Business : Market Activity, Finance & Investment News
SCAPE opens procurement for £8 billion national construction framework

SCAPE opens procurement for £8 billion national construction framework

Public sector procurement specialist SCAPE has published the Tender Notice for its next generation SCAPE Construction Works and Services Framework, covering England, Wales and Northern Ireland. The framework offers a fully compliant, actively managed procurement route for public sector organisations, maximising value through the creation of long-term strategic partnerships. The

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Lendlord Q3 data shows 45.1% of UK buy-to-let is company-owned, rising to 57.6% for large landlords

Lendlord Q3 data shows 45.1% of UK buy-to-let is company-owned, rising to 57.6% for large landlords

Property management and finance platform Lendlord has published Q3 2026 buy-to-let ownership data, showing that 45.1% of UK BTL ownership is company-held, compared with 54.9% held privately. Among landlords with 20 or more properties, company ownership rises to 57.6%. The figures, drawn from Lendlord’s Q3 2026 UK BTL Market Report, show that company ownership is already the

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Vistry Secures £350m Homes England Boost for Affordable Housing Delivery

Vistry Secures £350m Homes England Boost for Affordable Housing Delivery

Vistry has secured £350 million in government grant funding to accelerate the delivery of social and affordable housing across England outside London. The housebuilder has been named among 33 strategic partners selected by Homes England to support the Government’s new £39 billion Social and Affordable Homes Programme (SAHP), which will

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Pipeline perks up as project starts plateau

Pipeline perks up as project starts plateau

Short-term economic easing indicates construction sector recovery still on track for 2027 Today, Glenigan | A Hubexo Product (Glenigan), one of the construction industry’s leading insight and intelligence experts, releases the August 2026 edition of its Construction Review. The August Review focuses on the three months to the end of July 2026,

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Government procurement simplification welcomed by Pagabo Group CEO

Government procurement simplification welcomed by Pagabo Group CEO

By Amman Boughan, CEO at Pagabo Group. Members of the new Labour cabinet are busy making their arrival known, with announcements coming thick and fast. Procurement has been a frequent talking point for prime minister Andy Burnham since his resurgence and rise to the top of government. However, talking is

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Latest Issue
Issue 343 : Aug 2026

Business : Market Activity, Finance & Investment News

SCAPE opens procurement for £8 billion national construction framework

SCAPE opens procurement for £8 billion national construction framework

Public sector procurement specialist SCAPE has published the Tender Notice for its next generation SCAPE Construction Works and Services Framework, covering England, Wales and Northern Ireland. The framework offers a fully compliant, actively managed procurement route for public sector organisations, maximising value through the creation of long-term strategic partnerships. The framework has a total capacity of £8 billion over a four-year period. Fully aligned with the Procurement Act 2023, it is expected to run between 2027 and 2031, with the option of a two-year extension. Following extensive pre-market engagement with public sector bodies, alongside more than 100 organisations from the construction industry, the next generation framework has strategically evolved in response to client and industry feedback and to reflect the changing needs of the public sector. Providing an accelerated route to market, it will support organisations ranging from local authorities and blue light to housing associations and universities to deliver a range of cross-sectoral projects. These include new build, refurbishment, retrofit and long-term programmes of work. The framework’s five lots are designed to deliver on precise client requirements, allowing for the development of enduring strategic partnerships between the public sector and contractors. A competitive selection process will allow clients to ask project-specific questions based on their bespoke needs.  To provide greater choice, the framework will appoint three delivery partners per lot in response to market feedback. The five lots are as follows: The re-procurement builds on the strong performance of the current SCAPE Construction Framework, which has supported over 240 completed projects and 100 live projects. The announcement closely follows the procurement of SCAPE’s £8.5 billion standalone Defence and Complex Environments Framework in August 2026, which was launched following the construction framework’s consultation process. The market engagement indicated strong demand for a dedicated solution focused specifically on defence and complex environments. All 11 of SCAPE’s current frameworks have achieved Gold Standard verification, reflecting its commitment to collaborative working practices, robust governance and continuous improvement that leads to consistent, high-quality outcomes. SCAPE framework delivery partners are actively managed, audited and performance monitored against the framework agreement, driving continuous improvement and providing clients greater confidence in project delivery. Craig Murphy, Director of Frameworks at SCAPE, said: “Informed by extensive market engagement with both contractors and public sector organisations, SCAPE’s Construction Works and Services Framework responds to an evolved legislative environment alongside demand for greater choice and flexibility over delivery partners. “Building on the success of our current framework – which has successfully delivered hundreds of often high-profile public sector projects over the last few years – its next generation successor offers no less than five sector-specific lots designed to meet client requirements. Through an actively managed service, the framework aims to deliver exceptional project outcomes across England, Wales and Northern Ireland.” Building, Design & Construction Magazine | The Choice of Industry Professionals

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Lendlord Q3 data shows 45.1% of UK buy-to-let is company-owned, rising to 57.6% for large landlords

Lendlord Q3 data shows 45.1% of UK buy-to-let is company-owned, rising to 57.6% for large landlords

Property management and finance platform Lendlord has published Q3 2026 buy-to-let ownership data, showing that 45.1% of UK BTL ownership is company-held, compared with 54.9% held privately. Among landlords with 20 or more properties, company ownership rises to 57.6%. The figures, drawn from Lendlord’s Q3 2026 UK BTL Market Report, show that company ownership is already the majority model among larger portfolios, while smaller landlords remain predominantly private. Key findings from the Q3 2026 data include: ·      45.1% of BTL ownership is through a company; 54.9% is held privately. ·      Among landlords with 1-3 properties, 67.1% of ownership is private. ·      Among landlords with 20 or more properties, 57.6% of ownership is company-held. ·      Company ownership first becomes the larger share in the 11-20 property band. ·      The North East is the most corporate market, at 53.5% company-owned. ·      Company ownership is also the larger share in Yorkshire & Humberside and Scotland. The data points to a clear split in how the market is structured. Private ownership still dominates among smaller landlords. Once portfolios reach 11 properties or more, company structures become the typical vehicle. The same pattern appears geographically, with company ownership more established in the North East, Yorkshire & Humberside and Scotland. The findings form part of Lendlord’s ongoing work to give brokers, landlords and lenders data-led insight into the UK buy-to-let market. Aviram Shahar, co-founder and CEO of Lendlord, said: “Company ownership is no longer a niche structure used only at the very top of the market. 45.1% of BTL ownership is already sitting in a company, and among larger portfolios it is the majority model at 57.6%. “That split matters. Smaller landlords still tend to hold in their own name. Larger landlords, and more of the North, have already moved into companies. Lendlord is the place for landlords to bring portfolio, mortgage and tax data together, stay on top of compliance and manage that shift with confidence.” More information is available at www.lendlord.io and https://lendlord.io/btl-ownership-insights-q3-2026/.   Building, Design & Construction Magazine | The Choice of Industry Professionals

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Vistry Secures £350m Homes England Boost for Affordable Housing Delivery

Vistry Secures £350m Homes England Boost for Affordable Housing Delivery

Vistry has secured £350 million in government grant funding to accelerate the delivery of social and affordable housing across England outside London. The housebuilder has been named among 33 strategic partners selected by Homes England to support the Government’s new £39 billion Social and Affordable Homes Programme (SAHP), which will provide long-term funding for housing delivery over the next decade. The agreement represents a significant funding boost for Vistry’s partnerships-led housing model and will support the delivery of new affordable homes alongside councils, housing associations and other registered providers. Vistry is one of relatively few private-sector housebuilders included among the strategic partners, with the majority of organisations selected for the programme comprising housing associations and local authorities. Collectively, the partnerships announced by Homes England are expected to support the creation of more than 73,000 new homes, providing greater long-term certainty for the affordable housing development pipeline. Vistry has worked with Homes England through successive affordable housing programmes for almost two decades and has established relationships with 29 of the other 32 strategic partners announced alongside the company. Adam Daniels, Chief Executive of Vistry, said: “Vistry has received direct grant funding awards under successive affordable homes programmes for nearly twenty years, and this award reflects our established track record and commitment to delivering much needed affordable homes in collaboration with Homes England and our partner providers. “We are delighted that Homes England has made this significant announcement that will create over 73,000 new homes and provide Vistry, its partners and the wider sector with a much-needed stimulus. “We already operate in all of the Established Mayoral Strategic Authorities and have established relationships with 29 of the 32 other strategic partners announced this morning. We look forward to continuing to work with Councils and Homes England to meet local ambitions to increase housing supply at pace.” The £350 million allocation comes at an important point for Vistry as the group continues to focus its business around partnership-led residential development and affordable housing. The company has recently warned that it expects to report a first-half pre-tax loss of around £30 million following a series of measures designed to strengthen cash generation and reset its balance sheet. Average daily net debt has approached £800 million, while around £50 million of charges are expected from measures including increased sales discounts, accelerated asset disposals and write-downs on lower-margin developments. Vistry has also prioritised faster payments to suppliers as part of the financial reset. Against this backdrop, the new Homes England funding provides greater visibility for Vistry and its partners over future affordable housing delivery. With £350 million allocated through the ten-year programme, the agreement gives Vistry a significant platform to work with local authorities and housing providers on new residential developments, supporting the Government’s wider ambition to increase the supply of social and affordable homes across the country. Building, Design & Construction Magazine | The Choice of Industry Professionals

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South Coast industrial market delivers strong first half of the year

South Coast industrial market delivers strong first half of the year

The Southampton and South Coast industrial and logistics market has delivered a strong performance in H1, according to figures by global real estate advisor CBRE. CBRE Southampton let a total of 320,000 sq ft of space in eight transactions across the region, which included Yunex Traffic taking 160,000 sq ft of space at Bournemouth Airport, the largest letting on the South Coast so far this year. The site will serve as Yunex’s UK headquarters after it relocated from an existing site in Poole. Other key transactions included two units at Sonar in Portsmouth at a combined 30,196 sq ft, which were taken by global engineering and infrastructure firms and brought the development to 60% occupancy, while 37,000 sq ft was also let at Penta Park and 28,000 ft2 at Proxima Park (Phase 1), which took both estates to full occupancy. Southampton’s positive figures mirror the progress seen across the wider South East region, where H1 take-up was 1.2m sq ft. A further 615,000 sq ft of space was under offer in the region at the end of Q2, a 61% increase quarter-on-quarter.* Nick Tutton, Director at CBRE Southampton, said: “We’ve seen a healthy amount of activity in the first half of the year which demonstrates resilient occupier demand and whilst vacancy rates have increased across most regions over the previous quarters, we are anticipating the limited development pipeline and sustained take-up levels on the South Coast will cause vacancy rates to fall during the rest of 2026.” CBRE’s UK Real Estate Market Outlook Midyear Review is available here. Building, Design & Construction Magazine | The Choice of Industry Professionals

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VINCI UK Delivers Record Growth as Profit Surges Following Major Group Integration

VINCI UK Delivers Record Growth as Profit Surges Following Major Group Integration

VINCI Construction Holding UK has reported a significant rise in profitability following the successful integration of its UK businesses, with pre-tax profit climbing 51% to almost £100 million as revenue approached the £3 billion mark. The strong financial performance comes after the French-owned infrastructure group completed a major corporate restructuring, bringing together Eurovia, Ringway, Taylor Woodrow, VINCI Building, VINCI Facilities and newly acquired FM Conway under a single UK operating structure. Combined revenue, including joint ventures, increased by almost 20% during 2025 to reach £2.9 billion, reflecting robust demand across highways, civil engineering, construction and infrastructure markets. For the construction sector, the results demonstrate the benefits of strategic consolidation, with improved operational efficiencies and stronger project delivery contributing to higher profitability across the enlarged business. Operating margins more than doubled during the year, rising from 1.7% to 3.5%. The improvement was driven by stronger performances across several divisions, including the return of the facilities management business to profitability and increased margins within Taylor Woodrow’s civil engineering operations. FM Conway made the largest contribution following its acquisition at the end of January, adding £569 million in revenue and almost £39 million in operating profit to the enlarged group. Among VINCI’s established businesses, highways maintenance specialist Ringway once again delivered one of the strongest operating performances, while Taylor Woodrow increased its operating profit contribution from £17 million to £19 million as investment in major infrastructure projects continued. Eurovia also delivered a solid trading performance during the year. However, VINCI Building and VINCI Facilities continued to face challenges associated with legacy projects, which constrained profitability despite generating combined revenues of more than £1.1 billion. The enlarged group also expanded its workforce significantly, with employee numbers rising by more than a third to almost 9,000 people following the integration of FM Conway into the business. Scott Wardrop, Chief Executive of VINCI Construction Holding UK, said: “These results are a credit to the six core operating business managing directors, their respective senior management teams in each of our principal operating businesses and all our teams in our business units and projects. “We have all endured significant change in our careers, but this intense period is unprecedented. “However, we are optimistic, and we have three-year plans for each business and each business unit, and plan to deliver +4.0% in 2026. “We will keep evolving through optimisation, innovation and transformation and continue to develop into a strong and resilient dynamic UK infrastructure group.” The results reinforce VINCI’s position as one of the UK’s largest construction and infrastructure businesses, with expertise spanning highways, civil engineering, commercial building, facilities management and major infrastructure delivery. As investment continues across transport, utilities, commercial property and public sector infrastructure, VINCI Construction Holding UK enters the next phase of its growth with a strengthened balance sheet, an expanded workforce and a diversified portfolio capable of delivering complex projects across the built environment. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Mears Builds Record £4.2bn Pipeline Following Major Housing Contract Wins

Mears Builds Record £4.2bn Pipeline Following Major Housing Contract Wins

Mears has strengthened its position as one of the UK’s leading housing maintenance providers after securing more than £1.4 billion of new work during the first half of the year, driving its order book to a record £4.2 billion. The public sector housing specialist continues to expand its long-term maintenance portfolio after a series of major contract awards and renewals, reinforcing confidence in the company’s strategy despite a temporary dip in profits linked to the mobilisation of new contracts. Revenue reached £560 million during the period, while adjusted pre-tax profit stood at £29 million. Although margins eased slightly to 5.2% from 5.6%, the company attributed this to the costs associated with mobilising several significant long-term contracts. Among the largest awards was a landmark 10-year, £450 million contract with Birmingham City Council. Under the agreement, Mears will deliver a comprehensive range of housing services, including responsive repairs, void property works, gas servicing, heating installations and planned maintenance across the authority’s housing stock. The company also secured a further 10-year contract with Rooftop Housing Group worth £150 million, providing repairs and maintenance services to approximately 7,000 homes across South Worcestershire and North Gloucestershire. Alongside these new appointments, Mears successfully retained several key long-standing partnerships, including contracts with Cross Keys Homes, Livin, Leeds City Council, Moat Homes and Thurrock Council. Together, these renewals contributed more than £1 billion of additional work to the company’s expanding pipeline. For the construction and housing sectors, the results underline the continued demand for long-term asset management, planned maintenance and compliance services as housing providers invest in improving existing homes, enhancing building safety and maintaining regulatory standards. Mears also completed the integration of consultancy Pennington Choices during the period, strengthening its expertise across compliance, asset management and building safety services. The acquisition enhances the group’s ability to provide integrated solutions to local authorities and registered housing providers. In line with its strategic focus on housing, the company also completed the sale of its non-core facilities management business for £18 million, allowing it to concentrate resources on its core maintenance and housing services operations. Chief Executive Lucas Critchley said: “Mears has continued to make strong progress against its key strategic objectives.” The company also noted that an intensive two-year programme of rebidding existing contracts has now largely concluded. As a result, its bidding teams are increasingly able to focus on pursuing new opportunities rather than defending existing work, providing further potential for future growth. Looking ahead, Mears has reaffirmed its full-year guidance, forecasting revenue of around £1.04 billion and adjusted pre-tax profit of approximately £51 million. With a record order book, strengthened building safety capabilities and a growing portfolio of long-term maintenance partnerships, Mears appears well positioned to play an increasingly significant role in supporting the management, maintenance and improvement of the UK’s public housing stock. Building, Design & Construction Magazine | The Choice of Industry Professionals

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CBRE finds buyer for Noble Foods’ production site in multi-million-pound deal

CBRE finds buyer for Noble Foods’ production site in multi-million-pound deal

Leading commercial real estate firm, CBRE, has successfully completed the sale of 115,000 sq ft industrial site in a multi-million pound deal on behalf of the seller, Noble Foods. Previously used as an egg-packing facility, the self-contained site features all the necessary facilities for a manufacturing operation including two office buildings, two warehouses, 19 loading bays and additional storage buildings. The site also came with 15.2 acres of vacant land with outline planning permission to build additional warehouses already granted. Based in the heart of Oxfordshire’s industrial hub, the site is adjacent to Lakeside Industrial Estate in rural Witney. It also has excellent connections, with access to both the A40 and A420, making it easy to get to nearby Oxford, only 13 miles away, and beyond. Will Davis, associate director at CBRE, said: “This deal reflects the strong demand for industrial space both in Witney and across wider Oxfordshire. A self-contained site of this size is incredibly rare, especially in such a popular location. The fact it came with outline planning permission for additional warehouses was the cherry on top and made it the perfect site for a business looking to expand its operations.” Will Cadbury, Chief Financial Officerat Noble Foods, said: “When our Witney site became surplus to requirements, we were keen to find the right buyer who would be able to make the site purposeful again. The sale marks the start of an exciting new chapter for the Witney site and we’re grateful to CBRE for their support in structuring this deal.”   Building, Design & Construction Magazine | The Choice of Industry Professionals

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Pipeline perks up as project starts plateau

Pipeline perks up as project starts plateau

Short-term economic easing indicates construction sector recovery still on track for 2027 Today, Glenigan | A Hubexo Product (Glenigan), one of the construction industry’s leading insight and intelligence experts, releases the August 2026 edition of its Construction Review. The August Review focuses on the three months to the end of July 2026, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted. It’s a report providing a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the past year. Glenigan’s August Construction Review reveals a few rays of sunshine poking through an otherwise overcast industry landscape. It will provide some much-needed optimism to a sector that has been battling an extraordinary set of headwinds since the start of the year. A massive jump in Main Contract Awards, which rose 17% against the preceding three months, and soared a staggering 169% compared to 2025, is perhaps the strongest indicator that market confidence is returning. This can, in part be attributed to an activity spike in major projects, particularly in the healthcare, where various schemes in the New Hospital Programme reached the contract awarded stage. This includes the Leighton Hospital scheme, the Frimley Park Hospital as well as various others. Similarly, if somewhat more modestly, Detailed Planning Approvals picked up by 10% during the Review period and, despite dipping 3% year-on-year, this modest rise compared to the previous month indicates the pipeline is gradually refilling. It certainly offers a tentative sign that recovery, if not immediate, is on the horizon, echoing Glenigan’s own Forecast prediction of an 11% sector-wide performance increase in 2027.  The refreshingly positive stats in the August Review can be largely credited to substantial gains in a number of commercial verticals, particularly Hotel & Leisure, as well as an acceleration of activity in both public sector and civils. However, before contractors and subcontractors get dazzled by these strong figures, it appears that intent is yet to properly translate into activity. Project starts are still stubbornly stagnant as the appetite to commit shovel to soil remains subdued, against a backdrop of lukewarm investor confidence and renewed uncertainty around public spending. This resulted in a 7% drop against the previous three months. Yet, whilst activity remains low, there are signals that a long period of decline is starting to bottom out, with levels breaking even (0%) compared to 2025. Looking at the results, Allan Wilen, Glenigan’s Economics Director, says, “There are plenty of reasons for readers to be cheerful when going through the August Review, especially following such a tumultuous and unpredictable six-months. Whilst a degree of uncertainty persists, labour and material costs are stabilising. Industry prospects appear to be turning a corner, but, before we get too excited, these green shoots are fragile and, as we’ve seen before, could wither away on the merest market change.” He continues, “the construction supply chain should stay mindful that the recovery will be shaped by wider economic conditions, investor confidence and public sector spending priorities. Remember, in spite of the excellent Main Contract Awards and Planning Approval figures, conversions into actual starts remains the litmus test of the sector’s performance over the back end of the year.” Taking a closer look at vertical highlights… Residential: Housebuilding slips as social housing steadies the ship Residential had a bruising three months, with project starts sliding 39% year-on-year even as main contract awards jumped 60% and detailed planning approvals eased back 22%. Private Housing bore the brunt, tumbling 52% to £2,434m despite holding a 40% share of the sector, while Private Apartments dipped 23% to £1,630m and Social Sector Housing softened 27% to £821m. The awards uplift hints at work waiting in the wings, though the sharp fall in starts underlines the ongoing pressure on near-term workloads. Regionally, London held top spot with starts worth £1,250m, even after a 16% dip. The North West proved the steadiest performer, barely moving at £962m with just a 1% decline. Elsewhere the picture soured, project starts in the South West, West Midlands and Wales all declined sharply against the previous year. However, Wales offered a rare bright spot, posting strong growth in planning approvals that points to a healthier pipeline further down the line. Private non-residential: Offices and hotels shine while industrial cools Private non-residential was a real mixed bag. Offices held firm, with starts dipping just 3% but approvals climbing 54% on the back of a buoyant mid-market: the £20-50m band rose 18% to £627m and the £50-100m band leapt 80% to £361m. Hotel & Leisure told a similar tale, with main contract awards rocketing 787% and approvals up 56%, even though starts eased at 17%. Industrial had a tougher time, with starts down 43%, though a 147% surge in approvals signals a pipeline gathering pace. Retail stayed muted, with starts off 16% but awards up 72%. Regionally, London ruled office activity, with value soaring 30% to £1,531m. The East of England led Industrial starts, up 218% to £465m, while Yorkshire & the Humber topped Hotel & Leisure at £178m and Scotland jumped 177% to £123m. The North West led Retail, climbing 223% to £50m, with Yorkshire & the Humber and Northern Ireland also enjoying strong runs against the previous year. Public sector: Health leads the charge as schools await their moment The public sector offers plenty of cheer. Health stole the show, with starts up 32%, awards rocketing 634% and approvals climbing 65%, buoyed by the New Hospital Programme and NHS capital commitments. Hospitals made up more than half of starts, rising 75%, while Nursing Homes & Hospices climbed 44%. Community & Amenity also impressed on paper, with awards up 182% and approvals up 95% despite starts falling 34%, led by blue light projects and a 466% surge in military work. Education was the odd one out, with starts down 44%, though a 204% jump in awards and the Schools Rebuilding Programme point to brighter days ahead. Regionally, the South East led Health starts

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Government procurement simplification welcomed by Pagabo Group CEO

Government procurement simplification welcomed by Pagabo Group CEO

By Amman Boughan, CEO at Pagabo Group. Members of the new Labour cabinet are busy making their arrival known, with announcements coming thick and fast. Procurement has been a frequent talking point for prime minister Andy Burnham since his resurgence and rise to the top of government. However, talking is one thing and issuing a procurement policy note (PPN) is another. With that in mind, we wholeheartedly welcome and are encouraged by the direction of travel that the government is embarking on with the announcement of PPN 026 – the social value model – this week. The direction of travel, to simplify the model, helps to cut the red tape that locks smaller firms out, and focuses squarely on jobs, skills and community impact, which is what the Pagabo Group has been championing for a decade across wider public procurement. Continued simplification of an industry that is often overcomplicated can unlock so much opportunity. As our strapline goes: ‘Simply better procurement.’   Our focus has always been on helping the public sector deliver outcomes faster and creating impact where communities need it most. The government wants to back British jobs and skills in every postcode, so that’s exactly what its new weighting in public contracts will help achieve. Though it’s vital that social value is measured and proven, not just promised, as we’ve been advancing through our digital operating system. We don’t have long to wait until the rules begin to apply and we stand ready to be a partner in leading the change that the government wants to see. Building, Design & Construction Magazine | The Choice of Industry Professionals

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Peel Launches £582m Takeover Bid for Brownfield Regeneration Specialist Harworth

Peel Launches £582m Takeover Bid for Brownfield Regeneration Specialist Harworth

Peel Group has launched a £582 million cash bid to acquire Harworth Group, offering shareholders 172.5p per share in a move that could reshape the future of one of the UK’s leading brownfield regeneration and strategic land developers. The offer values the listed developer at approximately £582 million and comes as Peel, already Harworth’s largest shareholder through subsidiary Goodweather Holdings, looks to take full control of the business. Goodweather currently owns around 29.96% of Harworth’s issued share capital. Harworth has established itself as a major player in the UK’s regeneration sector, with a portfolio comprising modern industrial and logistics assets alongside extensive strategic land holdings across the North of England and the Midlands. The business has played a significant role in transforming former industrial sites into employment, residential and mixed-use developments, including securing planning approval last year for its £190 million Gascoigne Interchange scheme. However, Peel believes the company’s current financial model is becoming increasingly difficult to sustain, citing rising administrative and financing costs alongside weakening recurring rental income. For the year ending 31 December 2025, Harworth reported administrative expenses of £36.34 million and net interest costs of £10.6 million, representing increases of 9.5% and 58.2% respectively compared with the previous year. During the same period, rental income from its investment portfolio fell by 7% to £14.7 million. Peel argues these figures demonstrate growing pressure on Harworth’s cash flow, with operating and financing costs significantly exceeding the income generated from its investment portfolio. The proposed acquisition also reflects Peel’s view that Harworth’s stock market listing no longer provides meaningful strategic benefits. The investor points to the company’s concentrated shareholder base, with the three largest shareholders controlling approximately 75.7% of the business, limiting trading liquidity and reducing the advantages typically associated with being publicly listed. Peel further noted that Harworth has not raised new equity for almost a decade and believes current market conditions, combined with what it describes as a persistent discount to the company’s underlying value, make future equity fundraising unlikely to deliver attractive returns. The cash offer represents a substantial premium for shareholders, equating to 36.9% above Harworth’s one-month volume-weighted average share price and 36.0% above the three-month average. For the construction, development and property sectors, the proposed acquisition could have significant implications. Harworth has become one of the UK’s foremost brownfield regeneration specialists, delivering large-scale industrial, logistics, residential and mixed-use developments that support regional economic growth while unlocking previously underutilised land. Should the transaction proceed, Peel would gain full ownership of a substantial regeneration pipeline and strategic land portfolio, further strengthening its position within the UK’s development and regeneration market. The proposed takeover also highlights the continuing attractiveness of long-term regeneration assets, as investors seek to secure development opportunities capable of delivering future residential, commercial and industrial growth across key regional markets. Building, Design & Construction Magazine | The Choice of Industry Professionals

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