Category Archives: Business

Firm announce relocation to new city centre development

Steve Harvey, Managing Partner of Chester law firm/Wirral law firm/ regional law firm, Hillyer McKeown, has announced that the firm is to relocate its Chester Head Office this summer to Watkin Jones’ new Grade A office development at Gorse Stacks in Chester city centre, following the sale of their Murlain House Offices.

The 100 strong team will relocate to the new development at Gorse Stacks, where it will occupy 14,000 sq. ft. over 2 floors on a 25-year lease. The development which is currently being fitted out by Watkin Jones Construction, will include ‘enhanced office facilities’ and ease of access for staff and clients alike.

Steve Harvey said: “After a detailed search for the right premises for our growing team, we are now very pleased to have exchanged contracts on Gorse Stacks, which occupies an enviable position in the heart of Chester City Centre. The new office space provides the ideal setting from which to grow and further cement our future development plans. It was imperative to us that we remain in the City Centre, and Gorse Stacks provides us with an eco-friendly open plan space that will enable collaborative working across departments, enhancing our commercial offering to clients.”

Murlain House has been sold and will be redeveloped to become the new home of the University Cathedral Free School, which is set to open its doors in its new location in September.

Mark Watkin Jones, Group MD for developer, Watkin Jones, said: “Gorse Stacks is a comprehensive £40m mixed use scheme that we have developed in the heart of Chester. We have worked through several iterations to deliver an excellent scheme that we are very proud of. It includes a 48,500 square feet, multi-occupied 21st century medical facility, 42 modern city dwellings, a 350 space public under croft car park and the only new grade A office accommodation in Chester. We were aware of the lack of modern office space within Chester and attracting tenants like Hillyer McKeown re-enforces our decision to build the office block speculatively. We are confident that another significant tenant for the City will be announced shortly.”

Steve added: “We are confident that our new location and modern office base will provide an excellent platform from which to further enhance our presence in Chester and extend our profile in the City and across the wider region.”

Watkin Jones Releases Group Trading Statement for 2014

WJ Group logo

Bangor based construction and development company Watkin Jones releases Group Trading Statement for 2014.

The Group achieved a substantial growth in sales to £255m, from £138m last year. This was a significant level of turnover for the Group, originating primarily from sales in the student accommodation sector.

Whilst the underlying construction activity for the Group increased in the year, part of the sales growth came from the sale of a development completed in the previous year and from the sale of several sites that had been held by the Group for a number of years.

Profit before tax for the year was £12.5m, as compared to £5.0m last year. It is very pleasing to see the increase achieved in the Group’s profit. However, the return on sales of 4.9% must be viewed as disappointing by comparison to the Group’s historic performance. Last years report commented that the Group had suffered as a consequence of the requirement to repay its borrowings with Lloyds Banking Group and that as a result, it did not have the cash resources or funding to acquire the sites needed to maintain profitability. This impacted significantly on the prior year performance and has also effected the current year. As noted above, many of the student accommodation sales achieved were of historic sites and in some cases, these had been subject to impairment provisions to reduce them to their realisable value. As expected, the margin achieved on these sales was low.

Strategically, however, the sales achieved have enabled the Group to continue to reduce its gearing and to strengthen its cash position. For the year the Group generated an increase in cash of £19.5m to £25.9m, whilst bank loans were reduced by a further £27.5m to £15.6m. This is a dramatic improvement in the Group’s cash position compared to its highly geared level several years ago.

To read the report in full, please click here.

Watkin Jones to Unleash North Wales’ Potential

Owen Hughes Interview Image

Developer Watkin Jones wants to unleash North Wales’s potential after seeing sales revenues almost double thanks to its booming student accommodation sector.

The Bangor based builder revealed it had enjoyed a highly successful year in its Group Statement up to September 30th 2014 with sales rising to £255m, from £138m the previous year.

This is mainly credited to the firm’s continuing success in the student market but Managing Director Mark Watkin Jones says there are now housing projects in the pipeline in North Wales that will move forward in 2015. He added that there was real potential for the region and that they were working to bring operators to North Wales, particularly in the leisure sector.

Their success has seen staff numbers rise from around 250 to 320 over the last year with hopes it could break the 400 mark in 2015.

Speaking to Owen Hughes, Business Correspondent for the Daily Post, Mark said he had seen a pick-up in the local housing market.

“We are seeing those sales coming through so we will open up new sites in North Wales. We have a big site to start in Caernarfon for 136 units, the infrastructure is in on that. We bought that in 2006 and it has been on hold but now we have seen more positive signs. All in, it would be a build of around £20m which would be very good for the local economy with a lot of subcontractors also involved in that project.”

The firm also hopes to move forward a major project in Bangor.

Mark said: “We have phase two at Dickies Boatyard in Bangor. We are looking at how we develop that site, I think that part will be a quite spectacular site once we get that going. We are still working up the planning but we think it will be about 40 to 50 units.

We need to add some sort of commercial aspect to make it a destination and have walkways around the perimeter to add value and link it through to the pier. Those are the things we are looking at and through consultation trying to decide what we do to make this attractive as possible. Flood protection work for this project will only benefit the whole of Hirael, the works we have to do strengthens the whole defence work for the area. It helps and hopefully it will be seen positively.”

He said while working nationally they are always pushing the North Wales region.

Mark added: “We are looking at opportunities in North Wales for other projects, we are trying to attract businesses to come into North Wales. We need to find the operators to come in, there are great opportunities here, we just have to persuade people to come and look past the pure demographics point of view.

On demographics it doesn’t meet their business plans but what we are trying to say is that ‘there won’t be the competition’ so you do extremely well. Look at Fictoria Doc in Caernarfon which is doing well now but we had to persuade those operators to come in in the first place. It took time but when people come they realise they have cornered the market. Now firms like Premier Inn have expanded here because they have seen the business is here.

The likes of Hickory’s in Rhos on Sea have opened and can’t believe the response, the same with Dylan’s in Menai Bridge. For those brave enough to make the investment they do pretty well if they offer the right product at the right price.

In leisure I think there is a huge shortfall in facilities. When we talk to people about other projects in the UK we are always saying ‘what about here’ because it is a good market.

Everyone who sets up a good business seems to trade well, that is the message we have to get through collectively. We need the support from the local councils that we are open to business and we want people to come in. Development brings jobs and people then think ‘we could do something similar’.”

He said despite the improving situation the recovery in other parts of the UK had not fully filtered through. Mark added: “It is positive for the future but we are still to see confidence ripple in to North Wales. It will come, it is that ripple affect it will take that little longer.

Planning is still an issue, we are working with clients wanting to invest, waiting six months for planning, it is a problem and remains a problem. In towns and cities across the UK we are welcomed with this investment, councils work alongside us. It does not always happen in North Wales.”

Despite these notes of caution he remains very optimistic about 2015. They continue to be strong in the student hall market with further schemes underway across the UK – including a £60m project in London.

He said: “We are very positive about where we are as a Group, we have a huge amount of work on across the UK. We are now actively recruiting, we are up to 320 and we need more people. I would hope to reach 400 this year and for every job here there are far more jobs created with subcontractors.”