£350m Rackhams Revival Set to Bring 500 New Homes to Heart of Birmingham
A landmark former Birmingham department store is set for a major new chapter as Sphere Group advances plans for a £350 million mixed-use transformation of the Rackhams site in the heart of the city. The Birmingham-based developer, formerly known as Court Collaboration, is preparing to unveil its latest vision for the former department store and neighbouring buildings at One Temple Row and 43 Temple Row. More than 500 new homes are proposed alongside approximately 225,000 sq ft of modern office accommodation, with new retail, restaurants and cafés planned at street level. Sphere Group is acting as development partner for freehold owner Legal & General, with global architecture and design practice Gensler responsible for the mixed-use masterplan. Central to the proposals is the regeneration of a prominent but underused part of Birmingham city centre, combining new residential and commercial uses with improvements to the public realm. New public spaces are intended to create greater activity around the development and strengthen connections with the surrounding streets. The plans represent the latest evolution of proposals for the site. Earlier environmental scoping work examined the potential for a larger development of up to 650 homes and approximately 380,000 sq ft of offices. The emerging scheme retains a substantial residential component while reducing the amount of proposed commercial floorspace. Thomas Taylor, managing director at Sphere Group, said the developer was looking forward to presenting the plans and discussing them with Birmingham’s community. He described the project as urban regeneration centred around high-quality design, attractive public realm and new commercial spaces, with the potential to provide modern workplaces, homes, retail and improved public areas. The development is expected to represent approximately £350 million in gross development value and could support around 1,300 jobs, adding a significant new residential and employment component to the city centre. The transformation of Rackhams also sits within Birmingham City Council’s wider Central Heart vision, which seeks to rethink around 17 hectares of underused retail and commercial land within the city centre. The wider strategy reflects the changing role of UK city centres as traditional retail locations evolve towards more diverse neighbourhoods combining homes, workplaces, hospitality, leisure, culture and public space. For Birmingham, the Rackhams proposals could provide a significant example of that transition. Rather than allowing a major former retail landmark and its surrounding commercial buildings to remain underused, the project would introduce hundreds of residents alongside employment space and active ground-floor uses. With Gensler shaping the masterplan and Sphere Group leading the development on behalf of Legal & General, the £350 million scheme has the potential to become an important component of Birmingham’s next phase of city centre regeneration. Building, Design & Construction Magazine | The Choice of Industry Professionals
Starlight Secures £680m War Chest to Deliver More Than 6,000 UK BTR Homes
Starlight Investments has completed the closing of its second UK Build to Rent fund, securing £680 million in total capital commitments to support the acquisition and delivery of more than 6,000 rental homes across the country. The capital has been raised through Starlight UK BTR Fund II alongside ancillary investment vehicles, providing significant backing for the global real estate investor’s continued expansion within the UK purpose-built rental market. The fund is already partially deployed, with three major residential communities currently under construction. Two are located in Manchester, while a further development is progressing in Basildon, Essex. Among Starlight’s growing pipeline is Trinity Heights in Manchester, a 60-storey BTR tower approaching completion, alongside The Mercantile in Basildon and another major rental community under construction within Manchester’s Greengate neighbourhood. The latest fundraising represents another substantial injection of institutional capital into the UK’s rapidly expanding BTR development sector. Investors participating in Fund II include institutions from Europe, Asia-Pacific and Canada, combining existing Starlight investment partners with several new entrants. Significantly, the fund has also attracted government-backed investment. Earlier this year, the National Housing Bank, part of Homes England, committed £100 million as a cornerstone investor in Fund II. The investment is intended to help accelerate Starlight’s pipeline of rental housing in locations where housing supply remains constrained. Starlight’s strategy is focused on professionally managed rental communities across major regional cities including Manchester, Liverpool and Leeds, together with locations within the London commuter belt. Developments are being targeted towards areas with strong rental demand and access to employment, education and transport infrastructure. The company’s wider UK platform now comprises 12 BTR communities at various stages from development and construction through to leasing and operation. Starlight says its expanding pipeline is expected to place the business among the UK’s four largest BTR operators by scale as further developments become operational. Jonnie Milich, Head of UK Residential at Starlight Investments, said the closing would allow the business to concentrate on execution and the next phase of growth, supported by an established development pipeline and expanding UK team. The investment comes as institutional capital continues to play an increasingly important role in bringing forward large-scale rental housing. For the construction and residential development markets, Starlight’s £680 million capital raise provides substantial funding capacity for thousands of new homes, creating a significant future pipeline for architects, contractors, consultants and specialist supply chain businesses as schemes progress. Starlight has operated in the UK since 2020 and, as of May 2026, managed around 4,000 UK homes with approximately £1.1 billion of assets under management. Building, Design & Construction Magazine | The Choice of Industry Professionals
CIOB reacts to Vocational GCSE announcement
David Barnes, head of policy and public affairs at the Chartered Institute of Building (CIOB), said: “CIOB welcomes the announcement of new vocational qualifications which will benefit students who may struggle with more rigid academic routes. Construction is a unique industry which offers many great roles both site-based and office-based. “However, the Government has said Building and Construction could be included as an option, rather than confirming it will be. To help schools and industry plan, we need clarity on what that means, including how subjects will be selected, when consultation will take place and how employers and professional bodies will be involved. “Our latest research shows there is already a strong appetite among young people to learn more about construction, but that interest is not consistently translating into career choices. Two-thirds (66%) of 2000 16- to 24-year-olds we surveyed have a positive view of construction careers, yet only 30% would consider working in the sector. “Almost half (45%), however, said construction was not included in the careers advice they received while in education, so for these vocational courses to be successful they must be promoted to students and parents as viable options. “Consideration must also be given to the fact that further education establishments are already struggling to recruit teachers for built environment courses, so the Government will need to address the key question of where teachers with recent industry expertise would come from. “We hope ministers will set out a clear timetable for consultation and development, and work closely with industry and professional bodies to ensure any new qualification gives young people a meaningful introduction to the modern construction sector that challenges the perception that construction is solely about physically demanding, site-based work and instead showcases the wide range of professional careers available “We’re looking forward to contributing to that process and opening up meaningful routes to careers in the built environment.” Building, Design & Construction Magazine | The Choice of Industry Professionals
HTB comments: Planning approvals and housing completions
On the decrease in planning approvals, Neil Leitch, Managing Director, Development Finance at Hampshire Trust Bank, said: “This fall in planning approvals should surprise nobody when the system responsible for processing applications is operating under this much pressure. “Recent HBF research found that nine in ten local authority planning departments are understaffed, operating on average at just 80% of the capacity they say they need, while only one in five major applications is being determined within the statutory 13-week period. We are asking an under-resourced planning system to deal with an increasingly complicated development environment. Developers face substantial upfront costs before they have any certainty of securing consent, while planning teams themselves are having to navigate an expanding range of regulatory and policy requirements. You cannot continually add complexity at both ends of the process and expect homes to be delivered faster. “SME developers feel that particularly acutely. Delays tie up capital, increase pre-development costs and reduce the flexibility available elsewhere in a scheme. What is harder still is uncertainty around timing and outcome because that is much more difficult to price. With development appraisals already having to absorb higher costs and additional requirements, that can be the difference between a site progressing and an otherwise deliverable scheme falling out of the pipeline. “The Government’s investment in additional planning capacity is a start, but it needs to match the scale of the challenge. More planners are welcome, but reform only works if the system has the people and expertise to implement it. If we want to deliver 1.5 million homes, we need properly resourced local planning authorities, simpler processes and greater certainty around getting decisions made. Planning approvals are only the beginning. The real measure of success is whether those permissions can be converted into homes.” On the decrease in housing completions, Leitch added: “Nobody should be surprised that completions have fallen again. Completions are a lagging indicator, reflecting decisions taken months and often years earlier. Many of the homes reaching the finish line now were appraised and funded in a very different environment. The bigger concern is whether the schemes developers are looking at today still stack up. “Development has become more complicated and expensive, while the planning system remains unpredictable and inconsistent. If we are serious about building more homes, the Government cannot focus only on the finish line. It needs to create the conditions that give developers the confidence to invest in the schemes that will become tomorrow’s completions. That means a simpler, more predictable and more stable route from planning to construction.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Stepnell completes specialist mortuary facility
Healthcare specialist contractor Stepnell has completed construction of Northamptonshire’s new purpose-built county mortuary, delivering a highly specialised facility that is the first standalone development of its kind in England. Delivered for West Northamptonshire Council through the council’s framework partnership, the multi-million pound facility at Riverside Business Park has been developed in collaboration with University Hospitals of Northamptonshire NHS Group, Northamptonshire Coroner’s Service, Northamptonshire Police and local funeral directors. Bringing post-mortem services together under one roof in the county for the first time, the central hub will support coronial and forensic mortuary services across the region, reducing pressure on hospital sites, while also offering capacity to support cases from across the UK and internationally. Tom Sewell, director at Stepnell, said:“As the first standalone mortuary of its kind in England, this highly specialised facility demanded exceptional coordination from our healthcare delivery team.“The project required the seamless integration of complex mortuary systems and advanced scanning technology, alongside the creation of a building that delivers uncompromising technical performance while maintaining dignified spaces for bereaved families.” Designed with both operational excellence and family experience in mind, the facility includes dedicated viewing and identification rooms, cultural washing facilities and private spaces for bereaved families, helping to create a compassionate and supportive environment during difficult circumstances. The project presented several construction challenges, including building within a flood zone, protecting nearby wetlands and safely working around overhead power lines, requiring careful planning and close collaboration throughout the programme. Stepnell successfully secured silver in the Considerate Constructors Scheme, meeting the recently strengthened criteria. Tom added: “Working closely with West Northamptonshire Council and local project partners, and drawing on the expertise of our nearby Rugby head office, we’ve delivered a facility that will make a real difference to the communities it serves. It will play a vital role in supporting families and professionals through some of the most difficult circumstances.” Cllr Andrew Last, cabinet member for HR, corporate and regulatory services, said: “This facility is an important investment and has been built to support people at some of the most difficult moments in their lives. “This space allows us to provide care with dignity, improve how services connect, and support families in a more consistent and compassionate way, especially at a time where trust matters most. “That has only been possible because of the commitment and collaboration of partners across Northamptonshire, and shows what can be achieved when we come together with a shared purpose and a clear focus on doing the right thing.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Pluto Finance Hits £1bn Lending Milestone as BTR Investment Expands
Pluto Finance has reached £1 billion of cumulative lending through its flagship institutional lending vehicle, marking a significant milestone for the real estate finance specialist as it continues to support residential development across the UK and Europe. The milestone comes as Pluto provides development finance for a new Build to Rent scheme in the Midlands, further strengthening its exposure to the living sector at a time when institutional capital continues to play an important role in delivering new rental housing. Pluto Finance specialises in real estate private credit, providing development, bridging and investment finance across residential and commercial property. Since its formation in 2011, the business has deployed more than £4 billion across over 350 loans and has helped finance the delivery of more than 15,000 new homes. Its flagship lending strategy has increasingly focused on areas where housing supply remains constrained, providing capital to developers and supporting projects ranging from conventional residential development to purpose-built rental accommodation. The £1 billion milestone also reflects Pluto’s expansion beyond the UK. The lender now operates across markets including Ireland, Germany, the Netherlands, Spain and Portugal, as it develops a broader European real estate finance platform. Institutional backing has played an important role in that growth. Universities Superannuation Scheme, one of the UK’s largest pension schemes, holds a substantial minority stake in Pluto, while the lender established a strategic partnership with Blackstone in 2025 focused on originating and executing larger mid-market real estate loans across Europe. For the BTR market, the latest Midlands financing demonstrates the continued role of alternative lenders in unlocking development at a time when construction costs, viability pressures and changing traditional bank lending appetite remain important considerations for developers. Sustainability is also increasingly embedded within Pluto’s lending strategy. Its Low Carbon Lending Programme provides incentives for developments achieving defined reductions in embodied and operational carbon, while much of its development lending has historically supported brownfield sites and urban regeneration. The latest BTR development loan therefore forms part of a much wider residential investment strategy, combining institutional capital with development finance to support the delivery of new homes. With its flagship vehicle now passing £1 billion of cumulative lending and its European operations expanding, Pluto Finance’s latest milestone highlights the growing importance of private credit to the UK’s BTR and wider residential development markets. Building, Design & Construction Magazine | The Choice of Industry Professionals