Hanson UK will acquire the Mick George Group, a market-leading construction and demolition waste (CDW) recycler in East Anglia and East Midlands, subject to relevant competition authority approval. The Mick George Group, which has an annual revenue of around £220 million, specialises in bulk excavation and earthmoving services, demolition, environmentally
Modular housing firm ilke Homes has raised a record-breaking £100 million from new and existing shareholders following successive years of triple-digit growth. The round is being led by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), a leading global investment manager with approximately $46 billion of assets under
The EU’s pioneering role in climate protection matters is not without its disadvantages, with its energy supply hugely dependent on gas. The Ukraine War has resulted in sharply rising gas and electricity prices and while a way out of the crisis is currently being discussed on the political stage, things
CITB ’s Chief Executive, Tim Balcon said: “Construction employers are facing rising energy bills and materials costs and they need confidence in the future pipeline of work and support to train through challenging market conditions. “We will do everything we can to support the construction industry so companies can continue to
UK property developer Godwin Developments today announces the launch of a nationwide build-to-rent (BTR) platform. Working as an equity investor in partnership alongside a leading institutional real estate partner, Godwin has ambitious plans to build a portfolio valued in excess of £1 billion. The joint venture (JV) will target both
With Draft List for 2023 Revaluation Due out next week , Ratings experts at Colliers say this issue can no longer be brushed under the carpet “If the Government is serious about kickstarting the economy, it can no longer afford to brush business rates under the carpet.” says John Webber,
Following success at both MIPIM and the UK’s Real Estate Investment & Infrastructure Forum (UKREiiF) earlier this year, the private sector joined Invest Newcastle at an event in the city to find out more about opportunities for 2023 and discuss how they can be part of a North East delegation.
Steep inflation always causes a major challenge for businesses in all kinds of sectors. In the construction industry, it leads to increases in prices for things like building materials and machinery hire, and it can result in projects being delayed and profit margins being reduced. In recent times, inflation has
Less than four weeks after CCL Facades was established within the Caddick Construction Group following the demise of Speedclad Ltd, the management team is announcing a £14.3 million business pipeline. Almost a third of that has already been confirmed through the securing of a significant seven-figure contract at One City
Stamp duty savings available : Outdoor space, eco-friendly features and energy efficiency are the top three most desirable attributes in a new home according to a recent study, and Barratt David Wilson Homes’ Kingsbrook development offers all three in abundance.* With the recent stamp duty cuts, first time buyers can
Hanson UK will acquire the Mick George Group, a market-leading construction and demolition waste (CDW) recycler in East Anglia and East Midlands, subject to relevant competition authority approval. The Mick George Group, which has an annual revenue of around £220 million, specialises in bulk excavation and earthmoving services, demolition, environmentally sensitive waste removal and waste management services, as well as aggregates and concrete supply. The company operates four recycling facilities, eight waste transfer stations, 11 aggregates quarries and 10 ready-mixed concrete plants. The acquisition will significantly strengthen Hanson’s circular materials offering while complementing its existing aggregates and ready-mixed concrete businesses. It adds a considerable recycling platform to Hanson’s portfolio, supporting the development of innovative technologies for processing waste and upgrading it for use in the construction cycle as a valuable material. Hanson UK CEO Simon Willis said: “The acquisition of the Mick George Group is a strong fit for us and another significant step towards our target to offer circular alternatives for half of our concrete products by 2030. “Promoting circularity and consequently recycling, reusing, and thereby reducing the use of primary raw materials, is crucial to achieving net zero. “I warmly welcome the 1,000 Mick George employees to Hanson and look forward to further developing the business together.” The acquisition is expected to be completed in the second quarter of 2023. Building, Design and Construction Magazine | The Choice of Industry Professionals
Modular housing firm ilke Homes has raised a record-breaking £100 million from new and existing shareholders following successive years of triple-digit growth. The round is being led by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), a leading global investment manager with approximately $46 billion of assets under management. Existing investors TDR Capital and Sun Capital also subscribed to ilke Homes’ latest fundraising round, which was arranged by investment bank Citigroup and acts as a rare example of a company increasing its valuation as global stocks remain under pressure from the continued macroeconomic and geopolitical uncertainty. The new funding will be transformational for ilke Homes. It will help the company to significantly scale-up its operations and open a new manufacturing facility that, once operational, will increase the company’s output capacity to 4,000 homes a year, creating over 1,000 new jobs in the UK. “We are excited about our investment in ilke Homes. We see ilke Homes as the UK market leader in the manufacturing of modular housing and believe the company is uniquely positioned to increase the availability of high quality affordable housing in the UK while accelerating the transition to net zero,” said Rahul Ahuja, Co-head of European Credit at Fortress Investment Group. The investment will also allow the company to invest heavily in automating more of its manufacturing processes to further drive productivity. This will in turn enable ilke to secure more sites and expand its ‘package deal’ strategy, which offers full development service of land, infrastructure and homes in a rapidly growing market. The company, which has seen revenue grow by over 150 percent year-on-year, is already working with some of the UK’s biggest developers and investors, including global asset manager Man Group, FTSE 250-listed housebuilder Vistry Group, and housing association Places for People. Despite being founded just five years ago, ilke Homes is now delivering over 1,000 homes a year and has secured a pipeline of over 4,000 homes, putting it on par with some of the UK’s biggest housebuilders. Building, Design and Construction Magazine | The Choice of Industry Professionals
The EU’s pioneering role in climate protection matters is not without its disadvantages, with its energy supply hugely dependent on gas. The Ukraine War has resulted in sharply rising gas and electricity prices and while a way out of the crisis is currently being discussed on the political stage, things remain unclear for the industry. A wave of insolvencies currently looms, triggered by rising costs. What industrial operations can expect and how second-hand machines can help. The EU’s plan of action was actually set: climate neutrality was to be reached in the Member States by 2050. Greenhouse gases were to be reduced, “green jobs” generated and a portion contributed to slowing down the rise of global surface temperatures. One of the key aspects is the switch to renewable energy sources: instead of from coal and gas, energy needs to be obtained from solar energy, wind and hydropower. But the energy transformation in Europe is a long way off from how it could be. Citizens are protesting against wind turbines, restructuring work is being decelerated through lengthy approval processes, and there is a shortage of professional workers and construction materials for actual implementation. An abrupt halt to the energy transformation At the start of 2022, the climate targets were hit with another obstacle. The war in Ukraine starts in February, bringing with it a whole slew of consequences. Supply chains collapsed, raw materials were scarce and prices shot up. The supply gap, still unable to be closed using sustainable energies, is now becoming glaringly obvious thanks to the stoppage in supplies of gas from Russia. Gas has had to be imported from alternative regions, resulting in a huge price increase. And as the electricity price is linked to that of gas, rising costs have been seen here too. But the production facilities of many businesses depend on electricity, gas, coal and oil and the energy transformation, actually intended to act as a safeguard, is now proving to be the problem. Businesses on the back burner Calls for a way out of the crisis are loud and clear. Governments are attempting to provide relief through price curbs, cost dampening, direct payments to the population and term extensions for energy producers from the fields of nuclear power or coal. After all, high energy costs are putting many companies at risk and the insolvency wave already anticipated due to the coronavirus pandemic now threatens to become a reality. Whether for drying processes, annealing and burning kilns or other production processes – many companies are dependent on gas and would have to raise their prices substantially to be able to manage the added costs. But price increases scare potential customers away. As a result, many companies are no longer able to compete. According to a VDMA survey, 90% of companies are having problems with their energy supply and over half expect the situation to get worse. Businesses are currently trying to save gas and electricity without having to make too many concessions in production – but potential for savings is limited. With premium and modern second-hand machines, industrial auction house Surplex offers an affordable solution in the crisis. (© Surplex) Second-hand machines as an alternative in the crisis A stagflation caused by supply chain interruptions and high energy costs means that many companies are facing the acute risk of insolvency. In addition, Europe is unattractive as an industrial location, as energy-intensive businesses in particular have little incentive to base their production facilities here. Many companies are confronted with rising pressure to restructure their operations. Production lines need to be adapted and made more effective and energy-efficient with new machines. But as with producing businesses, machine manufacturers are also being affected by the current crisis, with prices and waiting times for new machines skyrocketing. For many companies, buying a new machine as a modernisation solution is therefore not an option. In times of crisis more than anything, it is worth taking a look at the second-hand machine market. Many businesses currently want to free up their budget by selling machines they no longer need. The offer on auction platforms such as Surplex.com is on the rise and even modern, well-kept machines from various industrial branches such as metal, wood or construction can be bought for an affordable price. From settlement to dispatch and payment, buyers there are supported by experienced experts at every stage of their machine purchase, meaning they can find the best offer for their business. Despite the difficult situation in machine manufacturing, companies are therefore still able to take a further step to combat the energy crisis and start the new year off in a strong position.
CITB ’s Chief Executive, Tim Balcon said: “Construction employers are facing rising energy bills and materials costs and they need confidence in the future pipeline of work and support to train through challenging market conditions. “We will do everything we can to support the construction industry so companies can continue to have the confidence to invest in skills. “CITB has simplified the process for SMEs and sole traders to take on an apprentice and our New Entrant Employer Support team has placed 200 apprentices in the north of England alone since September. This scheme is being rolled out nationwide from January to provide employers the training support they need in this tough environment. “We also look forward to working with the newly appointed Adviser on Skills Reform, Sir Michael Barber in his review to improve prospects for school leavers.” Building, Design & Construction Magazine | The Choice of Industry Professionals Building Design & Construction magazine is constantly at the forefront of this fast-moving and dynamic industry. With sound journalism and up-to-date news and reaction to the stories that are affecting your industry today, BDC magazine keeps you one step ahead. For nearly 20 years, BDC has been the go-to resource for business professionals in the industry. With its contemporary design, a news section packed with current events, interviews with the trade’s top professionals, and in-depth case studies on leading businesses, the magazine puts you in touch with the developments of your industry. It’s our business to help your business.
UK property developer Godwin Developments today announces the launch of a nationwide build-to-rent (BTR) platform. Working as an equity investor in partnership alongside a leading institutional real estate partner, Godwin has ambitious plans to build a portfolio valued in excess of £1 billion. The joint venture (JV) will target both the single-family and multifamily BTR sectors in recognition of the substantial growth potential of the asset class. The strategy enables Godwin Developments to leverage its strong track record across acquisition, planning and delivery whilst rapidly scaling its operations in the sector. The JV partner has significant experience in investing in the living sectors across multiple jurisdictions, including in the UK. In the near-term, the JV partnership is aiming to develop its BTR proposition through the acquisition of both standing and forward funded stock as well as by unlocking new land opportunities. The Oxford-Cambridge Arc and the Home Counties will be key to expanding the delivery of single-family units for rent, and London, Bristol and Birmingham will be important target cities for the multifamily offering. The JV will focus on creating high-quality, professionally managed homes with strong ESG credentials that will appeal to residents of all ages and life stages – from singles and sharers, to couples, families, and downsizers. Research by the British Property Federation and Savills published last month estimated the BTR sector to be worth £170 billion by 2032, with completed BTR homes projected to increase fivefold over the next decade. Stephen Pratt, Director and Co-Founder at Godwin Developments said: “We are thrilled to announce the next step in our growth ambitions in the BTR sector. BTR has proven itself to be a highly defensive asset class and is rapidly establishing itself as a real alternative to home ownership, delivering an opportunity to alleviate the shortage of housing across the country. This launch is truly transformational for our business, and we look forward to growing our portfolio nationwide, adding value for residents, housebuilders, landowners, local authorities and other stakeholders using our expertise and unique ability to deliver, market and manage schemes across the development lifecycle.” Godwin Developments was advised by Alantra (corporate finance), Gateley (legal) and KPMG (tax). Building, Design & Construction Magazine | The Choice of Industry Professionals
With Draft List for 2023 Revaluation Due out next week , Ratings experts at Colliers say this issue can no longer be brushed under the carpet “If the Government is serious about kickstarting the economy, it can no longer afford to brush business rates under the carpet.” says John Webber, Head of Business Rates at Colliers, “ And the new Chancellor must address this question in the Budget on Thursday- particularly with the new 2023 Revaluation list being announced next week”*. The current system which provides £26 billion (net) for local authority funding is not fit for purpose and with a new Revaluation in April 2023 fast approaching, decisions need to be taken now if businesses are to be encouraged to expand and invest rather than close or downsize their bricks and mortar estate. Colliers believes the Chancellor should address the following points on business rates in his forthcoming Budget: 89% of Colliers’ snapshot survey of retail clients and contacts ( taken in April this year) said yes to a new tax- provided it took the pressure off business rates in the High Street. John Webber added, “Jeremy Hunt has long admitted that the business rates system is in need of reform and now is his chance to do something about it. The current system is over-complicated, opaque and basically too high. We need a well-managed and transparent business rates system, and we need it now. The government obviously has a multi-billion pound deficit to fill in its Budget- but continuing to strangle businesses and destroy the high street certainly won’t be the solution to the problem.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Following success at both MIPIM and the UK’s Real Estate Investment & Infrastructure Forum (UKREiiF) earlier this year, the private sector joined Invest Newcastle at an event in the city to find out more about opportunities for 2023 and discuss how they can be part of a North East delegation. The delegations are a collaborative effort to attract crucial investment for the region so that it can continue to build a healthy pipeline and expand on the social and economic ambitions of the wider North East. Taking place on 14-17 March in Cannes, France, MIPIM brings together key players and influencers from across the global real estate sector with the goal of creating more sustainable, liveable, and prosperous places for all. Newcastle will join other UK cities and regions including Manchester, Liverpool, London, Cardiff, Belfast, West Midlands, West of England, and Central South UK. Connecting the entire supply chain and offering unrivalled access to worldwide development projects and sources of capital, the North East has the unique opportunity to leverage profile and showcase key investment and development opportunities to a global audience at MIPIM. Following this year’s inaugural UKREiiF in Leeds, Invest Newcastle is also preparing for an even bigger presence in 2023. UKREiiF is a national platform to accelerate the Levelling Up agenda whilst unlocking inclusive and sustainable investment across all sectors of the real estate industry. With a pavilion secured, the team will be able to host a programme of thought leadership events on-stand, showcasing the region’s expertise at a national level. As well as delivering all aspects of the region’s presence at MIPIM and UKREiiF, Invest Newcastle also works closely with partners to help them raise their profile, providing opportunities and support throughout the whole process. Jennifer Hartley, Director of Invest Newcastle, said: “These two conferences are incredibly important for our region. They are an opportunity for us to profile Newcastle and the wider North East and collaborate on a national and global scale. Not only are we able to keep pace with global trends but also showcase the incredibly exciting innovation happening right here on our doorstep, working with our sponsors, thought leaders, other UK cities and government. “It has never been so important to put the region in front of investors, influencers, and decision makers and secure investment for our region. We really are all stronger together and this is about the whole region and our combined ambition. “These events wouldn’t be possible without the support of our partners and sponsors who come together to demonstrate how collaborative the region is across public sector, private sector, and academia. I look forward to welcoming more organisations to our delegation in the coming months who will support us to promote our city to the world.” If you are interested in finding out more information on joining the delegation and sponsorship opportunities email invest@ngi.org.uk. Building, Design & Construction Magazine | The Choice of Industry Professionals
Steep inflation always causes a major challenge for businesses in all kinds of sectors. In the construction industry, it leads to increases in prices for things like building materials and machinery hire, and it can result in projects being delayed and profit margins being reduced. In recent times, inflation has soared and significantly impacted the UK’s construction industry. Seeing as inflation is continuing to rise, construction companies and those involved in the supply chain could be facing problems for some time yet. Material Costs Have Risen Significantly Covid-19 lockdowns, Brexit, the war in Ukraine, and other factors, are all affecting the steep rise in inflation that the construction industry and other industries have recently experienced. In 2022, according to the latest statistics from the UK’s Office for National Statistics, the construction material price index rose by an incredible 25.2% year-on-year in April 2022. That is the eleventh consecutive year-on-year increase since June 2021. In the first four months of 2022 alone, ready-mix concrete rose by 12.5%, bricks, flagstones, blocks, and tiles rose by 18.4%, and steel bars for concrete reinforcement rose by a staggering 51.2%. Therefore, it should already be clear just how much inflation is affecting companies in the construction industry. Indeed, according to a 2022 survey conducted by the UK’s Federation of Master Builders, 98% of builders in the country saw material costs increase in the first quarter of 2022, and 83% of those builders had no option but to pass on those additional costs to their clients. The survey also showed that 73% of UK builders ended up delaying projects due to a lack of materials. Subcontractors Are Feeling the Pinch While most companies that work directly and indirectly within the construction industry are feeling the impact of inflation, some firms are thriving due to the increase in inflation. For example, there has been a great effort to keep the supply chain moving, which means the top-rated movers for long distances have seen their business increase. But others, like subcontractors, are really feeling the pinch. In particular, many subcontractors who entered fixed-price lump sum contracts before 2022 or in early 2022 are discovering that their existing construction contracts are not economically viable anymore. With a lump sum contract, a single price for all construction work is agreed upon before the works begin, which means many construction companies simply cannot deliver the projects they were contracted to carry out. Obviously, the ramifications of that are huge, both for the construction firms and for their customers. Many subcontractors who are still in operation are now increasing their loans in order to fulfil client projects, while other subcontractors are falling by the wayside. Unless operators further up the supply chain can be more flexible in their prices, subcontractors and others will continue to be massively affected. Some of the UK’s Biggest Construction Projects Have Felt the Impact of Rising Inflation It is not only subcontractors and small companies that are being affected. Some of the UK’s biggest construction projects have also felt the impact of inflation. The rise in the cost of key building materials in addition to things like geopolitical risks has seen all of the UK’s major construction projects go over budget and past their due dates for completion, including the HS2 railway, Crossrail, Hinkley Point C, and the Battersea Power Station redevelopment. While those major projects are now starting to get back on track, unless inflation begins to come under more control and supply chains and labour shortages are sorted out soon, the construction industry as a whole in the UK, and throughout the world, is likely to be in turmoil for some time yet.
Less than four weeks after CCL Facades was established within the Caddick Construction Group following the demise of Speedclad Ltd, the management team is announcing a £14.3 million business pipeline. Almost a third of that has already been confirmed through the securing of a significant seven-figure contract at One City Park, for the design, supply, and installation of the external façade, including the glazing and rain-screen cladding at the Bradford city centre scheme. The company’s recent launch to market has also seen CCL Facades appointed as the preferred bidder on a number of high-profile remediation schemes in Leeds city centre under the BSF Programme, which will be announced shortly. These successes come only a matter of weeks since the initial 10-strong management and design team were transferred from Speedclad to the newly formed CCL Facades, led by Managing Director Tony Blake. The senior team had previously worked together on high-profile cladding and glazing projects such as seven phases of grade A offices at Wellington Place in Leeds,The Base Building in Manchesterand award-nominated La Tour Hotel in Milton Keynes. Managing Director Tony Blake said: “It has been a turbulent year for the team, but we are firmly focused on the future, which is already looking incredibly exciting even after such a short space of time as part of the Caddick Construction Group. “We really do feel we have a winning combination. We’re able to offer clients the financial strength and stability with the Caddick Construction Group behind us, but with all the expertise firmly embedded within an independent Company, CCL Facades. It is the best of both worlds for clients, strengthened further when you add our own certified products such as Speedpanel, A2 Rated Spandrel panels into the equation.” As well as securing the contracts and preferred bidder status, CCL Facades is negotiating to act as specialist façade contractor to provide design, supply, and installation of Rainscreen Systems and curtain walling facades fornew buildings and refurbishment projects. The company is now also set up to offer services, acting as principal or specialist contractor, for the replacement of cladding and other facades remediation works. Tony added: “The façade sector market is a difficult one to work within because of the huge obligations that are placed on specialists in terms of delivery, insurance, supply chain, compliance, etc. We now have an offering that not only meets all those obligations but it’s also managed by a team with many decades of experience between them. We believe we are well placed to meet the needs of our clients and are very excited about the future.” Paul Dodsworth, Caddick Construction Group Managing Director, said: “We are confident that the unique offering of CCL Facades and Speedpanel, supported by the financial strength of Caddick Construction, will allow the business to thrive under the stewardship of Tony and the team. In today’s turbulent world having confidence in a financially strong façade contractor will provide real peace of mind in a competitive market.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Stamp duty savings available : Outdoor space, eco-friendly features and energy efficiency are the top three most desirable attributes in a new home according to a recent study, and Barratt David Wilson Homes’ Kingsbrook development offers all three in abundance.* With the recent stamp duty cuts, first time buyers can save up to £6,250 on homes worth £500,000 which will apply to homes at the brand new phase launching at the Orchard Green village in Kingsbrook. The new phase will be launching on Saturday 8th October and will include 246 one, two, three and four bedroom homes in total, of which 57 will be affordable. The first release will include three and four bedroom homes with prices starting from £425,000, allowing first time buyers and second steppers alike to take advantage of the new stamp duty cuts. The housebuilder’s award-winning partnership with the RSPB ensures Kingsbrook is a development where wildlife can thrive, with over 60% of the development dedicated to green infrastructure including ecological enhancement in the form of: wildflower meadows, ponds, woodlands, orchards, a 250 acre nature reserve, parks and allotments. Incorporated throughout the development are features such as bird boxes; hedgehog homes and highways, so that wildlife can travel safely between gardens; bee hotels and dead wood features, to provide a home for insects and solitary bees; and composting facilities. As a result of these wildlife-friendly measures, a number of key bird species have increased including the Red-Listed house sparrows which saw a rise in breeding pairs from two to 147, whilst bee numbers have more than doubled. Marc Woolfe, Head of Sales at Barratt David Wilson North Thames, commented: “Sustainability is becoming increasingly important to the next generation of homebuyers, and is something we have always prioritised. We’re very proud of our partnership with the RSPB at Kingsbrook and the important strides it has made to not only protect the existing ecology but enhance it – and it’s something that has proven to be an important factor in our residents choosing to live here. The next generation of homebuyers are definitely more concerned with the impact of their home on the environment, and Kingsbrook is a critical blueprint to demonstrate how building homes and protecting wildlife can go hand in hand.” “For this reason, alongside the drive for energy efficient homes as the energy crisis continues, we expect our new phase at the Orchard Green village to be very popular – we’ve already had many local first time buyers enquiring about how much they can save following stamp duty cuts. We want to encourage anyone interested to register their interest online, or come down and speak to one of our fantastic sales advisors who can advise on the many schemes we have to support our customers – like Deposit Unlock and Part Exchange.” All homes at Kingsbrook are built with sustainability in mind and energy efficiency at the forefront of the design, achieving an EPC A or B rating – allowing homeowners to save up to £1,410 thanks to the range of the highest efficiency technology incorporated throughout, including: A-rated condensing boilers; low heat-loss hot water cylinders which ensure water stays hotter for longer; and water savings features and fittings helping to save up to 25 litres of water a day per person. The new phase of homes at the Orchard Green village in Kingsbrook will be launching on Saturday 8th October with prices starting from £425,000. To find out more about Barratt David Wilson North Thames or the new homes at Kingsbrook please visit www.barratthomes.co.uk / www.dwh.co.uk or call 0333 355 8500 / 0333 355 8501 Building, Design & Construction Magazine | The Choice of Industry Professionals
