Property Loan Shortage Addressed by Markham Vale Developer

Sheffield-based Henry Boot Developments Ltd has launched a pioneering scheme to enable businesses that are unable to secure funding due to the credit crunch to relocate to premises at their Markham Vale commercial park.

The “Try Before You Buy” scheme will allow businesses to fix the purchase price of industrial accommodation, then lease it until they can obtain finance to buy it.

The offer applies to the speculative premises at Markham Vale, which are due for completion in April this year. “Waterloo Court” offers 51,500 sq.ft of floorspace, with units ranging in size from 3,000 sq. ft to 15,000 sq. ft. The development has been awarded a BREEAM (*) rating of “Very Good”, and boasts photovoltaic panels to reduce energy consumption and running costs. Each unit also benefits from full height glazed entrance and dedicated car parking within a secure yard.

Henry Boot’s developments surveyor, Ben Ward comments: “We have significant interest in this scheme due to the wealth of benefits it offers, and our `Try Before You Buy” facility is a way of helping potential occupiers to weather the economic downturn and move their business forward cost effectively.


“Many potential buyers are being stalled because banks no longer have the lending flexibility to provide the deposits which small businesses need, so, as responsible developer, we are providing flexibility over the occupation of these units instead.

“As a result, potential buyers can fix the purchase price now and take a lease with an option to buy in the first three years, by which time even the gloomiest forecasts are that the economy will be growing again. If, for any reason, they are unable to buy in this period, they can continue to lease.”

Ben Ward says that the businesses which are potential occupiers are able to make a significant contribution to the local economy, and the scheme aims to prevent them being held back by being trapped in inefficient, or cramped premises during the downturn due to lack of bank funding.

He says: “This initiative offers them an opportunity to occupy modern, energy-efficient premises at a competitive rent which, in many cases, will be the same price as their former premises and, because the units are new, there is a significantly lower maintenance liability.”

A partner in the industrial team of joint agents for the scheme, property consultants, King Sturge, Leeds, Richard Harris, says: “This is a bold and innovative scheme by Henry Boot which effectively gives buyers a chance to buy now and pay later when the economy improves, while gaining access to high-quality space. I have not heard of anything else like it in this region and am sure it will prove attractive.”

Markham Vale, located off junction 29A of the M1 motorway will offer over 3 million square feet of commercial and industrial accommodation. Waterloo Court represents the first tranche of speculative build, and is ideal for local and regional businesses who want to work from clean, modern energy-efficient premises that benefit from close proximity to the motorway network and major arterial routes.

For further information, please contact Richard Harris at King Sturge on 0113 244 1441.

* BREEAM (Building Research Establishments Environmental Assessment Method) is the development industry’s assessment of a building’s environmental sustainability and is widely regarded as the measure of best practice in the UK with assessments carried out by independent assessors.

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