Glenigan, one of the construction industry’s leading insight experts, releases the April 2023 edition of its Construction Index. The Index focuses on the three months to the end of March 2023, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally
Research from eXp UK, the network of personal estate agents, has revealed that in no less than 22 UK cities, house prices are continuing to outperform the current rate of inflation, as the housing market stands strong despite fears of a property market dip during the closing stages of 2022. eXp
The Regenda Group, a regeneration organisation which includes M&Y Maintenance and Construction, has acquired Ecogee Ltd. Ecogee, is an energy, retrofit and construction specialist, providing green solutions for Local Authorities, social housing providers, and private developers. Originally established in 2012 the company was set up in response to the Government’s
Deanestor, one of the UK’s leading furniture and fitout specialists, has announced a record order intake of around £24m in the last six months. The business is now anticipating its highest ever turnover in 2023, which is projected to rise to £22m. This will be an increase of £2.8m compared
Mark Robinson, group chief executive at SCAPE, one of the UK’s leading public sector procurement authorities, said: “Limitations to public sector spending from the Chancellor were to be expected, with local authorities being told to strengthen their existing budgets and, in some cases, manage real-term cuts. “Public sector investment in
GLP announced strong 2022 operational results across its businesses in logistics real estate, data centers, renewable energy and related technologies. Key highlights include: Ming Mei, Co-founder and CEO of GLP said: “GLP delivered strong operating performance across its global business in 2022 and is well-positioned for the year ahead. We
Analysis by peer to peer real estate investment platform, easyMoney, has revealed that when it comes to the returns currently being seen across the British property market, it’s commercial property that is providing the stronger yields when compared to the average yield available via the residential sector. easyMoney analysed the
Get ready to be blown away because Shell has just reported its highest profits in 115 years. That’s right, the oil giant is breaking records and shaking up the industry with impressive financial performance. Record Annual Profits Shell’s Yearly Earnings Hit a New Record During the fiscal year 2022, Shell
RSK, a global leader in the delivery of sustainable solutions, has announced the acquisition of Richard Irvin FM, a technical facilities management and energy solutions company. With a network of offices across Scotland and the north of England, Richard Irvin FM has a team of 230, including engineers, operations staff, project managers and compliance specialists, and an annual turnover in excess of £25 million. Its clients
A NUMBER of successful large transactions helped to boost East Midlands commercial property agents Innes England’s results at the end of last year, the company has revealed. The deals included more than 200,000 sq ft of transactions in phase 1 at St Modwen Park Derby, the flagship industrial and logistics
Glenigan, one of the construction industry’s leading insight experts, releases the April 2023 edition of its Construction Index. The Index focuses on the three months to the end of March 2023, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted. It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. Heading into Q.2 2023, the April Index shows construction-starts continuing to slide on a downhill trajectory. Similar to the February and March editions of the Index, project-start performance remained frustratingly slow across the sector throughout Q.1, amid eye-watering price inflation and intense economic uncertainty. This protracted period of depression is emphasised through a massive 46% decline during the Index period, compared to last year’s figures, as climbing interest rates keep public and private investors cautious about committing to new projects. Commenting on the findings, Glenigan’s Economic Director, Allan Willen, says, “Poor construction performance in the three months to March is disappointing but unsurprising, with a continued slowdown in project-starts reflecting the UK’s stagnant economic situation. Despite the Chancellor’s confirmation that we are not entering a recession in last month’s Budget, the UK economic outlook remains weak. Investor and consumer confidence is at a low ebb which has, inevitably, stalled private sector activity. “Public sector starts have also disappointed, reflecting capital under-spending by a number of government departments during the last financial year. However, the Chancellor also used the Spring Statement as an opportunity to bring forward some of these underspent funds to the new financial year. This is potentially good news for those contractors specialising in critical infrastructure, where this money will likely be committed, helping to boost the industry through greater investment in mega-projects and transport upgrades throughout the rest of 2023.” Taking a closer look at sector verticals and UK regions… Sector Analysis – Residential Residential construction experienced overall decline in the three months to March as starts fell 39% to stand 51% lower than a year ago. Private housing performance was particularly weak, finishing 39% down against the preceding three months and by half compared with the previous year. Social housing also dropped back, with work starting on site falling 41% against the previous three-month period, plummeting 52% on 2022 levels. Sector Analysis – Non-Residential The value of starts across non-residential sectors fell by a third (-33%) during the three months to March, finishing 42% lower than 2022 figures. Overall performance was weak, with all verticals experiencing a decline against the preceding three-month period. Industrial project-start performance was especially poor, with project-starts weakening 50% during Q.1 to stand 64% lower than a year ago. Retail also fared poorly, with the value of project-starts falling back 32% against the preceding three months and 48% against the previous year. It was a similar story for offices, stumbling on a previous flurry of activity in Q4 2022. The value of underlying project-starts fell back 32% during Q.1 to stand 40% down on a year ago. Health project-starts also slipped back abruptly, declining 36% against the preceding three months to stand 42% down on the year before. Hotel & leisure and community & amenity also decreased 44% and 5% against the preceding three months, to stand 40% and 19% down on the previous year, respectively. Education starts fell down 5% against the preceding three months but increased a modest 4% on 2022 levels. Civils work starting on-site dropped 28% against the preceding three months to stand 29% down on a year ago. Infrastructure starts dropped 43% against the preceding three-month period, down 49% on the previous year’s figures. However, in a rare bright spot amid the overall gloom, civils general decline was partly offset by utilities activity, which only declined 3% in Q.1 2023, but finished 23% up on a year ago. Regional Analysis Regional performance was poor, with project-starts weakening across all areas of the UK during the three months to March. Yorkshire & the Humber suffered the heaviest fall, declining 57% during Q.1 to stand 65% down on a year ago. It was a similar story in the South East, with the value of project-starts decreasing 48% against the preceding three months and remaining significantly down (-52%) on the previous year. Faltering on its strong performance in recent months, project-starts in the North East experienced a sharp fall against both the preceding three months (-46%) and previous year (-41%). London and the South West weakened against the preceding three months, falling back 28% and 24%, respectively. Both regions were down on the previous year, remaining 42% and 31% lower than a year ago. Some areas of the UK fared even worse, including Scotland where the value of project-starts fell 48% against the preceding three months to stand 56% down on a year ago. This was also the case in the East Midlands, West Midlands, Wales, Northern Ireland, and the North West which all crashed compared to both the preceding three months and previous year. To find out more about Glenigan and its construction intelligence services click here. 2023 sees Glenigan celebrate its 50th anniversary, commemorating half a century of delivering the highest-quality construction market intelligence. To find out more about its services and expertise click here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Research from eXp UK, the network of personal estate agents, has revealed that in no less than 22 UK cities, house prices are continuing to outperform the current rate of inflation, as the housing market stands strong despite fears of a property market dip during the closing stages of 2022. eXp analysed the city rate of inflation seen across 62 UK cities and how this compares to the strength of the housing market based on the annual rate of house price growth. The research shows that across the UK as a whole, house prices have continued to climb by a respectable 6.3% on an annual basis. However, despite inflation peaking in recent months, it remains at a rate of 10.4%, 4.1% above the average rate of house price growth. Despite topline house price growth trailing inflation, the research from eXp shows that a number of major UK cities are actually putting in a stronger performance, with no less than 22 of the 62 major cities analysed seeing strong rates of house price growth versus inflation. Peterborough tops the table where inflation currently sits at 10.2 %, while house prices have climbed by 14.4% in the last year, a 4.1% difference. In Wigan , inflation is currently at a rate of 10.7%, while house prices are up 13.9%, a difference of 3.2%. This difference also sits at 3.0% in Derby , where house prices are up 13.9% versus a city inflation rate of 10.9%. Other cities to make the top 10 include Norwich (2.5%), Nottingham (2.5%), Swindon (2.0%), Cambridge (1.7%), Blackburn (1.5%), Barnsley (1.3%) and Birmingham (1.2%). In contrast, the current rate of city inflation across Aberdeen is 10.2%, while house prices are down 4.4%, resulting in a balance of -14.6%. Head of eXp UK, Adam Day, commented: “Even in times of economic uncertainty and hardship, the UK property market provides a safe haven for many homeowners and it’s no wonder that so many of us aspire to own our own homes, as it’s one of the safest, long-term investments you can make. In fact, while there have been many predictions of a housing market crash, this simply hasn’t come to fruition and, in fact, property values have increased annually in all but one major UK city. What’s more, despite many households facing the toughest cost of living crisis in living memory, they can at least rest safe in the knowledge that their home is outpacing inflation when it comes to its increase in value over the last year.” Data tablesData tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
The Regenda Group, a regeneration organisation which includes M&Y Maintenance and Construction, has acquired Ecogee Ltd. Ecogee, is an energy, retrofit and construction specialist, providing green solutions for Local Authorities, social housing providers, and private developers. Originally established in 2012 the company was set up in response to the Government’s energy efficiency programme, to tackle fuel poverty and reduce carbon emissions. Ecogee provides both retrofit and new build solutions including; fabric insulation, ventilation systems, and renewable technologies such as air source heat pumps and solar panels. Ecogee is also an accredited provider of the government ECO grants scheme, which provides eligible households with energy-saving improvements in the home. With the National Housing Federation estimating that homes are responsible for about a fifth of all greenhouse gas emissions in the UK, a lot of work is to be done if housing associations are to meet the government’s ambition of carbon neutral by 2050. Within that aim is a target to ensure all existing homes have an Energy Performance Certificate (EPC) band C or above and new build homes are EPC band A. The incorporation of Ecogee into the Regenda Group will be overseen by Gill Kelly, Managing Director of M&Y Construction and Maintenance, which will work in close partnership with Ecogee. Gill commented, “As a regeneration group which includes a Housing Association, we understand the pressure of fuel poverty and the shortage of great contractors in the market to service the growing demand for energy efficiency works. By bringing the expertise of Ecogee into the Regenda Group we are confident that we can increase the capacity within the supply chain to deliver energy-efficient improvement works to existing and new clients”. Ecogee Managing Director Brendan Helm said: “The Regenda Group is well known for its role in regeneration and making a positive impact in local communities and we share the same values at Ecogee. We recognise that the opportunity to join forces, will enhance the impact we are making towards the planet and in people’s pockets through our offer”. Find out more about Ecogee here: Eco Gee Ltd Building, Design & Construction Magazine | The Choice of Industry Professionals
Deanestor, one of the UK’s leading furniture and fitout specialists, has announced a record order intake of around £24m in the last six months. The business is now anticipating its highest ever turnover in 2023, which is projected to rise to £22m. This will be an increase of £2.8m compared to last year. Since the start of 2022, production volumes have continued to rise steadily as Deanestor’s factories returned to pre-pandemic levels of turnover and profit. Turnover in 2022 increased sharply by 35 per cent to £19.2m in comparison with 2021. The record intake is for fitout projects for both new and long-standing repeat clients and contractors and are across a diverse range of markets from build-to-rent and student living in the private sector, to healthcare and education. The latest orders include: William Tonkinson, Managing Director of Deanestor, said, “Towards the end of 2022 and at the start of this year, we have seen our highest ever order intake. Confidence has definitely returned. Build-to-rent is extremely buoyant, and the student living and education sectors remain strong. We are also seeing an increase in the size of our projects for residential schemes as well as a trend for taller buildings to deliver more homes for rent.” “Enquiries remain at healthy levels, and we now have a record quote book which is another very positive economic indicator.” “The acute challenges in labour and materials costs after the pandemic have now stabilised and with such a strong order pipeline, we expect our growth to continue for the next 24 months and beyond. We are creating around 12 new jobs this year to support our growth.” Deanestor’s Scottish business is based in Fife and continues to perform well. It has recently been awarded its largest education contract to date – a £5m project for BAM to manufacture furniture and fitout two high schools on the Dunfermline Learning Campus. Established in 1948, Deanestor provides furniture solutions to construction clients and contractors for healthcare, education, student accommodation, build-to-rent and laboratory projects – both new build and refurbishment. Its manufacturing and distribution facilities in Mansfield, Nottinghamshire now span 220,000 sqft across five sites and it employs around 150 staff. For further information, visit www.deanestor.co.uk, call 01623 420041 or email enquiries@deanestor.com . Building, Design & Construction Magazine | The Choice of Industry Professionals
Mark Robinson, group chief executive at SCAPE, one of the UK’s leading public sector procurement authorities, said: “Limitations to public sector spending from the Chancellor were to be expected, with local authorities being told to strengthen their existing budgets and, in some cases, manage real-term cuts. “Public sector investment in infrastructure has been a major driver of growth and community change post-Covid, and the concern is that any long-term reduction in local spending has the potential to limit the positive effects of ongoing regeneration plans. “To this end, the further devolution of powers to the combined authorities in Greater Manchester and the West Midlands is a significant takeaway for the construction industry. Having greater say over local transport, skills and housing will ultimately lead to more focused spending, which can only benefit investment in local communities – be that infrastructure-led or otherwise. We hope this sets a precedent to be swiftly followed in future Budgets.” Building, Design & Construction Magazine | The Choice of Industry Professionals
GLP announced strong 2022 operational results across its businesses in logistics real estate, data centers, renewable energy and related technologies. Key highlights include: Ming Mei, Co-founder and CEO of GLP said: “GLP delivered strong operating performance across its global business in 2022 and is well-positioned for the year ahead. We are focused on scaling our data center and renewable energy business and continue to grow our core logistics business to meet sustained customer demand which has resulted in record leasing activity and an active development market. Sustainability continues to be top of mind as we design, build and operate our assets with environmental performance and innovation to minimize carbon emissions as well as support our customers’ sustainability performance targets.” Logistics In 2022, logistics real estate fundamentals remained resilient as demand for modern logistics facilities increased, driven by global supply chain shifts and growing domestic consumption met by undersupply in key markets. GLP expanded its logistics real estate footprint to 83 million square meters (“SQM”) in 2022, completing 3 million SQM of developments and commencing 3.4 million SQM of new developments. A total of 27 million SQM of real estate was leased globally – a 12% yoy increase with a group lease ratio of 92%. GLP continues to develop and build its logistics supply chain ecosystem through scaling its cold storage business. The cold chain market is expected to grow with the surge in demand for longer shelf-life and temperature-controlled logistics within the pharmaceuticals, chemicals, food, and beverage sectors. As of 2022, GLP delivered over 3 million SQM of cold storage space across our markets in Asia, Europe and the Americas and continues to identify opportunities to invest in this complementary sector. GLP continues to expand its global customer base, partnering with customers to support their cross-border expansion plans as they enter and grow in new markets. Approximately 21% of GLP’s total net leasable area is let to global customers who utilize GLP facilities in more than one country, underpinned by sectors with strong demand for international growth such as e-commerce and express delivery services. GLP’s modern logistics facilities and value-adding property management services continue to attract repeat customers with steady customer lease renewals. Data Centers GLP launched its data center business in 2018 and aims to deliver efficient and resilient IT load capacity safely and securely to its customers across the globe. Data center fundamentals remain strong with rising demand for local hyperscale data center facilities to support digitization trends such as AI, IoT and cloud services across industries. GLP is currently one of the leading independent data center operators in China with assets that will deliver approximately 1,400 MW of IT load capacity upon completion. During the year, GLP also secured the largest built-to-suit data center in China for a leading domestic internet company. To support sustainable growth of the industry, 100% of new GLP data centers in China are built to meet GB-A/T3+ standards and ODCC certifications. In 2022, GLP announced plans to enter Japan’s data center market, targeting to invest more than $12 billion over the next five years to achieve 900 MW of power capacity. GLP has since made significant progress on seven development assets in Japan, London and Brazil, including securing prime sites for future data center campus developments in the Tokyo and Kansai regions which will provide approximately 600 MW of IT load. GLP expects to break ground on its first Japan data center campus in Greater Tokyo in 2023, with the first building expected to be ready for service from 2024. Renewable Energy GLP continues to aid the global energy transition and meet clean energy demand by operating and developing assets across the renewable energy value chain including solar energy, wind energy and energy storage solutions. As of December 2022, GLP reached 700 MW of solar energy capacity from onsite solar panels installed across GLP and third-party properties in Asia, Europe and the Americas, resulting in a 68% yoy increase in total solar capacity. In 2020, GLP launched a joint venture with Contemporary Amperex Technology Ltd. (“CATL”), the world’s leading battery provider and the largest maker of electric vehicle (“EV”) batteries to create a new platform aimed at expanding the use of new energy through energy-as-a-service offerings to advance sustainability in logistics and transportation. As of 2022, GCTL has rolled out five battery swap stations for heavy duty vehicles with 15 additional stations in the pipeline; each station services more than 150 vehicles per day. Sustainability GLP continues to make progress on its ESG commitments and targets with its focus on reducing carbon emissions from development and operations as well as supporting customers to meet their sustainability performance targets. We are measuring embodied carbon in our developments through life cycle assessments which help us better understand our impact and identify localized reduction opportunities during design and construction. GLP Shanghai Baoshan Park received GLP’s first LEED EBOM Platinum certification and is one of the first logistics projects in China to receive this level of certification. Carbon emissions in the park were reduced by 2,500 tons of CO2e and the park has achieved carbon neutral operations. GLP achieved approximately 150 new green building and energy certifications last year to reach 480 certifications as part of its 2022 global commitment to build to globally recognized green certification standards. The company maintained its ‘Low’ risk rating and is a top ESG performer by Sustainalytics which measures a company’s exposure and management of industry specific material ESG risks. Building, Design & Construction Magazine | The Choice of Industry Professionals
Analysis by peer to peer real estate investment platform, easyMoney, has revealed that when it comes to the returns currently being seen across the British property market, it’s commercial property that is providing the stronger yields when compared to the average yield available via the residential sector. easyMoney analysed the current average yield being returned across both the residential and commercial property markets to see how the two are currently comparing, as well as how the balance between the two differs across each region of the nation. The research shows that currently across Britain, the average yield returned when investing within the residential sector is a respectable 4.1%. However, investing within the commercial property sector will see an average return of 6.5%. Scotland is currently home to the highest average residential return on investment at 5.4%, with the North West (5.2%) also home to an average resi yield of above 5%. In contrast, the average residential return being seen across the South East is the lowest of all areas of Britain at 3.7%. However, when it comes to commercial property yields, the North East tops the table, with the average return being seen in the current market sitting at a lofty 9.1%, followed by Yorkshire and the Humber (8%). London is home to the lowest average commercial yield in the current market at 4.6%. Again, the North East and Yorkshire top the table when it comes to the gap between the average residential and commercial yield available in the current market, with a difference of 4.5% and 3.6% respectively. The South East (3.1%) is also home to a gap of more than 3% between current resi and commercial yields, while London is home to the most balanced market with a difference of just 0.2%. Jason Ferrando, CEO of easyMoney says “Whether buying a home for yourself, investing in the rental sector, or looking to the commercial space, property is one of the smartest investments you can make. But for the amateur and professional investor alike, knowing exactly where to invest can be a daunting task. As our research shows, the strength of a bricks and mortar investment not only differs from one sector to the next, but also depending on which region you look to and some areas offer a greater balance between commercial and residential returns when compared to others. The key to investing successfully is often portfolio diversification and so it’s no wonder that many investors are opting for the peer to peer route when considering where best to place their money. In doing so, they are able to take advantage of far stronger rates of return, with their money gradually diversified across a range of bridge and development loans, for both residential and commercial developments.” Data tables – Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Get ready to be blown away because Shell has just reported its highest profits in 115 years. That’s right, the oil giant is breaking records and shaking up the industry with impressive financial performance. Record Annual Profits Shell’s Yearly Earnings Hit a New Record During the fiscal year 2022, Shell reported adjusted earnings of $39.9 billion. This easily exceeds Shell’s previous yearly record of $28.4 billion in 2008 and is more than twice the company’s full-year 2021 profit of $19.29 billion. Refinitiv surveyed analysts predicted a net profit of $38.3 billion for the fiscal year 2022. Shell’s chief executive, Ben van Beurden, said the results were “a strong set of results” that reflected the company’s strategic progress. The company’s shares rose by 3.5% in early trading on the London Stock Exchange following the release of the figures. “We are making good progress on our strategy to become a world-class investment”, he said. Shell’s shares rose by more than 3% in early trading on Thursday. Windfall Tax – Energy Profits Levy In the early 1990s, the UK government introduced a windfall tax, also known as the energy profits levy, which aimed to reduce the country’s budget deficit. The tax was designed to raise money by taxing profits made from the sudden increase in the value of oil and gas assets following the collapse of the Soviet Union. At the time, there was a lot of speculation about the future of oil and gas, and the windfall tax was intended to help fund government spending on renewable energy and other initiatives. called the Energy Profits Levy, which aimed to reduce the country’s budget deficit. The tax was designed to raise money by taxing profits made from the sudden increase in the value of oil and gas assets following the collapse of the Soviet Union. This was to ensure that these companies contributed towards the costs of environmental clean-up and energy efficiency programs. The tax was also seen as a way of leveling the playing field between Britain’s privatized utilities and state-owned companies in continental Europe, which did not have to pay such a tax. Despite All Despite the pandemic and the fall in brent crude oil, the company attributes these record-breaking profits to its focus on cost-cutting and efficiency measures. Shell CEO Ben van Beurden said that the company had made significant progress on its journey to become a more lean and agile organization. He added that Shell would continue to invest in its operations and infrastructure to ensure long-term growth. Van Beurden also announced that Shell would be returning $125 billion to shareholders through share buybacks and dividends over the next three years. This is the biggest shareholder return program in the company’s history. In The Future As one of the world’s largest oil companies, Shell has long been under pressure to address its impact on climate change. And in recent years, it has made some progress, investing in renewable energy and setting goals to reduce its greenhouse gas emissions. Specifically, Shell plans to continue reducing its costs and increasing its efficiency. It also intends to keep investing in renewable energy and low-carbon technologies. As part of that effort, the company recently announced a partnership with Energias de Portugal (EDP) to develop an offshore wind farm off the coast of England. Final Words Shell’s record profits in 2021 show how the company has managed to successfully navigate a challenging and uncertain business environment. The company has shown resilience through its prudent financial management, cost-cutting measures, and innovative approach to doing business. As the global economy recovers from the pandemic, Shell is well-positioned to capitalize on these opportunities and further increase its profits. It will be interesting to see what other successes Shell can achieve over the coming years. To sum up. The success is largely due to cost-cutting measures, improved operating performance, and higher oil and gas prices. Looking ahead, Shell plans to continue reducing costs and increasing efficiency while also investing in renewable energy and low-carbon technologies. If the company is able to meet these goals, then it should be well-placed to capitalize on future opportunities and further boost its profits. Building, Design & Construction Magazine | The Choice of Industry Professionals
RSK, a global leader in the delivery of sustainable solutions, has announced the acquisition of Richard Irvin FM, a technical facilities management and energy solutions company. With a network of offices across Scotland and the north of England, Richard Irvin FM has a team of 230, including engineers, operations staff, project managers and compliance specialists, and an annual turnover in excess of £25 million. Its clients include Total, BP, National Libraries of Scotland, the Scottish veterans charity Erskine and the councils of Aberdeen City, Aberdeenshire, Midlothian, Highland, Falkirk, Dundee, Moray and Angus, along with commercial landlords, housing associations, managing agents, national facilities management businesses, hotel chains and leisure establishments. Its energy services include building energy management systems, heat pumps and solar and renewable solutions. The business maintains, repairs and improves more than 62,000 UK commercial and domestic properties with a full scope of services, which include heating, ventilation, air conditioning, electrical, lighting, detection, renewable systems, fabric and specialist services, often delivered as complete facilities management packages. Recent projects have included a specialist services installation within a hydrogen bus fuelling depot in Aberdeen, full building and services refurbishment of a nursery in Midlothian, heating plant upgrade at a leisure complex in Aberdeenshire, large-scale heating burner upgrade for a Lothian university, a number of mechanical and electrical upgrades at Ministry of Defence sites across Scotland and roofing upgrade works for an oil sector customer in Great Yarmouth. Chief Executive Officer Mark Buchan, who will continue to lead the business, said: “We are delighted with the acquisition, and we strongly believe that joining RSK will help us move forward as a company, building and strengthening our reputation even further. Over the last four years, we have already built the Richard Irvin FM brand into a company with an enviable reputation, which RSK can help us to develop further. Working with the RSK Group will support our growth plans into England and, with its broad group of companies, will provide us with the scope to offer our current and target customer base an enhanced range of services.” RSK Chief Executive Officer Alan Ryder said: “Richard Irvin FM brings a wealth of technical facilities management and energy expertise to RSK, with an emphasis on safety and compliance and sophisticated software solutions to offer its clients 24/7 asset management and peace of mind. We’re looking forward to welcoming them to the group and sharing this expertise with our colleagues and clients.” As RSK continues to deliver its ambitious growth strategy, it now comprises more than 175 companies with 11,000 people. The group’s annual turnover at the end of FY22 was £796 million. The acquisition adviser was Satvir Bungar of BDO. Building, Design & Construction Magazine | The Choice of Industry Professionals
A NUMBER of successful large transactions helped to boost East Midlands commercial property agents Innes England’s results at the end of last year, the company has revealed. The deals included more than 200,000 sq ft of transactions in phase 1 at St Modwen Park Derby, the flagship industrial and logistics development on Pride Park which has seen a huge amount of activity over the last 12 months and is going from strength to strength this year. Another significant deal involved the letting of the final 150,000 sq ft unit at Leicester Distribution Park (LEDP), located off the A47 near Leicester city centre, to third party logistics operator XPO. Innes England, M1 and CBRE acted on behalf of property developer Graftongate and investment managers BlackRock to complete the 45-acre scheme’s final phase. The transactions helped to mark a successful last quarter of 2022 for Innes England, despite an unsettled second half of the year for the commercial property market – as the company’s recent Market Insite report noted. Peter Doleman, the firm’s head of agency, said: “What is particularly pleasing about this latest set of results is that all three of our East Midlands offices made significant contributions to the end result which incorporated both acquisition and disposal activity and demonstrated the breadth and depth of expertise offered by the Innes England team.” Derby’s industrial real estate take-up continued its acceleration last year, with 1.2m sq ft of space being acquired – up from 891,000 sq ft and the second-highest take-up on record, according to Market Insite. Nick Hosking, Innes England’s director and head of agency and development in the city, said: “Derby’s industrial figures have never been better and with demand continuing to outstrip supply we see that trend continuing this year. “The developer St Modwen has invested £50m into the local economy over the last 12 to 18 months, with the delivery of 300,000 sq ft of new build grade A warehousing accommodation. “Following the success of phase 1 it is really encouraging news that St Modwen will shortly deliver the next phase with the development of a further 350,000 sq ft, given industrial supply in Derby remains extremely thin on the ground.” The optimistic outlook continues with the recent announcement that heating technology company Vaillant is to open a production site at St Modwen Park Derby, creating more than 200 jobs. The custom-built site is due to open in the autumn to allow Vaillant, which has its UK headquarters at Belper, to meet increasing demand for heat pumps. And Swedish medical technology manufacturer Getinge has revealed plans for a new global centre of excellence for chemistry and its UK headquarters at St Modwen Park Derby. Nick added: “Attracting Getinge to the scheme is really positive news for Derby, enabling its continued expansion and securing valuable hi-tech jobs within the city.” Meanwhile, Leicestershire’s industrial take-up of four million sq ft of space in the year was ‘excellent news’ added Peter. “It can be partly explained by the county’s exposure to the national distribution market and its location for a number of sites that cater for this specific massive market.” The office market in Leicester topped the leader board in the industry’s Estates Gazette Radius On-Demand rankings on lettings and occupational sales transacted between October and December in 2022. In Nottingham, Innes England director Scott Osborne facilitated a multi-million pound transaction on behalf of Henton and Chattell, the UK’s leading distributor of ground care and garden machinery. The company acquired three income-producing buildings of nearly 50,000 sq ft in Abbeyfield Road as part of its ambitious expansion plans. Scott added: “Innes England experienced a bumper end of the year with almost half a million square feet transacted in the last quarter. We look forward to many more successful deals in 2023.” Innes England’s new Birmingham office – opened last year under its head of office Adam Rock – had also exceeded expectations in its first nine months on the level of instructions and turnover generated, the company said. To find out more about Innes England, visit the company’s website: https://www.innes-england.com/ Building, Design & Construction Magazine | The Choice of Industry Professionals
