CBRE Strikes $1bn Deal to Acquire Onnec as Global Data Centre Infrastructure Investment Accelerates
Global real estate services and investment giant CBRE has agreed a deal worth up to $1 billion to acquire London-based data centre infrastructure specialist Onnec, significantly expanding its capabilities in one of the fastest-growing sectors of the built environment. The acquisition will see CBRE pay an initial £460 million ($610 million) in cash, with a further performance-related payment of up to £300 million ($400 million) potentially payable over several years. The transaction represents a major investment in specialist data centre engineering, network infrastructure and technical services, strengthening CBRE’s position in a market being driven by growing demand for cloud computing, artificial intelligence and digital connectivity. Founded in 1986 and headquartered in London, Onnec specialises in the design, deployment and maintenance of network, fibre and data centre infrastructure, providing critical technical services to major technology operators and hyperscale data centre customers. The business employs approximately 800 people across the United Kingdom, continental Europe and the Asia-Pacific region, giving CBRE an established international platform from which to expand its specialist infrastructure operations. Once completed, Onnec will become part of CBRE’s critical infrastructure services business, complementing the group’s existing data centre infrastructure capabilities in the United States. The acquisition is expected to create opportunities for greater international coordination across the design, installation, commissioning, operation and maintenance of increasingly complex digital infrastructure facilities. For the construction and engineering sectors, the deal highlights the growing strategic importance of the specialist contractors and technical service providers responsible for delivering the infrastructure within modern data centres. While investment in data centre development is frequently measured through the construction of large-scale buildings and campuses, the technical infrastructure housed within these facilities is equally critical to their performance. High-capacity fibre networks, structured cabling, connectivity systems and associated infrastructure form essential components of the operational environment required by hyperscale technology businesses. As demand for computing capacity increases, developers and operators are placing greater emphasis on the delivery of reliable, scalable and resilient facilities capable of supporting increasingly demanding technology requirements. Onnec’s specialist expertise will therefore strengthen CBRE’s ability to support customers across the wider lifecycle of data centre assets, from initial infrastructure deployment through to ongoing technical maintenance. The financial outlook for the acquired business also demonstrates the scale of the opportunity within this rapidly expanding market. Onnec is expected to generate approximately £370 million ($498 million) in revenue during 2027, alongside core earnings before interest, tax, depreciation and amortisation (EBITDA) exceeding £50 million ($67 million). Including the anticipated contribution from Onnec, CBRE expects its critical infrastructure services business to generate nearly $4.5 billion in total revenue in 2027. The projected performance underlines the increasing significance of digital infrastructure services within CBRE’s broader international property and facilities management operations. The acquisition also reflects a wider transformation taking place across the commercial property sector, where data centres have emerged as a major area of investment alongside more traditional asset classes such as offices, industrial and logistics facilities. Unlike conventional commercial buildings, data centres require highly specialised engineering systems, resilient power infrastructure, sophisticated cooling arrangements and extensive digital connectivity to maintain continuous operations. This complexity creates sustained demand for specialist engineering expertise, both during initial construction and throughout the operational life of the facility. For CBRE, bringing Onnec into its critical infrastructure division will provide additional technical resources and geographical coverage, particularly across European and Asia-Pacific markets where the company already serves major technology customers. The combination of Onnec’s established regional operations and CBRE’s existing US capabilities is expected to strengthen the group’s ability to support international clients operating across multiple data centre markets. The transaction remains subject to the necessary regulatory and other approvals, with completion anticipated around the end of 2026. If finalised, the acquisition will represent another significant step in CBRE’s expansion into specialist infrastructure services, positioning the business to capitalise on the continued growth of global data centre development and the increasingly sophisticated engineering requirements of the digital economy. Building, Design & Construction Magazine | The Choice of Industry Professionals
Landsec Halts £1.5bn Lewisham Regeneration as Construction Costs and Affordable Housing Dispute Derail Plans
Landsec has suspended plans for its £1.5 billion transformation of Lewisham Shopping Centre, dealing a major setback to one of south east London’s largest residential-led regeneration projects amid rising construction costs, development viability pressures and disagreements over affordable housing provision. The developer has confirmed that it no longer sees a sufficiently certain route to delivering the ambitious mixed-use scheme, which would have replaced the existing 1970s shopping centre with a new retail district, residential towers, student accommodation and extensive public amenities. Construction had been expected to commence in 2027, with the masterplan proposing buildings rising to 35 storeys and a substantial new residential neighbourhood in the heart of Lewisham. The redevelopment would have delivered 1,744 homes, alongside 660 purpose-built student accommodation beds and 445 co-living rooms, creating a high-density mixed-use destination combining residential, retail, leisure and cultural facilities. Plans also included a 500-capacity music venue and a rooftop meadow, introducing new green space and community facilities as part of a comprehensive redesign of the town centre. However, the project’s delivery depended on securing additional land, including the neighbouring former Citibank office building, Lewisham House. Landsec had sought support from Lewisham Council to progress the necessary land assembly arrangements, but the borough’s new Green administration declined to support the next stage without a substantial increase in affordable housing. Although the redevelopment had secured planning approval under the previous Labour administration, the new leadership has maintained that the proposed level of social rented accommodation was insufficient. The consented scheme included 98 social rent homes and 231 discounted rental properties intended for key workers, forming part of the wider 1,744-home residential development. Mayor of Lewisham Liam Shrivastava, who had previously supported a campaign opposing the proposals, reiterated the administration’s position on affordable housing. “This administration is laser focused on delivering genuinely affordable housing and I’ve consistently said the level of social rent homes in this scheme needed to increase,” he said. However, the Mayor also acknowledged the wider challenges affecting major regeneration projects. “The fact is the conditions for such projects are simply not favourable right now.” For Landsec, the requirement to substantially revise the housing mix comes against an increasingly challenging economic backdrop for large-scale development in London. The company pointed to higher interest rates, construction cost inflation and additional building regulatory requirements as significant factors affecting the financial viability of the redevelopment. Increasing the affordable housing provision would require material changes to the approved proposals, introducing further uncertainty around project costs, funding and delivery. In a statement, Landsec said: “This position, combined with the exceptionally difficult economic conditions, mean that we no longer see a sufficiently certain route to delivery and have taken the difficult decision to deprioritise the redevelopment of Lewisham Shopping Centre.” The decision highlights the difficulties facing major urban regeneration schemes, particularly those combining substantial residential development with the replacement of existing retail infrastructure. Projects of this scale frequently depend on complex land assembly arrangements, substantial upfront investment and a carefully balanced development mix to make construction financially viable. In Lewisham, the proposed transformation would have represented a fundamental change to the existing shopping centre, introducing a new urban district designed around residential growth, commercial activity and public space. The scheme had already begun influencing the existing retail environment, with Boots relocating in preparation for the anticipated redevelopment and NatWest also announcing plans to move. Despite shelving the regeneration proposals, Landsec has confirmed that it will continue operating and investing in Lewisham Shopping Centre, which it has owned for more than two decades. The existing retail destination will therefore remain operational while the developer reassesses its longer-term options for the site. For the wider construction and property development sectors, the decision underlines the growing pressures surrounding the delivery of major mixed-use schemes in London, where affordable housing requirements, construction inflation and increasingly complex regulatory obligations must be balanced against commercial viability. While the £1.5 billion masterplan has been deprioritised rather than permanently abandoned, there is currently no confirmed timetable for restarting the redevelopment. The future of the Lewisham site will now depend on whether a financially deliverable regeneration strategy can be established that satisfies both the developer’s investment requirements and the Council’s ambitions for increased affordable housing. The setback leaves one of south east London’s most prominent town centre regeneration opportunities facing an uncertain future, despite the scale of residential, commercial and community investment originally envisaged. Building, Design & Construction Magazine | The Choice of Industry Professionals
Pupils arrive at new Wester Hailes High School building
Project milestone brings school’s education estate into single state-of-the-art building Staff and pupils at Wester Hailes High School have returned from half term into their brand new school building this week, replacing four separate teaching blocks with a single, modern education facility. McLaughlin & Harvey was appointed by the Council to deliver the 800 capacity new building, which is designed around a central, bright and open atrium, bringing pupils together while connecting departments and classrooms. Each floor features a series of breakout and retreat spaces to offer pupils choice on where they want to work, socialise or take time out. Internal spaces have been decorated with warm colours and light woods to create comfortable spaces for learning and coming together. One of the existing buildings on the site – featuring catering, sports and swimming facilities – has been retained and refurbished. This block will operate as a secure community hub, with easily accessible services for local people while maintaining the safety of users. Edinburgh Leisure reopened its refurbished leisure facilities at the school earlier this month. The building also includes a range of different flexible, collaborative spaces to support staff, students and the community. Members of the community will be able to see the new facilities first hand at an open evening on Tuesday 27 October between 5pm and 7pm. The final phase of the school redevelopment project will see the remaining former buildings demolished, to be replaced with outdoor learning spaces, an urban woodland area (creating natural habitat, play spaces and a learning resource) and a community allotment that will provide growing beds, poly tunnels and picnic benches for use by the local community. Additional landscaping will also improve secure access to the school site from the Union Canal tow path. As with other recently opened buildings in the Council’s learning estate, the school has been built to Passivhaus standard, minimising energy consumption and reducing the reliance on active heating or cooling systems, ensuring sustainable and eco-friendly construction. In addition to the Passivhaus design, the new school includes other sustainable features supporting the Council to meet its sustainability commitments. This includes measures to improve the air quality and thermal performance of the building which are vital to achieving Passivhaus certification. The new school building has been designed in line with the guiding principles of the Scottish Government’s Learning Estate Strategy and is one of the projects in the second phase of the Scottish Government’s Learning Estate Investment Programme, alongside the recently opened Liberton Community Campus. Children, Education and Families Convener, Councillor James Dalgleish, said: Opening this new school building is a major landmark moment for pupils, staff and the wider community in Wester Hailes. I’m really impressed with the quality of the spaces, and the building is all set to provide a modern, sustainable learning environment designed to support young people for generations to come. This investment is about more than just education. We’ve created a valuable community asset, bringing together learning, sport and support spaces in one accessible location. Through our Living Well Locally approach, we’re creating a hub that will help strengthen and serve the community for many years ahead. Dougie McCusker, Construction Director at McLaughlin & Harvey, said: It’s fantastic to see pupils and staff enjoying the new building. Having been designed and constructed to Passivhaus standards, the facility futureproofs the school’s estate for generations to come. Operationally, we faced the challenge of building the new facility while the school was still open and in close proximity to the construction works, however, we were able to ensure disruption was kept to an absolute minimum. The hard work by the whole project team, the designers, consultants and the client was definitely worth it when you see the cutting-edge building in use today. Further information about the design of the new Wester Hailes High School can be found on the Future Schools Edinburgh website. Building, Design & Construction Magazine | The Choice of Industry Professionals
Sika UK launches SikaFiber®-200, a natural fibre alternative for concrete crack control
Sika UK has introduced SikaFiber®-200, a 100% natural, biodegradable cellulose microfibre developed to help manage plastic and drying shrinkage cracking in structural and non-structural concrete, screeds and mortars. The launch adds a natural, biodegradable cellulose-based option to Sika’s fibre reinforcement range, offering specifiers, contractors and architects an alternative to synthetic polypropylene microfibres without a change in handling or mix design. Shrinkage-related cracking during the early curing period remains a persistent issue across floors, screeds, pavements and decorative concrete work, often driven by moisture loss as fresh concrete cures. SikaFiber®-200 is designed to address this directly. The ultra-fine cellulose fibres disperse evenly through the mix, creating a three-dimensional network that supports more uniform stress distribution as the concrete cures, reducing the formation of early-age cracks. As a cellulose-based product, SikaFiber®-200 is fully biodegradable, offering a lower-impact option for projects where material sourcing and embodied carbon considerations form part of the specification process. The fibre is suitable for a range of non-structural applications, including floors and screeds, pavements and hardstandings, decorative concrete finishes, and mortars. Amy Sapien, National Fibre Manager at Sika UK, commented on the launch: “SikaFiber®-200 gives specifiers and contractors a natural alternative to polypropylene fibres, without asking them to change how they work. It disperses through the mix in exactly the same way, but offers a biodegradable option for projects where material sourcing is increasingly part of the conversation. We see this as a practical step forward for crack control, not a compromise on performance, which is why we are incredibly excited to introduce it to the market.” SikaFiber®-200 is available now. Full technical data, application guidance and the product brochure are available from Sika’s website. Building, Design & Construction Magazine | The Choice of Industry Professionals
BBC investigation into illegal working offers glimpse into the future for construction
The BBC’s latest investigation into illegal working has exposed the lengths some will go to circumvent the UK’s enforcement system. The investigation uncovered a solicitor allegedly offering to make a £45,000 illegal-working fine disappear by arranging for an individual overseas to declare themselves the owner of a mini-market facing a penalty for employing an illegal worker. In response, Home Secretary Shabana Mahmood has announced a review of the way these fines are issued and collected. For the construction industry, the investigation should serve as a stark warning. As new legislation extends liability through contractual chains and enforcement activity increases, principal contractors face growing financial and reputational exposure if they cannot demonstrate effective oversight of their supply chains. Robert Brent, CEO of construction workforce management solutions provider MSite, warns of the growing financial and reputational risks facing principal contractors as tougher illegal-working legislation and increased enforcement place greater scrutiny on construction supply chains. “The BBC’s investigation exposes a much wider problem. Illegal working is not always the result of an overlooked document or an administrative error. It can involve deliberate attempts to circumvent the very systems designed to prevent it. “For construction, where thousands of workers can operate across multiple subcontracting tiers, this raises serious questions about how effectively businesses understand and oversee their supply chains. “Principal contractors must wake up to the risks within their supply chains before the financial and reputational consequences threaten their ability to operate. “The reality is that many principal contractors have limited visibility of who is actually delivering work beyond their immediate subcontractors. With the legislative changes introduced on 1 October extending accountability further up the chain, that lack of oversight now carries significant risk, particularly as the Home Office and HMRC enforcement intensifies, and the consequences of non-compliance become increasingly severe. “Under Section 48 of the Border Security, Asylum and Immigration Act 2025, the Right to Work regime has expanded to cover additional working arrangements. While direct employers remain responsible for conducting the prescribed checks, new extended-liability provisions mean civil penalties can reach further up the contractual chain, including principal contractors who do not directly employ the individuals involved. “The financial implications are substantial. Civil penalties can reach £45,000 per illegal worker for a first breach and £60,000 for repeat breaches. Across major construction projects, even a handful of breaches could have devastating consequences for a contractor’s bottom line and reputation. “Enforcement is already intensifying. During the first six months of 2026, the Home Office carried out 268 illegal-working visits on construction sites, a 150% increase on the same period in 2025. Arrests also rose by 29%. “These figures make one thing clear: construction businesses can no longer afford to rely on paperwork and compliance checks alone to protect themselves from illegal working risks. “Most responsible contractors already have compliance processes established. The challenge is whether those processes provide a reliable picture of what is happening beyond their immediate subcontractors. “A worker passing a Right to Work check does not, on its own, demonstrate that a principal contractor has the necessary controls in place to address its wider legal exposure. “Contractors need to understand who employs or engages each worker, where those relationships sit within the contractual chain, whether the approved supply chain reflects what is happening on site, and what evidence exists to demonstrate effective oversight. “That requires greater coordination between procurement, HR, legal, commercial and operational teams. Each holds part of the picture, but effective assurance depends on connecting that information and demonstrating that the appropriate controls are working. “The BBC investigation is an uncomfortable reminder that declared business relationships and paperwork alone cannot always be relied upon to reveal the reality. “Contracts establish how a supply chain should operate. Assurance requires evidence of how it actually operates. “For an industry built on complex, multi-tier arrangements, this represents a significant shift. It is about understanding the wider supply chain, identifying the risks before they escalate and demonstrating that appropriate safeguards are in place. “With legislation tightening and enforcement increasing, principal contractors have an opportunity to address potential gaps before they become costly consequences.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Building for what’s next: Simon Nevitt succeeds Keith Barker as COO of wienerberger UK & Ireland
wienerberger UK & Ireland has announced that Simon Nevitt will succeed Keith Barker as Chief Operating Officer from 1 November 2026, following Keith’s planned retirement. Keith will remain with the business until the end of December to support the final stages of the transition and ensure a smooth handover. Simon Nevitt takes on the role as part of a long-planned succession, after eight years with the business, having served as both Operations Director and Chief Development Officer. The appointment marks the next chapter in wienerberger’s evolution, providing continuity for customers, suppliers and employees while bringing fresh perspectives as the business responds to changing customer needs and market demands. “I am honoured to have the opportunity to lead wienerberger UK & Ireland,” said Simon Nevitt. “Thanks to the work of Keith and our colleagues, together we have built a more resilient business, expanded our capabilities and created exciting opportunities across wall, roof, water and heating. While the construction industry continues to navigate challenging market conditions, working alongside a talented executive team, my focus will be on supporting our customers, investing in our people and continuing to build for what’s next.” Keith Barker retires after more than 16 years with wienerberger UK & Ireland, including nine years spent at the helm. During his tenure, the company underwent significant transformation through strategic investment, diversification and acquisitions. The acquisition of Building Product Design strengthened the company’s wall and roof offering, while FloPlast, Cork Plastics and Maincor expanded the business and formed the foundations of today’s water and heating division. “One of the greatest strengths of any successful organisation is knowing when it is the right time to pass the baton,” said Keith Barker. “This transition has been part of our long-term plans, and Simon was the natural choice to lead the business forward. He understands our business, our people and our customers, and he has played an important role in helping shape the organisation we are today. I have every confidence in his ability to build on everything we have achieved together.” “I leave knowing the business is in a strong position, with a clear strategy and a talented leadership team. When I reflect on my time with wienerberger, what makes me proudest is not any individual achievement, but the strength of the business and the people within it. It has always been our colleagues who have made the difference.” To find out more about wienerberger UK & Ireland, visit www.wienerberger.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals