What was The Buzz in October?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in October. With new partnerships forming to developments being given the green light, it’s all systems go in the commercial real estate industry.
Woodbourne Group and Hines form partnership to drive forward £4bn Birmingham Knowledge Quarter
Birmingham’s £4bn knowledge quarter innovation zone project has taken a step forward, after promoter Woodbourne Group announced a partnership deal with Hines which could bring in up to £400m worth of investment for the scheme.
The Birmingham Knowledge Quarter is intended to provide nearly 5,000 homes and over 6m sq ft of commercial space focused on life sciences, artificial intelligence, digital health and advanced manufacturing across a 520-acre site in Curzon Wharf.
West Midlands mayor Richard Parker says the link-up with global developer Hines, announced by Chancellor of the Exchequer Rachel Reeves during this week’s regional investment summit in Birmingham, will provide a “significant boost” for the project.
“We’re creating something really special at the Knowledge Quarter, where some of the streets are named after our region’s great industrial pioneers,” he said.
“Innovation districts around the world thrive when high quality homes are built alongside cutting-edge research institutions. Having a global player like Hines on board, to work with our partners at Woodbourne Group, will be the catalyst we need to turn this area of Birmingham into the place to be for a new generation of innovators and pioneers.”
Blackstone sells $1.3bn of UK logistics assets to Tritax Big Box amid Big Yellow bid interest
Foxtons shares drop sharply after it warns of ‘subdued’ pre-budget sales
The estate agency Foxtons has warned of weak sales for the rest of the year as economic uncertainty and potential property tax changes in next month’s budget deter buyers, sending its shares sharply lower.
The London-focused company said buyers had been holding off ahead of the budget on 26 November, which is a month later than usual.
Slower-than-expected interest rate cuts from the Bank of England are also having an impact by affecting the cost of mortgages, it said. As a result, “sales are likely to remain subdued for the rest of the year”, with a risk that revenues in the fourth quarter could fall below management’s expectations.
Guy Gittins, the chief executive who started his career at Foxtons in 2002 and returned to lead the company three years ago, said: “Macroeconomic uncertainty and speculation surrounding the delayed autumn budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude to purchases.”
London office investment sentiment is improving and could make Q4 the busiest since 2021, says BNP Paribas
According to BNP Paribas Real Estate UK Real Estate Briefing, office investment sentiment is improving in London: H1 2025 investment volumes +31% y/y and deal-pipeline could make Q4 the busiest since 2021.
Our October UK Economic & Real Estate Briefing delves into the UK economy’s resilience to rising labour costs, why gilt yields remain high despite recent rate cuts, and risks to the inflation and growth outlook.
We also explore how strengthening leasing fundamentals and steadily falling swap rates are influencing investment and development activity in the London office market, as well as viability and affordability challenges in the private rental sector.
Major new London life sciences hub gets green light
The Snowsfields Quarter Partnership has secured planning consent to deliver a major new life sciences hub in London.
The partnership, which is a joint venture between landowner Guy’s & St Thomas’ Foundation, Oxford Properties and Reef + Partners, intends to deliver 245,000 sq ft of specialist lab space in the heart of the SC1 Life Sciences Innovation District.
Located next to Guy’s Hospital, Snowsfields Quarter will provide approximately 360,000 sq ft of multi-functional space access three new buildings, including 245,000 sq ft of cutting-edge laboratory facilities for pioneering research in fields such as medical technology, genetics, and neuroscience.
Laurie Lee, chief executive of Guy’s & St Thomas’ Foundation, said: “Snowsfields Quarter builds on the foundation’s long history of investing in the health in Southwark. The development will contribute to the growth and success of the wider SC1 Life Sciences Innovation District, while helping inspire and equip the next generation of scientists and health professionals. Snowsfields will be a place at the cutting edge of healthcare, creating inclusive growth as well as good quality jobs and improving lives locally, while driving groundbreaking research to improve health outcomes globally.”
