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Gary Neville £200m Manchester tower gets the final nod

Gary Neville and Ryan Giggs’ £200m St Michael’s skyscraper scheme in Manchester has got the full green light.

The consortium of investors supporting the footballers-turned-developers has been told the scheme will not be called in by the Secretary of State upholding earlier city council full planning approval.

Jackson’s Row Developments is the client for the St Michael’s project to be built near the Grade I-listed Manchester Town Hall.

Located in Deansgate, the St Michael’s scheme will consist of a landmark tower and stepped extended podium building designed by architect Hodder and Partners.

This replaces architect Make’s previous twin tower plan, which was dropped in the face of complaints that it would destroy historic buildings at the site.

As a result the Sir Ralph Abercromby pub and the frontage of the Bootle Street Police Station will now be preserved within the scheme.

The top of the tower will house a single penthouse split over two levels with terrace at each end

Including a large podium building the tower will rise to 39 storeys and contain a five star, 200-bed hotel with nearly 190 luxury flats above.

Office building forms part of the podium for the main tower

There will also be 148,000 sq ft of offices in a 9-storey stepped building forming part of the podium to the east of the main tower. This will include rooftop bars with stunning outdoor rooftop terrace.

Chinese construction group BCEGI is an active equity and construction partner in St Michael’s, owing a 21% stake.

At present there is no time table for enabling works and construction, which will employ nearly 300 throughout the build.

Neville said:   “We are delighted that the Secretary of State has decided to not call in our revised plans for St Michael’s and that the vision for this landmark mixed-use scheme will be realised.

“It’s been more than a decade since the idea to regenerate a strategic city centre location was first considered – and our whole team is very pleased that we can focus on delivering this project for Manchester, bringing new high-quality development that will enhance the city’s position both nationally and internationally.”

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Lendlease team takes over £1.2bn London Docks scheme

Lendlease and US property giant Starwood have bought out the development rights for the 62-acre Silvertown Quays redevelopment in East London’s Royal Docks.

Redevelopment of Millennium Mills will still form the centrepiece of phase 1

The partners will replace the Silvertown Partnership consortium of Chelsfield Properties, First Base and Macquarie Capital, which was selected as development partner by the Greater London Authority back in 2012.

Under the new deal, Lendlease Europe Holdings will act as development manager for the 7m sq ft scheme, following a phased transition from the existing development manager, First Base.

Silvertown Partnership was planning to redevelop the large swathe of former industrial land between Canary Wharf and London City Airport with offices and 3,500 homes.

Phase 1 at Silvertown Quays was ready to start with an iconic flour mill not used since the 1980s converted into a new centre for business and enterprise alongside more than 800 homes.

Under the new deal all works at Millennium Mills will form half of phase one  which must be completed before the lease agreement for phase 2 can be drawn down under the Master Development Agreement.

The deal includes as yet unpublished milestone dates for the submission of the approved planning application for the detailed planning permission for Phase 1 and its completion.

Dan Labbad, Chief Executive Officer, International Operations, Lendlease said: Working in partnership, we plan to create a place that’s innovative and environmentally sustainable, and will provide tangible benefits for the local community for the long-term. These are standards and commitments we apply to all our work and Silvertown Quays is no exception.”

Jeff Dishner, Global Head of Real Estate Acquisitions, Starwood Capital, said: “We are excited to partner with Lendlease on this prominent East London regeneration scheme that will help address London’s much needed affordable housing and private residential demand.

“We believe in London’s long-term growth potential and are confident that the underlying value for this waterfront site.

“Working with Lendlease, our vision is to invest significantly into the infrastructure around the site and create a completely new and creative neighbourhood that meets consumer demand, reinvigorates London’s East End and delivers for our investors.”

Rival bidder Indian conglomerate Essel Group had also submitted proposals to the Greater London Authority to purchase the site with plans  for a major world class visitor attraction, hotel and leisure complex to celebrate India’s culture and history.

The firm planned to work in partnership with HPW Architects and Mace on its project which has now fallen by the wayside.

A Silvertown Partnership spokesperson said: “We are very proud of the success of The Silvertown Partnership in unlocking the potential of Silvertown to deliver much needed homes; including affordable homes and thousands of jobs for Londoners.

“That vision for Silvertown is now being delivered with the planning consent for 7m sq ft secured and Millennium Mills’ future safeguarded.

“We wish TSP and its new owners LendLease and Starwood the very best in continuing the regeneration of the area.”

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Planning row blocks £1bn Silvertown Quays scheme

Plans for a £1bn cultural centre and 3,500 homes at Silvertown Quays in London are being blocked by red tape.

Plans are being blocked for a £1bn cultural centre and residential scheme

Indian conglomerate Essel Group started talks earlier this year about taking over development rights for the 62 acre site from the Silvertown Partnership consortium of Chelsfield Properties, First Base and Macquarie Capital.

Essel has lined up a raft of construction partners including Mace, Multiplex, Kier and Ardmore to work on site plans created by HPW Architecture.

But the proposals are now being held up due to a contractual row with site owners the Greater London Authority (GLA).

The delay has prompted a broadside from Essel chairman Dr Subhash Chandra.

He said: “Since the EU referendum, I have watched the Brexit negotiations with cautious optimism, encouraged by the government’s pledge to improve the accessibility of trade with India through the new India-UK Trade Partnership, and by initiatives such as the Mayor of London’s #LondonIsOpen campaign.

“It has been my long-held ambition to build at least three major cultural centres in the world, the first in London, in the Royal Docks, and then in the United States and Asia, that will be dedicated to helping all nations explore peaceful solutions to the current threats facing humanity.

“As part of this regeneration of Silvertown Quays, we have also committed to build 3,500 homes, 35% of which will be affordable housing.

“This is the kind of investment the Mayor’s campaign aims to achieve – one that shows London is united with the world and proud of its history.

“I am deeply disappointed, therefore, that Essel Group has been prevented from having our visionary proposal formally tabled to the Greater London Authority, the owners of the site.

“The GLA, while privately praising our plan, says it cannot formally present it to the Mayor without the authority of The Silvertown Partnership.

“This defies logic because Silvertown is publicly owned land and this approach suggests that the commercial interests of the developers are being put ahead of what is best for London.

“The Silvertown Partnership require the approval of the GLA before they can proceed with a rival offer from another party to develop Silvertown.

“For common sense to prevail, the GLA must seize this opportunity to consider credible alternatives.

“As such, we remain hopeful that the British government and the Mayor of London will not allow this important investment into London to be lost.”

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British Land has submitted plans for a giant new district in London’s Docklands.

The firm has entered into a Master Development Agreement with Southwark Council and submitted an outline planning application for the Canada Water Masterplan.

The planning submission also includes a detailed planning application for the project’s first three buildings, which include workspace, homes and a new leisure centre.

The three buildings are part of a major first phase of the development covering a total of 1.8msq ft of mixed use space, comprising one million sq ft of workspace, 250,000 sq ft of retail and leisure space and 650 homes.

Subject to planning approvals, construction of the first buildings will begin in spring 2019.

The wider Masterplan is expected to deliver up to 3,000 new homes, two million sq ft of workspace and one million sq ft of retail, leisure, entertainment and community space including proposed health and social infrastructure, and educational uses for all ages.

Roger Madelin, Head of Canada Water Development, British Land, said: “Submission of our planning application for the Canada Water Masterplan marks an important milestone in the delivery of this project.

“Drawing on our experience of creating vibrant, mixed-use places across the capital, this major urban centre at Canada Water will provide an exciting place to live, work and visit, delivering high quality design, active spaces and significant economic and social benefits for the local community.

“We have worked closely with Southwark Council and the local community of Canada Water to achieve this important first step, and will continue to work with them to deliver a low carbon, energy efficient neighbourhood.

“We will put health and wellbeing at the heart of our plans to ensure the buildings and spaces we create encourage and support healthy lives.”

Cllr Peter John, Leader of Southwark Council, said: “It is fantastic to see this project moving forward.

“British Land have done great work to consult and engage with local people and the resulting Masterplan will deliver what local people want to see, including a guaranteed 35% affordable housing split 70% social rent and 30% shared ownership in the first phase, new retail spaces and job opportunities, education and health facilities and a brand new leisure centre.”

The 53 acre site comprises Surrey Quays Shopping and Leisure, the SE16 Printworks, the Dock Offices and the former Rotherhithe Police Station.

The Masterplan envisages a mix of uses and innovative public spaces designed for a range of ages, incomes and life stages.

The buildings, set around water and green public spaces, will together create a vibrant destination where people can live, work and be entertained throughout the day and into the evening.

On completion, the Masterplan will be home to approximately 20,000 jobs with thousands of people working on site during construction, including apprenticeships and training.

A decision on the planning application is expected by the end of the year.

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Barratt to pay for post Grenfell cladding upgrade on Croydon block

Barratt Developments has agreed to foot the £2m bill to replace unsafe cladding on the Citiscape development in Croydon.

Cladding on the building failed safety tests in the wake of the Grenfell tragedy and worried leaseholders were facing having to pay the costs themselves.

But Barratt has now stepped forward following discussions with the government.

The company said it will cover future and backdated costs relating to employing a fire warden and the removal and replacement of unsafe cladding from the building.

Housing Secretary Sajid Javid, said: “I applaud Barratt Developments’ decision to cover the costs of fire safety works.

“They have listened to the concerns of Citiscape residents, engaged with government and have done the right thing.

“Other building owners and house builders in the private sector should follow the example set by Barratt Developments to protect leaseholders from costs and begin essential fire safety works.

“I want to see all leaseholders in this position get the peace of mind they deserve and I am keeping this under review.”

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Green light for London Deutsche Bank HQ

Developer Landsec has gained revised planning consent for its 564,000 sq ft office scheme above Crossrail’s Liverpool Street Moorgate ticket office in the City.

The east facade will consist of a series of varying trusses that will span over 60m to each side of the station

The development at 21 Moorfields will be the new headquarters for Deutsche Bank, which agreed to take most of the space contigent on planning being granted.

Landsec had already committed to construct the substructure, which is due to complete in March 2019 and now expects that construction will continue straight through to practical completion, anticipated in November 2021.

Landsec says the new building will contain twice the quantity of steel in the Eiffel Tower

Colette O’Shea, Managing Director, London Portfolio, Landsec, said: “We welcome the resolution to grant planning permission and look forward to continuing to work in partnership with Deutsche Bank and the City of London Corporation to deliver this strategically important site.”

Chris Hayward, Planning and Transportation Committee Chairman, City of London Corporation, said: “With the Elizabeth line supporting the creation of an estimated 63,000 jobs in the City of London and Isle of Dogs, this office, located above a future station, fits in well with the City’s ambitions for growth.

“Deutsche Bank’s move demonstrates a high level of confidence in the City of London as a leader in financial and professional services. The City Corporation remains committed to supporting businesses with an additional 1.37m sq m of office space under construction that has the potential to accommodate 85,000 workers.”

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Deal to start world’s tallest modular towers in Croydon

Investors have agreed a funding deal to start construction of a twin-tower scheme of build-to-rent flats that will become the world’s tallest offsite project.

Tide Construction will deliver the project using its off-site manufacturing system, Vision Modular Systems

Greystar and Henderson Park have exchanged contracts with Tide Construction to acquire the 550-apartment residential development in Croydon, London.

On completion, the 101 George Street development will comprise two of the world’s tallest towers built using modular construction, at 44-storeys and 38-storeys.

The site has full planning permission and the transaction is expected to close in the first quarter of 2018.

Enabling works for the twin tower scheme are already underway at the Essex House site in East Croydon.

The towers scheme, drawn up by HT Design, will be worth over £150m and will be a trailblazer for modular construction methods.

Presently, the tallest prefabricated building in the world is a 32-storey block in New York.

Tide is both a development and contracting company, and has delivered several projects in recent years using its off-site manufacturing system, Vision Modular Systems.

101 George Street is the fourth project Greystar and Tide Construction have delivered and, once complete, will bring the total number of units the partnership has delivered in London to 1,700 units.

Christy Hayes, CEO of Tide Construction, said: “The towers of 101 George Street will stand tall as testimony to the potential of modular construction within the UK and beyond.

“Modular construction is highly suited to rental developments as investors and operators can welcome residents into their homes sooner and open the revenue streams earlier.”

The modules will be shipped from a factory in Bedford with the electricity prewired and plumbing, furniture and windows already installed.

The total build time for the project will take just 24 months, from construction starting to residents moving in to their new homes.

Troy Tomasik, Greystar Managing Director, Investments, said: “This is an ambitious development and an exciting milestone for Greystar which signals our commitment to finding innovative solutions to London’s housing challenge.”

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Manchester building boom hits new heights

Manchester is leading a regional city building boom driven by ambitious residential and commercial projects.

How Manchester’s skyline could look in 2020

The latest Deloitte Crane Survey shows bumper growth for a second year in Manchester with 20 major residential projects and six major office schemes starting in 2017.

Sustained strong growth means Manchester is enjoying a 60% jump in residential and 75% hike in office projects now under construction with most major high rise schemes.

The 11,135 residential units currently being developed represents the third year of sustained growth in the city despite rising construction costs and uncertainty in the market as a result of Brexit negotiations.

Simon Bedford, partner at Deloitte Real Estate, said: “Manchester has firmly established itself as one of Europe’s fastest growing cities.

“Backed by significant investor confidence, a strong business community, and an influx of new talent, the demand for property, particularly in the residential market, has never been more evident.”

He added: “With the additional investment we are seeing from international markets such as South East Asia, Middle East, and the US, Manchester’s real estate market will continue to develop at scale, cementing the city’s position as a global destination for business, leisure, and education.”

The Crane Survey also reported strong growth in Birmingham and Leeds where developers’ confidence for city centre residential development remains strong.

Deloitte 2017 Crane Survey – No. projects
Residential Offices Student rooms Hotel Retail / Leisure Education Total
Manchester 20 5 0 5 1 1 32
Birmingham 13 4 3 2 1 1 24
Leeds 5 3 2 0 2 4 16
Residential units under construction Office space (sq ft) under construction
2016 2017 % change 2016 2017 % change
Manchester 6,963 11,135 60% 1,486,000 1,509,000 1.5%
Birmingham 2,331 4,077 75% 1,441,500 1,436,250 -0.4%
Leeds 619 1,586 156% 460,750 771,250 67%

Several significant Manchester schemes are likely to commence in 2018 including major residential developments as part of the St. John’s masterplan, residential blocks at Circle Square, further activity from Manchester Life Development Company in Ancoats and New Islington and work on Angel Meadow, which forms part of the  transformational Northern Gateway project.

Birmingham saw 24 major construction starts last year. This was again driven by the boom in city residential developments, up nearly a third to 13 schemes delivering 2,500 new units in 2018 alone.

Student housing schemes jumped to deliver a 53% rise in bedroom to 1,782 spaces. Birmingham’s office development has surpassed 1m sq ft for the second consecutive year, with over 1.4m sq ft currently under construction.

In Leeds residential construction across the city centre hit its highest level in a decade – 1,586 units across five development sites.

Leeds has also witnessed further growth in the higher education sector with four new starts recorded adding over 0.5msq ft into the development pipeline.

Leeds continues to deliver good volumes of new office space with three new construction starts in 2017.

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Barratt London shelves 27-storey Aldgate tower project

Barratt London has shelved plans to build phase two of its major Aldgate Place scheme against a backdrop of falling central London flat prices.

Previously planned phase 2 of Aldgate Place

The firm is also closing its central London Aldgate division office and planning to move around 70 staff to new offices on the Olympic Park where they will join relocating Stratford office staff to create a new bigger Barratt East London division.

Under the London business shake-up Barratt’s Brentford division will also be rebranded as Barratt West London.

Sources told the Enquirer that Barratt and joint venture development partner British Land had decided not to proceed with the final phase of the Aldgate scheme, due to launch this year.

Completed phase one of Aldgate Place; abandoned phase 2 plan with 27 storey tower

The second phase of the development incorporated two residential buildings, one of seven storey and the other rising to 27 storeys for retail, private residential and commercial space.

Property website Rightmove reveals more than 400 flats currently for sale within walking distance of Aldgate East tube station.

Gary Ennis, Regional Managing Director, Barratt London: “As part of Barratt London’s growth strategy and focus on delivery of high quality developments across the capital, we are combining our Aldgate and Stratford offices to create one new larger team, Barratt East London.

“This will bring together the skills and expertise across our London teams, and enable us to deliver focused and efficient growth. We are committed to growing our business, building successful new communities and helping Londoners get a foot on the property ladder.”

In addition to the London changes, Barratt is also opening a new division in the East region.

The new division, BDW Cambridgeshire, will help Barratt to increase volumes to meet the growing demand for new homes in the region.

BDW Cambridgeshire already has terms agreed on land for more than 1,000 units and will be creating around 50 new jobs over the next three years, with hundreds more supported in the supply chain and through local sub-contractors.

The division, which will be based in Peterborough and open this year, is focused on strong markets in areas highlighted recently by the National Infrastructure Commission’s Report, Partnering for Prosperity.

The report identified opportunities to create “well-designed, well-connected new communities” for the Cambridge – Milton Keynes – Oxford arc.

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Mayor approves £1.4bn Croydon Westfield shopping centre

London Mayor Sadiq Khan has approved plans for a £1.4bn Westfield shopping centre in Croydon, clearing the final planning hurdle.

Construction expected to start in early 2019

Joint venture specialist retail developers Westfield and Hammerson can now redevelop and combine Croydon’s current shopping centres – the Whitgift Centre and Centrale – to create the 1.5m sq ft retail-led scheme.

A 13-month demolition programme at the existing Whitgift Centre will begin later this year, with construction due to start in 2019.

Up to 1,000 flats will be delivered in five tower blocks overlooking Wellesley Road. The first two buildings will be developed with the construction of the retail scheme, with the remainder being developed in a later phase.

Plans were first granted permission in 2014, but in October last year an enhanced application was submitted with the addition of a third storey of retail and restaurants, and a new Marks & Spencer store.

Up to 2,500 people will work on the shopping centre at peak construction

The mayor gave the project the green light after it was approved by Croydon Council’s planning committee. It will be the third Westfield shopping centre in the capital, alongside the company’s sites in Shepherd’s Bush and Stratford.

Westfield UK/Europe’s Head of Development, John Burton OBE, said: “The endorsement from the Mayor of London represents a great start to the year for the project and for Croydon.

“The London Borough of Croydon responded positively to our revised outline planning application, and we’re pleased that this has now been approved by the Mayor. Our plans will help establish Croydon as South London’s best retail, dining and leisure destination and deliver new homes and 7,000 jobs.”

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