2012 report - Thomson Snell and Passmore

2012 KENT PROPERTY MARKET
THE ANNUAL GUIDE TO INVESTMENT & DEVELOPMENT IN KENT

CONTENTS
1 Welcome
2 Property market
5 Economy
6 Business park performance
8 Office performance
10 Industrial and distribution performance
12 Retail performance
14 Leisure and tourism performance
16 Rural performance
18 Residential performance
20 Inward investment
22 Regeneration
29 Green infrastructure
30 Contributors
32 Strategic developments
35 Contact details
36 Acknowledgements
Hermitage Court, Maidstone (credit Gallagher Group)
KENT PROPERTY MARKET 2012

WELCOME
Kent History and Library Centre, Maidstone
Kent Institute of Medicine & Surgery, Maidstone
Welcome to the 21st edition of the Kent Property Market
Report, produced by Kent County Council’s Regeneration
& Economic Development division, Cluttons LLP and
Locate in Kent.
The report reviews activity and major property deals
throughout 2011-12, showing that despite the office and
retail sectors struggling, the retail warehouse sector showed
a positive rental growth in 2011 and the industrial market
outperformed both the south east and national average.
The report also looks in detail at the rural, retail, tourism
and residential sectors’ performance.
The economy section reports that although Kent tracks
the performance of the national economy, the county is an
increasingly favourable business location, benefiting from
concerted efforts to attract new investment and support
commercial growth through the Enterprise Zone at
Discovery Park and the £35m Expansion East Kent
Regional Growth Fund and soon to be launched
‘Grow for it!’ East Kent campaign.
The regeneration section features current and planned
developments across Kent and Medway, focusing
particularly on the growth areas of Thames Gateway
North Kent and Ashford and also regeneration projects
in the coastal towns.
The strategic developments pages feature key commercial
sites and developments throughout Kent, as well as
providing useful contact details and location map.
The full report and all previous 20 reports can be accessed
via an interactive website www.kentpropertymarket.com.
If you would like further information on any of the
developments or projects featured please do not hesitate
to contact us. For contact details please see page 35.
Cluttons is an independent, professional firm of chartered
surveyors delivering a wide range of commercial and residential
property services including professional and valuation advice,
property management, agency and development advice,
rating, and project and building consultancy.
Kent County Council’s Regeneration & Economic
Development division is responsible for working with
the public, private and voluntary sectors to support
Kent’s economic growth by encouraging and supporting
businesses; working closely with specific sectors to promote
growth and finding new ways of funding business critical
infrastructure and unlocking key sites.
Locate in Kent provides a comprehensive, confidential and
free business relocation and advisory service for all companies
looking to relocate to, or expand in Kent and Medway.
We hope you find the report useful and informative.
Mark Dance
Cabinet Member for Regeneration and
Economic Development, Kent County Council
John Wood
Managing Partner, Cluttons LLP
Paul Wookey
Chief Executive, Locate in Kent Ltd
The Foundry, Faversham (credit Quinn Estates)
1

PROPERTY MARKET
UK Property Market
The UK property market backtracked in 2011 delivering a
total return of 7.7%, half of that recorded in 2010. Despite
this, net investment was 5% ahead of that seen in 2010,
with activity expected to remain consistent throughout 2012.
However, while the property sector continues to attract
strong interest in London, particularly from overseas buyers,
regional markets remain cautious, with the limited activity
that does occur coming from well-capitalised property
companies and institutional investors.
Bad debt portfolios amongst the banks are gradually
being released with expectation that supply will increase
over the coming year. Nevertheless, with the exception
of a limited number of prime markets outside the capital,
demand is expected to remain muted until pricing catches
up with the realities of the occupier market in which rents
are forecast to fall across most property market sub-sectors.
This readjustment is anticipated during the remainder of
2012 and into 2013, with the average All Property yield
expected to rise. This in turn will dent total returns which
are expected to barely reach positive territory in 2012.
Kent Property Market
The Kent office sector recorded a further fall in average
rents in 2011 of -5.3%, following a -1.2% dip in 2010. The
weakness in the occupational market is mirrored across the
south east, although the pace of decline at the regional level
has slowed. The county’s fragile occupier environment was
reflected in an outward 20 basis point yield movement in
2011 to 10%; a somewhat less robust picture than the
south east as a whole.
Deteriorating consumer confidence and rising vacancy rates
on the high streets are taking their toll on the performance of
the Kent retail sector. Rents fell by -1.8% in 2011, although
this is a sharp improvement on the -6.5% recorded in 2010.
Despite this, retail yields in the county shortened by 10 basis
points over the year to 6.3%, reflecting the regional and
national trend.
The Kent retail warehouse sector fared better in 2011,
with positive rental growth of 1.2%. This follows its above
average growth of 1.0% in 2010 while rents were still falling
at a regional level. A 10 basis point decline in the county’s
average retail warehouse yield to 6.3% in 2011 is in line with
the regional average, with pricing at a similar level to that of
the UK as a whole.
The Kent industrial market performed relatively well in 2011,
with the pace of rental decline slowing to -0.6% from -0.9%
in 2010. The county continues to outperform both the south
east and national average. Despite this, yields remained
stable at 8.1%, failing to experience the inward movement
seen across the region and rest of the UK.
Investment yields
UK property total returns
10
8
Equities Gilts Property
25
20
15
All property Retail Office Industrial
Forecast
% Change a year
6
4
2
% p.a.
10
5
0
-5
-10
2007
2008
2009
2010
2011
2012
2013
2014
0
-15
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
-20
-25
Odiam Farm, ??
Boat Yard, Tovil
Source: Cluttons LLP/IPD/FT
Source: IPD
2
KENT PROPERTY MARKET 2012

Proposed Cheriton Road Sports Ground, Folkestone
3

St Georges Place, Canterbury
4
KENT PROPERTY MARKET 2012

ECONOMY
Global economic outlook
The world has yet to see a sustained recovery from the
2008 crisis. Growth in the Eurozone has remained flat
over the past year, with persistent sovereign debt crises in
Europe’s southern periphery reducing investor confidence.
While the performance of emerging markets remains
stronger, a slowdown in China’s growth reflects weak global
consumer demand.
Looking ahead, most forecasters anticipate growth
in Europe and the United States will remain very fragile
in 2012, with below-trend growth sustained into 2013.
Competitiveness indicators
UK economic outlook
Growth in the Eurozone – Britain’s largest trading partner
– is key to the future performance of the UK economy.
However, reflecting international difficulties, further
contraction of -0.2% is expected in 2012, with a return
to growth of 1.3% anticipated in 2013. Whilst sustained
growth remains a national priority, the government’s ability
to increase output remains constrained by continued
pressure to reduce public debt.
Despite this challenging outlook, Britain is increasingly seen
as a safe haven for investment, retaining a AAA credit rating
and a relatively attractive tax and regulatory environment.
Interest rates remain at historically low levels, the inflation
rate is stable at around 2.6% and unemployment is below
the levels of previous economic downturns and the Euro
area average.
Indicators Kent UK Source Date
Gross value added (GVA) per head (£) £16,641 £20,341 2009
Gross median weekly resident earnings (£) £543.90 £503.10 2011
Gross median weekly workplace earnings (£) £491.10 £502.60 2011
Gross disposable household income (£) £16,192 £15,727 2010
NVQ 4 or above (%) - working age* 30.0% 31.3% 2010
Employee change since 2008 (%)* -2.0% -3.4% 2010
% Employees in the knowledge economy 14.3% 18.4% 2010
Annual average unemployment rate (%) 3.2% 3.8% 2011
Kent economic outlook
Kent generally tracks the performance of the national
economy. GDP growth forecasts are therefore likely to reflect
how the UK fares in 2012/13, with limited growth ahead.
However, Kent is an increasingly favourable business
location, benefiting from concerted efforts to attract new
investment and support commercial growth. Discovery
Park at Sandwich has been designated as an Enterprise
Zone focused on attracting R&D investment – and has
been successful in retaining or attracting about 1,000 jobs.
Across East Kent, a £35m programme of financial support
to businesses with the appetite for investment and growth
has been launched, with the aim of attracting both inward
and indigenous investors (see page 28). The county has
major strengths in sectors likely to grow in the next few
years, especially in low carbon and environmental goods
and services, life sciences, advanced manufacturing, the
land-based economy and creative and digital industries.
In addition, Kent is benefitting from major infrastructure
investment made in recent years. Services between
Ashford, North Kent, East Kent and London on High
Speed One have drastically reduced journey times and are
set to improve further, increasing the county’s long-term
attractiveness as a business location. Although economic
conditions remain difficult, development plans for Kent’s
regeneration and growth areas in the Thames Gateway,
Ashford and the coastal and principal towns are advancing,
opening up some of the most significant investment
opportunities in the south east.
New businesses as a % of stock* 9.7% 10.0% 2010
Business survival rates after 3 years (%)* 63.8% 63.0% 2010
Figures include Medway, apart from those marked * which are for the KCC area only.
Source: Compiled by Research and Evaluation, Kent County Council, July 2012
Growth projections are taken from the Economist Poll of Forecasters, August 2012 averages.
5

BUSINESS PARK PERFORMANCE
Increased occupancy rates for south eastern business parks
witnessed during the first half of 2011 continued into the
latter quarters with a minor surge in activity. However, this
has not been sustained throughout 2012 where transaction
levels have been subdued. Availability remains stable
following the slight rise in early 2011, with levels continuing
to be limited by very little new stock coming to the market.
Kent therefore continues to perform well in light of the fact that
negative rental growth persists nationwide. The Investment
Property Databank (IPD) index reports that rental values are
down -1.9% year on year across the UK, however the rate
of decline appears to be slowing following the -3.1% year
on year fall seen from 2010-2011.
Kings Hill has had another year of steady lettings with six
office transactions completing, totalling 6,022m² (65,000ft²).
The largest deal was to Russet Homes, provider of affordable
homes and sister company Invicta Telecare, at 32 Tower
View, where over 1,635m² (17,600ft²) has been let on a
ten year lease. Vaillant Ltd, established its new centre
of excellence and training facility at 6 Alexander Grove
occupying 1,069m² (11,500ft²) and Rail Europe has taken
900m² (9,688ft²) at 34 Tower View. Rents here, as throughout
much of the county, remained static, with the average
dropping 1.6% year on year to an average of £231 per m²
(£21.50 per ft²). Lease incentives have started to soften a
little as landlords aim to fill voids.
Elsewhere Merrits Properties Ltd has let 1,618m² (17,407ft²)
at Ashford’s Eureka Park to Wooden Spoon Preserving
Company on a 6 year lease, while at Chatham Maritime,
Wichford Chatham Ltd has let 665m² (7,158ft²) to the
Department of Communities and Local Government (DCLG).
Agents on Crossways, Dartford continue to report
encouraging volumes of enquiries and viewings; that said,
the office buildings are still proving more challenging to let
than the industrial premises.
Poor economic sentiment continues to limit construction,
a notable exception coming at the Kent Science Park (KSP)
near Sittingbourne. Following on from the success of KSP’s
Tech1 which completed in 2008, KSP’s Tech 2 completed
this year to provide two units measuring 1,395m² (15,000ft²)
and 2,325m² (25,000ft²), the former being placed under offer
in February.
As an alternative, cost effective refurbishments are taking
preference and are undertaken as premises become vacant.
KSP witnessed 1,023m² (11,000ft²) refitted for GoResponse
earlier in the year, and to the west Liberty Property Trust UK
has refurbished 32 Tower View. Liberty is also refurbishing
the art deco Control Tower with iconic offices located above
retail and a community space at ground floor level.
At Chatham Maritime, planning was agreed in May 2012
for the £650m mixed use Chatham Waters scheme over
10.5 ha (26 acres). Plans include 176,515m² (1.9m ft²) of
offices, a conference centre, hotel, around 900 homes and a
supermarket. At Eclipse Park, Maidstone, increased interest
has been reported in early 2012 and planning is in place for
four buildings totalling 10,219m² (110,000ft²).
Investment demand for prime stock has been hit hard by
the frailty of the economy. Transactions have dwindled to
the lowest levels seen since Q1 2009. Yields tightened
throughout 2011, falling 0.25 basis points and remain at 6%
during 2012, but the gap between new and secondary stock
has continued to widen. The long leasehold at Gillingham
Business Park was sold in early 2012 for a reported
£32.25m to Threadneedle Property Investments reflecting
net initial yield of 8.6%. The biggest news story this year was
the sale of the former Pfizer site, Discovery Park, comprising
circa 278,800m² (3m ft²) to a private consortium – Discovery
Park Ltd. The site, which has Enterprise Zone status, is now
home to around 1,000 scientists and other staff bolstered by
a handful of recent lettings.
Business park rents
£/m 2
350
300
250
200
150
100
50
0
Stockley Park,
Heathrow
2008-09
Arlington Business Park,
Reading
Chineham Business Park,
Basingstoke
Kings Hill,
West Malling
Crossways Point, Crossways, Dartford
2009-10 2010-11 2011-12
Crossways,
Dartford
Chatham Maritime,
Chatham
Eureka Park,
Ashford
Source: Cluttons LLP
6
KENT PROPERTY MARKET 2012

Lettings
Location Landlord Tenant Size ft 2 Rent (pa) Lease Term Agent
6 Alexander Grove, Kings Hill Kings Hill Unit Trust Vaillant Ltd 11,575 Confidential 10 year
Altus Edwin Hill, Hanover Green,
Knight Frank
200 Eureka Park, Ashford Quadrant Estates Rift Ltd 10,161 £193,000 15 year Martine Waghorn
34 Tower View, Kings Hill Kings Hill Unit Trust Rail Europe 9,688 Confidential 10 year with break at year 5
Watson Day, Altus Edwin Hill,
Hanover Green, Knight Frank
2nd Floor The Observatory, Chatham Maritime Wichford Chatham Ltd DCLG 7,158 £112,738 10 year with break at year 5 Watson Day
Blake House, Schooner Court, Crossways,
Dartford
c/o Kenningtons Lakeview Computers 5,994 £107,892 10 year with break at year 5 Caxtons, Kenningtons
1 Waterside Court, Crossways, Dartford Frogmore MBRSS Ltd 2,293 £35,000 3 year Altus Edwin Hill
Sales
Location Vendor Purchaser Size ft 2 Tenant Price Income Yield Agent
23 Kings Hill Avenue, Kings Hill Develica Private Investor 14,857 Vertex Law LLP Confidential £335,788 Confidential
Watson Day, Bracketts,
Lawson and Partners
32 Tower View, Kings Hill (credit Liberty Property Trust) Unit H, Hermitage Court, Maidstone (credit Gallagher Group) Kent Science Park, Sittingbourne
7

OFFICE PERFORMANCE
Despite a minor improvement in occupier demand in the
south east region over the past 12 months, demand within the
county has been very subdued. The over supply of secondary
stock in the majority of key commercial locations has resulted
in rental levels dropping by 2% to an average of £135 per m²
(£12.54 per ft²) from the £138 per m² (£12.82 per ft²) seen
last year. Rental growth remains negative at -5.7%, the lowest
for 17 years, but is still above the south eastern average of
-6.5%, released by Investment Property Databank (IPD) index.
The polarisation of demand between the west and the
east of the county remains, with the majority of significant
deals limited to established business locations. Turkey Mill,
Maidstone has seen occupancy rates reach 95% with over 14
deals in the last 12 months, with new lettings and relocations
comprising 20% of the business park’s 9,290m² (100,000ft²).
Following this continuing success, Turkey Mill Investments has
planning permission to build a further 1,375m² (14,800ft²)
Lettings
detached building. Designed by Kent based award winning
architects, Guy Hollaway, Paul Sandby Court will provide a
combination of up to eight Grade A individual office suites set
around a feature man-made ‘babbling brook’ water course.
Elsewhere, construction of two new speculative offices, one
of only a handful this year, at Gallagher’s Hermitage Court,
Maidstone are due to be completed at the end of 2012.
A pre-let has already been agreed on the 492m² (5,300ft²)
Unit H to a single international occupier for a 10 year term
at £204.50 per m² (£19 per ft²); with Unit G-483m² (5,200ft²)
also part let. In Sevenoaks, a letting at BT’s 160 London
Road to Siemens saw 888m² (9,558ft²) taken at a rent of
£167,256pa on a 10 year lease. This letting represents some
retained demand for larger transactions, albeit one of a
minority to take place this year.
To the east of the county, at Cantium Development’s
Watermark, Sittingbourne, only a single unit remains.
However, in the wake of waning occupier demand planning
permission has been secured for the change of use of the
remainder of the site to 300 residential units.
Whilst the lettings market remains subdued, investment has
seen a slight resurgence in some key towns. In Canterbury,
1,394m² (15,000ft²) of space at Beer Cart Lane and Stour
Street is under offer following a change in marketing strategy
from leasehold to freehold 12 months prior. Elsewhere, to the
south of the town, the former Adscene premises, News Paper
House, has sold to a church group.
A flurry of investment deals in the south east has resulted
in yields stabilising at 6%. However, within Kent the lack of
quality supply has continued to result in a limited number of
investment deals completing, with availability predominantly
made up of secondary and tertiary stock. This is of limited
interest to investors and subsequently yields continue to rise.
The multi-let, 1,227m² (13,210ft²) Orchard House, Canterbury
sold at the beginning of the year for £1.3m, representing a net
initial yield of 10.1%.
Location Landlord Tenant Size ft 2 Rent (pa) Lease Term Agent
2nd Floor, 160 London Road, Sevenoaks BT Siemens 9,558 £167,265 10 year with break at year 5 Altus Edwin Hill
Longford House, Mount Ephraim Road,
Tunbridge Wells
Sion Holdings Ltd Focus Vision 4,365 £69,840 5 year with break at year 3 Durlings
25-26 Turkey Court, Turkey Mill, Maidstone Turkey Mill Investments PFPR Communications 3,984 £77,000 10 year with break at year 5
Watson Day
Martine Waghorn
4th Floor Joynes House, New Road,
Gravesend
c/o Cedar Harp Klarity Vision 3,715 £23,776 10 year with break at year 5 Caxtons
23-24 Turkey Court, Turkey Mill, Maidstone Turkey Mill Investments Kent Music 2,636 £42,500 10 year
Watson Day
Martine Waghorn
LGF Enterprise House, Essex Road, Dartford Texcel Developments Pilgrim Petcare 2,500 £32,500 15 year Glenny LLP
1st Floor Kestrel House, Knightrider Street,
Maidstone
Milroy Developments
Liverpool Victoria
Friendly Society
2,116 £35,972 10 year with break at year 5 Altus Edwin Hill
8
KENT PROPERTY MARKET 2012

Sales
Location Vendor Purchaser Size ft² Tenant Price Income Yield Agent
Orchard House, Orchard Street, Canterbury
Merchant Navy
Pension Fund
Private individual 13,210
Various including Pitman Training,
Zibrant Ltd, Co-Op Insurance
Services
£1.3m £138,810 10.1% BTF Partnership
Clockhouse Court, Bessels Green, Sevenoaks
Ascom Plc /
Nutbury Ltd
Bishops UK Ltd 7,137 Vacant £1.7m - - Durlings
The Old School House, Tonbridge Private investor Private individual 2,500 Vacant £520,000 - -
Broadlands Commercial
Property Agents LLP
1 Craddock Road, Canterbury
Chaucer Homecare
Ltd
Private company 1,650 Vacant £285,000 - - Caxtons
Office rents Office rental growth Office average yields
300
2008-09
2009-10 2010-11 2011-12
15
Kent UK South East
12
Kent UK South East
250
10
11
£/m 2
200
150
100
% Change a year
5
0
-5
% Yield
10
9
8
7
50
-10
6
0
Ashford
Canterbury
Dartford
Dover
Folkestone
Gravesend
Maidstone
Medway
Sevenoaks
Sittingbourne
T.Wells
Tonbridge
Thanet
Source: Cluttons LLP
-15
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Source: IPD
5
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Source: IPD
9

INDUSTRIAL AND DISTRIBUTION PERFORMANCE
The UK manufacturing sector has struggled in 2012. A sharp
deterioration in operating conditions, due predominately
to the ongoing weakness of the Eurozone, has resulted in
poor performance in the industrial property sector which is
set to worsen in 2012. In Kent demand remains muted but
stable, although North Kent, traditionally one of the county’s
hotspots, has seen depleted requirements this year.
Reflecting the market backdrop, industrial rents in Kent
have fallen slightly. Although the pace of decline has slowed,
incentives have softened considerably, with lettings on some
schemes at their slowest for two years. Capital values have
also experienced further marginal reductions, with occupiers
proving cost sensitive. That said, demand for good freehold
premises persists where finance is available.
In the warehousing sector, demand from distributors has also
softened, although supply of suitable space remains limited.
Agents across the county report an increase in enquiries from
occupiers seeking under 465m² (5,000ft²) which accounts for
nearly 50% of all requirements, while enquiries for over 1,858m²
(20,000ft²) stand at 17%. This is illustrated by Euro Car Parts,
Lettings
which has chosen a unit at Quarry Wood Estate, Aylesford
as a store and regional distribution centre for the south east.
Meanwhile, all the units at Eurocentre, Faversham, built by
George Wilson Holdings Ltd, are let or sold, the majority of
which are under 465m² (5,000ft²).
Industrial investments remain popular, although opportunities
in the county are limited. On behalf of clients, Cluttons
purchased Unit 11 Newtons Court at Crossways, Dartford.
The property let to Post Office Ltd reflected an initial return
to the client of 8%, while 20 units forming the Botany Trading
Estate, Tonbridge were sold to the Electricity Supply Pension
Fund for £10.46m, reflecting net initial yield of 7.5%.
Land values have held firm over the past 12 months.
Salmon Properties has sold one of the last plots of land
(0.61 ha /1.5 acres) at Orbital Park, Ashford to SE Ambulance
for £675,000 for a 3,066m² (33,000ft²) unit which has now
completed. B&T Plant Hire purchased 0.9 ha (1.27 acres)
on the Kent Kraft Estate, Northfleet for £1.12m per ha
(£452,000 per acre). Goodman who purchased 5 ha (12.3
acres) last year has sold 2.1 ha (5.19 acres) to Stapleford
Commercial for an undisclosed sum. These transactions
reflect the fact that most land purchases are completed by
end users rather than to speculative developers. That said,
Gallagher’s will start enabling construction on a 3,530m²
(38,000ft²) development at Brooklyn Park adjacent to
Jct6 M20 in December 2012. With 9m eaves and 24 hour
access, interest is already reported. Meanwhile, at the first
phase of Quinn Estates’ Deal Business Park where units
start from 90m² (968ft²), MKM building supplies has leased
1,115m² (12,000ft²) whilst at The Foundry Business Park in
Faversham, Units 9-12 (697m² / 7,500ft²) were sold to the
international design company, Blue Ant.
Larger buildings are now being divided where land for
new build development is scarce. George Wilson Holdings
Ltd bought a 5,110m² (55,000ft²) unit from receivers at
Lakesview, near Canterbury, selling 2,601m² (28,000ft²)
to an owner occupier with the remainder sub divided and
refurbished into three units. Also on the estate 2,090m²
(22,500ft²) has been sold to Sealy Bed Ltd. Although the unit
has a footprint of only 697m² (7,500ft²), two extra floors with
a lift have been constructed.
Location Landlord Tenant Size ft 2 Rent (pa) Lease Term Agent
Unit 17-19 Botany Trading Estate, Sovereign Way, Tonbridge Private company John Newton & Co. Ltd 20,272 £115,000
Unit 5 Interchange, Wested Lane, Swanley CBRE Global Investors Selecta 17,000 £119,000
6 Stirling Park, Rochester
Industrial Property
Investment Fund
Inflate Ltd 11,444 £71,600
2a Longfield Road, Tunbridge Wells COIF Charities Property Fund Fox Print Services Ltd 9,300 £58,600 3.5 year
4 Wyvern Way, Ashford Verve Properties Sheffield Insulation Group
11 Lordswood Industrial Estate, Chatham
Aviva Investors Global
Services Ltd
5,197 plus
2,458 mezz
SPI Matrix Ltd 6,700 £41,000
10 year with break
at year 5
10 year with break
at year 5
10 year with break
at year 5
Caxtons
Altus Edwin Hill
Watson Day
£33,000 10 year Taylor Riley
10 year with break
at year 5
Broadlands Commercial Property
Agents LLP
Watson Day
10
KENT PROPERTY MARKET 2012

Sales
Location Vendor Purchaser Size ft² Tenant Price Income Yield Agent
Medway City Estate, Rochester
c/o Hadleigh &
Partners
Veetee Rice Ltd 25,386 Vacant £1.4m - - Caxtons
Unit 5 Stag Road, Tunbridge Wells
Clerical Medical
Investment Group
A&A Metals Ltd 6,000 Vacant £450,000 - - Durlings
Unit 7 Access 4:20, Aylesford Private investor Obsidian Securities 2,922 Vacant £295,000 - - Core Commercial
Industrial rents Industrial rental growth Industrial average yields
100
2008-09
2009-10 2010-11 2011-12
10
Kent UK South East
12
Kent UK South East
8
80
6
11
10
60
40
20
4
2
0
-2
-4
11
Ashford
Canterbury
Dartford
Dover
Folkestone
Gravesend
Maidstone
Medway
Sevenoaks
Sittingbourne
T.Wells
Tonbridge
Thanet
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
£/m 2
% Change a year
% Yield
9
8
7
6
0
-6
Source: IPD
Source: IPD
Source: Cluttons LLP
5

RETAIL PERFORMANCE
As at June 2012, all retail sales volumes and values were
estimated to have increased by 1.6% and 1.9% on June 2011
respectively. Despite this, the early part of 2012 has seen values
become largely stagnant across the board, with some centres
experiencing falls. Prime pitches within the main Kent towns
can and are still attracting occupiers, but the run of what is
considered prime pitch is shortening. As a result vacancy rates
have remained static with prospective tenants continuing to
negotiate hard over deals and this, coupled with a cautious
approach to commitment, has continued to impact transaction
turnaround times which have, in large, been drawn out.
Further to the report carried out by Mary Portas, Ashford,
Dartford, Margate and Medway have successfully won ‘Portas
Pilot’ funding from the government to assist in regenerating
the High Street. With a pot of £2.7m set to be shared
between 27 winning centres, along with a tailored package
of support from the government and Mary Portas, the
funding aims to drive improved performance from the smaller
independent retailers.
Lettings
In contrast, larger stores continue to remain very cautious,
with the demise of Clinton Cards reminding retailers of the
need to correctly balance sales and overheads.
Development within town centres is thin on the ground with
very little pipeline supply. However, Silvercoin Investments are
to embark on the development of 576m² (6,200ft²) of retail
space with a 120-bedroom hotel above on the corner of St
Georges Place, Canterbury. Supermarkets continue to surge as
Sainsbury’s completed an extension to their store in Sevenoaks
in 2011 and Aldi constructed a new store in Maidstone which
opened in May 2012. Aldi has also agreed terms with Legal
and General to occupy the former Habitat store in Canterbury
which provides 1,394m² (15,000ft²) of sales space. A Lidl is
also planned for Sevenoaks, while Waitrose also opened a new
outlet at Kings Hill, West Malling in December 2011.
Kent continues to lure retail investors with yields ranging from
6.2% to 9% depending on covenant and location. High street
shops are attracting greater numbers of smaller investors
seeking better value resulting in falling capital values; the smaller
investor often operates a proactive management approach.
According to IPD (Investment Property Databank) the average
yield of the High Street is 7.9%, 190 basis points higher than
the wider market.
Two investments in Tunbridge Wells saw the Lower Pantiles
being sold to Marquess of Abergavenny for £4m from Deloittes
Ltd, the administrators of a subsidiary of Targetfollow, and Martin
Moore Ltd purchased the freehold of 25 High Street for £1.05m.
Retail warehouse rents have remained steady this year
following the rally of last year, with continued investment
interest. Units 1-8 Wincheap Trade Park, Canterbury sold to
Threadneedle Property Investments Ltd for £3.75m reflecting
a net initial yield of 9%.
At Westwood Cross, Land Securities’ retail park in
Broadstairs, Primark opened the largest unit comprising
6,503m² (70,000ft²) in October 2012. At the same time,
plans for an extension to the park, including the addition
of 720 new parking spaces have been revised and were
out to public consultation in summer 2012 prior to a
planning application being made.
Location Landlord Tenant Size ft 2 Rent (pa) Lease Term Agent
80 High Street, Ashford Private Trust Tesco 10,400 £49,500
13 Military Road, Chatham Halpern Group Raphaels Jewellers 2,496 £20,000
20 year with tenant break
in year 10
10 year with tenant
break in year 3
BTF Partnership
Caxtons
1 Guildhall Street, Canterbury Guildhall Estates AJ Chocolates 1,477 £28,500 10 year Caxtons
129-131 High Street, Tonbridge Private company Regal Consultants 1,155 £18,000 Undisclosed Cradick Retail
Unit 1D/J Liberty Square, Kings Hill
Liberty Property Ltd
Partnership
Humpreys 1,155 Confidential 10 year
Liberty Property Trust UK
Cradick Retail
70B High Street, Whitstable Private individual Private individual 917 £15,829 Assignment Taylor Riley
12
KENT PROPERTY MARKET 2012

Sales
Location Vendor Purchaser Size ft² Tenant Price Income Yield Agent
Albert Street, Whitstable Rogate Private investor 3,000 Pizza Express £760,000 £45,000 5.6%
BTF Partnership
Walter & Randall
27 High Street, Tenterden Private investor Private investor 933 Country Casuals Ltd £510,000 £35,047 6.5% Cradick Retail
24 St Peters Street, Canterbury Private investor Private investor 817 Messrs Malik and Sikdar £385,000 £29,250 7.3% Caxtons
Tesco store, Dover Road, Folkestone Starnes Plc Private investor - Tesco Plc until 2031 £985,000 £57,500 5.5% Cradick Retail
High street retail rents High street retail rental growth High street retail average yields
2500
2008-09 2009-10 2010-11 2011-12
Kent UK South East
8
10
Kent UK South East
£/m 2
2000
1500
1000
% Change a year
6
4
2
0
-2
% Yield
9
8
7
6
500
-4
-6
5
0
Ashford
Canterbury
Dartford
Dover
Folkestone
Gravesend
Maidstone
Medway
Sevenoaks
Sittingbourne
T.Wells
Tonbridge
Thanet
Source: Cluttons LLP
-8
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Source: IPD
4
Dec 1997
Dec 1998
Dec 1999
Dec 2000
Dec 2001
Dec 2002
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Dec 2009
Dec 2010
Dec 2011
Source: IPD
13

LEISURE AND TOURISM PERFORMANCE
Contributing more than £3.2bn to the Kent economy,
the tourism and leisure industry continues to be one of
the county’s major employers supporting 63,000 jobs
– equivalent to 1 in every 14 people employed. Kent
welcomes 57m visitors each year.
Attractions and venues
Turner Contemporary, Margate continues to draw in the
crowds with 700,000 people having visited in its first year.
It has received a Catalyst endowment grant of up to £1m
from Arts Council, Heritage Lottery Fund and Department
for Culture, Media and Sport to support sustainability and
attract investment in new artistic work.
Phase 1 of the Dreamland project has received full funding
for restoration of the scenic railway, the historic rides
collection and ‘Lord’ George Sanger’s menagerie cages.
The park will open in 2013.
Ramsgate Tunnels Heritage Group is looking to develop the
disused rail tunnels and air raid shelters under Ramsgate into
an all-weather, year-round attraction. A successful Big Lottery
Fund bid is supporting progress with feasibility studies.
New shops, homes and restaurants in central Dover have
passed the final planning stage. In phase 1 a 108-bedroom
Travelodge, telecommunications mast and 10m LED
screen at Woolcomber Street/St James’s Street, has
achieved planning permission with completion in 2013.
Phase 2 includes a variety of public spaces, a flint ‘town
wall’, renewed retail and restaurant space and 450 parking
spaces. The aim is to revive interest in Dover as a hub for
shopping, eating and relaxing.
The National Trust is appealing for £1.2m to buy a mile of
land on the White Cliffs of Dover. It is the missing link of local
coastline owned by the National Trust and will safeguard
it for the future. The Trust also launched a two year, £27m
restoration of Knole House in Sevenoaks in 2012.
Battle of Britain Memorial Trust has planning permission for
The Wing to be built at the National Memorial to the Few,
Capel-le-Ferne. Designed by Folkestone’s Godden Allen
Lawn the building is in the shape of a Spitfire wing and will
be a paid-for visitor experience, with special effects/video
walls and an education centre.
The Beaney Art Museum & Library, Canterbury (credit Tim Stubbings)
Turner Contemporary, Margate
14
KENT PROPERTY MARKET 2012

Maidstone Museum’s £3m restoration and East Wing
development by Hugo Broughton Architects, opened to the
public in spring 2012 as well as the new Kent History and
Library Centre. Maidstone’s Mote Park’s £2.5m restoration
and the Maidstone High Street Public Realm Project were
also completed.
The Beaney Art Museum and Library, Canterbury, re-opened
in September 2012 after extensive restoration and includes
exhibition galleries, community/educational space, visitor
information and interactive events.
The new £26m Marlowe Theatre opened in October 2011
and sold 300,000 tickets in its first nine months. Designed
by Keith Williams Architects, the theatre received The
Cultural Landscape Award and the RIBA Downland Award
for architectural excellence.
Cyclopark, Gravesend opened in May 2012. This multi-sport
centre brings first class running, cycling and extreme sports
to Kent as well as regional and national events. Also in the
Thames Gateway, Milton Creek Country Park has opened
near Sittingbourne town centre.
Glow is a 5,200m² (55,972ft²) event venue in Bluewater.
The £60m space, owned by Lend Lease, opened in
November 2011 and has two main halls and a gallery to host
exhibitions and top musical acts and includes a plaza with
12 restaurants, cafes and bars.
Accommodation
Prince’s Golf Club, on the Kent coast near Deal and
Sandwich, has opened new Lodge accommodation. The
opening marked the 80th anniversary of the first shot in the
1932 Open Championship hosted at Sandwich.
A new Premier Inn opened at Minster, near Ramsgate while
a boutique hotel at Albion House, overlooking the Royal
Harbour, is also planned. The Sands Hotel has planning
permission for boutique accommodation on Margate seafront.
In 2012, GSE completed phase 1 of the regeneration of the
Hythe Imperial Hotel, with a £1m investment in the exterior
of the building. Completion of the new homes on Imperial
Green will allow a further £3m investment in the new south
elevation of the hotel.
Medway has several new hotel sites including a 120-bedroom
hotel on Gillingham Waterfront, a 150-bedroom hotel on
Rochester Riverside as well as plans for a 200-bedroom hotel
on Chatham Waterfront close to a new events/conferencing
complex. Work has re-commenced at The Coniston Hotel,
Sittingbourne, with a view of opening in late 2012.
Shepherd Neame acquired The Bell Hotel, Sandwich
and The Fayreness Hotel, Broadstairs in late 2011 and
is investing in accommodation at other properties. The
Joiners Arms, West Malling, now has French boutique style
bedrooms following a £140,000 refurbishment, and the Dog
and Bear Hotel, Lenham, has refurbished its 24 bedrooms
while maintaining its 17th Century period charm.
Transport
A masterplan by Dover Harbour Board to increase capacity
with four additional Ro-Ro ferry berths in the Western Docks
is proposed. The investment will see a new marina created for
up to 370 berths. £11.4m has also been invested by extending
Pier A at the Eastern Docks to enable longer vessels to moor in
berth. This will provide improved mooring for DFDS vessels and
an alternative berth for P&O Spirit class ships. Works will also
improve marine safety and help avoid disruption to schedules.
P&O Ferries has added a second new ship, the Spirit
of France, to its fleet. The assets of liquidated operator
SeaFrance were awarded to Eurotunnel and three ships
will be back in operation shortly. A new Dover-Calais route
operated by LD Lines and DFDS started in February 2012.
Marlowe Theatre, Canterbury
Maidstone Museum, Maidstone
Glow at Bluewater, Greenhithe
15

RURAL PERFORMANCE
The rural land market has seen positive growth over the
last year. Nationally farmland prices have reached a record
high driven by demand from commercial farmers and
facilitated by improved availability of debt finance for land
purchases (RICS). The strength of the market is reflected in
its investment performance, delivering total returns of 15.9%
in 2011, outperforming all other property sectors.
Kent’s rural market reflects the national picture with a
constrained supply of available bare land and equipped
farms coming to the market. While inheritance tax and
pension benefit changes have heightened interest from
private investors, it has been existing farmland owners
seeking to increase holdings to enhance profitability that
have dominated the little activity that has occurred over the
last 12 months. According to the RICS, bare land values
are at a historic high in the south east, rising steadily since
2009 following the market downturn. These now stand at
£2,934 per ha (£7,250 per acre) and £2,378 per ha (£5,875
per acre), for arable and pasture land respectively. However
there remains wide variation around this figure and is
dependent on the nature of land.
Given the dearth of supply, opportunities for either the
expansion of existing farms or estate purchases remain a
rarity. One of the few large transactions in the market over the
last 12 months was the £4.8 sale of Cleve Hill Farm, Graveney
by Savills to a farming business comprising 408 ha (1,009
acres) of mostly grade 3 arable land. More recent transactions
include 236 ha (582 acres) of grade 2 and high-end grade 3
land situated to the south of Faversham at The Parsonage
and Valley Farm by BTF. No buildings or dwellings were
included in this sale and the land was offered in six lots or as a
whole ranging from 8 ha to 90 ha (20 acres to 223 acres) with
guide prices from £3,035 per ha to £3,642 per ha (£7,500 per
acre to £9,000 per acre). The overall guide price was £3.5m
to £4m. At the lower end of the scale, 72 ha (177 acres) in
Biddenden Woods was sold for the equivalent of £1,520
per ha (£3,757 per acre).
Lifestyle buyers remain in the market, although are now less
prominent than in recent years. Demand for good quality
country houses with accompanying land continues to be
underpinned by former London dwellers, however, the
quality of the property is important, and focused mainly
in mid and west Kent. Savills’ £2.5m sale of Odiam Farm
on the outskirts of Tenterden, comprising four bed house,
barn used for garaging and annex, and six outbuildings
with 95.9 ha (237 acres) of pasture land, underlines
the value attached to good quality residential farms. In
contrast, Mount Pleasant Farm at Marden, which includes
16 ha (40 acres) of pasture land and house, with two
ranges of buildings sold for slightly in excess of £1m.
In 2012, tenders for short term arable Farm Business
Tenancies (FBT) have proved competitive with average
tender rents across the county equivalent to £81 per ha
(£200 per acre). In Ashford, 233 ha (576 acres) of arable
land, 62 ha (153 acres) of pasture land and 10.9 ha (27
acres) of woodland are being marketed as lots or as a
whole through a five year FBT agreement at Cheeseman’s
Green, which forms part of the Church Commissioners
holdings in this area.
Looking ahead, agricultural land values are anticipated to
show further growth this year, although the impact of the
impending CAP reform is generating some uncertainty.
Rural property total return relative to other asset classes
Rural property Commercial property Residential property Equities
25
20
15
3 years 5 years 10 years
10
%
5
0
-5
2011
Odiam Farm, near Tenterden
Cleve Hill Farm, Graveney
-10
Source: IPD
16
KENT PROPERTY MARKET 2012

The Parsonage & Valley Farm, near Faversham
17

RESIDENTIAL PERFORMANCE
Average new build price range by location
Indicators
Average price
range £/psf 2012
The Kent residential market showed tentative signs of
turning a corner in mid 2012. At the end of July average
values stood 0.2% ahead of the same point last year (Land
Reg.). While marginally below the south east average, this
masks a mixed picture across the region. Demand for
large family houses in west Kent has continued, upheld by
London commuters, having a positive impact on values.
More generally, finance constraints and a challenging labour
market are suppressing confidence and activity in the
county’s housing market, with residential values in east Kent
showing the weakest performance. The high speed train
link through Kent to St Pancras is continuing to improve
the desirability of the locations it has opened up, but with
minimal impact on house values to date.
New build activity remains positive across the country, with
the build rate driven by sales demand. All national developers
are active, with mid, west and north west Kent attracting
particular interest. Government and developer schemes to
assist first time buyers are facilitating an increase in sales
volumes particularly for smaller houses and flats. Schemes
underway include phase 3 of Medway Gate, Strood, which
will be released this year by Persimmon Homes, while
Cheeseman’s Green, Ashford, has attracted £2.3m funding
through the Get Britain Building Fund for the release of 100
new homes to be built by Crest Nicholson. The significant
demand for housing and reduced desire for commercial
development has prompted a review of the masterplan for
Kings Hill and a new vision for the future. An outline planning
application for change of use of part of the undeveloped
commercial land will be submitted late 2012 for a new
residential-led mixed use development.
There is less activity in the eastern parts of the county due
to increased risk and lower capital values, which given the
severe constraints on development finance is impacting on
development viability. This in particular is denting the activity
of smaller housebuilders in the county, leading to more joint
venture schemes, with land owners taking deferred payments.
Given viability issues, a number of Section 106 (S106)
Agreements and affordable housing quotas are being
contested by developers, while some large scale regeneration
sites requiring significant infrastructure investment have also
stalled. That said there are a number of notable schemes in
the pipeline. Land Securities, owners of Eastern Quarry, is
seeking partners for the first phase of development at Castle
Hill and Weldon, the local authority has eased the S106
transport infrastructure obligations. They have also submitted
a planning application for Lodge Hill on the Hoo Peninsula,
with phase one planned over eight years. In these areas land
values are stable, aided in part by some historic planning
consents with lower affordable housing requirements.
Registered Providers (RPs) remain active across Kent, but are
proving more selective, due to less competition from private
developers, while also looking to develop sites for private sales
to cross subsidise their affordable programmes. Schemes
underway include the first phase of Rochester Riverside, where
Hyde Housing is nearing completion on 73 homes and has
commenced construction on the next 210 unit phase.
Sevenoaks £315 – £450
Tunbridge Wells £250 – £400
Tonbridge and Malling £250 – £340
Canterbury £235 – £300
Dartford £220 – £285
Whitstable £200 – £370
Maidstone £185 – £280
Gravesham £175 – £265
Medway £160 – £265
Ashford £160 – £235
Swale £160 – £220
Ramsgate £160 – £200
Sheerness £155 – £200
Dover £155 – £190
Source: Cluttons LLP
Rochester Riverside, Rochester (credit Medway Council)
Ryewood, Dunton Green, Sevenoaks
18
KENT PROPERTY MARKET 2012

The Point, Maidstone
19

INWARD INVESTMENT
Locate in Kent, Kent and Medway’s investment promotion
agency, maintains a client database that holds details of the
property requirements of companies looking to relocate to or
expand in Kent. It also maintains a web-based commercial
property database that provides a good indication of Kent
and Medway’s commercial property supply.
Property demand
Between April 2011 and March 2012, 216 new projects
were logged by Locate in Kent, of which 194 had known
property or land requirements (compared with 186 in
2010-11). 74 were for industrial property, 103 for office
accommodation and 12 for land.
At the end of June 2012, there were 309 active projects. Of
these, 265 had a potential requirement for property or land,
compared to 273 in June 2011, of up to a total of 194,984m²
(2,098,810ft²), compared to 216,795m² (2,333,576ft²) in 2011.
By the end of 2011-12, a total of 74 companies had been
successfully assisted by Locate in Kent to invest in Kent
and Medway, of which 52 had a new or additional property
requirement. The total area of property occupied was
33,503m² (360,623ft²) compared to 53,244m² (573,116ft²)
in 2011, which was an average take-up of 644m² (6,935ft²),
representing a 34% decrease in the average size of property
uptake since 2011.
During the first quarter of 2012-2013, a further 15,791m²
(169,981ft²) was occupied, compared to 3,639m² (39,166ft²)
in June 2011, representing a 334% increase over June 2011.
This is explained by the fact that in June 2011 there were
21 projects (13 office and 8 industrial), with only one project
larger than 1,858m² (20,000ft²), whereas in June 2012 there
were 14 projects (4 office and 10 industrial), with five over
1,858m² (20,000ft²) and with take-up of industrial property
dominating at 97.8%.
The total number of industrial projects seeking property in
Kent and Medway in June 2012 was 101 (compared to 114
in 2011). 101 companies made 201 area enquiries, which
led to a maximum demand for industrial space of 373,793m²
(4,023,506ft²) compared to 339,094m² (3,650,006ft²) in 2011.
30% of area enquiries for industrial properties were in Thames
Gateway and 29% in Channel Corridor, with 22% in West
Kent and 18% in East Kent.
With a total of 115 office projects to June 2012, total potential
demand for office space reached 87,241m² (939.069ft²)
(compared with 54,815m² (590,024ft²) in 2011), which
Total office and industrial property
demand by sub-region, June 2012
Property demand by size range, June 2012
Property demand by sector, June 2012
Maximum total property requirements (000s) m 2
300
250
200
150
100
50
0
(44)
East Kent
Office
(37)
(61)
(60)
Thames
Gateway
(42)
West Kent
Industrial
(45)
(56)
(59)
Channel
Corridor
Figures in brackets = no. of active projects at June 2012
(NB. Some projects are considering property
in more than one area of Kent.)
% of total office/industrial demand
55
45
35
25
15
5
-5
(44)
0-93 (0-1,000)
(16)
(42)
(39)
94-464
(1,001-5,000)
(7) (7)
465-929
(5,001-10,000)
Office
(4)
930-1,858
(10,001-20,000)
(15) (16)
1,859-4,644
(20,001-50,000)
Industrial
Figures in brackets = no. of
active projects at June 2011
4,645-9,289
(50,001-100,000)
Minimum property size requirement m 2 (ft 2 )
(2)
(5)
(3)
(0) (1)
9,290+ (100,000+)
Total (min) requirement (000’s) m 2
50
40
30
20
10
0
(5)
Automotive
(24)
Business Services
(20)
Construction
& Property
Creative Industries
Engineering
Environmental
Financial Services
Office
Food & Agriculture
ICT
Land Based & Utilities
Industrial
Figures in brackets = no. of office and industrial active projects at June 2012
(1)
(20)
(9)
(6)
(10)
(14)
(6)
(2)
Life Sciences
(16)
Manufacturing
(7)
Printing & Publishing
(16)
Public Services
(27)
Retail & Wholesale
(4)
Tourism & Leisure
(11)
Transport & Logistics
20
KENT PROPERTY MARKET 2012

was up by 59% on 2011. 115 companies made 203 area
enquiries for office property. The highest demand (30% of area
enquiries) was in Thames Gateway, with Channel Corridor
28%, West Kent 21% and East Kent 22% of area enquiries.
Of all industrial property, smaller sized units continued to be
the most popular. In both 2011 and 2012, the most popular
industrial property size was 93-464m² (1,001-5,000ft²), which
accounted for 42% and 39% of totals respectively in each year.
As in 2011, smaller office properties continued to be the most
sought after. 86% of office demand was for properties of under
464m² (5,000ft²), but the average minimum size requirement
was almost twice the size as the previous year - 536m²
(5,765ft²) in 2012 compared to 270m² (2,906ft²) in 2011.
At the end of June 2011, industrial demand was dominated
by retail and wholesale representing 16% of projects
(29,404m² (316,502ft²)), followed by manufacturing,
(24,994m² (269,033ft²)), food and agriculture (19,609m²
(211,070ft²)) and engineering (18,414m² (198,207ft²)). At
the end of June 2012, the situation differed slightly, with
manufacturing representing 16% of the industrial demand
(26,505m² (285,297ft²)), followed by engineering (19,672m²
(211,748ft²)) and food and agriculture (15,289m² (164,569ft²)).
At the end of June 2011, office demand was dominated
by business services (35% of office demand; (11,223m²
(120,803ft²)), followed by construction and property (3,888m²
(41,850ft²)) and public services (3,721m² (40,052ft²)), both
approximately 12% of demand. At the end of June 2012, the
situation was similar, with business services still dominating
with 24% of office demand (7,985m² (85,949ft²)), followed by
engineering (11%; 3,558m² (38,298ft²)) and construction and
property (9%; 3,084m² (33,195ft²).
At the end of June 2012, a total of 1,644 properties were
registered on Locate in Kent’s property database, compared
to 1,745 at the end of June 2011, a decrease of 6%. 48% of
supply was industrial properties, compared with 47% in 2011.
The greatest number of properties overall were available in
Thames Gateway (32%), followed by Channel Corridor (30%),
West Kent (25%) and 14% in East Kent.
Channel Corridor and Thames Gateway offered the greatest
number of industrial properties (29% and 34% respectively).
Channel Corridor, West Kent and Thames Gateway offered
the greatest number of office properties (31%, 29% and
29% respectively).
At the end of June 2012, 92% of the office properties available
were at the smaller end of the range - less than 464m²
(5,000ft²), which was the same as June 2011.
Property supply by area, June 2012
Number of properties available
300
250
200
150
100
50
0
(91)
East Kent
Total Office - 824 Properties
Total Industrial - 791 Properties
(136)
(241)
(270)
Thames
Gateway
(239)
West Kent
(159)
(253)
(226)
Channel
Corridor
Figures in brackets = number of properties logged
on Locate in Kent’s property database at June 2012
Property supply by size bracket, June 2012
% of office/industrial properties
60
50
40
30
20
10
0
(396)
0-93 (0-1,000)
(116)
(384)
Office - 853 properties
Industrial - 791 properties
(443)
94-464
(1,001-5,000)
(43)
(108)
465-929
(5,001-10,000)
Figures in brackets = number of
properties logged on Locate in
Kent’s property database at June 2012
(18)
(68)
930-1,858
(10,001-20,000)
Size of property m 2 (ft 2 )
(37)
(7)
1,859-4,644
(20,001-50,000)
(5) (19)
4,645+ (50,001+)
For industrial properties, the most commonly available sizes
were also at the lower end of the size scale, with property under
464m² (5,000ft²) accounting for 71% of all available industrial
properties, as it did in June 2011.
Major investments
Locate in Kent handled a similar number of industrial and
office investments in 2011-12 and there were also more than
usual from overseas - 20 investments, due to Locate in Kent’s
successful prioritizing of foreign direct investment. These
investments were from a diverse range of countries including
Ireland, Canada and India.
Document Warehouse, a leading South Africa based archiving
and document storage specialist set up their first office in
the UK in the 9,090m² (90,000ft²) Orchard House, Henwood
Road, Ashford, where they now have their UK HQ, creating
200 jobs over three years. Go Response, a customer services
company created 150 jobs by taking an additional 808m²
(8,000ft²) at Kent Science Park and GML Construction
created 106 jobs at their Coxheath, Maidstone offices.
21

REGENERATION
Thames Gateway Kent
Dartford
Dartford’s Core Strategy was adopted in September 2011
and consultation on a Preliminary Community Infrastructure
Levy Schedule took place in May 2012. Work is progressing
on a Development Management DPD and a Supplementary
Planning Document on the Northern Gateway was adopted
in April 2012 and a Parking Standards SPD in July 2012.
In Dartford town centre, one of twelve successful pilots
for the Portas Project, the Lowfield Street application for a
mixed use development is being considered by the council
and a Sunday market has been started to increase footfall.
Land Securities has engaged a development partner in
bringing forward a mixed use development at Eastern
Quarry. In August 2012 a deal between ministers,
councillors and developers was announced, confirming the
first phase of 1,500 homes is due to complete in December
2013. As part of the plans, around £116m is to be spent on
transport infrastructure.
An outline application was approved in June 2012 for
‘Dartford Gateway’, a mixed-use development of 950 to
1,050 residential units, office, retail and food and drink.
Construction of the homes starts soon. Other sites at the
Northern Gateway are progressing, with employment space
created at The Base, residential development on a former
paper mill and a further large site is being marketed.
Two further phases of The Bridge at Dartford have
commenced. Eventually it will comprise 1,500 homes, a
community hub and science park all served by Fastrack.
Refurbishment and conversion of Stone House Hospital to
residential use with additional new homes in the grounds is
underway and being successfully marketed.
Gravesham
Consultation took place in 2011 on the Growth Scenarios
and Core Strategy. The Publication Stage Core Strategy has
a requirement for 4,600 homes for 2011-2028 averaging
271 dwellings a year. This is less than South East Plan
requirements but enables delivery of jobs and housing.
Lafarge obtained consent for the import of aggregates
at Wharf 42 at the former Northfleet Cement Works and
export of tunnel spoil from Crossrail. It has enabled the
reinstatement of the rail connection to the North Kent line
and will allow additional rail freight in future. The spoil will be
used at an RSPB reserve at Wallasea Island, Essex.
Christian Fields redevelopment continues into phase three.
The 400 new houses, managed by Moat housing association
are proving popular and the project’s social benefits have
brought the community together.
In 2012, a 40m long pontoon off the Grade II* listed Town
Pier was opened enabling visitors to reach Gravesend by
river, the Pier’s original function. It has attracted many vessels
for their summer visits to the River Thames.
Gravesend Skate Park opened to complement attractions in
the Riverside Leisure Area and the new Cyclopark.
Medway
The 20-year regeneration plan is on course to deliver major
changes and improvements to the largest conurbation in the
south east.
Rochester Riverside’s first phase of affordable housing is
underway and a new Skills and Employment Centre has
begun to create jobs and apprenticeships for local people.
Medway City Estate has expanded with 600 companies now
providing over 6,000 jobs.
Cyclopark, Gravesend
Gravesend Pier
22
KENT PROPERTY MARKET 2012

Chatham Bus Station (credit Medway Council)
Chatham Waters (credit Medway Council)
A real difference is being made in Chatham with the new
bus station and at Chatham Docks, where outline plans
have been approved for 900 homes, office space, two
hotels and conference facilities.The £650m Chatham
Waters development is due to commence late 2014
and is expected to create 3,500 jobs.
Strood Academy has been completed, one of three new
flagship academies costing £70m with work also underway
at Bishop of Rochester Academy and Brompton Academy.
Medway Park is an £11m regional centre of sporting
excellence. It has established itself as a venue for national
and international events, twice hosting international modern
pentathlon competitions including an Olympic qualifier. It
also hosted the British Transplant Games in August 2012.
Medway Innovation Centre was recently awarded the
Business Innovation Centre quality mark and became part
of the European Business Network – the only one in the
south east outside London.
Medway Council has invested over £10m in local
businesses. The Partners for Growth scheme has offered
loans and grants to more than 220 businesses securing
over 2,700 jobs. Employ Medway has helped over 800
people get work and the council has invested over
£200,000 in apprenticeships, helping 200 young people
begin their careers.
Swale
Sittingbourne and Sheppey together form a major commercial
centre, with one of the foremost concentrations of engineering
and manufacturing in the Gateway.
A £45m investment in new roads has improved access and
increased the range of sites for investors. Sittingbourne
Northern Relief Road, opened in 2011, has relieved
congestion in central Sittingbourne, opened up development
sites north of the town and improved access to the Eurolink
business area. This provides the prospect of further growth
and a significant concentration of commercial occupiers.
March 2012 saw the opening of a 7,432m² (80,000ft²) facility,
by Hamdon Gate for Abbott UK, adding to the existing 280
occupiers employing an estimated 6,500 people at Eurolink.
Rushenden Link Road now provides access from the A249 to
the Queenborough and Rushenden regeneration area where
2,000 houses, social, leisure, community facilities, school,
marina and 180,000m² (1,937,503ft²) of new employment
space is planned. Phase 1 preparatory works are due.
Peel Ports’ deepwater port at Sheerness has been nominated
as one of four designated Centres for Offshore Renewable
Engineering (CORE) and is seeking to become a major
manufacturing hub for the offshore turbine industry.
The consortium, Spirit of Sittingbourne, has been selected
to regenerate the town centre, with agreements concluding
by autumn 2012. Proposals include a new cultural quarter,
multi-screen cinema, music/performance venue, associated
retail/leisure uses and a civic quarter providing a new council
building along with library and community facilities.
23

Gravesend Victoria Way, Town Ashford Pier (credit Ashford Borough Council)
Stanhope, Ashford (credit Ashford Borough Council)
A new Morrison’s supermarket at the former Sittingbourne
Paper Mill site is planned to open in spring 2013. Permission
has also been granted for a major retail led development in
Sittingbourne at Milton Creek with a new bridge linking the two.
Kent Science Park in Sittingbourne is undergoing a
programme of upgrades, re-fits and new construction work
ahead of a major extension. The Park, home to 63 tenants
and more than 1,300 employees, has recently invested in
operational upgrades and provided new laboratory space
for both existing tenants and Flow Chemistry Solutions, a
Pfizer spin out.
At Faversham, the recent development of the Eurocentre site
provides a mix of new office and industrial space and ongoing
commercial developments.
Ashford
Highlighted as a place to invest, Ashford’s growing reputation
continues with the delivery of key projects and plans essential
to future prosperity.
The relationship between Ashford and London is transforming
opportunities for local businesses and residents. Of people
travelling to London from Ashford International Station
71% use High Speed 1. The 6.5ha (16 acres) commercial
quarter at Ashford International Station will deliver 55,000m²
(592,000ft²) of offices, retail/leisure space and 150 homes.
The first 6,000m² (64,500ft²) office was approved in 2011 with
owners, the Homes and Communities Agency, working with
the council to deliver this business hub.
Recent improvements at M20 Junction 9 have supported
the expansion of Eureka Business Park. This 39ha (96 acres)
park has delivered 30,190m² (325,000ft²) of business space
housing some of Ashford’s largest employers such as Coty
Rimmel and Smiths Medical. Northdown 2 forms the latest
2,320m² (25,000ft²) office development on this key site. A
£7m John Lewis ‘At Home’ store at Junction 9 has planning
permission and will create 160 jobs.
Victoria Way completed in late 2011. This new infrastructure
opens up major development opportunities south of the
town with potential for 1,750 homes and over 17,230m²
(185,000ft²) of commercial, retail and leisure space.
Ambitious plans are coming forward to develop land at
Conningbrook as a water sports venue with a lakeside
village of 300 homes to complement the Julie Rose Stadium.
Proposals are progressing for a sustainable community of up
to 5,750 homes at Chilmington Green creating 1,000 jobs.
Reconstruction of the Stanhope estate completed in 2012,
transforming the lives of residents. For five years Chrysalis
Consortium worked for Ashford Borough Council to refurbish
323 council-owned properties to Decent Homes Standard and
with Gleeson Homes and Regeneration to build 442 homes.
West Kent
Maidstone
Major new housing and employment sites have been
allocated by Maidstone Borough Council.
24
KENT PROPERTY MARKET 2012

The Tunbridge Wells Regeneration Company, established
in 2008, is considering options for John Street and Mount
Pleasant car parks and Cranbrook Council Offices.
Berkeley Homes bought the Kent & Sussex Hospital site
and a planning application for residential development with
potential office space is expected in late 2012.
Hermes Real Estate has invested in Royal Victoria Place
taking full control of the shopping centre. The new owner
of Lower Pantiles is reviewing the strategy for the area.
Gallagher Stadium, Maidstone
The Kent Institute of Medicine and Surgery (KIMS) is
investing £80m in a new hospital at M20 Junction 7 as
part of the Maidstone Medical Campus Masterplan being
promoted by DHA Planning. The new hospital, designed by
David Morley Architects, is being built by Vinci Construction.
The new Kent History and Library Centre is a mixed-use
purpose built development with 60 residential units and a
57 unit extra-care facility. Nearby, Maidstone United’s new
3,000 capacity ground, ‘The Gallagher Stadium’, has
been built at Whatman Park. Maidstone Museum’s £3m
restoration and the Maidstone public realm project were
both completed in 2012.
Tunbridge Wells
Tunbridge Wells’ Core Strategy was adopted in 2010 with
consultation in autumn 2012. A Community Infrastructure
Levy Charging Schedule accompanies the policy and a
Borough Transport Strategy is being prepared.
Tonbridge & Malling
Tonbridge and Malling Borough Council Core Strategy
was adopted in 2007 with no plans currently to review
it. A Development Land Allocations DPD, a Town Centre
Area Action Plan and a Managing Development and the
Environment DPD have also been adopted.
Liberty Property Trust UK, developers of the 363 ha (897
acre) mixed-use, sustainable development at Kings Hill, has
announced a review of the masterplan to see how they can
better respond to current market demands and, in particular,
the need for more housing. With established infrastructure,
Kings Hill is well placed to accommodate further, carefully
designed, residential-led development via an application
for change of use of some, as yet undeveloped remaining
consented commercial space. Proposals are likely to include
up to 1,000 new homes, possible new primary school,
retirement homes, residential care home and landscaped
open space. The indicative planning application timeline
is for community consultation Q3/Q4 2012, a planning
application by the end of 2012 and for local authority statutory
consultation thereafter.
Sevenoaks
The District Council adopted the Core Strategy in February
2011. An application has been submitted for redevelopment
of a site west of Blighs Meadow for retail and residential. West
Kent Cold Store site at Dunton Green is being built out with
500 residential units and 2,300m² (24,757ft²) of B1 commercial
space. Horton Kirby Paper Mills site was completed in 2011,
providing 214 homes and commercial space.
Maidstone High Street
25

East Kent
Canterbury
The significantly extended and restored Beaney Art Museum
and Library reopened in September 2012 creating a new
library, museum and gallery, community areas and a learning
lab. The £13.2m project, together with the new Marlowe
Theatre, underlines the city’s position among cultural centres
in the south east.
Canterbury Innovation Centre at University of Kent is now
close to full occupancy. Managed by Basepoint Ltd and
owned by the East Kent Spatial Development Company the
2,500m² (26,909ft²) site provides 85 workshops, offices and
studio/laboratories with business incubators sized from
9m² - 79m² (96ft² - 850ft²).
Work on a new 120-bedroom Premier Inn at St Georges
Place begins on site in 2012. Also in St Georges Place,
Canterbury Christ Church University’s new accommodation
and a student centre opened in September 2012. It has
200 single en-suite study bedrooms arranged in flats of up
to six students, with bar, internet cafe and office space plus
10 three-bedroom houses around a landscaped space. The
development aims to give a strong urban street frontage
onto St George’s Place, consistent with the historical pattern.
As interest grows in the student market, Quinn Estates
introductions led 90 North Real Estate partners to purchase
the 800 bedroom Parham Road Student Village, Canterbury
for £46m, one of the largest deals the county has seen.
Eddington Nursery Business Park at Herne Bay is now fully
committed. The scheme, brought forward by George Wilson
Developments, has six units (2,717m² / 29,245ft² gross)
comprising B1 office/industrial, B8 distribution and D1 uses
with five units already built and occupied.
Dover
The district is seeing significant investment and exciting
projects in a range of areas, with the certainty of the Local
Development Framework in place.
Enhancements to Dover Priory station are nearing completion,
with plans to create a 500 space car park and retail facilities.
In August 2012, Discovery Park (Pfizer’s former research
and development site) in Sandwich was bought by a private
consortium. Discovery Park Limited has acquired the freehold
of the science park, which consists of 278,709m² (3m ft²)
of commercial space across 86ha (213 acres), including
laboratories, offices and warehouses. The site was awarded
Enterprise Zone status in 2011, providing a comprehensive
package of support measures for new businesses including
reduced business rates and simplified planning. This is
backed up by the launch of Expansion East Kent, a £35m
government backed scheme to provide 0% interest loans
for local businesses (see page 28 for further information).
The Dover Town Investment Zone, a mixed-use
development with retail, hotel and residential development,
has received approval with completion due in 2013.
Progress on residential developments at Aylesham Village,
Buckland Mill, Connaught Barracks, and Whitfield continue.
Rocksalt, Folkestone (Credit Guy Hollaway Architects)
26
KENT PROPERTY MARKET 2012

Dreamland, Margate (Credit Guy Hollaway Architects)
Discovery Park, Sandwich
Other plans for the district include the submission of a
major planning application for the Western Heights and
Farthingloe areas and continuing plans for Dover Waterfront
as part of wider proposals for Port of Dover.
Shepway
Work on bringing forward the Folkestone Seafront masterplan
is continuing apace with an outline application submission for
a mixed use scheme by autumn 2012.
After the successes of the Quarterhouse Performing Arts
Centre and the University Centre, the Creative Quarter in
Folkestone is redeveloping a former nightclub on Tontine
Street to create modern offices and incubator space.
Kent County Council, Shepway District Council and the
Creative Foundation successfully bid for Townscape Heritage
Initiative funding for the Old Town area to restore a number of
buildings and make public realm improvements. Subject to a
successful development phase, work will start in 2013.
After significant investment into the Sports Centre, Cheriton
Road Recreation Ground works will complete in early 2013
providing a state-of-the-art facility for hockey and cricket, a
sports hall and much needed space for netball and badminton.
A private sixth form college has been created in the former
Kent Adult Education building in west Folkestone with facilities
and boarding for 30 students.
Terlingham Forum in Hawkinge is under construction. Phase
1 of this Pentland Homes development will provide 48
residential units and a new retail core. Further phases include
around 12,000m² (129,167ft²) of B1 and B8 space. Hythe’s
Imperial Hotel is also undergoing a £12m refurbishment.
Thanet
Thanet’s unique heritage, landscape and coast make it a major
tourist destination attracting over 2.5m visitors annually.
Margate’s new Turner Contemporary and its 700,000 visits
last year provided an estimated £6.3m of additional income
locally and has attracted new businesses to the Old Town
and lower High Street.
Thanet District Council and the Dreamland Trust have secured
funding for the first phases of the heritage amusement park.
Works have taken place to safeguard the Grade 2* listed
cinema. The council is to compulsory purchase the site to
ensure its future in the town.
Manston Business Park and Eurokent Business Park are
being brought forward by East Kent Opportunities (EKO) LLP,
the Kent County Council and Thanet District Council joint
venture. The Eurokent site, adjacent to the Marlowe Innovation
Centre, has few office and industrial units remaining.
The new A256 East Kent Access road opened in 2012
improving access across East Kent and to Ramsgate Port,
Manston Airport and strategic sites.
27

The Kent Empty Property Initiative: No Use Empty
No Use Empty (NUE) is delivered by Kent County Council (KCC)
in partnership with all 12 district councils. After its initial success
in East Kent, the initiative expanded countywide in 2009.
The aim has been to substantially increase the number of
long-term empty homes returned to use as good quality
housing. Since 2005, NUE has returned 2,126 empty homes
back into use, awarding £5.8m of loans levering in £11.4m –
giving a total investment across Kent of £17.2m.
The average cost to renovate a unit (often the very worst
properties) is £44,200 with the average KCC investment being
£18,500. The actual cost to return an empty property back
into use by KCC has been calculated at £2,800.
Margate Housing Intervention Scheme aims to transform
the housing market in two of Britain’s most deprived wards,
Cliftonville West and Margate Central. The innovative scheme
will see Thanet District Council, Kent County Council and the
Homes and Communities Agency working on improvements
to create a step-change in the housing market.
To date the loan scheme has created more than 300 jobs
and homes for more than 600 people with £1.6m of funding
already repaid and recycled. NUE is widely regarded as one
of the most effective initiatives to deal with empty properties
in the UK, recognised by the Scottish Government, Welsh
Assembly Government and the Empty Homes Agency as a
beacon of good practice.
A partnership with Bristol City Council has been established
which saw the launch of the NUE brand rolled out to the West
of England Local Authorities in 2010. NUE won an award
from Regeneration & Renewal (September 2011) for their
partnership working and was shortlisted for an award by
the Chartered Institute of Housing (2012).
Further information can be found at www.no-use-empty.org
Broadband Infrastructure for Kent
Kent County Council is leading a £43m programme to
transform Kent and Medway’s rural broadband infrastructure.
This will ensure that by 2015 at least 90% of premises will
receive superfast broadband, with the final 10% of premises
receiving a service of at least 2mb. Businesses and properties
affected by poor broadband are invited to support the
programme and register their demand for better broadband
at www.makekentquicker.com.
Expansion East Kent
The Government’s Regional Growth Fund (RGF) is a national
fund worth £2.4bn between 2012 and 2016. It aims to support
job creation and private sector growth in areas dependent
upon employment in the public sector. Following the decision
by Pfizer to close its research and development facility at
Sandwich, Kent County Council successfully applied for the
RGF investment as part of a package of measures to support
East Kent. Sandwich Economic Development Task Force,
chaired by Paul Carter, following detailed discussions with
businesses, successfully bid for £40m in RGF investment:
of direct financial assistance to business; and
Ashford and Ramsgate to enhance journey times.
Expansion East Kent funding, available to existing or new
businesses, offers repayable finance at 0% interest. To access
the funding, applications must demonstrate job creation and
good value, secure private or other forms of match funding
and create employment opportunities within the East Kent
district boundaries.
All applications will be independently appraised against the
criteria contained in the Expansion East Kent guidance notes to
be found at the KCC website www.kent.gov.uk/expansion.
Arcadian, Margate (before)
Arcadian, Margate (after)
28
KENT PROPERTY MARKET 2012

GREEN INFRASTRUCTURE
Parklands programme
Thames Gateway Parklands is nearing completion
having attracted £10.5m of government investment in a
£25.5m programme.
Milton Creek, part of the Parklands legacy has opened
near Sittingbourne town centre and provides residents and
visitors with extensive informal play areas, open spaces and
an abundance of wildlife habitats. Within this is the Church
Marshes project with creekside open space, waterside walks
and seating on former contaminated land. The groundworks
and hard landscaping are now complete and the planting
work will commence in autumn 2012 to be ready for visitors
by summer 2013.
Renewable energy: micro-generation
Following the introduction of the Feed in Tariff (FIT) in 2010
there have been over 7,200 renewable energy installations in
Kent with a combined installed capacity of 24MW. There were
only 1,000 in 2011. Solar photovoltaic systems predominate
showing its suitability for the county.
Renewable Heat Incentive (RHI) is now available for
commercial projects on a similar basis to FIT. The availability
of local biomass resources (e.g. wood) provides potential to
access the RHI for heat projects in Kent.
Large scale renewable energy
Wind power, the most significant contribution to power
generation in Kent is led by offshore wind farms in the Thames
Estuary. London Array (Phase 1) is at construction stage
and, on completion in late 2012, will be the world’s largest
installation. The 175 turbines will generate electricity for
485,000 homes annually.
At Ramsgate Port both Vattenfall and London Array have new
operation and maintenance bases representing a significant
industry presence and long term commitment with 125 new
jobs. The port and nearby sites are becoming a hub with
businesses attracted by wind farm developers/operators.
The application to extend the Kentish Flats wind farm by 17
further turbines is progressing through the planning process.
Meanwhile, Little Cheyne Court Wind Farm is the south
east’s largest onshore wind farm with 26 turbines. In 2011
it generated 156GWh of electricity meeting the needs of
32,000 homes annually.
Kent has three solar farms with the largest at Ebbsfleet Farm
next to the proposed Richborough Energy Park. It has a 4.9MW
peak capacity with 20,400 panels across 12.5ha (31 acres).
The Park itself includes proposals for biomass CHP (combined
heat and power), anaerobic digestion and peaking plant.
The Port of Sheerness, designated by the Government as a
Centre for Offshore Renewable Engineering (CORE) lies at the
heart of the Medway Superhub, an area identified as capable
of supporting the offshore wind sector. CORE designation
recognises the port as key to facilitating manufacture and
assembly of turbines. Planning approval was granted in May
2012 for a turbine manufacturing plant for Vestas, but due to
a company restructure they withdrew from the plant shortly
after. However, strategic location and development readiness
make the port an attractive proposition to the sector.
Sustainable Drainage
The Flood and Water Management Act 2010 has promoted
sustainable drainage within new development schemes. In
response Kent County Council is supporting new landscape
and development design and aims to encourage more
attractive communities and enviromental enhancement.
Several large schemes in Kent are embracing sustainable
drainage design. The Conningbrook Lakes development,
sponsored by Ashford Borough Council in 2012 is a scheme
with high aspirations to deliver a country park and lakeside
village. Through utilising swales and attenuation ponds within
open spaces, there are multiple benefits to residents from
amenity, improved visual aesthetics and biodiversity combined
with practical flood control.
London Array, Ramsgate Harbour
Construction of London Array Offshore Wind Farm
29

CONTRIBUTORS
A profession on a journey
RICS – Royal Institution of Chartered Surveyors - is pleased to
endorse the 2012 Kent Property Market report. By promoting
the economic importance of land, property and construction
with accurate county-level data we hope that this report raises
the profile of the sector with policy makers and investors to
the benefit of property professionals and the wider economy.
In a world where more and more people, governments, banks
and commercial organisations demand greater certainty of
professional standards and ethics, attaining RICS status is the
world’s most recognised professional property qualification.
If property is your career then gaining RICS credentials is the
best way to prove to employers and clients that you have
what it takes. We offer routes to chartered membership for
experienced professionals, recent graduates and associate
membership for non-degree holders.
RICS qualifications are available in all the main sectors
of residential and commercial property, planning and
construction. In commercial property RICS credentials are
widely recognised by the market place as the gold standard.
Whether you work in investment, development, property asset
management, transactional or professional advisory services
there is a suitable pathway to RICS membership for you.
As well as offering the gold professional qualification, RICS
offers over 1,000 CPD events annually, including over 200 in
London and the south east. RICS Training offers 55 courses,
covering both business and technical skills, as well as an
online academy.
At a local level RICS membership offers invaluable networking
opportunities, both for newly qualified and trainee members,
as well as for more experienced members. Our Kent Local
Association is an active group which focuses on offering
inter-professional networking, site visits and social events for
the 3,000 RICS members in the county. If you would like to
find out more, please contact the Chairman, Julian Scannell
FRICS MCIArb on Julian.Scannell@watsonday.com.
To find out more about joining the profession, please email
RICS Membership Business Development Manager, Alison
Adams on: aadams@rics.org.
Jerry Percy MRICS
Chairman, RICS South East Regional Board
Expert Voice for professional landlords*
Confidence in the property sector has seen a welcome
upturn in the first half of 2012, bringing with it the prospect
of growth, according to the findings of the recently released
Commercial Property Confidence Monitor survey by Lloyds
TSB Commercial. In particular the survey highlights the
strength of the private rental sector, and our team is helping
our customers to grasp this opportunity.
We have a team of 100 property relationship managers
across Great Britain, each one managing a portfolio of
property businesses (landlords, letting agencies and property
developers). Our lending to the sector is 13 per cent up on
the year and we want to develop new relationships with
landlords for whom property management is their business.
Our approach to our customers tends to differ from that of
traditional buy to let (BTL) lenders in that we seek an in depth
understanding of the business strategy, profits and cash flows
as opposed to a formulaic loan to value (LTV), income multiplier
approach. Our approach enables us to provide support to
our customers throughout the economic cycle and we have a
range of financial products available to meet customers’ needs.
Although not always the case, we often find that employed
individuals for whom property investment is a side line are
better suited to BTL lenders such as our sister company
B M Solutions.
Sector knowledge
To help support our property customers, at Lloyds
TSB Commercial our property managers have a sound
understanding of the opportunities and challenges facing the
private rental sector. Our team undergo regular training and
by working closely with organisations such as NLA we keep
our knowledge up to date and endeavour to represent the
views of ours customers.
Now could be the time to act in order to secure growth
opportunities and we would encourage firms to take full
advantage of the guidance and support available to them
from both their lender as well as from business mentoring
and development agencies.
Funding options
There is a range of lending products available to SMEs,
from traditional term loans to newer funding options such
as recently launched “Lloyds Funding for Lending” offer
from Lloyds Banking Group, which utilises the government’s
Funding for Lending Scheme, and will allow UK businesses
to benefit from reduced funding costs.
Designed to boost demand and encourage investment,
the scheme offers a one per cent reduction in the interest
rate for new business loans and hire purchase, and will be
available to all SME and mid market customers, regardless
of the sector that they operate in.
Additionally, the government-backed Enterprise Finance
Guarantee (EFG) scheme is an ideal funding option for firms
who have a viable business proposal, but lack the security to
secure conventional funding.
There’s a wide range of funding options available to businesses,
so it’s worth discussing the lending available with your bank.
Martin Levy
Senior Manager, Lloyds TSB Commercial in Kent & East Sussex
* professional landlords are defined as property businesses owning
10 or more investment properties
30
KENT PROPERTY MARKET 2012

6 Alexander Grove, Kings Hill (credit Liberty Property Trust)
Legal update
Property and planning have been in the headlines a lot this
year, with the government looking for initiatives to stimulate
the economy. Many consider that if the government gets it
right, then changes to planning policy could help bring the
country out of recession.
Vince Cable has suggested that we take lessons from the
1930s and build our way out of the recession.
The government has also suggested affordable housing
‘holidays’ to allay concerns that policies to provide or pay
for affordable housing stall developments.
In addition, the past year has seen the introduction of the
National Planning Policy Framework (NPPF) and some local
authorities take up the Community Infrastructure Levy (CIL).
At the heart of NPPF is the presumption in favour of
sustainable development. There is, however, no concise
definition of the presumption and so we are likely to see
differing interpretations from decision makers trying to find
the correct balance of competing interests and influences.
So far, CIL has been implemented by few local authorities,
none of which are in Kent. CIL is unlikely to cover
infrastructure costs in North Kent and East Kent, therefore
the challenge is to find innovative funding solutions in order
to realise the opportunities there.
High streets and town centres have also been in the news
following Mary Portas’s review at the end of last year. Some
towns including Ashford, Dartford, Margate and Medway
have benefited from bonus funds for projects aimed at
boosting their retail sectors. This injection of cash is to
be welcomed but, whether or not it fixes the underlying
problems of the decline of some high streets remains to
be seen. It would be fantastic if those fortunate towns can
make something of the money they receive sending the right
signal to the rest of the country that by working together,
stakeholders can make town centres and high streets once
again attractive to businesses and consumers.
Richard Ellard
Partner, Thomson Snell & Passmore
31

St. Pancras
International Station
LONDON
Biggin Hill
M25
5
4
14
12
15
16
DARTFORD 13 17
Ebbsfleet
2
International Station
GRAVESEND
M25
3
M26
SEVENOAKS
ESSEX
Thames Europort
M20
2 3
2a
A2016
A20
20
A26
A226
A228
4
1
M20
30
35
4
29
5
2
MEDWAY
18
Rochester
3
6
M2
A278
5 6
19 7
21
A228
4
8
MAIDSTONE
Zeebrugge
Dunkirk
Vlissingen
28
Thamesport
A2
5
27
26
SITTINGBOURNE
33
Sheerness
SHEERNESS
KENT
M20
10
A20
11
32
34
31
International Deep Sea Routes
Zeebrugge
FAVERSHAM
37
A251
6
7
A252
A28
WHITSTABLE
36
A290
A299
HERNE BAY
3
A291
CANTERBURY
A2
0 5
10 Miles
0 5
Kent International Airport
A257
MARGATE
23
24
25
DEAL
22
38
10 Kms
A255
RAMSGATE
Ramsgate New Port
Ostend
TONBRIDGE
TUNBRIDGE
WELLS
A28
A274
1
9
Ashford
International Station
A28
A2070
2
10
ASHFORD
9
11
8
11a 12 13
FOLKESTONE
DOVER
7
Dover
Dunkirk
Strategic Developments
Motorway
CHANNEL TUNNEL
17
Business Park
Dual Carriageway
Calais
4
5
10
1
1
Mixed Use
Regeneration
Industrial
Green Energy Park
Science Park
8
Main Road
High Speed 1
Domestic Rail Routes
Ferry/Freight Routes
Airport
Ports
Motorway Junctions
EAST SUSSEX
A259
A259
London
Ashford
Airport
Boulogne
Calais
FRANCE
32
KENT PROPERTY MARKET 2012

STRATEGIC DEVELOPMENTS
Useage codes for strategic sites:
A1 Shops & retail
B1 Offices, light industry
B2 General industrial
B8 Warehouses, distribution
C1 Hotels
D1 Education, crèches
D2 Leisure
R Residential
Sui Generis Petrol station, car showroom
Map No. Scheme Location Usage Contact Website
1 Eureka Business Park Ashford B1
Knight Frank, 020 7629 8171 / Bidwells, 01223 841841 /
Martine Waghorn, 01622 672233
2 Waterbrook Park Ashford B1, B2, B8, Sui Generis GSE Waterbrook Ltd, 01233 501301 -
www.eurekapark.co.uk
3 Altira Business Park Herne Bay B1, B2, B8
4 Chatham Maritime / Chatham Waters Chatham A1, B1, C1, D1, D2, R
Kitewood Commercial, 01732 886962 /
Core Commercial, 01892 834483 / Sinclair Clark, 020 7494 9399
Hanover Green, 020 3130 6404 / Watson Day, 01634 668000 /
The Peel Group, 0161 629 8200
www.altirapark.co.uk
www.chathamwaters.com
5 Chatham Centre and Waterfront Chatham A1, B1, C1, R Medway Council, 01634 338171 -
6 Lodge Hill, Chattenden Chatham A1, R Land Securities plc, 020 77024 3750 / PPS Group, 020 7529 1712 www.lodgehill.info
7 White Cliffs Business Park Dover B1, B2, B8 Hardmans & Co, 01304 373922 www.whitecliffsdover.com
8 Hawkinge West Folkestone B1, B8 SW&P, 01303 226622 -
9 Link Enterprise Park Hythe B1, B2, B8
Valad & Benchmark Estates, 01622 669888 /
Core Commercial, 01892 834483 / Caxtons, 01474 567666
www.linkpark.co.uk
10 Queenborough/Rushenden & Neats Court Isle of Sheppey B1, B8, C1, Sui Generis
Smiths Gore, 01732 879050 / Cluttons LLP, 01622 756000 /
Watson Day, 01634 668000
-
11 Sheerness Port Isle of Sheppey B1, B2, B8 Peel Ports, 0151 949 6000 www.medwayports.com/sheerness
12 Crossways Point, Crossways Kent Thameside B1 Altus Edwin Hill, 01322 285588 / Savills, 020 7499 8644 www.crosswayspoint.co.uk
13 Ebbsfleet Valley Kent Thameside A1, B1, D2, R Land Securities plc, 020 7413 9000 / CBRE, 020 7182 2016 www.ebbsfleetvalley.co.uk
14 The Bridge Kent Thameside B1, B8 Jones Lang LaSalle, 020 7399 5355 / CBRE, 020 7182 2492 www.thebridgedartford.co.uk
15 ProLogis Park, Littlebrook Kent Thameside B2, B8 CB Richard Ellis, 020 7182 2000 / Colliers CRE, 020 7935 4499 www.prologislittlebrook.co.uk
16 Dartford North Site Kent Thameside - Cushman & Wakefield, 020 7152 5777 -
17 Northfleet Embankment Kent Thameside B2, B8 Lafarge Cement, 01634 247156 -
18 Aylesford Commercial Park Aylesford B2, B8 Altus Edwin Hill, 01322 285588 / CBRE, 020 7182 2565 www.goodmanlogistics.co.uk
19 Eclipse Business Park Maidstone B1
Knight Frank, 020 7629 8171 / Sibley Pares, 01622 673086 /
Gallagher Group, 01622 716543
www.eclipsepark.co.uk
33

STRATEGIC DEVELOPMENTS
Useage codes for strategic sites:
A1 Shops & retail
B1 Offices, light industry
B2 General industrial
B8 Warehouses, distribution
C1 Hotels
D1 Education, crèches
D2 Leisure
R Residential
Sui Generis Petrol station, car showroom
Map No. Scheme Location Usage Contact Website
20 Kings Hill Maidstone A1, B1, D2, R
Liberty Property Trust UK, 01732 223426 /
Altus Edwin Hill, 01322 285588 / Knight Frank, 020 7629 8171 /
Hanover Green, 020 3130 6400
www.kings-hill.com
21 Maidstone Medical Campus at Newnham Park Maidstone B1, C1, C2 DHA Planning, 01622 776226 www.maidstone-medical.co.uk
22 EuroKent Business Park Ramsgate A1, B1, B8, D2
Rosefarm Estates plc, 01243 785151 /
East Kent Opportunities, 01622 221380
-
23a Manston Business Park Ramsgate B1, B2, B8 East Kent Opportunities, 01622 221380 / Savills, 01732 789750 -
23b China Gateway Manston Business Park Ramsgate B1, B2, B8 China Gateway International Plc, 01843 822444 www.chinagatewayinfo.com
24 Richborough Energy Park Sandwich B2, B8 Cascade PR, 020 7871 3565 www.richboroughenergypark.co.uk
25 Discovery Park Sandwich B1, B2, B8 Discovery Park Ltd, info@discovery-park.co.uk www.discovery-park.co.uk
26 Isle of Grain Rochester B1, B2, B8
Medway Council, 01634 338171 /
National Grid Property Ltd, 01926 654720
-
27 London Thamesport Rochester B1, B2, B8 Hutchison Ports, 01394 604500 www.londonthamesport.co.uk
28 Kingsnorth Commercial Park Rochester B1, B2, B8
CBRE, 020 7182 2565 / Colliers CRE, 020 7935 4499 / Goodman,
0121 5068100 / Piers Pollard Chartered Surveyors, 01728 861989
www.kingsnorthcommercialpark.com
29 Rochester Riverside Rochester B1, C1, R Medway Council, 01634 338171 www.medway.gov.uk
30 Temple Park, Strood Strood B1, B2, B8 GVA Grimley, 020 7911 2121/ Watson Day, 01634 668000 www.templeparkstrood.co.uk
31 Eurolink Business Park Sittingbourne B1, B2, B8
32 G Park Sittingbourne Sittingbourne B1, B8
33 Kent Science Park Sittingbourne B1
34 Kemsley Park Sittingbourne B1, B2, B8
Harrisons Chartered Surveyors, 01634 265900 /
Watson Day, 01634 668000
-
CBRE, 020 7182 2000 / GVA Grimley, 020 7895 1515 /
Savills, 020 7499 8644
Kent Science Park, 01795 411500/
Jones Lang LaSalle, 020 3147 6040 / Sinclair Clark, 020 7494 9399
GVA Grimley, 020 7911 2267 / Watson Day 01634 668000 /
Harrisons Surveyors, 01634 265900
-
www.gpark-sittingbourne.com
www.kentsciencepark.co.uk
35 Strood and Temple Waterfront Strood A1, B1, R Medway Council, 01634 338171 www.medway.gov.uk
36 Estuary View Whitstable B1, C2 George Wilson Holdings, 01227 263077 -
37 The Foundry Business Park Faversham B1, B2, B8 Quinn Estates, 01227 831212 / Cluttons LLP, 01622 756000 www.quinn-estates.com/commercial
38 Deal Business Park Deal B1, B2, B8 Quinn Estates, 01227 831212 www.quinn-estates.com/commercial
34
KENT PROPERTY MARKET 2012

CONTACT DETAILS
Written and compiled by:
Kent County Council
For further advice, assistance and information on
development opportunities, contact:
Nigel Smith, Head of Development Investment
Kent County Council, Invicta House,
Maidstone, Kent ME14 1XX
Tel: 01622 221866 Fax: 01622 691418
Email: reinfo@kent.gov.uk
www.kent.gov.uk
Cluttons LLP
Founded in 1765, Cluttons LLP is a leading firm of
chartered surveyors providing an extensive range of
property related services with a presence in the UK,
Europe, Middle East, Asia Pacific and South Africa.
The local office in Kent provides the full compliment
of service lines.
Alison Owen, Partner
26-28 Albion Place, Maidstone,
Kent ME14 5DZ
Tel: 01622 756000 Fax: 01622 695536
Email: info@cluttons.com
www.cluttons.com
Portman House, 2 Portman Street,
London W1H 6DU
Tel: 020 7408 1010 Fax: 020 7629 3263
Locate in Kent Ltd
As the single point of contact for all companies looking to
expand or relocate in Kent and Medway, Locate in Kent
provides a comprehensive, confidential and free business
relocation and expansion advisory service.
Paul Wookey, Chief Executive
35 Kings Hill Avenue, Kings Hill,
West Malling, Kent ME19 4DG
Tel: 01732 520700 Fax: 01732 520701
Email: enquiries@locateinkent.com
www.locateinkent.com
Additional contributors:
Lloyds TSB Commercial
If you’d like to find out how you can benefit from our
sector expertise, please contact:
Martin Levy, Senior Manager Commercial – Kent & East
Sussex Key Markets
Lloyds TSB Commercial, 2nd Floor, 18 Week Street,
Maidstone, Kent ME14 1RW
Tel: 07764 287500
E-Mail: martin.levy@lloydstsb.co.uk
Or visit our website: lloydstsb.com/property
(Lloyds TSB Commercial is a trading name of Lloyds TSB
Bank and Lloyds TSB Scotland plc and serves customers
with an annual turnover of up to £15M)
Royal Institution of Chartered Surveyors
The leading professional body on all aspects of real estate,
property, construction and associated environmental issues.
Jeremy Percy, Chairman,
RICS South East Regional Board
Gleeds (London)
95 New Cavendish Street
London, W1W 6XF
T: 020 7631 7000
Email: jerry.percy@gleeds.co.uk
Thomson Snell & Passmore
Thomson Snell & Passmore is a law firm with a reputation
for providing high quality, intelligent advice. We provide
a legal service that is comprehensive, considered and
confident. We build long-term relationships by encouraging
a culture of respect, understanding and excellence.
Richard Ellard, Partner
Thomson Snell & Passmore
3 Lonsdale Gardens
Tunbridge Wells
Kent
TN1 1NX
T: 01892 510000
www.ts-p.co.uk
35

ACKNOWLEDGEMENTS
The compilers of this report are grateful for the assistance, information and data provided by the following organisations in London and Kent:
Altus Edwin Hill
Core Commercial
Liberty Property Trust UK Ltd
Smiths Gore
Kent district councils:
Atrium Surveyors
Bidwells
Bracketts
Brian Cradick & Co
Broadlands Chartered Surveyors
and Property Consultants
BTF
Caxtons
Clive Emson
Colliers CRE
Durlings
Frogmore Property Company Ltd
Gallagher Group
George Wilson Holdings Ltd
Glenny LLP
Harrisons Chartered Surveyors
Ibbett Mosely
Karrisons
Kent Science Park
Martine Waghorn
McMeeking Chartered Surveyors
Michael Parkes
Pearson Gore
Quinn Estates
Ramac Holdings Ltd
Rosefarm Estates Plc
Savills
Sibley Pares
Smith-Woolley & Perry
Strutt and Parker
Taylor Riley
Turkey Mill Investments Ltd
Valad and Benchmark Estates
Visit Kent
Watson Day
WCR Property Ltd
Ashford, Canterbury, Dartford,
Dover, Gravesham, Maidstone,
Sevenoaks, Shepway, Swale,
Thanet, Tonbridge & Malling
and Tunbridge Wells
Medway Council
And a special thanks to Liberty
Property Trust UK who provided
32 Tower View, Kings Hill for the
launch of the report on 18 October
2012. We also thank Thomson,
Snell and Passmore, Lloyds TSB,
RICS and Maidstone Borough
Council for their support.
Aldi, Maidstone (credit Gallagher Group)
Waitrose, Kings Hill (credit Liberty Property Trust)
36
KENT PROPERTY MARKET 2012

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37

www.kentpropertymarket.com
This report has been carefully prepared. However it is intended for general guidance only and neither Cluttons LLP, Kent County
Council, Locate in Kent nor RICS can guarantee that there are no errors or omissions. The information, forecasts and opinions set
out herein should not be relied on to replace professional advice on specific matters. No part of this report should be published,
reproduced or referred to without prior permission of Cluttons LLP, Kent County Council and Locate in Kent.
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