Surge in VC investment reflects appetite for region’s ‘innovation-led sectors’
Venture capital investment in start-up and scaling businesses in the East of England rose sharply to £680 million in the first quarter of this year, driven by strong interest in IT and healthcare enterprises. The upturn marked a 41 per cent rise on the £480 million of investment in the region seen in the final three months of last year and was spread across 39 deals. It reflected sustained appetite among VC investors in the East’s burgeoning start-ups community, according to the latest KPMG Private Enterprise Venture Pulse report. Fifteen IT and 14 healthcare businesses attracted VC investment in the first quarter, together accounting for three quarters of total deals in the region. However, total deal numbers in the region were slightly down. Joe Faulkner, East Anglia senior partner at KPMG UK, said: “It’s promising to see a notable rise in VC investment across the East of England over the last three months, reflecting strong investor appetite for the region’s innovation-led sectors. Deal values rose significantly for life sciences and biotechnology, further cementing the East’s world-class influence in biotech and health innovation.” He added: “This momentum speaks to the depth of talent and commercial potential in the East of England, which is increasingly seen as a strategic hub for high-growth businesses. With continued public and private investment into the Cambridge-Oxford Arc, we would hope to see these investments yield more long-term opportunities for growth, research and commercialisation.” Notable fund-raisings included £55.5 million for Maxion Therapeutics and £25 million for TRIMTECH Therapeutics, both Cambridge biotech firms and fresh funding for Ctrl AI, an AI and machine learning business based in Norwich. Nationally, the UK stayed top across the EU with a total of £4.1 billion raised across 507 deals in the first quarter, despite a fall in overall investment and number of deals.
Sale of Ipswich retail building seen as ‘powerful step’ in regenerating town centre
Hopes of better times ahead for Ipswich town centre have been raised by the sale of a prominent empty retail building – the former Grimwades in Westgate Street – to the borough council. The building, where the freehold was sold with assistance from Penn Commercial, has been vacant since Clinton Cards left in 2012. The council said that one of the two units in the building, on the town’s Cornhill, was already under offer and the other unit was expected to be soon. Cllr. Neil MacDonald, leader of Ipswich Borough Council, said: “We want to see a vibrant town centre as much as our residents and businesses do, and this acquisition demonstrates our determination to achieve this. This is more than a property purchase, it’s a powerful step in regenerating our town centre and restoring pride in the heart of Ipswich.”
Penn Commercial managing director Vanessa Penn, who acted for vendor Euro Property Investments, said: “…we are pleased to have helped to breathe new life into this important, historic cornerstone of Ipswich’s busy retail centre. We are looking forward to seeing the exciting new plans for this iconic town centre property as they develop.”
‘Signs of improvement’ in commercial property sector
Commercial property market sentiment remains ‘generally cautious’ but key sectors – notably prime office and industrial space – are beginning to show signs of improvement, according to the first quarter RICS commercial property monitor. RICS chief economist, Simon Rubinsohn, said: “Despite the turbulence engulfing the geo-political environment following President Trump’s tariff announcement at the start of April, feedback to the latest RICS was steady with the headline investment enquiries metric returning to positive territory, albeit modestly, for the first time since the second quarter of 2022.” All-property tenant demand posted a net balance of +1 per cent, whilst the office (+6pc) and industrial (+9pc) sectors showed modest gains and retail struggled with a net balance of -13pc.
In Peterborough, Martin Blackwell of Blackwell Consulting, said the picture between sectors is very mixed: “…office deals are happening out of centre, there is a need for better space with parking in the city centre; modern industrial and trade counters have continued to be sought after; leisure orientated retail is showing early signs of tentative improvement, although National Insurance changes are a definite worry to occupier clients. The back drop of business rates liabilities is deterring investment and upgrade projects.”
Norfolk marine companies sign agreement for vessels to support East Anglia Three windfarm
Two Norfolk-based marine companies are set to play a major role in the construction of the region’s newest offshore windfarm, after signing multi-million pound agreements with ScottishPower Renewables. The energy company – part of Iberdrola Group – has signed charter agreements worth more than £16 million in total with Caister-based NR Marine Services and Great Yarmouth-based OEG for the provision of vessels to support the construction of its East Anglia THREE offshore windfarm, which comes into operation 69 km off the Suffolk coast next year. The vessels will operate from the port of Lowestoft. NR Marine Services will provide two crew transfer vessels (CTVs) – NR Rebellion and NR Hunter and OEG will provide support vessel Tess, for guard operations at the windfarm. Ross Ovens, ScottishPower Renewables’ managing director for offshore, said: “It’s fantastic to have NR Marine Services and OEG on board – supporting the construction of East Anglia THREE right on their doorstep, bringing more investment and opportunity to the region and contributing to a cleaner and greener future for us all.”
Ambitious mid-sized firms target overseas expansion and export growth
Expanding or exporting overseas is a priority for more than two-fifths of East Anglia mid-sized businesses over the next year despite complex international trade conditions, according to BDO’s Economic Engine survey of 500 firms in the sector. Companies plan to target regions such as South America, Africa and Australia whilst Europe also remains a healthy market, with 38 per cent focusing on the EU in 2025. Over half plan to pursue countries outside the bloc such as Norway, Switzerland and Iceland. But firms continue to face supply chain pressures including uncertainty on tariffs, delayed deliveries and skills shortages. Peter Harrup, regional managing partner at BDO in East Anglia, said: “Although economic conditions remain challenging, mid-sized businesses in East Anglia are highly ambitious and have their sights firmly set on driving growth, with overseas trade playing a central part in helping to realise those ambitions. “
Norwich-based financial services group bolsters presence in Suffolk with acquisition
Norwich-based financial services group Alan Boswell Group has acquired Andrew Thompson & Associates (AT&A), an East-Suffolk-based commercial insurance broker founded in 2010. It follows the group’s 2024 purchase of two Norfolk-based brokers, Priory Insurance Brokers and The Insurance Centre. AT&A’s staff and premises will be retained, while its clients will see additional support and services from the 450-strong group. The acquisition, alongside ABG’s office in Bury St Edmunds, bolsters the group’s presence in Suffolk. Andrew Thompson, founder of AT&A, said: “We’re excited to join Alan Boswell Group and remain committed to providing the same care and service our clients are familiar with. Being part of a larger brokerage means we will benefit from an increased presence in the market and additional resources and expertise, enhancing the service we deliver.”
Executive chiarman Alan Boswell said: “…AT&A shares our values and commitment to delivering exceptional service to clients, and we’re confident that Andrew and the team will be a fantastic addition to the group.”
See Profile Alan Boswell Group
Law firm advises on global infrastructure company acquisition
A team from regional law firm Ashtons Legal has assisted Derbyshire-based global infrastructure Torquay Holdings (THL Group) on its acquisition of Kent-based Solar Gates UK. The deal was led by partner Craig Fiddaman (photo, right) who worked with the buyer previously on other deals. He was assisted by Greg McCurday from the firm’s commercial property team, Emily Dixon in employment and Hannah Murphy, Whitney Crow and Hannah McCreadie from the corporate and commercial team. THL Group already owns Mobile Visual Information Systems and Bartco Australia, other providers in the traffic and infrastructure industry. Solar Gates UK provides solar-powered safety and security barriers and traffic management solutions. Scott Paton, CEO of Torquay Holdings, added: “Solar Gates UK is a welcome addition to the Torquay Holdings family and this acquisition strengthens our mission to deliver sustainable, innovative infrastructure solutions globally. Craig and the Ashtons team have worked with us before, demonstrating a strong understanding of our business, and delivered excellent results.”
Photo: Craig Fiddaman, partner, Ashtons Legal.
Frinton on Sea hotel with ‘panoramic views’ put up for sale
The freehold of the Rock Hotel in Frinton on Sea in Essex has been put up for sale. Having been run by a local family since 1977, the hotel was built in the late 19th century and retains original features and panoramic sea views. It extends to around 5,174 sq ft across three storeys, with a restaurant, bar, lounge and full commercial kitchen, along with ten guest bedrooms, a garden, parking and a garage. Whilst still trading as a hotel and restaurant, the property offers potential for alternate uses, subject to planning. It has planning permission for a change of use to self-catered tourism with separate manager’s accommodation. The current owners said: “It is such a prominent building in a wonderful location and there are breathtaking sea views from many of the bedrooms and much of the ground floor. Whilst Frinton still offers old world charm, it has undergone investment over the years and is now home to some fantastic independent shops with plenty of outdoor pursuits to enjoy.” For further information contact Edward Nolan on 01206 854545 or Matthew Pavey on 01255 879020.
Marketing agency launches service to test ‘strength and confidence’ of brands
Norfolk-based agency Naked Marketing has launched a new website together with a service for businesses to assess and test the strength and confidence of their brand. The free service at https://brand.nakedmarketing.co.uk also comes with personalised tips & advice to help businesses in the region to create strength and resilience in tough times. “Investing in your brand and marketing at this stage in the cycle can stand you in good stead. Strong brands have a better survival rate. When other businesses are pulling back, it can often be an opportunity to increase your market share,” said Dan Bradfield, managing director of Naked Marketing, which is based at Hingham in south Norfolk. The service is free but can lead to professional links. He adds: “Often, we see the confidence ratchet up when we’ve done this work. Confidence is an intrinsic part of of success.” He adds: “Naked is very focused on East Anglia. We really want to help home-growth companies ”. The new website can be seen at www.nakedmarketing.co.uk
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