In today’s news, we will look into Arcapita that has revealed the portfolio of UK industrial real estate is worth $100 million. In the meantime, Historic England has released new guidelines for the retrofitting of buildings to be more environmentally friendly. In addition, the number of jobs that are being created to support the development of HS2 is at an all-time high. On top of that, pension funds in the UK pitch in to help build homes that are within reasonable price ranges.
New $100m UK Industrial Real Estate Portfolio from Arcapita
Original Source: Arcapita announces UK industrial real estate portfolio worth $100mn
On Monday, Bahrain’s global investment firm, Arcapita Group Holdings, launched ARC UK Industrial Portfolio, a $100 million (AED367 million) real estate portfolio of multi-let industrial buildings in the UK.
Arcapita plans to buy a portfolio of energy-efficient assets and capital update them to create affordable places that meet the UK’s environmental standards. These modifications will increase occupancy and rent, save tenants money, and assist the UK’s net zero route.
“We are excited about this investment, which builds on our $7 billion global industrial and logistics real estate track record,” said CIO Martin Tan.
“We look forward to working closely with BCP Capital to build a sizable portfolio, and we hope it will serve as a blueprint for socially conscious and pragmatic real estate investment in the future,” he said.
UK strategy and portfolio of Arcapita
The portfolio features energy-efficient property modifications and is part of Arcapita’s long-term, socially responsible real estate investment strategy.
Arcapita aspires to establish a broad tenant base across numerous industries that generates reliable cash flows to protect against economic downturns.
Shorter leases and staggered maturities will offer mark-to-market rent growth and inflation protection at the targeted industrial assets.
“This is a cyclical opportunity to buy resilient industrial properties in markets with attractive supply-demand fundamentals,” said Arcapita Director, European Real Estate Michael Riccomini.
“Our investment will deliver affordable space to meet underserved structural demand as occupier and investor sustainability expectations rise.”
Arcapita is working with BCP Capital, a registered B Corporation and sustainability-focused asset manager, on portfolio operations. John Kehoe, BCP Capital CEO, said, “We are excited to collaborate with Arcapita on this investment and believe this partnership creates significant value for our key stakeholders: tenants, clients, and investors
Historic England Releases Eco-friendly Construction Adaption Guidelines
Historic England issued updated climate action and building adaption guidelines.
The Historic England Advice Note (HEAN) is for local planning authorities, historic consultants, and planners. While under consultation, stakeholders are urged to provide feedback to improve the final advise.
The guidance aims to keep historic buildings green and functional for people as they grow. These building renovations may preserve heritage and promote climate action.
Historic buildings can minimise carbon emissions, fossil fuel use, and energy expenditures through repair, maintenance, and adaptations.
Aligning building adaption with climate policy
This Advice Note clarifies and encourages consistent historic building alteration proposals. According to national planning policies, they should preserve their historical relevance and remain suitable places to live.
The final version can help building owners and inhabitants, however it was developed for specialists. It covers approvals needed for typical alterations to make historic buildings more energy-efficient, local authority assessment of such proposals, and local plan measures to assist climate-conscious historic structures.
Helpful advice for homeowners
Relevant information, counsel, and external guidance are also cited. It also answers issues concerning insulation, heating, windows, and solar panels for listed structures and conservation area residences. This dispels myths about what can be done in these contexts.
Historic England head of policy and evidence Ian Morrison said the new Advice Note we are consulting on shows how historic buildings may become more energy efficient and reduce carbon emissions in England.
It’s not a question of ‘if’ change can happen; it’s a question of ‘how,’ and this new advise will help retrofit ancient structures for the climate crisis. We welcome comments on how the Advice Note will improve decision-making, he added.
The 2023 Local Authority Staffing Survey by Historic England stressed the need for this Advice Note. Energy efficiency retrofit casework increased, according to municipal authorities and building conservation specialists. 59% faced more casework, and 16% felt confident in their decisions.
Record 30,000 HS2 Construction Employment
Original Source: HS2 construction jobs hit record 30,000
Employment supporting HS2 construction is at a record high.
New employment data shows over 30,000 individuals are building the new high-speed network between the UK’s first and second cities.
From July to September 2023, HS2’s employment rose 455 to 30,204, the largest ever.
Three bridge moves were accomplished in one month in the Midlands, the longest green tunnel in Northants began, and six tunnel boring machines continued through the Chilterns, London, and Warwickshire.
HS2 Head of Legacy Natalie Penrose said: “We made a cast iron commitment to support thousands of young people and the unemployed into meaningful careers through HS2’s construction. After three years of intensive civils labour, we did that.
“We remain focused on creating 2,000 apprenticeships and helping as many people as possible upskill, retrain, and start a new career.”
In the last quarter, 144 additional UK companies won work for HS2.
Just over 3,200 UK enterprises are providing goods, services, and materials for project building.
HS2’s economic impact was further highlighted by recent quarterly figures.
This indicates that HS2’s construction partners have granted approximately £11.5bn in tier two contracts to firms of all sizes in every UK region.
Contracts to create the high-speed network are likely to last at least five years, boosting UK suppliers’ business and allowing others to join.
Major civils contracts for flagship stations in Old Oak Common, Solihull, and Birmingham have been granted, but significant fit out plans will create new opportunities.
In the coming year, HS2’s civils-dominated work will give way to rail system integration planning, unleashing a flurry of tech, digital, and rail work packages.
Already, the project has cost £23bn.
UK Pension Funds Build Inexpensive Homes
Original Source: UK pension funds step in to build affordable homes
Part of a £500m five-year initiative to develop 1,000 affordable houses, Pension Insurance Corporation is building 125 in London.
The UK pension funds are building more cheap homes as the housing crisis intensifies.
The latest entrant is defined benefit pension scheme insurer Pension Insurance Corporation (PIC). In collaboration with London Square and Square Roots, it is creating 125 affordable houses in Kingston upon Thames, south-west London.
The mayor of London’s affordable housing scheme gave £4.9m to the £50m project, which will finish in November 2025. First direct affordable housing investment by the corporation. PIC will spend £500m over five years to develop 1,000 affordable homes in England and Wales.
“For every pension scheme that we take on, we need to back each of those schemes with a portfolio of assets,” said Kingston project lead manager Allen Twyning of PIC.
Affordable housing provides stable inflation-linked rental cashflows, driven by central government policy. Sustainable investments. They’re long-term, so it fits our goal of paying retirees and building homes for the needy.”
Built-to-rent, student, and senior living buildings have been invested in by PIC, which protects 339,900 pension scheme members at FTSE 100 and public sector firms and has £44.9bn in financial investments.
Last year, Legal & General agreed to build 3,000 affordable houses in the West Midlands over five years, starting with The Junction, a brownfield site idle for two decades. With Lovells, L&G is discussing building 1,000 affordable houses in the region. L&G’s £138m Homes England grant supports the entire programme.
The 44 London affordable rent apartments and 81 shared ownership apartments will be erected on the site of an NHS clinic that shuttered two years ago in Kingston. The former will have “genuinely affordable” rents, according to the London mayor.
According to National Housing Federation and Heriot-Watt University homeless charity Crisis research, England needs 340,000 new houses each year, 145,000 of which should be affordable.
Government estimates show that between 1991 and 2022, barely 50,000 affordable dwellings were built annually. England built 59,175 affordable homes last year, up 13% from the year before and comparable to pre-pandemic levels.
Most of those homes were developed by housing associations, but inflation, rising borrowing costs, and government rent controls have hindered building and operation.
Last week’s king’s speech didn’t address rising homelessness or affordable social housing. If Labour wins the next general election, deputy leader Angela Rayner says the party will boost affordable homes “in a generation” by cracking down on developers and changing planning regulations.
Summary of today’s construction news
Overall, we discussed Arcapita Group Holdings, a worldwide investment corporation based in Bahrain, has released ARC UK Industrial Portfolio, a portfolio of multi-let industrial buildings in the United Kingdom valued at $100 million (AED367 million). Meanwhile, Historic England released revised recommendations for how buildings should adapt to climate change. Local planning authorities, historic consultants, and other planners can all benefit from the Historic England Advice Note (HEAN). Stakeholders are encouraged to submit feedback throughout the consultation phase to help shape the final advice. Apart from that, there has never been more people working on the HS2 project. More than 30,000 people, according to recently released employment statistics, are working on the new high-speed network connecting the UK’s two largest cities. Furthermore, Pension Insurance Corporation is constructing 125 low-cost homes in the City of London as part of a £500 million, five-year plan to establish 1,000 such homes. The UK pension funds are creating more affordable homes as the housing crisis develops.