Pontegadea, the private investment company of Spanish billionaire Amancio Ortega, has made its first move into the UK Build to Rent (BTR) market with the £150 million acquisition of a residential development on London’s Baker Street. The transaction sees Pontegadea acquire 219 Baker Street in the West End from investor and developer Ridgeback Group, adding 86 apartments to an already substantial UK property portfolio. The deal, equivalent to approximately €175 million, represents a reported yield of 4%. Ortega is the founder and main shareholder of Inditex, the global fashion group behind Zara and brands including Pull&Bear and Massimo Dutti. While his wealth is closely associated with the international retail sector, Pontegadea has built up a major global property portfolio, with UK real estate holdings now valued at more than £2.7 billion. The Baker Street acquisition is particularly notable from a built environment perspective because of the history of the property itself. The Grade II-listed Art Deco building was originally constructed in 1932 as the headquarters of Abbey National, which later became part of Santander. The building was converted to residential use in 2004 and subsequently upgraded by Ridgeback. Its acquisition provides Pontegadea with an immediate foothold in the professionally managed UK rental market without the development and construction risks associated with delivering a new BTR scheme from the ground up. The deal also extends the investor’s presence across different areas of the UK property market. Its existing London assets include The Post Building on New Oxford Street, while in 2025 Pontegadea acquired an 850,000 sq ft Amazon logistics warehouse near Liverpool for £81 million. The move into BTR comes at a significant time for institutional investment in UK rental housing. BTR transactions reached a record £2.2 billion during the second quarter of 2026, demonstrating continued investor appetite for established, income-producing residential assets despite wider pressures facing development and construction. For the wider property sector, the £150 million Baker Street transaction is another indication of how the UK rental market is attracting international capital traditionally associated with commercial real estate. Pontegadea’s arrival adds another major global investor to the sector and, with an established London residential asset providing its entry point, could signal further interest from the group as the UK BTR market continues to mature. Building, Design & Construction Magazine | The Choice of Industry Professionals

Construction is gathering pace at the £46 million Nursery Street Build to Rent (BTR) development in Sheffield, as structural works progress on a scheme set to bring new purpose-built rental homes to a prominent brownfield site in the city. The development is transforming the former Coroner’s Court site on Nursery Street, replacing previously developed land with a new residential scheme designed specifically for the rental market. Plans for the site include 101 BTR homes, comprising 31 studios, 35 one-bedroom apartments and 35 two-bedroom apartments. The development also incorporates a range of resident amenities, including a gym, co-working facilities, a recording studio, communal kitchen space and cycle parking. With structural construction now advancing, the project is moving into an increasingly visible phase, adding to the pipeline of new residential development reshaping Sheffield and supporting the continued growth of BTR beyond the UK’s largest cities. Sustainability has also been incorporated into the development strategy. Earlier project information outlined proposals for air source heat pumps, photovoltaic panels and low-energy lighting as part of a drive to deliver homes to high energy performance standards. The scheme has also attracted public investment, with South Yorkshire Mayoral Combined Authority documentation previously approving £1.7 million of grant support towards the development. The authority highlighted the regeneration benefits of bringing a derelict brownfield site back into productive use while delivering new rental accommodation and improving the surrounding area. Nursery Street comes at a time when Build to Rent is playing an increasingly important role within the UK residential development market, particularly in regional cities where demand continues for professionally managed, amenity-led rental accommodation. For Sheffield, the development represents more than the delivery of new apartments. By regenerating an underused urban site and combining new homes with shared facilities and energy-efficient building technologies, the project contributes to the wider evolution of the city centre residential market. As the structure continues to rise, Nursery Street is set to become another significant addition to Sheffield’s expanding BTR landscape. Building, Design & Construction Magazine | The Choice of Industry Professionals