When details of the government’s
Levelling Up in the UK agenda were published recently, it was clear that the
construction industry stood to gain from the initiative.
But whilst many of the programmes highlighted in the announcement will
generate work and contracts – notably £4.8 billion for infrastructure
investment, the £2.4 billion Towns Fund and the £830 million Future High Street
Fund – some doubts were raised over how much was being added to existing
budgets.
Yet irrespective of the quantity of ‘new’ government money, there appears to
be fresh momentum behind the regeneration sector in towns and cities – often
involving private sector partnerships with local councils - which is creating
significant opportunities for construction contracts. Industry analysts
Glenigan has taken a look at the opportunities being taken up and available.
When Morgan Sindall unveiled financial results recently it pointed to
mixed-use urban regeneration as a sector where it saw “…increasing
opportunities in the medium to long term and which support the UK's current and
future regeneration and affordable housing needs.”
Morgan Sindall itself currently has a busy urban regeneration development
portfolio. At the end of last year, the firm had 14 projects on site across 11
developments with a gross value of £980 million and with a further 17 projects
set to start on site in 2022.
Significant recent deals signed by the company show the type of schemes
where it sees potential. They include an appointment as preferred development
partner for West Sussex County Council on Horsham Enterprise Park, a new,
18.5-acre neighbourhood on a former industrial site that will provide up to
270,000 sq ft of offices and R&D space, an 'Enterprise Hub', up to 300 new
homes (35% affordable) and local amenities. Morgan Sindall has also secured
appointments to partner with local councils on regeneration schemes in Barnet
in north London, Scarborough and Bury.
Glenigan data highlights other significant new regeneration projects of
varying sizes in the pipeline which will generate contracts nationwide. In
Liverpool city centre, a framework has been approved and further consultants
are due to be appointed on a £200 million public/private scheme, involving the
redevelopment of a 56-acre area known as Upper Central. The scheme - which will
act as a gateway to the thriving Liverpool Knowledge Quarter – will include new
offices and has the potential to create 2.5 million sq ft of new space. Work is
set to start in late summer 2023 and could run for five years (Project ID:
19228377).
Further north in Lancaster, the city council has appointed a team to develop
a costed masterplan for the £250 million Canal Quarter regeneration area, a
mixed-use scheme on the site of a former brewery where work is set to start at
the end of this year. An architect has also been appointed for the scheme which
will involve more residential and business space, facilities for the University
of Lancaster and new uses for historic buildings on the site (Project ID:
12381889).
Meanwhile, Bridgend County Borough Council has recently been approved plans
for a £28.3 million publicly funded mixed use development at the town’s Salt
Lake Car Park Site at Porthcawl Harbour which will include a 2,300 sqm
supermarket, retail, and leisure space and 450 homes. The project is at the
pre-tender stage and work could start later this spring (Project ID: 08514588).
There are also some significant regeneration schemes in the longer-term
pipeline. A development partner is being sought for the Central Winchester
Regeneration project, a £150 million publicly funded scheme in the city centre
involving around 180,000 sq ft of residential space (40% affordable), 80,000 sq
ft for mixed uses space and 25,000 sq ft as retail and Food & Beverage
space. Work could start in early 2024 and run for 60 months (Project ID:
20259051).
