the creditor will need to sue the debtor in the usual way. The starting point is to examine the contract between the parties to see if it has been agreed that the English courts will handle the dispute. If there is no written contract, or if the contract does not deal with jurisdiction, then usually a debtor can only be sued in the EU member state in which they are domiciled. There are, however, some exceptions to this rule:

If the contract was performed in England, it may be possible to bring a claim in the English courts. The European Court of Justice has ruled that ‘performance’ of the contract will usually be the place where the agreed services were carried out or,

in the case of the supply of goods, the place of delivery. Where there has been a failure to perform a contractual

obligation at all, the European Court of Justice has decided the courts in the EU member state where the harmful event occurred will usually have jurisdiction to hear any claims.

The rules must be carefully considered to see if these or any other exceptions apply, to avoid wasting time and money. Even if an exception does apply so as to allow a business to sue a foreign debtor in England, additional procedural requirements will be required to properly serve the claim on the debtor in their own country. Assuming judgment is obtained by the creditor, it may be enforced against any assets the debtor has in England or the EU.

NON-EU DEBTORSIf the contract between the parties deals with jurisdiction, this is likely to prevail. If there is no contractual provision, the rules are more complicated. The English courts may agree to handle the claim, but this will depend on the case. Assuming the English courts agree to deal with the claim, permission to serve the debtor in their own country will be required and additional formalities complied with.

If judgment is obtained by the creditor, enforcement could also be more complicated. Many countries have reciprocal recognition and enforcement of judgments made by the English courts. When that is the case, enforcement against any assets of the debtor in that country will be possible. Where this is not the case, a creditor is usually only able to enforce the judgment by suing on the English judgment in the debtor’s country.

CONCLUSIONTo avoid the uncertainty and additional cost of pursuing a debtor in a foreign court, it is important to make sure you have a written contract that gives you the right to sue in England. In one recent case, an English business suing a foreign debtor was bound by a jurisdiction clause contained in the debtor’s general conditions, which stated that any disputes had to be dealt with by the German courts. Even though the English business had not seen the debtor’s general conditions, the court found they applied because they had been mentioned in the contract between the parties.

Before commencing any action, it is vital to establish whether the debtor has assets to enforce judgment against. Where are the assets located, and will an English judgment be enforceable in that jurisdiction? You may be confident you will win, but if there are no assets, or enforcement is not possible, then clearly there is little to be gained in pursuing a claim. Any decision to pursue a foreign debtor must be a commercial, rather than an emotional, one.

DOUGLAS SKILTON is a senior associate in Thomson Snell & Passmore’s dispute resolution team. ts-p.co.uk

MANY COUNTRIES HAVE RECIPROCAL ENFORCEMENT OF JUDGMENTS MADE BY THE ENGLISH COURTS


10 GADGETSWHAT DO YOU BUY THE SURVEYOR WHO HAS EVERYTHING? MARK HARRIS PUTS TOGETHER HIS TECHNOLOGY WISH LIST

5 TRIMBLE S8 TOTAL STATION £20,000The Total Station brings together technologies to

cope with virtually any measuring situation. Traditional prisms can be used at up to 7,000m, while its Direct Refl ex system lets you shoot distant cables, bridges and elevations quickly and safely. A portable controller lets you see everything without a trip back to the tripod.trimble.com

3 SUREFIRE G2X PRO £95When is a torch not a torch? When it’s a

high-effi ciency tactical illumination device. With a superb grip and a virtually indestructible polymer casing and polycarbonate window, the G2X can switch between a penetrating 200 lumens beam and a 15 lumens mode that extends run time up to 45 hours.surefi re.com

1APPLE IPAD £400Taking a shiny new iPad on site is about as

sensible as packing Waterford crystal in your lunch box. But invest a little more in a protective case and you’ve suddenly got a practical digital assistant. OtterBox’s Defender features a polycarbonate shell, silicone skin and self-adhering screen protector (£50).apple.com

2SPHERON SPHEROCAM HDR

£30,000High dynamic range (HDR) aims to reproduce scenes exactly as they are seen by the human eye, taking two images in quick succession and combining them into one photograph. The Spheron goes a step further, taking a series of exposures that it blends into a spherical 360˚ image, complete with GPS tagging and time-stamp.spheron.com

4 FARO FOCUS 3D LASER SCANNER £24,000This compact scanner captures 3D point clouds

at a speed of nearly a million points per second, and with millimetre accuracy. It can measure distances, surfaces and volumes at a range of up to 120m, and has wi-fi remote control and a colour touch-screen to control its built-in digital compass and altimeter. faro.com

images in quick succession

superb grip and a virtually indestructible polymer casing and polycarbonate window, the G2X can switch between a penetrating 200 lumens beam and a 15 lumens mode that extends run time up to 45 hours.surefi re.com

30 rics.org

10 GADGETS

MODUS_Feb_P30-31_Top Buys.v3.indd 30 19/01/2012 16:33

02.12 // MODUS 31

Top buys//

6 SENSEFLY SWINGLET CAM £7,000This Swiss mini drone is designed for aerial

mapping, carrying a 12MP camera that can be triggered at set points or remotely from a laptop. Simply shake it three times and it leaps into the air, remaining aloft for around 30 minutes on a single charge before landing gently just yards from where it took off .sensefl y.com

10PENTAX OPTIO WG-1

GPS CAMERA £200avThis 14MP compact camera is dustproof, waterproof (to 10m), shockproof (for 1.5m falls), freezeproof (to -10˚C) and crushproof (to a very specifi c 979 Newtons). It has a decent 5x zoom lens, shoots HD video and is particularly strong on close-ups. Better still, a built-in GPS receiver geo-tags each image with your precise location.pentaximaging.com

7LATCHWAYS R20 PRD £TBC

When you’re working above ground, a safety harness is a legal (and sensible) essential. This personal rescue device has a simple parachute-style ripcord and a 20m spool of cable with integrated brake mechanism that lowers the wearer gently to the ground in a matter of seconds. Longer cables are coming soon, and it conforms to all the latest EN, ANSI and BS standards.latchways.com

7 LEICA DISTO 3D £5,290

Think of this fl exible gadget as the Swiss Army knife of surveying. Just aim the built-in laser at any visible point to record its distance, angle and inclination, or let it automatically scan an entire room. It can display measurements in real time, project your design on to any surface point for point, and shoot photos to accompany your scans.leica-geosystems.com

Top buys

6SENSEFLY SWINGLET CAM £7,000This Swiss mini drone is designed for aerial

mapping, carrying a 12MP camera that can be triggered at set points or remotely from a laptop. Simply shake

8 OPTIMUS GREEN NOISE

METER £3,000This powerful sound level meter measures all the key parameters for industrial and residential environmental noise surveys, recording them simultaneously so you can test quickly and review the data at your leisure. It comes with 4GB of storage and voice tagging to add your own comments.noisemeters.co.uk

This powerful sound level meter measures all the

industrial and residential

surveys, recording them simultaneously so you

review the data at your

angle and inclination, or let it automatically scan

accompany your scans.

MODUS_Feb_P30-31_Top Buys.v3.indd 31 19/01/2012 16:33

32 rics.org

GREAT DEALS! WHILE

STOCKS LAST!

SUPERMARKETS ARE IN THE MIDST OF A SPENDING SPREE ON PROPERTY AND

CONSTRUCTION. ROXANE McMEEKEN FINDS OUT FOUR OF THE BIG PLAYERS’ PLANS

MODUS_Feb_P32-35_Supermarkets.v6.indd 32 19/01/2012 16:56

Supermarkets//

02.12 // MODUS 33

Despite the generally gloomy outlook for retail, supermarkets are offering surveyors some unbeatable deals. In contrast to the lack of activity elsewhere,

the fast-moving, competitive supermarket sector is booming: Tesco, for example, may have had a disappointing Christmas, but last April the UK’s biggest player reported annual pre-tax profits of £3.54bn, up 11.3% on 2010. But supermarkets’ shopping habits have changed. With the out-of-town megastore market becoming increasingly crowded and hampered by planning issues, supermarkets have switched focus to the high street in the past year or two. Now they are engaging in an unprecedented and fi ercely fought battle for land in urban centres, with that land often being used for smaller convenience stores. They are also focusing their formidable energies on sustainability, with an array of innovative and ambitious initiatives. We asked four of the UK’s major players what they’re building and what’s on their shopping list when selecting suppliers.

TESCO Tesco will add around 2.5m ft sq in the UK over the 2011/12 fi nancial year. In 2010/2011 it added 2.8m ft sq, including 200 new stores and 400 store extensions, with a construction spend of £1.7bn. While it will not reveal its future building plans, it expects to maintain the current momentum.

TREVOR BACON development directorWhat is Tesco building?// Everything from smaller Express and Metro stores to large and Extra stores, which are mainly out-of-town hypermarkets. We are also building a number of mixed-use town centre schemes, for example in Woolwich near the London Olympic Park, and Gateshead in Tyne and Wear. We have six of these on site and we’re looking at another six over the next three years, one of which will start on site in 2012.

How sustainable is Tesco? // All our new stores would be classed as environmentally friendly as they feature key elements such as energy-saving devices, energy-effi cient heating and air-conditioning systems, and rainwater harvesting. Some stores go even further and, often through planning discussions, include elements such as timber frames and timber cladding – effectively substituting steel with timber, which is less energy intensive to produce. We are also

developing zero-carbon stores, the fi rst in the world of which we opened two years ago in Ramsey, Cambridgeshire. The store generates its own energy on site using renewable fuel. This was followed by three zero-carbon stores in Bourne, Lincolnshire, Cabra, Dublin, and Welshpool, Powys.

What do you want from surveyors?// They need to understand we are in a fast-paced environment and we’re constantly looking for new ideas. So people we work with must be innovative and forward-thinking. We are keen to hear what quantity surveyors have to say about adding value, not just cutting costs. There is too much focus on simple cost-cutting in construction at the moment. Unlike many construction clients, we are not only the developer but also the end-user of our buildings, so we want our projects to provide whole life-cycle value. So we would be very interested to hear from surveyors who could add genuine value to both the building and maintenance processes.

Are you open to new approaches from surveyors?// We work regularly with seven practices – Faithful + Gould, Gleave Partnership, MAC Cost Consulting, Rider Levett Bucknall, Thomas & Adamson, Summers Inman and Stace – which sit on our Cost Consultants Forum. But we extend this when other fi rms can offer greater expertise on a particular project – for example, if it involved something specialised like asbestos removal or if it was a special type of mixed-use scheme. Therefore at present we are working with 16 practices. So we are always open to more. We have an open dialogue with the construction industry based on informal chats rather than tenders.

Tesco hit the headlines in 2009 for cutting consultants’ fees by 40% – how tough are you on surveyors?// If you are worried, come and talk to us. We operate a framework based on fair fees and many of our consultants have been with us for decades, so you might be surprised by what we offer. >>

WE ARE KEEN TO HEAR WHAT QS HAVE TO SAY ABOUT ADDING VALUE, NOT JUST CUTTING COSTS


34 rics.org

MORRISONSMorrisons plans to add 2.5m ft sq over three years. In the 2011/12 fi nancial year it will add 30 stores, including 16 acquired from Netto, and 750,000ft sq through extending existing stores.

DAVID WADE construction directorWhat is Morrisons building?// Our traditional heartland is the north of England, but we’re in the middle of a big push to expand our stores in the South and Scotland. Whereas we previously built freehold stores, as we move around the country, especially in the South East, fi nding freeholds is more diffi cult, so we’re undertaking developer leasehold schemes. We now look at a much greater array of footprint sizes for our stores, from convenience stores to stores with up to 40,000ft sq of sales space. This fl exibility allows us to look at more sites, particularly in towns where we might not have opened previously due to a smaller population.

How innovative is your approach to construction?// We are innovating in three key ways, exemplifi ed by three of our newly opened stores. First, we have a greater intensity of food manufactured on site than other supermarkets, which adds to building costs, but in our ‘lean’ store in Newport, South Wales, which opened in October, we have trialled methods of driving down construction costs for the standard elements of buildings, both shell and fit-out. We’re looking at omitting suspended ceilings, and using a long-span steel-frame system instead of blockwork and brickwork for the shell. Second, our ‘store of the future’ concept is about enhancing our fresh food credentials. There are smaller trials of this concept happening, but it is being pioneered in our Wrexham, Clwyd, store, which opened in November. The approach is based on fi xtures, fi ttings and display cases that show off products in the best way. In Wrexham we have opened up the produce aisle of the store and

focused on creating good sight lines across fresh products. Third, we have a lot of ideas about saving carbon and decided to put all of them in one place in our Peterborough store, which opened in October. It’s not about ‘eco bling’ or adding green gadgets for the sake of it – we have looked at what is sustainable commercially as well as environmentally. The 13,655ft sq store is, I believe, the first to be fully LED-lit, and it also makes signifi cant use of natural lights. It’s Rated BREEAM Excellent and has an energy rating of A. We’re monitoring consumption and taking readings and we’ll roll out what works to other stores.

How can surveyors win work from Morrisons?// We have two-year frameworks with contractors and consultants, including surveyors, which are at various stages, but we will not have any new opportunities coming up on these for a year. However, we are interested in hearing from companies about development opportunities. In the South, companies are coming to us with useful information regarding sites and we are prepared to work alongside fi rms in joint ventures to bring along certain schemes. For example, if we were developing a scheme including housing and a cinema, we could be open to consultants with expertise in those fi elds.

WAITROSEIn 2010/11 Waitrose, which is part of John Lewis Partnership, invested £354m, mainly on 20 new stores acquired or built, three relocations and the acquisition of fi ve Channel Island stores. This added 253,000ft sq of extra selling space. Waitrose will accelerate this pace of growth aggressively in the coming three years, with a particular focus on the North, where it is understood to be spending £1bn on around 100 new stores.

TONY JACOB head of construction, environment and engineeringWhat is Waitrose building? // Core shops, convenience shops and we’re excited about growing our non-food capacity too.

What should surveyors know about the way you work? // Our growth has got to be profi table. We operate in a very tough sector where price competition is really tight, so value management has to run through all our processes. This means finding the best

IT’S NOT ABOUT ‘ECO BLING’ – WE LOOK AT WHAT IS COMMERCIALLY AND

ENVIRONMENTALLY SUSTAINABLE


Supermarkets//

02.12 // MODUS 35

property deals, making the best use of site, having tight construction economics and the most operationally effi cient stores.

What’s your energy strategy?// Our main drive is to reduce our carbon footprint in absolute terms at the same time as growing – both for environmental and economic reasons. Energy is a huge part of operational effi ciency, but it is getting more expensive and will not necessarily be available in future. If the grid fails this is a killer for retail because we need to keep so much of our stock cold. To ensure we can keep trading we’re looking at on site generation and we’re trialling this at our store in Bracknell, Berkshire, which opened in November. Burning locally sourced woodchip provides 100% of the store’s heating, cooling and electricity. Overall, the 25,000ft sq store’s carbon emissions have been cut by 80%.

How can surveyors work with Waitrose? // We are looking at our consultancy services at the moment as part of our annual business planning. While we have no fi xed plan to issue tenders, we are asking whether our current framework is giving the best bang for our buck. We are very interested in life-cycle costs and while they are talked about a lot, there is still no practical, scalable model. So anyone coming to us with solutions would be welcome. But if you don’t have retail pedigree, don’t bother coming in. You need to walk through the door understanding our pace and what we are delivering.

THE CO-OPERATIVE The Co-Operative, the UK’s fifth-largest food retailer behind the ‘big four’ (Tesco, Sainsbury’s, Morrisons and Asda), will open 300 food stores over the next three years. Construction costs range from £400,000 for fi tting out a smaller store to £8m for building a large one from scratch.

ANDREW COLES MRICS national acquisitions managerWhat’s being built? // All sizes of store, but mostly we will be fi tting out leasehold properties of between 3,000 and 4,000ft sq. Convenience stores are our key market rather than hypermarkets. We have an acquisition team of 10 spread evenly over the UK, but we are expanding in urban centres more than previously. There is a lot of space still available in cities, and we’ll be opening several stores in London and Edinburgh in 2011/12.

How important is sustainability?// The Co-Op Group’s entire estate is supplied by green energy, mostly from small-scale wind and hydro plants, and our aim is to power it solely with our own generation. Hence the Co-Op bank has allocated £1bn for investing in wind power and we have already built one wind farm [in Coldham, Cambridgeshire in 2006], with a second under way and a third planned. Our new Manchester headquarters, currently under construction, will be BREEAM Outstanding, and we are also looking at building our own biomass plant in Manchester, which would generate 10% of the group’s requirements. In our food stores, we were the fi rst to use LED lighting, in our store on London’s Strand, which opened this year. We are also refi tting stores with a ‘free heat’ refrigeration system, which uses the warmth from refrigeration to provide space heating.

How can surveyors work with you?// We use frameworks for building surveyors, project managers and quantity surveyors, and we will be going out to the market for these again soon. It is essential that we get the level of experience promised from surveyors, which means smaller fi rms can be more appropriate, because they do not pass the work down to junior employees. We are open to surveyors acting as our local agent – they need to negotiate for us, though, not just act as a post box. We are keen to be more accessible and would encourage people to contact us via our website (co-operative.coop/estates/properties/food), which has a full list of regional acquisitions managers.

How well do you pay surveyors? // We like to get the job done properly and we know that cutting fees too far risks this.

WE ARE OPEN TO SURVEYORS ACTING AS OUR LOCAL AGENT – THEY NEED TO NEGOTIATE FOR US, THOUGH

INTERESTED IN moving into the retail sector? Turn to page P46 for advice


Fit for the Future 28-29 March 2012 JW Marriott, Beijing

A grand transformation for property, land and construction 10.5

ricsasia.org/fitforthefuture

BOOK YOUR PLACE BY 20 FEBRUARY 2012 AND SAVE UP TO 300 CNY

Supporting Organisations: China Appraisal Society (CAS), China Real Estate Valuation Association (CREVA), China Institute of Real Estate Appraisers and Agents (CIREA), China Engineering Cost Association (CECA), China Electricity Council (CEC) and China Association of Engineering Consultants (CAEC)

Academic Partners: Tsinghua University, Tongji University, Chongqing University, Tianjin University of Technology and Renmin University

Speakers Include:

• His Excellency Mr Sebastian Wood, British Ambassador to the People’s Republic of China

• Douglas Brookes, Assistant Chief Economist, Asia Development Bank

• Mao Da Qing, Executive Vice President, Vanke

• Rong Ren, Managing Director and Chief Executive Officer, Harvest Capital

• Martin Ecknig, Senior Vice President, Siemens Ltd and General Manager, Siemens Real Estate

Diamond Sponsors:

102039 FFF advert_AW.indd 1 17/01/2012 14:11MODUS_Feb_p36-37_Bus+adv.indd 40 19/01/2012 16:59

How to protect

UNOCCUPIED PROPERTIES

Business advice//

The economic downturn has created a glut of vacant buildings. Empty shops are increasingly prone to theft and vandalism, which not only causes problems for landlords but also makes it harder for agents looking to attract new retailers. So what are the best steps to take to protect unoccupied properties? What implications does unoccupancy have in terms of insurance? What perils are covered and how can the risk be reduced?

The degree of risk a vacant property faces varies with the locality, neighbourhood, crime history, security, general management, length of unoccupancy and perceived attractiveness of its contents. Property owners (and those advising them) can help protect these vital assets by:

1. Advising the local fire and police services of the property’s unoccupancy so that they can keep an eye on the building. It is important to check that the property’s fi re assessment is current, too.2. Considering a security system linked to a remote monitoring station so that any

break-in can be responded to promptly. Some systems comprise sophisticated movement sensors that can detect items such as lead sheeting on roofs being stolen. Other security measures such as CCTV and security personnel on site also act as good deterrents.3. Ensuring post is redirected and any obvious build-up removed regularly. If the property appears vacant, intruders will be encouraged to break in.4. Using a risk analysis approach to the situation. For example, asking the property owner:

What are you looking to protect? Just the property or integral parts – the lead on the roof? Expensive fi replaces?

How could intruders gain entry? Could these areas be made more secure?

Are there other unoccupied buildings in the vicinity? Have they experienced problems? If so, what and how could these be prevented in your property?

What could anyone steal? Should these items be removed from the premises?

What could someone use to start a fi re? Is the property clear of all combustible materials?

What could cause injury to someone entering the building? Could the hazards be removed or the risk lessened? 5. Alerting the property’s insurer prior to the property being vacated (any change of occupancy should be advised).

Whether insurance cover is available for a vacant property depends very much on the insurer and the policy. Policies typically only cover damage by a limited number of perils, but an insurance broker may be able to negotiate wider cover. The more notice the insurer is given about the unoccupancy, the more time there is to negotiate the best possible terms for a specifi c situation. Some insurance companies impose a limited period of cover for vacant properties. Find out if this is the case, as the property owner may need another policy to maintain insurance protection when the fi rst one fi nishes.

It is also important to note the policy’s conditions and warranties, as failure to comply could invalidate the protection. Specifi c conditions/warranties for unoccupied premises typically include:

Making the property secure – check exactly how secure Removing waste and combustible materials Turning off all power, fuel and water at the mains and

draining the system – allowance should be made where sprinkler systems and/or alarms are present

Inspecting the property regularly (typically weekly).

While vacant properties pose a number of risks, that’s not to say that with careful management and discussion with their insurance provider they cannot be protected. Damage prevention comes from being proactive. Always assess the risks involved and review fully the property’s arrangements for security, fi re safety, other damage (whether insured or not) and liability to the public. Implement and monitor safety precautions to limit the risks and maintain a ‘cared for’ appearance of the premises. This means inspecting it regularly. Above all, property owners need to comply with the insurance requirements with which they are presented.

JOHN LANNING is a director of Robinson Buckley Insurance Brokers Ltd, which specialises in managing the insurance needs of property professionals. robinsonbuckley.co.uk

WHETHER INSURANCE COVER IS AVAILABLE FOR A VACANT PROPERTY DEPENDS VERY MUCH ON THE INSURER AND POLICY

02.12 // MODUS 37

Illustration by Dale Edwin Murray

Fit for the Future 28-29 March 2012 JW Marriott, Beijing

A grand transformation for property, land and construction 10.5

ricsasia.org/fitforthefuture

BOOK YOUR PLACE BY 20 FEBRUARY 2012 AND SAVE UP TO 300 CNY

Supporting Organisations: China Appraisal Society (CAS), China Real Estate Valuation Association (CREVA), China Institute of Real Estate Appraisers and Agents (CIREA), China Engineering Cost Association (CECA), China Electricity Council (CEC) and China Association of Engineering Consultants (CAEC)

Academic Partners: Tsinghua University, Tongji University, Chongqing University, Tianjin University of Technology and Renmin University

Speakers Include:

• His Excellency Mr Sebastian Wood, British Ambassador to the People’s Republic of China

• Douglas Brookes, Assistant Chief Economist, Asia Development Bank

• Mao Da Qing, Executive Vice President, Vanke

• Rong Ren, Managing Director and Chief Executive Officer, Harvest Capital

• Martin Ecknig, Senior Vice President, Siemens Ltd and General Manager, Siemens Real Estate

Diamond Sponsors:

102039 FFF advert_AW.indd 1 17/01/2012 14:11 MODUS_Feb_p36-37_Bus+adv.indd 41 19/01/2012 17:00

14 rics.org

MODUS_Feb_P38-41_Lush.v2.indd 38 19/01/2012 17:17

02.12 // MODUS 15

ush is big on environmental policy. The handmade cosmetics retailer sources ingredients that aren’t tested on animals, its

products have little or no packaging, it has policies to reduce waste and it recycles any rubbish it does produce. It even supplies heat to its Poole factory using boilers powered by woodchips sourced in the New Forest. Now, with the opening of its Bristol store, the company has completed its most environmentally friendly fit-out.

Lush has more than 600 outlets in 43 different countries, but the Cribbs Causeway store in Bristol is the first to be accredited using the new Ska Retail environmental assessment method. This low-cost tool, developed by RICS in collaboration with industry, has been introduced to reduce the environmental impact of shop, bank and restaurant fit-outs. It builds on the success of Ska Offices, launched in 2009, and in true green fashion successfully recycles some of the environmental measures from its forerunner. Other measures have been removed, however, such as the need to deal with raised flooring, which is rarely used in retail, while new retail-specific measures have been added, including the selection of furniture and signage for minimal environmental impact.

In total, Ska Retail details guidance on 115 good practice measures, covering everything from energy, water and transport to materials and wellbeing. Each is detailed in a datasheet explaining the rationale behind the measure, the criteria that need to be achieved and guidance on how to achieve them. Ska Retail applies only to those measures relevant to a specific project. According to Tim Robinson, information products group director at RICS, ‘Typically 30 to 60 measures are likely to apply to most projects.’ From a sustainability perspective some are more important than others, so they are ranked from one to 112 (one being the highest and 112 the lowest). To ensure teams don’t simply target the easiest measures, each Ska Retail project has to achieve a number of the highest-ranked measures within its scope of works. It can then be awarded bronze, silver or gold accreditation based on the percentage of measures achieved under the scope of works; 25% for bronze, 50% for silver or 75% and above for a gold.

The main advantage of Ska Retail compared to other environmental assessment systems is that it is project specific. Unlike whole building assessment systems such as BREEAM and LEED, Ska Retail does not consider the base building, which the retailer generally has no control over. ‘It’s about what you can control and influence as a design team,’ says Robinson.

Lush’s environmental officer, Ruth Andrade, is enthusiastic about the potential of the rating system. >>

FIT FOR PURPOSE

LUSH’S NEW BRISTOL STORE IS THE FIRST TO BE ASSESSED UNDER THE SKA RETAIL ENVIRONMENTAL

ASSESSMENT METHOD, SAYS ANDY PEARSON

Photography by Ed Reeve

L


40 rics.org

‘Lush has done a lot of work minimising its environmental impact, in sourcing ingredients and in the way in which we make and transport our products, so it made sense that the next big step for us was to see how far we could go in minimising the impact of fi tting out our stores,’ she says. In particular, she was impressed by the rigor demanded by the tool. ‘When we started to work with Ska I thought, “I bet this is greenwash and there’s a way to cheat and get points for things that are not really important without having to do any of the major work.” But that is not true, the measurements are really diffi cult to achieve.’

Lush worked with sustainability and carbon consultancy Dalen Strategies to develop the fi t-out for the Cribbs Causeway store. Once the previous tenant had vacated the unit, the retailer’s in-house team came up with a design based on Lush’s standard specifi cation. ‘Lush knew what it wanted in the store, what it had to change and what materials it planned to use,’ explains Nicola Ashurst, sustainability consultant at Dalen Strategies. Armed with the design, Dalen Strategies then assessed which Ska Retail measures applied to this particular project. ‘We scoped everything that was relevant to the fi t-out,’ Ashurst says.

Lush is aiming for a gold accreditation with its Bristol store. Dalen Strategies worked with the retailer to prioritise the Ska measures it needed to aim for, and set about helping source products and materials to meet the criteria. The consultant was assisted in its mission by Ska’s good practice datasheets, which were useful when it came to interrogating potential suppliers. ‘As a result of Ska, Lush changed the specifi cation of their wall lining from plywood to strawboard, they used more environmentally friendly paint, more effi cient lights and installed sub-metering to give them more information about energy use,’ says Ashurst.

Finding compliant solutions was not always straightforward, however, particularly when it came to the selection of plant. ‘There is a lot of research involved and the Ska measures don’t necessarily present solutions, especially when the product comes from the energy technology list,’ explains Andrade. Another challenge was that some of the criteria were based on the BRE Green Guide to Specifi cation, which is not product specifi c.

As well as being Lush’s fi rst Ska project, the store was the fi rst to be assessed using the new Ska Retail scheme, so there were inevitably discussions over what constituted the most sustainable solution. One particular topic was the fl oorcovering in the shop area. Lush’s standard specifi cation is for VersaFlex fl ooring, which is based on ceramic tiles laid into a rubberised grid system. ‘It allows us to replace a cracked tile easily without having to take up the fl oor,’ explains Andrade. Some aspects of the fl ooring system scored well environmentally, including the fact that it can be laid over an existing fl oor, which minimises waste, and it

‘The strength of the tool is that it makes it easier to get things approved, because the measures come under a recognised scheme put together by experts’

Ska Retail//


02.12 // MODUS 41

doesn’t require grout or adhesive, so no fumes are given off. What’s more, if Lush decides to close or relocate a store it can pick up the tiles and use them elsewhere.

‘Our tiles have a longer lifespan and don’t generate waste, and the system has been designed for demolition,’ Andrade says. However, on the downside, ceramic tiles have a relatively high embodied energy, partly because they are fi red in a kiln and partly because the majority of tiles are now manufactured in China and have to be transported to the UK. ‘I’ll be disappointed if we don’t get the points because I think we are doing something green,’ says Andrade.

Having researched all the sustainable options for its Bristol store, she expects future fi t-outs to be much more straightforward. ‘It was a big learning curve for us,’ she says. ‘That’s not meant to be a criticism of Ska – it’s because this was the fi rst proper Ska scheme we’d done and the fi rst-ever Ska Retail assessment.’ Next year Lush expects to incorporate the products selected for the Cribbs Causeway scheme into its standard specifi cation to help future projects gain Ska Retail accreditation.

One of the advantages of having a bona fi de environmental assessment scheme is that it makes it easier to communicate sustainability within the organisation and externally. ‘The strength of the tool is that it makes it easier for me to get things approved, because the measures come under a recognised scheme put together by experts,’ explains Andrade. In particular, using Ska has made it easier to talk about the cost of the fi t-out. ‘It works well for sustainable elements that cost slightly more and where there is not an immediate cost benefi t, because achieving accreditation itself can be a strong enough reward.’

Ska Retail is not simply about fi xtures and fi ttings; it is also about ensuring the fi t-out work is carried out in a

responsible manner. ‘Ska added requirements to our tender documentation for our shop fi tters to manage site waste, monitor levels of volatile organic compounds on site, and record electricity and water consumption during fi t-out,’ Andrade says. ‘We’ll be focusing on Ska this year to ensure all of the stakeholders including contractors understand what measures we need to achieve and what we have to do to achieve them and where we need to improve.’

Part of the Ska criteria is about how existing fi xtures and fi ttings are removed as part of a fi t-out. For Lush, it makes every project unique because the retailer has no control over which business occupied the store before it takes over a lease. ‘Sometimes the landlords will only let a store once it has been stripped of furniture, but in other cases we’ve been able to reuse doors and shelving and even the air-conditioning,’ Andrade explains. In Bristol, the team were lucky in that they were able to reuse the existing kitchen, cupboards, chairs and a table and storage racking. ‘We always say, “Please leave stuff” in case we want to reuse it,’ she adds.

The Cribbs Causeway store opened on 3 December. As well as being Lush’s greenest store, the event was also its 100th UK store opening, a statistic its manager Sarah celebrated by cutting into a large rose-scented Scentenary Soap ‘cake’ produced to mark the occasion. Lush is still waiting for confi rmation that it has succeeded in achieving a gold accreditation for the store. But anyone doubting the retailer’s environmental commi tment need look no further than the mall outside the store on its opening day, where Lush’s pedal-powered smoothie-maker was being put through its paces by an assistant dressed as a banana.rics.org/ska

Featuring energy-effi cient, long-life LED lighting, strawboard-lined walls, shelves made from sustainably sourced timber and fume-free paint, Lush’s Cribbs Causeway store in Bristol is its ‘greenest ever’


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01.11 // MODUS 09

INFORMATION :RICS NEWS :DIARY :BENEFITS :RESOURCES

RICS has launched a revolutionary prefabricated concrete panel-based mass housing concept for India, in partnership with Sam Circle Venture. Reducing on-site construction time by 90%, the India Concept House provides scalable quality housing delivered in just four to six weeks. The modular component system can be expanded from one to four rooms at a typical cost of INR1,000-1,200 (£12-£15) per square foot. The project was inspired by the motor industry, where vehicles were handcrafted until the introduction of assembly line production with Ford’s Model T in 1908.rics.org/india

AFFORDABLE HOMES USEFUL NUMBERSCONTACT CENTRE +44 (0)870 333 1600

General enquiriesAPC guidanceSubscriptionsPasswordsLibraryBookshop

REGULATION HELPLINE +44 (0)20 7695 1670

CONFIDENTIAL HELPLINE +44 (0)20 7334 3867

DISPUTE RESOLUTION SERVICES +44 (0)20 7334 3806

SWITCHBOARD +44 (0)20 7222 7000

THE LACK OF SUPPLY IN THE MARKET IS LIKELY TO PREVENT ANY SIGNIFICANT HOUSE PRICE DECLINES

RICS Chief Economist Simon Rubinsohn’s prediction for the UK housing market in 2012

India has a huge housing shortfall and a shortage of skilled

manpower

27m

02.12 // MODUS 43

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08 r ics.org

New CR video

FACTS, STATS & SURVEYS

RICS has announced the launch of a freely available lease to support small high street retail businesses. A sector initiative from RICS and the British Retail Consortium (BRC), the lease provides an easy-to-use contract to simplify the process for landlords and tenants.

Making the wrong decisions when negotiating a lease can have catastrophic consequences for small businesses. As part of its response to the findings of the Land and Society Commission to deliver the government’s plans for localism, RICS has worked to ensure these businesses have fairer terms in their lease. A standalone short-term contract with no rent review or break clause, it will enable stability on property costs for small businesses and start-ups. A key benefit is the flexible terms for occupiers, which will also help speed up the contract negotiation process. Other benefits include the opportunity for small businesses to present a business case with clear and stable property costs when requesting financing.

‘Businesses need to be more aware of their property decisions, which can impact negatively if made incorrectly. RICS is all too aware how challenging these economic times can be,’ said RICS spokesperson Paul Bagust. ‘We’ve listened to the views and opinions on the challenges facing small firms and sole practitioners, and worked with the BRC to produce this lease, which we hope will make a huge difference to those businesses that need it most.’

The lease will be available to download in March from rics.org/smallbusinesslease.

RICS is looking for a research fellow to serve as an ambassador for the institution. Aimed at mid-career researchers in academia, the surveying profession and the property industry, the project proposed should have international application and be related to the key objectives of RICS, namely research into valuation or sustainability issues. Tenable for 12 months from 1 July, the award will be in the sum of £25,000 or equivalent, with an additional sum of £7,500 available for dissemination of the research through a symposium. ‘The fellowship will support insightful research that can help us, as an international profession, to meet the challenges of today while planning for the future,’ said RICS President Elect 2011/12 Alan Collett. Applications close 30 March. rics.org/research

RETAIL LEASE LAUNCH

RICS news//

44 r ics.org

In the latest RICS video, Louise Brooke-Smith FRICS, RICS Vice President, and Sharon Wilson, RICS Director of Human Resources and Corporate Responsibility, outline the organisation’s approach to corporate responsibility, citing examples of recent

activity carried out through RICS’ Disaster Management Commission and the institution’s commitment to reduce its impact on the environment. The video accompanies RICS’ first responsible business report, A Vision for Sustainability,

which details the organisation’s holistic approach to corporate responsibility and sustainable development. Watch the full collection of RICS videos at youtube.com/ricsmediacentre and download the report from rics.org/sustainability.

RESEARCH FELLOWSHIP

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Overall availability of vacant floor

space continued to increase

Demand for commercial space in the capital has begun to waver for the first time in

over a year

-19more surveyors reported decreases in interest

from prospective tenants

13% +16


01.11 // MODUS 09

RICS and members who represent the institution must strike the delicate balance between fulfilling

RICS’ foremost responsibility under the Royal Charter – to act in the public interest by protecting and maintaining professional standards and ethics – with the provision of support through technical knowledge, training and other services to give members a competitive advantage in the marketplace. Striking this balance requires a huge amount of collaboration between members and staff.

When I applied for the position of Honorary Secretary, two sentences on the job description stood out for me: ensuring that members are able to contribute their professional knowledge and expertise in the most effective and efficient way through the member/staff partnership; and that our governance structure provides for the delivery of RICS’ strategy and objectives.

What is the member/staff partnership? Put simply, members, supported by staff, set the strategy, objectives and policy; and staff, supported by members, develop and implement operational plans. Effective engagement between RICS and all members – not just those who populate the committees and boards that form our governance structure – is fundamental to achieving this.

Of course, I am acutely aware that not everyone has the time or the inclination

‘We are increasing the transparency of how decisions are made by members who populate boards’Rob Mahoney RICS Honorary Secretary

to sit on an RICS board, but the channels are there for your voice to be heard. As a member of Governing Council and a regular visitor to RICS in London, I see first hand how issues raised by members generate debate within the governance structure that, in turn, influences change within RICS.

Increasingly, both members and RICS are using social media as a platform for sparking that process. A recent debate on LinkedIn has fed into a programme of work led by the UK world region board to adapt products and services for SMEs, for example. And, of course, platforms such as LinkedIn and RICS’ in-house Communities forum also provide another avenue for networking, something surveyors have always excelled at.

We are increasing the transparency of how decisions are made by members who populate RICS boards. I urge all members who have an opinion on RICS policy to make their voice heard through the governance structure that we have in place, be it through contacting representatives directly or joining discussions online (see below).

Change to RICS policy can and does occur through member input. As one member on LinkedIn put it recently, ‘I serve on RICS member groups… members are shaping the profession.’

Visit rics.org/socialmedia or rics.org/governance to get involved.

RICS has launched its first new pathway in almost 10 years. Valuation of Businesses and Intangible Assets (also known as Business Valuation or BV) is a global pathway available

across all chartered routes to membership, developed in response to market feedback and member demand.

Business valuation refers to the act or process of determining the economic

value of businesses, or pieces of businesses, both public and private, including business assets, securities and certain intangibles. The information is often used for the purposes of buying or

selling a business, litigation, taxes, financial reporting or strategic planning. The pathway was launched on 31 January and is now available across the globe. rics.org/businessvaluation

NEW BUSINESS VALUATION PATHWAY

02.12 // MODUS 45

more respondents reported rises in

incentive packages

25%Overall rental

expectations weakened further over the

quarterAvailability of

industrial space broadly stabilised

+3*Highlights from the RICS

UK Commercial Market Survey, Q4 2011. Net balance scores or percentages are calculated by

subtracting the number of respondents reporting ‘down’

from the number reporting ‘up’. rics.org/economics

-29

Insight


46 r ics.org

RICS news//

HOW DO I SPECIALISE IN RETAIL?Entry routes vary, but it’s common for those with an RICS-accredited degree or postgraduate qualification to join a graduate scheme at one of the large commercial property firms such as CBRE, DTZ or Cushman & Wakefield. During the first two years of the APC, individuals will get exposure to the different parts of the business, and so get their first taste of the retail sector. Early roles are analytical, collating market data, dealing with occupiers and landlords, and negotiating leases.

The other option is to join a retailer, developer or owner-occupier direct from university. Most large retailers such as Tesco and John Lewis have their own property departments, while Lidl, for example, sources, develops and occupies its own stores.

The retail sector has a reputation for attention to detail, so every facet of a mall, food store or high street shop needs to be well designed and carefully executed. Successful surveyors in this demanding market normally excel at attention to detail, and have a good awareness of customer needs, market trends and local variations.Johnny Dunford MRICS RICS Global Commercial Directorrics.org/commercial

RICS has published research exploring the assumptions that have underpinned the formation of business improvement districts (BIDs), the impact of the economic downturn and constraints on public and private spending, and the need to investigate their resilience as a long-term solution to the challenges of urban realm management.

BIDs were introduced in the UK in 2003/2004, and their widespread adoption has been linked to their ability to raise funds to invest in the locality through a mandatory supplementary levy on business rates, voluntary contributions, sponsorship and public

sector grants. However, the economic downturn has already restricted those sources of funding, and public sector spending cuts are likely to restrict them further.

The research investigates the impact the recession and spending cuts have had, and are still likely to have, on the way BIDs operate, and identifies the threats and opportunities to them as stakeholder-led instruments for the management of town centres and commercial and industrial areas. Key findings include:

The success of BIDs so far comes from their ability to demonstrate to levy payers that they create value and can

deliver real improvements. This holds true now as it did before. However, the harshening economic climate has intensified the need for BIDs to be accountable to levy payers and to work to an agenda of interventions with the widest possible support among them.

As expected, recession and spending cuts have negatively affected BID incomes, but so far only marginally. Levy income, the largest source of income for most BIDs, has remained relatively stable, as has local authority in-kind support. However, there has been a general reduction in the availability of public sector grants, private sponsorship and other forms of additional income. The impact of this has been varied, and more serious on those BIDs with pre-recession business plans that relied on those sources of income to deliver on key agenda items.

Download the report in full from rics.org/bid.

New research on BIDs

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‘Welcome to Value Surveyors, how can I help?’‘I need a survey, please.’ ‘Would you like a Condition Report, a

HomeBuyer Report or a building survey?’‘Um. What’s the difference?’Here’s where it gets complicated. No

matter how clear we try to be, it’s difficult to explain the difference. Personally, on a building survey I lift floorboards and obtain permission from neighbours to view parts of the building from surrounding buildings. In my experience, many corporate firms (certainly the one I used to work for) rarely take this action, and their building survey on, say, the average Victorian terrace reports little more than the cheaper alternatives; it just has more words (and perhaps more photographs). A disservice to the client? Without doubt, and not good for our image.

The formats differ, of course. The colour-coded condition rating system on the HBR is well intended and looks professional, but the client has to work it out. I remember a system introduced on the TV weather forecast – the graphics looked great, but you had to cross reference them to the map. It lasted about a week before they realised it was easier to point at the area and say, ‘It’s going to rain.’

There is a place for cheaper reports, but the differences must be clear; not just the report format, but the inspection itself. In many instances, there is no replacement for a bespoke report tailored to the client’s needs that simply tells it as it is. Many surveyors also choose from standard phrases – a dangerous route if the diagnosis is wrong. This is exacerbated by our industry’s unfortunate habit of delegating responsibility to so-called specialists with a financial interest in unnecessary destructive and costly works. But that’s another story…

Agree? Disagree? Or interested in being a secret surveyor? Email [email protected].

STANDARD SURVEYS ARE NOT ‘ONE SIZE FITS ALL’ PRODUCTS

Secret Surveyor


DISCUSSION POINTS

Is Britain’s housing really overpriced?

At some point new money has to come

from somewhere if the market is to function. If first-time buyers need

unrealistic £60k cash deposits to buy, then either financing methods need

to change or prices need to drop.EVAN OWEN-POWELL

AssocRICS

We should not abandon the idea

of home ownership, but accept the reality of the real cost of homes and look at the

financing of purchase.PHILIP LEA MRICS

Banks are to blame for the

overlending that led to this crisis, but they aren’t keeping

prices up by not lending.RICHARD STAGG MRICS

The cost of building a new house

is escalating out of proportion to its potential sales

value. Code 6 can add up to £20k on a new-build – first-time

buyers cannot afford to buy houses built to the old standards,

let alone the new. The only moveable factor is land prices,

and they must fall to compensate. When land prices do fall

then lenders will be more willing to lend.ROBERT FISHER MRICS

Search RICS on linkedin.com to join 16,000 property

professionals discussing all aspects of the

industry

16k

We need more new housing, a

period of stagnant house price growth and a dose of inflation. This

should make the situation better in the medium term. We have overspent and

borrowed for a long time, and the adjustment will take time.

ANDREW JOHNSTON MRICS

We are simply

not building enough

homes. The answer is

for the government to

let local authorities

build again. RAYMOND BURCH FRICS

GOT SOMETHING TO SAY? These comments were taken from the RICS LinkedIn group. Contribute to this discussion or start your own. And look out for more on house prices in the April issue of Modus.

02.12 // MODUS 47


08 r ics.org

Benefitsrics.org/benefitsplus

E.ON’s Business EnergyManager package comes with an easy-to-install energy monitor, specially designed software and a guide packed full of energy-saving tips to help you stop wasting and start saving. The monitor includes:

An ‘Energy Now’ display, which shows how much energy you’re using right now. Test it by switching a light off and watch the figure drop.

A ‘Cost Per Day/Month’ display which shows how much you’re spending on electricity every day and every month. It alters as you switch electrical items on and off to show how much your electricity will cost now if you continue to use this amount.

An ‘Up/Down’ display showing how much energy you’ve used between certain hours the previous day. You can

also see how much energy you’ve used in kWh during the previous day, the last seven days and the last 30 days.

A graph which shows energy in kWh used between certain hours the previous day, the last seven days and the last 30 days.

The current time and temperature.

What’s an energy monitor?An energy monitor measures the amount of electricity you’re using. You connect part of the device around your electricity cable, which sends information wirelessly to the monitor. If you programme in what you pay for energy per unit, and the date and time, the monitor displays your current usage. This helps you gauge how much appliances cost to run and what you’re spending on electricity.

Comparing energy use to make savings To build a better picture of how much energy your business uses, you need to be able to monitor it. Business EnergyManager includes easy-to-use software to install onto your PC which you can use to compare data from the monitor over periods of time, such as day/evening, weekday/weekend and also month on month.

The right tariff for you There are lots of energy tariffs available to businesses, and it’s hard to know which one is right for you. The Business EnergyManager software recognises if your usage profile doesn’t match your tariff, and a prompt will appear asking you to contact E.ON so we can help you find one that does. We also provide a downloadable guide, packed with tips on how to be more energy efficient.

If you sign up to one of E.ON’s Business Electricity Plans, as an RICS member you’ll receive the Business EnergyManager package* for free as well as £50 cashback#. You can choose from a one, two or three year plan and benefit from the security of fixed prices, protecting you from any price increases and helping your business budget better. For more information, call a specialist advisor on 0800 508 8686 or visit rics.org/eon.

*Business EnergyManager is available to customers signing up for a Fixed Price Business Electricity Plan with a meter profile class 03 or 04. Exclusions include: RHT related meters, businesses with over 20 sites and third party intermediaries. #Cashback offer is open to RICS members currently on an energy tariff with a competitor, ending within 120 days of the date you sign up to E.ON. Cashback will be credited to your first bill. Both offers are payment by Direct Debit only and subject to a credit check and availability.

Cut costs and get energy fit

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To view all the latest offers, new partners and monthly and seasonal promotions, visit rics.org/benefitsplus

48 r ics.org


01.11 // MODUS 09

Membership

My firm uses a contractor to provide

accountancy services. I know some people who work for this contractor, and they told me that the firm may be acting unethically and cutting corners when it comes to complying with their legal and regulatory duties.

Does this matter? After all, it’s not my company. And they are probably saving everyone money by doing it their way.

Yes, it matters. Depending on the

type of contractual relationship you have with them, you may be responsible for the work of your contractor. If one of your suppliers is not following the regulations and ethical standards of their profession, then there are clear risks for your firm – for how you do business, your legal and regulatory duties, and also for your reputation with clients and others. Consider how your clients or other suppliers might feel if this were made public.

Aside from these risks, being ethical means not looking the other way if you think

that someone with whom you have a working relationship is knowingly doing something wrong. You have a responsibility to the profession, your clients and the general public to express your concerns if you think the people you do business with are acting unethically. As a first step, this may involve asking your contractor to clarify their business practices and policies. If you are still concerned, it may even involve ending your relationship and reporting them to the appropriate regulatory body.

If you have a dilemma you’d like discussed here, email [email protected]. To speak to someone in confidence, call the regulation helpline on +44 (0)20 7695 1670.

OUT NOW Conflicts of interest Based on law and practice in England, Wales and Northern Ireland, this guidance note provides advice to surveyors appointed to resolve disputes or dealing with conflicts of interest and involvements. It also informs the disputing parties and others involved in the wider process as to the relevant considerations, and provides a firm foundation for the understanding of the broader subject of involvements and conflicts of interest.

Public sector asset management guidelines (2nd edition)Giving direction and assistance to those involved with public sector property asset management, as well as insight to those on the fringes of the process, these guidelines explain what is involved and the benefits that will accrue in terms of reduced operating costs, better quality accommodation, more productive staff and a satisfied customer base. The guidelines will help managers formulate a property asset management plan, deliver a portfolio of space in accordance with that plan, and track post-occupational results using performance metrics. It will also assist managers establishing a property asset management function, assessing necessary resources and structures, considering data collection and management, and designing the programme delivery process.

24 FEBRUARYRed Book (8th edition)Effective from 30 March, the new Red Book edition incorporates a number of changes to the existing standards and includes the IVSC standards in full as an annex to provide users with truly complete library of valuation standards. It will be available at rics.org/redbook on 24 February as a PDF and in hard copy on 30 March.

23 MARCHJapanese knotweedThis information paper helps residential practitioners consider the implications of a Japanese knotweed infestation on or near a dwelling when undertaking valuations and surveys of residential property in the UK. The paper describes the nature of the Japanese knotweed problem, the scale of the damage the plant can cause, and outlines the main methods of treatment.rics.org/standards

RAISING STANDARDS

DISCIPLINARY PANEL 16 NOVEMBER 2011

Richard Kolawole, BauchiSummary of finding: contrary to Rule 3 of the Rules of Conduct for Members 2007 Penalty: expulsion/costs


Heta Hanara, Peterborough

Summary of finding: contrary to Rule 3 of the Rules of Conduct for Members 2007/Contrary to Rule 9 of the Rules of Conduct for Members 2007Penalty: expulsion

Kia Kaha Contracts Ltd, PeterboroughSummary of finding: contrary to Rule 14 of the Rules of Conduct for Firms 2007

Penalty: removed from regulation/costs


J Mann FRICS, ReadingSummary of finding: contrary to Rule 8 of the Rules of Conduct for Members 2007/Rule 9 of the Rules of Conduct for Members 2007Penalty: reprimand x 2/conditions/costs

Conduct rics.org/conductcases

02.12 // MODUS 49

ETHICS OF SUPPLIERSEve Salomon Chair of the RICS Regulatory Board

The dilemma

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Modus_19012012.indd 1 1/19/2012 2:21:43 PM

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Patented permeable paving system

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RICS Modus- Quarter page Aquafow Ad-B_Aquaflow RIBA 09/09/2011 16:03 Page 1

50 r ics.org


01.11 // MODUS 09

Northern CPD ProgrammeFebruary to June, various locationsA mixture of breakfast and evening seminars, with topics including JCT contracts, Construction Act update, green leases, expert witness update and restrictive covenants.£26 + VATrics.org/northernevents

RICS Strategic Facilities Management Conference7 February, LondonA detailed analysis of the key elements of an FM strategy, plus how to add value and improve the efficiency of your organisation.£250 + VATrics.org/strategicfm2012

RICS Building Information Modelling Conference9 February, LondonExploring the adoption of BIM, its impact on workflow, practices and procedures, and how it will reshape the relationships between construction professionals.£195 + VATrics.org/bimconference

RICS London Trees and Climate Change15 February, LondonTrees and climate change – yet another consideration for professionals.£30 + VATrics.org/london

Northern CPD Days22 February, Newcastle; 7 March, ManchesterPick-and-mix CPD, with topics including landlord and tenant, Bribery Act, planning law, dilapidations, Green Deal and life-cycle costing.£125 + VATrics.org/northernevents

RICS East of England Building Defects II CPD24 February, CambridgeGeoff Hunt and Trevor Rushton on water ingress into buildings. £90 + VATrics.org/east

RICS South East Building Surveyors Briefing28 February, WinchesterThe annual CPD day will cover legal and planning update, Green Deal, part L, building conservation and key essentials.£100 + VATrics.org/southeast

Society of Construction Law Conference2 March, LeedsThe new Construction Act six months on – a review of recent developments and a perspective from those involved.£100 + VATrics.org/yorkshirehumber

RICS Flooding Conference 201215 March, LondonA half-day national conference providing insights into the developments in flooding. Hear the latest on issues relating to policy, value, insurance and mortgaging.£150 + VATrics.org/flooding2012

RICS National Building Surveying Conference 201219 April, LondonRICS’ flagship annual conference for building surveyors, offering up-to-the-minute legal and economic updates, an analysis of new Building Regulations, and sessions on dilapidations, building conservation, contract administration, neighbourly matters and the changes to planning legislation.£195 + VAT before 22 February; £220 + VAT afterrics.org/bsconf2012

WALESCommercial Property Briefing16 February, CardiffA half-day seminar examining three separate areas of commercial property: Valuation Update: What’s new in 2012; Commercial Property Rent Arrears: Prevention is better than Cure!; and What’s new in Planning?£60 + VATrics.org/events

RICS Wales Energy Conference23 February, CardiffThis half-day conference looks into the challenges and opportunities facing Wales in raising energy capacity while reducing carbon emissions. Sessions include renewable energy sources in Wales, challenges and opportunities, building regulations, changing behaviours and sustainability. £80 + VATrics.org/events

EventsRICS Asset Management and Shared Services Masterclasses 8 March, Manchester; 13 March, Birmingham; 22 March, LondonA practical, interactive guide to innovative property asset collaboration. This useful masterclass discusses how to execute the essential success measures for shared service delivery. £200 + VAT (public sector); £250 + VATrics.org/asset management2012

RICS East Midlands Renewable Energy9 March, NorthamptonFollowing a three-course hot buffet, James Beal, managing director of Renewables East, will give a keynote address on the latest renewable developments.£49.17 + VATrics.org/eastmidlands

FOR RICS EVENTS BOOKINGS AND ENQUIRIES [email protected] // +44 (0)20 7695 1600

FIT FOR THE FUTURE – A GRAND TRANSFORMATION FOR PROPERTY, LAND AND CONSTRUCTION 28-29 March, Beijing

Following RICS’ Governing Council meeting, this

international conference will cover property investment markets, affordable housing, valuation standards, infrastructure, and technology and innovation.ricsasia.org/fitforthefuture

EUROPEMIPIM – Connecting Property Professionals6-9 March, Cannes, FranceThe MIPIM property forum is a barometer not just of the global real estate sector, but also of the general economic climate. Find the most promising projects and powerful partners, gain critical industry insight and meet the world’s most influential real estate players. RICS, as a key industry partner, will have an exhibition stand and will hold a conference focusing on corporate occupiers’ changing demands and how the real estate sector can take advantage of fuse trends.rics.org/MIPIM2012

ENGLANDRICS Contract Administration SeminarsFebruary, various locationsThis half-day seminar gives an overview of contract administration, legal implications and common pitfalls, along with an introduction to the new guidance note.£150 + VATrics.org/contract admin2012


Go further with a Masters from the UK’s premier School of the Built EnvironmentFull-time, part-time and distance learning study options available. All assessment is by coursework.

Construction related Programmes:

MSc Quantity Surveying* – For aspiring new entrants

MSc Quantity Surveying (M&E)*

MSc Construction Management*

MSc Project Management in Construction*

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MSc Corporate Real Estate and Facilities Management* – Think strategically about property investment and building performance

MSc Real Estate Development* – Learn sustainable development appraisal techniques

MSc Real Estate and Property Management* – For aspiring, new, property industry entrants

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MSc Sustainable Building Design – Explore environmental sustainability and performance in relation to buildings, including the role of digital technologies

MSc Urban Design and Regeneration – Combinesexploration of Urban Design processes and community based Regeneration practice

MSc Digital Architectural Design – Learn to apply state ofthe art, Digital and Media technologies to design

MSc Accessibility and Inclusive Design – How to improvelife for all building users

MSc Building Information Modelling and Integrated Design – Explore the full potential of BIM technologies

APPLY NOW for September 2012 or January 2013 start. PgCert and PgDip options available. We welcome applications from students without formal qualifications but significant relevant experience.* Professionally accredited

For more information visit: www.sobe.salford.ac.uk

MSc in I n t e r n a t i on a lC on s t r u c t i onM a n a g e m e n tAccredited by the RICS and the JBM

A high quality flexible distance learning programme for construction professionals.

It offers:• in-depthcoverageofmodernconstructionmanagement• highqualitymodularlearningmaterials complementedbyelectronicdeliveryandsupport• residentialsintheUK,Canada,Zambia and HK• flexibleentryroutesandstudytimetables• theabilitytocontinueworkingwhilestudying• accesstoanetworkofconstructionprofessionals

Applications are welcomed from graduates and professionals in the built environment. Individual modules are also available on a free standing basis for continuing professional development.

Tel: +44 (0) 1225 383850Fax: +44 (0) 1225 383255E-mail: [email protected]: www.bath.ac.uk/ace/icm

Fordetailscontact:ICM Programme AdministratorDistance Learning UnitFaculty of Engineering and DesignUniversity of Bath, Claverton DownBath BA2 7AY, UK

Advancinglearningandknowledgeinassociationwithbusinessandindustry

Now offering a 15 month ‘acceleratedstudy route’

Department of the Built Environment

Qualifications to build a careerWe offer high quality professionally accredited programmes in a caring and friendly environment.

For further information:

Click: www.anglia.ac.uk/rics Email: [email protected] Call: 0845 271 3333

UndergraduateBSc (Hons) Building SurveyingBSc (Hons) Quantity SurveyingBSc (Hons) Real Estate Management

PostgraduateMSc Project ManagementMSc Construction ManagementMSc Sustainable ConstructionMSc Conservation of Buildings

Professional Doctorate and PhD research programmesThese can be studied full or part-time, with intakes in September and January.

These can be studied full or part-time.

52 r ics.org


01.11 // MODUS 09

EASTERN

John Daniel Callin FRICS1944-2011, Cambridge

Douglas John Ronald Dickinson AssocRICS1928-2011, Manningtree

Walter Howard Dredge MRICS1916-2010, Epping

Francis Wingate William Pemberton FRICS1916-2011, Cambridge

Ronald Read MRICS1930-2011, Chigwell

EAST MIDLANDS

Peter Anthony Beaumont FRICS1928-2011, Sleaford

Kenneth Michael Griffiths AssocRICS1937-2011, Lincoln

David Wenn FRICS1944-2011, Nottingham

LONDON

Julian Michael Birch MRICS1950-2011, Berkhamsted

Arthur John Bryant FRICS1919-2011, London

Rupert Jerome Dickinson MRICS1959-2011, London

Brian Robert Dorling MRICS1953-2011, Hounslow

Alfred John Parfitt FRICS1917-2010, London

William John Ratigan MRICS1932-2011, London

Frank Douglas Wooldridge FRICS1916-2011, Bromley

NORTH WEST

Alan Donaldson FRICS1942-2011, Southport

John David Ellis MRICS1948-2011, Southport

Edward RM Gawne FRICS1917-2011, Port St Mary

Thomas Kay MRICS1952-2011, Tarporley

Michael McCormack MRICS1939-2010, Liverpool

James Kelsall Penney FRICS1923-2008, Northwich

John Christopher Redmond FRICS1939-2011, High Peak

Peter John Saltsman FRICS1940-2010, Stalybridge

Alan Tranter MRICS1926-2011, Manchester

Philip William Webb MRICS1918-2011, Congleton

SOUTH EAST

William Stanley Allen MRICS1929-2011, Folkestone

John Ayris MRICS1920-2011, Alton

Michael Beaman FRICS1935-2011, Chalfont St Giles

Philip Gordon Bennett FRICS1956-2011, Sevenoaks

Colin Casamajor Bonsey FRICS1927-2011, Winchester

Frederick Henry Bromley MRICS1920-2011, Hythe

Dennis William Charles FRICS1916-2011, Littlehampton

David Dodd MRICS1943-2011, Hythe

John Jeffrey French MRICS1957-2011, Reading

Peter Francis Leacock MRICS1948-2011, Hove

Keith Charles Mansfield MRICS1956-2011, Hornchurch

Charles Nicholas Partridge FRICS1944-2011, Shoreham-by-sea

John Alfred Ray FRICS1922-2011, Caterham

John Harvey Shackleton MRICS1914-2011, Worthing

Sidney TC Smeeton FRICS1929-2011, Surbiton

Dixon Jeffrey Smith FRICS1916-2009, Winchester

SOUTH WEST

Mark Thomas Allen MRICS1959-2011, Swindon

David Michael Holiday MRICS1960-2011, Plymouth

ObituariesEric William Taylor Malcolm FRICS1922-2011, Gillingham

Frank Trevor Taberner FRICS1932-2011, Wimborne

James Gerald Thompson FRICS1926-2011, Wimborne

Henry Samuel Williams FRICS1931-2011, Plymouth

WEST MIDLANDS

John Constable FRICS1919-2011, Pershore

John Torcom Hammond FRICS1935-2011, Bromsgrove

Malcolm Charles Kinsey FRICS1935-2011, Walsall

John Anthony Scott MRICS1963-2011, Worcester

YORKSHIRE & HUMBER

Alan John Broomhead MRICS1948-2011, Sheffield

Frank William Newborn MRICS1921-2011, Doncaster

IRELAND

Paul Byrne FRICS1936-2011, Howth

NORTHERN IRELAND

John Samuel Brian McQuitty MRICS1942-2011, Bangor

SCOTLAND

John Bankhead MRICS1960-2011, Fife

Robert Stanley Bell MRICS1935-2011, Larbert

Andrew Newlands MRICS1916-20111, East Linton

WALES

Vivian Edward Morris FRICS1923-2011, Cardiff

AMERICAS

Peter John Finch FRICS1939-2011, Vancouver, BC

Peter Lian Huat Sim FRICS1944-2011, Burnaby, BC

Thomas John Todd MRICS1931-2011, Kamloops, BC

MENEA

Pender Ebossa Awani FRICS1939-2011, Warri

Michael Adu-Mpiani MRICS1938-2011, Accra North

02.12 // MODUS 53

Charles Partridge MBE FRICS 1944-2011

With great sadness, Lambert Smith Hampton (LSH) announced the

death of Charles Partridge, director in its Rating Division, who passed away in hospital late on Friday 2 December 2011.

Charles was a well-known, highly respected, larger-than-life character who had worked for LSH and its predecessors Herring Daw, Herring, Son & Daw and Herring Baker Harris since September 1970. During his 41-year career, Charles held a number of senior positions, and his contribution to rating consultancy and the wider business has been huge. Charles was a doyen of the rating world, and his outstanding service to the surveying industry received formal recognition when he was awarded an MBE in the 2009 New Year Honours list. The loss of Charles is a devastating blow to everybody at LSH who has had the pleasure of working with him through the years. His wealth of knowledge and experience of rating will be badly missed by LSH and the whole profession. ‘On behalf of everybody at Lambert Smith Hampton, I would like to extend our sincere condolences to Charles’ family and friends at this very sad time,’ said Ezra Nahome, CEO of LSH. ‘He will be greatly missed by his many friends and colleagues here.’lsh.co.uk


Choose the bestin the business

Best in the business

Choose the best in the business

Over 25,000 electrical contractors in the UK are NICEIC registered and annually assessed. It’s the most widely recognised accreditation and demonstrates a commitment to safety and professionalism.

0843 290 3395To find out more click or call

www.niceic.com

“ As an NICEIC electrician, you can trust me and my work.” Ben Cloke, Aqua Max Plumbing, Heating & Electrical Ltd, London

SP MOD 06.01.12.indd 1 6/12/11 10:30:49

54 r ics.org

www.cih.org your work is our business

Join us and become amember of our fast expandinglearning community at theChartered Institute of Housing

Why wait, apply today!

studyto suit your lifestyle

Distance LearningT: 024 7685 1789E: [email protected]: 024 7669 4209

Blended LearningT: 024 7685 1772E: [email protected]: 024 7642 1973

MODUS_Feb_P55-57_Classified.indd 54 19/01/2012 17:25

92,028 average net circulation 1st July 2010 – 20th June 2011 02.12 // MODUS 55

The March issue will be published on 9 MarchRecruitment booking deadline

Tuesday 7 February Recruitment copy deadline

Tuesday 14 February

This is an exciting opportunity to manage one of the largest privately owned estates in Scotland, working in close conjunction with the owner.

The estate has a wide range of enterprises with woodland, let farms and houses, in-hand farming, commercial properties, wind farms, shooting, fishing, heritage buildings, extensive gardens and tourism.

Experience of land management is essential and ideally of tourism development and other enterprises. Candidates should be energetic and enthusiastic, and able to demonstrate:

• Sound financial and operating knowledge of estate management

• People management and leadership skills

• Ability to work with experts and a range of advisors

• Responsibility for maintenance and letting of residential properties and farms

The successful candidate will have day to day responsibility for the estate, reporting to the resident owners, with assistance from outside advisors where necessary. Excellent remuneration package including a three bedroom house is on offer.

Apply in strict confidence with CV, telephone number and references to:

Earl of Stair, Stair Estates, Rephad, Stranraer, DG9 8BX e-mail: [email protected]

For informal discussion please phone 07774 116 424

STAIR ESTATES, SOUTH WEST SCOTLAND RESIDENT FACTOR

RECRUITMENTFor recruitment advertising please contact Grace Healy +44 (0)20 7871 2667 [email protected] Dorlisa Purkiss +44 (0) 20 7871 2663 [email protected]

ricsrecruit.com

TO VIEW THESE JOB DESCRIPTIONS in full and to apply online, please visit ricsrecruit.com and enter the reference number in the keyword box.

CONSTRUCTIONProject/Contracts Manager LondonNegotiable Ref: RICS0040You will be involved in all aspects of Project Management and Cost Management including procurement, cost plans and dealing with Main Contractors on the larger developments.

FINANCE AND INVESTMENTAsset Managers North West / BirminghamNegotiable Ref: RICS0041Looking for two ambitious and self-motivated individuals, suiting someone comfortable with taking ownership of both opportunities and challenges.

RESIDENTIAL VALUATION SURVEYORSMany of the industry’s leading employers have instructed us with their latest requirements. You must be MRICS, a registered valuer and experienced in residential mortgage valuations and Homebuyer reports in the locations shown.

FULL TIME PERMANENT POSITIONS. Basics, commission, car etc. Bath, Brighton, Coventry/Warks, Dumfries, London/M25 (Central, NW, West, SW, SM, KT, SE, N codes), NW Kent, Kent (TN codes), Norwich, Swansea.

ZERO HOURS EMPLOYMENT AND CONSULTANCY. Barrow/Kendal, Birmingham North, Brighton, Bournemouth, Cardiff, Cornwall, Glamorgan, Liverpool, Lancs (FY, PR, BB codes), Luton, Milton Keynes, Northampton, Peterborough/Stamford, Walsall, Wolverhampton.

Please email your CV in confidence to [email protected] Or call Jeff Johnson on 07940 594093

Register now to be kept advised of new opportunities

RESIDENTIAL VALUATION,HOMEBUYER ANDBUILDING SURVEYOR

Opportunity for contractsurveyors/consultants to joina nationwide firm of surveyors.Opportunities exist in specificpostcodes throughout England and Wales.

Please forward your CV andcontact details by email tojeff.wilson@metropolis surveyors.com

SURVEYORS WANTEDTo carry out residential/commercial,

general practice surveys and valuation work.

We’re a dynamic, rapidly growing company and require additional surveyors

to help develop South Manchester.Ideal candidate may have recently

been made redundant. Preference will be given to those who can develop an area or bring client prospects.

High commission rates and assistance with training for the right candidate.

Consideration given to recently qualified surveyors.

Please email a CV and letter to: [email protected]

now survey, a multi disciplinary firm of Chartered Surveyors, is looking for a residential surveyor to join our increasingly busy team

Chartered Valuation Surveyor, based in Hampshire, to carry out mortgage valuations, Homebuyer Surveys and Building Condition Surveys for lenders and private clients. Excellent PII record, flexibility and the ability to work to tight turnaround times necessary. Please email CVs and covering letters, including salary expectation, to Claire Butt, Partner [email protected]

MODUS_Feb_P55-57_Classified.F1.indd 55 23/01/2012 10:44

56 r ics.org

To view more jobs online visit ricsrecruit.com

Do you want to raise standards and quality in land,property and construction?

Do you want to provide leadership to the team thatquality assures these standards?

Can you think strategically about policy and influencekey decision makers and opinion formers in the UK?

RICS – UK Regulatory BoardAs your professional body, RICS provides the world’sleading professional qualification in land, property, andconstruction. In a world where more and moregovernments, banks, commercial organisations andindividuals demand greater certainty of professionalstandards and ethics, RICS status is the recognisedmark of property professionalism. This quality mark isassured by an independent regulatory function thatunderpins the highest standards of competence andintegrity among chartered surveyors and firms.

As part of a global governance strategy, a regulatoryboard is being created in the UK which will havedelegated powers to lead on UK policy and strategy.The UK Regulatory Board will report to the globalRICS Regulatory Board.

RICS Regulation follows a risk-based model of betterregulation, which focuses on outcomes, not ‘tick boxregulation’ or red tape.

We are looking for three chartered surveyors to sit onthe board. As part of this team you will work in thepublic interest to protect the public and promote betterregulation policy. You will be a strategic thinker, withoutstanding analytical ability. Through your career, youwill have gained an understanding of the UK regulatoryenvironment either through developing policy in thepublic interest or through your experience of howbusiness best operates within a regulatory framework.You will be fluent in oral and written English. While thefocus of the board is on the UK, you will be attractedby the challenge of playing a leading role in a globalorganisation.

You must be available for six to ten days a year. You willbe paid a daily allowance of £340 and expenses in linewith RICS’ expenses policy.

To request an application pack:Email: [email protected] or;

Visit our website: www.rics.org

Closing date: 10 February 2012(Please note applications received after this date willnot be accepted)

Interviews will be held on the following dates:05, 06 and 07 March 2012 at RICS,Parliament Square, London.

We pursue the appointments process according to equalopportunities principles.

Royal Institution of Chartered Surveyors

LEGAL & GENERAL

SURVEYING SERVICES

RESIDENTIAL VALUATION SURVEYORS

NORTH / NORTH EAST / EAST LONDON / 2 posts(Area of coverage: Enfield – Woodford – Stratford –

Docklands – City – Islington)

SOUTH BIRMINGHAM (Area of coverage: Solihull – Leamington Spa –

Stratford-upon Avon – Redditch)

LGSS is a leading blue-chip organisation and one of the largest distributors of residential valuation and survey work in the UK. The business is driven by a clear focus on its customers and the ongoing management of quality. The company is a respected employer with a strong reputation.

Due to growth, several rarely available opportunities now exist to join its prestige team of home-based surveyors. Candidates will have a detailed knowledge and experience of residential mortgage valuations, home buyer surveys and allied work, and be able to operate with minimum supervision. An excellent claims record is essential and you must be an RICS registered valuer.

You should reside within the areas shown above to meet lenders’ distance criteria.

Workloads will be at a busy but manageable level providing a good work/life balance. Full admin backup is provided remotely from the Barnsley office.

LGSS wants to recruit top quality surveyors and offer market leading packages. Including high basic salary, outstanding commission package, car/allowance, generous holidays and excellent pension.

PROFESSIONAL STANDARDS OFFICER/SURVEYOR

BARNSLEY

The role will include areas of quality assurance, risk management, surveyor audits, customer complaints, PI negligence claims, technical information etc. You will be RICS qualified and have a full understanding of the residential valuation distribution process and lenders’ criteria and requirements. Full understanding of both quality assurance standards and risk management processes is also required.

The position may suit an experienced residential valuation surveyor who seeks a change of routine. Basic salary and attractive benefits package is offered.

Please email your CV in confidence to: [email protected].

Or call our advisor, Jeff Johnson, on 07940 594093 for more information.

(NO DIRECT APPLICATIONS OR AGENCY INTRODUCTIONS ACCEPTED)

Please Note: For the latest vacancies with all the industry’s employers, call or email Jeff Johnson, also see our regular online advertisements at www.ricsrecruit.com.

Contact:[email protected] 594093


YES – this IS a recruitment advertisement

RESIDENTIAL SURVEYORSLandmark is an independent surveying company – forward-thinking, innovative,

highly professional, ethical and in for the long haul. We are looking for the best people in the industry to help us take our business forward – our immediate requirements are in the following

areas, but we would like to hear from you now, regardless of location in England & Wales:

GREATER LONDON (ALL) * ASHFORD (Kent) * BASINGSTOKE * BIRMINGHAM * BRISTOL * CAMBRIDGE *

CHERTSEY * DARTFORD * GRANTHAM * IPSWICH * LEEDS * LINCOLN * LIVERPOOL * MAIDENHEAD * MANCHESTER * OXFORD * PETERBOROUGH * SHEFFIELD

Experienced, fully qualified MRICS/FRICS, with a good track record, and able to undertake mortgage valuations, HomeBuyer and Building Survey reports

If this is you, and you would like to learn more about these employment opportunities,

please e-mail your CV to

Steve Hardwick BSc FRICS [email protected]

cc: Peter Bray BSc FRICS FBEng [email protected] Tel: 01293 820233

BUILDING SURVEYORWe are also seeking an experienced chartered building surveyor to play a pivotal

role in developing our new and expanding Building Surveying Division. Must be able to work on own initiative, can be Bristol or London/Surrey based

www.landmarksurveyors.co.uk

Unchanging values in a changing world


2014

2013

2012

2011

20152016

2017

UK SHOPPING CENTRE DEVELOPMENTby year of opening

5LARGEST SHOPPING CENTRES IN THE UK by gross leasable area

1 Golden

Resources Mall China

560,000m2

1 MetroCentre

Gateshead

193,000m2

251,000m2

Total new shopping

centre space in the UK

in 2011 – 177,000m2

of it in Westfi eld

Stratford City.

3 Traff ord

Centre

Manchester

167,000m2

4 Westfi eld

Merry Hill

Dudley

154,000m2

5 Westfi eld

London

Shepherd’s Bush

150,000m2

£1.6bnThe development

cost of Westfi eld

London, opened

in 2008.

2 Westfi eld

Stratford City

London

177,000m2

£1.45bnThe development

cost of Westfi eld

Stratford City,

Europe’s largest

urban centre.

2 SM City North

Philippines

482,878m2

3 SM Mall

of Asia

Philippines

390,193m2

4 Mall Taman

Anggrek

Indonesia

360,000m2

5 The

Dubai Mall UAE

350,000m2

US$785The UAE has the

highest clothing sales

per capita (2010).

1,124,000m2

The total area of The Dubai

Mall, the world’s largest

shopping centre. 1,900,000m2

The total area of shopping

centres completed in Europe in

2010, 36% down on 2009.

2,900,000m2

CBRE’s predicted total area

of European shopping centre

space by the end of 2011,

a 53% increase on 2010.

6 West

Edmonton Mall

Canada

350,000m2

SOURCES

uk.westfi eld.com,

colliers.com, wikipedia.

org, cbre.eu, atkearney.

com, icsc.org, bcsc.org.

uk, joneslanglasalle.com

7 SM Megamall

Philippines

348,056m2

8 Berjaya

Times Square

Malaysia

320,000m2

9 Beijing Mall China

320,000m2

10 Eastwood

Mall ComplexUS

297,000m2

10LARGEST SHOPPING CENTRES IN THE WORLDby gross leasable area

€1,900UK

Prime shopping centre rents (2010) per m2€1,700FRANCE €1,500RUSSIA

Proposed

Permission

Under construction

Built

m2

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

4,600,000m2

The amount of planned shopping centre development on hold in the UK,

awaiting improvements in the market and economy.

72%The increase in the overall value of

the UK’s shopping centre market,

to £3.51bn (2010).

Measure//

58 rics.org

Illustration by Ian Dutnall

SPACE RACESHOPPING CENTREDEVELOPMENT

MODUS_Feb_P58_measure_v2.indd 58 19/01/2012 17:27

the logo is intended to bleed off the top left hand corner of the page. the dots should line up withthe page edge, allow 3mm bleed and pull in the picture box to hide the dots.

PASSIONATE ABOUT THE BUILT ENVIRONMENT?We are … and we have been for 90 years. Our industry expertise allows us to provide specialist courses for property and construction professionals, by supported distance learning.

We offer diploma, undergraduate and postgraduate courses. Degree courses are awarded by the University of Reading and the Open University, and accredited by RICS, CIOB and other professional bodies.

• BSc(Hons) in Building Services Quantity Surveying, Building Surveying, Construction Management, Estate Management, Property Management and Quantity Surveying

• Diplomas in Construction Practice, Surveying Practice and Shopping Centre Management

• MBA in Real Estate and Construction Management

• MSc in Real Estate

• Postgraduate Diploma in Adjudication

• Postgraduate Diploma in Arbitration

• Postgraduate Diploma/MSc in Conservation of the Historic Environment

• Postgraduate Diploma/MSc in Facilities Management

• Postgraduate Diploma/MSc in Property Investment

• Postgraduate Diploma/MSc in Surveying (Graduate Development Programme)

• RICS Postgraduate Diploma in Project Management

To further your career call 0800 019 9697 (quoting ref. MD11), email [email protected] or visit our website.

MODUS_Feb_p59_CEM_ad.indd 3 19/01/2012 17:28

MODUS_Dec_p60 BMI Ad.indd 60 24/01/2012 13:31

Documents

RICS Modus, Global edition — February 2012