Confidence in the UK’s commercial real estate markets will unquestionably fall due to the Brexit uncertainty with a ripple effect set to spread beyond London, according to a new analysis. It is likely that decisions will be pushed back in the period of heightened economic and political uncertainty that no one can define or quantify and it will most likely take several years for people to fully understand the implications of the decision to leave the European Union, says the report from Fidelity International. But there are likely to be positive as well as negative effects due to the referendum decision. ‘The question is whether resultant pricing volatility is a fair reflection of inherent risks or a potential mispricing opportunity,’ said Adrian Benedict, the firm’s real estate director. He pointed out that before the referendum, transaction volumes were already down 50% in the year to date compared with the same period in 2015. ‘We anticipate volumes to remain modest for the rest of 2016 as investors assess the implications,’ he added. ‘As we saw in the aftermath of the 2008 financial crisis, we can expect real estate investors to seek refuge in the relative safe harbour markets like London West End or long leased assets. However, unlike then, values are already 10% to 20% above long term levels,’ Benedict explained. He believes that many investors will be turning their attention to the occupier market, in particular evaluating the impact on financial and business services companies; anyone with those type of tenants are going to be more circumspect but the impact won’t just be confined to London. ‘We can expect to see a ripple effect across the country. Bournemouth for example has a high proportion of people employed by financial service companies and it would be naïve of us to think the impact will be contained to the capital,’ Benedict said. ‘So long as occupiers remain cash generative, we’re unlikely to face a material pricing correction arising from weak fundamentals. Supply of new space remains very constrained and vacancy rates in the key cities across the UK have largely recovered,’ he added. He also pointed out that having short leased assets doesn’t necessarily mean occupiers will move out. ‘Fidelity’s experience suggests less than 25% of occupiers chose to exercise their option to terminate leases or move at expiry. Rather than selling or buying real estate ‘markets’ a greater emphasis will need to be placed on underwriting the occupiers and the certainty of their cash flows,’ he said. ‘As with most clouds, there is a silver lining. Over the last 12 months international buyers accounted for 40 percent of commercial property deals in the UK, a near doubling within 10 years. The relative attractiveness of the UK market is explained by a strong economy but also a relatively weak currency. In US$ terms, the UK real estate market is now back to pre-2004 pricing levels. The question is whether international investors will view this as an attractive entry point or defer making a decision,’ he concluded. Patrick Scanlon, a commercial research partner at Knight Frank believes that the referendum result creates both threats and opportunities for the central London office market. ‘Economic uncertainty is rarely a positive  for any market, and in the short term we should expect some occupiers to delay committing to new office moves as they take stock of what the new landscape means for their businesses,’ he said. He pointed out that London represents the largest market for euro-denominated trading, and major banks with euro trading desks in London may find that they need to relocate some of these functions to office markets within the EU. ‘While this does not necessarily mean a wholesale relocation, we should expect some vacant space from banks to come to the market once this restructuring has taken place,’ he added. He also pointed out that many businesses with a large London presence are focused on markets outside the EU, and the UK’s exit from will have a limited impact on them. Indeed, since the general election just over a year ago there has been above- average office take-up suggesting firms have adopted a business as usual approach and global operators such as Deutsche Bank, Thomson Reuters, Ashurst, Google and Facebook have made significant long term commitments to London. ‘There is likely to be some release of office space as businesses tighten their belts to weather the period during which trade treaties are being negotiated. However, currently availability levels are particularly low and the development pipeline remains fairly limited. The market has capacity to absorb a rise in supply before there is a possibility of a fall in prime headline rents, Scanlon explained. However, he things that the impact on the investment market is likely to be less obvious. ‘While the economic uncertainty during our exit negotiations will undoubtedly deter some domestic investors, the relative discount available to purchasers in foreign currencies will attract significant interest,’ he said. ‘In the medium term however, central London commercial property will continue to offer a higher yield than most other asset classes, and may even benefit from the instability in the equity markets,’ he concluded. Source link

Category: Construction Industry Today | Subscribe to Construction Industry Today Feed Published Thu, Sep 29th 2016 Fermacell boards dry-line a unique public/private gallery. Posted via Industry Today. Follow us on Twitter @IndustryToday Gypsum fibreboard panels from specialist supplier Fermacell were specified for the new home of one of the most historically significant private collections of fine and decorative arts, for their loading capabilities at least. Some 4,000m2 of fermacell board was used to dry-line the walls, ceilings, bulkheads and external soffits of the award-winning gallery, the new home of the 5,000-strong Portland Collection, on the historic Welbeck estate in Nottinghamshire. Designed by Hugh Broughton Architects, better known for the Halley VI relocatable research station in Antarctica, the £5 million gallery, which exhibits a rarely-shown Michelangelo drawing and a pearl earring worn by Charles I at his execution, is located within the historic walls of the so-called Tan Gallop, a former indoor ¼ mile racehorse training arena. The brief from Welbeck’s charitable Harley Foundation was for a public building with longevity that had to display a finite number of works of art over three exhibition periods, meet the conditions for lending with national museums, and hold its own among the historic buildings already on the estate. Hugh Broughton designed a brick and glass entrance pavilion with two galleries – a barrel-vaulted Long Gallery appropriate for full-length oil paintings and lit by a rooflight running its full length, complemented by a Treasure Gallery with louvered north lights and varying ceiling heights. These elements are supported by office, service, and loading and packing areas. Much consideration was given to the colour for the collection’s setting, with the plain white frequently used for modern galleries retained for the preliminary reception spaces and visitor facilities and the display walls given over to mid tones – mid grey to deep red, supplemented inside individual showcases with green and a rich blue. Its rural location and lack of a gas utility network meant electrically driven plant was required to heat and cool the 880m2 (GIA) building but the use of air-sourced heat pumps and 60kWp photovoltaic array has achieved an A-rated EPC, with the building predicted to emit only 5.04kg of CO2/m2 per annum. The fermacell gypsum fibreboard panels were installed over five months by teams of up to eight men from The ALD Group for main contractor Caddick Construction onto fermacell steel profiles which allow greater build heights and slimmer walls as well as speedy installation. The panels were then treated with fermacell’s FST (Fine Surface Treatment) to give a skim-type finish. At up to 100% more dense than standard plasterboard, which gives them their incredible racking strength, the 12.5mm square-edged fermacell panels provide a cost-effective single-layer solution to pattressing, being capable of carrying up to 50kg per cavity fixing and 30kg per screw for dead loads. This negates the gallery having to plan particularly carefully in advance where items are to be hung and consequently where specific areas need to be pattressed, making the exhibition design scheme ultimately flexible and future-proof, and the wall section thinner than the traditional plasterboard/pattress combination. ALD Group project manager Karl Angell said: “The project was certainly challenging and highly detailed, with various shadow gap details. These required a high level of thought and technical input. But the Fermacell products were faultless, particularly the FST.” Greg Penate, project architect, Hugh Broughton Architects, who have specified fermacell for other projects including Maidstone Museum, said: “We specified fermacell for all the gallery spaces and entrance pavilion for its direct tile bonding application in wet areas, higher supporting strength per square metre (supporting large art/casings) and direct external canopy soffit application.” Lisa Gee, director of The Harley Foundation, said: “The finished building and its displays draw on all our ideas and inspirations. The beautiful attention to detail in all of the finishes harks backs to the Harley Foundation’s commitment to craftsmanship and the mark of the hand.” The new gallery for The Portland Collection has already won four RIBA East Midland Awards 2016 and a RIBA National Award 2016. ENDS Photo: Hufton + Crow  Source link

©Bloomberg Rough diamonds mined by Alrosa Russia’s government has sold a 10.9 per cent stake in diamond miner Alrosa for Rbs52.2bn ($814m) as part of a privatisation programme aimed at plugging the country’s budget deficit. Investors paid Rbs65 a share for a stake in the world’s largest diamond producer, according to Dmitry Pristanskov, director of the Russian federal property agency that owns state assets. More On this topic IN Mining One person close to the share placement said the Russian Direct Investment Fund, a fund that promotes inward investment, acquired about half of the Alrosa stock sold by the government, in partnership with Asian, Middle Eastern and western investors. More than 100 investors bought stock in the placement, according to Andrei Shemetov, head of global markets at Sberbank CIB, lead manager on the deal. Russia, a leading oil producer, has been hit hard by the plunge in crude prices since mid-2014, and the government is selling stakes in state-owned companies to plug the hole in its finances. “Without privatisation deals it would be difficult to finance the budget deficit,” said deputy prime minister Igor Shuvalov. He added oil producer Bashneft and shipping company Sovcomflot would be partially privatised later this year. Rosneft, Russia’s largest oil producer, could follow. Other companies, whose leaders met president Vladimir Putin when he announced the privatisation programme in February, including Aeroflot and VTB Bank, are not expected to go to market until next year, if at all. With the exception of Bashneft — which was controversially renationalised in 2014 as its oligarch owner was placed under house arrest — the government does not intend to surrender controlling stakes in privatised companies, said Alexei Moiseev, deputy finance minister. Alrosa, which operates enormous mines in the far eastern region of Yakutia, is a bellwether for the privatisation programme’s success in the face of US and EU sanctions over the Ukraine crisis. Sberbank and VTB, whose investment arm co-managed the deal, are among the companies affected by the sanctions. The Alrosa deal did not fall foul of the sanctions, which limit certain Russian companies’ access to western capital markets. However, the US government has expressed concerns that the privatisation programme could be used to finance Russian companies affected by the sanctions. Russian and European investors each bought about a third of the Alrosa shares available in the placement, said Boris Kvasov, director of equity capital markets at VTB Capital. Middle Eastern and Asian investors bought 20 per cent of the shares, and US investors five per cent, he added. 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

Eight of the 27 projects to be awarded Contracts for Difference (CfD) in the first auction have passed their milestone requirements according to the Low Carbon Contracts Company (LCCC). In February the LCCC announced that four of the projects had met their requirements. It has now announced that a further four have met theirs too. They are: BH Energy Gap’s 26MW energy from waste plant in Walsall; Energy Works’ 25 MW energy from waste plant in Hull; CGN Europe Energy’s 45 MW Brenig onshore wind farm at Denbigh in Wales; and Cambridgeshire County Council’s 9.9MW Triangle Farm solar park. The four projects which passed their milestones previously are: Enviropark’s 11MW energy from waste plant at Hirwuan in Wales; Whirlwind Renewables’ 10MW Achlachan onshore wind farm in Scotland; TCI Renewables’ 6.15MW Common Barn onshore wind farm in Cambridgeshire; and Banks Renewables’ 16.4MW Moor House onshore wind farm in County Durham. So far the total capacity of projects from the first CfD auction which have met their requirements is just under 150MW.  Source link

A series of top performing firms have been shortlisted as nominees for this year’s ECA Annual Awards, following a rigorous judging process conducted by an independent panel of eight experts.   In total, some 34 entries have been shortlisted as nominees for the ECA Annual Awards 2016, spread across eight award categories, which include ‘Contractor of the Year’, ‘Best Client/Contractor Partnership’, and ‘Best Health and Safety Initiative’. Among those shortlisted include a number of firms who were strong runners at last year’s awards, including Quartzelec, Dodd Group, and Darke & Taylor. ECA director of business and the annual awards head judge, Paul Reeve commented: “Following a record number of entries this year, the independent judging panel had some tough decisions to make to identify the 34 shortlisted nominees. There were some really good entries this year, with strong stories about company success and best practice in our industry”. A record-breaking 142 award entries were received for this year’s ECA’s Annual Awards, which were carefully considered by industry figures including JTL’s director of operations Caroline Turner, Cedia’s executive director Wendy Griffiths, and Electrical Industries Charity managing director Tessa Ogle. The eight award winners will be announced at the ECA Annual Gala Dinner and Awards, supported by headline sponsor LEDVANCE, on Friday 8 July at Celtic Manor, South Wales. Attendees will enjoy an evening of entertainment hosted by Alan Dedicoat – the voice of The National Lottery and Strictly Come Dancing – alongside top comedian Stephen K. Amos. There are now limited spaces remaining – to book your place, please visit www.eca.co.uk.   Source link

Slumping steel prices have contributed to overall low levels of materials prices at the start of the year, with fabricated structural steel prices for March reaching its lowest index level on record at 81.9. But both bricks and concrete showed signs of increasing, with ready-mixed concrete still well ahead of prices reported last year. In February, overall materials prices hit their lowest level since March 2011, but the latest data suggests that prices are beginning to show signs of increasing again. Data for March points to BIS’ price index reaching 107.0 – the highest level since November last year. However, this is still well below the highs of 111.5 reported in March 2014, and is also well shy of last year’s average level of 108.9.     Source link

A record £1m fine for Thames Water for polluting a canal has been handed down as a signal that big companies must improve their environmental performance, the judge said. Above: Sludge around a moored boat [Environment Agency photo] Thames Water Utilities was prosecuted by the Environment Agency for repeatedly polluting a canal in Hertfordshire. Thames Water allowed repeated discharges of polluting matter from Tring sewage treatment works (STW) to enter the Wendover Arm of the Grand Union Canal in Hertfordshire between July 2012 and April 2013. On Monday 4th January, at St Albans Crown Court the company was ordered to pay a fine of £1m, costs of £18,113.08 and a victim surcharge of £120. This is the highest ever fine for a water company in a pollution prosecution. Explaining why the fine was so large, His Honour Judge Andrew Bright QC said: “The time has now come for the courts to make clear that very large organisations such as [Thames Water] really must bring about the reforms and improvements for which they say they are striving because if they do not the sentences passed upon them for environmental offences will be sufficiently severe to have a significant impact on their finances.” Thames Water has a permit to discharge treated effluent from Tring STW into the Wendover Arm of the Grand Union Canal. The conditions of the permit set by the Environment Agency aim to prevent any negative impact upon the canal itself and activities such as boating and fishing which take place on or in it. The court heard that poorly performing inlet screens caused equipment at the works to block, leading to sewage sludge and debris – including panty liners and ear buds – being discharged into the canal. The inlet screens should take out the majority of sewage debris referred to as ‘rag’ from the process, but the screens had repeatedly failed in this case.     This article was published on 6 Jan 2016 (last updated on 6 Jan 2016). Source link

Category: Construction Industry Today | Subscribe to Construction Industry Today Feed Published Fri, Apr 29th 2016 Dudley’s Aluminium will start work later this year on a redevelopment project for Ashford College, supporting the construction of a new general teaching block. Posted via Industry Today. Follow us on Twitter @IndustryToday WELSH aluminium fabricators Dudley’s Aluminium will start work later this year on a redevelopment project for Ashford College, supporting the construction of a new general teaching block. Dudley’s Aluminium has secured a contract to create and install essential architectural aluminium fixtures at the site, including curtain walling, doors and windows. The new £11m college will replace the existing facilities located a mile from the town centre, and provide a state-of-the-art learning environment for over 700 students. The campus will also be more accessible than its predecessor, being located closer to the town centre and within a shorter walking distance from the main railway station and bus stops. Colin Shorney, managing director at Dudley’s, said: “We are delighted to be working at Ashford College. We have worked extensively within the education sector over the last 24 months, and we are delighted to be lending our expertise once again. The project is an exciting one for the local area, and we look forward to its opening.” The new facilities will include a refectory, laboratories, salon, and an art and media studio, and there are also future plans to extend the general teaching block with a future ‘construction and technology block’. Work is currently underway at the site and the project is expected to be completed before the start of the 2017 academic year. The new teaching block will ensure Ashford College continues to support students looking to begin their careers in the manufacturing, construction and service sectors, with a mix of further education and higher education courses, apprenticeships and skill-based courses. Source link

The RIBA has today, 15 April 2015, responded to the launch of the Liberal Democrat Party’s 2015 General Election Manifesto. Discussing the issues of Housing, Planning, Schools Building, Flooding and Energy Efficiency – all key components of the RIBA’s #BuildaBetterBritain Campaign – the RIBA Executive Director of Communication & Outreach, Gill Webber, said: On Housing: ‘It is vital that the target of building 300,000 new homes doesn’t just become a focus on numbers. Good quality houses and effective infrastructure are vital to support new developments – whether we’re talking about garden cities or small sites in rural communities.’ On Planning: ‘The desire to empower Local Authorities to collaboratively drive developments is welcomed, but the next Government should review the National Planning Policy Framework to ensure that it balances policies that support development with a need to build strong, sustainable communities.’ On Schools Building: ‘We face a growing shortage of school places, and 80% of our school buildings are in poor condition, failing the students and teachers trying to learn and teach in them. Well-designed buildings improve well-being and cut maintenance costs – vital to the long-term future of the UK’s education system. We hope that any future Government will maintain a focus on capital school funding.’ On Flooding: ‘We welcome the commitment to develop a fit for purpose approach which takes into account the importance of high construction and planning standards for water resilient building design – a key element of the RIBA’s Build a Better Britain campaign. The next Government should introduce legislation that identifies flooding resilience as a strategic priority for successive parliaments.’ On Energy Efficiency: ‘We welcome the party’s ambitious energy efficiency plans for the built environment. The RIBA believes that this will be best achieved through a national retrofit strategy for all building types that aligns existing retrofit policies and other related Government initiatives.’ ENDS Notes to editors: 1. The Royal Institute of British Architects (RIBA) champions better buildings, communities and the environment through architecture and our members www.architecture.com 2. Follow us on Twitter for regular RIBA updates www.twitter.com/RIBA 3. For more information or interview requests, members of the press should contact: Gagandeep Bedi, Press Officer, RIBA: gagandeep.bedi@riba.org 020 7307 3814   Posted on Wednesday 15th April 2015 Source link