Monthly Archives: October 2020

Green light for £110m Liverpool scrap yard scheme

Three-block scheme to include 638 homes and 200-bed hotel

Manchester based architect MCAU has been given the green light for proposals to build a £110m mixed-use scheme on a scrap yard in Liverpool.

The three-block scheme in the city’s Baltic Triangle district for developer Chaloner Street Developments will provide 638 homes, a 200-bed hotel, around 25,000sq ft of office space and the same amount of retail space. None of the homes will be affordable.

Liverpool council’s virtual planning committee voted eight to one for the scheme, known as Norton Point, which will consist of one 25-storey tower and two further 15-storey blocks.

Cheshire firm The Planning Studio is on the project team as planning consultant, with discussions currently underway to appoint a main contractor in the coming months.

The £170m Great George Street scheme, a proposal to build nearly 500 homes, a 144 bed hotel and 4,200sq m of office space on an abandoned site in the Baltic Triangle, was given the go ahead by the council in December last year.

Green light for disputed £1bn Kensington hotel project

A £1bn hotel scheme in Kensington, west London, has been approved by the Greater London Authority (GLA) for a second time.

The Kensington Forum, a development by Queensgate Investments and Rockwell will see the replacement of the existing 29-storey Kensington Forum Hotel with a new project including a new 30-storey hotel, 340 apartments and 62 affordable flats across three linked blocks. It will also include 2,700 square metres of new green space.

The proposal received more than 750 objection letters, which included complaints about its design, impact on views and character of the area.

An application for the project was rejected by the Royal Borough of Kensington and Chelsea in October 2018 but later overruled by Mayor of London Sadiq Khan. His office’s attempts to approve the scheme were challenged at the High Court at the request of the council over the mayor not giving central government the opportunity to call in the scheme. The GLA withdrew its approval in the face of the challenge.

The same application, with no changes made to the design, has now been re-considered by the Greater London Authority and approved for a second time.

Materials sales higher than expected, CPA figures say

Private housing driving increase

Sales among construction products firms over the past three months have been much higher than expected, the Construction Product Association’s (CPA) latest State of Trade survey has said.

A third of heavy side firms and nearly a half – 48% – of light side firms reported sales were up in Q3 compared to the previous quarter, which spanned the height of the covid-19 lockdown from April to June.

Just 13% of heavy side firms and 9% of light side firms expected sales in Q3 to rise in the CPA’s Q2 survey in July, showing that the performance of the sector during the period surpassed expectations.

The CPA said the recovery had been driven by post-lockdown demand in the private housing sector.

Over half of all construction products firms expect their sales to rise before the end of the year, with 56% of both light side and heavy side manufacturers anticipating sales to increase over the next three months.

It follows a bruising second quarter which saw the weakest balances for construction products sales since the 2008/9 financial crisis.

Construction revealed as top sector for emergency loans

Construction companies have taken on more emergency loans than any other industry, the British Business Bank has revealed.

Building firms have taken just over 218,000 loans across the Coronavirus Business Interruption Loan (CBILS) and Bounce Back Loan schemes. The next highest borrowing level was seen in the motor trade, which has taken out 207,000 loans.

Construction was the second highest borrower by value, with £7.93bn worth of loans agreed up to 4 October. The only sector to take on more debt was the motor industry, which agreed loans to the value of £9.56bn.

The bank’s data only covers loans agreed and does not reveal how much of the loans have actually been drawn down and used. It has not released data, including loan values, for the Coronavirus Large Business Interruption Scheme, which was made available for bigger firms.

Plans unveiled for new Birmingham health campus

Plans have been revealed for a new health innovation and research campus in Birmingham with a development value of £210m.

The Birmingham Health Innovation Campus is set to provide 657,000 square feet of lab, office and incubation space across the 10-acre former metalworks site. It will include a 33,000 square foot six-storey building, which will house a new innovation centre running clinical trials, known as the Precision Health Technologies Accelerator. It will be delivered on the former Battery Park in Selly Oak. It will also provide space for businesses working in medtech, diagnostics and digital healthcare.

Developer Bruntwood SciTech, a JV between Bruntwood and Legal & General, has joined a partnership with the University of Birmingham and two NHS Foundation Trusts – University Hospitals Birmingham and Birmingham Women’s and Children’s – to deliver the project.

Construction was modern slavery hotspot during lockdown

Reports of suspected modern slavery cases in construction were higher than in any other industry during the lockdown period, the charity that runs a national helpline has said.

A total of 57 cases with 209 potential victims were recorded between 23 March and 23 September by the modern slavery helpline, a 24/7 service provided by charity Unseen.

Courtenay Forbes, a business account manager at Unseen, explained the shutdown of other industries put a spotlight on construction work that was potentially exploitative during the pandemic. “I think the reason it was maybe proportionally reported more to us in that period is because it stood out more. So as people were out on their daily walks or their trips to buy essential items, [they might take more notice] if they see construction going on at a property that they might have previously looked past. [Especially if] it was happening at the height of lockdown when no one was meant to be doing any non-essential work.”

Old Oak redevelopment ‘at risk’ without investment

No new investment into west London’s Old Oak and Park Royal redevelopment could see the area miss out on regeneration, the head of the body planning the work has said.

Old Oak and Park Royal Development Corporation chair Liz Peace said the body does “not have the financial muscle” it needs to complete the major regeneration that has been planned around the recently approved HS2 and Crossrail Old Oak Common station.

At a Westminster Forum online conference, she said: “We can’t do any of what we want to do on our own. We need to work very closely with the local authorities, and we also need to work closely with the owners of the public sector land, HS2, Network Rail, TfL and the Great Western Railway.”

The potential regeneration site spans 650 hectares and the plan was for it to deliver 25,000 new homes. The corporation was locked in a legal battle last year with used-car dealership firm Cargiant. It had wanted to use land owned by Cargiant as part of its development, but following an examination by the Planning Inspectorate on the viability of the Cargiant land for use, the corporation has had to redesign its plans. Because it is no longer including the land, the scheme lost out on a planned £250m grant from the Housing Infrastructure Fund.

JV partner sought for £600m Olympic park scheme

The London Legacy Development Corporation (LLDC) is seeking a development partner to deliver 1,200 homes in the heart of Queen Elizabeth Olympic Park.

The £600m project will deliver two new neighbourhoods in the south of the Park at Stratford Waterfront, next to the East Bank culture and education powerhouse, and at Bridgewater Triangle close to UCL’s new campus at UCL East. 

The successful developer will share LLDC’s vision and values to deliver the most successful legacy of any modern Olympic Games. Alongside world-class sporting venues, international cultural bodies and universities, the new neighbourhoods will meet the high design standards already in place at Chobham Manor, East Wick and Sweetwater. 

The Stratford Waterfront site is outstanding, with its 1.6-acres located in a prime position at the heart of the Park. It sits to next to the new East Bank culture and education district and its immediate neighbours will be new outposts for the V&A, Sadler’s Wells, the BBC and UAL’s London College of Fashion, which are all under construction.