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Modern leisure centre construction with cranes and scaffolding.

Willmott Dixon Set to Construct £31m Passivhaus Leisure Centre in Surrey After Delays

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Willmott Dixon has emerged as the preferred bidder for the construction of Cranleigh Leisure Centre, a £31 million project in Surrey. The development, designed to meet stringent Passivhaus sustainability standards, faced delays due to evolving market conditions and the resolution of planning conditions. Construction is now slated to commence next summer, with an anticipated opening in winter 2027.

Key Takeaways

  • Willmott Dixon is the preferred bidder for the £31m Cranleigh Leisure Centre.
  • The project has been delayed, with construction now expected to start next summer.
  • The new facility will be built to Passivhaus standards and is projected to open in winter 2027.

Project Overview

Waverley Borough Council has selected Willmott Dixon as the preferred contractor for the new Cranleigh Leisure Centre. The project, valued at approximately £31 million, was initially planned to begin construction this autumn following the attainment of planning permission in March. However, the council has revised the timeline, with work now scheduled to start next summer.

Reasons for Delay

The council cited several factors contributing to the project’s revised schedule. The planning permission came with “several conditions that took time to resolve.” Furthermore, significant changes in market conditions during this period prompted a comprehensive review of the project, leading to the timeline adjustment. Despite these setbacks, the council stated that steady progress is being made behind the scenes to prepare for the commencement of construction.

Facility Features and Sustainability Goals

The new Cranleigh Leisure Centre will be a state-of-the-art facility built to Passivhaus sustainability standards. It is set to include a six-lane, 25-metre swimming pool, a gymnasium, a soft play area, and a café. This modern facility will replace the existing 55-year-old leisure centre, which has reportedly “exceeded its life expectancy.”

Sustainability is a core focus of the new development. The centre is expected to consume 60% less energy per square metre compared to the current building and aims for a 75% reduction in annual operational carbon emissions. The council approved a revised capital budget of around £31 million for the scheme in October 2023. The project’s history dates back to 2018, with initial plans being put on hold due to the Covid pandemic.

Willmott Dixon’s Portfolio

This project adds to Willmott Dixon’s ongoing portfolio of leisure centre developments. The company is also involved in a £31.5 million build in Leighton Buzzard, Bedfordshire.

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UK's largest timber office building in Clerkenwell.

McLaren Construction to Erect UK’s Largest Timber Office in Clerkenwell

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McLaren Construction has been appointed by Global Holdings Management Group to build Xylo, a ground breaking 100,000 sq ft office development in Clerkenwell, set to become the UK’s largest all-timber frame workplace. This nine-storey scheme signifies a major advancement in sustainable office construction in London, with completion targeted for the second quarter of 2028.

Key Takeaways

  • McLaren Construction will deliver Xylo, a 100,000 sq ft timber office in Clerkenwell.
  • The building will be the UK’s largest all-timber frame office.
  • Completion is scheduled for Q2 2028.
  • The project emphasizes environmental sustainability and healthy workplaces.

A Landmark in Sustainable Construction

Xylo is poised to be one of the world’s most environmentally advanced office buildings. Its entire structure will be constructed using glulam beams and cross-laminated timber (CLT), supplied by Hybrid Structures. This extensive use of engineered timber significantly reduces embodied carbon compared to traditional steel and concrete construction methods. Furthermore, the timber design aims to create a warm and natural internal environment for future occupants.

Darren Gill, managing director for London and South at McLaren Construction, highlighted the project’s significance: “This is a pioneering use of structural timber and off-site manufacturing to deliver a high level of buildability and sustainability on a typically tight central London site.” He added that rigorous digital information management systems will be employed to monitor carbon emissions throughout the construction process, ensuring ambitious targets are met.

Vision for a Greener Workplace

Josh Lawrence, chief executive of Global Holdings Management Group UK, expressed enthusiasm for the collaboration: “We are delighted to be working with McLaren to deliver Xylo – a game-changing project and a significant milestone for our industry.” Lawrence believes Xylo will be an ideal space for leading companies, showcasing cutting-edge environmentally friendly technologies within a beautiful building, complemented by its vibrant neighbourhood and excellent transport links.

The project involves a collaborative team, including architects Piercy&Co, project manager Avison Young, services and sustainability engineers Max Fordham, and structural and civil engineers Heyne Tillett Steel. The development moves into full construction following the completion of enabling works.

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Cemex factory closure due to HS2 compensation payout.

HS2 Compensation: Cemex Secures £30m Payout Over Birmingham Factory Closure

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The High Court has ordered the government to pay nearly £30 million in compensation to Cemex UK, a major supplier of cement and concrete. The payout follows the compulsory purchase of the company’s Washwood Heath business in Birmingham, which was required for the construction of the High Speed 2 (HS2) rail project.

Key Takeaways

  • Cemex UK awarded £29.9 million in compensation by the High Court.
  • The compensation is for the compulsory purchase of its Birmingham factory for HS2.
  • The factory housed operations including railway sleeper manufacturing, an asphalt plant, and an aggregate supply business.
  • The dispute centred on compensation for the railway sleeper facility, which took two years to relocate.

The Compulsory Purchase

The transport secretary acquired Cemex’s Washwood Heath site in 2020, as the land was designated for a control centre for the HS2 megaproject. The site was crucial for Cemex, housing a factory for railway sleepers, an asphalt plant, and an aggregate supply business. The compulsory purchase order necessitated the relocation of all three operations to different sites.

Compensation Dispute

While Cemex and the transport secretary initially agreed on terms for two of the three business activities, a significant disagreement arose over the compensation for the railway sleeper facility. Cemex took two years to move this operation to a new location in Rochester, Kent, which the company described as inferior. This dispute led Cemex to take legal action against the government over the offered compensation amount.

Cemex initially sought over £59 million in compensation. However, the government contended that the company had actually made a gain of £4.5 million due to a market downturn for railway sleepers. During court proceedings, Cemex revised its estimated loss to £30.5 million, while the government’s representatives acknowledged a loss but valued it at £10.4 million.

High Court Ruling

In their final judgment, Judges Elizabeth Cooke and Peter D McCrea ruled in favour of Cemex, ordering the government to pay £29.9 million. The judges determined that Cemex was entitled to compensation covering the value of the land, relocation costs, loss of profit, professional fees, and other associated expenses under the terms of the compulsory purchase order.

The court noted that the Washwood Heath site was strategically advantageous for Cemex due to its proximity to the West Coast Mainline and its operational efficiency. An interim decision had previously highlighted concerns about the limited capacity of the new Rochester factory and the difficulty in predicting the future of Cemex’s business in this sector. The final judgment took into account projected future demand for specialist sleepers and ongoing sales to Transport for London.

Judges expressed dismay that the parties could not reach an agreement themselves, describing the case as “long and extremely complicated” with “subject matter bordering on impenetrable.”

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New hospital construction site with cranes and scaffolding.

Jersey’s New Hospital Contractor Faced £136 Million Losses

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Jersey’s government has selected Bouygues UK as the preferred contractor for its new acute hospital at Overdale, despite the company reporting significant financial losses. The construction giant, a subsidiary of French firm Bouygues Construction, has incurred a total of £136 million in losses since 2022. This revelation has raised questions about the contractor’s financial stability for such a major infrastructure project.

Key Takeaways

  • Bouygues UK, chosen for Jersey’s new hospital, recorded £136 million in losses between 2022 and the present.
  • The company’s parent firm has injected £129 million into Bouygues UK over the same period.
  • Jersey’s Health Minister, Deputy Tom Binet, has expressed confidence in Bouygues UK’s ability to deliver the project.
  • A backup contractor has been identified as a contingency measure.

Financial Performance of Bouygues UK

Bouygues UK’s financial accounts, publicly available since September, show a consistent pattern of losses. The company reported losses before taxation of approximately £40 million in 2022, followed by around £60 million in 2023, and a further £30 million last year. This marks the third consecutive year of significant financial deficits for the firm.

Government’s Response and Confidence

Despite these financial figures, Jersey’s Health Minister, Deputy Tom Binet, has defended the selection of Bouygues UK. He stated that the New Healthcare Facilities Programme team conducted thorough due diligence and considers Bouygues UK to be a “stable company.” Deputy Binet highlighted that the parent company, Bouygues Construction, has provided substantial financial support, injecting approximately £129 million into Bouygues UK over the last three years. He also mentioned that the parent company will offer a guarantee for the project.

Project Timeline and Contingency Plans

Bouygues UK is set to enter into a professional services agreement with the Jersey government. The company will collaborate with the New Healthcare Facilities Programme team to refine proposals, confirm supply chain and pricing, and prepare for the main construction works, which are anticipated to begin in early 2026. The government aims to finalise the contract before the end of the current parliamentary term. To ensure resilience and commerciality, an unnamed backup tenderer has also been confirmed, should final contract terms not be agreed upon with Bouygues UK.

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Groundbreaking ceremony for new Coventry diagnostic centre.

Coventry’s New Community Diagnostic Centre Breaks Ground, Promising Faster Diagnoses

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A ground breaking ceremony last Thursday officially marked the commencement of construction for Coventry’s new Community Diagnostic Centre (CDC). This multi-million-pound development, located in the Paybody building, aims to bring essential diagnostic tests closer to home for local residents, facilitating earlier detection of conditions like cancer and heart disease.

Key Takeaways

  • The new CDC will offer diagnostic services closer to the community, reducing the need for hospital travel.
  • It is expected to serve approximately 90,000 patients annually, performing up to 75,000 additional tests each year.
  • The facility is scheduled to open in late 2026.

Transforming Healthcare Access

The new centre is strategically positioned for easy access, with its proximity to the Coventry Urgent Treatment Centre, local GP practices, and mental health services. This location is intended to streamline patient journeys and improve overall healthcare accessibility within the city.

Melvin Henry, Regional Capital Programme Manager (Midlands) at NHS Property Services, highlighted the transformative nature of the project. “This ground-breaking ceremony signifies the start of works on a multi-million-pound development which will transform the Paybody building into a dedicated Community Diagnostic Centre (CDC),” he stated. “NHS Property Services is focused on delivering a better NHS estate that is fit for the future by investing in and refurbishing buildings where our NHS colleagues can deliver excellent patient care.”

Enhancing Patient Care and Reducing Inequalities

Professor Andy Hardy, Chief Executive Officer of University Hospitals Coventry and Warwickshire (UHCW) NHS Trust, emphasized the milestone this development represents for local healthcare. “The start of the development of the CDC is a major milestone for healthcare in Coventry, completely transforming the way local communities access tests and scans and receive diagnosis for a range of conditions,” he commented. “It will support communities across the city to live longer, happier lives.”

He further added, “This activity forms part of our wider commitment to improving health inequalities and ensuring that everyone has easy access to the care they need. We’re pleased to be working alongside Tilbury Douglas to deliver the CDC project, and excited to see the positive difference this facility will make.”

Collaboration and Future Benefits

Tilbury Douglas, the construction partner for the project, expressed their enthusiasm for the collaboration. David Tighe, Regional Director West Midlands at Tilbury Douglas, said, “We’re delighted to be working in collaboration with UHCW NHS Trust and NHS Property Services to deliver this key healthcare facility for Coventry. Our experienced team is focused on ensuring the successful transformation of the existing building into a modern, efficient diagnostic centre.”

The centre will operate Monday to Friday, aiming to provide efficient and high-quality care. The project is expected to deliver a sustainable facility that offers long-term benefits to both the NHS and the Coventry community.

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Heathrow Airport with a new third runway under construction.

Heathrow’s £49bn Third Runway Plan Gets Government Green Light, Amidst Controversy

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The UK government has officially approved Heathrow Airport’s ambitious £49bn plan to construct a third runway, a decision that promises to significantly expand the nation’s busiest hub. The project, slated for completion by 2035, aims to boost flight capacity by 57% and accommodate an additional 66 million passengers annually. However, the approval comes with considerable challenges, including a hefty price tag, environmental concerns, and the complex rerouting of the M25 motorway.

Key Takeaways

  • The government has given its blessing to Heathrow’s £49bn expansion plan, including a third runway.
  • The project aims for completion by 2035, potentially increasing flight movements by 57% and passenger numbers by 79%.
  • A significant portion of the cost, £1.5bn, is allocated to diverting the M25 motorway.
  • Airlines express concerns about increased passenger charges to fund the expansion.
  • Environmental groups strongly oppose the plan, citing climate impact and disruption.

A Transformational Project with a High Price Tag

The approved plan involves the construction of a new 3,500m runway, estimated to cost £21bn. An additional £12bn is earmarked for new terminal infrastructure, with other expansion works bringing the total projected cost to £49bn. The government asserts that this expansion will enhance connectivity, support trade and tourism, and create over 100,000 jobs, thereby bolstering the UK economy. Transport Secretary Heidi Alexander stated that the project will “enable quicker, quieter, and greener flights.”

M25 Diversion and Alternative Proposals

A major engineering feat within the plan is the diversion of the M25 motorway, estimated to cost £1.5bn. This complex manoeuvre is necessary to accommodate the new runway. The government selected Heathrow Airport Ltd’s proposal over a rival £25bn plan from the Arora Group, which featured a shorter runway and did not require moving the M25. Despite the rejection of their specific proposal, the Arora Group has indicated a willingness to remain involved in the project.

Concerns and Opposition

The significant cost of the expansion has raised concerns among airlines, which fear that current passengers will bear the brunt through increased charges. Already one of the world’s most expensive airports, further hikes are a worry. Environmental groups have voiced strong opposition, labelling the project an “act of national self-harm.” They argue that any expansion is incompatible with the UK’s legally binding climate targets and will lead to the demolition of villages and displacement of residents. Paul McGuinness of the No 3rd Runway Coalition highlighted the potential demolition of villages and the displacement of up to 15,000 residents.

The Path Forward

The government is updating the Airports National Policy Statement to align with the new plans. A development consent order must be secured before construction can commence. Ministers are hopeful that work can begin within the current parliamentary term, potentially by the summer of 2030, with the runway operational by 2035. The Climate Change Committee will be consulted to ensure the expansion aligns with the UK’s net-zero framework.

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Modern Scottish housing development with construction cranes.

£15 Million Investment Fuels Cruden’s Ambitious Growth Plans for Scottish Housing

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BGF has injected £15 million into Scottish housebuilder Cruden, a move set to significantly accelerate the company’s development programme and expansion across Scotland. This strategic investment will enable Cruden to bring forward major projects from its landbank and unlock new opportunities, bolstering its pipeline of 4,500 homes.

Key Takeaways

  • £15 million investment from BGF to boost Cruden’s development.
  • Accelerated delivery of a 4,500-home pipeline across Scotland.
  • Support for hundreds of jobs and regional economies.
  • Focus on high-quality, energy-efficient, and net-zero-ready homes.
  • Leadership transition with Fraser Lynes stepping up as CEO.

Accelerating Development and Expansion

Cruden, a housebuilder with over 82 years of history and responsible for delivering more than 135,000 homes, is poised for significant growth. The £15 million investment from BGF will be instrumental in fast-tracking its development programme. This includes bringing forward key sites from its existing landbank and initiating new projects, thereby expanding its reach into new geographic areas beyond Scotland’s central belt.

Supporting Scotland’s Housing Needs

The investment is expected to have a ripple effect across Scotland’s economy. It is anticipated to support hundreds of jobs within the Scottish supply chains and stimulate regional economies. Furthermore, it will contribute to meeting the growing demand for high-quality, energy-efficient homes. A notable project benefiting from this expansion is Cruden’s commitment to delivering 847 net-zero-ready homes at Granton Waterfront, a major coastal regeneration scheme in Edinburgh, with construction slated to begin in 2026.

Leadership Evolution and Strategic Vision

Alongside the financial boost, the investment facilitates a planned evolution in Cruden’s leadership structure. Fraser Lynes will assume the role of CEO, working closely with CFO Euan Haggerty. Executive Chairman Kevin Reid and Group MD Steven Simpson will transition to non-executive director roles. John Cassie, formerly regional chair of Persimmon Plc, will join the Cruden board as non-executive chair, bringing valuable industry experience.

Richard Pugh, investor at BGF, expressed confidence in Cruden’s potential, highlighting its “enviable track record, strong leadership team and award-winning approach.” He stated BGF’s eagerness to support Cruden’s growth strategy and its role in delivering much-needed homes in Scotland.

Kevin Reid, outgoing executive chairman, remarked that the investment provides the “firepower to deliver the next generation of neighbourhoods.” CEO Fraser Lynes added that BGF’s backing is a “powerful endorsement” of their strategy, enabling faster progress on their 4,500-home pipeline and expansion plans.

This investment aligns with BGF’s broader commitment to Scottish businesses, forming part of its £200 million pledge to invest in high-potential companies across Scotland over the next five years.

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Chancellor Reeves announces plan for housebuilding planners.

Chancellor Rachel Reeves Unveils Ambitious Plan to Hire Hundreds of Planners to Accelerate Housebuilding

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Chancellor Rachel Reeves is set to announce a significant investment aimed at bolstering the UK’s planning departments. The initiative will see the recruitment of hundreds of new planners, a move designed to streamline the planning process and significantly boost the pace of housebuilding across the country. This strategic hiring spree is a key component of the government’s broader agenda to “get Britain building.”

Key Takeaways

  • An estimated £48 million will be allocated to recruit approximately 350 new planning professionals.
  • The initiative aims to address delays and inefficiencies in the planning system.
  • New routes into the profession, including graduate schemes and apprenticeships, will be established.

Boosting Planning Capacity

The government plans to inject substantial funding, reportedly around £48 million, to hire an estimated 350 new planners. This investment, which averages out to approximately £137,000 per individual, is intended to directly tackle the perceived “dither and delay” that has hampered development in the past. A Treasury source indicated that the goal is to “turbocharge the number of planners” to meet ambitious housing targets and expedite decisions on major infrastructure projects.

New Routes into Planning

To ensure a sustainable increase in planning expertise, the initiative will focus on creating new pathways into the profession. This includes a strong emphasis on recruiting graduate planners and launching a dedicated Planning Careers Hub. This hub will provide comprehensive training programmes designed not only to equip new entrants but also to improve retention rates within planning departments. The aim is to open up new and accessible routes for individuals to enter and progress within the planning sector, thereby strengthening local authority planning teams.

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New homes being built in Dalmarnock, Glasgow.

Dalmarnock Regeneration Boosted by 173 New Homes

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Construction has officially begun on a significant new housing development in Glasgow’s Dalmarnock area. The project, located on French Street, will deliver 173 much-needed homes, comprising a mix of properties for both rent and private sale. This initiative is set to provide a substantial boost to the city’s housing supply and further enhance the ongoing regeneration efforts in the East End.

Key Takeaways

  • 173 new homes are being built in Dalmarnock, Glasgow.
  • The development includes affordable homes for social rent and private sale properties.
  • It aims to address Glasgow’s housing emergency and support community regeneration.
  • The project is a collaboration between Thenue Housing, CCG (Scotland), and Clyde Gateway.
  • Completion is anticipated in 2027.

A New Chapter for Dalmarnock

The French Street development marks a significant milestone in the regeneration of the Clyde Gateway area. This project is a collaborative effort between Thenue Housing, CCG (Scotland), and Clyde Gateway, with support from Glasgow City Council. The development aims to create “sustainable, inclusive communities” and will feature a mix of apartments and family housing, with options ranging from one to four bedrooms.

Councillor Ruairi Kelly, convener for housing and development at Glasgow City Council, expressed his enthusiasm, stating, “It is great to see work beginning on this major housing development in Dalmarnock which will bring so many high-quality new homes for sale and rent to an area which has benefited so much from regeneration in recent years.”

Addressing Housing Needs

The new homes are designed to meet diverse needs, including wheelchair-adapted properties within the affordable housing component, adhering to the “Housing for Varying Needs” standards. The entire development will be connected to a district heating system, promoting enhanced energy performance. This project is seen as a crucial step in tackling Glasgow’s “housing emergency.”

Martin McKay, chief executive of Clyde Gateway, highlighted the importance of this development: “A key pillar of the regeneration of the Clyde Gateway area is building quality, affordable and private homes, helping it to be a great place to live and work and be able to enjoy the greenspaces and amenities it now has to offer.”

Community and Economic Benefits

Beyond providing much-needed housing, the 18-month construction period is expected to bring significant community benefits. These include local job creation, training opportunities, and investment initiatives. CCG (Scotland), an east-end based company, expressed pride in contributing to the community where many of its staff reside.

Calum Murray, director of CCG (Scotland), commented, “French Street continues that legacy— it is a landmark project will offer much-needed housing choice and affordability while creating a place where people of all ages and backgrounds can thrive.”

The French Street development is the largest housing project approved by Glasgow City Council for the 2024/25 financial year and is scheduled for completion in 2027, promising to reshape the Dalmarnock landscape and provide a vibrant new neighbourhood.

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Barclays Canary Wharf headquarters undergoing major renovation.

Structure Tone Secures £150 Million Contract for Barclays’ Canary Wharf Headquarters Revamp

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Structure Tone has been awarded a significant £150 million contract to undertake the next phase of renovations at Barclays’ global headquarters in Canary Wharf. This major deal follows previous work on the 32-storey One Churchill Place building, which saw ISG complete a £100 million project focused on revamping trading floors.

Key Takeaways

  • Structure Tone has secured a £150 million contract for the next phase of work at Barclays’ Canary Wharf HQ.
  • The deal signifies continued investment by Barclays in its One Churchill Place base.
  • The project involves further revamping of the 32-storey building.

Project Details

The substantial contract, estimated to be worth around £150 million, sees Structure Tone triumph over competitors Mace and Overbury for this crucial phase of the revamp. The project will focus on further enhancements to the 32-storey One Churchill Place, a building that has served as Barclays’ global headquarters since 2005. The tower, originally designed by HOK and completed by Canary Wharf Contractors in 2004, is set to undergo significant upgrades.

Barclays’ Commitment to Canary Wharf

This new contract underscores Barclays’ ongoing commitment to its Canary Wharf presence. Earlier this year, the bank extended its lease for its 1 million sq ft of space at One Churchill Place by an additional five years, securing its occupancy until 2039. This decision comes at a time when the future of large corporate headquarters in Canary Wharf has been a subject of discussion, particularly following HSBC’s announcement to relocate from its own Canary Wharf base to a smaller site in the City of London.

Wider Market Context

The financial sector’s real estate strategies are under scrutiny, with other major banks re-evaluating their office footprints. While Barclays solidifies its position, the departure of HSBC from its 8 Canada Square building, with plans to move by 2027, highlights a shifting trend. The redevelopment of the HSBC tower is already underway, with KPF leading the architectural reimagining of the 45-storey structure.

Meanwhile, Structure Tone remains active in other high-profile London projects. The firm is reportedly one of three contenders bidding for a £200 million job to overhaul the London Stock Exchange’s offices in Paternoster Square. Additionally, Structure Tone recently secured a £100 million contract for new offices for the law firm Hogan Lovells in Holborn Viaduct.

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