£150m Baker Street Deal Marks Major UK BTR Move for Zara Founder’s Property Empire
Pontegadea, the private investment company of Spanish billionaire Amancio Ortega, has made its first move into the UK Build to Rent (BTR) market with the £150 million acquisition of a residential development on London’s Baker Street. The transaction sees Pontegadea acquire 219 Baker Street in the West End from investor and developer Ridgeback Group, adding 86 apartments to an already substantial UK property portfolio. The deal, equivalent to approximately €175 million, represents a reported yield of 4%. Ortega is the founder and main shareholder of Inditex, the global fashion group behind Zara and brands including Pull&Bear and Massimo Dutti. While his wealth is closely associated with the international retail sector, Pontegadea has built up a major global property portfolio, with UK real estate holdings now valued at more than £2.7 billion. The Baker Street acquisition is particularly notable from a built environment perspective because of the history of the property itself. The Grade II-listed Art Deco building was originally constructed in 1932 as the headquarters of Abbey National, which later became part of Santander. The building was converted to residential use in 2004 and subsequently upgraded by Ridgeback. Its acquisition provides Pontegadea with an immediate foothold in the professionally managed UK rental market without the development and construction risks associated with delivering a new BTR scheme from the ground up. The deal also extends the investor’s presence across different areas of the UK property market. Its existing London assets include The Post Building on New Oxford Street, while in 2025 Pontegadea acquired an 850,000 sq ft Amazon logistics warehouse near Liverpool for £81 million. The move into BTR comes at a significant time for institutional investment in UK rental housing. BTR transactions reached a record £2.2 billion during the second quarter of 2026, demonstrating continued investor appetite for established, income-producing residential assets despite wider pressures facing development and construction. For the wider property sector, the £150 million Baker Street transaction is another indication of how the UK rental market is attracting international capital traditionally associated with commercial real estate. Pontegadea’s arrival adds another major global investor to the sector and, with an established London residential asset providing its entry point, could signal further interest from the group as the UK BTR market continues to mature. Building, Design & Construction Magazine | The Choice of Industry Professionals
Green Light for 200 Council Homes in Next Chapter of Battersea Power Station Regeneration
Plans for 200 new council homes at Battersea Power Station have secured planning permission, marking another major step in the transformation of the landmark 42-acre regeneration site in London. The homes will be delivered by Battersea Power Station Development Company in partnership with Wandsworth Council on an undeveloped brownfield plot forming part of Phase 5 of the wider masterplan. All 200 properties will be operated by Wandsworth Council and made available at social rent levels through its Homes for Wandsworth programme. The development will include a mix of homes, including larger properties designed to meet the needs of families. Construction is expected to begin in 2027, with completion targeted for 2029. Designed by Peckham-based Dowen Farmer Architects, the scheme will combine new housing with landscaped communal areas and ground-floor commercial and community uses. Residents will have access to communal gardens as well as a substantial south-facing roof garden, bringing additional green space into the development. Funding will be provided through Wandsworth Council’s Housing Revenue Account, supported by grant funding from the Greater London Authority. A multidisciplinary professional team has been assembled to progress the project, with Buro Happold appointed as structural engineer, MKP as M&E consultant and Cast Consultancy as cost consultant. The approval comes as attention increasingly turns towards the remaining phases of the Battersea Power Station regeneration. Around 16 acres of brownfield land are still to be developed, offering the potential for up to 3.2 million sq ft of additional residential, commercial, cultural and leisure space. Studio Egret West has been appointed to evolve the original masterplan created by Rafael Viñoly more than 15 years ago, as the development team considers how the remaining half of the regeneration site should respond to changing demands across London’s property market. Battersea Power Station Development Company chief executive James Saunders has also confirmed that a Section 73 planning application covering the future phases is due to be submitted later this month. The latest approval adds an important affordable housing element to one of London’s most prominent regeneration projects. The redevelopment of the former power station and its surrounding land has already created a major new mixed-use destination, combining homes, offices, retail, leisure and public realm around the restored Grade II* listed landmark. With 200 council homes now approved and further phases being reconsidered, Battersea Power Station is entering another significant period of construction and development as its long-term regeneration continues. Building, Design & Construction Magazine | The Choice of Industry Professionals
Aldi Unveils £300m UK Store Investment as 25 Supermarkets Set for Major Upgrades
Aldi is stepping up investment across its UK property estate with plans to refurbish 25 supermarkets this year as part of a wider £300 million programme of store improvements. The investment will see the discount supermarket group upgrade existing locations across England and Scotland, with work focused on improving the customer experience while introducing more efficient and sustainable building technologies. Depending on the individual store, improvements will include the refurbishment and expansion of key departments such as bakery, health and beauty and fresh food. The programme is designed to create additional space and make stores easier for customers to navigate. Sustainability will also play a role in the refurbishment programme. Selected locations are set to receive energy-efficient fridge doors and refrigeration systems using natural refrigerants, supporting efforts to reduce energy consumption and improve the environmental performance of Aldi’s existing estate. For the retail construction and fit-out sector, the programme represents a significant pipeline of refurbishment activity across a geographically diverse portfolio. Upgrading operational supermarkets can require carefully phased construction, M&E, refrigeration, shopfitting and finishing works to minimise disruption while delivering improvements to existing buildings. Jonathan Neale, managing director of national real estate at Aldi UK, said: “We’re continuing to invest in our existing stores because we know how important the in-store experience is to customers. “These upgrades will create more space, improve key areas of our stores and make them easier to shop. It’s an important part of how we’re investing in the communities we serve.” The £300 million commitment highlights the continuing importance of existing-store investment alongside new supermarket development. For major retailers with substantial property portfolios, refurbishment provides an opportunity to modernise customer-facing areas while improving energy efficiency and adapting stores to changing operational requirements. With 25 locations earmarked for work this year, Aldi’s programme will bring investment to stores from Aberdeen and Stirling to Manchester, Liverpool, London and Bedford. Aldi stores set for refurbishment • Arndale, Manchester• Barnsley Road, Doncaster• Batley Road, Wakefield• Brackley Court, Blaby• Bridgnorth Road, Wollaston• Brooks Road, Lewes• Chapel Street, Belper• Cornhill Shopping Arcade, Aberdeen• Crown Road, Enfield• Falkirk Road, Linlithgow• Grooms Alley, Wellington• Holyhead Road, Telford• Holloway Road, Archway• Knollside Close, Sunderland• London Road, Blackwater• Moreland Avenue, Billingham• Old Beck Road, Harrogate• Printers Place, Paisley• Ringtail Retail Park, Burscough• Rockingham Road, Corby• Sandbach Road, Congleton• Springbank Road, Stirling• St. John Centre, Liverpool• Stratford Road, Hall Green• Westville Road, Bedford Building, Design & Construction Magazine | The Choice of Industry Professionals
PKF Campus Receives Best Workspaces Award 2027 Recognition
A workplace landscape with conviction: the PKF Campus by Philipp Architekten brings together work, encounter, landscape and identity. The PKF Campus in Balingen, designed by Philipp Architekten, has been recognised as part of the Best Workspaces Award 2027. The project is therefore among the awarded workplace environments demonstrating how architecture can give spatial form to corporate culture, human interaction and long-term identification. Since 2020, Callwey Verlag has honoured outstanding workplace environments and office buildings from around the world through the Best Workspaces Award. The award recognises projects that define office architecture not solely through efficiency, amenities or floor area. Its focus is on places that enable collaboration, foster a sense of belonging and create an atmosphere where people genuinely enjoy spending time. A Workplace Landscape Rather Than an Office Building The PKF Campus emerged from the expansion of an established site within the urban fabric of Balingen. Rather than responding with a single dominant volume, the architecture takes the form of an ensemble of four distinct buildings. Each has its own address and character, while remaining grounded in a human scale. At its centre, a park-like garden links the existing buildings with the new additions. It is not simply residual open space, but the social and spatial heart of the campus: a place between work, exchange and landscape. Beauty as a Long-Term Strategy The PKF Campus is guided by a simple conviction: beauty is not an added extra. It is what allows buildings to endure beyond their original function. A place that moves people is used, cared for and carried forward. Architecture is then not replaced as soon as needs change, but can grow with them. For PKF, this has resulted in a campus that does more than provide space for work: it makes the company’s culture visible and tangible. The recognition at the Best Workspaces Award 2027 honours this ambition—to create workplace environments that are not interchangeable, but bring together identity, atmosphere and lasting value. Building, Design & Construction Magazine | The Choice of Industry Professionals
Glencar starts piling on final build phase of Pure DC’s £1bn+ Brent Cross data centre campus
Glencar has commenced piling works for the West Shell of Pure Data Centres’ (Pure DC) 70MW LON01B2 facility, marking the start of the final major build phase at its £1bn+ Brent Cross campus in North London. The development will extend the campus by more than 23,000 sq. m and, once complete, bring total capacity to 90MW. Completion of B2 is scheduled for Q2 2029. Glencar’sscope includes delivery of the West Cold Shell, incorporating piling and foundations, underground services and associated works, structural frame and connections to the adjacent East Cold Shell, concrete and slab works, stair cores, building envelope and roofing. The project isbeing delivered within a live operational data centre campus, requiring close coordination between Glencar, Pure DC and the wider project team as multiple construction and fit-out activities progress simultaneously across the development. LON01 is being developed as a next-generation, closed-loop, liquid-cooled data centre capable of supporting high-density AI inference and cloud workloads. Designed for long-term resilience, the campus incorporates sustainability measures including recycledsteel and low-carbon components. Following completion of B2, the site will also be home to one of the world’s largest living walls. More than 750,000 plants will wrap around the building, helping to reduce noise and air pollution while creating habitat for insects and birds adjacent to the Brent Reservoir Site of Special Scientific Interest (SSSI). Representatives from Pure DC and Glencar joined the project team on site to mark commencement of piling and the transition into the structural phase of the programme. Dan Priest, Campus Delivery Director at Pure DC, said: “Piling commencement represents an important milestone in the continued development of our Brent Cross campus. LON01B2 is amajor part of our investment in London’s digital infrastructure, and it isencouraging toseethe final stageof construction now progressing onsite. Welookforward to continuing towork closely with Glencar and the wider project team asthe development movesforward.” Roy Jones, Managing Director of London and The South at Glencar, said: “Piling getting underway marks the transition into the structural phase of the programme. Delivering a project of this scale within a live and highly constrained data centre campus requires detailed planning, closecollaboration and careful coordination across every stage. “Our teamshave worked closely with Pure DCand the wider project teamtoprepare for this phase. LON01B2 further demonstrates Glencar’s capability todeliver complex, mission-critical infrastructure within live operational environments, and we look forward tobuilding on this momentum asthestructure begins to take shape.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Watkin Jones Strengthens UK BTR Portfolio with Two Major Scheme Completions
Watkin Jones has completed two major Build to Rent (BTR) developments during its 2026 financial year, marking further progress for the residential developer as it continues to deliver large-scale schemes despite challenging market conditions. The completions represent another important milestone for Watkin Jones, which has established a significant presence across the UK’s purpose-built rental and student accommodation sectors. Among the developer’s major BTR projects is Loftlines, a significant residential development that forms part of the wider regeneration of Belfast’s Titanic Quarter. The project demonstrates the scale and ambition of the purpose-built rental schemes now being delivered in major UK cities, combining new homes with the amenity-led approach increasingly associated with modern BTR development. Watkin Jones has also progressed its Tai Afon BTR development in Cardiff, adding further purpose-built rental accommodation to its portfolio and strengthening the company’s presence within the residential market. The latest completions arrive against a demanding backdrop for the UK development sector. Higher construction costs, financing pressures and changing investment conditions have all influenced the pace at which new residential projects can be funded and brought forward. Despite these challenges, BTR continues to represent an important area of activity within the UK housing market, supported by demand for professionally managed rental accommodation and continued institutional interest in residential property. For the wider construction and built environment industry, the delivery of major BTR developments also creates opportunities across a substantial supply chain. Large schemes require expertise spanning main contracting and structural construction through to façades, M&E services, fit-out, landscaping and public realm, before moving into long-term property and facilities management following completion. Watkin Jones’ latest progress therefore provides another indication of the continued evolution of the UK BTR sector, particularly in regional cities where large residential developments are increasingly becoming an important component of wider regeneration strategies. With two major BTR schemes reaching completion during FY26, Watkin Jones continues to demonstrate its ability to take substantial residential developments through construction and into operation while navigating a more challenging development and investment environment. Building, Design & Construction Magazine | The Choice of Industry Professionals