LANGTREE CASE STUDY
The Innovation Centre
How Langtree increased capital value by 33% at the innovation centre.
Increased capital value
Through targeted asset management and sustainability-led refurbishments, rental income has increased by 21%, capital value has risen by 33%, and energy efficiency improvements have reduced costs by 30% (£40,000 per annum).
As the private joint venture partner of Sci-Tech Daresbury, Langtree manages The Innovation Centre (TIC), ensuring it remains a thriving hub for high-growth science and technology businesses.
Overview
Assessing the assets
Langtree’s asset management strategy at TIC began with a detailed assessment of the building’s performance, occupancy trends, and future potential by Lee Williams, Head of Estates and Facilities, at Langtree.
TIC comprises 23,706 sq ft of serviced office space, housing over 100 companies in 60 individual offices, with additional meeting rooms, boardrooms, and a hot-desking space that provides over 50 annual licences. The building was well-occupied, but its rental value was below potential, operational efficiencies could be improved, and energy costs were higher than necessary.
At the time of assessment, passing rent stood at £755,000 per annum, with an estimated rental value (ERV) of £950,000. The average rental per square foot was £40, and the capital value was £3.15m.
While the building was performing well, Langtree identified an opportunity to enhance the tenant experience, improve sustainability, and drive long-term financial growth.
OUR APPROACH
Improvement initiatives
A £600,000 refurbishment programme focused on modernising the reception, meeting rooms, and washrooms, elevating the tenant experience and increasing the appeal of the space.
LED lighting was installed throughout the building, reducing energy consumption, while solar PV panels on the roof provided sustainable energy, cutting operational costs.
Improvements were also made to mechanical and electrical infrastructure, ensuring efficiency and reliability.
+33%
Capital value growth
+£600k
Refurbishment programme
+21%
Uplift in passing rent
+30%
Energy cost saving
“Through targeted asset management and sustainable refurbishments, the team has successfully enhanced The Innovation Centre, driving a 33% increase in capital value.
By modernising the building’s facilities, improving energy efficiency, and elevating tenant experiences, we’ve not only boosted rental income and reduced operational costs, but also strengthened TIC’s position as a thriving hub for high-growth science and technology businesses.”
Jayne Furnival
Executive Director of Property LangtreeResults
Realising the impact
By 2023, The Innovation Centre had achieved substantial financial and operational improvements.
Passing rent increased to £950,000 per annum, a 21% uplift, while capital value grew to £4.75m, an increase of 33%.
Rental rates rose from £40 to £50 per sq ft, and energy costs were reduced by £40,000 annually, equating to a 30% saving.
With occupancy levels consistently exceeding 90%, The Innovation Centre remains an integral part of Sci-Tech Daresbury’s commercial property ecosystem.
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