Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Chairman’s statement

Inside our Corporate Strategy 2015–2018 Strategy Chairman’s statement

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Our key achievements

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Arch: The Northumberland Development Company

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Arch: changing the face of Northumberland

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Our economic and social mission

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Northumberland’s economic strategy

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Our unique profit-for-purpose business model

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Arch operations: our six key programmes

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Programmes

This is the second Arch Corporate Strategy, covering the period from 2015–2018. It reflects the company’s substantial achievements since 2012, which have created a platform for an even more ambitious programme in the years ahead. The publication of this document follows closely on the launch of the Northumberland County Council’s Economic Strategy, with its target of 10,000 new jobs in Northumberland by 2031. In the following pages we show how Arch will contribute to that target and the Council’s priorities for action, in particular the goal of making Northumberland a more competitive place. Arch is wholly owned by Northumberland County Council but it is an arm’s length organisation which operates in a unique way. Our profit-for-purpose business model generates commercial income from investment, development and estate management, and the profits are recycled, together with other funding, to support regeneration, inward investment, and business support across the county.

These are very challenging times, but I am proud of the creative and innovative way that Arch has responded. We have built a business of significant scale. Arch has a highprofile presence in Northumberland and a growing reputation in the UK. Guided by a clear and consistent strategy, the company has already delivered new homes and other major projects and built a significant portfolio of commercial and residential property. We have established the platform for the next phase in the company’s development. In the next three years, we will focus our attention on six key programmes, which are described in the following pages. We are excited about the future, and all of us in Arch are looking forward to working with local businesses, investors, communities and partner organisations to achieve the ambitious goals set out in the strategy. Together we will change the face of Northumberland, creating the conditions for growth, prosperity and a better quality of life.

Arch commercial operations

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Programme 1: Property investment

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Programme 2: Development

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Programme 3: Estate management

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Councillor Dave Ledger,

Programme 4: Project management

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Arch Chair and Deputy Leader of Northumberland County Council

Arch economic growth programmes

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Programme 5: Inward investment and account managed companies

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Programme 6: Business growth and enterprise services

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Key highlights 2015–2018

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Plans and targets Wider benefits and added value

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Business Plan 2015–2016

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“The first wave of development and regeneration projects has been delivered, with many more on site or in the pipeline. These achievements will provide the platform for the next phase in the company’s development.”

Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Our key achievements Initial targets have been met or exceeded. By the end of March 2015 we had:

873 homes Increased the residential portfolio to 873 homes

195 additional residential properties Acquired 157 residential properties and completed the construction of 38 homes, with 11 more on site and 120 in the pipeline

92,903m2 Increased the commercial and industrial portfolio to 92,903m2

80,000m2 Acquired more than 80,000m2 of industrial and commercial property, 48 ha of income producing land and 45 ha of development land

Blyth Workspace Completed Blyth Workspace (2,889m2) and secured planning consent for a 1,500m2 office building in Berwick

£115 million Increased the total value of the Arch property portfolio (residential and commercial) to £115 million (based on draft accounts for 2014–2015)

£21 million Project managed the delivery of the £21 million Ashington Leisure Centre on time and on budget

Portland Park Acquired ownership of the 10.5 ha site and commissioned a masterplan for Portland Park, Ashington

908 jobs Assisted 49 inward investment and Regional Growth Fund projects, creating or safeguarding a forecast 908 jobs and leveraging £47 million private sector investment Left: Floating meeting room, Blyth Workspace

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Arch: The Northumberland Development Company

Arch: The Northumberland Development Company, was launched in 2012. This is our second Corporate Strategy and covers the period 2015–2018. The document shows how Arch will contribute to the new Northumberland Economic Strategy, and it describes our distinctive profit-for-purpose business model.

Above: Workspace interior, Blyth

Above: Delaval Park, Seaton Delaval

It summarises the key achievements of our first three years, introduces a new strategic framework and headline targets for 2018, and describes our six key programmes. Every year we will publish a business plan, charting our progress towards the 3-year goals; the business plan for 2015–2016 is included within this document.

From a standing start we have built a business of significant scale. Arch has a high-profile presence in Northumberland and a growing reputation in the UK. The first wave of development and regeneration projects has been delivered, with many more on site or in the pipeline. These achievements will provide the platform for the next phase in the company’s development.

Above: Blyth Workspace, Commissioners Quay and artist’s impression of Ashington Leisure Centre

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Arch: changing the face of Northumberland

Arch is changing the face of Northumberland by: • investing in residential and commercial property • building new homes for sale and rent • developing high quality industrial and commercial workspace • implementing major projects across Northumberland • attracting investment, and • promoting business growth. Wholly owned by Northumberland County Council and with a board drawn from the public, private and third sectors, Arch brings a distinctive and enterprising approach to promoting economic growth in Northumberland.

This is our second corporate strategy, covering the period 2015–2018. In 2012 Arch was launched as a longterm, sustainable investment vehicle, and we have made a very successful start. This document shows how we intend to build on the platform we have created in the first three years. We have ambitious plans to expand the scale and scope of our operations. Arch is a new kind of economic development business. The old grant-based models are no longer sustainable so Arch operates on commercial principles, investing in, managing and developing property, and earning fees for managing construction and regeneration projects. We recycle profits from these activities and secure funding from external sources to resource our inward investment effort, work with key companies, and provide other business services.

Right: Artist’s impression of new homes for sale in Newbiggin-by-the-Sea

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Our economic and social mission

Arch is a commercial business with an economic and social mission. We are dedicated to taking care of our customers and investing in Northumberland’s communities, especially the

places where the market has been unable or unwilling to act. By taking a long-term view, we are helping to tackle market failure in our most disadvantaged communities.

Our development activities have a direct impact on the local economy. We seek to maximise the opportunities for local companies and subcontractors, creating construction jobs and employment in the supply chain and offering apprenticeships and training opportunities. We encourage innovation, helping Northumberland businesses to lead the way by adopting new building technologies.

We are improving the quality of life in direct, practical ways. We provide attractive homes to buy and rent; by investing in energy efficiency we are helping to lift families out of fuel poverty; and our regeneration projects are restoring pride and confidence to towns that have suffered from decades of under-investment.

Our most important asset is our people. Our skilled, professional team is dedicated to meeting the needs of our customers and working with public and private sector partners to make a positive difference across Northumberland. We have clearly defined our mission, vision and values and these underpin all our decisions and define our ways of working.

Arch mission Leading the way in delivering sustainable economic and social prosperity for Northumberland.

Arch vision Our customers and community - At the heart of everything we do.

Arch values

Above: Building new homes at Nordale Way, Blyth

Above: Building work, Ashington Leisure Centre

Above: Workspace breakout area, Ashington

Partnership

Profit

Creating mutual and enduring value by being the very best example of a public and private partnership.

To improve the prosperity of Northumberland by creating profit for a social purpose.

Performance

People

Be a highly effective, lean and delivery focussed organisation operating with professionalism and pace.

Be a great place to work where people are encouraged and inspired to be the best they can be.

Above: Arch mission, vision and values

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Northumberland’s economic strategy

Northumberland County Council has published its new economic strategy. The strategy describes two long-term trends that have defined the Northumberland economy for at least a generation: • a long-term relative decline in the local economy, with a reduction in employment, especially in manufacturing, and a growing productivity gap between Northumberland and the rest of the north east • an increasing dependence on the Tyneside conurbation for high-wage, high-skill jobs, resulting in an increasing net daily outflow of commuters.

The economic strategy recognises that Northumberland benefits in many ways from its proximity to Tyneside, including access to jobs, education, culture, leisure and recreation. But there are risks in depending too much on commuting and allowing the local economy to continue to decline. We don’t want Northumberland to be reduced to the status of a commuter dormitory, so we need to rebalance the economy through a renewed commitment to local economic growth.

Rebalancing the economy means that Northumberland needs to: • Promote local economic growth and, in particular, create highwage, high-skill, high-productivity jobs: the Northumberland Economic Strategy sets a target of 10,000 new jobs by 2031 – our contribution towards the 100,000 jobs target in the North East Local Enterprise Partnership’s (NELEP) Strategic Economic Plan

The economic strategy describes the complex economic geography of Northumberland and the contrasting characteristics of three zones: • the  south east of the county (including Ashington, Bedlington, Blyth and Cramlington) where most of Northumberland’s industrial capacity and infrastructure is concentrated, but which is also characterised by pockets of persistent poverty and deprivation

• Strengthen its links to Tyneside, for example, through investment in transport infrastructure, so that local residents can access jobs, educational opportunities, leisure and cultural facilities in the city region.

• central Northumberland (including Morpeth, Prudhoe, Ponteland and Hexham): average household incomes in this area are high; many people living here commute to Tyneside, but local employment is dominated by low-paid service jobs • the rural north and west (including Alnwick, Amble, Berwick and Haltwhistle) where the economy depends on land-based industries and tourism.

Above: Networking in Northumberland – Blyth Business Launch

Above: Northumberland coast, Blyth Beach huts, Berwick roof tops and Hexham Enterprise Hub @Eastburn

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Key

The Northumberland Economic Strategy is organised around the themes of business, people and place, and it identifies four priorities for each theme (Figure 1). Arch will contribute to all three themes, especially the place agenda. This is a county-wide approach, designed to promote economic competitiveness and quality of life in all parts of Northumberland, but the economic strategy aims to focus investment in two priority areas, shown in Figure 2: • an investment zone in the south of the county, including Ashington, Bedlington, Blyth, Cramlington and Morpeth, and •a growth network based on the principal towns in the rest of the county: Hexham, Prudhoe, Ponteland, Haltwhistle, Amble, Alnwick and Berwick.

The County Council will have a lead role in delivering the economic strategy, supported by local and regional partners including Arch, the North East Combined Authority, the North East Local Enterprise Partnership (NELEP), universities and colleges, Northumberland Tourism, the National Park Authority and others.

Investment zone

A roads

Principle growth network towns

East Coast mainline

Investment zone towns

Main railway stations

Northumberland County boarder

Railway

Port

Airport

The economic strategy – and Arch’s corporate strategy – will also contribute to the strategic objectives of the Northumberland Local Plan1, especially:

Berwick upon Tweed

Wooler A697 A1

• a thriving and competitive economy • access to decent, affordable homes Alnwick

• protecting and enhancing the natural, historic and built environment

Rothbury

• community well-being

Amble

• addressing climate change. A1

Arch’s corporate strategy reflects these spatial priorities.

A697

A189

Ashington

Business

People

Place

1 Attracting investment

1

Learning-to-work transition

1

Business locations

2 Growing key sectors

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Workforce skills

2

Housing quality and choice

3 Productivity and innovation

3

Employability

3

Infrastructure and connectivity

4 Enterprise and business growth

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Skills system

4

Developing communities

Blyth

Kielder Water and Forest Park Morpeth A696

Bedlington

A68

Cramlington

Northumberland National Park Ponteland

Figure 1: Northumberland Economic Strategy: priorities for action Corbridge A69

Haltwhistle

Hexham Newcastle upon Tyne

Prudhoe

A68

Above: Metalis, Ashington

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Northumberland Local Plan, Core Strategy – Full Draft Plan, December 2014

Figure 2: Investment zone and growth network

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Arch Corporate Strategy 2015–2018

Our unique profit-for-purpose business model

Northumberland County Council capital programme

Commercial borrowing/funding

Northumberland has led the way in responding to these new conditions. The old models were no longer viable so the County Council needed to find new ways to attract investment to the county and promote growth. Arch was created as a long-term, sustainable investment vehicle with a business model based on the principle of profit-for-purpose. The engine that drives the Arch profitfor-purpose model (Figure 3) is a core group of commercial operations, we: Above: New homes to rent, Seaton Delaval (top) and Ashwood Business Park, Ashington (below)

Our mission is to promote economic and social development in Northumberland, but our commercial activities are not confined to the county. We already own properties throughout the north east and we are continuing to prospect for investment opportunities.

Investment

Development

Regeneration and infrastructure

Rent

Sales

Fees

The profits from our commercial activities will be recycled to support our economic development mission in Northumberland: •they will fund our economic growth team and provide match funding for other business, enterprise and skills programmes •they will support the regeneration of key towns and priority areas •we will maintain an appropriate level of cash reserves through retained profits and, where possible,

Estate management

Commercial income

•we will make charitable donations to support good causes in the community, specifically Active Northumberland.

Inward investment and account management

• invest in residential and commercial property •manage the Arch property portfolio efficiently and profitably •act as a developer of industrial, commercial and residential property: some new assets will be retained as investments in the Arch portfolio, we also build homes for sale •earn fees for managing construction and regeneration projects for the County Council and other clients.

Arch funds and external funding

Arch Economic Growth

Arch Commercial The delivery of economic development and regeneration services has changed beyond recognition since 2010. Regional development agencies have been abolished and replaced by local enterprise partnerships. Public sector funding has been reduced sharply.

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Arch Corporate Strategy 2015–2018

Operating profit

Recycled and retained profits

Funding to Active Northumberland and charitable causes

Figure 3: The Arch profit-for-purpose business model

Growth, enterprise, skills

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Arch Corporate Strategy 2015–2018

Arch operations: our six key programmes

Arch has achieved a great deal in the first three years but we continue to focus on improving the business, recruiting new talent and fine-tuning the organisational structure. We are now ready to embark on the next phase in the company’s development: not just more of the same, but a step-change in scope and ambition. Figure 4 summarises the Arch Group’s Corporate Strategy 2015–2018, which is framed around six key programmes:

Business

Place

• our commercial operations encompass four programmes, all of which will contribute to the place theme of the Northumberland Economic Strategy: (1) property investment, (2) development, (3) estate management and (4) regeneration and infrastructure • our economic growth team will be responsible for Arch’s contribution to the business and people themes, comprising (5) the core functions of inward investment and strategic account management and (6) externally-funded business growth, enterprise and skills programmes.

Arch Economic Growth

1. Investment

5. Inward investment and account management

2. Development

6. Growth, enterprise, skills

3. Estate management 4. Regeneration and infrastructure

This is the framework for delivery and the six programmes are described in more detail in the following pages.

Above: SWP Engineering, Berwick

Above: Osbitt Power, Riding Mill

Above: B&B Attachments, Cramlington

People

Arch Commercial

Figure 4: Arch’s six work programmes

Above: IHC Engineering, Stocksfield

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Arch commercial operations

Developing communities

Infrastructure and connectivity

Skills system

Place

Employability

Workforce skills

School-to-work transition

Enterprise and business growth

People

Productivity and innovation

Growing key sectors

Arch programmes

Business

Attracting investment

Economic strategy theme

Housing quality and choice

Figure 5 shows the four key programmes and how these activities will contribute to the goals of the Northumberland Economic Strategy. We will make a major contribution to the strategy’s Place theme, with a supporting contribution on Business and People.

The Arch team is constantly looking for investment and development opportunities. We are developing a pipeline of projects for the next 3 years and beyond. All projects are subject to a robust appraisal taking account of commercial return and risk, contribution to the goals of the economic strategy and the County Council’s spatial priorities, as well as wider social and environmental benefits especially in the Rural Growth Network and Investment Zone.

Business locations

Arch’s commercial operations drive the profit-for-purpose model.

Property investment Development Estate management Regeneration infrastructure

Figure 5: How commercial operations contribute to the Northumberland Economic Strategy

Right: Wansbeck Business Park, Ashington

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

We will maintain a balanced portfolio, ensuring that our commercial activities generate sufficient surpluses to cross-subsidise a small number of higher risk investments which may be necessary to create jobs and regenerate struggling communities. By taking a long-term view Arch can tackle projects that conventional developers would not normally consider. We will innovate (for example, by adopting new building technologies) and address market failure in key areas such as homes to rent, quality offices and modern industrial space. Wherever possible we will work in partnership with the private sector, for example by sharing risk or undertaking joint ventures.

Left: Blyth Quayside

Above: Berwick Workspace

Above: Art Project, Richard Stannard House, Blyth

We bring a culture of professionalism to estate management, increasing occupancy levels and ensuring that our business and residential tenants get the best possible service. We will continue to prospect for investments in the wider region that will promote our economic development mission in Northumberland. Our development, business growth and enterprise services will focus exclusively on projects in the county, and the profits we make from investments outside Northumberland will be used to fund local initiatives and make charitable contributions.

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Arch Corporate Strategy 2015–2018

Programme 1:

Programme 2:

Property investment

Development

In our first three years the total value of Arch’s property portfolios – homes, offices, warehouses, factories and land - more than trebled, from £37.3 million to £115 million. This dramatic increase has been achieved mostly through commercial/ market acquisitions, the purchase of Northumberland County Council’s commercial portfolio and capital growth. The residential portfolio has grown at a more measured pace, initially through targeted acquisitions, but with new-build developments in the pipeline. In the next three years, the asset base will be boosted by the completion of a number of residential and commercial developments (Programme 2). There is no fixed target but, based on current projections, we expect the value of our assets to increase to £200–250 million by 2018. We will continue to invest in Northumberland, including our rural areas, providing quality homes to let and premises for local businesses. Our knowledge and understanding of the Northumberland property market is extensive and we have already demonstrated our ability to turn around under-performing assets.

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Arch Corporate Strategy 2015–2018

Development activity takes time to germinate. Projects may take years to develop, finance needs to be secured, and planning permission granted. But we have now established a development pipeline, with projects valued at around £150 million in various stages of readiness.

By adopting a long-term perspective, taking informed risks and looking after customers we will demonstrate our commitment to Northumberland. By creating a climate of confidence in the property market, Arch will be the catalyst for additional private sector investment. We will acquire assets in the wider region when that will help to sustain the profit-for-purpose model, improve profitability and mitigate risks. Programme 1 will contribute to the following economic strategy priorities: • Attracting investment • Growing key sectors • Productivity and innovation • Business locations • Housing quality and choice • Developing communities.

Above: Homes for rent, Ashington, Wansbeck Business Park, Ashington and all inclusive rental properties with smart meters, Valleydale Mews, Blyth

There is a dearth of good quality homes to rent in Northumberland, and an urgent need to provide attractive accommodation for key workers. We will address those challenges by accelerating our housebuilding programme, adopting new building technology and promoting energy efficiency. We will test shared ownership models and all-inclusive rents. We will also explore Registered Provider (RP) status to contribute to the supply of affordable homes in Northumberland. In the next three years we will place a greater emphasis on building homes for sale. The first of these will come to the market in 2016, a first step towards our long-term target of 200 completions a year. Decades of under-investment and market failure have left the stock of business property in Northumberland – offices and industrial space – in a tired and outdated condition. There is very little modern stock available on the market and the quality of business parks and industrial estates

is generally poor. That is starting to change: the first tenants moved into Blyth Workspace in early 2015, and a new office building in Berwick will be ready to occupy in 2016 and the Council has made a significant investment in the roll out of superfast broadband across the county. We are investing in market intelligence, and we will continue to develop new office and industrial space especially when this will support key sectors and regeneration priorities. We will continue to prospect for development opportunities across the county, including joint ventures with the private sector. Our spatial priorities in the first three years were Ashington, Blyth and Berwick. We have made significant progress in all three towns and we will build on that success through to 2018.

In the Investment Zone, the development of Ashington’s Portland Park and Commissioners’ Quay in Blyth will be priorities, and Above: Mixed use development at Commissioners Quay, Blyth

We will explore other development opportunities including key sites in Bedlington and Morpeth. In the rural growth network we will press ahead with the redevelopment of Walkergate and the Cowe Buildings in Berwick and seek other opportunities in the principal towns. Programme 2 will contribute to the following economic strategy priorities: • Attracting investment • Growing key sectors • Workforce skills • Business locations • Housing quality and choice • Developing communities.

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Programme 3:

Programme 4:

Estate management

Project management - regeneration and infrastructure

We expect the value of our property assets to continue to increase, with the expectation that they will exceed £200 million by 2018. The size of the portfolio is only part of the story: one of our top priorities in the next three years will be to manage the estate more efficiently, improve the quality of service and increase profitability.

Through focused commercial acquisitions (and disposals where appropriate), increasing occupancy rates and improving efficiency, combined with a professional, customer-focused approach, we will achieve year-on-year improvements in profitability. As a landlord of residential and commercial property Arch aims to be a beacon of good practice, helping to drive up standards in the sector and improving choice. This will also apply when exploring the option of Registered Provider status.

We are constantly reviewing the estate, its condition, occupancy levels and income generation, and throughout the plan period we will undertake a programme of planned repairs and maintenance. On the commercial side we have reduced vacancy rates, tackled rent arrears and upgraded a number of premises. The premium Workspace brand has been rolled out to several new locations. We have accelerated the repairs programme for residential property, including a major programme in the Hirst, Ashington, and we are continuing to focus on improving energy efficiency.

• Business locations

As well as being a developer and investor in its own right, Arch’s project management capabilities are a key asset. Early success stories include the Ashington Leisure Centre, which we are delivering on behalf of the County Council. This complex project will be completed on time and on budget in autumn 2015. Arch has also led the development of a masterplan for the neighbouring north-east quarter of the town and has acquired 17 key sites and properties on the 10.5 ha site to facilitate the next stage of development. The regeneration of this area (now known as Portland Park) will be a key priority through to 2018. It will involve a combination of direct development by Arch and management of building contracts, infrastructure and public realm works.

Programme 3 will contribute to the following economic strategy priorities:

• Housing quality and choice • Developing communities.

We have also developed a masterplan for Commissioners Quay in Blyth. The first phase, Blyth Workspace, was completed in early 2015, and Arch will now focus on delivering the Commissioners Quay Inn and a residential development on adjoining plots. In Bedlington we have acquired the Tesco site and surrounding development land and will develop an investment strategy for a mixed use scheme that will reinvigorate the town centre.

Programme 4 will contribute to the following economic strategy priorities: • Attracting investment • Workforce skills • Business locations • Housing quality and choice • Infrastructure and connectivity • Developing communities.

In addition to managing construction contracts on behalf of the County Council we will be exploring opportunities for partnerships with landowners and developers across the county, especially linked to strategic priorities in the investment zone such as the Ashington, Blyth and Tyne Line and the Morpeth northern by-pass.

Above: Arch Homes tenants, Solar PVs in the Hirst, Ashington, private rental communities, Seaton Delaval, Durham Workspace, Pity Me

Above: Artist’s impression of Commissioners Quay residential scheme, Blyth

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Arch economic growth programmes

promote growth, enterprise and skills (Programme 6) but the scale of these services will be determined by our ability to access grant support and to contribute match funding. Arch’s economic growth operations will be resourced using a combination of recycled operating profits – which will fund our core inward investment and strategic account management functions – and external funding which, subject to availability, will pay for new business growth, enterprise and skills programmes. Figure 6 shows how the two programmes will contribute to the business theme of the Northumberland Economic Strategy, and the workforce skills element of the people theme.

Regeneration and communities

Infrastructure and connectivity

Housing quality and choice

Business locations

Skills system

Place

Employability

Workforce skills

People

School-to-work transition

Arch programmes

Business Enterprise and business growth

Economic strategy theme

Productivity and innovation

We intend to maintain and improve economic growth services throughout the plan period, but we know that we will face challenges.

We have had to make tough decisions about priorities. Arch will give top priority to activities that fit closely with our commercial property operations. Programme 5, described below, will deliver our core economic growth activities – attracting inward investment, working with Northumberland’s top companies and implementing sector initiatives. We will deliver other initiatives which

Growing key sectors

These activities have been made possible in part by interim support from the County Council, loans from the Local Enterprise Partnership, Regional Growth Fund grants, European programmes and other sources.

We can only deliver them if we can secure resources. Our growth programmes will operate across the county, with a particular focus on the investment zone and the rural growth network. They will be funded through a combination of operating profits from our commercial activities and external grant funding.

Attracting investment

Arch has an established track record as a provider of inward investment services, business support and start-up services and apprenticeship programmes.

Inward investment / acct management

Growth, enterprise and skills

Figure 6: How economic growth operations contribute to the Northumberland Economic Strategy

Right: Cooling stars at Egger UK, Hexham

Business person image

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Programme 5:

Programme 6:

Inward investment and account managed companies

Business growth and enterprise services

We have formed a dedicated economic growth team which will be responsible for core economic growth activities; its key tasks will be to: • deliver a high quality inward investment and relocation service which will work with UK and regional agencies to service inquiries, assemble support packages and maintain close links with existing investors; we will continue with a targeted programme of direct marketing, targeting industry events and conferences and promoting strategic sites in Northumberland

• strengthen our existing Strategic Account Management (SAM) process, building close relationships with Northumberland’s top companies, as defined by scale, contribution to jobs/ GVA/exports, and growth potential: we will engage with these key firms to gather intelligence and identify opportunities, and we will host an annual seminar for Northumberland’s business leaders • develop a deep knowledge and understanding of Northumberland’s key industry sectors, including energy, renewables, life sciences, food and drink and tourism.

Programme 5 will contribute to the following economic strategy priorities: • Attracting investment • Growing key sectors • Productivity and innovation.

The economic growth team will also manage and deliver a portfolio of business growth, enterprise and skills programmes across Northumberland. In part, this will involve the active promotion of the Government’s Business Growth Service (BGS). We will encourage ambitious SMEs to apply for the BGS Growth Accelerator, the Manufacturing Advisory Service and other programmes, and we will also support applications for Regional Growth Fund Let’s Grow grants and to the North East Investment Fund. We will work with the County Council and NELEP to secure funding for business growth and skills programmes. This will include continued support for a digital business support programme throughout Northumberland from sources including European Structural and Investment Funds (ESIF). NELEP’s ESIF Strategy 2014–2020 earmarks resources for key themes including:

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We will deliver, on behalf of partners, the Rural Growth Network programme which covers rural areas in Northumberland, Durham and Gateshead. Programme 6 will contribute to the following economic strategy priorities: • Growing key sectors • Productivity and innovation • Enterprise and business growth • Workforce skills.

• strengthening research, technological development and innovation • enhancing the competitiveness of SMEs • supporting the shift towards a low carbon economy • investing in education, skills and lifelong learning.

Above: PII Pipeline Solutions, Cramlington

Above: Supporting Northumberland apprenticeships (top), Sara O’Dwyer of Micawber Bookkeeping has improved her digital skills with the help of iNorthumberland Business Support (bottom)

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Key highlights 2015–2018 The highlights of our three-year plan will include:

Completion of the Ashington Leisure Centre, on time and on budget Implementation of investment plans for Ashington (Portland Park), Bedlington, Blyth (Commissioners Quay) and Berwick (Walkergate/Bridge Street) There is no fixed target but, based on current projections, we expect the value of the Arch property portfolio to increase to £200–250 million by 2018 Through our joint venture we will deliver a mixed use development at Low Prudhoe A year-on-year increase in the number of new homes built for sale or rent, working towards a long-term target of 200 completions in a year • c  ompletion of housing developments at Seaton Delaval, Blyth, Newbiggin-by-the-Sea and Morpeth Creating private rental communities and ensuring good consistent estate management practices Improve the quality of our commercial estate, leading to greater occupancy and more jobs Delivery of the Rural Growth Network (RGN) programme A refreshed and refocused inward investment and relocation service A re-launch of our strategic account management service, working throughout the county with Northumberland’s top 50 companies Development of a new portfolio of business growth, enterprise and skills programmes to support entrepreneurs and businesses across Northumberland.

We monitor our performance against a corporate scorecard. The scorecard supports the delivery of the annual business plan and ensures the focus on the targets agreed provide the best opportunity for us to meet our strategic priorities.

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The total value of Arch’s assets

Each target within the scorecard is aligned to our values reflecting how we perform in delivering the strategic People, Performance, Partnership and Profit agendas and being honest to our commitment of ‘our customers and community’ at the heart of everything we do.

Above: Commissioners Quay Inn, Blyth

We will also monitor three business performance indicators:

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The value of work-inprogress, including projects managed by Arch on behalf of the County Council and other clients

3

Annual profits from commercial operations

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Arch Corporate Strategy 2015–2018

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Arch Corporate Strategy 2015–2018

Wider benefits and added value

We are developing a methodology for capturing and communicating the wider benefits and added value of Arch’s activities. This is the subject of a study currently under way, which will consider issues including:

The catalytic effect of Arch on the Northumberland property market:

Raising standards:

Better homes:

Creating a climate of confidence, and making things happen faster and better than would otherwise have been the case.

Working within the market disciplines of the profit-forpurpose model, Arch aims to demonstrate that it is possible for developers to raise the bar in terms of design quality, energy efficiency and other factors.

Through its new-build housing and upgrades to the existing stock, Arch will help families to live more comfortably and escape fuel poverty by providing better insulation, efficient boilers and energy-included rental deals.

Training and employment opportunities:

Arch is providing opportunities for local firms both to secure contracts and sub-contracts, and to gain experience with new building technologies; we will work with the CITB and the County Council to develop on-site training programmes linked to construction projects.

Placemaking:

The individual projects highlighted in this strategy are delivering ‘more than the sum of the parts’: investment plans for Ashington, Bedlington, Blyth and Berwick adopt a “whole place” perspective designed to tackle challenges in a systemic, joined-up way.

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

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Business Plan 2015–2016 Programme 1: Property Investment

Programme 3: Estate Management

Increasing the asset value of the Arch property portfolio

Manage the estate more efficiently

We will work with our residential and commercial tenants and prospective tenants to ensure we are the landlord of choice in Northumberland by continuing to improve our choice of properties and improve our service levels. We will pilot new methods of estate management and measure their effectiveness.

Improve the quality of service

We have asked our customers about our service and we intend to improve our customer satisfaction survey results year on year. We will implement Service Standards and Customer Action Plans across each area of the estate to support this.

Improve the quality of our property

We will continue to deliver a maintenance programme for our properties and ensure void properties are at the required standard before being re-let. We will also respond to day to day maintenance requests from our tenants in a planned way.

Through a continuing programme of investment in residential and commercial property and land the aim is to increase the value of the Arch property portfolio. No fixed target and scale of investment has been set as it will depend on market conditions, but we are projecting a total investment in the order of £30m in the year.

Programme 2: Development Developments to be completed

We will conclude developments that have already started on site:

Residential

• The last 11 units of a 28 unit development at Patterson Close in Seaton Delaval will be completed and transferred to the Arch portfolio.

Commercial

• Complete the construction of a new stand and club house at Ashington Football Club.

New developments on site

Residential

We will start on site a number of new residential and commercial developments. Pipeline projects are detailed below. Progress is dependant, in all cases, on securing approvals and planning permission. It is expected new developments will add at least 120 new homes for sale or rent within the Arch Homes portfolio and 6,300m2 of commercial floorspace to the commercial portfolio – this will be within the 2015–2018 Corporate Strategy period.

Delivery of projects on behalf of Northumberland County Council and other partners in accordance with timescale and budget

• Dolphin, Newbiggin-by-the-Sea – a mixed use development comprising a library, WC and eight apartments on the former Dolphin and Railway public houses site •Commissioners Quay (Phase 1), Blyth – the development of 49 homes for sale and rent on the Commissioners Quay site.

Developing the Project Pipeline

• Development of the Commissioners Quay Inn – a 2,384m food led public house with 40 en-suite letting bedrooms 2

• Development of 4 commercial units creating an additional 2,000m2 of industrial space in Ashington and Cramlington • Installation of photovoltaic panels on commercial properties within the portfolio starting with Ashington Workspace, Wansbeck Workspace and Wansbeck Network Centre

• We will create a homes for sale division within the company • Expand our in house construction ability.

Developing the Project Pipeline

We will engage with partners and stakeholders and explore future opportunities for direct development by Arch and in partnership ensuring these support the delivery of the Northumberland Economic Strategy.

Explore future opportunities for partnerships with Northumberland County Council, landowners and developers across the county.

Organisational development

We will establish a new dedicated Economic Growth Team responsible for the delivery of core economic growth activities.

Inward investment / re-investment services

We will review our service with a view to attracting at least six inward investment / re-investment projects throughout the year.

Strategic Account Management (SAM) service

We will review our relationship with businesses in Northumberland with a view to re-establishing relationships with Northumberland’s large and growing companies.

Research

We will work independently, and with partners, to commission and undertake research and a key sector study to aid the development of a marketing strategy that will support the Economic Growth Team in attracting inward investment / reinvestment to the county.

• We will maximise opportunities for development in the Blyth Estuary Enterprise Zone. Organisational development

• Secure planning consent for Building 1 and commence infrastructure works for Portland Park, Ashington

Programme 5: Inward Investment and Account Management

• Restoration of the 500m2 ‘blue’ Cowes Buildings, Berwick • Development of a 1,500m2 office building at Walkergate, Berwick

• Complete the construction of Ashington Leisure Centre

• Complete the acquisition of the entire portfolio of Tesco’s freehold interests in Bedlington and prepare a masterplan.

• Windsor, Newbiggin-by-the-Sea – the development of 24 new homes for sale on the site of the former Windsor Road Primary School • Venture, Blyth – the development of 39 new homes for sale and rent on the site of the former Venture Workshops

Commercial

Programme 4: Project Management

Programme 6: Business Growth, Enterprise and Skills New Business Growth and Enterprise Services

Develop and secure funding for a new suite of programmes which will launch during 2015–2016.

Rural Growth Network

Secure approvals from the first call for applications for the Strategic Economic Investment Fund (SEIF).

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Arch Corporate Strategy 2015–2018

Arch Corporate Strategy 2015–2018

Contact us

Arch Head Office

Ashington Workspace

Ashington Workspace Lintonville Parkway Ashington Northumberland NE63 9JZ

Ashington Workspace Lintonville Parkway Ashington Northumberland NE63 9JZ

T 01670 528 400 E [email protected] www.archnorthumberland.co.uk

T 01670 528 400 E [email protected]

Berwick Workspace Arch Homes T 01670 528 499 E [email protected] www.arch-homes.co.uk

Boarding School Yard 90 Marygate Berwick upon Tweed TD15 1BN

Arch Commercial

T 01289 301 120 E [email protected] www.berwickworkspace.co.uk

T 01670 528 460 E [email protected]

Blyth Workspace Commissioners Quay Quay Road Blyth Northumberland NE24 3AG T 01670 338 380 E [email protected] www.blythworkspace.co.uk

Durham Workspace Abbey Road Pity Me Durham DH1 5JZ T 0191 375 3961 E [email protected]

Wansbeck Workspace Rotary Parkway Ashington NE63 8QZ T 01670 857 041 E [email protected]

Left: Port of Blyth

Photo credits: Jill Tate (Page 6,7,11,25) Marcus Ginns (page 29,30, 38) Anita Nicholson (Page 13,14). Page 13: Hexham Enterprise Hub@Eastburn funded by Rural Growth Network.

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www.archnorthumberland.co.uk Arch Ashington Workspace Lintonville Parkway Ashington Northumberland NE63 9JZ T 01670 528 400 E [email protected]