Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers
Ardent Capital Partners has marked its first foray into the UK property market with a landmark £200 million investment in a transformative build-to-rent (BTR) development in Leeds. This ambitious project is a significant milestone in the city’s regeneration, reaffirming Leeds as a hotspot for modern urban living. Set on the
Sixth Street, a global investment powerhouse, and Copley Point Capital, a UK-based specialist in industrial property, have announced a joint venture to target high-quality industrial real estate in the United Kingdom. This partnership is set to focus on logistics markets characterised by strong demand and limited supply. The venture has
Landsec has taken full ownership of MediaCity in Salford, acquiring Peel Group’s remaining 25% stake in the iconic mixed-use development. The real estate investment trust (REIT) also gained ownership of dock10, MediaCity’s television facility, and the estate’s 218-bed hotel, both previously held by Peel. The transaction, which includes a cash
The restoration project for a historic Huddersfield hotel has received a further cash injection of £9.8 million from Kirklees Council. The vacant George Hotel was purchased by the council four years ago after lying dormant since 2013, with a number of improvements still required for it to be available for
The Urban Splash Residential Fund (USRF), advised by SURE Capital Partners, has announced a significant new partnership with sustainable developer Citu, formalised through a £200 million Memorandum of Understanding (MoU). This five-year agreement grants USRF priority access to Citu’s pioneering properties, which include single-family homes across Yorkshire, marking a major
The Urban Splash Residential Fund (USRF), and its Investment Adviser SURE Capital Partners, have entered into a significant new partnership with sustainable developer Citu, signing a Memorandum of Understanding (MoU) worth £200m. The arrangement gives USRF priority access to Citu’s pioneering properties and single family homes across Yorkshire for the
Commenting on the retail and leisure sectors, Steve Rodell, Managing Director – Retail & Liesure, said: “While, in today’s Budget, the Government committed to economic growth, it also committed to hikes in taxes for businesses around the country, including Capital Gains Tax and a rise in employers’ National Insurance contributions by
Bain Capital, a global leader in multi-asset investment, has acquired an 80% stake in AQ Compute, Aquila Group’s dedicated data centre subsidiary. This partnership signals a substantial investment drive to develop sustainable, AI-ready data centres across Europe, leveraging Bain Capital’s global expertise and Aquila’s focus on renewable energy. Established in
Dave Sanders, head of technical sales at specialist civils engineering supplier Wrekin Products’, reaction on the £500m investments into the UK’s road network for pothole maintenance announced in the Autumn Budget: “Unless there is a real push for long term pothole repair solutions instead of quick fixes, then we will
Landsec has expressed strong confidence in expanding its investment in the retail sector, highlighting plans to deploy further capital in the coming months. The real estate investment trust (REIT) recently strengthened its portfolio with a £120m acquisition of an additional stake in Bluewater, Kent. The company revealed that retail offers “the most attractive risk-adjusted returns,” with high single-digit income yields and rising rents. Despite this optimism, Landsec noted that new supply in the market is “non-existent.” For top-tier assets, non-value-adding capital expenditure remains minimal, accounting for just 0.2% of total asset value. This statement coincides with Landsec’s release of its half-year results for the 2024 financial year, covering the six months up to 30 September. The company reported a pre-tax profit of £243m, a significant recovery from a £193m loss during the same period last year. Landsec attributed part of its success to a shift in retail trends, where brands are prioritising fewer but larger flagship stores. This approach has led to new leases and upsizes with prominent names such as Primark, Pull&Bear, Bershka, Sephora, and JD Sports across its portfolio. The group’s retail portfolio occupancy now stands at 96%, exceeding pre-Covid levels and marking a 70-basis-point improvement. Leases worth £26m have been signed or are nearing completion, with rents 7% above estimated values. Mark Allan, Landsec’s Chief Executive, commented:“Our operational outperformance continues, with further growth in occupancy and positive rental uplifts across both our retail and London portfolios. This progress is translating into accelerated income growth.” He added:“Property values have stabilised, and rising rental values are driving a modest increase in capital values. This has delivered a positive total return on equity. We expect these trends to continue, supported by strong customer demand for our premium spaces and increased activity in the investment market. Our repositioning towards higher-return opportunities, combined with disciplined balance sheet management, leaves us well-positioned to deliver growth and attractive returns.” Earlier this year, Landsec announced its intention to focus on acquisitions throughout 2024, leveraging funds from recent disposals to capitalise on emerging opportunities. Building, Design & Construction Magazine | The Choice of Industry Professionals
Ardent Capital Partners has marked its first foray into the UK property market with a landmark £200 million investment in a transformative build-to-rent (BTR) development in Leeds. This ambitious project is a significant milestone in the city’s regeneration, reaffirming Leeds as a hotspot for modern urban living. Set on the former site of the Leeds International Swimming Pool, the development will deliver 578 cutting-edge rental apartments to the heart of the city. Valued at approximately £200 million, the scheme is poised to redefine Leeds’ city centre, catering to the growing demand for quality, centrally located rental homes while expanding the city’s vibrant core. Leeds’ BTR sector is experiencing remarkable growth, fuelled by extensive regeneration projects and a strong appetite for urban living. The city centre’s footprint is projected to double in size from 228 acres to 458 acres over the next decade. With 24 BTR schemes currently proposed and three existing developments maintaining occupancy rates above 94%, the city is rapidly establishing itself as a leading hub for rental investment. Ardent’s project aligns seamlessly with Leeds’ vision for its South Bank area—a cornerstone of the city’s redevelopment strategy. This district aims to deliver 8,000 new homes, create 30,000 jobs, and revitalise the River Aire as a central feature of Leeds’ future. By addressing the growing demand for premium residential spaces, Ardent’s investment reinforces the city’s ambitions for urban transformation. The rising demand for high-quality rental properties in Leeds has driven rents to between £22 and £27 per square foot, with premium developments exceeding £30 per square foot. This growth echoes trends seen in mature BTR markets such as Manchester and Salford, positioning Leeds as a compelling choice for investors seeking opportunities in the sector. Ardent Capital’s £200 million commitment not only marks a significant milestone in the regeneration of Leeds but also highlights the city’s rising status in the UK’s build-to-rent market. Their confidence in Leeds as a prime destination for high-value developments underscores the city’s potential for sustained growth and modernisation. Building, Design & Construction Magazine | The Choice of Industry Professionals
Sixth Street, a global investment powerhouse, and Copley Point Capital, a UK-based specialist in industrial property, have announced a joint venture to target high-quality industrial real estate in the United Kingdom. This partnership is set to focus on logistics markets characterised by strong demand and limited supply. The venture has already secured agreements for an initial £180 million in transactions, with plans to further expand through acquisitions of both individual assets and larger portfolios across the UK. A Milestone CollaborationMichael Heal, Founder of Copley Point, highlighted the significance of the venture:“This partnership marks a major expansion of our Block Industrial programme with Sixth Street. Their extensive resources, reputation, and expertise in real estate will enhance our specialised approach and proven ability to add value at the asset level. Over the past five years, my team and I have built a solid foundation, and Sixth Street’s capital flexibility and long-term outlook make them an ideal partner for our growth ambitions.” Capitalising on Sector TrendsGiulio Passanisi, Managing Director and Head of European Real Estate at Sixth Street, shared his enthusiasm for the partnership:“The Copley Point team is highly regarded in the UK market, and we are excited to work together to expand this platform. The UK industrial real estate sector remains constrained in supply, yet it continues to benefit from robust trends such as the rise of e-commerce and the onshoring of supply chains. We aim to leverage our scale and expertise to meet the capital needs of this thriving sector.” A Strong Foundation for GrowthThe venture’s initial transactions were guided by leading advisers, including BCLP, PwC, Jones Hargreaves, and SLR. Sixth Street received legal advice from Ropes & Gray, while CBRE assisted Copley Point in securing the partnership. Gowling served as Copley Point’s legal adviser. With this joint venture, Sixth Street and Copley Point are poised to address the growing demand for mission-critical logistics and industrial properties in the UK, solidifying their presence in this dynamic sector. Building, Design & Construction Magazine | The Choice of Industry Professionals
Landsec has taken full ownership of MediaCity in Salford, acquiring Peel Group’s remaining 25% stake in the iconic mixed-use development. The real estate investment trust (REIT) also gained ownership of dock10, MediaCity’s television facility, and the estate’s 218-bed hotel, both previously held by Peel. The transaction, which includes a cash payment of £22 million and the assumption of £61 million in secured debt, totals £83 million. Landsec secured this at a discount to the latest book value of its existing 75% holding in MediaCity, a reflection of Peel’s surrender of “wrapper” leases and the potential income loss associated with those leases. Factoring in the additional assets of the hotel and dock10 studios, the transaction aligns with the book value of MediaCity, ensuring it remains earnings-neutral in the short term. With this acquisition, Landsec gains full control over the future direction of MediaCity, including the adjacent land that offers substantial development potential. The REIT is now positioned to lead the estate’s next growth phase, with plans to create more residential spaces and attract a mix of innovative businesses to the area. Mike Hood, CEO of Landsec U+I, commented, “MediaCity has immense potential. With our increased ownership, we can fully realise our vision for the area—creating a vibrant community where people come to work, live, and enjoy their lives. We look forward to sharing more about our plans soon.” Earlier this year, Landsec received approval for an expansion of MediaCity that will deliver an additional 800,000 sq. ft. of commercial space and 3,200 new homes. With complete ownership, Landsec is now in an ideal position to drive the continued transformation of this landmark destination in Salford. Building, Design & Construction Magazine | The Choice of Industry Professionals
The restoration project for a historic Huddersfield hotel has received a further cash injection of £9.8 million from Kirklees Council. The vacant George Hotel was purchased by the council four years ago after lying dormant since 2013, with a number of improvements still required for it to be available for use. Once restored, the George – a key priority within the Huddersfield Blueprint, Kirklees Council’s masterplan to transform the town centre – will be managed by internationally renowned hotelier Radisson. The Grade II* listed building has already received £20.2 million from the council’s Cabinet two years ago, but increases in construction costs and additional issues found on site, mostly due to the nature of the historic building and its complexities, meant further funds were required. The latest influx in cash will bring the project’s total to £30 million, with the hotel aiming to be open in 2027. The council have also explored the possibility of increasing the number of rooms planned from 91 to 108, in a bid to help the George generate more income to repay the Cabinet’s investment. Councillor Carole Pattison, Leader of Kirklees Council, said: “The George Hotel plays such a key role in Huddersfield’s past, and for people travelling by rail it will always be one of the very first buildings to welcome you as you enter the town centre. “Bringing this building back to life is one of our priorities within the Huddersfield Blueprint, and we’re unwavering in that commitment. “As with many of our regeneration plans – particularly projects which involve the refurbishment of such beautiful, historic structures – it’s a hugely complex process, greatly impacted by the current economic climate. “What we’re proposing is a more streamlined vision for the hotel, with greater capacity and solutions that take better care of this beautiful building’s history. She added: “I’m pleased that Cabinet continue to see bringing this beautiful building back into use as a priority.” Building, Design & Construction Magazine | The Choice of Industry Professionals
The Urban Splash Residential Fund (USRF), advised by SURE Capital Partners, has announced a significant new partnership with sustainable developer Citu, formalised through a £200 million Memorandum of Understanding (MoU). This five-year agreement grants USRF priority access to Citu’s pioneering properties, which include single-family homes across Yorkshire, marking a major milestone in the fund’s expansion strategy. This alliance – the second for USRF after a similar agreement with Urban Splash – encompasses 600 homes with potential for future growth. As part of the initial investment, USRF will acquire 52 Citu homes located in the Climate Innovation District in Leeds and Kelham Central, Sheffield. Both developments reflect Citu’s principles of placemaking, building resilient, green, mixed-use neighbourhoods with energy-efficient homes that prioritise community and environmental responsibility. Adding Citu’s homes diversifies USRF’s portfolio, expanding its range of sustainable, single-family residences across the UK. Akeel Malik, Partner at SURE Capital Partners, commented, “This partnership aligns capital with regeneration, empowering us to support the creation of vibrant new neighbourhoods. Leeds and Sheffield are dynamic cities where people want to live, work, and play, and we’re proud to be part of this transformation.” He continued, “Our mission is to build a portfolio of design-led rental homes, and Citu’s award-winning properties and communities offer the ideal product for that vision.” Tom Bloxham MBE, also a Partner at SURE, added, “Investors are ready to back design-led homes – a concept that has proven successful with Urban Splash and now extends to Citu. I have long admired Citu’s work and am delighted to see this agreement finalised.” Bloxham added that this deal underscores SURE Capital’s dedication to connecting UK and international capital with top UK developers such as Citu, Urban Splash, and Javelin Block, supporting sustainable housing projects with substantial investor returns. Yorkshire-based Citu is known for its innovative and environmentally conscious developments. Building to Passivhaus standards, Citu’s homes are about 75% more energy-efficient than traditional UK homes. They are also manufactured locally using modern construction methods in Citu’s Yorkshire factory, further minimising carbon emissions. Through this partnership, Citu will introduce high-quality rental properties to its developments, a strategic new direction for the company. Jonathan Wilson, Citu’s Managing Director, stated, “This collaboration is a substantial step forward for Citu. Our growth strategy is centred on creating sustainable communities with a variety of tenures, and we’re thrilled to offer rental options in partnership with USRF, a partner who shares our commitment to sustainable development.” Established in 2017, USRF has gained a leading position in the market by actively engaging with local communities. Its initiatives include 100% green energy and a resident platform called Ark, offering discounts with local businesses. This new agreement with Citu will allow both organisations to continue fostering sustainable urban living across Yorkshire, benefiting both communities and the environment. Building, Design & Construction Magazine | The Choice of Industry Professionals
The Urban Splash Residential Fund (USRF), and its Investment Adviser SURE Capital Partners, have entered into a significant new partnership with sustainable developer Citu, signing a Memorandum of Understanding (MoU) worth £200m. The arrangement gives USRF priority access to Citu’s pioneering properties and single family homes across Yorkshire for the next five years, marking a major step forward in the Fund’s expansion. The strategic partnership – USRF’s second, following a similar agreement with Urban Splash – covers 600 homes with opportunity to grow, and includes an initial purchase of 52 Citu homes within the Climate Innovation District in Leeds and Kelham Central, Sheffield. Both developments follow Citu’s placemaking principles creating resilient, green, mixed-use neighbourhoods of low energy homes, and building through placemaking focused on people and communities. The homes further diversify USRF’s portfolio by adding more sustainable single family homes to its current offering across the UK; Akeel Malik, Partner at SURE Capital Partners explained: “This deal connects capital with regeneration, allowing us to play a pivotal role in creating vibrant new neighbourhoods. Leeds and Sheffield are exciting, transformative cities where people want to live, work, and play, and we’re proud to help drive that change. “Our mission is to cultivate a portfolio of design-led homes for renters – an approach that aligns perfectly with Citu. We have found the ideal product in their award-winning homes and communities.” Tom Bloxham MBE, also Partner at SURE added: “SURE has investors ready to commit to design-led homes. It’s a concept that’s been proven with Urban Splash and now with Citu. “I have long been an admirer of the regeneration work undertaken by Chris, Jonathan and the team at Citu and was very pleased to see this deal close. This is another example of how SURE Capital is bringing UK and international institutional capital to work supporting the very best UK SME developers like CITU, Urban Splash and Javelin Block – with whom we completed a deal last year in Birmingham. This deal will both bring good returns to our investors and help fund much needed new sustainable homes and regeneration in UK regions.” Yorkshire-born Citu is renowned for its innovative and eco-conscious developments across the UK, creating homes that work to Passivhaus principles, making them approximately 75% more energy efficient than a traditional home in the UK. Citu’s homes are also manufactured locally in its Yorkshire factory using modern methods of construction (MMC) that substantially lower carbon emissions with an emphasis on quality and assurance. The company is redefining urban living in Yorkshire through innovation and sustainability. With a commitment to creating homes and communities which are designed beautifully, are environmentally responsible and socially vibrant. Diversifying the tenures available in these places and providing a quality rental offering in an exciting next step in Citu’s journey as Jonathan Wilson, Managing Director at Citu, explained: “This partnership marks a significant step forward for Citu, and we are delighted to have found an aligned partner with the right expertise and ambitions to join us on this journey. “Our growth strategy focuses on creating exceptional sustainable places with a variety of tenures, and we’re excited to introduce a rental offering to our developments both now and in the future, with a partner who shares our vision and responsibility. This collaboration enables us to move ahead with confidence, and we look forward to the next steps.” Citu is passionate about building and place sustainability. The deal will help Citu, a growing Yorkshire SME, further expand its reach while giving USRF the opportunity to offer sustainable living solutions to families across the county. Established in 2017, USRF has developed a market-leading experience that actively engages local communities. The Fund offers initiatives including 100% green energy as standard and a community platform called Ark offers a resident app with local business discounts. For further information: https://www.urbansplash.co.uk/us-residential-fund Building, Design & Construction Magazine | The Choice of Industry Professionals
Commenting on the retail and leisure sectors, Steve Rodell, Managing Director – Retail & Liesure, said: “While, in today’s Budget, the Government committed to economic growth, it also committed to hikes in taxes for businesses around the country, including Capital Gains Tax and a rise in employers’ National Insurance contributions by a lower £5,000 threshold. There will also be an added burden to businesses from an increase in the National Minimum wage that will somehow need to be paid for. On the plus side, small employers will benefit from an increase in the Employment Allowance from £5,000 to £10,500. The increase in the National Living Wage is likely, and NI will likely be passed to consumers in a higher process, but measures to increase household income will help retail and leisure consumer spending. The current 75% discount to business rates for retail and leisure businesses is due to expire in April of next year but will remain at a reduced 40% discount with a cap of £110K. It will be interesting to see how this may affect growth plans. It is good news that small business rate relief stays in place and that the multiplier for retail hospitality and leisure will be set at a lower rate from the 2026 revaluation. Fuel duty is frozen for another year and the Government will maintain the current 5p discount to help households. However, it has continued to emphasise the importance of investment in green infrastructure and technologies needed to achieve net zero, as we’ve seen with its introduction of the Vehicle Excise Duty. Car drivers who have been put off electric vehicles recently haven’t seen any incentives to turn their heads in this budget. In the retail and leisure sectors, many deals are moving forward regardless, but at the higher end of the deal value range, some stakeholders have been adopting a ‘wait and see’ approach but we should see these move forward now.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Bain Capital, a global leader in multi-asset investment, has acquired an 80% stake in AQ Compute, Aquila Group’s dedicated data centre subsidiary. This partnership signals a substantial investment drive to develop sustainable, AI-ready data centres across Europe, leveraging Bain Capital’s global expertise and Aquila’s focus on renewable energy. Established in 2020 by Aquila Group, AQ Compute has carved out a niche by offering modular and environmentally responsible data centre solutions. Their operations focus on clean energy sources, with their first major sustainable data centre recently launched near Oslo. Plans are underway for further expansion, with new centres planned in tech hubs like Barcelona and Milan. This alliance aims to create a leading data centre platform in Europe, supporting the rapid growth in demand from hyperscale and AI customers while addressing the challenges of high power usage and carbon emissions. Ali Haroon, a Partner at Bain Capital, highlighted Europe’s promising data centre market, driven by increasing demand for cloud storage, AI, and high-performance computing. He noted that combining their investment expertise with Aquila’s commitment to renewable energy places AQ Compute in a strong position to address both data demands and the sector’s power challenges. Bain Capital’s significant global experience in data centres is key to AQ Compute’s growth trajectory, with successful ventures including Bridge Data Centres in Asia and support for DC BLOX in the United States. Rafael Coste Campos, a Managing Director at Bain, emphasised their deep experience in the European property market and infrastructure services, which will be instrumental as they build AQ Compute into a market leader in sustainable data centres. Aquila Group’s CEO, Roman Rosslenbroich, expressed confidence in the joint venture’s potential, noting that their ongoing 20% stake ensures AQ Compute’s sustainable growth aligns with Aquila’s long-term goals. Rosslenbroich commented on the dual challenge and opportunity presented by increasing data demands and the necessity for sustainable solutions, stressing the importance of using clean energy to power Europe’s digital future. Markus Holzer, Chairman of AQ Compute, underscored the importance of Bain Capital’s backing in accelerating AQ Compute’s pipeline. With this new alliance, AQ Compute is poised to set a benchmark in sustainable, AI-focused data centre development, bolstering Europe’s digital infrastructure while prioritising environmental responsibility. This strategic partnership between Bain Capital and Aquila Group marks a significant step toward greener data infrastructure across Europe, with plans for multi-billion-euro investments focused on addressing both today’s and tomorrow’s digital and environmental demands. Building, Design & Construction Magazine | The Choice of Industry Professionals
Dave Sanders, head of technical sales at specialist civils engineering supplier Wrekin Products’, reaction on the £500m investments into the UK’s road network for pothole maintenance announced in the Autumn Budget: “Unless there is a real push for long term pothole repair solutions instead of quick fixes, then we will not be able to solve the pothole crisis – no matter how much budget is allocated. We’re seeing a growing number of local authorities unhappy with the approach of patch repairing already subpar pothole repair works, but this is happening far too often. “More guidance surrounding how potholes are formed and the innovative solutions available will allow more local authorities to address the root causes properly. “Other underlying causes of potholes include road ironwork failures and this needs to be addressed. Potholes will form when weaknesses exist in the road surface, potentially from surfacing joints, remedial works, or the use of poor-quality materials. Fitting a piece of ironwork in a road can create a potential weakness, as well as the cuts in the road needed to remove ironwork. Replacement or repair of ironwork also poses an increased risk. “Selecting robust systems with the correct, appropriate materials can reduce the potential for surface weakness. Durable ironwork that is sympathetic to its bedding materials and surrounding environment is key to preventing potholes. “Though there is much to be done in addressing the short comings of iron work solutions in the road network, a key factor will be the welcomed £500m commitment from national government. More discussions and collaboration between national government and local authorities will be needed to ensure that the allocation of funding accurately addresses the root causes of failures in the road network, and we look forward to these developments taking place.” To find out more about Wrekin’s pothole insights and read its recent industry report on the nationwide issue, visit: www.wrek.in/potholes Building, Design & Construction Magazine | The Choice of Industry Professionals
