Business : Finance & Investment News
Quintain Secures £128m Green Loan for Landmark Wembley Park BtR Development

Quintain Secures £128m Green Loan for Landmark Wembley Park BtR Development

Quintain, the visionary developer behind the transformative Wembley Park regeneration project, has announced the successful refinancing of its flagship build-to-rent (BtR) building, The Robinson, with a £128.7 million Natixis CIB green loan. This refinancing initiative not only reduces the existing debt facility but also underscores Quintain’s commitment to sustainable urban

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SEND capital investment – LGA response

SEND capital investment – LGA response

Responding to the Government’s announcement of £740 million capital investment in the SEND system to create more specialist places in mainstream schools, Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Board, said: “To tackle the challenges within the SEND system, any reform must focus on

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Barratt London and Places for London exchange on High Barnet

Barratt London and Places for London exchange on High Barnet

Barratt London and Places for London have exchanged contracts on a new development site in High Barnet. This is the second project unlocked by the West London Partnership, a collaboration established in June 2024 to deliver over 4,000 new homes across West London. The High Barnet development will deliver approximately

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Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Europe, a leading real estate investment fund manager specialising in European logistics and industrial properties, has partnered with NatWest to secure a £200 million Net Asset Value (NAV) Line facility for one of its co-mingled funds. This fund reports under Article 8 of the Sustainable Finance Disclosure Regulation

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NFB: 'Farmers have our support'

NFB: ‘Farmers have our support’

As the farming industry gets ready to protest changes to agricultural property relief (APR), they can count on construction to understand their concerns. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Construction companies are also generational businesses operating on tight margins, uncertain cashflow and aging workforces.

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New Export Guarantee Champions UK Engineering and Design Services

New Export Guarantee Champions UK Engineering and Design Services

UK Export Finance (UKEF), the UK’s export credit agency, has introduced a new guarantee product to help British firms secure international contracts providing engineering, design and technical services. The Early Project Services Guarantee (EPSG) is now available to overseas buyers who choose to use British services firms to scope and

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Latest Issue
Issue 327 : Apr 2025

Business : Finance & Investment News

Red Construction Group announces turnover of over £100m for the first time

Red Construction Group announces turnover of over £100m for the first time

RED Construction Group, the specialist main contractor, has announced its results for the 2023/24 financial year. Reaching a key milestone for the business, RED Construction Group has reported a turnover of £115m, as the company continues to deliver targeted revenue and achieve sustainable profit. Across the financial period, from 1st April 2023 to 31st March 2024, RED Construction Group has maintained a pre-tax profit margin of 1.7%, while taking turnover to nine figures for the first time in the company’s history. RED Construction Group forecasted more than 60% growth for 2023/24 in the previous financial year results, a figure that has been exceeded. Maintaining a stabilised income stream, The Group has already secured over £100m in contracts for its 2024/25 financial year. Operating year-on-year as a stable, profit-generating business, RED Construction Group is firmly established across multiple regions and sectors through an ambitious, controlled growth strategy. Key project wins and completions in that timeframe include South West’s team work on the £22m Net Zero Carbon Zeal Hotel in Exeter, creating a benchmark for the industry. RED Special Projects’ delivery of Warwick Castle Hotel, part of Merlin Entertainment’s £16.4m investment in Warwick Castle, following works delivered at Merlin Entertainment’s £35m LEGOLAND Woodland Village scheme in Windsor during the previous financial year. RED Construction London completed phase one works at The Sheppard Trust’s redevelopment of the Royal Cambridge Home in Surrey, alongside delivering Barwood Capital’s multi-million-pound redevelopment of Explore, the office building in Richmond. Graham Sturge, CEO, RED Construction Group, commented: “12 months ago, we predicted 2023/24 would be a huge milestone for the business, and I’m proud that we’ve met that and more, with a turnover comfortably over the £100m mark for the first time. We’ve also sustained a robust profit margin, an important element of the stable, considered growth we want to achieve year-on-year. “Whilst we celebrate this, we’re also very conscious of the volatility of our market. Our focus for the coming year remains the same – risk management, stable growth, and supporting our supply chain partners, that are often hit hard by that volatility and rarely spoken about publicly. With contracts secured and work underway that will guarantee more growth for 2024/25 – alongside our ongoing relationships with clients, new partnerships, team growth, and project delivery across London, the South West, and beyond – we’ve built a sustainable platform to serve one of the biggest industries in the UK with excellence in the years to come.” RED Construction Group is currently delivering a portfolio of works across hospitality, commercial, office, and student accommodation sectors. Projects include the landmark 130,000 sq ft office scheme in the heart of Westminster for Tellon Capital, Berkeley Estate Asset Management (BEAM)’s comprehensive refurbishment of 8 Lancelot Place, a live office building in Knightsbridge, and significant works to Manhattan Loft’s iconic St Pancras Renaissance Hotel. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Here’s why builders and developers should be investing in agricultural land

Here’s why builders and developers should be investing in agricultural land

New analysis from Excellion Capital, the boutique debt advisory and investments firm, reveals that developing agricultural Class Q land into residential dwellings can create a market value of £3.7m for savvy investors. As British farmers face the threat of a new 20% inheritance tax levy on all land and business assets worth more than £1m, some farming families are looking at ways in which they can sell all or part of their land to pay inheritance tax bills, or at the very least mitigate the future cost of inheritance tax. But does such an investment make sense for developers? Excellion Capital has analysed the investment potential available to developers who purchase Class Q land for the construction of residential properties, to see what sort of return they can expect. Some farmers are selling the entire farm With the new inheritance tax proposal potentially disincentivising farmers from passing their businesses down to the next generation, some families are having to consider the idea of selling the entire farm. Excellion’s analysis of current market listings* has found that there are currently 112 farms currently listed for sale in England. Existing data shows that the average sale price of arable land over the first half of 2024 stands at £11,000 per acre, while the average sale value of pasture land stands at £9,600 per acre*. According to further data from the UK government*, the average size of a UK farm is 202.6 acres. As such, the estimated average value of an arable farm currently stands at £2.23m, while the average value of a pasture farm is £1.94m. The Class Q option To avoid having to sell their farms, or sell quality farming land, Excellion’s research reveals that thousands of farmers have the alternative option of selling agricultural buildings and their plots, otherwise known as Class Q land. Under Class Q permitted development rights, disused or current buildings located on agricultural units can be converted into residential dwellings, with the option to create as many as 10 homes from a single building. As such, plots that aren’t in regular or meaningful use and don’t contribute greatly to the ongoing success of the farm, can be offloaded to residential developers for substantial amounts of money. Excellion’s analysis of planning data* reveals that there are currently 8,892 Class Q sites in England eligible for change of use from agricultural to residential. These sites are not necessarily listed for sale. Instead, they are opportunities identified through the planning classification assigned to them. What investment potential does Class Q land hold for developers? As of 2024, developers can build a maximum of 10 homes on a Class Q plot across a maximum floor space of 1,000 square metres. As such, the average floor space of each home can be calculated at 100 square metres. According to the most recent figures (November 2024), the average value of developed land stands at £347 per square foot. 100 square metres is equivalent to 1,076 square feet, which means a 100 square metre home has an average market value of £374,019. Therefore, developers who build 10 homes on a Class Q site are looking at a potential total sale value of more than £3.7m. How much should an investor pay for undeveloped Class Q land? If the potential value of a developed Class Q site sits at £3.7m, how much can developers expect to pay to purchase the land in the first place? An average expected land cost can be calculated by taking the value of the developed land (£3.7m), and subtracting the estimated cost of construction* combined with the developer’s required profit margin (which sits at an industry average of 20%*). This means removing an average of £2.6m. The figure you’re left with is roughly £1.1m which is, therefore, the average price that a developer can expect to pay for a plot of undeveloped Class Q land large enough to build the maximum number of properties allowed. Who is currently buying farmland? In 2014, private investors, institutional investors, and overseas buyers purchased little more than 20% of English farms that were put up for sale. By 2023, buyers accounted for approximately 30% of all English farm purchases. This suggests that over the past decade, investors and developers have identified the potential returns available from purchasing and redeveloping farmland, and given the new situation that farmers find themselves in, it’s reasonable to assume that these numbers are going to increase further over the coming months and years. Robert Sadler, Vice President of Real Estate at Excellion Capital, comments: “Farmers are understandably concerned about the proposed inheritance tax changes, and the tax bills involved could put real financial pressure on them. But while many farmers might be cash poor, they are increasingly asset rich – there is a lot of hidden value in farmland – and that’s why Class Q opportunities present such a great opportunity to create cash wealth by selling off what is, in many cases, little more than brownfield land. And while these Class Q designated plots provide an income opportunity for farmers, they also make for a very promising avenue that investors and developers should now be exploring. Considering that many farmers aren’t even aware of the Class Q opportunities that exist on their land, it’s clear that investors have the chance to strike up some very interesting and lucrative conversations with farmers up and down the country. But Class Q opportunities aren’t the only thing that developers and investors should be considering when it comes to conversations about farmland. Land promotion – in which a land promoter agrees with a farmer to gain planning permission for a small portion of their land, at which point the land can become up to 100-times more valuable and can be sold to local developers and housebuilders – is also becoming an increasingly fruitful endeavour. I personally worked on four land promotion deals in 2023, all in local areas with a drastic shortage of housing. With planning permission obtained, the land value was projected to be between

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Quintain Secures £128m Green Loan for Landmark Wembley Park BtR Development

Quintain Secures £128m Green Loan for Landmark Wembley Park BtR Development

Quintain, the visionary developer behind the transformative Wembley Park regeneration project, has announced the successful refinancing of its flagship build-to-rent (BtR) building, The Robinson, with a £128.7 million Natixis CIB green loan. This refinancing initiative not only reduces the existing debt facility but also underscores Quintain’s commitment to sustainable urban development. The original construction was financed by Cheyne Capital, which remains an active partner in other projects at Wembley Park. The Robinson: A Beacon of Modern LivingSituated in the Eastern Lands of Wembley Park, The Robinson comprises 458 rental homes, including 63 discounted market rent and affordable units, catering to diverse needs with studios to four-bedroom apartments. Its prime location adjacent to Quintain’s Canada Gardens and the iconic Wembley Stadium adds to its appeal. Designed with modern sharers in mind, the development benefits from Quintain Living’s award-winning property management expertise, offering residents a vibrant and well-connected lifestyle within one of London’s most dynamic neighbourhoods. Building a Sustainable FutureSince initiating the Wembley Park project 20 years ago, Quintain has delivered over 5,000 homes, creating the UK’s largest BtR neighbourhood. With an investment of £2.9 billion to date, the company is set to deliver two additional BtR schemes and a major public park by 2025. Quintain’s community-first approach was further cemented this year with the opening of the borough’s largest NHS GP surgery, reflecting its integrated mixed-use masterplan. The Robinson’s energy efficiency, ranking it within the top 15% of residential assets in the UK, earned the development Natixis CIB Green Loan status. This certification highlights Quintain’s dedication to environmentally sustainable construction and demonstrates the financial viability of its ESG-focused initiatives. Leadership InsightsPhilip Slavin, Chief Financial Officer at Quintain, stated:“We’re proud to have secured this new lending facility with Natixis CIB. The Robinson exemplifies the excellence of Wembley Park’s BtR developments and demonstrates the desirability of both the sector and the neighbourhood. Achieving green loan status further validates our commitment to sustainability while ensuring a robust financial platform for future projects.” Diego Sanfilippo, Head of Real Estate & Hospitality UK at Natixis CIB, added:“We are delighted to support Quintain with green financing for The Robinson. This environmentally sustainable development aligns with our mission to back high-quality, ESG-driven projects in prime locations, strengthening our real estate lending franchise in the UK.” A Team EffortLegal experts also played a crucial role in the deal: Quintain’s achievements at Wembley Park are a testament to its commitment to creating sustainable, community-focused developments that redefine modern living while setting a benchmark for ESG excellence. Building, Design & Construction Magazine | The Choice of Industry Professionals

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SEND capital investment – LGA response

SEND capital investment – LGA response

Responding to the Government’s announcement of £740 million capital investment in the SEND system to create more specialist places in mainstream schools, Cllr Arooj Shah, Chair of the Local Government Association’s Children and Young People Board, said: “To tackle the challenges within the SEND system, any reform must focus on boosting mainstream inclusion, and we are pleased government has set out steps towards this. “However the rising number of Education, Health and Care Plans means councils are under ever increasing financial pressure, and so it is vital today’s announcement is followed up with urgent action to write off councils’ high needs deficits. “Otherwise many councils will face a financial cliff-edge, and be faced with having to cut other services to balance budgets through no fault of their own, or their residents.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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Barratt London and Places for London exchange on High Barnet

Barratt London and Places for London exchange on High Barnet

Barratt London and Places for London have exchanged contracts on a new development site in High Barnet. This is the second project unlocked by the West London Partnership, a collaboration established in June 2024 to deliver over 4,000 new homes across West London. The High Barnet development will deliver approximately 300 new homes, including 40% affordable housing. Construction is expected to begin in 2026 and complete by 2029. The project will also include small-scale commercial units to enhance the station area. The West London Partnership, a significant collaboration between Places for London and Barratt London, aims to unlock 60 acres of underutilized land in West London. The partnership will deliver 50% affordable homes across its various projects, contributing to the region’s housing supply. In addition to housing, the partnership will deliver commercial space and create jobs. It also includes a commitment to training and development, with £1.5 million allocated to support young people’s careers in construction. The partnership prioritises sustainability, aiming to achieve high standards in building quality and environmental performance. Craig Carson, Managing Director at Barratt West London, commented: “We are proud to be appointed by Places for London as their formal development partner for the West London Partnership, building 4,000 new homes over the next decade. There is strength in our partnership, which is borne from an alignment of vision and values together to deliver the next generation of homes in a way that speaks to London’s unique housing needs. “Each site within the partnership has been specially selected to bring forward underused land with excellent transport links and put it back into use for the public benefit, including delivering public realm. London is in urgent need of more homes, and by taking a collaborative approach with Places for London, we can accelerate the delivery of these high quality sustainable new homes as well as investing in local communities.” Jonathan Cornelius, Head of Property Development at Places for London, added: “The West London Partnership will build on our work to date, and have a positive legacy by building thoughtfully-designed, thriving, and connected neighbourhoods for London. Through working with Barratt London, we have already delivered high quality, affordable housing to hundreds of Londoners so far and we will continue to work towards our wider aim of delivering more than 20,000 homes across London over the next decade, with 4,000 of them being built through this partnership alone. “We’re delighted to move forward with our proposals to build much-needed homes in High Barnet through the West London Partnership. Our plans for this new development will revitalise the area for new and existing residents by enhancing the station area with new amenities and building 300 new homes which London urgently needs.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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Catella APAM raises £102.2 million equities fund to invest in UK listed real estate

Catella APAM raises £102.2 million equities fund to invest in UK listed real estate

Catella APAM, a leading UK investment and asset management specialist and a subsidiary of the Catella Group, has launched its inaugural fund, Catella APAM Strategic Equities I (“the Fund”), to invest in UK listed property companies. The Fund has closed with £102.2 million in commitments from institutional investors, focused on identifying mispricing within the UK listed real estate sector. Simon Cooke, industry veteran and founding shareholder of Catella APAM, and Ben Kennedy, Head of Investment and Research at Catella APAM, will lead the Fund’s investment strategy, supported by Catella APAM’s senior asset and development management teams, which has advised on over £4.5 billion of assets within the UK and Ireland since its inception. Cooke and Kennedy designed the Fund’s strategy to target undervalued UK listed real estate companies, where underlying asset values have been impacted by recent macroeconomic challenges and shifting demand patterns. The Fund is the Group’s first fundamentals focused product investing in the listed markets following the launch of Catella Systematic Property Fund in 2022, a Swedish UCITS fund targeting Nordic listed property companies through a systematic investment approach. Kennedy commented: “The real estate sector has become more operationally intensive and complex, as asset owners begin to acknowledge their role in providing a service to customers rather than just passively holding assets. This is likely to create a more disparate distribution of returns as the gap between winners and losers widens. Our access to actionable, real-time asset data and hands-on expertise gives the Fund a predictive edge in assessing companies’ current and future value trajectory. Adopting a value investment approach in UK listed equities after a period of re-pricing should offer strong risk-adjusted returns to our investors.” Cooke, who has worked closely with equity fund managers throughout his career, particularly at Deutsche Asset Management throughout the 1990s, added: “I believe the listed sector is often undervalued compared to the wider market, as is the strategy, assets, and management teams, particularly following economic downturns. The sector currently trades at a significant discount to NAV, dragged down by recency bias and consolidated by the backward-looking valuation process. This has been a long journey, and I’m proud that we are now launched and mandated to unlock this embedded value.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Secures £200m Green NAV Facility with NatWest

Clarion Partners Europe, a leading real estate investment fund manager specialising in European logistics and industrial properties, has partnered with NatWest to secure a £200 million Net Asset Value (NAV) Line facility for one of its co-mingled funds. This fund reports under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), marking the first collaboration between the two organisations. This NAV facility is also a landmark transaction, as it includes green loan provisions aligned with the Loan Market Association’s (LMA) Green Loan Principles. This is the first such agreement between NatWest and Clarion Partners Europe, setting a precedent for green financing in real estate. The funds will support a range of sustainable initiatives, including refinancing existing properties, implementing green capital expenditure (capex) programmes, and acquiring assets that either meet or aim to achieve specific building energy certifications. Florina Capraru, Acquisitions Director at Clarion Partners Europe, commented:“Integrating green loan provisions into the NAV facility is a natural progression in our sustainability and value creation strategy. It aligns with our mission to future-proof our portfolio of mission-critical assets. NatWest has been an outstanding partner, demonstrating a deep understanding of the decarbonisation challenges facing the real estate sector. Their alignment with our sustainability ethos reinforces the idea that sustainability acts as both a risk mitigant and a driver of value.” Dan Kumagai, Head of Asset-Backed Funds Financing at NatWest, added:“This innovative green structure is a significant development for the NAV line product. By supporting Clarion Partners Europe, we hope to encourage other leading investors to take pivotal roles in decarbonisation and broader responsible investment.” Rahel Haque, Climate & ESG Capital Markets Lead for Private Finance at NatWest, shared her thoughts:“We are thrilled to have supported Clarion Partners Europe with their inaugural Green NAV facility. This funding will enable them to acquire additional logistics assets and enhance energy efficiency across their portfolio. We look forward to deepening our partnership as we work together towards decarbonising the built environment.” This collaboration not only strengthens the relationship between NatWest and Clarion Partners Europe but also underscores their shared commitment to sustainability and responsible investment in real estate. Building, Design & Construction Magazine | The Choice of Industry Professionals

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NFB: 'Farmers have our support'

NFB: ‘Farmers have our support’

As the farming industry gets ready to protest changes to agricultural property relief (APR), they can count on construction to understand their concerns. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “Construction companies are also generational businesses operating on tight margins, uncertain cashflow and aging workforces. We therefore stand behind farmers who oppose this budget decision because the growth-hindering, anti-business tax changes also apply to our industry. With so many construction companies being generational, struggling with regulatory burdens and a fifth of workers being over fifty years old, early conversations with members have highlighted that some will consider closing their businesses, changing operations, or cutting back the size of their operations. This means fewer directly employed workers and more sub-contracting, so greater pressure on state pensions and public services. A reduction in new learners and reskilling, as SMEs train 8 in 10 constriction apprentices. Rural areas disproportionately impacted, as local constructors are often major local employers. Fewer businesses to build our houses, especially council homes that are typically built by SMEs. Less capacity to deliver capital and infrastructure works. And a greater challenge to meet our carbon targets, especially to retrofit our 28 million buildings. Some members said they will sell rather than pass on and while this ensures a future for those businesses it comes with workforce insecurity, a loss of experience and talent, and unless bought by a local person, the loss of a local investor. This Government is at risk of being remembered as the one which closed the businesses who keep us fed and build the homes, roads, rail, commercial premises, renewable energy, transport hubs, schools, hospitals, utility connections, drainage systems, and climate solutions. A rethink is desperately needed.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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New Export Guarantee Champions UK Engineering and Design Services

New Export Guarantee Champions UK Engineering and Design Services

UK Export Finance (UKEF), the UK’s export credit agency, has introduced a new guarantee product to help British firms secure international contracts providing engineering, design and technical services. The Early Project Services Guarantee (EPSG) is now available to overseas buyers who choose to use British services firms to scope and design their projects in the planning phase. The guarantee helps overseas buyers of UK services to access private finance by assuring lenders that they will receive payment, making the UK offer more attractive. Once the project services contract is complete, there is potential for the guaranteed loan to be refinanced alongside financing the wider construction project. The prospect of subsequent finance throughout the life-cycle of projects incentivises overseas buyers to select UK services firms for the early-stage work. Carl Williamson, Director of SME and Trade Finance, UK Export Finance, said: “This new export finance support will give international buyers even more incentive to tap into UK design and engineering expertise. Year-on-year growth in service exports shows that the demand is there for this country’s professional and technical services.”  “The development of our Early Project Services Guarantee is a clear signal of UKEF’s commitment to helping the services sector to maintain its competitive edge and international renown.” The EPSG addresses gaps in market provision for financing the preparatory stages of major projects. It also contributes towards UKEF’s objective of helping a broad range of businesses to export, driving growth across all regions of the UK. This announcement has been made alongside International Trade Week, an annual event run by the Department for Business and Trade which includes a series of virtual and in-person events to advise UK businesses on different ways to reach new international markets. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Supermarket Income REIT Secures £49.7m Huddersfield Sainsbury’s in Strategic Investment

Supermarket Income REIT Secures £49.7m Huddersfield Sainsbury’s in Strategic Investment

Supermarket Income REIT has bolstered its portfolio with the £49.7 million acquisition of a prominent Sainsbury’s supermarket in Huddersfield, West Yorkshire. Spanning 113,348 sq ft, the site includes an omnichannel supermarket and a petrol filling station, occupying an expansive 8.5-acre plot. Sainsbury’s has been a fixture on the site for over three decades, with the current lease offering 11 years of unexpired term and annual inflation-linked rent reviews. In addition to serving in-store shoppers, the site plays a key role in Sainsbury’s online operations, functioning as a fulfilment hub with 12 home delivery vans and click-and-collect services. The acquisition was funded through Supermarket Income REIT’s existing debt facility, bringing the company’s loan-to-value ratio to 39%. The REIT’s portfolio now boasts a weighted average unexpired lease term of 12 years, reflecting its commitment to long-term stability and growth. A Strategic Move for Shareholder ValueBen Green, Principal at Atrato Capital Limited, investment adviser to Supermarket Income REIT, expressed enthusiasm for the acquisition:“We are delighted to add this high-quality UK asset to our portfolio. This acquisition underlines our focus on delivering strong returns and exploring new opportunities to enhance value for Supermarket Income REIT’s shareholders.” This latest investment underscores Supermarket Income REIT’s confidence in the resilience and growth potential of the UK’s grocery sector, solidifying its reputation as a key player in the market. Building, Design & Construction Magazine | The Choice of Industry Professionals

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