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NETWORK
VILLAGE
COMMENCEMENT
BUSINESS PLAN

A joint venture between

CREATING SUSTAINABLE MIXED-USE COMMUNITY DEVELOPMENTS

FOREWORD BY JOHN WALKER
IN 1997 THE COALFIELDS TASK FORCE WAS SET UP BY THE DEPUTY
PRIME MINISTER JOHN PRESCOTT MP TO DEVELOP A PROGRAMME
OF ACTION TO ASSIST COALFIELD COMMUNITIES.
Many towns and villages were suffering from falling
populations and lack of jobs, high levels of crime and
problems with long-term illness.
As part of the National Coalfields Programme, which
reached its eleventh year in March 2008, English
Partnerships in 1999 established Network Space Ltd,
a joint venture company with Langtree Group plc, to
address the shortage of good quality small business
premises in the coalfield areas. The joint venture
company has far exceeded expectations and its initial
target of 500,000 sq ft, and has now delivered over
700,000 sq ft of employment floor space. The latest
initiative, Network Village, is set to deliver a further
300,000 sq ft of business space that will take us
past the one million square feet milestone. This will
be achieved within a 7 year timeframe through the
development of 6 sustainable mixed use schemes
where the additional funding required for the
delivery of the business space will be funded by
residential development.
Successful, sustainable and cohesive communities
require not only good housing, but also an attractive
environment and a thriving economy. Network Village
will deliver mixed-use development where the provision
of high quality business premises will be at the forefront
and carefully integrated into the existing community
alongside exemplar, energy-efficient housing and
attractive parks and open space.
Network Space will consult with local communities
and work closely with key stakeholders and local
authorities to prepare detailed masterplans for the
Network Village proposals.
Thriving business centres will act as a catalyst to enable
local businesses to grow, attract inward investment
and generate better job opportunities. The benefits of
well-designed, good quality mixed-use development
create more cohesive communities and better places
to live, reducing crime and anti-social behaviour.
We need to ensure that we continue to achieve
sustained regeneration of coalfield communities
and mixed-use redevelopment. The provision of
attractive business premises is key to the delivery of
long-term benefits and the creation of economically
and socially sustainable communities. English
Partnerships has an on-going commitment to the
coalfield communities and we see Network Villages
as an important initiative to the plans for the new
Homes and Communities Agency.
John Walker
Chief Executive, English Partnerships
EXECUTIVE SUMMARY
NETWORK VILLAGE -
A NEW APPROACH TO SUSTAINABLE SPACE
Network Village is a bold programme to deliver
vibrant, exemplar and sustainable employment led
mixed-use developments in the former English
Coalfield areas. The primary objective is the delivery
of high quality business space providing attractive
accommodation for small and medium size business
and increasing the availability of wider and better
local employment opportunities. This will be
developed alongside a range of high quality housing
including affordable housing, to provide cross
subsidy where necessary, all carefully integrated
into existing communities.
INTEGRATION OF NEW BUILD USES
AND CROSS-SUBSIDY
The Network Village concept is entirely consistent
with the Government’s intentions for the delivery of
urban renaissance and the creation of sustainable
communities. Network Village is about sustainable
economic diversification and high quality job
creation in former coalfield communities. Its aim
is to provide high quality employment space that
will retain and attract higher quality companies and
encourage and support local start up ventures. The
development of of high quality housing will fund
the delivery of the employment space where cross
subsidy is necessary and also create a truly sustainable
mixed-use addition to the existing community.
The developments will deliver fully integrated,
sustainable mixed-use employment and residential
schemes which will include high quality managed
business centres offering Grade A quality serviced
office accommodation; flexible high quality workspace
units designed for a mixed use environment; self
contained offices; high quality housing providing a
mix of housing choice and tenure; and attractive
open space designed to provide opportunities for
community use and residential amenity.
PAGE 04/05 EXECUTIVE SUMMARY
WHO AND WHAT IS NETWORK SPACE?
Network Space Limited is a joint venture between
English Partnerships and Langtree Group plc set up
in 1999 with a specific remit to deliver high quality
employment space in the former English Coalfields
regions. Langtree provides both development and
management services. Langtree is a developer that
specialises in mixed-use regeneration and the
development of high quality employment spaces
suitable for SMEs in regeneration areas. Network
space has now delivered over 700,000 sq ft of
workspace, offices and serviced offices. Network
Village is the next phase of Network Space
development and the target is to secure the delivery
of 300,000 sq ft of employment space through
the development of six Network Villages within a
seven-year time frame. Network Space is primarily
a commercial developer and therefore the delivery
of the high quality employment accommodation will
be at the forefront of each scheme.
SCOPE AND RANGE OF THE NETWORK
VILLAGE CONCEPT
The regeneration benefits of the Network Village
proposals include re-use of brownfield sites in
sustainable locations with a strong employment
led justification. This coupled with the commitment
to deliver high quality development provides a
cogent regeneration case.
The areas of operation cover the former English
Coalfields regions. The first site has been identified
at Murton, Easington and the business plan proposes
the identification of a further five sites over the next
three years. The initial site search programme will
focus on the North East, Yorkshire and East Midlands.
It is anticipated that identification of sites will be
through direct contact with senior executives and
decision makers involved in regeneration and a
programme of presentations and meetings with
English Partnerships, RDAs and local authorities
has been prepared.
THE CORE BUSINESS MODEL
The business plan sets out a generic Network Village
scheme (based upon the Murton pilot) in order to
develop the financial model and demonstrate the
size of site required to fund the delivery of the
network village concept. Sensitivity analysis has been
carried out on key variables including residual land
price, residential values, and remediation costs.
It is anticipated that Network Space will enter into
development agreements with landowners for the
delivery of the proposed Network Village schemes.
Community participation is one of the key objectives
in the Government’s reform of the planning system.
Network Space will undertake pre-application
discussions at an early stage with the local authority,
community groups and local stakeholders. The
company recognises the importance of maintaining
ongoing engagement as proposals are developed
and this will be achieved through public exhibitions
and inviting feedback and comments from local people.
The intention is to secure the fullest possible local
community support for the Network Village proposals.
The offices and workspace will be developed to
BRE Environmental Assessment Method (BREEAM)
standard of Excellent. Network Space has already
achieved the Excellent rating for the developments
at Allerton Bywater Millennium Community and i2
in Mansfield. The housing will aim to achieve current
English Partnerships standards including Code for
Sustainable Homes Level 4 and will be developed in
accordance with a strict design code prepared by
Network Space.
The business space will be maintained and managed
by Network Space and the accommodation will be
available to let on flexible lease terms. The residential
land will be prepared for development and marketed
for sale on an unconditional basis with the benefit of
outline planning permission to attract experienced
house builders.
The parks and open space within the Network Village
developments are assets of the local community and
therefore long term ownership and stewardship of
the open space will be carefully considered in each
case. This may be through adoption by the local
authority or transfer to another body such as the
Land Restoration Trust or local community trust.
FUNDING
This business plan has been prepared for the period
to June 2015. The delivery of Network Villages will be
funded by increased bank facilities from the current
level of £27m up to £50m. The increase can be
provided with a Loan to Value ratio below 55% and
with minimum interest cover of 1.5%. The net assets
are projected to grow in the period from £18m to £29m.
MARKETING & PR
A marketing and PR action plan has been prepared
to raise the profile of Network Space at both regional
and national levels in order to promote the Network
Village proposals.
CONCLUSION
Network Village will continue to deliver the
regeneration of Coalfield communities through
mixed-use development. The provision of attractive
quality business premises will lead to the creation of
economically and socially sustainable communities.
 CONTENTS
08 1. Introduction 26 10. Marketing and PR
1.1 Background to Network Space 10.1 Introduction
1.2 Network Village 10.2 Aims and Objectives
1.3 Strategy 10.2.1 Target Audience
10 2. Network Village Elements 10.2.2 SMART Objectives
2.1 Employment 10.3 Communications Tactics
2.2 Residential 10.3.1 Direct Marketing
2.3 Open Space 10.3.2 Advertising
2.4 Retail, Commercial and Leisure 10.3.3 Events
10.3.4 Public Relations
12 3. Sustainability
10.3.5 Advertorials
14 4. Areas of Operation
10.3.6 Literature
4.1 Coalfield Areas
10.3.7 E-marketing
4.2 Suitable locations
10.3.8 Budget and Timing
16 5. Network Village Model
30 11. Risk Assessment and Management
5.1 Generic scheme
11.1 Governance
5.2 Appraisal
11.2 Acquisition
18 6. Site Identification Process 11.3 Construction
6.1 Site finding proposals
32 12. Monitoring and Evaluation
6.2 Site delivery programme
12.1 Performance Management Framework
6.3 Initial Site Assessment
12.1.1 Introduction
20 7. Financial Commentary 12.1.2 Monitoring
22 8. Development 12.1.3 Scheme Monitoring
8.1 Development Agreement 12.2 Evaluation
8.2 Planning 12.2.1 Overview
8.2.1 Policy 12.2.2 Interim Evaluation
8.3 Exit strategy 12.2.3 Full Evaluation
8.3.1 Employment 34 13. Way Forward
8.3.2 Residential
8.3.3 Open Space
8.3.4 Retail, Commercial and Leisure
24 9. Community Engagement and
Socio-Economic Impacts
9.1 Consultation
9.2 Planning process
9.3 Economic and social impact

PAGE 06/07 CONTENTS

1. INTRODUCTION
1.1 BACKGROUND
Network Space Ltd is a joint venture company,
between Langtree Group plc and English Partnerships,
launched in October 1999 by the Deputy Prime
Minister the Rt Hon John Prescott MP. Its remit is to
develop high quality employment space in the former
English Coalfields, providing quality employment
accommodation suitable for new and expanding
small and medium-size enterprises (SMEs).
The initial remit to deliver a minimum of 500,000 sq ft
(46,450 sq m) was achieved within the 6 year target
time frame and as a result of this success, the joint
venture partners extended the programme to deliver
5 more schemes providing an additional 200,000 sq ft
(18,580 sq m), without further funding support from
English Partnerships. The networkcentre product
has evolved, as the company responds to market
needs, to provide a range of workspace, offices and
serviced offices.
Network Space has now entered a further phase of
development, through a new initiative named Network
Villages, to deliver a minimum of 300,000 sq ft
(27,870 sq m) of high quality business centres, offices
and workspace accommodation in the former coalfield
areas over the next 7 years – integrated with and
funded by sustainable high quality residential
development.
300,000
SQ FT
OF HIGH QUALITY
BUSINESS SPACE
PAGE 08/09 INTRODUCTION
1.2 NETWORK VILLAGES
The primary objective of Network Village is the
delivery of high quality business space providing
attractive accommodation suitable for SMEs thereby
increasing the availability of wider and better local
employment opportunities – generating sustainable
economic diversification and high quality job creation
in former coalfield areas. Developed alongside high
quality housing and carefully integrated into existing
communities, the development of the housing will
cross subsidise the delivery of the speculative high
quality employment space and also deliver truly
sustainable mixed-use regeneration.
English Partnerships is at the forefront of the
Government’s response to climate change and the
Network Villages programme is entirely consistent
with the Government’s intention for the delivery of
urban renaissance and the creation of sustainable
communities. It accords with the Green Paper (July
2007) ‘Homes for the future: more affordable, more
sustainable’ which sets out proposals for more homes
that are well designed, greener and more affordable
to rent or buy.
Network Village as part of the National Coalfields
Programme, will deliver further benefits to coalfield
communities through brownfield regeneration and the
provision of high quality housing and business space.
The new Homes and Communities Agency proposed
in the Housing and Regeneration Bill, will have
responsibility for land and funding to deliver new
greener and more affordable homes and infrastructure
through sustainable development. (The definition of
infrastructure includes services; roads and transport
facilities; retail and other business facilities; health,
educational, employment and training facilities; and
public open space).
1.3 STRATEGY
Network Villages are about the delivery of high
quality employment space as a key element of
sustainable mixed-use regeneration. Network Space
is a commercial developer therefore the delivery of
the high quality employment accommodation will be
at the forefront of each scheme.
The strategy is to secure the delivery of 300,000 sq ft
of employment space through the development of
six Network Villages within a seven year timeframe.
The approach to identifying and securing suitable
development opportunities for Network Villages is
as follows:
A programme of meetings and presentations
to key regeneration people in EP, RDAs and local
authorities
Through a carefully considered marketing and
PR strategy, highlighting the success of Network
Space and promoting the Network Village vision
A focus on the main former coalfield areas –
initially North East, Yorkshire and East Midlands
followed by Staffordshire
. both development and management services. This
The key factors that make Network Villages
distinctive are as follows:
Network Space’s track record of delivering high
quality business space
It’s remit is development in the former English
Coalfields regions
The design and delivery of business space
is primary not secondary
Highly sustainable developments
Regeneration benefits in towns and villages
The support of English Partnerships and its ability
to highlight potential public sector opportunities
Provision of high quality business space suitable
for local SMEs
Well managed business centres offering flexible
lease terms
Aim to develop to high standards – BREEAM
rating of Excellent; Code for Sustainable Homes
level 4
On behalf of Network Space, Langtree provides
extends from site finding, design and construction
through to letting, management and maintenance.
Langtree is a developer that specialises in developing
high quality employment space suitable for SMEs in
regeneration areas.
2. NETWORK VILLAGE ELEMENTS
2.1 EMPLOYMENT
The basis of a Network Village scheme will include
a combination of the following employment space:
Critical mass of 2,322 to 6,503 sq m (25,000 to
70,000 sq ft) of high quality business space
High quality managed business centre typically
2,322 sq m (25,000 sq ft) providing fully serviced
offices on flexible terms as recently completed
at Matrix Business village, Keys Park, Hednesford
Out of hours community use of the meeting
rooms and conference facilities within business
centres will be available to local community
groups providing
Multi-occupied office building providing high
quality offices suites offering grow-on space for
SMEs. Mansfield i2 provides up to 18 suites in
a high quality 3,252 sq m (35,000 sq ft) office
building next door to Mansfield’s high technology
incubation centre
Networkcentres providing high quality workspace
units suitable for SMEs and start-up businesses
typically 1,858 to 3,716 sq m (25,000 to 40,000 sq ft)
providing units ranging from 70 to 325 sq m
(750 - 3,500 sq ft). Allerton Bywater and Sherwood
Energy Village, Ollerton are two recently completed
schemes designed to be adjacent to housing
In appropriate locations self-contained own front
door offices available for sale or to let, typical
size 140 to 280 sq m (1,500 - 3,000 sq ft) will be
considered. The developments at West Moor Park,
Armthorpe and Sherwood Energy Village, Ollerton
both offer own front door offices
PAGE 10/11 NETWORK VILLAGE ELEMENTS
The offices and workspace will be design with
the aim of achieving BREEAM excellent rating
Where there are suitable existing buildings
refurbishment and subdivision may be
an alternative
2.2 RESIDENTIAL
The residential element of the scheme will include
the following:
Network Space to obtain outline planning
permission and prepare land for sufficient
number of residential units (houses and
apartments) to cross subsidise the speculative
development of the proposed employment space.
The amount of residential necessary to cross
subsidise the scheme will vary depending on the
cost of abnormal works, residential values, Section
106 requirements, the supply and demand for
2.3 OPEN SPACE
employment space in any particular area
The open space element of the scheme will include:
The agreed masterplan and design of the
development will deal with access, safety, security,
outlook, play areas, traffic management and good
quality design reflecting local characteristics
and ensuring that the employment space is in
an appropriate prominent position within the
development; creating a connective neighbourhood
integrated into the existing community
Affordable housing will be a key element within
each scheme – providing a range of house types
to meet local requirements
A Design Code for the delivery of energy efficient,
sustainable homes to be developed to a minimum
standard of Code for Sustainable Homes Level 4
(rising in line with English Partnerships/Homes
and Communities Agency quality standards)
Building sustainable homes is not simply
reducing CO2, but also looking at the materials
used in construction and minimising other
environmental impacts such as reducing the use
of water and the waste generated in construction
and in the way we live
To enhance the sustainability – explore new
proposals for live/work zones where units can be
built as offices and or homes and occupied partly
or wholly for either use
Residential land disposal strategy – Network
Space will obtain planning permission, part
outline and part detailed, for the mixed use
Network Village development then market the
land available for residential development with
the benefit of outline planning permission for
sale on an unconditional basis. Land remediation,
new roads, drainage and services will be delivered
by Network Space as appropriate. The receipt for
the residential land will fund the remediation,
abnormal costs and infrastructure and cross-
subsidise the speculative development of the
employment accommodation
The open spaces, parks, play areas and landscaping
are important elements that will vary significantly
within each scheme. It is important to create well-
used places that have a good perception of safety
and provide valuable amenity for both existing
and new communities
Community involvement will be necessary during
the detailed design process to foster a sense
of ownership, and hopefully minimise risks of
vandalism. The design of play areas will need to be
targeted to local need and potential user groups
There are opportunities to involve local people
when developing any art feature, perhaps
reflecting the history of the site of the area,
and possibly during the implementation phase
in planting trees, shrubs and bulbs
Recycled materials will be utilised wherever
possible in the construction of footpaths and
cycle ways. Durable natural materials should
be used for benches, boardwalks and fences
Sustainable management practices are intrinsic
in the long-term success of parks or open space
as assets to the local community. Long term
ownership and stewardship of the open space by
the local authority or community trust or the Land
Restoration Trust, will be considered in each case
2.4 RETAIL, COMMERCIAL AND LEISURE
Certain sites may offer additional sustainable
community development opportunities and may
require suitable provision of retail premises and
community facilities. Depending on the size of the
proposed Network Village scheme there may be
opportunities for the development of additional
retail or commercial/leisure premises which will
enhance the sustainability and viability of the
proposals, to include:
Neighbourhood centres that may include, local
supermarket or general store, and small retail
units for a range of occupiers
Community facilities such as village or
community hall, library and crèche
Health care facilities including clinic, consulting
rooms, dental and doctors’ surgeries
Other commercial opportunities will depend
on the size of the site, location and main
road frontage. Possible uses could include car
showroom, hotel, pub and restaurant, garden
centre, local trade park units, small and medium
size industrial units
3. SUSTAINABILITY
The strong regeneration benefits of the network
village proposals include making use of brownfield
sites in sustainable locations with a strong
employment led justification. This coupled with a
commitment to deliver an exemplar high quality
development provides a compelling regeneration
planning case.
The proposals are for mix-use developments within
or adjoining existing towns and villages therefore
maximising the use of infrastructure and facilities.
Key aims will be to achieve CO2 reductions, energy
efficiency and reduce energy consumption. Sustainable
energy design needs to be affordable and practical.
Improvements can be achieved by:
Improving fabric performance
Condensing boiler technology
Natural ventilation
Daylight linked lighting control
Heat recovery
Solar shading
Ground source heat pump
Solar thermal water heating
PAGE 12/13 SUSTAINABILITY
The houses and apartments within the Network
Village will aim to achieve Code for Sustainable Homes
Level 4 (rising in line with current EP standards). This
means the development will improve performance
in a range of areas including, water, waste, materials,
drainage, energy and CO2, pollution, health and
well being, management and ecology. A Code for
Sustainable Homes pre-assessment will be prepared
by Network Space in order to provide house builders
with guidance on the particular site and English
Partnerships quality standards including Lifetime
Homes and Buildings for Life.
Building sustainable homes is not simply reducing CO2,
but also looking at materials we use in construction
and minimising the other environmental impacts –
reducing the use of water and the waste generated
in construction and in the way we live.
Network Space will aim to achieve BRE Environmental
Assessment Method (BREEAM) standard of Excellent
for the offices and workspace. (Network Space
schemes are developed as a minimum to very good
standard and BREEAM excellent has been achieved
for workspace schemes at Allerton Bywater and i2
in Mansfield).
The offices and workspace will provide high quality In conjunction, the masterplan and design of the
employment space for local businesses. The majority developments will deal with access, safety and
of occupiers in Network Space schemes are local security, English Partnerships’ minimum space
businesses and come from within 5 miles. standards, outlook, play areas, traffic management,
and good quality design reflecting local characteristics
Secured by Design accreditation will be achieved by – creating a connected neighbourhood and delivering
appointing an architectural liaison officer at an early diversity in housing choice and tenure.
stage of the design process.
Network Space will work with key stakeholders on
cross cutting sustainability themes including:
Community engagement and management
Promotion of design innovation using modern
methods of construction and energy efficiency
Provision of training and educational
opportunities (to be developed through
appointment of consultants by Network
Space and English Partnerships)
Insuring the creation of a connected
neighbourhood
4. AREAS OF OPERATION FORMER COALFIELD AREAS
4.1 COALFIELD AREAS NORTH EAST
The broad areas of operation cover the former CUMBRIA
English Coalfields. The agreed boundary of the areas
of the company’s operation is defined in the IMC
NORTH WEST
Consulting Engineers Ltd report entitled ‘Workspace STAFFORDSHIRE
Development Areas in the closed English Coalfields Newcastle
January 1999’. The former English Coalfields areas are WEST MIDLANDS upon Tyne
shown on page 15. Durham
FOREST OF DEAN Whitehaven
4.2 SUITABLE LOCATIONS
KENT
Suitable sites will be identified as opportunities that
require the delivery of high quality employment YORSKSHIRE
space as a key element for the delivery of exemplar
mixed-use regeneration. Site characteristics may NOTTINGHAMSHIRE
Leeds
include some or all of the following: York

Within existing towns and villages

Close to existing employment Liverpool
Manchester Sheffield
Near to adjoining residential
Convenient for the town or village centre
Stoke-on-Trent
Use existing infrastructure, services and
community facilities Nottingham

Highly accessible by public transport, walking

and cycling
Offer additional benefits to local people Birmingham
Brownfield land
Provide open space
Potential to sustain and enhance biodiversity Cambridge

SITES WANTED
and ecological interest
Suitable for a range of high quality homes
both affordable and market housing Oxford
Sites are likely to be 4 hectares (10 acres) or
more, but could be smaller in high density FOR EXEMPLAR MIXED-USE Bristol

urban locations
REGENERATION SCHEMES London

Dover

Southampton
Exeter

PAGE 14/15 AREAS OF OPERATION

5. NETWORK VILLAGE MODEL
5.1 GENERIC SCHEME
For the purposes of developing the business plan a
basic Network Village model based upon the Murton
pilot experience with sustainable site characteristics
as highlighted in the previous section has been
adopted and this comprises the following:
Business centre providing high quality serviced
offices 26,000 sq ft (GIA)
Workspace scheme of 15 units totalling
26,000 sq ft
Provision of serviced ‘oven ready’ residential land
with outline planning permission
High quality public open space
Brownfield site requiring remediation and
construction of infrastructure
5.2 APPRAISAL
Key assumptions: At a remediation cost of £1 million a site of Residential value – an increase in the residential
In order to develop the financial model the following approximately 16 acres with 12 acres for residential sales price of £10 per sq ft will reduce the land
assumptions have been made: would be required. A summary of the development required by 3 acres
appraisal is set out below. Initial land price – an increase from £200,000 to
A serviced offices building and workspace scheme £300,000 per acre will result in a increased land
would require approximately 4 acres Sensitivity analysis
requirement of 3 acres
Residential sales value – £175 per sq ft A sensitivity assessment has been carried out
to show the effects on the size of site that may Remediation costs – an increase from £1m to £2m
Affordable housing (to be maximised as far as be required - by varying the land price per acre, will require additional land of 3 acres
possible) – assumed to be 20%for the purposes remediation costs and residential values.
of the model
Section 106 contributions – there will be a range
of contributions in addition to affordable housing
at a cost of say £2,500 per unit
Profit on cost – a standard developer’s profit of
15% including costs of site acquisition,
remediation and infrastructure
An appraisal is attached for a 16-acre site
assuming a base initial land price of £200,000
per acre and remediation costs of £1 million

Network Space Residential

Revenue £’s Revenue £’s

Business Centre 21,000 sq ft (net) 3,500,000 Market housing 177,000 sq ft @ £175.00 31,000,000

Workspace units 26,000 sq ft 1,500,000 Affordable housing 41,000 sq ft @ £122.00 5,000,000

Residential land sale 12 acres 9,700,000 Total Revenue 36,000,000

Total Revenue 14,700,000

Costs £’s Costs £’s

Site 3,400,000 Site (serviced) 10,000,000

Planning 300,000 Construction & Fees 18,000,000

Construction & Fees 8,000,000 End payments S106, Marketing & Interest 3,000,000

Other costs & interest 1,000,000 Total costs 31,000,000

Total costs 12,700,000 Profit (excl interest) 5,000,000

Profit on cost 2,000,000

PAGE 16/17 NETWORK VILLAGE MODEL

6. SITE IDENTIFICATION
6.1 SITE FINDING PROPOSALS
The target is delivery of six Network villages and
300,000 sq ft of employment space within a seven
year timeframe. The proposed programme for securing
further sites for development are two sites in 2008,
two in 2009, and a sixth in 2010.
The first site at Murton is located in the north east
and therefore the proposed target is to identify and
enter into agreements for two further sites in 2008 –
say one in Yorkshire and one in the East Midlands.
A programme of meetings and presentations is
being developed. Initial meetings and presentations
will be at a regional level with a programme of
presentations and meetings with key individuals in
English Partnerships and the RDAs. This will then
progress to local authorities, HMR pathfinders and
URCs. It is anticipated that there will also be ‘windfall’
type opportunities identified outside the initial
search areas.
We would also aim to meet with senior property
consultants who specialise in public sector
regeneration and development. These individuals
have knowledge of local authority regeneration
initiatives and plans for high quality sustainable
mixed-use development where the Network Village
concept would be appropriate.
It is anticipated that sites are more likely to be
secured on a negotiated basis rather than open
competitive tendering.
Network Space has been developing in the coalfield
areas since 1999. Langtree has in depth knowledge of
the market for employment space in many of these
areas and English Partnerships through its key role
in the National Coalfields Programme has detailed
knowledge of the communities and former colliery
sites within the coalfield areas.
6.2 SITE DELIVERY PROGRAMME
6.3 INITIAL SITE ASSESSMENT
Initial Site Assessments (ISA) will be considered
at monthly Network Space Operations meetings.
Key points to be considered are as follows:
Timescale for delivery
Initial market assessment of supply/demand for
high quality employment space and housing
Site is of sufficient size to deliver residential that
will fund the development of the site and the
provision of the employment space
Achieving high standards of development i.e.
BREEAM excellent and Code for Sustainable
Homes minimum of Level 4
High level of sustainable development
Potential for wider benefits for the local
community
Overall scheme to be commercially viable
The ISA will be carried out using available information
and will then be considered at the next Operations
Meeting allowing a minimum of two weeks for
an assessment. The site will be considered against
the key points and the ISA will take the form of a
concise report.
Following a positive ISA - a budget for the appointment
of a development team will be agreed along with a
programme for the completion of an Outline Project
Proposal (OPP). This will be a more detailed assessment
of the site and preparation of a proposed scheme to
be considered by the Network Space Board.
Following completion of the OPP, and subject to
recommendations, approval would be granted by
Network Space Board to conclude negotiations
with the landowners (enter into a development
agreement) and proceed with the preparation of a
planning application and detailed site investigations
and assessments.

The indicative development programme outlined

below indicates that the period for delivery from
site identification through to completion is likely
to take 3 - 4 years.
An indicative programme for site identification and
development is as follows:

Site Identification Start Completion

Period Month no. & Agreement Construction

Initial Site Assessment 4 weeks 1

1 Murton 2007 2008 2010
Outline Project Proposal 2 months 2-3
2 2008 2009 2011
Masterplan & Planning Application 6 months 4-9
3 2008 2010 2012
Consideration of Planning Application 4 months 10 - 13
4 2009 2011 2013
Detailed design & tender 6 months 14 - 19
5 2009 2011 2013
Site remediation & Infrastructure 6 months 20 - 25
6 2010 2012 2014
Marketing & Sale of Residential Land 16 - 19
4 months 20 - 25

Construction of Buildings 12 months 26 - 37

PAGE 18/19 SITE IDENTIFICATION

7. FINANCIAL COMMENTARY
The following table sets out some of the key financial indicators for the Network Space Business Plan for the period Capital Programme Balance Sheet
to June 2015. The delivery of the six sites will require a significant The projection assumes that fixed asset values will
capital programme with spend averaging in excess remain at June 2007 levels. The above shows that net
of £10m per annum for the seven years to June 15. assets are projected to grow from £18m at June 2007
Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 to £29m at June 2015.
£000 £000 £000 £000 £000 £000 £000 Profit and Loss Account
The results show profit being delivered every year up The year on year growth rates in net assets are also
1) Capital Programme (8,640) (14,351) (16,315) (12,320) (12,420) (8,440) (6,043) shown in the table above varying from 4.1% to 12.9%.
to June 2015. The projections show an interest cover
of at least 150%. The business plan assumes that The overall growth over the period is at an annualised
2) Profit & Loss Account growth rate of 7.3% from June 2008 to June 2015.
new workspace will continue to let up over fifteen
Pre interest profit 2,909 3,897 4,988 3,768 4,105 4,674 4,000 months, which has been the case historically. It also The Network Village programme will be funded by
assumes a serviced office element will let up over bank debt. It is expected that the bank facility would
Interest (1,851) (2,055) (2,472) (2,395) (2,655) (2,822) (2,694) twenty-one months. Peak occupancy is assumed need to increase from the current approved level of
Profit before tax 1,058 1,842 2,516 1,373 1,450 1,852 1,306 at 87.5%. £27m up to around £50m, and increasing bank debt
can be provided with a satisfactory loan to value
Bank interest cover (PBIT) 1.57 1.90 2.02 1.57 1.55 1.66 1.48 ratio of below 55%.

3) Balance Sheet

Tangible Fixed Assets £000 £000 £000 £000 £000 £000 £000

Estates - Investment 50,831 50,831 50,831 50,831 50,831 50,831 50,831

Estates - NV Phase III 2,356 8,724 11,306 16,580 21,859 22,086 28,891

Total Fixed Assets 53,187 59,555 62,137 67,411 72,690 72,917 79,722

Bank debt (24,466) (29,822) (29,858) (33,899) (37,515) (36,627) (42,136)

Other assets/liabilities (10,091) (9,815) (9,785) (9,133) (8,857) (8,676) (8,295)

Net Assets 18,629 19,919 22,494 24,379 26,318 27,614 29,291

Bank debt as % of INV & DEV 46% 50% 48% 50% 52% 50% 53%

Year on year growth rate 4.1% 6.9% 12.9% 8.4% 8.0% 4.9% 6.1%

Peak debt (32,316) (37,904) (40,949) (41,879) (45,596) (45,024) (42,136)

PAGE 20/21 FINANCIAL COMMENTARY

8. DEVELOPMENT
8.1 DEVELOPMENT AGREEMENT
Following the identification of a suitable site and
having completed an initial site assessment, Network
Space will agree Heads of Terms and enter into a
Development Agreement with the land owner for
the delivery of the proposed Network Village scheme.
Under the terms of the Development Agreement
Network Space will acquire the whole site and then
arrange the disposal of the residential land and
commercial areas to cross subsidise the delivery
of the development and the employment space.
8.2 PLANNING
The development team will prepare an initial site
assessment based on available information and an
initial masterplan will be drafted for the purposes of
early consultation. A scoping study for a planning
application will then be agreed with the local
planning authority.
Following pre planning consultation with the local
authority, local people and stakeholders, including
public exhibitions, the masterplan will be revised and
prepared in more detail for the planning application.
In accordance with the agreed scoping study full
reports will be prepared to support an outline
application for the site as a whole and detailed
application for employment space and infrastructure.
. PPS 9 Biodiversity and Geological conservation
PAGE 22/23 DEVELOPMENT
8.2.1 Policy
The masterplanning, design and development and
the strong regeneration benefits of the Network
Village proposals accord with the Government’s
principal planning guidance, and it’s objectives
for sustainable development. This includes:
Regional Spatial Strategies and Regional
Planning Guidance
PPS 1 Delivering Sustainable Development – states
the importance of good design, pre-planning
discussions and community involvement 8.3 EXIT STRATEGY
PPS 3 Housing – sets out the Government’s policy 8.3.1 Employment 8.3.3 Open Space
framework and housing The managed business centre/serviced office Sustainable management practices are intrinsic in
A wider choice of quality homes that; buildings and workspace schemes will be retained the long-term success of parks or open space as
and managed by Network Space. Own front door assets to the local community. Therefore long term
- Widen opportunities for home ownership;
offices may be available to let or for sale and this will ownership and stewardship of the open space will be
- Improve affordability across the housing depend on the particular details of each scheme. considered in each case. Alternative options include:
market, including by increasing the supply
of housing; and 8.3.2 Residential Adoption by the local authority;
- Create sustainable, inclusive mixed communities Serviced residential land will be marketed for sale Community or trust ownership and management
in all areas with the benefit of outline planning permission company with service charge; and
PPG 4 Industrial, commercial development and and full details of site investigations, infrastructure Transfer ownership to the Land Restoration Trust
small firms – identifies that economic growth remediation proposals to be completed by Network (with a dowry payment), which was also created
and high quality environment have to be pursued Space, Code for Sustainable Homes, affordable by English Partnerships, and is a key operator in
together. That where appropriate small scale housing, and S106 Agreement and a strict Design the coalfield areas. Network Space has already
employment development should be integrated Code prepared by Network Space to ensure the held preliminary discussions with LRT who have
with residential delivery of high quality aspirational housing. confirmed potential interest
Marketing will take place following receipt of 8.3.4 Retail, Commercial and Leisure
PPG 13 Transport – focuses on promotion of planning permission with unconditional sale and
land receipt following remediation and infrastructure Opportunities and requirements may arise for
sustainable transport commercial development for uses such as hotel,
as appropriate. Network Space may also consider
PPG 14 Development on unstable land direct development of homes or apartments in pub/restaurant, local supermarket, neighbourhood
PPG 17 planning for open space spatial and live/work zones. centre, motor trade, or small/medium industrial units.
recreation Development or sale of plots will be on the basis of
maximising receipts through pre-let, turnkey or land
PPS 23 Planning and Pollution Control sale basis.
PPG 24 Planning and Noise
PPS 25 Development and flood risk – deals with
sustainable development – appraising, managing
and reducing the risk
PPS 1 draft supplement on Planning and
Climate Change – spatial planning should
reduce emissions
9. COMMUNITY ENGAGEMENT AND
SOCIO-ECONOMIC IMPACTS
9.1 CONSULTATION
Community participation is a key objective in the
Government’s reform of the planning system. Network
Space will undertake pre-application discussions at an
early stage with council officers, community groups
and local stakeholders. The company also recognises
the importance of maintaining ongoing engagement
as the draft masterplan is developed.
Following initial consultation and production of a draft
masterplan the proposals would be displayed at a
public exhibition inviting feedback, comments and
ideas from local people. A second public exhibition
would be arranged thereafter to display the revised
masterplan and alterations as a result of the points
raised at the first exhibition.
PAGE 24/25 COMMUNITY ENGAGEMENT AND SOCIO-ECONOMIC IMPACTS
Additionally consultation and engagement would be
achieved using leaflets, press releases and interviews with
journalists, meetings with residents and stakeholders,
and meetings with objectors to understand issues and
to explain and clarify the proposals.
9.2 PLANNING PROCESS
As part of any planning application, the Design and
Access Statement would also include a Statement
of Community Engagement outlining the stages of
consultation undertaken with various stakeholders.
9.3 ECONOMIC AND SOCIAL IMPACT
The Urban White Paper, Our towns and Cities:
the future, launched in November 2000, sets out
the agenda for the long term redevelopment of
the urban fabric with improving sustainability
established as the clear goal. The focus of the White
Paper is on achieving sustainable economic growth
through engaging local people to tackle problems
such as poor living environments, failing economies,
inadequate services and weak social networks.
The Network Village concept is fundamentally in line
with the strategic vision outlined within the White
Paper. As well as bringing brownfield sites back into
productive economic use, high quality design will be
central to the Network Village proposals resulting
in the overall improvement of the urban fabric for
the benefit of all within the local community. The
proposals will provide new and better employment
opportunities for the local community as well as
providing a high quality mixed residential environment.
The delivery of the business accommodation in support
of economic development objectives is financially
and strategically supported by the residential
development. The residential development not only
secures the financial viability of the scheme, but
also supports local economic development through
the provision of a better choice of homes as well
as supporting local services. The justification for
Network Villages is also based upon a market failure
argument as without grant assistance or cross-subsidy
from residential development the employment space
could not be delivered.
The high quality employment space will bring
additional quality employment and investment into
the area. Network Villages will result in additional
benefits of increased competitiveness as well as
local multiplier effects and social benefits from
increased investment. Furthermore by diversifying
and strengthening the local economic base, the
ability of the area to withstand future economic
changes would be enhanced.
Well-designed mixed-use development that includes
the supply of high quality open space will make the
area more attractive and improve its image.
Network Villages may also provide demonstration
effects in the form of sustainable redevelopment
that is compatible with the surrounding area and
local community; as well as raising confidence
and aspirations within the area; and assisting in
encouraging more speculative development and
stimulating other landowners to invest in their
own sites.
Network Village will deliver new high quality
employment space that will bring significant
socio-economic benefits to the local area creating
a more sustainable local community.
10. MARKETING AND PR
10.1 INTRODUCTION
Network Space needs to gain a higher profile at
both regional and national levels in order to promote
the Network Village proposals. The majority of
networkcentres are in the East Midlands, Yorkshire and
the North East and consequently this has led to the
profile of Network Space remaining relatively localised.
10.2 AIMS AND OBJECTIVES
10.2.1 Target Audience
The target audience are senior executives and
decision-makers involved in regeneration initiatives
within the former coalfield areas. This includes English
Partnerships regional teams, Regional Development
Agencies, local authorities and property consultants
in regeneration and development.
10.2.2 SMART Objectives
Promote Network Space’s track record and
achievements
Raise awareness of the Network Village concept
Encourage new land opportunities for Network
Village sites
Raise the profile of the expertise behind
the brand
Highlight the quality and sustainability
of the initiative
Highlight involvement of English Partnerships
and the fit with the Government’s agenda
PAGE 26/27 MARKETING & PR
10.3 COMMUNICATIONS TACTICS
10.3.1 Direct Marketing
One-to-one appointments, meetings and presentations,
to key executives and decision makers; use of direct
mail and e-mailers to named individuals; attending
appropriate events in target areas.
10.3.2 Advertising
Targeted advertising in national and regional
magazines and newspapers will be considered to tie
in with events and milestones and direct marketing
initiatives.
10.3.3 Events
Targeted event attendance and sponsorship
offers opportunities for good public relations via
media coverage, networking, and promotion of
Network Villages.
Network Space corporate events – it is proposed
to elevate the Matrix Business Village launch in
June 2008 to an event to mark the completion of
the 700,000 sq ft milestone and further promote
Network Villages
Seminars/workshops – identify workshops and
seminars on regeneration, housing, mixed-use
and sustainable development for speaking
opportunities
Property dinners & award ceremonies – consider
sponsoring awards and hosting tables
Boardroom lunches – host boardroom lunches
and presentations
10.3.4 Public Relations
Targeted public relations will help to raise awareness
and reinforce and support the marketing strategy.
Good news stories and press releases will be
targeted at key media and quality coverage will be
sought in local, regional and trade press and
broadcast and national media where appropriate.
Aims and Objectives
PR consultants have been appointed to deliver
an effective public relations strategy by:
Raising and broadening brand awareness
Secure consistent PR coverage in target areas
Position Network Space as an innovative
developer of high quality, exemplar workspace
and homes in the former English coalfield areas
Ensure key members of the Network Space team
are visually seen as the face/s behind the brand
at key events and networking opportunities
Drive footfall to all events
Key messages
The key Network Space messages to incorporate into
all communications are:
Network Village is a unique and distinctive
mixed-use development initiative led by a
commercial developer, where delivery of high
quality employment space is at the forefront
Network Space specialises in regeneration in
former coalfield areas, delivering high quality
workspace and exemplar homes
Track record – completed 22 sites, delivering
700,000 sq ft of workspace and offices with high
occupancy rates
Network Village will create six sustainable mixed-
use developments and deliver a further
300,000sq ft of employment space
Methodology
PR consultants will use the following tools to ensure
that Network Space and the Network Village brand
will receive regular media coverage:
Focus on the key messages and benefits to
former coalfield areas
News – a regular stream of news releases
highlighting business success, planning
submissions, launches and successful
Photo opportunities – use photo caption stories.
Surveys/research – any research undertaken by
Network Space can create a new press opportunity
Comment opportunities – proactively seek on
topics such as brownfield redevelopment,
legislation changes, sustainable buildings,
accommodation for SMEs
Forward feature opportunities – in target areas
Media one-to-ones – interviews with key
journalists
Awards – submit schemes for awards in order
to profile the success of the company and its
future aims
10.3.5 Advertorials
Place stories in regular magazines and newsletters of
local authorities, Chambers of Commerce, Business
Links and RDAs.
 10.3.6 Literature
All literature is professionally designed incorporating
the Network Space and Network Village branding:
Network Village vision brochure – has
been produced to showcase the vision for
Network Villages
E-Newsletter – a four-page newsletter is currently
produced on an annual basis. It is proposed to
produce this as an e-newsletter on a more
frequent basis as this is a cost effective ways
to reach an audience in a highly targeted,
personalised manner. A personalised database
of senior executives and decision-makers in the
target areas has been created
Factsheets – detailed case studies to demonstrate
various elements and Network Space success
such as BREEAM ratings and awards
Commencement business plan – sets out the
areas of operation and delivery plan for the
period to 2015
DISTINCTIVE
MIXED-USE
DEVELOPMENT
DELIVERY OF EMPLOYMENT
SPACE IS AT THE FOREFRONT
PAGE 28/29 MARKETING & PR
10.3.7 E-marketing
The proposed use of e-marketing includes the
following:
Websites
A new website www.networkvillage.co.uk has
been created using the design and content of
the Network Village vision document. It has
been designed so that it can be updated with
news features
The website – www.networkspace.co.uk –
has a full content management system and
is constantly up-dated
Analysis of the web traffic statistics reports will
help us to improve website content, graphics and
lay-out or add more links to other parts of the sites
Search engine optimisation
Search engine optimisation is an effective way to
generate targeted website traffic through strategic
selection of key phrases, and research shows 60-80%
of site traffic originates from search engines.
10.3.8 Budget and Timing
A marketing and PR action plan and budget have
been prepared. The action plan includes:
Updated and expanded database of key players
for mail shots and events
Identify range of key events to attend and
possible speak opportunities
Presentation and meeting dates in the diary
for EP, RDAs and regeneration contacts
11. RISK ASSESSMENT
AND MANAGEMENT
11.1 GOVERNANCE
The development process is managed by Langtree
on behalf of Network Space involving highly
experienced external consultants and managed
through four stages of reporting:
Initial site assessment – carried out to identify
the risks on delivery, timescale, planning, funding
and marketing
Outline project proposal – providing a more
detailed assessment
Pre planning report – a detailed report prepared
prior to submission of the planning application
Post tender report – prepared following receipt of
tenders and prior to letting construction contracts
On an on-going basis the joint venture partners attend
monthly Operations meetings dealing with asset
management and reviewing individual development
schemes. Board meetings are held quarterly.
Network Space has a strong corporate governance
regime following English Partnerships corporate
guidance and subject to annual assessment by their
internal auditors. Network Space has always received
a good rating.
PAGE 30/31 RISK ASSESSMENT AND MANAGEMENT
11.2 ACQUISITION
Through a combination of experience and advice
from external consultants, during the acquisition
process risk is managed through the reporting
system with valuations prepared by external
property agents and cost plans prepared by external
consultants. Legal risk is managed by independent
lawyers who draft and negotiate development
agreements and prepare reports on title.
11.3 CONSTRUCTION
Tender process – A minimum of four established
regionally based contractors with a proven track
record are invited to tender and normally three out
of four are contractors who Network Space has
used before. The tender process and assessment
is managed by an experienced professional team
familiar with Network Space developments.
Post-contract – Contracts are normally awarded
on a Design and Build basis and are managed by
external project management consultants who liaise
with the contractors on behalf of Network Space.
12. MONITORING AND EVALUATION
12.1 PERFORMANCE MANAGEMENT FRAMEWORK
12.1.1 Introduction
This section provides a framework for the systematic
collection of information in order to measure the
performance of the Network Villages project in terms
of monitoring and its subsequent evaluation.
12.1.2 Monitoring
Monitoring is the process of checking actual progress
and comparing this with the plans for a project
when it was conceived or promoted. It can provide
an early warning that things are not going to plan
and an opportunity to take timely corrective action.
Similarly, it can usefully highlight where performance
is significantly better than expected. The partners
therefore recognise the importance of giving time
and effort to developing and implementing an
effective monitoring system.
Establishing an appropriate framework for the
on-going monitoring of Network Villages will be
essential in order to ensure that progress is in line
with the objectives set by the partners. Accordingly,
an approach composed of two elements is proposed:
A bottom-up approach based upon the
assessment of individual schemes; and
An evaluation of the programme as a whole
Each of the approaches has its advantages and
disadvantages. For example, while the bottom-up
approach can provide a detailed understanding of
the effects of the key schemes within Network
Villages and the communities within which it sits,
it may be difficult to discern the wider, induced or
less tangible impacts. On the other hand, a formal
evaluation can provide an overall understanding of
how Network Villages is performing, albeit that up-
to-date socio-economic indicators are often not
available, and it may be difficult to attribute impacts
to Network Villages or its elements as opposed to
external factors. The proposed methodology for this
Plan therefore seeks to use both approaches.
PAGE 32/33 MONITORING AND EVALUATION
12.1.3 Scheme monitoring
A clear and simple performance management
system will be established to collect monitoring
information for each of the schemes in line with
Langtree’s standard reporting format for Network
Space. This will mean assembling and updating
information on each scheme.
This includes:
Finance Report
Lettings and Management Report – portfolio
statistics, current deals, vacancy summary,
enquiry tracking, space available
Development Report
PR and Marketing Report
The following reporting arrangements are proposed:
Monthly reports as part of the established
Network Space accounting and reporting cycle
for Operations and Board meetings, focusing
on scheme performance; and
An Annual Report, for the joint venture partners –
for use by both partners in line with their own
external communications strategies
In addition, an annual Business Plan and budget
will be prepared for consideration of the Network
Space Board in its normal cycle for these in late
spring of each year
12.2 EVALUATION
12.2.1 Overview
Evaluation is the critical examination of projects and
programmes in order to assess the extent to which
the objectives of intervening have been achieved,
additional impacts or changes that are attributable
to the project or programme have resulted, to assess
the extent to which changes were secured in an
efficient and cost effective way, and to provide
lessons for the future. Monitoring data will be one
of the key inputs into any evaluation.
It is proposed that the evaluation of Network Villages
should comprise two components as follows:
Interim evaluation – within the first year following
the completion of the first few schemes – it is
suggested that this would be after 2 years; and
Full evaluation – an independent evaluation of
Network Villages after the first 4 years of operation
12.2.2 Interim evaluation
The evaluation will be undertaken in order to assess
the added value of Network Villages. It is proposed
that the evaluation will be based upon a review of
monitoring data collected to date coupled with a
structured interview programme of partners and
other organisations.
12.2.3 Full evaluation
A full evaluation of Network Villages will be
commissioned after 4 years of operation. This
evaluation would be undertaken by independent
consultants. It would address a number of key
questions, including:
The impact of Network Villages;
Causality and attribution;
Additionality and value for money;
Change processes;
Effectiveness;
Sustainability and equality; and
Key lessons
13.WAY FORWARD
This Business Plan has the backing of English Partnerships and Langtree and during the first
twelve months we will aim to pass the following milestones:
Spring 2008
A marketing and PR action plan to
be in place including a programme of
presentations and meetings with senior
executives and decision makers involved
in regeneration in the initial target areas
Summer 2008
To have secured planning permission for
Murton Network Village with a target for
starting on site by December 2008
By Spring 2009:
The first Network Village scheme at
Murton will have obtained planning
permission and will be on site. During
the process key issues will have been
identified regarding masterplanning,
consultation and costs
Further opportunities for Network Village
schemes will have been identified and
will be under assessment and negotiation
PAGE 34/35 WAY FORWARD
The Business Plan outlines the Network Space operational areas in the former English
Coalfields regions and outlines the minimum size and type of sites to be considered.
Autumn 2008 During the course of the business plan it may be necessary to review the business plan
To have completed a programme of model based on ongoing experience of the planning and development for Network Villages.
presentations and meetings with senior Property market conditions will be constantly monitored and factored into reviews.
individuals, key stakeholders and delivery For further information on Network Village please contact:
partners in the initial target areas
Network Space Ltd
December 2008
Centrix House
To have identified and agreed terms for
Crow Lane East
two further Network Village schemes
Newton-le-Willows
WA12 9UY
Tel: 0800 542 0402
Email: info@networkvillage.co.uk
Website: www.networkvillage.co.uk
A programme of presentations and
meetings will be underway in the second
phase of target areas
Increased awareness of Network Space
in the target areas and Network Villages
is recognised by stakeholders as an
innovative and sustainable mixed-use
regeneration model