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Huge CO2 emissions reduction opportunity with commercial buildings retrofit finance

Huge CO2 emissions reduction opportunity with commercial buildings retrofit finance

Retrofit for Purpose – a new insight study from Siemens Financial Services (SFS) – assesses the volume of carbon emissions buildings owners could save through energy-efficiency-as-a-service schemes. Specifically, the paper estimates emissions for the world’s four highest-volume emitter geographies – USA (71.35 MtCO2e), China (71.45), Europe (52.86), and India (14.91).

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UTB supports £23m luxury apartment development by Stephens + Stephens

UTB supports £23m luxury apartment development by Stephens + Stephens

United Trust Bank (UTB) is supporting award winning developers Stephens + Stephens’ development of 32 luxury apartments in the sought after coastal town of Newquay in Cornwall. Stephens + Stephens was founded by Paul and Helen Stephens in 2008 and combines Paul’s 30 years of experience in construction with Helen’s

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London Councils warns of £400m shortfall as MPs vote on funding

London Councils warns of £400m shortfall as MPs vote on funding

Boroughs in the capital warn they face a funding shortfall of at least £400m in 2024-25, as MPs prepare to vote on the local government finance settlement on Wednesday [1]. The cross-party London Councils group says that despite a 5.5% real-terms increase in their core spending power in the settlement,

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£150BN OF INVESTMENT OPPORTUNITIES IN THE UK SET TO BE DISCUSSED AS POLITICAL, REAL ESTATE, AND INVESTMENT LEADERS CONFIRMED TO SPEAK AT INDUSTRY LEADING EVENT

£150bn of investment opportunities in the UK set to be discussed as political, real estate, and investment leaders confirmed to speak at industry leading event

Around £150 billion worth of investment opportunities are set to be showcased and discussed at UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) this coming May as towns, cities, and counties across the UK look to meet investors and developers to bring forward sustainable and inclusive growth within their

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BDC 317 : Jun 2024

Business : Finance & Investment News

Huge CO2 emissions reduction opportunity with commercial buildings retrofit finance

Huge CO2 emissions reduction opportunity with commercial buildings retrofit finance

Retrofit for Purpose – a new insight study from Siemens Financial Services (SFS) – assesses the volume of carbon emissions buildings owners could save through energy-efficiency-as-a-service schemes. Specifically, the paper estimates emissions for the world’s four highest-volume emitter geographies – USA (71.35 MtCO2e), China (71.45), Europe (52.86), and India (14.91). Given these four areas are responsible for the majority of global CO2 emissions,[i] this equates to more than 8% of global annual CO2 emissions reduction targets, as defined by the International Panel on Climate Change (IPCC). Renovating existing building stock to a zero-carbon-ready level is a key priority for achieving the sector’s decarbonization targets. However, rising inflation, hardening interest rates, increased fuel costs, and supply chain disruption are all factors negatively impacting adoption rates. The report therefore evidences the enabling role of flexible private sector financing arrangements to maintain crucial investment momentum, drawing on many real-world examples of implementation from around the globe.   Comprehensive retrofits of commercial buildings – including offices, hospitals, factories, warehouses, and educational establishments – can reduce their energy use by up to 40 percent but are not happening anywhere near the scale needed to meet climate goals, notes the report. This is likely due to the considerable investment required to retrofit new technologies. That’s where arrangements known as energy-efficiency-as-a-service are helping private and public sector organizations to retrofit the existing non-residential building stock in an affordable and cash-flow friendly way. These innovative financing schemes can secure operational cost reductions without putting pressure on capital resources, avoid putting capital at risk, and ensure expected savings are realized. At the technology component level, financing tools are available to help vendors and distributors add value with cash flow capabilities for their buyers. For larger installations or systems, smart financing arrangements can be flexed and tailored to align costs with the rate of benefit gained from the energy-efficient technology. “With climate targets looming large, it’s important we continue support and enable the decarbonization of buildings. Not only are they a serious contributor to global greenhouse gas emissions, if left unchecked these emissions are projected to double by 2050,” says Toby Horne, Siemens Infrastructure Financing Partner, Siemens Financial Services, UK. “Specialist finance solutions are intelligently designed to factor in savings, making them budget-friendly enablers of the green transition.” Methodology Data from national/regional statistical institutes on annual energy consumption by non-residential buildings built prior to 2010 was used to model CO2 emissions of buildings likely to benefit from deep retrofit for energy-efficiency. This was then reduced by highest likely implementation levels of such deep retrofit. Likely energy savings from deep retrofit were calculated using the lowest end of official average ranges. The resulting figures provide a highly conservative annual estimate of the energy savings achievable through deep retrofit, which can be financed through energy-efficiency-as-a-service financing techniques. Download a copy of the Whitepaper: www.siemens.com/smart-buildings-retrofit Visit for further information about SFS: www.siemens.com/finance Follow us on LinkedIn: www.linkedin.com/showcase/siemens-financial-services [i] https://www.visualcapitalist.com/carbon-emissions-by-country-2022/ Building, Design & Construction Magazine | The Choice of Industry Professionals

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UTB supports £23m luxury apartment development by Stephens + Stephens

UTB supports £23m luxury apartment development by Stephens + Stephens

United Trust Bank (UTB) is supporting award winning developers Stephens + Stephens’ development of 32 luxury apartments in the sought after coastal town of Newquay in Cornwall. Stephens + Stephens was founded by Paul and Helen Stephens in 2008 and combines Paul’s 30 years of experience in construction with Helen’s flair for design. Helen is the Founder and Creative Director of award-winning agency Absolute. Stephens + Stephens create desirable design-led properties in stunning locations within the Cornish landscape and describe themselves as offering a ‘perfect combination of skills, vision and experience for a whole new-wave style way of designing Cornwall-located buildings, interiors and surrounding spaces with architectural and style-driven longevity’. The scheme, known as Cliff Edge, is the second phase of the redevelopment of a former hotel site and comprises a new apartment building set over basement, ground and four upper floors. The first phase was completed last year and achieved a strong level of sales from purchasers looking to capitalise on the demand for high quality holiday accommodation in the area and those wishing to live there and enjoy the spectacular Cornish coastline all year round. UTB is providing £15m of funding towards the completion of Phase 2 of Cliff Edge, which offers 32 apartments ranging in price from £250,000 to well over £1m with the majority enjoying spectacular sea views. Buyers can also choose to have the interior of their home designed and furnished by Absolute which offers a turnkey designer interiors service. Paul Stephens of Stephens + Stephens commented: “We are delighted to be working with United Trust Bank on this prestigious development in Cornwall. This is our first project with the Bank, and we have found the whole team approachable, engaged and committed to working in collaboration with us to deliver this project. We are looking forward to the months ahead and working together on future schemes”. Orla Costello, Senior Director – Property Development – United Trust Bank said: “We love working with people who are passionate about property and Paul and Helen are exactly that. They have completed many fabulous developments across Cornwall and picked up several awards for exceptional design along the way. This is the first time UTB has supported a Stephens + Stephens development and I am confident that it will be another success to add to their outstanding track record.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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OPEN LETTER URGES FIRST MINISTER TO THINK AGAIN ABOUT HOUSING AND PLANNING BUDGET CUTS

Open letter urges First Minister to think again about housing and planning budget cuts

Worst possible decision at worst possible time An open letter in today’s Daily Record is urging the First Minister to think again about the cuts being proposed to the 2024-25 budgets for housing and planning. The call comes the day before the Scottish Parliament votes on the draft Scottish Budget for the year ahead and follows the findings of independent research showing that 693,000 Scottish households are facing some form of housing need.  It also comes in the context of three Local Authorities having already declared housing emergencies and others considering similar action. The letter has been signed by housing organisations Homes for Scotland (HFS), the Scottish Federation of Housing Associations (SFHA) and the Chartered Institute for Housing together with the Joseph Rowntree Foundation. SFHA Chief Executive Sally Thomas said: “Parliament will tomorrow decide whether to approve the Scottish Government’s budget – a budget that proposes to slash the money available to build social homes by more than a quarter. “Almost one in twenty people in Scotland are on a waiting list for a social home, 30,000 are homeless and nearly 10,000 children are growing up in temporary accommodation.  We just aren’t building the homes that Scotland needs. “The budget proposals represent the worst possible decision at the worst possible time and are a hammer-blow to the First Minister’s priority of reducing poverty.” HFS Chief Executive Jane Wood said: “At a time when 693,000 Scottish households are facing some form of housing need, all the data shows that the chronic undersupply of housing in Scotland is intensifying.  This not only threatens the country’s social wellbeing by perpetuating housing inequality but also risks its economic success and the transition to net zero. “As we consistently highlight, private and affordable housing delivery are interconnected.  With 30 per cent of affordable housing generated by the private sector through developer contributions, the more homes for sale that can be built, the more affordable homes will be delivered as a result.  Given the planning system is already on its knees, the 43 per cent funding reduction being proposed will serve only to increase delay and cost, and do nothing to encourage crucial private sector investment. “We hope that the First Minister will think again about his government’s proposals and that all MSPs will carefully consider the housing needs of their constituents as they vote tomorrow.” CIH Scotland National Director Callum Chomczuk said: “Scotland is in the midst of a housing crisis, with three local authorities already declaring housing emergencies and up to a dozen more on the brink of doing so. “We all know what the problem is, a failure to build enough affordable homes, and yet the most recent budget exacerbates the crisis by taking almost £200m out of the housing supply budget. But it is not too late to make changes. “Even at this late stage, the Scottish Government can restore the budget and work with the sector on developing a response to deal with the housing emergency.  We hope they take the chance to make addressing Scotland’s housing crisis a political priority.” Chris Birt, Associate Director for Scotland at the Joseph Rowntree Foundation, said: “There is still time for the First Minister to do the right thing and reverse this massive cut to the affordable housing supply budget.  To fail to do so would be baffling in the face of spiralling homelessness and use of temporary accommodation, never mind the Scottish Government’s stated commitment to poverty reduction.  Low-income tenants will face increasing rents and insecurity as the supply of affordable housing stalls.  As a result of this cut to housing, this budget risks being a poverty causing budget rather than a poverty solving budget, and in the face of looming child poverty reduction targets is difficult to understand and even harder to defend.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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RAILPEN APPOINTS CONSTRUCTION PARTNERS ON FIRST TWO CAMBRIDGE DEVELOPMENTS

Railpen appoints construction partners  on first two Cambridge developments 

Railpen, manager of around £34 billion of assets on behalf of the railways pension schemes, has named Skanska and Morgan Sindall as main contractors for the first two of its major developments in Cambridge, Botanic Place, a 540,000 sq ft sustainable office scheme, and Devonshire Gardens, a 120,000 sq ft mixed-use development.  Both projects are being developed by Socius on behalf of Railpen. Skanska, one of the UK’s leading contractors, has secured the £200 million contract to build Botanic Place, which is set to be the most sustainable speculative office scheme outside of London.  Architect AHMM has designed the buildings to achieve BREEAM Outstanding, WELL and Wired Scored ‘Platinum’ ratings.  The workspaces will prioritise energy efficiency to stay warm in the winter and cool in the summer while using 70% less energy than traditional office buildings, and will be powered using renewable energy sources. Inspired by the nearby Cambridge University Botanic Garden, which can be viewed from the offices, the buildings’ quality and specification will be market defining.  The project will also involve preserving the historic public house, The Flying Pig, which is located on the development site, and the creation of 15,000 sq ft of internal amenities, events, and F&B space, alongside 40,000 sq ft of terraces on multiple levels for both private and communal uses. Elsewhere in Cambridge, Railpen has also appointed Morgan Sindall, the British construction and regeneration group, to construct Devonshire Gardens, in a £77 million contract. Devonshire Gardens will comprise a new community connected by a landscaped park, supporting Railpen’s vision to create a majority car-free neighbourhood. Located in the heart of Mill Road, Morgan Sindall will deliver up to 150,000 sq ft of commercial space, 70 apartments, 8,500 sq ft of F&B space, and 1.55 acres of public open spaces. Richard Van Lente, Senior Asset and Development Manager at Railpen, said: “The appointment of both Skanska and Morgan Sindall marks a significant moment within our Cambridge portfolio as we work to deliver best-in-class assets and generate strong long-term returns for our members. We look forward to witnessing these projects come to fruition and continuing our long-lasting commitment to Cambridge with support from the council and key local stakeholders.” Doug Higgins, Development Director at Socius, also commented: “Botanic Place and Devonshire Gardens will be fantastic additions to the community of Cambridge, with Skanska and Morgan Sindall driving forward our shared vision with Railpen to deliver inspiring, sustainable and valuable assets for the city. With their expertise and proficiency, we are on track to provide a new benchmark for other developers and investors to follow, paving the way for an enhanced future within Cambridge and the wider area.” Morgan Sindall is set to begin works on Devonshire Gardens in April, and Skanska is due to start on-site at Botanic Place in July, with estimated completion dates of April 2026 and March 2027 respectively. Building, Design & Construction Magazine | The Choice of Industry Professionals

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London Councils warns of £400m shortfall as MPs vote on funding

London Councils warns of £400m shortfall as MPs vote on funding

Boroughs in the capital warn they face a funding shortfall of at least £400m in 2024-25, as MPs prepare to vote on the local government finance settlement on Wednesday [1]. The cross-party London Councils group says that despite a 5.5% real-terms increase in their core spending power in the settlement, boroughs will continue to grapple with an “enormous” funding gap due to service pressures and costs. The £400m funding shortfall is roughly the same amount as London boroughs collectively spend on homelessness in a single year. London Councils highlights the following: London Councils says the spate of recent warnings of financial failure across local government is the result of many years of underfunding – with boroughs in the capital badly affected. The increased frequency of Section 114 notices in the last year should not be taken lightly and more are likely if the sector does not receive further funding support [2]. Last week the LUHC committee’s report on financial distress in local authorities urged ministers to address systemic underfunding in local government and tackle the £4bn gap in council finances nationally. Research from the Institute for Fiscal Studies think-tank found an estimated 17% gap between funding need and the actual levels of local government funding in London. This was by far the largest gap of any region in England. Outer London boroughs face a particularly tough outlook as they are amongst the lowest funded per capita in the country, with growing populations who are becoming more deprived. London Councils calculates the 2024-25 finance settlement will leave boroughs’ overall resources 15% lower in real terms than in 2010. Demand for services has risen substantially, as the capital’s population has grown by 800,000 during that period. Boroughs’ spending power per Londoner has decreased by around 30% in real terms since 2010. Cllr Claire Holland, Deputy Chair of London Councils, said: “Boroughs will continue to face a bleak financial outlook for the foreseeable future. “The increase in funding set out in the government’s finance settlement will not be enough to address the enormous funding gap we are grappling with. Massive pressures on local services, skyrocketing costs, and years of inadequate funding have left town hall finances teetering on a cliff edge. “It is in no one’s interests for a council to find itself in a Section 114 situation. Londoners want stability for their local services. We will continue to urge ministers to increase funding support and to work with us in making the local government finance system fairer and more sustainable.”    London Councils is calling for the upcoming Spring Budget on 6 March to address the financial pressures facing boroughs. London Councils’ priorities for the government include: More information can be found in London Councils’ consultation response to the local government finance settlement, which is available here. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Logicor acquires 500,000 sq ft prime logistics site in the East Midlands

Logicor acquires 500,000 sq ft prime logistics site in the East Midlands

Logicor, a leading owner, manager and developer of European logistics real estate, has expanded its footprint in the UK by agreeing to forward fund a 500,000 sq ft distribution warehouse on a prime logistics site in Derby. Planning permission has already been secured for the warehouse on Infinity Park Derby.    Located in the logistics hotspot of the East Midlands, the site benefits from direct access to the national motorway network (A50, M1, and M6) and its proximity to East Midlands Airport.   Throughout the construction phase, and when the building is complete, there is the potential to create over 1300 jobs.   The development will be sustainably built and will target EPC A and BREEAM Excellent certification. In addition to solar panels, LED lighting and air source heat pumps, there are plans for extensive landscaping with 112 trees, wetland habitats, bird boxes and bug hotels to improve the levels of local biodiversity at the site.   Employees on the site will have access to nature trails, cycleways and footpaths to promote sustainable travel.   Construction is due to start early 2024.  Charlie Howard, Managing Director, UK at Logicor, said:   “Infinity Park Derby fits perfectly with our strategy of further growing our footprint in areas where we know demand for quality real estate continues to outstrip supply.  “We are looking forward to bringing to the market a highly sustainable, well-designed asset that is in a prime location for the UK.”  Wilson Bowden and Peveril Securities is the development partner and Bowmer and Kirkland is the construction partner for the project. Logicor were advised by Cushman & Wakefield, and the developer were advised by Avison Young.  Building, Design & Construction Magazine | The Choice of Industry Professionals

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Milton Keynes’ Station House Opens Doors to 200 Residential Units Following £35m Loan from Secure Trust Bank

Milton Keynes’ Station House Opens Doors to 200 Residential Units Following £35m Loan from Secure Trust Bank

A former office building in the heart of Milton Keynes, that has been transformed into a new 200-unit residential development, has been refinanced following a £35m residential investment loan from Secure Trust Bank (STB) Real Estate Finance Located directly above Milton Keynes Central station, Station House is the result of a conversion of disused offices into 200 vibrant apartments across four floors. Developed by New York and Bahamas-based real estate specialist, Gold Wynn Group, the scheme is one of the latest property developments in an area predicted to see one of the highest long-term growth rates among UK cities outside London. Having topped the UK Competitive Index for 2023, the development will provide much needed housing at a time when demand is on the rise. The deal for the three-year residential investment loan, agreed at 59% loan to value (LTV), was led by Mike Feasey, Relationship Director at STB Real Estate Finance, alongside Matthew-Blaine Young, the bank’s Head of Origination. BBS Capital advised on and secured this facility for Gold Wynn, continuing its high level of activity in the refinancing space. Mike Feasey commented: “It was a pleasure to be able to deliver this transaction on behalf of Secure Trust Bank and showcase many of the bank’s strengths. Our hands on approach and team ethos, coupled with a strong working relationship with our professional partners, ensured we were able to deliver on a complex transaction in a relatively short period of time. The success of this deal shows what it truly means to be a relationship-led bank and I look forward to building on this success with Gold Wynn over the years to come.” Taking no longer than an hour to reach London from Milton Keynes Central station, the development is particularly ideal for commuters working, but not living, in the capital. Ben Friedland, President of Gold Wynn’s US & UK real estate divisions, said: “We’re delighted to have now opened the doors to Station House’s 200 stylish apartments. Milton Keynes is a thriving area on the rise and Station House is proof of this. As experts in property finance, the tailored approach provided by STB ensured that we were able to seal the deal against the clock, proving it to be one of the quickest refinances we have been involved in.” The bank’s longstanding relationship with BBS Capital, was crucial to completing the process within an allotted timeframe of three months, with it taking just six weeks from sanction to drawdown. Mark Geraghty, Director at BBS Capital said: “BBS Capital is pleased to have supported Gold Wynn on this key refinancing and build on its relationship with Secure Trust Bank. This was a notable transaction in the office-to-residential conversion space, demonstrating good liquidity in the marketplace for quality assets with robust business plans and credible sponsorship. The structured finance was arranged and executed over a short timeframe despite current market conditions, which is testament to all parties involved.” Matthew-Blaine Young added: “It was a pleasure to work alongside BBS Capital once again; this deal is the latest of several success stories we have achieved together. As a result, BBS Capital was confident of our ability to provide the necessary property investment finance and deliver on a significant deal associated with unique challenges.” Acting on behalf of the bank for this property finance loan was solicitors Shepherd & Wedderburn, while BNP Paribas was the appointed valuer for the deal. Both parties played a vital part in organising the deal, alongside Secure Trust Bank’s experienced Relationship Support Specialist, Julie Percy. Visit here to discover more about Secure Trust Bank Real Estate Finance. Building, Design & Construction Magazine | The Choice of Industry Professionals

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£150BN OF INVESTMENT OPPORTUNITIES IN THE UK SET TO BE DISCUSSED AS POLITICAL, REAL ESTATE, AND INVESTMENT LEADERS CONFIRMED TO SPEAK AT INDUSTRY LEADING EVENT

£150bn of investment opportunities in the UK set to be discussed as political, real estate, and investment leaders confirmed to speak at industry leading event

Around £150 billion worth of investment opportunities are set to be showcased and discussed at UKREiiF (The UK’s Real Estate Investment and Infrastructure Forum) this coming May as towns, cities, and counties across the UK look to meet investors and developers to bring forward sustainable and inclusive growth within their regions. Almost 12,000 domestic and international attendees will head to Leeds in May 2024 for a three-day event where UK cities and regions will highlight opportunities and ambitions across numerous sectors, including housing, advanced manufacturing, life sciences, technology, healthcare, energy, retail and high streets, infrastructure, leisure, and hospitality, industrial, and more. This week, numerous speakers have been confirmed, including senior figures from the public sector and government, including: In addition, the private sector is set to feature heavily, with the first confirmed speakers including: With over thirty stages, the event has been described at the Glastonbury of the real estate industry as bringing a mixture of content, activity, and fringe events together to create an inspiring and creative way to make connections, tackle challenges in the sector, and create investment opportunities to drive inclusive and sustainable prosperity across the UK. Event Background Launched in 2022, the event is held over three days and brings together the public and private sectors, with all of the UK’s cities and regions represented alongside the UK Government and the numerous governmental departments. Over 700 speakers will be involved across 30 stages, with speakers already confirmed including The Rest Is Politics stars Alastair Campbell and Rory Stewart, in addition to the Shadow Minister for Climate Change, Kerry McCarthy. Mayors from numerous devolved authorities have already announced they’ll be attending, including Mayor Tracy Brabin of West Yorkshire, Mayor Oliver Coppard of South Yorkshire, and Nik Johnson of Cambridgeshire and Peterborough. Having grown from 3,500 attendees in 2022 to 7,500 in 2023, the event in 2024 is set to attract over 12,000 to Leeds. In addition to 12,000 attendees, the event is set to attract a further 3,000 people to the city to enjoy the fringe events across the city, with £20 million set to be generated for the local Leeds community. The event generated £2.25 million in social impact in 2023 for the local economy. Facilitation and Investment The event has already been lauded across the UK by many cities and regions, with Torbay Council recently confirming a major £100m investment into the seaside destination, which is set to create jobs, homes, and revitalise the leisure offering in the region, all happening directly because of the event. In addition to this, there are several other schemes totalling over £500 million of investment known to be in the pipeline across other cities following direct facilitation and introductions at the event. During UKREiiF, international and domestic investors, developers, and occupiers will be invited to meet and greet UK cities and regions to understand their requirements and see if there are any natural collaborations and partnerships that can be brought forward. High Praise The sudden emergence of UKREiiF as Europe’s fastest-growing real estate and built environment event comes with much high praise from senior figures in the industry: President of international investors Amro Partners said: “UKREiiF tells me that the UK is open to business, and as an investor, that is a fantastic message. The event brings together government ministers and officials, people from Whitehall, local authorities, investors, and developers; it’s a phenomenal representation of the real estate sector.” Alan Denby, Director of Pride in Place at Torbay Council, added: “Being at UKREiiF has enabled Torbay to have discussions with investors, developers, and occupiers, and from these discussions we’ve announced the preferred development partner to work with us on four key development sites worth over £100m to the local community, and that investment is a direct result of being involved in UKREiiF.” Alastair Campbell, Former Director of Communications for No. 10 Downing Street, said: “UKREiiF brings together all the different parts of the equation that are needed to regenerate regions and the economy successfully. And it’s changing people’s views of the industry world.” Greg Ward, Principal Regeneration Office for Economic Development at North Northamptonshire Council: “I was unsure of the opportunities UKREiiF would bring, but I decided to attend, and our council was pleasantly surprised. There were a lot of learnings to have, but the dedicated investment and development facilitation sessions were excellent, in which we had five prospects come from this, which has led to follow-up meetings in North Northamptonshire.”  International Delegates Around 1,500 delegates are expected from overseas, including a trade delegation from Asia headed up by the Department for Business and Trade. European capital investors and developers will be in attendance, attracted by the strength of the UK’s market, especially in new and emerging sectors such as Agri-Tech, Life Sciences, Aerospace, EV and Data Centres. International cities and regions are also signed up, with those registering early including Illinois State, New York Economic Development Corporation, Choose Paris, Business Iceland, and the Municipality of Genoa, with many more set to announce their attendance as they look to share best practices amongst UK regions while sharing their own case studies and success stories. To find out more, visit www.ukreiif.com Building, Design & Construction Magazine | The Choice of Industry Professionals

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2023 Prologis Logistics Rent Index: Solid Global Rent Growth and New Leading Locations

2023 Prologis Logistics Rent Index: Solid Global Rent Growth and New Leading Locations

Introduced in 2015, the Prologis Logistics Rent Index examines trends in net effective market rental growth1 in key logistics real estate markets in North America, Europe, Asia and Latin America. Our proprietary methodology focuses on taking rents, net of concessions, for logistics facilities. This index combines the company’s local insights on market pricing dynamics with data from our global portfolio. Rental rates at the regional and global levels are weighted averages based on estimates of market revenue. Global logistics real estate rent growth totalled 6% in 2023, underscoring the resilience of logistics real estate fundamentals. Nearly all markets globally recorded positive real rent growth, amid positive demand, low vacancy, and the need to evolve supply chains in response to changing consumer expectations, operational challenges and persistent disruption. Global Takeaways Data Pertinent to Europe for 2023 Eva van der Pluijm-Kok Vice President, Research & Strategy, Europe adds: “Looking ahead, Europe is likely to see a lower peak in the vacancy rate during the upcoming mini-cycle because new construction starts fell earlier than in the U.S. and other global markets. Improvement in the demand backdrop could cause rent growth to reaccelerate quickly as scarcity returns to many markets on both the Continent and in the UK.”  You will find the full research here. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Arup celebrates multi-million-pound Birmingham investment in its largest UK office outside London

Arup celebrates multi-million-pound Birmingham investment in its largest UK office outside London

Global engineering consultancy Arup has officially opened its new Midlands base – one of its five largest global hubs – at Paradise Birmingham’s One Centenary Way, welcoming clients and contacts to mark the occasion. Arup was a major contractor to Birmingham City Council supporting it to deliver the Birmingham 2022 Commonwealth Games, helping to deliver the Alexander Stadium, transport and infrastructure improvements city wide, as well as the Perry Barr masterplan, and the Sandwell Aquatics Centre.  Establishing a national and international centre of excellence for Arup in the Midlands, with nearly 800 staff and offering more than 90 specialist services UK-wide, the multi-million-pound investment cements Arup’s commitment to Birmingham and the region as a global business destination.   Last year, the local Arup team worked on hundreds of projects locally and globally, supporting the delivery of more sustainable buildings, infrastructure, public spaces, and communities, and bringing the best of global expertise to the area. Arup’s move to the city centre is designed to attract local talent and aid the growth of the West Midlands as an innovation and skills hub.   The new office location will bring Arup closer to schools, colleges and universities, ensuring stronger links to education and more opportunity to attract, grow and retain diverse industry talent locally. Based in the heart of the city, Arup’s public-facing activity hub on the ground floor, ‘The Gallery’, will be a space Arup staff are able to work alongside local partners and neighbours to deliver community based, and charitable activities.  Speaking at the launch event, Andy Street, Mayor of the West Midlands, said: “Arup’s move back into the heart of Birmingham city centre is a tremendous endorsement of all that our region has to offer a global player of Arup’s stature.   “This kind of major investment is just the type we envisaged when we worked on the Enterprise Zone more than a decade ago – bringing to life our vision of a new city business district generating jobs for local people.  “I know that this announcement will help equip young people from a wide variety of backgrounds with the skills, apprenticeships and opportunities they need to succeed. I cannot wait to see lives changed for the better in the months and years ahead. My thanks to Arup for helping to make that possible.”  Understanding that the future office needs to compete with highly personalised home working arrangements, a variety of workplace settings, social areas, wellbeing areas, creative spaces and focus zones have been provided in the new Arup Midlands HQ. The new range of flexible workspaces is designed specifically to support collaboration, convening stakeholders and hosting events.  Cem Budak, Arup Midlands Leader, said: “We are excited to officially open our new Midlands hub located in the heart of Birmingham, the UK’s second city. We are eager to build on six decades of expertise in Midlands and the opening of the new office will bring us closer to key decision-makers, clients and collaborators, helping to foster innovation and creativity across the region.  “We helped to shape and design the space at One Centenary Way, which is undoubtedly one the finest commercial locations in the city. It is a space that our people already love working in and which helps them to engage with our clients and communities while exporting Birmingham skills and expertise around the world.”  The new office plays a significant role in Arup’s ambition to reach net zero carbon by 2030. Arup worked closely with developer MEPC on One Centenary Way, which is the first building within the Paradise estate with all-electric heating and hot water systems, as well as SMART technology that enables continuous office adaptations around utilisation, comfort, and energy consumption.   James Watts, Arup Birmingham Office Leader, said: “We are very proud that our new office is a showcase for our commitment to delivering sustainable solutions and our net zero carbon aspirations. We anticipate that our move will reduce travel emissions by over 60% and we will save over 1,100 tonnes of CO2 a year from our own staff commutes. Initiatives such as biophilic design, natural sheep wool wall insulation and a recycled material pallet will put our circular economy values into action while increasing staff connectivity with nature.  “In addition, the office also ensures our knowledge and global expertise are easily accessible to local clients and collaborators, allowing us to continue to provide innovative solutions and long-lasting value.”  Arup’s work in the Birmingham region for the last 60 years has helped shape the local landscape including major public buildings and developments from the NEC and ICC to commercial office buildings and new public realm like that created at Brindley place and Paradise in Birmingham. Arup’s major role in delivering the Birmingham 2022 Commonwealth Games and supporting infrastructure in and around Birmingham helped secure a meaningful legacy for the Games in the Midlands.  Building, Design & Construction Magazine | The Choice of Industry Professionals

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