Steve Pain gets the lowdown on a Birmingham developer aiming to recycle brownfield sites.

A Birmingham developer has launched a nationwide drive to bring brownfield sites back into use.

Richborough Estates, based in Waterloo Street, has secured approval for 130 homes on 25 acres that the firm rescued from the receivers when a metal pressing company went into receivership in October 2004.

At that time the site consisted of 157,000 sq ft of industrial units and ancillary office space on the site near Congleton town centre in Cheshire.

Richborough director Paul Campbell said: “The buildings were dilapidated and the location was no longer suitable for employment purposes so we purchased the site with residential development in mind through the Local Development Framework.

“We proposed that the best use of the site would be a residential scheme, and we took an option on a further four acres of land to allow for expected highway improvements.”

Richborough says it is is keen to develop more former industrial sites as the UK housing shortage continues to dominate the political agenda. Owners of uneconomical or abandoned industrial sites could win out in the potentially lucrative brown field gold rush.

Richborough director Danny Parkinson said: “Business owners seeking to dispose of their business and land are often unaware of, or lack the professional support to realise, the potential for transforming their troublesome sites into truly valuable assets.

“They may currently have no real intention of selling or relocating but could re-assess their property situation and requirements to determine if value can be unlocked.”

Since 2003, Richborough Estates has been successful UK-wide in achieving valuable changes of use on industrial sites that would otherwise continue to decline in terms of visibility, viability, safety and ultimately, value.

Mr Parkinson added: “While large gains can be achieved if industrial land is suitable for a change to residential use or other higher value commercial uses, there are no guarantees and the planning system can be both bureaucratic and unpredictable.

“Richborough Estates can evaluate the prospects of achieving an uplift in value through the grant of planning consent and, where appropriate, pursue those consents at its own expense, on behalf of its clients, leaving business owners to focus on what they do best, which is running their business.”

Depending on the circumstances it can take years to drive a successful application through the planning maze. This delay often determines the formal business relationship Richborough Estates has with each land owner.

Paul Campbell said: “If a landowner is seeking a quick sale then we can purchase the property or land up-front with an additional payment being made subject to achieving a successful planning application.

“Conversely, a landowner who is flexible about the timing of payment may prefer to maximise their value by entering into an arrangement where a successful application could yield a higher proportion of the gain.

“Those business owners who operate a working site but nevertheless are seeking an exit from their business over time may prefer the option of a sale and lease-back arrangement.”

This choice releases equity to the owner to invest in the business or provide for their exit and provides Richborough with a regular income. Where necessary, Richborough can also assist with any relocation plans to new premises.

Danny Parkinson said: “Naturally, the condition of each site also determines its value and we employ professionals with extensive experience in remediating contaminated sites, dealing with unusual ecological issues such as protective measures for protected species, engineering challenges, environmental issues such as noise pollution and all associated costs.

“Despite the challenges, there are many hundreds of industrial sites with the potential for substantial gains in value. Finding the right partner with the expertise in planning, negotiation and development is the only way to maximise latent potential.”