10 September 2016 – by David Hatcher Transactional volumes are in the doldrums with just £1.7bn traded in July according to Colliers International. With the industry now in back-to-school mode, the final few months of the year will determine whether the slowdown has been a Brexit blip or if the
HS2 engineering director Chris Dulake is taking up a new job in May with consulting engineer Mott MacDonald as major projects portfolio director. Above: Chris Dulake He joins Mott MacDonald from HS2 Ltd, where he was engineering director for Phase 1. Before HS2, he spent seven years as chief engineer
Shares in Interserve slumped 27 per cent on Friday after the construction and support services group was hit by cost overruns and delays on a waste-to-energy plant in Glasgow. The FTSE 250 company said on Friday that the troubles with the Glasgow waste plant would result in a £70m charge
Nearly 1,000 homes are set to be built in Salford as part of a multimillion-pound private rented sector (PRS) investment unveiled by housing minister Gavin Barwell. Developer Dandara Group will spearhead the scheme with support from the Homes and Communities Agency (HCA) and banking giant HSBC. Unlocking £400 million of
Leeds-based provider of logistics solutions to the retail sector, Clipper Logistics plc, has reported strong financial growth for the six months ending October 31, 2016. In this period, Clipper’s revenue increased to £164.9 million, which is a rise of 16.5% on last year’s £141.5 million figure. Profit before tax also
Construction of a 95,000 sq ft speculative office building in Bristol is set to begin following the appointment of Willmott Dixon to a £20m development contract. The building called Aurora is part of Finzels Reach, the new quarter being created in the heart of Bristol by Bristol-based developer Cubex. Gavin
The government has pledged £45 million to help unlock more than 2,000 private rented homes in Manchester, Leeds and Birmingham. Projects in the three cities will receive £45 million from the government’s new £3 billion Home Building Fund, which will help to construct 25,000 new homes over the next four
A new multi-million pound deal to boost housing in key cities will provide more than 2,000 homes for private rent and create thousands of jobs, Housing Minister Gavin Barwell has announced. This latest private rent deal will unlock £400 million of development, under the government’s programme to increase investment in
As the definition of sustainability has grown and diversified in recent years, the time is now right to bring together the various disciplines across the built environment to harmonise and redefining sustainability. In the December 2016 issue of ABC+D Magazine, Martin Hurn, brand director at Ecobuild, discusses how to achieve
10 September 2016 – by David Hatcher Transactional volumes are in the doldrums with just £1.7bn traded in July according to Colliers International. With the industry now in back-to-school mode, the final few months of the year will determine whether the slowdown has been a Brexit blip or if the market is in for a prolonged slowdown. The biggest struggle may be the dearth of stock available, with sellers unwilling to let go of their crown jewels during a time of instability. Here are some of the best opportunities to strike a deal: Fitzroy Place, W1 – 50% stake Price: £225m – 4% yield Owner: Kaupthing Sector: Office Size: 240,000 sq ft Kaupthing’s stake in Fitzroy Place was put up for sale last month and the new headquarters of Estée Lauder is one of the most coveted investment opportunities currently available. Aviva Investors owns the other 50% stake in the building and although its preference is not to sell, rumour is rife that if the right offer was made it would have to be considered. All the content from this weekís magazine, including this article, is available in the new app. Victoria Student Halls Price: £450m Owner: Blackstone Sector: Student accommodation Size: 7,921 beds, 32 assets Blackstone has this week put up for sale the student accommodation business it bought from the hands of Ireland’s National Asset Management Agency in 2014 when it sold the private equity firm loans taken out by Michael O’Flynn. The portfolio will be an opportunity for investors such as Brookfield, Mapletree, LetterOne to build further scale in the sector. Winnersh Triangle, Berkshire Price: £375m – 5.4% yield Owner: Patrizia & Oaktree Capital Management Sector: Office Size: 1.4m sq ft The market snubbed the sale of Patrizia and Oaktree’s business park near Reading earlier this year when it was put up for sale through JLL. In the run-up to the EU referendum, the market cooled for such major assets outside of London but with there being at least some more clarity, at the right price, a deal would surely be feasible. Click here to see which other buildings should be on your list Source link
HS2 engineering director Chris Dulake is taking up a new job in May with consulting engineer Mott MacDonald as major projects portfolio director. Above: Chris Dulake He joins Mott MacDonald from HS2 Ltd, where he was engineering director for Phase 1. Before HS2, he spent seven years as chief engineer on the Crossrail project. During this time he was the single point of engineering technical authority for the programme, providing technical leadership to deliver a world-class level of performance. Mott MacDonald has confirmed to HS2 Ltd that Chris Dulake will not be involved in HS2’s current procurement processes. Mott MacDonald director Mike Haigh said: “Chris is a fantastic appointment for us as he has great insight into the priorities for clients undertaking major infrastructure projects. He will be a hugely valuable resource for our staff due to his vast experience and our clients can only benefit from his knowledge to help realise their project ambitions.” This article was published on 24 Mar 2016 (last updated on 24 Mar 2016). Source link
Shares in Interserve slumped 27 per cent on Friday after the construction and support services group was hit by cost overruns and delays on a waste-to-energy plant in Glasgow. The FTSE 250 company said on Friday that the troubles with the Glasgow waste plant would result in a £70m charge in its first half. As a result it expects net debt to be £35m higher at the end of the year than it had previously said. More On this topic IN Support Services Interserve has been hired by Viridor, the waste collection company, to build the £154m plant, which is designed to turn rubbish into biogas that will provide electricity to the National Grid. But the project has been hit by substantial delays and difficulties with subcontractors. Adrian Ringrose, chief executive of Interserve, said he would be “pursuing every opportunity to mitigate this situation”. “Our expectations for the UK construction division as a whole have been significantly adversely impacted by a further deterioration in our Glasgow energy-from-waste contract,” he added. The shares tumbled to a four-year low of 280p, compounding a 63 per cent fall over the last two years. Along with other construction companies such as Mears, Carillion and Mitie, Interserve has been shifting its focus from construction to more profitable support services work, which accounts for more than 60 per cent of the business. It provides probation services for the UK Ministry of Justice, nursing care at home for local authorities, and welfare-to-work services for the Department for Work and Pensions. Analysts have warned that this shift leaves the business exposed to the increase in the minimum wage to £7.20 an hour from April and £9 by 2020. There are also concerns over revenues from its construction business in the Middle East, where the slump in the oil price is slowing projects as well as payments. Joe Brent, analyst at Liberum Capital, wrote in a sell note on Friday that the increase in debt to an estimated £360m in 2017 or 2 to 3 times earnings before interest, taxation, depreciation and amortisation was “amber and approaching red in our view”. Meanwhile, Peel Hunt cut its target price from 600p to 450p. It called the exceptional charge “an unwelcome surprise given a belief that this had been addressed in 2015”. Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link
Nearly 1,000 homes are set to be built in Salford as part of a multimillion-pound private rented sector (PRS) investment unveiled by housing minister Gavin Barwell. Developer Dandara Group will spearhead the scheme with support from the Homes and Communities Agency (HCA) and banking giant HSBC. Unlocking £400 million of development, a total of 2,062 houses will be built across sites in Manchester, Leeds and Birmingham. This comprises 995 homes at Chapel Wharf in Salford, 744 at Ingram Row in Leeds and 323 at Arena Central in Birmingham. It is estimated that up to 1,500 construction jobs could be created across the three cities. The project will receive £45m funding from the government’s new Home Building Fund, which makes money available to help kick-start new development and housebuilding. “This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester – it will create jobs and opportunities for many hundreds of people,” said Barwell. HCA chairman Sir Edward Lister said that the investment demonstrated a determination “to get builders building and substantially grow the market in this country”. “We’re working on a number of other deals, with builders of all sizes, and we’re also using our investment and land to attract new entrants to the industry,” he added. Dan Tynan, founder and chairman of the Dandara Group, said: “Dandara has already built more than 2,500 properties of this type in the last ten years in the UK, including Scotland’s largest PRS scheme of almost 300 properties in Aberdeen, acquired by LaSalle Investment Management on behalf of a large pension fund.” HSBC’s head of housing in the UK Hugh Taylor said: “We are really pleased to be supporting Dandara alongside the HCA with development finance on this multi-site rollout of their PRS programme. It is a significant contribution to the ‘housing challenge’ and is further evidence of PRS beginning to emerge as a distinct asset class.”
Leeds-based provider of logistics solutions to the retail sector, Clipper Logistics plc, has reported strong financial growth for the six months ending October 31, 2016. In this period, Clipper’s revenue increased to £164.9 million, which is a rise of 16.5% on last year’s £141.5 million figure. Profit before tax also increase by 25.5% up to £6.9 million, compared with £5.5 million last year, and the total amount of cash generated from operations went up by 67% to £12.3 million from £7.4 million last year. Subsequently, Clipper’s earnings per share are now 5.3 pence, which is a 23% rise from last year’s 4.3 pence. The firm achieved this growth as it extended the Click and Collect network for John Lewis to full national coverage, and formally entered into a Joint Venture with John Lewis. Clipper also agreed to new contracts with M&S for returns and Halfords for inbound bulk handling and storage. The firm’s European business has also carried on making progress, with new contracts secured in Germany which will marginally contribute in the second half with full benefits in the next financial year. Executive Chairman of Clipper, Steve Parkin, commented: “I am pleased to confirm that the Group has once again delivered strong results in line with the Board’s expectations. Revenue and profit growth has been strong in all sectors, and we have improved further our operating cashflow. “Our market-leading position in the high-growth area of e-fulfilment and associated services, has been enhanced further by the recent formalisation of a Joint Venture with John Lewis to provide a Click and Collect service dedicated to the needs of high street retailers. We expect this to significantly enhance profits in future financial periods. “The first half of the current financial year saw strong organic growth on existing contracts, particularly in the ecommerce sector, and this was complemented by a number of new contract wins.”
Construction of a 95,000 sq ft speculative office building in Bristol is set to begin following the appointment of Willmott Dixon to a £20m development contract. The building called Aurora is part of Finzels Reach, the new quarter being created in the heart of Bristol by Bristol-based developer Cubex. Gavin Bridge, director at Cubex, said: “This is a fantastic milestone for Aurora. With cranes arriving on site now and construction activity moving on apace, it won’t be long before we see a new addition to Bristol’s skyline.” Aurora will consist of six storeys, with each floor measuring 15,500 sq ft. There will also be 51 car parking spaces, electric car charging points and secure motorcycle and bicycle storage. Neal Stephens, managing director of Willmott Dixon Construction in Wales and the West, said: “With a local office in Bristol, we’re delighted to have the opportunity to build such an important office for the city’s economy, one that will attract new investment and set the standard for BREEAM Outstanding in a city that was 2015’s European Green Capital. “We will work hard to ensure this project benefits the Bristol economy, partnering with local companies and sustaining jobs for local people.” Cubex expects the building to be ready for fit out by the end of next year. Willmott Dixon, the construction and property services group, has posted a multimillion-pound rise in half-year profits and unveiled a new corporate structure to create three distinct companies. Under the revised structure, both the residential development and support services companies will move from under Willmott Dixon’s umbrella to become sister businesses. The group said the move will give each business “greater operational, financial and strategic independence” to pursue their individual growth plans. Willmott Dixon generated a profit before tax and amortisation of £12m for the six months to 30 June 2016, an increase of 48 per cent from £8.1m a year earlier, on turnover of £598m. The group’s secured and probably forward order book stood at £1.15bn at the end of the period.
The government has pledged £45 million to help unlock more than 2,000 private rented homes in Manchester, Leeds and Birmingham. Projects in the three cities will receive £45 million from the government’s new £3 billion Home Building Fund, which will help to construct 25,000 new homes over the next four years The funding will support a £400 million PRS development pipeline throughout the three regions, with 995 new homes in Manchester, 744 in Leeds and 323 in Birmingham. Developer Dandara Group is leading the project with backing from the Homes and Communities Agency and HSBC. Dandara will manage the letting and management of all the developments built using the funding. Work is set to commence in January 2017 and is due to be completed in December 2019. The government estimates the work will help to create a further 1,500 construction jobs across the three cities. Hugh Taylor, HSBC head of housing in the UK, commented: “We are really pleased to be supporting Dandara alongside the HCA with development finance on this multi-site roll-out of their PRS programme. “It is a significant contribution to the housing challenge and is further evidence of PRS beginning to emerge as a distinct asset class.” Communities secretary Sajid Javid launched the Home Building Fund at the Conservative Party conference and is designed to provide loans for small and medium enterprise builders, custom builders, offsite construction and essential infrastructure. The measures form part of the government’s £7.2 billion investment in housing announced in last week’s Autumn Statement. Housing minister Gavin Barwell has reiterated the government’s commitment to the build-to-rent sector, and confirmed last week that a package supporting the sector would be included in a housing white paper due to be published next year.
A new multi-million pound deal to boost housing in key cities will provide more than 2,000 homes for private rent and create thousands of jobs, Housing Minister Gavin Barwell has announced. This latest private rent deal will unlock £400 million of development, under the government’s programme to increase investment in purpose built rental properties, and will grow the amount of good quality rental homes in Leeds, Manchester and Birmingham. The project is one of the largest private rental sector investments in the UK and will receive £45 million funding from the government’s new Home Building Fund ─ which makes money available to help kick-start new development and housebuilding. Housing and Planning Minister Gavin Barwell said: “Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone. “This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester – it will create jobs and opportunities for many hundreds of people.” Sir Edward Lister, HCA Chairman, said: “This massive investment, one of the largest private rented deals this year, shows our determination to get builders building and substantially grow the market in this country. “We’re working on a number of other deals, with builders of all sizes, and we’re also using our investment and land to attract new entrants to the industry.” Founder and chairman of the Dandara Group, Dan Tynan said: “Dandara has already built more than 2,500 properties of this type in the last 10 years in the UK, including Scotland’s largest private rented sector (PRS) scheme of almost 300 properties in Aberdeen, acquired by LaSalle Investment Management on behalf of a large pension fund. Read more at http://specificationonline.co.uk/articles/2016-12-02/thousands-of-new-homes-and-jobs-in-three-key-cities
As the definition of sustainability has grown and diversified in recent years, the time is now right to bring together the various disciplines across the built environment to harmonise and redefining sustainability. In the December 2016 issue of ABC+D Magazine, Martin Hurn, brand director at Ecobuild, discusses how to achieve this, following the show’s recent roundtable on how manufacturers can respond to the changing environment and help shape the future of sustainability. The definition of sustainability is becoming increasingly multifaceted. It is no longer limited to low carbon construction and now includes a range of factors such as wellbeing, placemaking and infrastructure. While the increasingly broad reach of the concept and its continuing prominence can only be a seen as a positive development, the expansion and divergence in the understanding of sustainability across the built environment has begun to create a new challenge in terms of driving the sustainability agenda forward and creating common goals for the future. To tackle this, Ecobuild launched the Redefining Sustainability campaign. The aim of the campaign is to bring together the various meanings of sustainability from across the construction industry and, ultimately, arrive at a universally accepted definition that is appealing, engaging and accessible to all. Read more at http://www.buildingtalk.com/redefining-sustainability-for-today-and-the-future/
