Business : Finance & Investment News
Surging labour costs push tender price forecast up

Surging labour costs push tender price forecast up

Mace, the global company of delivery consultants and construction experts, has published its latest quarterly Market View with the first report of 2025 revising its tender price forecast up for the year due to surging labour costs. With vacancies jumping to their highest level in 18 months, labour shortages remain

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Pexhurst wraps up strong first quarter of 2025

Pexhurst wraps up strong first quarter of 2025

Pexhurst has wrapped up a strong first quarter of 2025, completing several refurbishment projects across multiple sectors with a combined value of nearly £15 million. The projects supported clients in Pexhurst’s key sectors, industrial and logistics, as well as office refurbishments, across the South East and Midlands. Leading the portfolio

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Arc & Co. structures debt and equity facility for £36m PBSA scheme

Arc & Co. structures debt and equity facility for £36m PBSA scheme

Specialist capital advisory firm Arc & Co. has closed a 70% LTV debt package in partnership with Ingenious Capital Management, whilst also sourcing a JV equity investor to support the development of a purpose-built student accommodation project in Tower Hamlets, London. Southern Grove is developing the 111-bed, £36m GDV scheme in

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Regal Secures £58.6m Refinancing Deal for Watford Office Development

Regal Secures £58.6m Refinancing Deal for Watford Office Development

Regal has successfully secured a £58.6 million investment loan from lender Firma Partners to refinance The Clarendon Works, its newly completed, sustainable office development in Watford. The 12-storey office scheme is the largest of its kind in Watford, offering nearly 140,000 square feet of high-quality workspace, complete with modern amenities.

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Saint-Gobain Strengthens Global Reach with £826.5m Fosroc Acquisition

Saint-Gobain Strengthens Global Reach with £826.5m Fosroc Acquisition

Saint-Gobain has completed its £826.5 million ($1.025 billion) acquisition of Fosroc, a leading specialist in construction chemicals, in a move that significantly expands its presence in high-growth markets. The deal aligns with Saint-Gobain’s strategy to strengthen its position in the global construction sector, particularly in regions experiencing rapid infrastructure development.

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Pivot delivers complex multi-loan transaction for Yorkshire development

Pivot delivers complex multi-loan transaction for Yorkshire development

Specialist real estate lender Pivot has successfully completed a funding package comprised of three loans for a residential development in Denby Dale, West Yorkshire. The £6.5m facility is uniquely structured to encompass three distinct loan types within a single transaction—a development exit bridge, part-complete development loan, and ground-up development facility.

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Latest Issue
Issue 328 : May 2025

Business : Finance & Investment News

Salix delivers decarbonisation work across the UK and has now secured silver status as a Carbon Literate Organisation

Salix delivers decarbonisation work across the UK and has now secured silver status as a Carbon Literate Organisation

Salix Finance, which supports governments across the UK achieve net zero targets, is celebrating after being accredited as a silver Carbon Literate Organisation by The Carbon Literacy Project. The award recognises commitment to equip teams with the knowledge and skills to actively reduce their carbon emissions and to contribute to a net zero future. To achieve this accreditation team members from across the organisation completed carbon literacy training. Achieving silver status fits with the Salix mission to ‘help save the planet’ and the leadership provided in decarbonisation for other public bodies, as well as sustainability in every aspect of the business. We hope it will serve as inspiration for other public sector organisations to follow. Going forward, Salix remains dedicated to helping organisations with the tools they need to reduce emissions at a personal, community, and organisational level. Salix chief executive, Kevin Holland, said: “We’re on a mission to help save the planet, supporting public sector organisations to reduce their environmental impact. “In order to provide leadership in this sector, we want to invest in our people to continually build the knowledge and skills they need. “That’s why we’re committed to carbon literacy training for everyone here. “I’m very proud we’ve been recognised with silver status by the Carbon Literacy Project.” Carbon literacy consultant, Georgina Patel, said: “Salix is focused on supporting clients with decarbonisation. “It has also been very clear that it is also serious about reducing its own organisational carbon footprint. “Through Carbon Literacy training, Salix’s employees have fully embraced their learning about the climate crisis we all face, and to understand what that means to them as individuals and in their job roles.” The Carbon Literacy Trust was formed in September 2013.  It is incorporated as a Charitable Incorporated Organisation (CIO). The Trust’s aim is to advance the education of the public in the conservation, protection and improvement of the physical and natural environment through the dissemination of carbon literacy.  It offers training to organisations and individuals. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Surging labour costs push tender price forecast up

Surging labour costs push tender price forecast up

Mace, the global company of delivery consultants and construction experts, has published its latest quarterly Market View with the first report of 2025 revising its tender price forecast up for the year due to surging labour costs. With vacancies jumping to their highest level in 18 months, labour shortages remain a hurdle for the industry, and labour costs rose by 1.6% in the last quarter of 2024 alone, putting them 6.5% higher than at the end of 2023. Construction pay is now rising faster than in all but one other sector and is growing at its second highest rate since coming out of the pandemic. Even though pay growth across the whole economy spent most of last year between 5% and 6%, construction pay growth more than doubled from March to the year end. With pressure from material prices currently low, a consideration is this may also have an impact over the coming months with higher energy prices and the rise in National Insurance and National Living Wage pushing up costs. Wage pressures, the economy, the construction sector’s productivity weakness and the uncertainty around global logistics have all combined for Mace to revise up its tender price inflation forecast for this year. Nationally, Mace’s updated forecast has risen from 3.5% to 4% for 2025, while 2026, 2027 and 2028 has been left unchanged. In London, the forecast is up from 3% to 3.5% in 2025 with 2026, 2027 and 2028 also remaining the same. Although it remains an uncertain time, as output and the wider economy awaits the impact of policy changes that are expected to have a positive long-term impact, the report concludes that growth in construction in 2025 should comfortably beat that of 2024. Oliver North, Director of Cost and Commercial Management, Europe, Mace Consult said: “Driven by labour costs as vacancies continue to rise, Mace has increased its latest tender price forecast. However, with vacancies on the agenda to solve, this can be met in part with a focus on productivity, which remains low. The welcome recent government funding announcement, incorporating £600m to train 60,000 more construction workers, will be crucial in addressing shortages and supporting the industry’s growth also. “However, economic and political uncertainties remain, and whilst the steps being made when it comes to planning, devolution and funding for the Building Safety Regulator will have a long-term impact, processes need to speed up to boost confidence, help secure pipelines and encourage investment”. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Pexhurst wraps up strong first quarter of 2025

Pexhurst wraps up strong first quarter of 2025

Pexhurst has wrapped up a strong first quarter of 2025, completing several refurbishment projects across multiple sectors with a combined value of nearly £15 million. The projects supported clients in Pexhurst’s key sectors, industrial and logistics, as well as office refurbishments, across the South East and Midlands. Leading the portfolio for size and value was a 300,000 sq ft project at Logicor’s Paddock Wood Distribution Centre in Tonbridge. This marks over £6 million worth of work completed by Pexhurst at the site since 2020. The latest phase overcame the complexities of working on live sites, allowing tenants to continue operations without disruption. Another notable industrial and logistics project was a 157,000 sq ft refurbishment for Prologis in Daventry. The scheme played a crucial role in Pexhurst’s continued expansion into the Midlands market. Martin Vella, Managing Director at Pexhurst, said: “After receiving several instructions in the late stages of 2024, we knew it was set to be a busy and exciting start to the year here at Pexhurst. Our team has kicked off 2025 with impressive results, completing several projects that have satisfied our clients and exhibited our many strengths. “We started this year with a clear list of aims and priorities, including continued growth in the Midlands and home counties, and increasing our foothold in the industrial and logistics sector. It’s very pleasing to see our early efforts this year contributing to our ever-growing portfolio of successfully completed projects. Not only are our clients seeing the benefit of our ever-growing sustainability expertise and dedication, the same applies to ourselves as we make good strides forward towards our 2030 net zero target in scope 1 and 2 emissions.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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Lismore investor research shows PBSA sector to be a shining light for Scottish commercial property market

Lismore investor research shows PBSA sector to be a shining light for Scottish commercial property market

72% of investors are considering Scotland’s living sector in 2025 The PBSA continues to be a shining light in the Scottish commercial property investment market, according to the latest investor research on the living sector conducted by leading independent property advisory firm, Lismore Real Estate Advisors. A majority (72%) of investors are considering Scotland’s living sector in 2025, with interest highest among investment managers (86%) compared to fund investors (50%). The end of rent caps from April 2025 could provide greater stability, supporting growth in a market already facing a housing shortage, particularly in Edinburgh and Glasgow. Lismore’s research found that portfolio diversification (26.8%) is the primary driver of investment in this market, followed by minimal void risk (24.7%) and liquidity (22.3%), highlighting investors’ focus on stability and resilience. Sustainability (28.3%) remains a top priority for PBSA investors, reflecting the sector’s alignment with ESG standards, while demand is also driven by unit mix considerations (24.1%) and reliance on overseas students (23.0%), particularly in prime locations near Russell Group universities. Chris Thornton, Associate Director of Lismore said: “The PBSA sector continues to be one of the shining lights, performing strongly, driven by resilient demand and stable capital values, particularly in cities with a Russell Group university. Despite concerns over international student numbers, institutional investors, private equity firms and specialist platforms remain highly engaged in this sector.” Murdo Mcilhagger Managing Director of MYS Student Living added: “The PBSA market has returned to fundamentals, with strong assets continuing to perform well, supported by macro tailwinds such as growing international student demand and policy shifts. While transaction volumes remain below average, activity is picking up as debt costs ease. “Investors must focus on customer demand, location quality and operational efficiencies, particularly as sustainability becomes a key factor in both revenue generation and cost management. However, challenges persist, including a lack of sellers, thin interest in secondary assets and fire safety remediation impacting liquidity.” Elsewhere in the market, Lismore’s quarterly review statistics show that it has been relatively slow start to the year, with cautious investor sentiment, limited stock availability and ongoing economic uncertainty dampening activity. Transaction volumes in Q1 totalled £202 million, with the largest transaction being Realty’s £66.20 million acquisition of Abbotsinch Retail Park in Paisley (as part of a portfolio) from Ashby Capital. Other notable transactions included L&G’s purchase from Glencairn Properties of the PBSA development at Lower Gilmore Place, Edinburgh for £35 million, Cervidea’s acquisition of 98 Buchanan Street / 31Royal Exchange Square in Glasgow for £13.80 million and French investor, Remake Asset Management’s acquisition of the Nike Store at 18-20 Buchanan Street, Glasgow for £11.87 million. Chris Thornton concluded: “The commercial property market remains cautious amid a mixed economic backdrop and geopolitical uncertainty, with a lack of quality stock delaying significant activity until Q2. Private capital continues to target prime city assets, while selective office yields attract opportunistic buyers. “As spring arrives, signs of renewed momentum are emerging, particularly in the most liquid sectors – industrial, retail warehousing and living.” The full Lismore Quarterly Review for Q1-25 is available to download from: HERE Building, Design & Construction Magazine | The Choice of Industry Professionals

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Round Hill Capital tops out Fairfax build-to-rent development in Manchester ahead of schedule

Round Hill Capital tops out Fairfax build-to-rent development in Manchester ahead of schedule

Round Hill Capital, a leading global specialist real estate investor, developer and manager, has recently topped out on its Fairfax build-to-rent development in central Manchester. With BTR specialist Olympian Homes acting as lead developer and RG Group as main contractor, topping out was achieved eight weeks ahead of schedule. Acquired via a forward funding agreement in August 2022, the development, one of the largest in the central Manchester area, totals 488 one-and-two-bed, high quality apartments across two buildings, of 29 and 23 storeys respectively. Residents will benefit from exceptional amenities including a gym, 24-hour concierge, co-working space and roof terrace with panoramic views of the city skyline. Due to achieve practical completion in early 2026, the asset will be operated by Round Hill Capital and Allsop. Serving as the gateway to the Portugal Street East masterplan regeneration area, the project is less than a kilometre from the city centre. Appealing to a wide demographic of young professionals, families and students, the development is located next to Piccadilly Station, the largest train station in the city, which provides excellent connectivity across the region and wider UK. The scheme is on track to achieve a BREEAM Very Good certification. In line with Round Hill Capital’s commitment to embedding technology in its business and its focus on sustainability, Utopi has been engaged to provide accurate tenant meter data in order to assess the environmental impact of the buildings, positively engage with the future residents, and deliver insightful environmental reporting to Round Hill Capital stakeholders. In 2024, Round Hill Capital secured a £115 million development loan from global investment firm Carlyle (NASDAQ: CG) to fund the construction of Fairfax. With higher-than-average annual GDP growth of 2.2% forecast over the next five years and a growing population, Manchester will require over 170,000 new homes by 2038, with only 70,000 planned or underway, positioning the UK’s largest regional urban centre as an attractive location for investment in high quality rental homes.* Tom France, Head of Acquisitions UK, Round Hill Capital, commented: “Fairfax is our prime, flagship UK build-to-rent development, and just one example of the high quality, sustainable homes in our established pan-European Living platform. Reaching the highest point in the construction ahead of schedule is a fantastic achievement and testament to the collaborative efforts of everyone involved in the project, including the Round Hill Capital team, Olympian Homes and RG Group, all of whom share a commitment to delivering much needed rental homes in central Manchester, where housing supply is still not meeting demand. Manchester is a sought-after location in the UK, attracting young professionals and students and where technology, engineering, manufacturing and pharmaceutical businesses are thriving, creating a huge investment opportunity.” *Sources: Colliers’, UK’s Top UK Residential Investment Cities report / Savills, “Why invest in Manchester” Autumn 2023 report. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Arc & Co. structures debt and equity facility for £36m PBSA scheme

Arc & Co. structures debt and equity facility for £36m PBSA scheme

Specialist capital advisory firm Arc & Co. has closed a 70% LTV debt package in partnership with Ingenious Capital Management, whilst also sourcing a JV equity investor to support the development of a purpose-built student accommodation project in Tower Hamlets, London. Southern Grove is developing the 111-bed, £36m GDV scheme in a joint venture with Falco Group. Andrey Redman, Director at Arc & Co., structured the debt with the Ingenious and Falco teams over a period of eight weeks. Andrey commented: “It is a pleasure to support ambitious developers who are acquiring and building to provide much-needed homes in the popular PBSA, BTR and co-living sectors. “Arc & Co. has the necessary expertise and deep relationships to source funding partners that have the right appetite and experience to back these ambitious strategies. “Our advisory approach ensures that the structuring results in the best possible outcome for the borrower—now and as part of their future business plans. “We are excited to support all parties as they bring their strategies to fruition.” The Tower Hamlets scheme will have a gross internal area of 43,249 sq ft, 5,382 sq ft of which will be commercial space. Construction is set to begin in Q4 this year. Southern Grove has ambitions to deliver 50,000 across its living sector brands, with 5,000 planned for 2024 alone. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Regal Secures £58.6m Refinancing Deal for Watford Office Development

Regal Secures £58.6m Refinancing Deal for Watford Office Development

Regal has successfully secured a £58.6 million investment loan from lender Firma Partners to refinance The Clarendon Works, its newly completed, sustainable office development in Watford. The 12-storey office scheme is the largest of its kind in Watford, offering nearly 140,000 square feet of high-quality workspace, complete with modern amenities. With almost 80% of the space already let, major tenants include National Lottery operator Allwyn, which has taken 63,527 square feet across six floors, and global technology firm Epson UK, occupying 30,530 square feet. Interest remains strong in the two remaining floors of this premium-grade workspace, which has been designed to rival central London office standards. The deal marks another milestone for Firma Partners, a newly launched real estate lender. This is only its second transaction following last month’s support for McGrath Group’s £40 million acquisition and development project in West London. Victor Librae, chief executive of Firma Partners, commented: “We are pleased to provide Regal with an investment loan to refinance The Clarendon Works, a development that has set a new standard for office space in Watford and the wider South East. This highly sustainable, amenity-rich workspace has already attracted leading tenants, demonstrating its strong market appeal. “Firma Partners is committed to supporting innovative developers and investors in delivering top-tier real estate projects. The facility we are providing for The Clarendon Works aligns with our approach to backing high-quality developments with long-term potential.” Firma Partners specialises in flexible capital solutions for mid- to large-scale real estate investments and developments. Its focus spans across the living sector, including residential, mixed-use, build-to-rent, student accommodation, co-living, later living, hospitality, and hotels.

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Saint-Gobain Strengthens Global Reach with £826.5m Fosroc Acquisition

Saint-Gobain Strengthens Global Reach with £826.5m Fosroc Acquisition

Saint-Gobain has completed its £826.5 million ($1.025 billion) acquisition of Fosroc, a leading specialist in construction chemicals, in a move that significantly expands its presence in high-growth markets. The deal aligns with Saint-Gobain’s strategy to strengthen its position in the global construction sector, particularly in regions experiencing rapid infrastructure development. Expanding into Key Growth Markets Fosroc, headquartered in the UK, has built a strong reputation for its advanced chemical solutions used in infrastructure, industrial, and commercial projects worldwide. The company has a well-established presence in fast-growing regions, including India, the Middle East, and the Asia-Pacific, where large-scale construction projects are driving demand for specialised chemical products. By acquiring Fosroc, Saint-Gobain gains direct access to an extensive distribution network and an established customer base in these key markets. The integration will enhance its ability to provide tailored solutions that meet the specific needs of diverse construction environments. Boosting Product Innovation and Technical Expertise Fosroc’s expertise spans a wide range of construction chemicals, including concrete admixtures, waterproofing systems, grouts, adhesives, and industrial flooring solutions. This acquisition allows Saint-Gobain to offer a more comprehensive suite of construction products, creating a one-stop solution for developers, engineers, and contractors. The deal is also expected to drive further investment in research and development, leading to new high-performance solutions for complex construction challenges. By combining Fosroc’s chemical innovation with Saint-Gobain’s existing materials expertise, the company aims to push the boundaries of sustainable and efficient building technologies. A Strategic Step in a Changing Industry This acquisition is one of Saint-Gobain’s most significant in recent years and reflects a broader trend of consolidation within the construction industry. As demand for infrastructure continues to rise, particularly in emerging economies, major players are increasingly seeking strategic mergers to enhance their capabilities and market reach. With this move, Saint-Gobain positions itself for sustained growth, reinforcing its commitment to innovation and expanding its influence across the global construction landscape.

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Pivot delivers complex multi-loan transaction for Yorkshire development

Pivot delivers complex multi-loan transaction for Yorkshire development

Specialist real estate lender Pivot has successfully completed a funding package comprised of three loans for a residential development in Denby Dale, West Yorkshire. The £6.5m facility is uniquely structured to encompass three distinct loan types within a single transaction—a development exit bridge, part-complete development loan, and ground-up development facility. This innovative funding solution enables the borrower to refinance an existing lender, support the completion of partially built units, and provide capital for the new construction of a 34-home residential development. The case was introduced by a broker who chose Pivot because of its ability to structure the deal as three transactions across the different loan types to maximise leverage and consider the varying stages the site was in.  The funding package was structured as follows: This holistic approach ensures that the borrower can efficiently manage sales, complete construction phases, and maintain momentum in delivering high-quality homes. The lender has cultivated a reputation for deal structuring that considers the true SME developer experience—several of the Pivot team have built and sold properties and have a genuine understanding of the inherent opportunities and pitfalls that come with the job. Andreas Yianni, Commercial Director at Pivot Finance, said: “This transaction highlights our ability to shape funding solutions that address multiple stages of a development in one seamless package. “By incorporating a blend of development exit, part-complete, and ground-up funding, we have provided the borrower with a flexible and strategic solution to support their project through to completion. “It’s a great example of how we tailor our lending to meet the real-world needs of developers.” Pivot has enjoyed an incredible start to the year with as raft of new hires, increased funding capacity, and a vocal commitment to supporting ambitious SME developers who need reliable bridging and development finance to bring forward their sites.  Building, Design & Construction Magazine | The Choice of Industry Professionals

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Sustainable Logistics Hub Planned for Letchworth as Bridges and Wrenbridge Secure Key Site

Sustainable Logistics Hub Planned for Letchworth as Bridges and Wrenbridge Secure Key Site

Bridges Fund Management and Wrenbridge have acquired a prime 6.5-acre site in Letchworth, Hertfordshire, with plans to develop a cutting-edge 130,000 sq ft logistics scheme. The site, purchased from Tesco and Letchworth Garden City Heritage Foundation for an undisclosed sum, will be transformed into three state-of-the-art warehouses. Designed to meet the highest sustainability standards, the development will achieve an EPC ‘A+’ rating and operate at net zero carbon. Harry Gibson, director at Wrenbridge, commented: “This acquisition marks our fifth purchase with Bridges, and we remain on the lookout for further opportunities. We are excited to deliver another high-quality, sustainable industrial scheme that will drive local economic growth and provide best-in-class space for businesses in an undersupplied market.” Graham Fisher, chief executive at Letchworth Garden City Heritage Foundation, welcomed the investment: “A core part of the foundation’s strategy is to attract new investors, unlock regeneration opportunities, and support economic growth. We are pleased that Wrenbridge and Bridges share our vision and are investing in the heart of our industrial area.” The deal saw JLL represent Tesco, while Savills advised Wrenbridge. Kirkby Diamond and Clarke Willmott acted on behalf of Letchworth Garden City Heritage Foundation. Building, Design & Construction Magazine | The Choice of Industry Professionals

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