Local MSPs in listening mode to support further job creation

Derek Mackay, the new Member of the Scottish Parliament for Renfrewshire North and West and a former Leader of Renfrewshire Council, has pledged “to work hard to protect jobs and businesses so that our area can flourish”.

Mr Mackay is one of the new collection of nationalist MSPs who emerged triumphant from the May elections to give the SNP an outright majority in the Scottish Parliament.

Hillington Park, which straddles the civic boundary between Glasgow and Renfrewshire, is surrounded by several political constituencies and the recent elections accurately reflect the changed political landscape in our area.

But Mr Mackay’s constituency does not cover the eastern part of the estate, which falls within the Glasgow Pollok constituency, which was retained by Labour’s Johann Lamont.

Other MSPs who might be expected to take something more than a passing interest in the success of Scotland’s largest business location include Hugh Henry (Labour, Renfrewshire South), George Adam (SNP, Paisley) and List MSPs Jackson Carlaw (Conservative) and Patrick Harvie (Green Party).

The Hillington Herald decided to put some questions, to both Derek Mackay and Johann Lamont, about the extent of their interest in the fortunes and future of Hillington Park.

Q When did you last visit Hillington Park?
Derek Mackay: My last official visit was as Leader of Renfrewshire Council at the MEPC offices, as part of the work Hillington has led on Fairtrade initiatives.
Johann Lamont: I have visited the Hillington estate regularly over the years in my capacity as local MSP, most often to meet with individual businesses and most recently to order election material!

Q What was your impression of the estate?
Derek Mackay: In my view the estate is generally well maintained, and there is a wide range of premises with functions and activities going on.
Johann Lamont: I am aware of the estate’s importance in creating employment and delivering services.

Q What do you know about the businesses located there?
Derek Mackay: I am fairly familiar with the businesses located at Hillington, having previously been employed by companies in the Park before my election to public office. Clearly, there are a number of prominent and local businesses located there.
Johann Lamont: I have been happy to pursue issues for individual businesses and would be keen to discuss with local businesses what the challenges facing them are and to explore whether there is a role for me in highlighting their concerns.

Q What do you think are the main problems facing Hillington businesses?
Derek Mackay: Challenges ahead include facing the ongoing financial turbulence that the worldwide recession has created, and ensuring that Hillington remains an attractive destination to do business. Transport links are excellent, but car dependency remains an issue.
Johann Lamont: These businesses will have a far clearer perspective on the key issues and how they should be addressed than I. I would be more than happy to be involved in any forum or group which wished to drive these issues forward.

Q What should/will the new Scottish Government be doing to help?
Derek Mackay: The Scottish Government will continue to support business organisations in nurturing a pro-business economy, investing in infrastructure and transport, and deepening and widening skills to take advantage of the opportunities ahead. As an MSP for the area, I would hope to promote Renfrewshire and Hillington, and work hard to protect jobs and businesses so that our area can flourish. This, of course, must be done in partnership with commerce and councils.
Johann Lamont: There is a key role for the Scottish Government in supporting small businesses and in supporting businesses to create and sustain local employment. Again the expertise and understanding of local businesses need to be harnessed in making demands of the Scottish Government. If the businesses on the estate plan to come together to have their voices heard more effectively, I am happy to be involved.

So, for Hillington Park owners and occupiers alike, and for land managers and developers like MEPC, the political doors seem to be at the very least ajar.

It is already clear that it is in the private sector that jobs are being created. The case for practical government support through the remaining months and years of public expenditure cutbacks needs constantly to be made.

Contact your local MSP by e-mail: Derek.Mackay.msp@scottish.parliament.uk; Johann.Lamont.msp@scottish.parliament.uk

Offices To Rent Glasgow

Are you looking for offices to rent in the Glasgow area? Are you looking for high quality office space with the flexibility to meet your companies future needs?

If so then here on Hillington Park in Glasgow we're confident we can help you secure the accommodation you need to help you concentrate on growing your business.

MEPC prepays £74.5m of £470m CMBS in second stage of refinancing

Pro-active re-financing reduces gearing and positions MEPC for future activity.

MEPC, the developer and owner of eight Business Estates across the UK, announced today that it will prepay £74.5m of the £470m loan securitised via Opera Finance (MEPC) plc, on the next interest payment date on 20 April 2011, in advance of maturity in July 2012. This follows the first stage prepayment of £102.5m in January 2011. The CMBS, completed in November 2005 and arranged by Eurohypo AG, was secured against four of MEPC’s Business Estates - Milton Park in Oxfordshire, Birchwood Park in Warrington, Chineham Park in Basingstoke and Hillington Park in Glasgow.

This prepayment, which follows the Birchwood refinancing in January, is the second stage of a wider financing strategy to address the early repayment of the securitised loan before its maturity in July 2012.

As a consequence of this prepayment, Hillington Park will be released from the securitisation. MEPC will use a combination of cash from recent disposals and equity, alongside a new five year facility of £53.6m from Eurohypo.

As a result of the prepayment, the CMBS loan outstanding reduces to £293m, secured against Milton Park and Chineham Park and the interest cover on the remaining debt will increase to 230%.

Rick de Blaby, Chief Executive of MEPC, said ‘This early repayment of part of MEPC’s CMBS Notes marks a second stage in our programme to address the refinancing of our portfolio ahead of maturity after the successful repayment of £102.5m in January. The new loan, again with Eurohypo, whose long term relationship we hugely value, reduces gearing and brings in further diversity to our overall debt position. It also underlines MEPC’s prudent debt strategy, the robustness of its income from quality assets and our overall desire to be positioned well for a new phase of activity and performance.’

Michael Acratopulo, Head of Origination at Eurohypo commented, ‘Following on from the success of the Birchwood Park refinancing we are pleased to have once again assisted MEPC in their funding strategy by providing a further facility for Hillington Park. We are delighted to be broadening our relationship with MEPC.’

Caroline Philips, Head of Structured Debt at Eurohypo observed, ‘MEPC’s continued pro-active management of their debt marks another important step in the refinancing of the Opera MEPC CMBS issue.’

More Trees More Good

The Woodlands Trust donated 30 small saplings which have been planted on one of the Estate biodiversity sites by pupils with additional support needs who attend a nearby secondary school.

The afternoon began with a visit to the local Burger King; this was followed by a brief training session provided by the Estates landscape gardeners. Pupils, wielding an assortment of trowels and rakes, planted all the trees in record time, closely watched by their proud teachers. A great afternoon was had by all.

If you would like some more information about this initiative you can visit the Woodland trust website at http://www.woodlandtrust.org.uk/

Waking up to new opportunities

Archers Sleepcentre have agreed terms with MEPC Hillington Park on a 10 year lease of a prominent location on Hillington Road for a new showroom, along with two other storage units elsewhere on the estate.

The expanding multi-outlet Scottish-based bedroom furnishing company, founded in 2001, was attracted to the opportunity and showroom potential of the premises at 442 Hillington Road, which was previously occupied by Auto Windscreens.

In addition to the 8,500 square feet of showroom space, Archers Sleepcentre are leasing a further 12,700 square feet of storage space at two units in Colquhoun Avenue. The storage units are the subject of three-year lease agreements.

Andrew Kerr, the MEPC Asset Manager at Hillington Park, said: “The premises at 442 Hillington Road were only vacated by the previous occupier on 1 February 2011 and, from the outset, we have worked closely with Archers Sleepcentre to get the property back into good lettable condition and to meet their requirement for entry by mid March. We are delighted to have achieved this and now to have Archers Sleepcentre’s presence at Hillington Park in what is widely recognised as one of Glasgow’s premier business locations.”

Ian Archibald, the Managing Director of Archers Sleepcentre, added: “MEPC have been completely understanding of our requirements, and we are delighted to be able to open our tenth Scottish showroom in such a visible location at Hillington in a very short timescale”

The quick turnaround and flexibility of approach re-emphasises the ability of MEPC’s management at Hillington Park to maintain an exceptionally low rate of void space, even in the prevailing economic environment.

James Barr & Son acted on behalf of the MEPC.

Exova makes an expansive move to Hillington Park

A multi-national Scottish environmental testing, advisory and consultancy company is about to move its entire staff from Clydebank to Hillington Park, demonstrating how a global investment perspective can be the key to continuing growth at a time of economic worries.

Exova Ltd have taken a 10-year lease on a modern unit of 20,818 square feet in Montrose Avenue, completed just three years ago, after Alpha Analytical, the company that originally occupied the premises, ceased trading.

The terms of the deal involve a stepped rental rising to £5.75 per square foot. Exova received significant incentives to reflect their taking on the unit in its existing condition, since they can re-use much of Alpha Analytical’s laboratory, office and storage fit-out.

Exova, which has 110 laboratories in 24 countries, began life 30 years ago at Newbridge, West Lothian, where they still have their office headquarters. But the move to Hillington will make this one of their most important centres of activity.

So delighted are they by the quality of the building and its fittings that they immediately decided to move all 33 of their staff from their current Clydebank premises, and are laying plans for significant expansion over the next few years.

Douglas Weir, the site's general manager, said: "The staff have already visited Hillington and are greatly excited at the prospect of the move, which will take place before the end of March."

"What interested me most was the fact that 40% of the floor space in the building was still void, and would accommodate our expansion ambitions," said Mr Weir. "We plan ultimately to fill the space with additional services, and generate growth for the community. We expect to increase our staff at Hillington by around a third over the next 24 months."

Grant Edmondson, managing director of landlords MEPC Hillington Park, said: "We’re delighted to have attracted a market-leading multi-national company like Exova to Hillington Park.

"We faced a major problem when Alpha Analytical entered liquidation, leaving a large unit with a huge amount of specialist fit-out. But Exova saw the opportunity to expand their operations in the Glasgow area, and we were able to agree a deal which suited both parties."

In 2010, MEPC's operation at Hillington Park managed a remarkably sustained level of business in what has generally been reckoned to be a difficult market. "We concluded 41 new lettings totalling 107,000 sq ft, with a rental value of £639,000," said Mr Edmondson.

"Against that, we had 47 units totalling 126,000 sq ft being vacated through the year as a result of expiries, consolidations and, in particular, insolvencies. So void stock at Hillington has hardly changed, amounting to 5% by area by the year's end."

MEPC reports on a positive 2010

2010 proved to be an encouraging year for MEPC’s leasing results with 213 leasing deals generating £2.2m pa of net additional income, with a strong lettings performance at both Hilllington Park and Milton Park.

Portfolio wide vacancy rates fell below 10% which is a ‘first’ in five years. Customer retention rates at lease breaks/expiries is still amongst the best in the industry at 86%.

MEPC confirmed plans to prepay £102m of the £470m loan securitised via Opera Finance (MEPC) plc in early 2011. Rick de Blaby, Chief Executive comments ‘MEPC is now positioned for a new and exciting phase of activity and performance in 2011 where we will continue to focus on driving revenue and maintaining customer focus to deliver investment performance’.