SEGRO plc (“SEGRO” or the “Group”) announces the sale of SEGRO Park Victoria Road in Park Royal, West London to the Imperial College London (‘Imperial’) for a base consideration of £115 million, a premium to book value. The 10-acre urban warehouse estate has been owned by SEGRO since the acquisition
A significant milestone in Bolton’s educational landscape was marked yesterday with a sod-cutting ceremony at The Orchards Federation schools. The event signalled the commencement of a £8.6 million expansion and improvement project aimed at enhancing facilities for students at The Orchards Nursery, Cherry Tree Primary School and Green Fold Special
Affordable and social housing developer EDAROTH (a wholly owned subsidiary of AtkinsRéalis) has begun work on a multiple-site scheme in Surrey to deliver sustainable affordable homes in partnership with a housing association. Social housing provider Raven Housing Trust is now working with EDAROTH (Everyone Deserves a Roof Over Their Head)
Responding to the Government’s housing announcements, Cllr Louise Gittins, Chair of the Local Government Association, said: “We are pleased the Government has acted on our call to increase Affordable Homes Programme funding. We have made the case for councils to be empowered to build more affordable, good quality homes quickly
Denmark-based ROCKWOOL Group is pleased to announce it is acquiring Wetherby Building Systems Ltd. The acquisition marks an important milestone in ROCKWOOL’s quest to expand its façade expertise in the UK. Wetherby Building Systems Ltd, headquartered in Golborne, Greater Manchester, is a leading UK supplier for external thermal insulation composite
Russ MacMillan was announced this week as the new Chief Executive of the Delivery Authority, which helps design and deliver the Restoration and Renewal Programme for the Palace of Westminster restoration and related works on behalf of both Houses of Parliament. He will lead the team of architects, engineers, project
If you want to avoid those costly breakdowns that can result in interruptions to your productivity then it is essential to have a regular, scheduled maintenance plan in place for your dock lifts. Even if your dock lifts appear to be working properly, it is worth checking them. Catching issues
The Crown Estate has unveiled details of its pipeline of developments in London’s West End. The three projects, which have a Gross Development Value of over £430 million, will deliver 251,000 sq ft of office, leisure and retail space in the heart of the Capital. Amongst the three developments is
The Canada Pension Plan Investment Board (CPP Investments) has teamed up with Kennedy Wilson, a global real estate investment company, to establish a joint venture (JV) in the UK single-family rental housing sector. This ambitious venture aims to build a portfolio valued at approximately £1 billion, with CPP Investments contributing
abrdn has raised its outlook on the real estate sector, forecasting a new growth phase driven by renewed REIT performance, a stable interest rate environment, and strong demand for quality rental assets. In its latest Q4 Real Estate House View, abrdn upgraded its investment stance from neutral to overweight, marking
SEGRO plc (“SEGRO” or the “Group”) announces the sale of SEGRO Park Victoria Road in Park Royal, West London to the Imperial College London (‘Imperial’) for a base consideration of £115 million, a premium to book value. The 10-acre urban warehouse estate has been owned by SEGRO since the acquisition of Brixton plc in 2009. SEGRO has actively managed the estate and grown rents significantly since it took ownership, but the age and layout of the estate has meant that the recent strategy has been to secure vacant possession to facilitate redevelopment. Consequently, the estate is 64 per cent occupied and generates rental income of £3.2 million. Imperial will operate the site to provide commercial science innovation facilities to early-stage companies with interests aligned with the university’s academic mission as part of the ‘WestTech Corridor’, a new globally competitive innovation ecosystem in West London. The site has been identified for future mixed-use development by Imperial’s strategic partners Old Oak and Park Royal Development Corporation (OPDC) and Ealing Council as part of the area’s significant regeneration plans. Bonnie Minshull, Head of London at SEGRO, said: “SEGRO Park Victoria Road has performed very well for SEGRO over the past decade. This sale to a special purchaser, for the provision of commercial science and innovation facilities, allows us to reinvest the proceeds into our wider London portfolio. “Imperial’s WestTech Corridor vision is a welcome initiative from a world-leading institution, adding another powerful driver of demand to London’s primary industrial and logistics cluster, in which SEGRO owns approximately 6 million square feet of space.” Hugh Brady, Imperial President, said: “Imperial College London is investing in its ambitious vision for a new globally competitive deep tech innovation ecosystem in West London. The Imperial WestTech Corridor will act as a powerful engine for investment, inclusive economic growth, and job creation at a local, regional, and national level supported by the Government’s emerging Industrial Strategy.” SEGRO was advised by Montagu Evans and Gowling WLG (UK) LLP. Savills (UK) Ltd acted on Imperial’s behalf as agents and CMS Cameron McKenna Nabarro Olswang LLP acted as Imperial’s legal advisory. Building, Design & Construction Magazine | The Choice of Industry Professionals
A significant milestone in Bolton’s educational landscape was marked yesterday with a sod-cutting ceremony at The Orchards Federation schools. The event signalled the commencement of a £8.6 million expansion and improvement project aimed at enhancing facilities for students at The Orchards Nursery, Cherry Tree Primary School and Green Fold Special School, which caters for pupils with Autism, Severe Learning Difficulties (SLD) and Profound and Multiple Learning Difficulties (PMLD. This ambitious project is a collaborative effort between Bolton Council, procurement partner Clear Futures, and family-owned construction contractor Seddon, demonstrating a shared commitment to improving educational facilities in the area. The project will see the creation of two new extensions providing eight additional classrooms across the Upper and Lower sites, along with internal remodelling to bring existing spaces up to modern specifications. These improvements will increase the schools’ combined capacity from 140 to 185 pupils, addressing the growing demand for SEND and PMLD places in Bolton. The enhancements also include improved outdoor spaces, a new multi-use games area for year-round access, and upgraded facilities such as hygiene suites to meet specific SEND requirements. Katie Hague, Executive Head of The Orchards Federation, said: “This is an exciting project which will further enhance our oversubscribed outstanding provision. Green Fold continues to be the special school of choice for many families and we are delighted that we will be able to welcome more pupils to flourish with us. The creation of a purpose built Early Years extension to house our Nursery in the same building as Cherry Tree school and our Green Fold PMLD classes will further enhance our inclusive offer and bring more opportunities for collaboration. Local families will be able to benefit from this beacon of excellence.” Recognising the unique challenges of working within an operational school environment, Seddon has undertaken extensive pre-construction planning to ensure minimal disruption to the schools’ daily activities. This includes careful consideration of the high volume of mini-buses used for student transport and the four different collection times every day for the on-site nursery. The construction, set to complete by April 2026, will be carried out in seven carefully planned phases, allowing the schools to continue functioning throughout the project duration. Matthew Sargeson, Operations Director at Seddon, commented: “This project exemplifies our commitment to creating spaces that truly make a difference in our communities. By expanding and improving The Orchards Federation schools, we’re helping to provide vital educational opportunities for children with special needs. Our team has worked diligently in the pre-construction phase to ensure that we can deliver this project safely and efficiently while maintaining a conducive learning environment for the students. This level of planning and care will continue throughout the construction process, prioritising the well-being and education of the students above all else.” Bolton Council’s Executive Cabinet Member for Children’s Services, Cllr Martin Donaghy, said: “This marks an important phase in the expansion of Green Fold, an outstanding school which provides its pupils with the very highest level of education and support. “Like many areas in the UK, we are seeing an increase in demand for places for children with additional needs. “We want to ensure as many children as possible can be educated in the borough, closer to their families and friends. “As a local authority we are committed to inclusive practice, and the expansion of Green Fold Special School is one element of our wider Belonging in Bolton Strategy which also aims to ensure that mainstream schools are well placed to meet the additional needs of children with SEND.” Rachel Salter, Head of Project Management Office from Clear Futures, said: “Clear Futures is proud to be supporting Bolton Council in delivering additional special educational needs school places for the Orchards Federation. “As well as bringing fantastic new facilities, the project will also provide apprenticeship opportunities and educational support sessions for young people in the Borough. Delivering this social value for the community is a key part of the strategic partnership between Clear Futures and Bolton Council and just one of the ways we support growth in the area.” Seddon has pledged to achieve £2,250,000 in local supply chain spending throughout the course of the project, further supporting the local economy. Seddon has also committed to at least 100 hours of volunteering and £7,000 in donations to local community initiatives, including support for Bolton CVS and Urban Outreach’s Bolton Lunches appeal. Additionally, the company is providing significant training and employment opportunities, including 56 weeks of upskilling for apprentices and industry placements for T-Level students from Bolton College. The sod-cutting ceremony was attended by representatives from Bolton Council, Clear Futures, The Orchards Federation, and the Seddon team, marking a collaborative effort to enhance educational facilities in Bolton and create a lasting positive impact on the community. Building, Design & Construction Magazine | The Choice of Industry Professionals
Affordable and social housing developer EDAROTH (a wholly owned subsidiary of AtkinsRéalis) has begun work on a multiple-site scheme in Surrey to deliver sustainable affordable homes in partnership with a housing association. Social housing provider Raven Housing Trust is now working with EDAROTH (Everyone Deserves a Roof Over Their Head) to develop the new houses, using offsite manufacturing methods to create low energy-use, net zero homes while providing additive capacity for the housing market. The homes will be the first to be delivered by EDAROTH for a housing association and will be built across four development sites in Epsom and Reigate & Banstead Borough Council areas, repurposing disused garage sites belonging to Raven. The initial development will provide 12 much-needed homes in well-located areas of the town, with the majority of building parts being manufactured at a UK factory, transported and assembled onsite, reducing the carbon impact of the process. By using this approach the homes will be delivered more quickly compared to traditional methods of construction, with reduced disruption to residents living near the development sites. The homes will also be built to EPC (Energy Performance Certificate) A+, the highest efficiency rating possible to keep energy usage and carbon emissions low. Mark Powell, Managing Director of EDAROTH, said: “This is a progressive development to build much-needed affordable housing for residents within communities, delivering high quality, net zero housing stock in the most efficient way. “EDAROTH was established with the guiding principle to create sustainable, low carbon and affordable housing, and we’re pleased that work is underway in what we hope will be a programme of development working with Raven Housing Trust, a truly collaborative partner which shares our vision for developing communities.” Stephen Clements, Assistant Development Director for Raven Housing Trust, said: “Our priority is to provide high quality, sustainable, affordable homes for our residents, and so it’s a great moment to see work beginning on these sites. “This scheme will transform these sites and provide much greater value to communities as new homes which are in such high demand both here and across the county.” The scheme in Surrey is the first in a number of new contracts due to go live for EDAROTH, which is bringing a fresh approach to the housing market by utilising brownfield and former industrial land to release genuine social and economic value back into communities. This in turn supports housing associations in their goals to provide affordable, energy-efficient homes in areas of acute shortage, as well as meeting net zero targets. Building, Design & Construction Magazine | The Choice of Industry Professionals
Responding to the Government’s housing announcements, Cllr Louise Gittins, Chair of the Local Government Association, said: “We are pleased the Government has acted on our call to increase Affordable Homes Programme funding. We have made the case for councils to be empowered to build more affordable, good quality homes quickly and at scale and this will boost councils’ ability to build desperately-needed affordable housing for local communities. “It has become increasingly impossible for councils to replace homes as quickly as they’re being sold through the Right to Buy (RTB) scheme. The LGA has long-called for reform to RTB and these positive measures will support the replacement of sold homes and to stem the continued loss of existing stock. “A 5-year rent settlement is a step in the right direction in providing certainty for councils on rental income, but to really strengthen and provide stability to Housing Revenue Accounts, a minimum 10-year rent settlement is needed, alongside restoration of lost revenue due to the rent cap and a review of the self-financing settlement of 2012. This would better support long-term business planning to ensure councils can deliver high quality homes and associated support for their tenants. “Councils stand ready to work with the Government to increase affordable housing and help people on council housing waiting lists and record numbers stuck in temporary accommodation.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Denmark-based ROCKWOOL Group is pleased to announce it is acquiring Wetherby Building Systems Ltd. The acquisition marks an important milestone in ROCKWOOL’s quest to expand its façade expertise in the UK. Wetherby Building Systems Ltd, headquartered in Golborne, Greater Manchester, is a leading UK supplier for external thermal insulation composite systems (ETICS). Wetherby will become part of the ROCKWOOL Wall Systems organisation under the new designation Wetherby Wall Systems, joining counterpart organisations that include ETICS specialists HECK Wall Systems in Germany and FAST Wall Systems in Poland. Importance of the acquisition The energy efficiency of buildings plays an important role in meeting the UK’s commitment to reaching net zero by 2050. ROCKWOOL Group CEO Jes Munk Hansen states, “This acquisition underlines ROCKWOOL’s commitment to further expanding our presence in the UK market and to continuing to transform the construction sector towards sustainable and non-combustible façade solutions. The share of stone wool insulation in the Wetherby business has been growing steadily, and we will be completing this transition to a fully stone wool-based portfolio, as we have done in other markets in the past.” For Wetherby Building Systems Ltd, this acquisition is a significant step in its long-term development. The company will continue its existing partnerships with developers, customers, and suppliers. Wetherby Managing Director Bob Deane comments: “There is a long-standing relationship between Wetherby and ROCKWOOL, and the match is strong on all significant drivers, from business model and technology to company culture and values. I am convinced that inside the ROCKWOOL organisation, Wetherby will meet its full potential for wall system solutions.” The transaction does not affect ROCKWOOL’s financial expectations for 2024. Building, Design & Construction Magazine | The Choice of Industry Professionals
Russ MacMillan was announced this week as the new Chief Executive of the Delivery Authority, which helps design and deliver the Restoration and Renewal Programme for the Palace of Westminster restoration and related works on behalf of both Houses of Parliament. He will lead the team of architects, engineers, project managers and specialist contractors who will help shape the future direction of the restoration work for the Houses of Parliament. Russ has a successful track record leading major programmes in the defence, transport and early-stage technology sectors. Russ is currently Director for Rail Infrastructure North and West at the Department for Transport where he is responsible for a £20bn portfolio of capital investment across Wales and the North and West of England. Russ has many years of experience across a range of product related, commercial, and business transformation programmes in both the public and private sectors. The appointment was made by the Delivery Authority Chair Mike Brown CBE MVO after a competitive recruitment process. Mike Brown CBE MVO, Chair of the Delivery Authority, said: “Following a competitive recruitment process I am delighted that Russ will be joining the Delivery Authority as our new Chief Executive. “As we move into the next year, the Delivery Authority has important work to deliver. We will continue to work closely with Parliament to further develop two of the three options outlined in the Strategic Case for the Restoration and Renewal (R&R) Programme. “Our focus is also on progressing plans for early works to ensure that the benefits from R&R can be delivered as quickly as possible, and continuing building surveys and investigations to increase further our understanding of the Palace. “Russ brings a wealth of experience in managing major programmes and will ensure the Delivery Authority continues to build on the progress made so far.” The Clerk of the House of Commons Tom Goldsmith, and Clerk of the Parliaments Simon Burton, who are members of the R&R Client Board and Programme Board, said: “We are delighted that Russ is bringing his many years of experience to this important role as we move towards costed proposals for R&R coming to both Houses next year for a decision.” Russ MacMillan, said of his appointment: “I am delighted to be joining the Restoration and Renewal Delivery Authority at such a crucial time as it further develops two of the three proposals for restoration of the Palace in a way which will benefit the whole of the UK. “I am excited to be working with talented colleagues from across the Delivery Authority and Parliament to build on their significant progress and to support decision making on how best to renew this unique and internationally recognised building.” Tanya Coff, Chief Financial Officer, is acting as interim CEO until Russ takes up the post in mid-February 2025. She has been leading the Delivery Authority since the departure of previous CEO David Goldstone CBE in August 2024. The Delivery Authority is developing two options to deliver the Palace of Westminster restoration – a full decant option and a continued presence option – and Parliament’s Strategic Estates team are developing a third option – Enhanced Maintenance and Improvement – to deliver the works through the R&R Programme. Costed proposals for the three options are expected to be ready for presentation to both Houses of Parliament before the end of 2025. Building, Design & Construction Magazine | The Choice of Industry Professionals
If you want to avoid those costly breakdowns that can result in interruptions to your productivity then it is essential to have a regular, scheduled maintenance plan in place for your dock lifts. Even if your dock lifts appear to be working properly, it is worth checking them. Catching issues before they become a real problem means that you are more likely to avoid those costly bigger repairs that may mean your dock lift will be out of action for a longer period of time. Time is money in any business, and when an essential piece of machinery is out of action it can have serious repercussions for your ability to fulfil orders and keep your customers happy. Regular maintenance is the best way that you can assure, and potentially extend, the lifetime of your dock lifts. What are dock lifts? Dock lifts are usually used to unload and load trucks from the bed of the truck to ground level. They can service a range of different types of trucks and trailers which makes them incredibly versatile. Some dock lifts are installed in a recessed pit. However, some are surface-installed dock lifts that are installed on top of a poured concrete pad. Both perform a similar function but in slightly different ways The benefits of having a regular maintenance plan There are a number of benefits that will be gained by having a regular maintenance plan in place for your dock lift. These include: What does a regular maintenance inspection entail? When you have a regular maintenance program in place for your dock lifts, this means that a deep visual inspection will be carried out as part of the program. This will involve checking that everything is working as it should be. Any parts in the machinery that are not functioning properly or are showing signs of wear and tear that might result in a break in the near future will be repaired or replaced. This means that things like cylinders, bushings, hydraulic hoses and electrical connections amongst others will be checked thoroughly. It is important that your regular maintenance program is carried out by a professional who is fully qualified and well acquainted with the model of dock lift that you have. They should follow the appropriate manual for the dock lift and any maintenance guidelines it contains. Regular maintenance also includes lubricating the machinery to keep it working smoothly and help to extend the lifetime of the dock lift. The professional undertaking the regular maintenance will also be able to make a note of any parts that they need to keep an eye on. These will be things that are not yet ready to be replaced but may benefit from being replaced during the next scheduled maintenance. This will allow them to make a list of parts they will need and ensure that they have them to hand which will reduce your downtime. Conclusion Regular maintenance for your dock lifts is essential. As an employer you have a duty of care under health and safety to ensure that your machinery is regularly serviced to avoid the possibility of accidents that could result in injury to your employees. This should always be carried out by a qualified professional.
The Crown Estate has unveiled details of its pipeline of developments in London’s West End. The three projects, which have a Gross Development Value of over £430 million, will deliver 251,000 sq ft of office, leisure and retail space in the heart of the Capital. Amongst the three developments is New Zealand House – the landmark Grade II listed building at the southern gateway to Haymarket, the Arts Quarter and St James’s Market. Opened in 1963, the modernist landmark served as a symbol of the New Zealand Government’s post-Second World War commitment to the United Kingdom, and as a home-away-from-home for New Zealanders overseas. It featured ample office space, a state to which it will return when the retrofit works are complete, with the New Zealand High Commission returning to take substantial space in the building, including in the podium and the top floors. Its iconic mid-century architecture, designed by renowned architect Robert Matthew, Johnson Marshall & Partners, dominates the skyline in St James’s as the only building of height in the area, providing sweeping views of Westminster to the south and the wider West End to the north. As the first major office tower in London and the first to be fully glazed on all sides, its design paved the way for a broader acceptance of modernist, tall buildings. When it was constructed, it was a shining example of innovation and modernity, boasting the first fully air-conditioned office in the Capital. It is this focus on innovation that is once again at the heart of construction works at New Zealand House. During the retrofit project, 90% of the structure is being retained and 1,600 sq m of heritage finishes are being carefully preserved, respecting the listed status of the building. The project has already seen 7,000 items collected for reuse in other projects, steel obtained from reused sources, over 1,300 sq m of marble being reused throughout and renewable energy will be purchased through a PPA from a solar farm in Norfolk to power the construction site. One of the building’s most unique interior features is the giant Te Pouihi; an intricate and spiritually important Māori carving, which sits in the entrance of New Zealand House. Te Pouihi was created specifically for New Zealand House by Inia Te Wīata, a New Zealand Māori opera singer, master carver, film actor and artist, alongside his two sons. They carved the 50ft, two-tonne pouihi over seven years in the building’s basement carpark. The original pouihi will maintain its position in the refurbished New Zealand House, where it embodies the enduring link between the United Kingdom and New Zealand. The building’s iconic glazing, which provides a striking line of site through the building from St James’s to Westminster, will be replaced with an innovative alternative to improve thermal performance and passive shading, with The Crown Estate installing digital systems to accurately monitor environmental performance. In total, the construction phase is anticipated to use less embodied carbon than The Crown Estate’s ambitious target of 400kgCO2/m2 across its development portfolio. The works, which are already underway, also include the restoration and refurbishment of the Grade I listed Royal Opera Arcade. Designed by John Nash and George Repton and completed between 1816 and 1818, it is considered to be London’s oldest existing shopping arcade having survived a fire and the Blitz. Its vaulted roof, circular skylights and protruding quadrant-cornered shopfronts lining the passageway were influenced by Parisian arcades, whilst its overall layout and covered shopping concept paved the way for future arcades in the Capital. Once completed, New Zealand House will deliver 138,000 sq ft of quality office and hospitality space, transforming the site and wider district once more into a thriving, progressive destination. Clare Harrison, Development Director at The Crown Estate, said: “New Zealand House was once a beacon of modernity and innovation in London – we now have the chance to reclaim its former glory and celebrate its striking mid-century architecture. “With the New Zealand High Commission returning to its historic home in St James’s, today’s news represents both a celebration of our shared heritage, and a positive look towards our future. Along with 10 Spring Gardens and 33-35 Piccadilly, the development of New Zealand House will provide spaces and places that work for both the needs of today and future generations.” New Zealand High Commissioner to the United Kingdom, Phil Goff, said: “The New Zealand Government is delighted to be partnering with The Crown Estate on this project to redevelop and refine New Zealand House in its central and landmark site. When complete, the building will meet the modern needs of New Zealand government agencies in London. With the restoration of the unique Pouihi, it will continue to reflect New Zealand’s culturally rich Māori heritage. “Redeveloping the building retains the history of the site, and through its prominence and centrality New Zealand House continues to represent the close, deep and enduring relationship between New Zealand and the United Kingdom.” The Crown Estate has also revealed details around two other developments in its pipeline. 10 Spring Gardens – located between The Mall and Trafalgar Square – will deliver c.80,000 sq ft of sustainable workspace, distributed over ground floor, basement and eight upper storeys. This project also places a high priority on sustainable design and construction retaining over 90% of the building’s structure and façade, minimising the use of new raw materials, whilst enhancing the quality of the office floor plates, amenity spaces and entrances. Upon completion it is targeting a NABERS 5* rating, EPC A and BREEAM Excellent, as well as a WELL Gold Certification. 33-35 Piccadilly is the only new building construction project in The Crown Estate’s development pipeline. The redevelopment will provide 3,000 sq ft of prime retail and food & beverage space on the ground floor, with 30,000 sq ft of office space on the floors above. This represents an 85% increase in office and retail floor space. The project will also provide an improved connection between St James’s Church and Swallow Street, alongside improved
The Canada Pension Plan Investment Board (CPP Investments) has teamed up with Kennedy Wilson, a global real estate investment company, to establish a joint venture (JV) in the UK single-family rental housing sector. This ambitious venture aims to build a portfolio valued at approximately £1 billion, with CPP Investments contributing £500 million and Kennedy Wilson investing £56 million. CPP Investments will hold a 90% stake in the JV, while Kennedy Wilson will hold 10%. The JV is focused on delivering energy-efficient, new-build homes in rapidly growing communities that feature excellent connectivity, quality local amenities, and strong employment and educational opportunities. To fuel the portfolio’s growth, the partnership will collaborate with housebuilders across the UK. Initial properties include units from two developments already secured by Kennedy Wilson: Barratt Redrow’s site in Norwich, where the first phase of homes is already being leased, and Miller Homes’ project in Stevenage, with homes set for completion by Q2 2025. With a pipeline of projects valued at over £360 million and a potential of 4,000 units once fully deployed, Kennedy Wilson is well-positioned to drive the JV’s expansion. Tom Jackson, Head of Real Estate Europe at CPP Investments, commented:“Private capital can be instrumental in addressing the lack of high-quality rental housing in the UK. This investment aligns with our broader real estate strategy of pursuing scalable opportunities in high-quality assets with stable cash flows. Through this JV with Kennedy Wilson, we are creating a pathway to strong returns for CPP’s 22 million contributors and beneficiaries.” Kennedy Wilson will manage the JV and receive standard management fees, drawing on its expertise in professionally operated rental housing, with a portfolio of over 60,000 units across the US, UK, and Ireland. The company’s established residential platform features a vertically integrated team for investment, asset management, development, and operations. Mike Pegler, President of Kennedy Wilson Europe, added:“Our partnership with CPP Investments represents a significant step in delivering essential rental homes for UK families. The structural challenges in the UK rental housing sector present a compelling investment opportunity, allowing us to grow our portfolio at scale and generate steady, risk-adjusted returns in this critical sector.” This JV not only targets a substantial growth in professionally managed rental housing but also brings forward the promise of a scalable, high-quality rental portfolio to meet growing demand across the UK. Building, Design & Construction Magazine | The Choice of Industry Professionals
abrdn has raised its outlook on the real estate sector, forecasting a new growth phase driven by renewed REIT performance, a stable interest rate environment, and strong demand for quality rental assets. In its latest Q4 Real Estate House View, abrdn upgraded its investment stance from neutral to overweight, marking the first positive shift since June 2022. With annual total returns for UK real estate projected to reach 8.6% over the next three years, the firm expects a marked recovery. Market Rebound and Key Drivers Anne Breen, abrdn’s Global Head of Real Estate, explained that recent indicators support optimism: “Our ongoing monitoring of the real estate market shows a pivot to growth, spurred by increased capital mobilisation in REITs, favourable interest rates, and resilient rental demand for quality assets.” abrdn has identified logistics, residential, and select alternatives as sectors with promising return potential, noting that even office markets are showing renewed energy. The Autumn Budget, which could introduce tighter fiscal policies and potential reforms to capital gains and inheritance tax, places greater importance on private capital for addressing the UK’s housing and infrastructure needs. Despite this, abrdn expects private investment to drive UK real estate growth. REITs and Direct Real Estate on the Rise REITs, a useful predictor of direct real estate performance, have signalled renewed confidence by focusing on growth rather than debt reduction. In Europe, REITs are issuing equity and debt, highlighting the transition from a refinancing phase to one of expansion. In direct real estate, competitive bidding is heating up, with residential rents rising by 6.7% and logistics by 6.6% year-on-year, signalling steady demand across sectors. Furthermore, the forecasted yield premium on real estate is proving increasingly attractive as the Bank of England’s expected gradual interest rate cuts—anticipated at around 100 basis points in 2025—support investor entry into the market. The Office Sector Sees Renewed Demand The office market, particularly in London’s West End, is experiencing increased demand, especially for high-quality spaces. Cities like Bristol and Manchester are also seeing strong growth in prime office rents, reflecting a trend among tenants to prioritise quality as they consolidate premises. While global economic and geopolitical challenges persist, the office sector shows capacity for resilience, especially as valuations stabilise in the UK and European markets. Sector Outlooks As sectors such as industrial and logistics continue to offer strong returns, abrdn emphasises the importance of quality and sustainability in property selection. Compliance with Minimum Energy Efficiency Standards (MEES) and Net Zero targets will be critical, with assets that have already adapted to these standards expected to lead in future investor and occupier interest. By addressing decarbonisation and retrofit costs upfront, abrdn sees an opportunity for investors to capture both financial and environmental value in a rebounding market. Building, Design & Construction Magazine | The Choice of Industry Professionals
