Landsec Strikes £516m Metrocentre Deal as Major Retail Investment Accelerates
Landsec has exchanged contracts to acquire 100% ownership of Metrocentre in Gateshead for £516 million, securing control of one of the UK’s largest shopping and leisure destinations as it steps up investment in major retail assets. The landmark transaction will add approximately 1.86 million sq ft of lettable floorspace to Landsec’s portfolio, with Metrocentre currently home to 282 stores and generating annual retail sales of around £650 million. The acquisition also includes the neighbouring retail park, providing a further 200,000 sq ft of retail accommodation across 15 units and creating a substantial combined property holding in one of the North East’s most established commercial locations. Metrocentre is currently 95% occupied, with an average lease term of 4.5 years to expiry. Its extensive occupier line-up includes Apple, Sephora, Zara, Marks & Spencer, Bershka, Stradivarius, Next, Lego, Primark, JD Sports and Lefties. For Landsec, the £516 million purchase represents a significant step in its strategy to invest a further £1 billion in major retail destinations. The property group believes the strongest shopping centres are benefiting from a continued shift among leading brands towards fewer but larger and higher-quality stores in locations capable of attracting substantial customer numbers. Mark Allan, chief executive officer of Landsec, described Metrocentre as a rare opportunity to take full control of a top-10 UK shopping centre, highlighting its scale, catchment and attractiveness to major retailers. He said: “Growing our investment in major retail destinations remains our highest conviction call, given the high income yields and attractive income growth on offer for the right assets.” The acquisition comes against a backdrop of strengthening performance across Landsec’s existing retail portfolio. Lettings completed during the five months to 31 August 2026 have been ahead of estimated rental value, while relettings and renewals have also achieved increases against previous passing rents. Landsec continues to anticipate like-for-like net rental income growth of approximately 3% to 5% for the financial year ending 31 March 2027. From a property and built environment perspective, taking full ownership of Metrocentre also gives Landsec greater control over the long-term management, investment and evolution of the destination. As consumer habits continue to reshape the retail property market, major shopping centres are increasingly being repositioned as broader destinations combining retail with food, leisure, entertainment and enhanced customer experiences. Control of large sites can provide landlords with greater flexibility to invest in buildings, public spaces, occupier requirements and future redevelopment opportunities. Landsec said retail sales across its existing major retail platform have increased by 26% since March 2022, compared with 1% across the average UK market, while occupancy across its major retail portfolio has reached a two-decade high. The Metrocentre transaction is expected to be funded through a combination of an equity issue and Landsec’s existing debt facilities. CBRE advised Landsec on the acquisition, while Knight Frank acted for the vendor. The £516 million deal provides another major vote of confidence in the future of the UK’s strongest physical retail destinations, with Metrocentre now set to become a significant part of Landsec’s expanding retail property portfolio. Building, Design & Construction Magazine | The Choice of Industry Professionals
Adaptogen Capital deepens its pipeline with 2GW of investment opportunities as European battery storage expansion accelerates
Adaptogen Capital, a specialist investment firm at the forefront of the energy transition, is pleased to announce the next phase of its European growth strategy, as it targets €1bn of investment opportunities by 2030 across European Battery Energy Storage (BESS) markets. Highlights: Adaptogen Capital today sets out its continued expansion into continental Europe, having built a pipeline of Belgian opportunities through its operating platform MVA Energy, that address grid congestion and the integration of growing renewable generation, alongside a parallel German pipeline. The firm’s approach is structured around project-specific capital commitments at FID, allowing infrastructure investors the opportunity to back firm connection projects with low grid fees once development and permitting risk has been substantially reduced. Investor appetite for European battery energy storage is strengthening as power market volatility, geopolitical and inflation concerns, rising renewable penetration and growing grid constraints reinforce the role of storage as critical energy infrastructure. With relatively few specialist BESS managers operating at scale across the region, Adaptogen believes its project-led approach is well aligned with the needs of infrastructure investors seeking exposure to the central asset class in the next phase of the energy transition. Adaptogen’s European ambitions build directly on its UK experience. The firm’s original fund closed in 2023 and has since been fully deployed to develop, construct and operate grid-scale BESS assets through its Varco Energy platform, with 350MW on track to be operational by 2028 and a further 275MW in development. Battery energy storage is increasingly recognised across Europe as critical infrastructure for balancing intermittent renewable generation and easing grid congestion. Adaptogen’s disciplined, project-led approach to capital deployment is intended to support that transition as it extends its strategy beyond the UK. James Mills, Managing Director, Adaptogen Capital, commented: “Across Europe, grids are under growing pressure from the pace of renewable build-out, and that is creating a clear investment case for well-located, grid scale battery storage with firm connections, backed by sensibly structured revenue and debt facilities. We have spent the past three years building a pipeline that targets that opportunity, and our approach of committing capital once projects have reached final investment decision allows infrastructure investors to back assets where development risk has already been substantially reduced. Our experience delivering and operating storage assets in the UK through Varco Energy gives us a strong foundation as we extend that model into continental Europe.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Pexhurst crosses the finish line on luxury Tritax refurb
SPECIALIST refurbishment main contractor Pexhurst has completed a one-of-a-kind project for Tritax Private Markets in Oxfordshire. The circa £5 million warehouse refurbishment has been delivered for a leading luxury car manufacturer that is becoming the property’s new occupier. More than 166,000 sq ft has been refurbished to meet a high-quality specification, dividing the warehouse from a storage facility into storage and a restoration workshop and customer experience destination. Mary Regan, commercial and contracts manager at Pexhurst, said: “What started as a straightforward Cat B fit-out became a much more complex and rewarding refurbishment project to deliver. When the incoming tenant has a vision, our role is to bring that to life while retaining as much material as possible – to reduce waste and make the project more sustainable. “The technical installations and overall number of refurbishment measures mean that we have helped create a facility that is unrecognisable in comparison to what stood before.” A panel-based white wall system has been built within the warehouse – stretching 15 metres high and 90 metres wide – to double up as a high-grade fire-resistance feature and a physical division between different areas of the building. To create the necessary storage system for the incoming tenant, Pexhurst also managed the installation of a brand-new racking and mezzanine structure with the attachment of a goods lift on behalf of the tenant. Areas initially planned for demolition were retained, while enhanced facilities for future building users were added into the scheme, including a canteen and new showers. Alongside typical refurbishment measures, Pexhurst installed several environmental measures such as PV panels and EV chargers, along with building fabric improvements such as new roof lights, windows, doors and roller shutters. Contributing to the project’s sustainability target to achieve BREEAM Very Good rating, Pexhurst continued supporting successful partnerships with reuse scheme The Pallet Loop and social enterprise Men’s Sheds. By working closely with subcontractors on site to increase circularity, Pexhurst was able to recover more than 500 pallets throughout the project, and 500m2 of carpet tiles stripped out during the refurbishment have since been used in social housing construction projects. Vinyl offcuts were also donated to Recofloor, contributing to closed loop recycling efforts, and several bug hotels were installed during Pexhurst’s time on site to enhance local biodiversity. When visited by the Considerate Constructors Scheme, the project received a near perfect score of 41 out of a possible 45. Meanwhile, social value activity included donations to Didcot Baptist Church Foodbank and Oxford Hub. Tom Newton, director development at Tritax Management LLP, said: “We’re pleased to have given this asset a new lease of life and agreed a new letting with a valued new customer all with the support of Pexhurst. Their professionalism, flexibility and ability to respond positively to changing requirements ensured the project was delivered successfully and made them an excellent partner to work with throughout.” To learn more about Pexhurst, visit www.pexhurst.co.uk. Building, Design & Construction Magazine | The Choice of Industry Professionals
Summerfield completes 320 homes at Killams Park development with £3.6m community investment
Taunton-based Summerfield Homes has completed construction on all 320 new homes on its flagship development at Killams Park in Somerset where it has invested an additional £3.6m in the local community. The end of construction comes after a decade of work across three phases, creating a vibrant community in a range of accommodation as well as extensive green space, meadows, orchards and wildlife corridors. Latest additions to the development include more children’s play equipment and the Killams Park Art and Nature Trail. Each piece of the Art Trail was meticulously designed to represent the wetland, woodland, farmland, and wildlife of the historical location and is approximately a 2.5K walk around Killams Park. As part of the development, Summerfield has delivered 86 affordable and discounted homes. Sixty of these were made available through housing association partners for shared ownership and social or affordable rent. A further 26 were sold through Summerfield’s own MyHome scheme at 30% below market value, helping eligible local buyers achieve home ownership without paying rent on the discounted share. Summerfield worked closely with Somerset Council to fulfil the S106 planning commitments attached to consent for the development. The £3.66m investment included £2.25m towards education, £414,112 for footpaths and cycle routes, £501,550 for community halls and facilities, £459,732 for green spaces and parks and £36,914 for public art and the nature trail. The wider 22-hectare development includes around eight hectares of open space, with more than 1,000 new trees, wildflower meadows and grass areas, an orchard, children’s play areas and an enhanced wildlife corridor along the Blackbrook stream. New and improved walking and cycling routes connect residents with Taunton and the surrounding countryside. All the homes are built with energy savings and a greener future in mind. Key features include double-glazing, insulation on doors, low-energy lighting, counterflow heat exchangers, EV charging points, gardens and bee and bat boxes. James Holyday, Group Managing Director of Summerfield, said: “Completing construction at Killams Park is a significant milestone for Summerfield and for everyone who has helped bring this major development to life over the past decade. “Working alongside Somerset Council, Abri Homes, Sovereign, Magna Housing and other partners, we have created a varied and welcoming neighbourhood; investing in affordable housing, education, community facilities, green space and sustainable travel that will benefit the area for generations. “We are extremely proud of what has been achieved and grateful to our residents, partners, consultants, contractors and the local community for their support throughout the development”. Building, Design & Construction Magazine | The Choice of Industry Professionals
Construction ranks among UK’s fastest-growing industries, new report finds
Construction has emerged as one of the UK’s top six fastest-growing industries, according to new data ranking sectors by growth over the past five years. To determine the fastest-growing industries in the UK, the Booming Industries research by Approved Business Finance analysed Office for National Statistics (ONS) business population data to assess five-year average annual growth across 615 industries. These were grouped into 19 broader industry categories by Standard Industrial Classification (SIC) codes – the system used to classify businesses according to their main economic activity. Industry category Average five-year growth rate (%) Electricity, gas, steam and air conditioning +12.5% Real estate +4.2% Information and communication +3.5% Human health and social work +2.8% Water, sewerage and waste management +1.8% Construction +1.5% Accommodation and food services +1.2% Professional, Scientific and Technical +0.8% Administrative and support services +0.3% Education +0.1% Construction made the top six of the rankings, with an average five-year growth rate of 1.5%. The Construction Workforce Outlook forecasts further growth over the next four years, with the sector currently valued at £230 billion. In fact, the research found that Construction also ranks fourth for average five-year turnover growth, increasing by 9.64% over the same period. In first position is electricity, gas, steam and air conditioning, which recorded a standout 12.5% average annual growth rate over five years, nearly three times that of the second-placed sector, real estate (4.2%). Given recent influences like the UK heatwave and rising energy costs, businesses and consumers are increasingly making climate-conscious decisions, which naturally supports the growth and function of this sector. The real estate sector followed second with the aforementioned growth rate of 4.2%, and the information and communication sector placed third with a 3.5% growth rate. Outside of the top three, other industries have still seen strong growth rates. Human health and social work saw a 2.8% increase, followed by water, sewerage and waste management at 1.8%. On the other hand, traditional industries are facing pressure, led by mining and quarrying, which saw a decline of 4.2%, followed by financial and insurance, which saw a 2.5% decline, and manufacturing, which saw a 1.2% decline. Commenting on the research, Mark Kozo, commercial director of Approved Finance Group, said: “Our data shows that while some industries are expanding rapidly, growth is far from being evenly distributed across the UK economy. “For businesses operating in growth sectors, the challenge now is turning favourable market conditions into sustainable expansion. “Whether it is investing in new equipment, taking on additional staff, increasing stock, or moving into larger premises, growth often requires capital before the additional revenue arrives. “For SMEs in particular, having access to the right finance at the right time can be crucial to making these opportunities happen. Rather than waiting until cash flow becomes a barrier, businesses should consider where investment could help them increase capacity and improve efficiency. “Whether it’s new machinery or equipment, to avoid placing the full cost on existing cash reserves, asset finance can provide a way to spread the cost of essential investments while supporting continued growth. “With the UK’s fastest-growing industries showing where demand and investment are building, businesses that can identify these opportunities earlier and have the financial flexibility to act on them may be better placed to turn industry growth into their own competitive advantage.” Building, Design & Construction Magazine | The Choice of Industry Professionals
“Modulek Delivers Landmark Sports Pavilion for Skanska at Deepcut Barracks Regeneration”
The former military site at Princess Royal Barracks, located in Deepcut, Surrey, has been transformed into a community village, creating homes for over 2,800 residents, through a partnership between the Defence Infrastructure Organisation and Skanska. To support the growing community at Mindenhurst, Modulek has successfully designed and delivered a new permanent modular sports pavilion as part of this significant regeneration project. The Pavilion is part of the Sports Hub, which features a range of high-quality public amenities, including: The new single-storey building provides approximately 800m2 of total area below the canopy and 421m2 useable internal area of high-quality sports and community accommodation. This includes modern changing rooms, washroom facilities and a spacious social and function area, creating a focal point for the new residential community. Modulek was appointed by Skanska, through a competitive design-and-build procurement process. Working to an existing architectural design and a highly constrained programme, Modulek worked in close collaboration with Skanska teams in moving this project towards the final phases of this significant regeneration project. The project demonstrates how permanent modular construction can provide a high-quality, cost-effective alternative to traditional building methods, delivering programme certainty without compromising architectural quality. One of the defining features of the pavilion is its striking external appearance. Maintenance-free Rockpanel wood-effect cladding and innovative roof overhangs create a contemporary building that challenges traditional perceptions of modular construction, achieving an aesthetic fully aligned with the aspirations of the client and the wider development. Construction was undertaken within a challenging site environment on the edge of a sports pitch, with no permanent site services available. A temporary access road was created to facilitate deliveries, while a 150-tonne crane was used to install the building’s eleven factory-manufactured modules. To speed up installation, the main canopy sections were formed as part of the modular structure, achieving cantilevered overhangs of up to 5 metres. Sustainability was a key focus throughout the project from, concept to completion. The building, which is on course for a BREEAM Very Good rating, incorporates extensive rooftop solar photovoltaic panels. Environmental performance was carefully monitored throughout construction, including recording on-site water usage and contractor travel distances to minimise the project’s overall carbon footprint. Stephen Pester, Commercial Director at Modulek, commented: “This project perfectly demonstrates the benefits of modern modular construction when programme certainty, quality and architectural design are equally important. Being appointed at a critical stage of the project presented our team with an exciting challenge. Working closely with Skanska, we were able to deliver a permanent building that not only met an extremely demanding programme but also achieved the high-quality finish and sustainability standards expected of such an important community facility that will be transferred to Surrey Heath Borough Council as part of the Section 106 Planning Obligations We are incredibly proud of what the entire team achieved and of the collaborative relationship developed with Skanska throughout the project.” Toby Hunt, Commercial Manager, Skanska UK commented: “Despite the early set back of losing their original modular sub-contractor, Modulek acted quickly to ensure a replacement was appointed. Skanska were pleased with the proactive can-do attitude displayed by the Modulek team, as well as the efforts taken to keep the costs within the original agreed budget. The Modulek design team embraced new challenges to deliver a BREEAM Very Good rated building, and their site team and supply chain’s hard work created a smart and well finished modular sports pavilion’’ The completed pavilion represents the final stage of the Deepcut Barracks regeneration programme, providing a modern community sports facility that will serve residents for many years while showcasing the capabilities of high-quality offsite construction. Building, Design & Construction Magazine | The Choice of Industry Professionals