HG Construction Secures £225m Manchester Tower Contracts to Deliver 895 Homes at Victoria North
HG Construction has secured £225 million of construction contracts from developer FEC to deliver four new residential buildings in Manchester, marking a major step forward in the transformation of the Red Bank neighbourhood within the ambitious Victoria North regeneration programme. The appointment will see HG Construction deliver a total of 895 new homes across two development plots, NT02 and NT03, supporting the continued expansion of one of Manchester’s most significant residential regeneration areas. The contracts represent a substantial investment in the next phase of Red Bank, where FEC is progressing plans to establish a new residential neighbourhood north of Manchester city centre, supported by improved infrastructure, public spaces and green amenities. At plot NT02, HG Construction will deliver a 34-storey residential tower comprising 316 apartments. The development will represent FEC’s first build-to-rent (BTR) scheme within the neighbourhood, introducing professionally managed rental accommodation to the emerging residential district. Construction at NT02 is scheduled to commence immediately, with completion anticipated by 2029. The second contract covers plot NT03, where three residential buildings named Falcon, Kingfisher and Midrise will provide a further 579 homes. Construction of these buildings is expected to begin in early 2027, subject to securing Gateway 2 approval from the Building Safety Regulator under the Building Safety Act framework. Together, the four buildings will make a substantial contribution to housing delivery within Victoria North, while adding further density and architectural variety to the evolving Red Bank skyline. The Gateway 2 process remains an important consideration for major residential developments, requiring detailed regulatory approval before construction can commence on higher-risk buildings. For developers and contractors, successfully navigating these requirements is increasingly central to maintaining project programmes and progressing high-rise residential schemes through to delivery. The latest appointments follow significant investment by FEC in the infrastructure and public realm needed to support the wider Red Bank neighbourhood. These improvements are helping establish the foundations for a connected residential community, with new homes being introduced alongside landscaped spaces and infrastructure intended to support long-term growth. Anthony Payne, Operations Director at FEC, welcomed the appointment and highlighted the progress being made across the regeneration programme. “With HG Construction on board we’re ready to deliver the exciting next phase of Red Bank,” he said. “Following significant investment in infrastructure and public realm, the neighbourhood is really taking shape, with new homes, green spaces and the next phases of development now coming forward.” For HG Construction, the £225 million package represents a major addition to its residential construction portfolio, with the contractor drawing on its in-house delivery capabilities to support the programme. The company plans to utilise its self-delivery expertise, including offsite-manufactured bathroom and utility pods, to improve construction efficiency, programme certainty and quality control across the developments. The use of offsite manufacturing techniques is becoming increasingly important in high-density residential construction, where standardised components can help streamline installation, reduce on-site activities and support consistent building quality. Adam Quinn, Chief Executive Officer at HG Construction, said the company’s integrated construction approach would be central to delivering the four buildings. “Our in-house self-delivery capabilities, including offsite bathroom and utility pods, allow us to mobilise efficiently while maintaining greater control over programme execution, quality and safety from the outset,” he said. “We look forward to working with FEC to deliver high-quality homes and help create a thriving new neighbourhood.” The Red Bank developments form part of the wider Victoria North regeneration programme, which is reshaping substantial areas to the north of Manchester city centre through residential development, infrastructure investment and the creation of new neighbourhoods. The introduction of FEC’s first build-to-rent development at NT02 also reflects the continued importance of professionally managed rental housing within Manchester’s expanding residential market. With construction on the first tower due to commence and the remaining three buildings progressing towards regulatory approval, the £225 million programme will establish another major phase of residential delivery at Red Bank. Once completed, the four developments will provide 895 additional homes, reinforcing Victoria North’s role in accommodating Manchester’s growing population and supporting the long-term regeneration of the city’s northern districts. Building, Design & Construction Magazine | The Choice of Industry Professionals
SEGRO and Kew Launch Landmark Biodiversity Programme to Transform Slough Trading Estate
SEGRO has joined forces with Kew Reach, a partnership between the Royal Botanic Gardens, Kew and Greensphere Capital, to deliver an ambitious ten-year biodiversity enhancement programme at Slough Trading Estate, establishing a potential blueprint for integrating nature and climate resilience into industrial and logistics developments across the UK. The initiative will see the introduction of approximately 500 trees and shrubs, alongside wider ecological improvements designed to strengthen wildlife habitats, enhance green infrastructure and create a more sustainable working environment across one of Europe’s most established industrial estates. Home to more than 320 businesses employing approximately 15,000 people, Slough Trading Estate represents a major commercial and employment destination, making it an important location for demonstrating how large-scale industrial property can successfully incorporate biodiversity and environmental improvements. The programme will build upon the estate’s existing landscaped areas, improving habitat quality and connectivity while creating more attractive outdoor spaces for occupiers, employees and the surrounding community. SEGRO has appointed Kew Reach to provide specialist scientific and ecological guidance, drawing on the expertise of landscape architects, ecologists and researchers associated with the Royal Botanic Gardens, Kew. Working alongside SEGRO’s operational, management and sustainability teams, Kew Reach has assessed the estate’s existing landscape, operational requirements and environmental constraints to identify opportunities for meaningful ecological improvements. The ten-year programme will support biodiversity commitments established through the Section 106 agreement associated with the estate’s Simplified Planning Zone, agreed between SEGRO and Slough Borough Council for the period 2024 to 2034. A central focus will be the selection of planting capable of responding to changing environmental conditions, ensuring that landscaping introduced today remains resilient as temperatures, rainfall patterns and wider climate pressures evolve. Rather than focusing solely on the number of trees planted, the partnership is adopting a science-led approach to selecting species that can deliver long-term ecological benefits while supporting the practical requirements of a busy industrial estate. Jo Jackson, Director, Western Corridor at SEGRO, highlighted the importance of integrating environmental considerations into the long-term management of commercial property. “The landscapes around our buildings have an important role to play in creating places that are more resilient, more attractive and better connected to the natural environment,” she said. Jackson explained that the partnership would help SEGRO make informed decisions around planting and landscape management, delivering benefits ranging from improved biodiversity and air quality to shade, cooling and climate resilience. She also emphasised that industrial and logistics buildings are designed to operate for several decades, making it essential to consider how surrounding landscapes can continue supporting occupiers, communities and economic growth over the long term. Beyond the immediate improvements at Slough, the partnership has also developed a bespoke planting guide intended to support future landscape strategies across SEGRO’s wider UK property portfolio. The regionalised guide draws upon peer-reviewed scientific research and an assessment of more than 300 plant species against projected future climate conditions. It considers a broad range of environmental factors, including biodiversity value, drought tolerance, flood resilience, urban cooling, air quality and allergenic pollen levels. This approach will provide SEGRO’s development and property management teams with a practical framework for selecting appropriate species across different locations, ensuring that future landscaping schemes respond to regional environmental conditions. Charlie Roper, Director of Business Development at Kew Reach, said the programme demonstrates the importance of combining scientific research with practical landscape delivery. “The climate conditions many trees will experience in the coming decades will be very different from those in which they were originally selected,” he explained. “The challenge is to plant more and to plant well, using the best available science to make better decisions about what species are planted and where.” Roper added that the Slough initiative brings together climate resilience, biodiversity and practical implementation within a framework that could influence landscape strategies across SEGRO’s UK industrial portfolio. For the wider construction and commercial property sectors, the initiative reflects the increasing importance of biodiversity, sustainable landscape architecture and environmental performance within industrial development and asset management. As developers and property owners seek to reduce environmental impacts and improve the long-term resilience of their buildings, the spaces surrounding industrial facilities are becoming an increasingly important part of sustainability strategies. Green infrastructure can contribute to managing surface water, reducing urban heat, supporting wildlife and improving the quality of working environments, complementing investment in energy-efficient buildings and low-carbon infrastructure. SEGRO, which owns, manages and develops approximately 10.9 million square metres of industrial, logistics and data centre space across the UK and seven other European countries, sees the Slough programme as an opportunity to establish a more consistent and scientifically informed approach to landscape management. The initiative demonstrates how existing industrial estates can evolve beyond their traditional commercial functions, incorporating environmental improvements that support both biodiversity and long-term asset performance. By combining specialist ecological research with practical estate management, SEGRO and Kew Reach aim to demonstrate how industrial landscapes can become more resilient, environmentally valuable and attractive places to work, while providing a model for future sustainable development across the UK built environment. Building, Design & Construction Magazine | The Choice of Industry Professionals
Orka Investments acquires 249-bed PBSA scheme in Liverpool, adding a fifth Russell Group city to a UK platform of more than 2,300 beds
Orka Investments, the London-based investment manager specialising in student accommodation and hotels, has completed the acquisition of Vista Square, a 249-bed PBSA scheme in Liverpool through its joint venture with a top five global real estate investor. The deal follows the purchase of Hill View Place in Exeter earlier this month and takes the joint venture’s portfolio to 1,761 beds across five schemes. Including assets held outside the joint venture, Orka’s wider UK student housing platform now totals 2,329 beds across seven schemes. The joint venture targets income-producing schemes in Russell Group cities, bought below replacement cost, where targeted investment and active asset management can lift performance. Its strategy focuses on driving returns through operational improvements rather than relying solely on rental growth, which has returned to longer-term averages across the sector. Orka works closely with a specialist operator on each scheme, taking an active role in leasing strategy, upgrading the amenity offering and diversifying income beyond the core academic year through semester lets, January intakes and summer stays. Vista Square sits on Oldham Place, on the edge of Liverpool’s Knowledge Quarter and within walking distance of both the University of Liverpool and Liverpool John Moores University. The scheme comprises 204 self-contained studios and 45 en-suite rooms in five-bedroom cluster flats, with studios accounting for more than 80% of the units. Residents have access to a sky lounge, roof terrace, gym, sauna, cinema room, study hub and private dining room. The scheme is fully let for the 2026/27 academic year. Liverpool has the UK’s tenth largest full-time student population, at around 55,800, and more than 26,000 of those students are unable to access a purpose-built bed, according to Savills. The city’s student population has grown by 28% over the past decade, while lettings platform UniHomes ranks Liverpool as the UK’s most competitive city for student housing in 2026/27. Vista Square was part-funded through acquisition financing provided by Investec Real Estate. Investec recently financed Orka’s acquisition of Hill View Place in Exeter, reinforcing its ongoing relationship with Orka as the investment manager continues to expand its UK student accommodation platform. Philippe de Croÿ-Solre, Vice President, Investments at Orka Investments, said: “Liverpool has one of the deepest student markets in the country and students there have plenty of choice, so the gap between the best buildings and the rest keeps widening. Demand at the top of the market is moving towards newer schemes with proper amenity and good service, and towards studios in particular. Buildings that have not kept up will find it harder to let.” “At the same time, construction costs and the new building safety regime are holding back development, so much of the next generation of quality student housing will come from upgrading existing schemes. That is where we see the joint venture’s next acquisitions – buildings from earlier development waves where the location is right but the product can benefit from targeted upgrades.” Sebastian Walley, Investec Real Estate, said: “Student accommodation financing opportunities remain attractive where a disciplined borrower is acquiring a high quality asset in a catchment with strong underlying student demand. Liverpool is an established university market, with two large universities, which makes Vista Square a compelling addition to Orka’s portfolio. We are pleased to continue supporting Orka and its joint venture partner as they grow their platform across leading UK university cities.” Orka’s joint venture launched in December 2025 with three acquisitions totalling c.1,300 beds in Birmingham, Glasgow and Aberdeen. It now owns five schemes totalling more than 1,750 beds. The joint venture was advised by Simmons & Simmons (legal) and Colliers (technical and environmental due diligence). Cushman & Wakefield acted for the seller. Building, Design & Construction Magazine | The Choice of Industry Professionals
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