£230m Farringdon Aparthotel Development Set to Transform Central London Site
Construction is set to begin on a major £230 million aparthotel development in Farringdon, central London, following the formation of a joint venture between European property developer Penta Real Estate and hospitality operator Staycity Group. The ambitious project will see the redevelopment of the existing Morley House site, close to Holborn Viaduct, into a new 11-storey aparthotel comprising 350 guest rooms. The development represents a substantial investment in London’s hospitality property sector, responding to continued demand for high-quality, flexible accommodation in well-connected central locations. Altius Real Estate has been appointed development manager and will oversee the project throughout its delivery. Major Hotel Development in Farringdon The scheme will involve the demolition of the existing office building at Morley House, clearing the way for the construction of a modern hospitality development. Once completed, the 11-storey building will provide 350 rooms operated by Staycity Group, expanding the company’s accommodation offering in the capital. The development will occupy a prominent location close to Holborn Viaduct, within easy reach of Farringdon’s commercial districts and transport connections. The project is expected to appeal to business travellers, tourists and visitors seeking flexible accommodation within central London. Construction is scheduled to commence following the demolition programme, with completion of the new building targeted for 2029. Penta Real Estate and Staycity Form New Partnership The development marks the first joint venture between Penta Real Estate and Staycity Group, bringing together the developer’s investment and property expertise with Staycity’s experience in operating aparthotel accommodation. Penta Real Estate has identified London as an important market for future investment, with the Farringdon project forming part of its ambitions to deliver high-quality developments in established urban locations. Pavel Streblov, Country Managing Director at Penta Real Estate, welcomed the partnership and highlighted the appeal of the location. “This is a really exciting project in a lively and dynamic part of London,” he said. “Staycity Group has a great track record of delivering and operating attractive aparthotel accommodation to meet strong and growing demand in central London and we are looking forward to embarking on this first JV with the brand.” Streblov also emphasised Penta’s appetite for further investment in the capital. “At Penta, we have significant investment appetite for London and delivering high-quality, sustainable and thoughtful development projects in vibrant locations such as Farringdon truly plays to our strengths.” New Opportunities for London’s Construction Sector The £230 million redevelopment represents a significant opportunity for the construction and specialist building services industries. Transforming the existing commercial site into an 11-storey hospitality building will require extensive demolition, structural construction, mechanical and electrical installations and specialist interior fit-out works. The scheme also highlights the continued redevelopment of ageing commercial properties in central London, where established office sites are being reconsidered for alternative uses, including hotels and serviced accommodation. For developers and investors, aparthotels provide an alternative hospitality format, combining elements of traditional hotel accommodation with the flexibility associated with serviced apartments. The Farringdon project will add further accommodation capacity to London’s hospitality market while contributing to the ongoing transformation of the surrounding commercial district. With demolition and main construction activity set to progress, the development represents another substantial addition to the capital’s hotel construction pipeline. Scheduled for completion in 2029, the new 350-room aparthotel will establish a significant new hospitality destination near Holborn Viaduct, while marking the beginning of a new development partnership between Penta Real Estate and Staycity Group. Building, Design & Construction Magazine | The Choice of Industry Professionals
GRAHAM Secures First Residential Tower Contract at £1.2bn Liverpool Waterfront Regeneration
GRAHAM has been appointed to deliver the first residential tower at Liverpool’s ambitious £1.2 billion Kings waterfront development, marking a major milestone in one of the city’s largest mixed-use regeneration projects. The contractor has secured the construction contract for No.1 Kings, a 28-storey residential tower that will become the first building delivered within the wider waterfront masterplan. The £80 million gross development value (GDV) scheme will provide 255 new homes for rent, alongside ground-floor retail accommodation, first-floor resident amenities and rooftop social spaces. Metropolitan Demolition has now completed clearance works on the site, allowing GRAHAM to mobilise and prepare for the main construction programme. The appointment represents an important step towards transforming the waterfront location into a major new residential, commercial and hospitality destination. First Phase of Major Liverpool Regeneration Developed by Beetham Davos Limited, the wider Kings masterplan will comprise nine buildings, ranging from the 28-storey No.1 Kings to a proposed 70-storey landmark tower incorporating a five-star hotel and residential accommodation. The tallest building remains subject to planning consent but could become a defining feature of Liverpool’s skyline. No.1 Kings has been identified as the project’s ‘pathfinder’ development, establishing the quality of design, residential accommodation and amenities intended for the wider regeneration. The development will introduce purpose-built rental housing alongside commercial facilities, supporting the creation of a new mixed-use neighbourhood on Liverpool’s waterfront. Hugh Frost, Chairman of Beetham Davos Limited, welcomed the contractor’s appointment and confirmed that the first residential tower is fully funded by the project’s shareholders. “We’ve fired the starting gun and continue to push on with the Kings development in the background,” he said. “The tower is fully-funded by the project’s shareholders, so the market can see confidence in the vision. No.1 Kings will raise the bar as far as design, fit-out and amenities go.” Frost added that delivering the first building would help underpin discussions with future occupiers and act as a catalyst for the wider redevelopment. GRAHAM Brings High-Rise Residential Expertise GRAHAM’s appointment strengthens its presence in Liverpool’s residential construction market, drawing upon its experience delivering high-rise buildings and Build to Rent accommodation. Peter Reavey, Regional Director at GRAHAM, described the Kings development as a transformational opportunity for Liverpool. “Kings is the largest single regeneration project outside London and there’s no doubt it will be a game-changer for Liverpool’s economy,” he said. “We’re delighted to once again have the opportunity to demonstrate our high rise, build to rent capabilities in the city and are now busy mobilising to meet the client’s timescales.” The project will provide opportunities across the construction supply chain, including structural engineering, building services, façade systems, residential fit-out and specialist interior works. Nine-Building Masterplan to Transform Liverpool Waterfront The wider Kings development brings together a multidisciplinary design and consultancy team to deliver the ambitious waterfront regeneration. Brock Carmichael is responsible for the overall masterplan, while SimpsonHaugh is designing the proposed 70-storey centrepiece. Pegasus Group is providing planning, economics, heritage and environmental impact assessment services, with Planit leading the public realm design and WSP advising on highways. The combination of residential towers, retail accommodation, hospitality facilities and new public spaces is intended to establish Kings as a major new destination within Liverpool’s evolving waterfront landscape. For the construction and property development sectors, the £1.2 billion scheme represents a substantial long-term pipeline of high-rise residential and mixed-use development opportunities. With site clearance completed and GRAHAM appointed to deliver the first tower, No.1 Kings will provide the initial momentum for a regeneration programme that could significantly reshape Liverpool’s skyline and waterfront property market. Building, Design & Construction Magazine | The Choice of Industry Professionals
Value retail finds footing out-of-town
By Chris Nichols – Savills European Research Analyst Commercial Research Heightened caution surrounding major purchases is influencing occupier demand, creating opportunities for value-led retail. Structural decline in major purchase appetite Value now sits more firmly at the heart of the retail park proposition. In reaching this point, though, the sector has loosened its historic affinity with traditional bulky-goods and homeware retailing. Catalysing change are two closely related behaviours: a greater propensity to save and a more cautious attitude towards major purchases. Since 2020, the eurozone household savings rate has averaged 15.4%, well above the 12.4% average during the previous decade. Similarly, the gap between the EU’s headline consumer confidence indicator and households’ assessment of whether the current economic situation is adequate for making major purchases rarely exceeded five index points before the pandemic (Figure 4). Since then, the major purchases measure has persistently lagged overall consumer confidence, by as much as 23 index points in 2023. The divergence suggests consumers have become materially more selective in how discretionary spending is deployed, particularly on larger-ticket items. Successive inflationary and geopolitical shocks appear to have left a lasting imprint psychologically, encouraging precautionary saving and bolstering the appeal of value retail. “The post-pandemic consumer has become harder to tempt, but in some respects easier to understand: purchases are increasingly judged through the lens of value and necessity.Chris Nichols, Analyst, European Research” FIGURE 4: HOUSEHOLD SAVINGS RATES, CCI SPREAD ABOVE MAJOR PURCHASES CONFIDENCE INDICATOR* EU Consumer confidence indicator vs major purchase indicator speed – Eurozone household savings rate (monthly) Traditional bulky goods categories cede ground These behavioural adjustments have clearly filtered through into retail sales and, by extension, occupier mix. Over the past three years, necessity-led and budget-oriented categories have outperformed traditional bulky-goods segments in terms of European market growth (Figure 5). This is consistent with heightened price sensitivity and the postponement of big-ticket purchases, lending credibility to the trends outlined in Figure 4. More telling still is how the occupier base has adapted. While bulky goods, homewares and electrical retailers remain central to the retail park proposition, they no longer dominate in the way they once did. In mature retail warehousing markets such as the UK, these categories accounted for almost half of retail warehouse floorspace in 2012. By 2025, that share had fallen to 31%, as grocery, particularly discount grocery and discount variety operators, captured an increasing share of space. While the precise composition varies across Europe, many markets track the same movement towards a higher weighting of value-led and essential retailing (Figure 6). In doing so, the sector has become more closely aligned with prevailing consumer spending habits and better equipped to withstand periods of economic stress. FIGURE 6: RETAIL MARKET VALUE GROWTH BY PRODUCTS CATEGORY FIGURE 6: TENANT MIX EVOLUTION IN KEY EUROPEAN MARKETS Retailers driving expansion momentum A handful of occupiers stand out for both the pace of their growth and the extent to which their offer aligns with retail warehousing. Unsurprisingly, the common thread appears to be a highly affordable proposition combined with an operating model capable of scaling (Figure 7). FIGURE 7: RETAILERS DRIVING EXPANSION MOMENTUM uilding, Design & Construction Magazine | The Choice of Industry Professionals
Costa Coffee Targets Nationwide Expansion with New Drive-Through, Retail Park and High Street Developments
Costa Coffee has unveiled its latest UK property requirements as the hospitality operator looks to accelerate its expansion across England, Scotland and Wales, creating fresh opportunities for retail landlords, property developers and the construction and fit-out sectors. Working alongside long-standing property adviser Savills, the coffee chain is actively seeking new locations across retail parks, shopping centres, high streets, transport hubs and prominent roadside destinations. The latest requirements follow the opening of more than 80 new Costa Coffee locations during 2025, with the company continuing to invest in both new stores and improvements to its existing property portfolio. Drive-Through Developments Remain a Major Priority Drive-through expansion remains a central element of Costa Coffee’s property strategy, with the operator targeting units ranging from 1,250 sq ft to 2,200 sq ft. The preferred locations include out-of-town and edge-of-town roadside sites, particularly those positioned close to supermarkets, retail warehousing and established leisure destinations. According to Savills’ published acquisition requirements, suitable drive-through sites should ideally be located on major arterial roads with traffic flows of at least 15,000 vehicles per day. Costa is seeking leasehold opportunities with dedicated drive-through lanes, external seating and either dedicated or shared customer parking. Typical site requirements extend to approximately half an acre, with conversions of existing buildings also under consideration. For developers and contractors, the requirements present opportunities for new-build roadside units, the redevelopment of existing commercial properties and the integration of drive-through facilities within wider retail and leisure schemes. Retail Parks and Shopping Centres Targeted Costa Coffee is also seeking further opportunities within established retail parks, with preferred units generally ranging between 1,500 sq ft and 2,500 sq ft. Both freestanding buildings and units within existing retail terraces will be considered, provided they offer strong visibility, convenient parking and opportunities for external seating. Locations alongside major foodstores, national retailers and leisure operators are particularly attractive, reflecting the importance of established customer footfall and complementary retail activity. High streets and shopping centres remain another important part of the expansion programme, with Costa targeting prominent commercial units capable of accommodating modern coffee shop layouts and customer seating. The operator is also considering locations within universities, hospitals and leisure destinations, where regular visitor numbers can support trading throughout the day. These requirements create potential opportunities for landlords looking to reposition vacant retail accommodation, as well as developers delivering new mixed-use and commercial schemes. Transport Hubs and Travel Locations Offer Further Growth Alongside larger coffee shops, Costa is seeking smaller format units within railway stations, transport interchanges and other high-footfall travel destinations. These locations can accommodate units from approximately 125 sq ft, with the company considering grab-and-go kiosks, conventional retail units and conversions of existing commercial space. The flexibility of these formats allows Costa to explore opportunities within buildings where larger hospitality units may not be practical. For transport operators, commercial landlords and developers, this creates opportunities to incorporate coffee outlets into station refurbishments, passenger facilities and wider transport-led regeneration projects. Savills Partnership Supports Long-Term Property Strategy Costa’s latest acquisition drive builds on its established relationship with Savills, which was expanded in April 2025 after approximately two decades of collaboration. The agreement extended Savills’ high street and shopping centre acquisition remit across the country, excluding locations within the M25, alongside its existing work on drive-through, roadside and travel-focused developments. Matt Brown, Director in Savills’ retail team, previously highlighted the importance of identifying new sites while also improving the performance of existing stores through relocations, expansions and more suitable property configurations. Tom Falk, Head of Property at Costa Coffee, also emphasised the company’s commitment to expanding its estate and ensuring its existing locations remain aligned with changing customer requirements. The wider property strategy is supported by Colliers, which was appointed in October 2025 to provide estate management services across more than 1,600 Costa-operated UK sites under a five-year agreement. The appointment covers property management, lease administration, data analytics and other professional services, highlighting the scale of the property infrastructure supporting Costa’s retail operations. New Opportunities for the Construction and Retail Fit-Out Sectors Costa Coffee’s continued expansion offers potential opportunities across several areas of the built environment, including new commercial developments, retail refurbishments, building conversions and specialist hospitality fit-outs. New drive-through locations require careful consideration of vehicle access, parking arrangements, external seating and the integration of customer facilities within constrained commercial sites. Meanwhile, high street and shopping centre openings can involve substantial internal alterations, mechanical and electrical installations, commercial kitchen facilities and improvements to existing retail accommodation. The company’s willingness to consider conversions is also relevant to landlords seeking alternative occupiers for underused commercial buildings. With acquisition requirements spanning everything from compact transport kiosks to purpose-built roadside coffee shops, Costa’s strategy reflects the increasing diversity of hospitality property formats across the UK. As the operator continues to identify new sites throughout England, Scotland and Wales, its expansion programme is expected to remain an important source of activity for retail property owners, developers, contractors and specialist fit-out companies. The latest requirements reinforce Costa Coffee’s commitment to strengthening its physical retail presence while adapting its property portfolio to changing consumer habits, travel patterns and the evolving UK retail and hospitality landscape. Building, Design & Construction Magazine | The Choice of Industry Professionals
New procurement framework worth £1 billion to support construction and management of Scotland’s public buildings
SCOTLAND’S public bodies can access a major new procurement framework designed to help public bodies deliver construction, refurbishment, infrastructure and facilities management services more efficiently and with greater confidence. The Scottish Procurement Alliance (SPA) has launched PB4 which provides a compliant procurement route designed to simplify the delivery of £1 billion worth of building and infrastructure projects while maintaining quality, value and governance. It will support organisations in maximising public investment, improving estate performance and delivering projects that contribute to long-term community, sustainability and service objectives. The framework is structured across five workstreams covering new build construction, refurbishment, civil infrastructure and facilities management. It offers a flexible solution capable of supporting everything from major regeneration and estate modernisation programmes to ongoing maintenance, compliance requirements and wider operational asset management. For the first time, construction, refurbishment, civil infrastructure and facilities management services have been brought together within a single framework, enabling public bodies to access a broader range of specialist expertise through one procurement solution and manage projects more effectively throughout the entire lifecycle of their assets. This includes supporting the transition of buildings and infrastructure from expiring finance arrangements into long-term operational management. The launch comes at a time when public sector organisations across Scotland are seeking to balance investment in new and existing assets with the need to improve energy performance, meet net zero ambitions and maintain operational resilience. With significant investment requirements across the public estate, access to efficient, compliant and high-quality procurement routes remains critical to successful project delivery. Lesley Peaty, Regional Director of the Scottish Procurement Alliance, said: “Public sector organisations need procurement routes that can support the full life of an estate, from creating new buildings to maintaining the fabric and technical systems that keep essential services running. “PB4 gives our partners access to a flexible solution covering new construction, major refurbishment, infrastructure and hard facilities management within one compliant framework. “By bringing these services together, organisations can procure work more efficiently, respond to changing needs and focus public investment on creating and maintaining safe, sustainable buildings for the people who rely on them every day.” PB4 has been designed for organisations across local government, education, healthcare, defence and the emergency services, enabling them to procure and deliver projects more efficiently while minimising disruption to service users and maintaining operational continuity. The new framework responds to growing demand for procurement solutions that enable projects to be delivered quicker to maximise available government funding, helping organisations avoid delays that could jeopardise investment. Appointed companies will be expected to work with SPA and public bodies to identify, deliver and capture social value outcomes associated with each project. Community benefits will be expected to align with the relevant social value strategy, be proportionate to the contract value and provide meaningful benefits for residents and the wider community. The framework’s priorities include connected and inclusive communities, enhanced community spaces, increased use of community facilities and upskilling and training, supporting its strategic focus on individual wellbeing, planet and environment and social mobility. Where social value requirements have not already been set, appointed companies will be expected to raise this with the client and jointly identify opportunities to deliver additional value. The SPA is one of Scotland’s largest free to join procurement organisation serving Scotland’s public sector, supporting more than 145 organisations with compliant and localised procurement solutions for construction, refurbishment, compliance, consultancy and maintenance projects. Further information about the PB4 framework is available at www.scottishprocurement.scot Building, Design & Construction Magazine | The Choice of Industry Professionals
Savills Earth Capital Advisors advises Anglo Renewables on sale of 18MW consented solar scheme in Cheshire
Savills Earth Capital Advisors (“SECA”) has advised Anglo Renewables on the sale of Hebden Green, a fully consented 18MW solar project in Winsford, Cheshire, to Enviromena for an undisclosed sum. The project is expected to connect to the grid in December 2027. Once operational, it has the potential to generate enough clean, renewable energy to power approximately 5,500 homes each year, while offsetting around 9,400 tonnes of carbon dioxide annually. In addition to the installation of solar panels, the scheme includes a range of biodiversity and landscape enhancement measures, designed to support local habitats and deliver environmental benefits alongside the generation of renewable energy. Henry Grant, Director, Savills Earth Capital Advisors, comments, “We are pleased to have supported Anglo Renewables on another successful transaction, following our sale of Rock Farm to Enviromena last summer. Hebden Green is an example of a renewable energy project supporting the UK’s transition to a low carbon energy system, and we look forward to seeing it move into construction shortly. Investor appetite for consented solar assets remains strong, as projects of this nature continue to play a critical role in delivering clean energy infrastructure across the UK.” James Stone, Managing Director at Anglo Renewables, said: “We’re pleased to have completed the sale of Hebden Green to Enviromena, building on our successful partnership on Rock Farm. We look forward to seeing Hebden Green progress into construction and make a positive contribution to the UK’s renewable energy capacity.” Lee Adams, Chief Commercial Officer at Enviromena, said: “Hebden Green is a high-quality, well-developed project that further strengthens our construction pipeline for 2027 and supports our continued growth as an owner and operator of solar assets across the UK. “We highly value the relationship we’ve built with Anglo Renewables through the acquisition and delivery of Rock Farm, and we’re delighted to be continuing that partnership through Hebden Green. We look forward to bringing the project into construction and delivering both clean energy and lasting benefits for the local community. Thank you to Savills and all the teams which supported on this transaction.” Building, Design & Construction Magazine | The Choice of Industry Professionals