32-34 Eagle Wharf Road
Employment Strategy
Aldridge and 32-34 Eagle Wharf Road
Ltd
April
July 2015
The client for this scheme is a joint partnership between the existing occupiers Aldridge and
32-34 Eagle Wharf Road Ltd who are part of the Aitch Group. Aitch Group is a dynamic
commercial and residential developer with 20 years’ experience of delivering and managing
a diverse property portfolio. Established in 1995, Aitch Group specialises in innovative
development and has a proven track record of success.
At Aitch we take pride in our approach to planning and collaborative working and believe the
team we have in place is one of our biggest strengths. Our in-house expertise is
complemented by the use of leading industry consultants to create bespoke project teams of
the highest calibre. Aitch Group has a commitment to sustainable development and of
constructing buildings to the highest standards. Our portfolio comprises of significant assets
including offices, warehouses and residential homes. Our planning and development projects
currently include infill sites from one residential unit, through to key 500 unit mixed use
schemes in the Thames Gateway Opportunity Area. We have over 750 residential units and
100,000 sqft. of commercial space in planning and 150 homes under construction.
The Aitch Group currently has an asset value of £250 million comprising a diverse portfolio of
residential and commercial properties, which the Property Management Company looks
after. The commercial property portfolio includes primary, secondary and tertiary office
space, affordable work space / workshops and strategically located warehouses used for
storage and distribution. The Property Management team are highly experienced and deal
with all stages of the process including: identification of potential new sites, input into the
planning and design stages, marketing, securing tenants and managing / maintaining the
properties.
Aitch Group recognises that in the current economic climate it is extremely important to
deliver the “right type” of commercial space for a specific area. There is no point delivering
commercial floor space which is not in demand as it does not benefit the Group as empty
stock only burdens the Property Management company. The Group therefore works together
to ensure that when sites are developed they stand the best possible chance of a tenant(s)
being found to occupy the building in the shortest time frame possible.
32-34 Eagle Wharf Rd: Employment Strategy
Contents
1.0
Introduction
7
Structure .......................................................................................................... 7
2.0
Policy Context
8
National Planning Policy Framework ................................................................ 8
The London Plan.............................................................................................. 8
Hackney Core Strategy (2010) ......................................................................... 8
Hackney Development Management Local Plan Publication Document (2013) 9
3.0
Proposed Development
10
Design Specification for Employment Workspace .......................................... 10
4.0
Workspace Management
12
5.0
Economic Impacts
14
6.0
Overall Conclusions
16
Appendix 1 – Marketing Note prepared by Burlington Partners
32-34 Eagle Wharf Rd: Employment Strategy
1.0
1.1
1.2
Introduction
This Employment Strategy has been prepared by Aitch Group in conjunction
with Aitch Management on behalf of Aldridge and 32-34 Eagle Wharf Road Ltd
to accompany a planning application for the redevelopment of 32-34 Eagle
Wharf Road. The description of development is as follows:
“Demolition of existing buildings and erection of a new 5 to 6 storey building
comprising 2,412sqm of commercial space (use class B8 and B1), 48
residential dwellings (16 x 1 bed, 20 x 2 bed and 12 x 3 bed), cycle parking
and refuse/recycling stores”
1.3
The site extends to 0.16 hectares and comprises a warehouse unit, bounded
by Eagle Wharf Road, Bracklyn Street and Parr Street. The buildings on the
site are currently in use as Aldridge Security Distribution.
1.4
The report should be considered in the context of the National Planning Policy
Framework (NPPF) of March 2012, which supports the provision of economic
growth and housing. It emphasises the purpose of the planning system ‘to
contribute to the achievement of sustainable development’ (para 6). Different
aspects of sustainable development are: ‘economic’ - contributing to a strong
and competitive economy; ‘social’ - supporting strong communities and
providing the supply of housing required for present and future generations;
and ‘environmental’ - protecting and enhancing the environment.
1.5
A Core Planning Principle of the NPPF is that ‘every effort should be made
objectively to identify and then meet the housing, business and other
development needs of an area, and respond positively’ (para 17). The NPPF
also aims for planning to “Proactively drive and support sustainable economic
development to deliver the homes, business … and thriving local places that
the country needs…” The purpose of this report, therefore, is to set out how
the Eagle Wharf Road development, and in particular the commercial uses,
will contribute to sustainable economic development in the area. It provides
detail on the approach to the design and future management of the
commercial accommodation.
Structure
1.6
The report consists of the following sections:

Chapter 2: set out the current and emerging policy context for the
employment strategy for the site;

Chapter 3: describes the type of development proposed including the
design specification of the workshops;

Chapter 4: sets out the management strategy for the future operation of
the workshops;

Chapter 5: assesses the employment and other economic benefits
arising from the scheme; and

Chapter 6: draws overall conclusions on the employment strategy and
economic impacts of the proposal.
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32-34 Eagle Wharf Rd: Employment Strategy
2.0
2.1
Policy Context
This chapter sets out the key planning policies of relevance to the employment
strategy for the redevelopment of the site at 32-34 Eagle Wharf Road.
National Planning Policy Framework
2.2
National Planning Policy Framework (NPPF) was published on 27 March
2012. It sets out the Government’s planning policies for England and replaces
all previous PPGs/PPSs. It states that the purpose of the planning system is
‘to contribute to the achievement of sustainable development’ (para 6).
Paragraph 7 sets out the three dimensions of sustainable development:
‘economic’ in contributing to a strong and competitive economy; ‘social’ in
supporting strong communities and providing the supply of housing required
for present and future generations; and ‘environmental’ in protecting and
enhancing the environment.
2.3
Under the NPPF, it is incumbent upon decision-making authorities to support
applications for sustainable development wherever possible and without delay,
particularly where that development will help meet the challenges of economic
growth and housing need.
2.4
Core Planning Principles (para 17) include:

proactively drive and support sustainable economic development to
deliver the homes, business and industrial units, infrastructure and
thriving local places that the country needs…

promote mixed use developments, and encourage multiple benefits from
the use of land in urban and rural areas…
The London Plan
2.5
2.6
The London Plan (Consolidation with Alterations since 2011; published March
2015) provides the London-wide planning policy of relevance to the proposed
development. It promotes a sustainable and compact model of mixed use
development which utilises accessible brownfield urban land efficiently,
creates jobs and maximises housing outputs.
The London Plan’s priorities are the delivery of employment opportunities and
economic growth and maximising housing delivery while promoting high
standards of design and environmental and social sustainability. It places a
firm emphasis on growth, intensification and housing delivery in London’s
opportunity areas.
Hackney Core Strategy (2010)
2.7
Policy CS17 states The Council will encourage economic development, growth
and promotion of effective use of land through the identification and
regeneration of sites for employment generating uses, the promotion of
employment clusters and the encouragement of mixed use development with
a strong viable employment component that meets the identified needs of the
area.
2.8
Policy CS18 state The Council will protect employment land and floorspace
last used for employment purposes anywhere in the borough. Redevelopment
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32-34 Eagle Wharf Rd: Employment Strategy
of existing employment land and floorspace may be allowed, as provided for in
Policy 17 (Economic Development), when it will clearly contribute to:
addressing worklessness; improving business function and attractiveness;
enhancing the specification of business premises; improving the immediate
area.
Hackney Development Management Local Plan Publication Document
(2013)
2.9
Policy DM14 states when considering the redevelopment of sites, applicants
must firstly consider the commercial opportunities and potential of that land
and floorspace, and demonstrate in the first instance that the maximum
economically feasible amount of employment land and floorspace possible has
been examined through the submission of marketing evidence.
2.10
Policy DM17 states B1, B2 and B8 uses are appropriate uses within PEAs. A
Class, C1, C3 and D1 uses are considered acceptable within PEAs, subject to
the following criteria: (i) Proposals must satisfy the requirements of Policies
DM7, DM14, DM15 and DM16; (ii) C1 and C3 uses as part of mixed use
schemes are acceptable in the following circumstances: • As part of an
employment-led mixed use development including conversion schemes where
proposals for such development must ensure that the commercial use is the
primary use, in that the majority of floorspace should be for such use; and •
Appropriate to the characteristics and functioning of the site and will not
compromise the on-going operations of businesses in the PEA.
In exceptional circumstances, such as for proposals within Dalston PEA, and
where there are strong planning reasons or other material considerations, the
amount of C1 and C3 floorspace may exceed commercial floorspace if
meeting the second bulleted criteria above. The amount of commercial
floorspace proposed should match existing or preferably result in a significant
uplift in floorspace.
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32-34 Eagle Wharf Rd: Employment Strategy
3.0
Proposed Development
3.1
The site is located in Hoxton within the London Borough of Hackney. The site
extends to 0.16 hectares and comprises a warehouse unit, bounded by Eagle
Wharf Road, Bracklyn Street and Parr Street. The buildings on the site are
currently used by Aldridge Security Distribution.
3.2
The proposed development is for the demolition of existing dilapidated
buildings and erection of a single building to provide 2,412sqm of commercial
space (B8 and B1 Use Classes), 48 residential units, cycle parking and
associated works.
3.3
A full description of the proposed development is provided in the Design and
Access Statement prepared by Buckley Grey Yeoman Architects which
supports this planning application.
3.4
The application proposes the creation of a high-quality mixed-use
development, containing a number of elements. The existing building would
be demolished and a mixed use new building erected in its place. This would
be an inverted L shape, as a single block. At lower ground and ground floor,
there would be located the 2,412 sqm of B8 and B1 business space, and
above would be the 48 dwellings. The 48 residential units consist of 16 x no. 1
bedroom units; 20 x no. 2 bedroom units; and, 12 x no. 3 bedroom units.
3.5
This 2,412 sqm compares to the existing floorspace on site which would be
demolished which is 2,305 sqm. As such, there is 105% reprovision of
existing commercial floorspace.
3.6
Aldridge Security Distribution will re-occupy the lower ground and ground floor
space fronting onto Parr Street.
3.7
On the remainder of the lower ground and ground floors facing onto Bracklyn
Street, this unit could accommodate a range of small and micro businesses,
particularly those from the TMT sector.
Design Specification for Employment Workspace
3.8
3.9
In order to ensure that the employment workspace provided within the
development is flexible and responds to the local economic needs of micro
and small businesses the following design features have been incorporated:

Flexibility – the unit can offer a range of sizes and openings on to the
street.

Access – both ground floor units have street access.

Heights – the lower ground floor has a height of 3.4m from floor to
underside of ceiling and the ground floor is 4m, with services exposed.
The commercial space will be built to a shell and core finish. It is recognised
that in order to encourage end users to take floor space it may be necessary
to propose incentives. In the past on schemes aimed at similar types of end
users Aitch Group have offered a range of incentives including:


CCTV
Free High speed Broadband / Wifi access (for a specified period)
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32-34 Eagle Wharf Rd: Employment Strategy


Access to (credit with) a Street Car or Car Club scheme (for a specified
period)
Installation of server storage / security cage
Image 1: Curtain Road, Shoreditch, Hackney: 7 Apartments and 24,000sqft of Commercial
Space.
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32-34 Eagle Wharf Rd: Employment Strategy
4.0
Workspace Management
4.1
The management of the Eagle Wharf Road development will be undertaken by
Aitch Group who has extensive experience through their property
management company of managing flexible employment workspace in other
similar development schemes in the area.
4.2
The company has a diverse portfolio of commercial spaces, including small
and micro businesses. The majority of these spaces have been delivered as
part of mixed use redevelopment schemes. It is the intention that Aitch group
will retain the freehold of the site and manage the commercial space.
Therefore, the company will retain a long-term interest in ensuring the
employment space is successfully occupied.
4.3
Aitch Property Management will therefore work closely with the instructed
commercial agents to help find the best tenants for the development, agree
tenancies and address any management issues.
4.4
Track Record
4.5
4.6
4.7
4.8
4.9
The company’s commercial property portfolio, which is over 360,000 sqft of
floor space made up of a number of different premises spread across London.
The portfolio is a diverse range of commercial uses, types and sizes. It
includes a large scale storage and distribution facility through to small scale
served office space for micro sized businesses and also included an art
gallery. Tenants range from small companies with one or two employees, but
also includes tenants such as Tesco’s and the NHS.
Some of the stock has been purchased as an investment but the majority has
been delivered as part of mixed use redevelopments where Aitch have bought
land, secured planning permission and then built out the development. Aitch
in the majority of instances will retain the freehold of all developments and
manage the commercial space.
We currently have 24,000sqft of office space in Shoreditch (Image 1) we are
marketing - there has been a wide range of interest from numerous companies
mainly from the creative industries / media sector. Currently we are marketing
for either one tenant to take the whole space or for individual floors. We also
are just bringing The Textile Building to market (Image 2). Phase two of the
redevelopment of the former Burberry Factory in Hackney includes 15,000 sqft
of commercial floor space in the ground floor and basement of the former
factory. Currently we are in negotiations with a Stitching Academy to take an
element of the floor space and the remaining element we will run as part of our
My Work Hub company, which provides for micro and small start-up
businesses, aimed at the fashion industry.
Last year we delivered a small mixed use scheme in Hoxton which included
1,000 sqft of office space. We found an IT training company to let the space
and as part of an incentive package we secured planning permission for an
alternative use class and included a fitting out plan.
In the current pipe line we have just under 100,000 sqft of commercial floor
being delivered over the next 4 years. This is predominately in East London
but also includes sites in Deptford & Kilburn.
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32-34 Eagle Wharf Rd: Employment Strategy
4.10
Prior to purchasing sites and then through the planning and development
process we take advice from local agents and our own property management
company with regard to supply and demand in order to fine tune our vision for
the commercial space we will deliver. Not only do we take advice on demand
but in appropriate cases we find tenants prior to completion and deliver a
bespoke package. This means the amount of floor space, size of units, layout
and style of commercial space we deliver stands the best chance possible to
be occupied soon after completion.
Image 2: Chatham Place (The Fashion Hub), Hackney Central, for 174 Apartments and
50,000sqft of Commercial Space.
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32-34 Eagle Wharf Rd: Employment Strategy
5.0
Economic Impacts
5.1
This section considers the economic impacts that will arise from the operation
of the proposed development, including the direct employment generation, the
additional resident spending and local employment that will be supported once
the development is occupied.
5.2
The proposed development will provide a significant amount of flexible
employment generating floorspace on the site, which is expected to result in
an uplift in the number of jobs compared to those currently provided at the site.
Direct employment
5.3
The number of jobs generated within the development has been calculated by
applying the average job / floorspace ratio to the amount of floorspace
proposed (2,412 sqm). This implies that the development would be expected
to create up to 130 direct jobs (FTE).
Table 5.1
Gross Job Generation of Proposed Development
Proposed Use
Floorspace
(m2)
Employment
Density
B8/B1
B1
1027
1385
1 job per 70sqm
1 job per 12sqm
No. of Jobs
Generated
(FTE)
15
115
Source: Employment Densities Update, HCA/OffPat, Dec 2010
5.4
The existing FTE employment levels are significantly lower than the
development’s prospective employment levels. Consequently, the scheme will
generate a significant uplift in employment provision on site.
5.5
In addition to the direct operational employment, the retail, leisure and other
expenditure of the residents of the proposed 48 dwelling units will support
additional jobs in shops, restaurants and other services within Hoxton.
Indirect and induced employment
5.6
Indirect jobs will be supported by companies based at the application site
purchasing goods, supplies and services from firms in the surrounding area.
The spending of wages by both employees of firms on the site and of the local
firms supplying goods to these companies will also support induced
employment in local shops, services and other firms.
5.7
Based on the characteristics of the proposed development, its local economic
context and labour market, a combined employment multiplier of 1.2 is
considered appropriate to estimate both indirect and induced employment for
the local area. This multiplier is based on the latest English Partnerships’
guidance on calculating the additionally of economic regeneration projects.
5.8
If it is assumed that all jobs generated by the flexible commercial space of the
scheme only will be additional, this local area multiplier can be applied to the
estimated net additional direct FTE jobs. This results in a significant further
‘spin-off’ FTE job in local services and other firms in the area.
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32-34 Eagle Wharf Rd: Employment Strategy
5.9
On this basis, the operational phase of the proposed development is estimated
to support, directly and indirectly, around 143 direct and indirect jobs in total
across London Borough of Hackney.
Conclusions
5.10
Overall, the proposals will provide uplift in employment opportunities to those
which exist on the site, in premises of far higher quality which will attract new
occupiers and encourage existing tenants to remain on the site. The long term,
employment-generating potential of the site will therefore be greatly enhanced.
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32-34 Eagle Wharf Rd: Employment Strategy
6.0
Overall Conclusions
6.1
Based on the analysis in the preceding section, the proposed development of
2,412 sqm flexible commercial floorspace and 48 residential units at Nos. 3234 Eagle Wharf Road will generate a range of economic and regeneration
benefits for Hoxton and the wider area.
6.2
In terms of employment up to c. 130 jobs, will be created on the site; this
represents a net gain in permanent job opportunities compared with the
current situation; a further significant amount of indirect jobs will be created as
a result of the spending of commercial and residential occupiers of the
scheme.
6.3
The scheme will replace dilapidated, low grade, inefficient and inconvenient
accommodation with high quality and flexible units.
The commercial
accommodation has been designed to include units of varying scale. The
design of the units and the flexibility they will offer is entirely consistent with
the strategic and local policy objectives to provide workshops for small to
medium sized enterprises, especially those in the cultural and creative
industries.
6.4
In conclusion, the development will deliver a range of significant economic,
housing and regeneration benefits. The scheme will strengthen and diversify
employment, bring sustained economic vitality and vibrancy, and contribute to
local sustained employment provision in the area in accordance with the
NPPF, the London Plan, LBH Core Strategy, and the emerging Development
Management local plan.
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