Proposals for a ground-breaking ‘net zero’ housing development, as part of the £1.3bn Granton Waterfront regeneration project in north west Edinburgh, have been granted approval by city planners (12 January 2022). The Granton D1 project is the first Edinburgh Home Demonstrator (EHD) pilot which will see the construction of 75
ASSA ABLOY Opening Solutions UK & Ireland is demonstrating its commitment to environmental sustainability by spotlighting its ‘Green Team’ – a group of colleague volunteers collectively taking action to help the business operate in a more efficient, innovative, and healthy way. Randen Lannas, Specification Consultant at ASSA ABLOY Opening Solutions
Entries are now open for The Hire Association Europe Event Hire Association (HAE EHA) annual Hire Awards of Excellence, which are due to take place on Saturday 7th May at Grosvenor House, London and include a brand new category open to all. The awards celebrate the outstanding achievements of hire
Lighting technology upgrade across eight van and truck retail showrooms, using a variety of the latest LED solutions. Operational costs reduced by more than £95,000 over 12 months Carbon reduction of 980 tonnes over the term of the contract Significant positive impact on employee wellbeing Eight commercial retail sites operated
The appointment is Glencar’s first to be awarded by Firethorn Trust and reflects the growing customer confidence in the business. Glencar, a construction company specialising in the industrial, logistics, distribution, manufacturing, life science and pharmaceutical sectors has today announced that it has been appointed by real estate investor and developer,
Market analysis by real estate debt advisory specialists, Sirius Property Finance, has found that despite a reduction in the number of housebuilders filling for liquidation during the pandemic, the market share of new homes built by SMEs has fallen. The initial analysis by Sirius Property Finance looked at the level
THE INPUT GROUP has pledged its support to PASIC, a support service for the families of children with cancer in the East Midlands, to begin the first chapter of its corporate charity partnership. The Input Group, whose headquarters are in Derby, kickstarted its efforts on behalf of the charity in
Allies and Morrison, Carlo Ratti Associati, Grimshaw, Hawkins Brown and Prior + Partners through to Stage Two Oxford University Development, a £4bn joint venture between the University of Oxford and Legal & General Capital, today reveals the shortlist of five teams proceeding to the second stage of its international design
Alternatives market rebounds strongly and ESG continues to drive pricing Leading independent property advisory firm, Lismore Real Estate Advisors today released its comprehensive review of the Scottish investment market for the final quarter of 2021 and predictions for 2022. Despite the ups and downs faced during 2021, the Scottish investment
On Monday 10th of January, the Secretary of State for Levelling Up, Housing and Communities, the RT Hon Michael Gove MP, outlined his proposals aimed at ensuring that industry contributes to the cost of remediating unsafe cladding on residential buildings over 11 metres in height. The announcement makes clear that
Proposals for a ground-breaking ‘net zero’ housing development, as part of the £1.3bn Granton Waterfront regeneration project in north west Edinburgh, have been granted approval by city planners (12 January 2022). The Granton D1 project is the first Edinburgh Home Demonstrator (EHD) pilot which will see the construction of 75 net zero carbon homes and three retail units in Granton. The project is led by the City of Edinburgh Council with support from construction and academic partners and is part of the Council’s ambitions to deliver 20,000 affordable homes by 2027. The project is being undertaken in partnership with CCG (Scotland) Ltd to test this new business model for building affordable, net zero homes. A large proportion of the construction will be carried out off site in a factory setting reducing the overall time it takes to build the homes. The homes will also include zero emissions heating. This will help to reduce their greenhouse gas emissions and support the city’s 2030 net zero target. The pilot is also supported by a team from Napier University that will analyse the energy performance to validate and inform the net zero carbon strategy for future EHD projects. The EHD project aims to deliver 1,000 affordable net zero carbon homes across the six council areas in the City Region Deal. With an ambitious target to become a ‘net zero’ city by 2030, both of these developments, alongside the 444-home Western Villages development, will act as a blueprint for future sustainable development and help Scotland to transition towards a greener economy. Councillor Kate Campbell, Convener for the Housing, Homelessness and Fair Work Committee, said: Making homes more sustainable will help us to meet our net zero targets, but the most important thing is that our tenants will benefit. With the cost of living rising sharply, making the running costs of homes more affordable will help tenants on low incomes, preventing fuel poverty. This pilot, and the learning we hope to take from it, is a really important step for us on our journey to making all of our housing stock more energy efficient, and better for tenants to live in. We have incredibly ambitious plans which form the bedrock of our housing strategy over the next ten years. There is a critical need for more affordable homes in Edinburgh and we are responding to that through our commitment to deliver 20,000 social and affordable homes by 2027. Councillor Mandy Watt, Vice Convener for the Housing, Homelessness and Fair Work Committee, said: The Granton D1 development will provide affordable places to live for everyone with over 60% being for social rent. The development is part of the wider Granton Waterfront regeneration, which includes the creation of one of Europe’ s largest new coastal city parks. We hope to provide residents and visitors with the chance to reconnect with the city’s waterfront and take advantage of the new leisure and outdoor experiences that will be on offer – altogether fostering an environment that will benefit everyone’s health, community spirit and wellbeing. Councillor Neil Gardiner, Convener for the Planning Committee, said: This sustainable development is a great addition to our major regeneration of Granton Waterfront to create a coastal town with lots of green and open space. It was good to see the committee unanimously backing the project which will provide the area with much needed affordable net zero homes as well retail units providing businesses opportunities and employment locally. Calum Murray, CCG (Scotland) Director and Edinburgh Climate Commissioner, said: The approval of Granton D1 is another important milestone for the City of Edinburgh Council and CCG. By working collaboratively alongside our partners, we are pioneering the delivery of affordable, net zero homes in Scotland and the Council is to be congratulated for taking these necessary first steps in delivery of our country’s net zero carbon ambitions. CCG is delighted to be leading the design and build of Granton D1 where we will provide a cutting-edge demonstration in the use of fabric first design and construction technology. We look forward to advancing works on-site in the very near future. The approval made at the Development Management Sub-Committee on Wednesday 12 January and construction of Granton D1 is expected to begin in Spring 2022. The Granton Waterfront regeneration project also includes the refurbishment of the Granton Station building and the Granton Gasholder restoration project, which is currently lighting up the skyline in a joint project with Edinburgh College. The wider proposals will bring over 3000 additional homes and create one of Europe’ s largest coastal city parks linking Granton Harbour to Cramond and Lauriston Castle, reconnecting the city with its waterfront and providing opportunities for residents and visitors to enjoy spectacular views across the Forth while experiencing enhanced leisure and outdoor activities.
ASSA ABLOY Opening Solutions UK & Ireland is demonstrating its commitment to environmental sustainability by spotlighting its ‘Green Team’ – a group of colleague volunteers collectively taking action to help the business operate in a more efficient, innovative, and healthy way. Randen Lannas, Specification Consultant at ASSA ABLOY Opening Solutions UK & Ireland, is a ‘Green Team’ member and ‘Green Champion’ for the business, helping to develop its Sustainability and Environmental strategy. With over 16 years’ experience in door and hardware specification, Randen’s day-to-day job involves specification consultation of high security doors, general door hardware and electronic access control to architectural and construction professionals. His role as ‘Green Champion’ is heavily intertwined with specification consultancy, helping the company to achieve its sustainability and environmental goals, as well as advising clients on the most sustainable option. He explains: “Being a ‘Green Champion’ means I dedicate myself to aiding ASSA ABLOY’s commitment to sustainability, passing it onto our professionals through our specification services and ensuring green products are offered. “By specifying many of ASSA ABLOY’s Environmental Product Declaration (EPD) certified products, we’re able to contribute confidently to Green Building. ASSA ABLOY are members of all Global Green Building Councils such as BREEAM®, LEED®, and GreenStar to name a few.” An Environmental Product Declaration (EPD) presents quantified environmental data for products based on information from a Life Cycle Assessment (LCA) and promotes transparency. Randen adds: “Looking to the future, ASSA ABLOY’s commitment to green specification will continue to greatly contribute to the communities we live in, by enhancing energy efficiency, water efficiency, waste reduction, indoor environment quality, materials and resources and many more.” For more information on ASSA ABLOY Door Group, please visit https://bit.ly/3hVybbC.
Entries are now open for The Hire Association Europe Event Hire Association (HAE EHA) annual Hire Awards of Excellence, which are due to take place on Saturday 7th May at Grosvenor House, London and include a brand new category open to all. The awards celebrate the outstanding achievements of hire and supply companies across the UK’s plant, tool, equipment and event hire industries, and give the opportunity for recognition to individuals who have consistently stood out from the crowd by achieving some of the highest standards in the industry. After the last two years’ awards were forced to be held as virtually, excitement is building for this year’s awards, which will be hosted by comedian Jo Caufield. There are 16 categories altogether, including Hire Industry Product of the Year, Best use of New Media and the coveted Hire Industry Supplier of the Year Award. A complete list of all this year’s categories and the entry requirements can be found here. New for 2022, HAE EHA has introduced the Diversity and Inclusion Initiative Awards. Any company wishing to enter this latest category will need to demonstrate how its organisation sets the standards for diversity and inclusion within the industry, going above and beyond to facilitate improvements and inspire change. Entries that cover one, some or all aspects of diversity provision within the hire sector are welcomed. A range of sponsorship options is also available this year including individual category sponsorships as well as larger packages, providing the opportunity for sponsors to tactically position their brands at this prestigious event. The closing date for entries is 28th January, with judging taking place in February and the finalists announced in March. Applications can be made online at: www.awards.hae.org.uk For any queries regarding the awards or sponsorship please contact: awards@hae.org.uk
Lighting technology upgrade across eight van and truck retail showrooms, using a variety of the latest LED solutions. Operational costs reduced by more than £95,000 over 12 months Carbon reduction of 980 tonnes over the term of the contract Significant positive impact on employee wellbeing Eight commercial retail sites operated by UK Mercedes-Benz dealership Rygor have been equipped with the latest LED lighting systems courtesy of a comprehensive upgrade initiative implemented by Journey Energy Solutions (Journey). Established to help organisations get closer to Net Zero emissions without the burden of up-front capital outlay, Journey designs, installs and maintains carefully tailored, energy-efficient LED lighting systems. The starting point for the recent project was the realisation by the auto dealership that the existing lighting needed to be upgraded in order to reduce operational costs and carbon emissions. The lighting at three sites in particular – Heathrow, Swindon and Westbury – was also increasingly unfit for purpose and subject to frequent costly replacements. But during the course of conversations with the specialist energy solutions company that provided the upgrade, the scope of the scheme was expanded to include eight van and truck retail showrooms: the three aforementioned sites as well as Chilcompton, Kidderminster, Newbury, Nuneaton and Oxford. In terms of choosing a partner to implement the lighting upgrade and provide support post-installation, there were multiple key factors that worked in the favour of Journey. These included the ability to start work immediately, maintain a seamless transition between each site, and work in such a way that any operational disruption was kept to a minimum. For example, to avoid negative impact during installation in the active workshop service areas, advanced notice was given to each service manager so they could schedule work on particular days – ensuring that any possible conflicts were avoided. The outcomes The upgrade programme took three months with each of Rygor’s sites now featuring a complementary blend of the latest LED lighting products. As well as carrying out all the design and installation work, Journey has also been contracted for six years to provide ongoing service and maintenance support – giving further reassurance to the Rygor team and allowing the dealer’s internal technical resources to be directed elsewhere. Whilst the figure could rise further due to a greatly reduced need for replacements and associated maintenance, it is already predicted that Rygor will benefit from an impressive reduction in its carbon emissions of 980 tonnes and an energy cost saving of £648,514 over the term of the contract. This would be a huge step forward for any business at any time, but in the midst of an unpredictable economic cycle and with climate change concerns escalating, it has a truly transformative potential. In addition to the energy savings, the improved quality of the lighting – especially in the most badly affected areas at the sites deemed most urgently in need of an upgrade – has been widely commented upon by employees and visitors. In particular, feedback from personnel who have been employed in the company’s workshops for many years has been very strong, with many pinpointing the much more sympathetic and consistent nature of the lighting. The testimonials In reflecting on the project, Rygor praises the “excellent” nature of the Journey installation teams and the entire experience of collaborating with the company before, during and after the upgrade. Stuart Gemmell, Rygor Group Facilities and Health & Safety Manager, commented: “Our ageing lighting systems didn’t provide the quality of lighting that we required, in particular our workshops were quite gloomy,” he says. “The upgrades have transformed our working environments, making it easier for staff to operate efficiently. The staff are certainly benefiting and the feedback they have provided us with has been extremely positive.” The operational and carbon savings being achieved by the project have impressed the Rygor team on their journey to Net Zero. He added: “It almost goes without saying that we are also delighted with the massive contribution that the new lighting will make to our carbon emissions reduction strategy. In fact, it’s going to be a major milestone on our way to becoming a Net Zero business.” The on-going support offered by Journey will also be beneficial to the business. He finished: “The other really positive aspect is that the partnership is very much ongoing because Journey will be providing long-term support and maintenance. And of course, that means valuable extra peace of mind as we move forward.” To help motor dealers on the path to energy savings and carbon reduction, Journey has launched a free, downloadable guide – ‘The Journey to Net Zero – How to cut costs, save energy and deliver decarbonisation: a guide for motor dealers’. To download the free guide, click here.
The appointment is Glencar’s first to be awarded by Firethorn Trust and reflects the growing customer confidence in the business. Glencar, a construction company specialising in the industrial, logistics, distribution, manufacturing, life science and pharmaceutical sectors has today announced that it has been appointed by real estate investor and developer, Firethorn Trust onto a 21-acre site, Peterborough South at Kingston Park in Hampton. The development will create circa 500,000 sq ft of logistics space across three units, and is expected to be complete by late 2022. The scheme will be delivered to net-zero carbon in construction and target an ‘Excellent’ BREEAM rating, with a sustainable infrastructure that features more than 40,000 sq. ft. of photovoltaic arrays as standard, 48 electric vehicle charging points, and 15% roof lighting. Purchased from O&H Properties earlier this year, the Kingston Park site sits adjacent to existing occupiers including Amazon, IKEA and DART. It offers excellent connectivity, being located within two miles of the A1 (M) at Junction 17. Commenting on the appointment Glencar Managing Director London and South Roy Jones said: “Our team is now mobilised and it’s great to be getting underway at the Peterborough South scheme, our first for Firethorn Trust. We are delighted to be supporting Firethorn to achieve its vision of a quality, modern, sustainable logistics park with facilities and amenities that will benefit both occupiers and employees.” Also commenting, Paul Martin, Development Director at Firethorn Trust, said: “We were impressed by Glencar’s considerable track record in delivering high-quality facilities of this nature, and look forward to working closely with the team to bring our vision for Peterborough South to life. “This highly-specified, net-zero carbon development has been designed to continue driving investment and employment opportunities within what has become one of the UK’s fastest growing regions. We are now in prime position to bring the scheme forward at pace, as we look to quickly meet increasing occupier demand for quality, sustainable and flexible logistics spaces.” Peterborough South joins a number of strategic development sites across the UK for Firethorn, including Northampton Cross in Milton Ham and Ascent Logistics Park in Leighton Buzzard as well as new acquisitions at Ellesmere Port and Barnsley, taking the developer’s current development pipeline to over 3m sq. ft. All enquiries for Peterborough South should be directed to the scheme’s letting agents, Savills and Lambert Smith Hampton.
Market analysis by real estate debt advisory specialists, Sirius Property Finance, has found that despite a reduction in the number of housebuilders filling for liquidation during the pandemic, the market share of new homes built by SMEs has fallen. The initial analysis by Sirius Property Finance looked at the level of liquidations across the construction industry, more specifically the sub-sector of residential and non-residential building construction. The data shows that across Britain, there has been a steady increase in this figure since 2016 where both compulsory and voluntary liquidations are concerned. Between 2016 and 2017, the total number of liquidations climbed by 8%. Between 2017 and 2018 there was a further increase of 19%. This was followed by a 22% annual increase from 2018 to 2019. However, in 2020 when the initial Covid outbreak hit the nation, the number of housebuilders filling for liquidation saw a decline of -38%. Managing Director of Sirius Property Finance, Nicholas Christofi, commented: “There are a number of influences that could have driven this decline in liquidation levels. Despite the problems posed by the initial outbreak of COVID-19 and the restrictions imposed across the construction sector, we’ve since enjoyed a property market boom that will have helped boost profit margins considerably and this will have helped many better negotiate an otherwise tough period. At the same time, we’ve seen a range of government initiatives implemented, such as the furlough scheme, in order to help businesses overcome the financial difficulties of the past two years. This will have certainly helped many companies who may otherwise have failed to survive.” However, despite this positive movement, the number of SMEs operating within the sector is thought to have declined. Previous research by Sirius Property Finance found that since the late 80s, the estimated share of homes built by SMEs across England has fallen from around 77,500 a year to just 19,500 – a 28% reduction with them accounting for just 12% of all homes built. The latest look at SME housebuilder market share estimates that this has since fallen further in 2020 to just 14,789 new homes per year – just 10% of the total market. A trend that Sirius Property Finance believes may continue as we move forward. Nicholas Christofi, continued: “Many SME housebuilders won’t have had the cash reserves that their larger sector counterparts would have had and this means they simply haven’t been able to weather the problems posed by the pandemic in the same manner. When you also consider the widespread supply issues caused by the pandemic and the protracted length of the planning process itself, it’s been far harder for small to medium enterprises to dust themselves off and get building again. However, new and emerging methods of finance are available that better suit SME builders and these options are helping them to overcome the financial strain of the last two years. Conventionally, property development was based on straightforward bank debt. Yet now we see far more innovative ways of funding a building project and specialist lenders that are competing with high street banks head on. These resources are now more competitive, with better terms and, often, much faster to deploy and so there is a likelihood that this will enable SME developers to fight back fiercely over the coming year.” Liquidation figures sourced from Gov.uk – Company insolvency statisticsHousebuilding statistics sourced from Gov.uk – Live tables on housing supply
THE INPUT GROUP has pledged its support to PASIC, a support service for the families of children with cancer in the East Midlands, to begin the first chapter of its corporate charity partnership. The Input Group, whose headquarters are in Derby, kickstarted its efforts on behalf of the charity in December to coordinate the delivery of over 200 Christmas presents during the month across several drop off points. The full-service construction firm also supported with deliveries from other PASIC charity partners, with more than 100 families benefitting from the team’s efforts. Chris Monk, managing director at The Input Group, said: “We believe that the work being carried out by PASIC is truly life changing for families in the community, and as a family business, we are delighted to work with them as they carry out their mission. “PASIC work tirelessly to create a positive, lasting impact in the lives of brave young people and their loved ones. We’re pleased to have played some part in PASIC’s Christmas appeal and festivities and look forward to future opportunities to support them throughout 2022.” Louise Towse, chief executive of PASIC, said: “We’re so grateful to The Input Group for making the coordination of Christmas presents run as smoothly as possible, with their generous offer of time, labour and transport. They were a huge help and eased the load and freed us up to wrap a record number of gifts in time – which ranged from family boardgames and building blocks, to puzzles and colouring kits. “We’re looking forward to working closely with The Input Group moving forwards and are excited about the prospect of offering other forms of support together to families in the area.” PASIC was established more than 40 years ago and provides emotional, social, and practical support to families of children and young people with cancer living in the region. PASIC also helps to build valuable support networks to reduce isolation and make a positive impact to the lives of families coping with childhood cancer. To find out more about The Input Group, please visit www.inputgroup.co.uk or contact marketing@inputgroup.co.uk. To find out more about PASIC, please visit https://www.pasic.org.uk/
Allies and Morrison, Carlo Ratti Associati, Grimshaw, Hawkins Brown and Prior + Partners through to Stage Two Oxford University Development, a £4bn joint venture between the University of Oxford and Legal & General Capital, today reveals the shortlist of five teams proceeding to the second stage of its international design competition for the masterplan team for its world-leading £1 billion, 190-hectare mixed-use Innovation District at Begbroke, to the north of Oxford. The lead consultants of the shortlisted teams are: Allies and Morrison; Carlo Ratti Associati; Grimshaw; Hawkins Brown; and Prior + Partners. The shortlist was selected by the jury panel from an exceptionally strong field of 40 entries. In an extremely competitive field, all shortlisted teams scored highly against the stage 1 criteria of creative ability, problem definition, collaborative thinking, communication skills and the overall diversity and inclusivity of the team. Anna Strongman, CEO, Oxford University Development, said: “We were inspired by the high quality of the entries and excited by the potential of Begbroke outlined by the teams. Practices and collaborations grasped the challenge of creating a place of world leading research alongside a community calling Begbroke home. We look forward to engaging with the short-listed teams to explore ideas further in stage 2.’’ The winning design team will set the bold ambition and design intent for a project that will transform the area around the University’s Begbroke Science Park, to the north of Oxford. The project will also create a community of up to 2,000 quality homes, with new schools, public park and nature reserve. OUD’s aspiration is to create a boundary-pushing scheme that demonstrably achieves a step-change in sustainable design, delivery, and operation. The new district will seek to attract the very best minds, while driving economic growth, improving transport connections, delivering benefits for local people, as well as enhancing the surrounding natural landscape for public access. The site will provide an exemplary new setting for the University’s world-leading science and innovation, which will help address key global challenges facing humanity – from food security and biodiversity to climate change and the urgent need to move to a zero-carbon economy. The ambition for Begbroke is anchored by Cherwell District Council’s Local Plan Partial Review, which has identified the site for a high-quality mixed-use development, comprising a range of research & development, residential, and associated social and physical infrastructure uses, such as schools, local centres, amenity space and recreation/leisure uses, as well as excellent connectivity to the City of Oxford by sustainable means. The first phase of the scheme will bring forward new facilities for University research, as well as providing space to incubate spin-out companies. The competition is being managed by Colander Associates. All 40 Stage One entrants can be viewed online at: https://www.colander.co.uk/journal/begbroke-competition-entries.
Alternatives market rebounds strongly and ESG continues to drive pricing Leading independent property advisory firm, Lismore Real Estate Advisors today released its comprehensive review of the Scottish investment market for the final quarter of 2021 and predictions for 2022. Despite the ups and downs faced during 2021, the Scottish investment market has fared surprisingly well with investment volumes trading at circa £1.345bn, a 24% increase on the total for 2020. The emergence of the Omicron variant and the return of restrictions continues to bring challenges across the entire property market and global economy but quarter 4 trading remained strong at £520m, up 27% on Q4 2020. Key transactions included the £32.2m sale of Sainsbury’s at Inglis Green Road, Edinburgh by Inglis Property LLP to Urbium Capital Partners LLP, the off-market sale of Scania at Eurocentral by West Ranga Property Group to DVS Property for £10.725m and the £58m sale of Exchange Place One in Edinburgh to CBRE Investment Management. Chris Macfarlane, Director of Lismore comments: “The wall of overseas capital chasing stock continues and pricing reached pre-pandemic levels in the food stores, logistics and retail warehousing sectors. However, challenges remaining for significant parts of in-town retail/leisure and investors continue to grapple with offices, other than those of the very best quality or which can be adapted to meet more challenging ESG credentials. “When looking at market themes, one part of the market which was hit hard initially but which has rebounded (in part) very strongly is the alternatives sector, covering PBSA, management contract hotels and serviced apartments. The strongest, well-located assets have seen occupancy levels recover and while net operating income might not be quite back, investor interest has been stirred by their resilient qualities. “In terms of pricing, foodstores, convenience stores and distribution have seen the strongest sharpening of yields of between 50-100bps over the quarter. Core-plus opportunities have been relatively limited but we are seeing a softening of pricing around Grade B offices as investors come to terms with increasing levels of capex and ESG challenges. The only sector really offering “value-add” pricing is the shopping centre market where risk remains but the best assets are starting to find their level, at between 50-90% discount to purchase levels. “UK institutional activity remains very focused on longer income defensive stock including retail warehousing and distribution, although we have seen a welcome return by an institution to the Edinburgh office market for the first time in a number of years. “Overseas investors continue to target Scotland (Edinburgh in particular), with buyers from the Middle East and mainland Europe all remaining active but the overwhelming weight of capital has been from North America. The level of distressed selling continues to be very limited with the more opportunistic buyers looking further up the risk curve, either direct development, vacant buildings or shopping centres.” With a seemingly brighter 2022 looming, the latest investor research undertaken by Lismore predicts that the top three performing sectors in 2022 will be retail warehousing (36%), distribution (28%) and multi-let industrials (17%). Although prime yields have begun to harden, retail warehousing still offers some good value given the rapidly changing retail market and strong occupational demand. The support for foodstores has fallen significantly (6%), perhaps an acknowledgment that a lot of the performance in the sector has come during 2021. The office sector was the most poorly backed by respondents, with concerns over capex requirements and future working habits being mentioned as headwinds for the sector. A significant majority (69%) of respondents in Lismore’s research expect to be net buyers in 2022, with 21% neutral. Investment managers and property companies look to be most acquisitive with 83% and 73% respectively anticipating they will be net buyers in 2022. Just over 50% of funds and private equity respondents expect to be net buyers. Only 10% of respondents expect to be net sellers, suggesting another year of limited stock and inevitable pricing pressures for the best opportunities. The Lismore review also features an in-depth interview with James Dunne, Head of UK Transactions at abrdn, who comments: “The pandemic has highlighted the benefits of having a diversity of income and sectors within a portfolio. The breadth of the alternative sectors provides an increasingly significant part of the real estate investment market, with the hotel sector offers an interesting pattern in durability. However, this recovery trend has been narrow and will continue to be driven by the best assets and the best locations significantly outperforming the market. “The extended stay market (apart-hotels and serviced apartments) was already growing and the ability to pivot from more lucrative short term stays to a longer term model provided certainty of income and meant that the sector showed very strong resilience throughout the worst of the pandemic and therefore a strong rationale to invest both for the protection in the downside but also the predicted performance in a more normal market. “We are still in the early stages of the attitudinal transformation of real estate from providing space as a product to embracing space as a service. The most visible area where we have seen an ongoing shift to a more service real estate environment is the office sector. This has been accelerated and is an area that could continue to develop rapidly with the long term return to the office. The retail sector will have to continue to adapt if it is to stay relevant to the demands of consumers and offer more experiential retail, most likely digitally enabled to lead a partial, targeted recovery in the sector. “The one thing we can be sure of is that the evolution of how real estate is used and provided and the increased ‘hotelisation’ of all sectors will continue apace over the next few years and we as investors have to continue to not only adapt to but drive forward.” The full Lismore Quarterly Review is available to download from: HERE
On Monday 10th of January, the Secretary of State for Levelling Up, Housing and Communities, the RT Hon Michael Gove MP, outlined his proposals aimed at ensuring that industry contributes to the cost of remediating unsafe cladding on residential buildings over 11 metres in height. The announcement makes clear that the Government is committed to the principle that ‘polluter pays’ and that those responsible for the building safety crisis should be held to account. Whilst the proposals for funding this work may not address the immediate concerns of residents, there can be no question that the industry needs to undergo fundamental change if it is to ensure that there is never another Grenfell Tower tragedy. This is the central message of the Industry Safety Steering Group’s third report to the Secretary of State, which was also published yesterday. Highlighting examples of good practice, the report makes clear that there is still a long way to go, and leadership is needed if we are to rebuild trust in the sector following the Grenfell Tower tragedy. Eddie Tuttle, Director of Policy, External Affairs & Research at CIOB, said: “The Chartered Institute of Building has been actively engaged in raising standards and promoting best practice in building safety, for its members and wider industry, and will continue to work with industry and government to bring about the culture change that is needed, as well as developing the required competency standards for the duty holder roles under the upcoming Building Safety Act.”