June 2015 Newsletter

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Contractors battle it out for Battersea Power Station third phase

Balfour Beatty and Bouygues are said to be the only two contractors in the running for the Battersea Power Station third phase of redevelopment, and the two contractors are battling it out to win the £800m contract.

Phase three will feature 1,310 residential homes in total, 103 of which will be classed as affordable housing. 33,470 sq m of retail and restaurant space is also planned, together with a 167-bed hotel, a new high street, leisure space, a 1,500 sq m community hub and 1,349 car parking spaces.

The homes will be equally split across two new residential developments: Prospect Place designed by Gehry Partners and Skyline and The Flower designed by Foster and Partners.

BSDC project director Scott Grant is reported to have said his team was having to “charm” contractors to get involved in Battersea because firms are so busy at present.

Carillion is already building the 866-home phase one project, known as Circus West, which is due for completion by the end of next year.

Skanska was chosen as the preferred bidder for the £600m phase two section of the development in September and took control of the site in November. Skanska won the main contractor deal after carrying out an £88.6m contract to fit out the new homes in phase one.

Phase two will include the creation of high-end retail space adjacent to the power stations two turbine halls, as well as commercial office space and residential apartments. Each of the two turbine halls is the size of the Tate Modern, with retail space set to the side.

The halls will be used as event spaces, with commercial offices situated above them, and a total of 254 residential properties will be created on the upper levels, which will range from studios to five-bedroom apartments.

Development Company, Mace was appointed as construction manager for its £100m preliminary works. They will be located at the top of the existing façades on the western and eastern flanks of the Grade II-listed building, as well as on top of the structure’s central boiler house.

The second phase also includes the construction of a 2.4 ha public park between the power station and the River Thames that will allow free access along the riverfront.

A consortium featuring SP Setia, Sime Darby and the Employees’ Pension Fund of Malaysia purchased the site for £400m back in July 2012.

 

3.6bn New Development

 

£3.6bn New development framework with transport for London

Sixteen development companies have now been shortlisted for a new development framework with Transport for London, which is estimated to be worth up to £3.6bn.

Firms including Mace, Taylor Wimpey, Great Portland Estates and Capco will now fiercely compete for the opportunity to be one of TfL’s new development partners.

The authority is expected undergo further evaluations before a selected number of the named shortlisted contractors are invited to submit their final tenders. The first stage tender closed on 19 March.

The TfL Property Partnership’s framework includes around 10 million sq ft of potential development area covering more than 50 sites.

Graeme Craig, TfL director of commercial development said: “We received a fantastic response from over 50 different companies wanting to form a property development partnership with us.”

He Added, “We have evaluated the submissions and have narrowed our potential partners list down to 16. They will undergo further evaluation and a select number will be invited to submit final tenders.”

“We look forward to working with the shortlisted companies and will continue our search for partners for future projects that will enable us generate £3.4bn in non-fares revenue over the next decade.

“We expect to appoint partners later this year.”

Other companies on the shortlist are:

  • Argent
  • Balfour Beatty
  • Barratt Homes
  • Berkeley Homes
  • British Land
  • Canary Wharf Contractors
  • Development Securities/Notting Hill Housing
  • Grosvenor
  • Land Securities
  • Mount Anvil/Hyde Group
  • Redrow
  • Stanhope

 

£250m London Tower

 

£250m London Tower Project Awarded To Bouygues

France based international developer, Bouygues Bâtiment, has been selected by Manhattan Loft to build a new residential-led tower in London. The company’s first London tower block project.

The £143m residential tower, designed by Skidmore, Owings & Merrill will be based in Stratford, East London, and will have 42 storeys and will include 248 high-end apartments, 150-bed hotel, a spa, a triple-height lobby and two restaurants.

Works began earlier this year, and are due to be completed by the spring of 2018.

Harry Handelsman, Manhattan Loft Corporation’s chief executive and founder said the project “will continue the Olympic legacy by becoming Europe’s most exciting residential/hotel tower”.

Madani Sow, Bouygues Bâtiment’s International deputy chief executive added, “Bouygues UK teams will be fully committed to turning this innovative vision into reality.

“Technical prowess and architectural quality will combine to produce a building that will be greatly appreciated by its future users.”

The total project has a gross development value of £250m.

 

Major Players Unite

 

Major players unite for HS2 JV

Three major developers have become the latest names to confirm their intentions to bid for High Speed 2 enabling and main works packages.

Sir Robert McAlpine, VolkerFitzpatrick and Bouygues Travaux Publics have united to bid for work under the ‘Align’ joint venture.

A spokesman for the project said their combined experience in delivering “high-profile infrastructure projects safely, on time and on budget, has established their reputation”.

He also added: “Therefore, their alliance was formed naturally as a sound choice for the future delivery of the HS2 enabling and main works packages.”

More than 20,000 people are collectively employed by the 3 companies and they have a combined parent group turnover of more than £12.5bn.

Between them, the contractors have successfully completed 178 km of high-speed rail, 343 km of rail tunnel and more than 875 km of linear projects internationally.

VolkerWessels and Bouygues Travaux Publics recently collaborated on the £260m New Tyne Crossing in the North-east and are currently delivering the design and build civils packages for the Saint Martin Island power plant in the Caribbean.

Other major development contractor’s joint venture bids for HS2 include Laing O’Rourke, FCC Construcción and Murphy, which have combined under the new name of LFM.

 

10 Contractors

 

10 Contractors Secure Places With Hampshire County Council

Development firms including Beard Construction, Midas Construction, Lakehouse Contracts and Osborne have all been selected for works within Hampshire County Council’s intermediate construction framework. Projects range in value from £500,000 to £4m over a period of four years.

Construction works are to include extensions, refurbishments and alterations to existing schools as well as new building works on housing stock, fire, police and NHS properties.

The framework will include projects in Hampshire and the Isle of Wight plus areas within the borough of Reading, with possible wider use in Berkshire and Surrey, as yet to be confirmed.

The majority of individual works are expected to be worth between £1.5m and £3m, said a council spokesperson.

Guy Dawes, Osborne’s framework director said: “We are delighted to be a part of Hampshire County Council’s framework.

“Osborne has worked on many successful projects in London and the south east of England, and we will put our knowledge and experience to use at all times to deliver the best results for our customers.

Other selected companies are:

  • Kier Construction
  • Interserve Construction
  • Amiri Construction
  • Raymond Brown Building
  • W Stirling
  • Longcross Construction

Great Portland

 

Great Portland Estates’ 17 Per Cent Profit Rise Prompts Move To Develop Six Major Schemes In London

Great Portland Estates’ short-term programme consists of six projects totalling more than half a million sq ft, all of which could start within the next two years.

Announcing its financial results for the year ended 31 March 2015, the group reported profit before tax of £508.2m, up from £422.2m in the previous year.

The group had net assets of £2.39bn, up from £1.93bn in March 2014.

GPE’s portfolio valuation was up almost 18 per cent in the year and up 3.1 per cent in the first quarter of 2015.

Great Portland Estates chief executive, Toby Courtauld said, ”We are delighted to be able to report another year of strong results, driven by our development successes and rental growth, and maintaining our track record of long-term outperformance against all of our industry benchmarks.

“London’s economy has continued to outpace that of the rest of the UK and we can expect this to continue, assuming the inevitable uncertainty surrounding the outcome of the proposed EU referendum does not damage London’s appeal as a business capital.

“Both the risk appetite and employment intentions of the capital’s businesses remain expansionary and we anticipate their space needs to follow suit.”

He added that the company was now in “execution mode”, and will deliver organic growth through its developing, refurbishing and growing income across the group’s 3.6m sq ft portfolio.

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