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7th February 2022
The prospects for new construction work are set for a boost now that Covid restrictions have been lifted and a return to office working is in progress, particularly on office refurbishment projects and on hotel & leisure schemes geared to a recovery in the travel sector.
Even if developers are cautious about new office schemes, major private and public sector employers are investing in updating and enhancing their employees’ surrounding with some significant refurbishment/redevelopment schemes, particularly in London.
Investing in refurbishment
Major new construction work projects include the £300 million Salisbury Square Development Court & Police headquarters scheme on Fleet Street, a major redevelopment over a one hectare site where Mace has recently been named as the main contractor and work is due to start in the autumn and run for 48 months (Project ID: 17375364).
In nearby Covent Garden, developer Seaforth last month signed up BAM Construction to deliver a £110 million refurbishment of Space House, a Grade II listed 1960s building set across two interconnected buildings. Work is set to start this spring and run for 18 months (Project ID: 19182536)
Meanwhile, in High Holborn, a main contractor has been appointed on a £30 million office refurbishment of Templar House where construction work for client CER Investments is due to start this spring and continue for ten months (Project ID: 21455273).
These three schemes are in addition to the recent start of work on a £100 million refurbishment of Barclays Bank’s headquarters (Project ID: 21414449) and the approval of the £205 million ’50 Fenchurch Street’ development (Project ID: 19410738).
Hotels win approval
The easing of travel and social distancing restrictions bodes well for new construction work in the hotel & leisure sector. Indeed, the latest Glenigan Construction Review shows that the value of underlying hotel & leisure project approvals rose by 64% to £1,262 million in the fourth quarter compared to a year earlier and were up on the previous three months. In London alone, overall hotel & leisure approvals rose by 145% in the fourth quarter on the previous year at £281 million.
Encouraged by the prospect of more overseas and domestic visitors, developers are pressing ahead with more hotel projects in major cities around the country. In London, as well as the recent approval for the £150 million extension to The Ritz Hotel (Project ID: 07378501), detailed plans have been granted for the 169-bed £17.6 million Ruby Southwark hotel (Project ID: 18161862), which is at the pre-tender stage but where work is set to start this spring.
New hotel construction is also picking up in cities which are popular with visitors in the north. In Newcastle, detailed plans have been submitted for the £18 million, 195-bed Vastint Moxy Hotel where work is set to start this summer and could continue for ten months (Project ID: 20302584).
Meanwhile in York, Clegg Construction (Northern) has been appointed as the main contractor and work is set to start in February on a £10 million Premier Inn hotel at Foss Islands Rd on the site of a former carpet store (Project ID: 20249901).
North of the border in Glasgow, detailed plans have been granted for the 150-bed Pacific Quay hotel - complete with a rooftop skybar and restaurant - which is also valued at £18 million and where work could start later this summer and continue for 13 months (Project ID: 19425247).
The end to social distancing should also breathe life into construction work for sports & leisure-related centres. New project starts in the sector in the fourth quarter were buoyed up by the start of work on some major schemes such as the Manchester Aquatics Centre (Project ID: 21191005) and the £40 million ‘Palmer Park Leisure Centre’ in Reading (Project ID: 20507940).
Assuming no fresh Covid restrictions, the pipeline in the sector should generate more construction work over the year ahead as schemes such as the new £30 million Oxford United FC stadium (Project ID: 22018448) and the £26 million Eastwood Park leisure and theatre scheme in Glasgow (Project ID: 21009680) get underway.
Glenigan customers can see details of new construction work in the office and hotel & leisure sectors if part of your subscription.
Not a Glenigan customer, but would like to see detailed sales leads for new construction work in your regions? Request a free demo of Glenigan today so we can show the size of the opportunity for your business.
Request a free demo of Glenigan today so we can show the size of the opportunity for your business.
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