What was The Buzz in July?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in July. With a number of new schemes and developments being given the green light, it’s all systems go in the commercial real estate industry.
Hammerson agrees £319m deal to take full control of Birmingham retail assets
Hammerson has completed the acquisition of the 50% stake it did not previously own in Birmingham’s Bullring and Grand Central for £319m.
The real estate investment trust previously said that the acquisition will be funded through the suspension of its share buyback programme, existing cash resources, and an equity placing of up to 10% of total outstanding shares.
Since 2021, Bullring has benefited from over £30m of landlord investment and £75m occupier investment to reposition the former Debenhams unit and bring in new retail concepts, upsizes, and offers from the likes of M&S, Inditex, Sephora, and JD Sports, alongside new leisure provision including TOCA Social and Lane7.
At Grand Central, located above Birmingham New Street station, occupancy is up by 3% year-on-year, reflecting spillover demand from Bullring where space is also at a premium. Food and beverage is a particular feature of the scheme, due to its location.
Green light for London Stadium solar roof plans
A “solar membrane” will soon cover the roof of London’s former Olympic stadium.
Planning permission has been granted to install 6,500 square metres of solar panels on the London Stadium in east London, which is now home to West Ham United Football Club.
The solar covering, which will be installed by summer 2025, will enable the stadium to save more than 200 tonnes of carbon emissions a year and generate enough energy to power all the venue’s major events, the London Legacy Development Corporation (LLDC) said.
Mete Coban, London’s deputy mayor for environment and energy, said the £4.35m project would make the stadium one of the world’s “greenest sports and concert venues”.
Ballymore and Places for London get green light for 3,000-home regeneration scheme in Edgware
Ballymore and Places for London, the wholly owned commercial property company of Transport for London (TfL), have secured outline planning permission for the £1.7billion redevelopment of Edgware Town Centre from the London Borough of Barnet.
The development, masterplanned by Howells, will deliver up to 3,365 new homes, plus 463 student units. Over a third of the homes (1,150) will be affordable, with half for social rent. The affordable homes mix also includes shared ownership, homes for first-time buyers, accessible properties, family homes and senior living apartments.
Led by landscape architects Gustafson Porter + Bowman, the plans will also revitalise Edgware’s Station Road and Church Way with new greenery, street planting and improved pedestrian access. Nearly two hectares of long-inaccessible land will be transformed into Deans Brook Nature Park. Complete with wild planting, nature trails, children’s play areas and seating, the park will offer a peaceful retreat and a new link between Edgware, Mill Hill and Burnt Oak. In total, 3.5km of new walking and cycling routes will connect surrounding neighbourhoods to the town centre.
Lendlease secures £172.8m grant funding for Smithfield Birmingham development
The landmark Birmingham Smithfield development – which will create thousands of homes and jobs – has taken another step forward with the approval of Enterprise Zone funding.
The Enterprise Zone Partnership Board and Birmingham City Council’s Cabinet have agreed the Outline Business Case and Enterprise Zone Funding for Smithfield Birmingham.
A total of £172.8m in grant funding has been allocated to the scheme, making the development financially viable, subject to the approval of full business cases for the different phases of the project, which will be submitted as the scheme progresses.
Last year, the council’s Planning Committee approved revised plans for the development site that will create a city centre destination, which hopes to provide a new home for the iconic Bull Ring Markets, spaces for start-ups, small business, and entrepreneurs, a residential neighbourhood with more than 3,000 homes and a park, as well as culture and leisure attractions.
The project is projected to create more than 9,000 jobs during the construction phase and more than 10,000 additional roles post-construction.
Proposed ban on upward only rent reviews sends shockwaves through commercial real estate industry
The news of the Government’s surprise proposal on 10 July to effectively ban upward-only rent reviews in commercial leases has sent shockwaves across the UK property market this month.
The proposal is included in the English Devolution and Community Empowerment Bill introduced to Parliament by the Deputy Prime Minister. If passed, the proposal would allow commercial rent reviews to adjust both upwards and downwards, marking a major shift for property investors, lenders and businesses from the long-established norm of “upwards only” rent reviews where rents can only increase or remain the same at review.
