1. Qualifications and Experience
1.1 My name is Richard David Standish Herbert.
1.2 I am a Fellow of The Royal Institution of Chartered
Surveyors and have been a member of the RlCS since 1979.
1.3 l am a Partner at Strutt and Parker, Chartered Surveyors, of
13 Hill Street London W1J 5LQ. I have been with Strutt and Parker
for 23 years, having been previously employed by Hillier Parker for
5 years.
1.4 Appendix I outlines the town centre
retail/mixed use projects I have personally been involved with
during my career.
1.5 I have acted for both developers and funding institutions
with regard to the development of town centre and out-of-town
retail schemes.
1.6 I advise investors and developers on all aspects of property
ownership and its development.
1.7 My Firm has been retained by CGNU to provide advice on
investment, development and agency matters as they relate to the
area known as Southgate, Bath. Specifically, my Firm has been
retained to provide advice on the development of Southgate by
CGNU.
1.8 In my evidence I have adopted the abbreviations and
definitions set out in the Glossary of Key Terms submitted as
CD10.9.
2. Introduction
2.1 Strutt & Parker as the development, investment and
agency advisor to CGNU has been involved since the Southgate land
holdings were acquired from the Prudential in 1995. I have been
personally involved in the project since that time.
2.2 Strutt & Parker is specifically instructed to negotiate
with individual parties who have current interests in the site to
be developed in order to enable the development to proceed.
2.3 We are also instructed as letting advisors both in
formulating a letting strategy, undertaking the pre-letting
negotiations and organising and undertaking (in the future) the
main letting campaign.
2.4 We are also a development consultant to CGNU for Southgate,
which encompasses a number of roles namely the assessment of
viability; the co-ordination of various discussions with current
occupiers; co-ordination of the letting interests and negotiation
with Bath & North East Somerset Council, to obtain a
commercially acceptable framework for the merging of the current
interests of CGNU and Bath & North East Somerset Council ("the
Council") within the site and the granting of a new long leasehold
interest to CGNU.
2.5 Our various roles involve us having close liaison with the
various other team members acting on behalf of CGNU.
3. Current Position with Objectors to the CPO
3.1 Network Rail Infrastructure Limited
3.1.1 Negotiations commenced with Lunson Mitchenall, Network
Rail's Advisors, in February 2002. Since that date there have been
many meetings and telephone discussions to resolve the basis to
take forward the works to rail station provided for in the planning
permission for the Southgate redevelopment and the associated
Section 106 Agreement.
3.1.2 The works principally involve:
a) The construction of a new 130 space car park within the
Southgate basement car park for sole use by rail commuters.
b) As soon as the new basement car park is completed, the
removal of the existing car park at track level on the north side
of the station, together with the ramp leading up to it. This
enables the rail station and the bus station to be linked by the
creation of a new civic piazza.
c) The refurbishment of existing vaults, opened up by the
removal of the car park ramp and which will front the newly created
civic space. This will enable these vaults to be used for potential
retail/restaurant/leisure uses.
d) The remodelling of the disabled car parking/drop off area1
short term stay car parking on the north and south of the existing
station and provision of new passenger lifts to both platforms.
e) The reconfiguration of vehicular access to the existing
station car park on the south side of the station.
3.1.3 Detailed Heads of Terms setting out how the works set out
in paragraph 3.1.2 will be undertaken have been issued. The
Agreement will ensure that the required number of commuter car
parking spaces is maintained by constructing the new car park prior
to demolishing the existing north side car park.
3.1.4 The basis on which the new car park will be owned and
operated has been set out and I believe is agreed in principle.
3.1.5 Network Rail have instructed Rees & Freres to act on
their behalf and documentation has been received to cover the
necessary commercial terms and practical issues evolving from the
works set out in paragraph 3.1.2 above. This documentation is being
actively and urgently pursued to signature.
3.1.6 On 16 March 2005, Strutt & Parker met with Messrs
Rapleys and Lunson Mitchenall. Messrs Rapleys have been retained by
Network Rail to advise on CPO matters. We explained the details of
the transaction to them and apart from one telephone conversation,
where it was confirmed they were awaiting their client's
instructions, no further communication has been received.
3.1.7 In parallel with discussions to address the commercial
issues, discussions have been ongoing directly with Network
Rail and CGNU's Project Managers, Buro 4, to provide the necessary
technical information to enable Network Rail to apply for the minor
station alterations order and other operational onsents that
are required. The formal notice by Network Rail to the Strategic
Rail Authority was submitted on 24 November 2004 to obtain the
necessary minor station works approval.
3.2 First Great Western Limited
3.2.1 In our discussions with Network Rail they advised that
First Great Western Limited's current franchise expires in 2006.
This is prior to the necessary station alteration works being
undertaken. For this reason, Network Rail required us to negotiate
directly with them as opposed to their franchisee.
3.2.2 With Network Rail's agreement, we wrote to Mark Dix, the
Estates Manager of First Great Western confirming that discussions
with Network Rail regarding operational issues are almost at a
conclusion. It was confirmed by Mark Dix that their objection is
protective and they will withdraw their objection as soon as
negotiations have been concluded with Network Rail.
3.3 Avon Valley Cyclery
3.3.1 This is a leaseholder of Network Rail.
3.3.2 An alternative unit is available to this operator within
the refurbished station which will enable continuity of trade to be
maintained.
3.3.3 Terms have been offered to this operator confirming the
availability of a similar unit and that continuity of trade can be
maintained. A meeting to discuss this further with the occupier is
currently being arranged.
3.4 02 (UK) Ltd
3.4.1 This is a leaseholder of Network Rail. The subject
property is a base station and antennae, situated on the existing
station.
3.4.2 Confirmation has been sought that the tenant's equipment
will be unaffected by the works or that in the event that any of
the equipment needs to be moved, the costs of such relocation will
be met by CGNU. A letter confirming any such costs will be met, was
written on 8 April 2005 sent by Matthew Bodley of Drivers Jonas to
Martin Law of 02's consultant Mono. On this basis, the occupier has
confirmed its willingness to withdraw its objection.
3.5 Western Power Distribution (South West) Plc
3.5.1 Messrs Arups and Buro 4 have been in detailed negotiations
with Western Power to agree technical details of the necessary
design of the additional electrical equipment.
3.5.2 Agreement has been reached on the transfer of additional
freehold land to Western Power for them to site the additional
electrical equipment required.
3.5.3 Terms have been agreed (confirmation awaited) and
solicitors are instructed to draw up the necessary documentation
for signature.
3.6 First Group Plc, First Somerset & Avon Limited
and First Group Holdings Plc
3.6.1 This is the current tenant of the existing bus station
which has to be relocated in order to enable the Southgate scheme
to be constructed.
3.6.2 Initial discussions were commenced in May 2003 to ensure
that the proposed Section 106 Agreement that relates to the bus
station was acceptable to the bus company and that the proposed new
bus station met the technical criteria required.
3.6.3 The consented scheme had the approval of the bus company
and they provided a letter of support to the Planning Application.
The new bus station will be built by CGNU at its own cost.
3.6.4 Initial Heads of Terms relating to the commercial terms of
the transaction were submitted by Strutt & Parker to First
Group Plc in February 2004 and follow-up meetings held in April and
July 2004. Further revised Heads of Terms were submitted on 7
February 2005 and more recently on 13 April 2005.
3.6.5 Over the last 6 weeks various technical meetings have
taken place between CGNU's team and the First Bus team culminating
with a meeting on 31 March 2005 where confirmation was received
that all technical issues have now been agreed, subject to agreeing
the detail of the specification, within an Operators Requirement
(OR) Document.
3.6.6 The main points of principle, relating to rent, lease term
and user clause etc are agreed but we continue to negotiate
outstanding points of detail relating to the OR document.
3.7 Boots the Chemist Limited
3.7.1 Boots is an existing tenant within the Southgate
scheme.
3.7.2 We have been negotiating a new unit for Boots within the
new Southgate development.
3.7.3 Detailed Heads of Terms for a new flagship store of
approximately 50,000 sq ft are very close to agreement and only a
few points are outstanding. Solicitors are instructed to draw up
the necessary document for signature.
3.8 Stylo Barratt
3.8.1 Negotiations commenced in August 2003.
3.8.2 The last remaining points in the Heads of Terms are close
to agreement and solicitors will be instructed imminently to draw
up the necessary documentation for signature.
3.9 Game Stores Plc
3.9.1 Documentation is due to be exchanged imminently.
3.10 Wallis Retail Properties Limited, Wallis,
Arcadia and Redcastle Limited
3.10.1 Objection withdrawn.
3.11 Somerfield Stores Plc
3.11.1 A Notice under Section 25 of the Landlord & Tenant
Act 1954 ('a Section 25 Notice") was served on 7 March 2005
requiring termination on 1 March 2006.
3.11.2 A meeting was held on 15 April in order to seek to
resolve Somerfield's concerns.
3.12 Rosebys
3.12.1 A Section 25 Notice was served on 22 March 2005. The
termination date is 1 March 2006.
3.12.2 The Council has written to Messrs Rosebys solicitors on
22 March 2005 requesting copies of revised lay-outs as referred to
in their objection.
3.13 Comet Group Plc
3.13.1 Comet have withdrawn their objection.
3.14 The Freeholders of Blenheim
House
3.14.1 This party has withdrawn their objection.
4. Conclusions
4.1 Genuine attempts have been made to acquire the various
interests required over a considerable period of time and following
the making of the CPO this process has continued.
