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Building a Better Future
Photo provided by Homewards, with credit to Wattie Cheung/ Kensington Palace
“A home needs more than four walls. Through collaboration, Homewards is making furniture and essential items accessible for people moving out of homelessness.”
“Great places are about more than buildings and infrastructure. They’re communities where people can put down roots, build relationships and thrive.”
Rhona Brown, Strategic Homes Lead, Homewards
Paul Morrish, Chief Executive, LandAid
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MEDIAPLANET
09
Creating the right conditions for UK real estate investment
Planning infrastructure for places, people and regional growth
Certainty, stability and predictability are what investors look for when making capital investment into new or regenerated places.
Becky Wood CEO, National Infrastructure and Service Transformation Authority
K
ey to achieving this certainty, stability and predictability is a realistic council leader or Mayor who shares the objectives of the investor and who can ensure that the other parts of the local council or relevant authority will work towards them.
from pension funds and other institutional capital through the Mansion House accords. However, this is put at risk if investors perceive uncertainty. Policy surprises like the ban on upward only rent reviews last year or speculation over rent controls in April spook markets, costing jobs and investment. Making investment viable Hopefully, our new Prime Minister Underpinning it all is viability; recognises this from his time there has to be a return on as Mayor of Manchester, where investment. That might require he encouraged regeneration of gap funding from the public entire neighbourhoods through sector, even if a pragmatic only in the form and welcoming of underwriting approach to real rather than estate investment. Policy surprises outright loans or Ultimately, like the ban on grants. It might and what Real upward only need to be the Estate:UK aims to assurance that the do, capital needs rent reviews last local community – to be matched year spook markets expressed through with opportunity. governance We represent structures – will the funds and stick with the other long-term project through electoral cycles, investors in buildings and places which tend to be shorter than who can bring the former — and investment cycles. speak to national and regional The challenge is even more Governments who know the acute when thinking about ‘the latter — and through this, seek places that need it the most,’ where to deliver the new homes, better viability is most challenged. The places and more sustainable built return might take longer or be environment we all need. more uncertain (and therefore more expensive) and might require more partners. Matching capital to opportunity Last year, overseas investors invested £57 billion into UK real estate. Real Estate:UK believes that much more could come in from overseas, as well as domestically
@ Mediaplanet UK & IE
Dominic Curran Head of Communications, Real Estate: UK
@MediaplanetUKIE
Infrastructure delivers greatest value when planned as an integrated system rather than standalone projects, ensuring transport, energy, housing and public services work together to support communities across the country.
A
place-based approach is shaping how Government thinks about infrastructure delivery. It shows where investment in economic and social infrastructure can unlock the greatest benefits and how decisions in one sector can reinforce outcomes in another. Long-term infrastructure strategy The 10-Year Infrastructure Strategy embeds this principle at the heart of Government’s approach. By bringing economic infrastructure, social infrastructure and housing into a single framework, it recognises that successful places depend on more than roads, railways, water and power networks. Schools, health centres, courts and other services are equally essential to effective place-making. Backed by a commitment to invest at least £725 billion in infrastructure over the next decade, and supported by NISTA’s Infrastructure Pipeline, the strategy gives investors, industry and regional leaders greater confidence to plan, recruit and invest for the long term. Turning strategy into delivery NISTA’s role is to turn that ambition into better decisions and stronger outcomes, using data to understand infrastructure needs in the context of wider priorities, including housing, industrial growth and public service delivery. To support this, we are using a new tool that combines data, modelling and AI to assess infrastructure needs against housing, industrial growth and land-use scenarios. It will help prioritise investment across regions. Alongside Government departments, we are piloting the approach with mayoral authorities to test growth opportunities against infrastructure capacity and identify where investment can deliver most value. Collaborative spatial planning Spatial planning is fundamentally about creating shared understanding of how places function, then directing public and private investment where it can deliver greatest long-term benefit. It also means creating shared action through stronger collaboration between Government, industry, regulators and local leaders. No single organisation can create successful places alone. Building prosperous, thriving communities means ensuring the infrastructure we build, maintain and adapt works for everyone. Effective spatial planning enables that, helping align investment with local need and powering this Government’s regional growth ambitions.
Contact information: margot.thomas@mediaplanet.com
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10
BUSINESSANDINDUSTRY.CO.UK
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B Good growth in every corner of our city region Each decision made must pass one test: whether it makes life better for the people living across Greater Manchester. For growth, that means good jobs and prospects in every corner.
y most measures, the last decade has gone well, with the city region economy growing by an average of 3.1% a year since 2015, against a UK average of 1.5% and passing £100 billion for the first time. The work now is to extend that opportunity into every borough and town, and to make growth go even further, ensuring the benefits reach every person. Devolution enables coordinated regional growth People should be able to see it on their own high street, which is why the £20 million Good Growth High Streets Fund opens later this year to local businesses and community groups, backing their own ideas for the places they shop and socialise. Devolution is what makes that possible, and 10 years of practice have shown what it can do for a city region. Greater Manchester led the way on it, and those powers are now being opened up to more of England, because devolving
A good home is the foundation of a good life, and no one should feel priced out of their community. So, we are delivering 50,000 new council, social and affordable homes by 2039, with 10,000 built or on site by May 2028. A new Public Sector Land Bank will ask public bodies to release disused land for building.
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Manchester scales growth sites Atom Valley, the largest of the growth sites, covers 2,500 acres across Bury, Rochdale and Oldham, with Kingsway Business Park and Stakehill already operating inside it, and a Mayoral Development Corporation bringing forward development-ready land, housing and transport. Add Northfold, which reaches into Bolton and Wigan, and the two sites will deliver up to 20,000 jobs, 7,000 homes and a health innovation campus, all served by a Bee Network back in public control. In life sciences, Convatec is putting £200 million into a new research facility at CityLabs, Vortex has moved up from London to work with the NHS on non-invasive cancer diagnosis, and IQVIA has backed the Medicines Evaluation Unit in Wythenshawe.
Devolution is what makes that possible, and 10 years of practice have shown what it can do for a city region
Photo courtesy of Invest Manchester/ Marketing Manchester
A view of St John’s
Photo courtesy of Invest Manchester/ Marketing Manchester
decisions helps regional economies grow and creates the conditions for good growth in every postcode. It means control over transport, skills, housing and regeneration all sits in one place here, meaning infrastructure, homes and training are sequenced around the same site instead of just hoping that they arrive together. Fund delivers homes, jobs and investment The £2 billion Good Growth Fund puts patient capital into projects the market would not take on alone and returns what it earns to the next ones. Its first wave is already backing schemes that will deliver nearly 3,000 homes, over 22,000 jobs and 2 million square feet of employment space.
For anyone weighing up longterm capital, Greater Manchester can offer a pipeline across 10 boroughs rather than one district, a partnership between the public and private sectors, and a fund that de-risks the projects that matter most. It has already brought more than 2,000 foreign-owned businesses here, and Greater Manchester attracts more foreign direct investment than any UK city region outside London. Boosting skills and closing gaps They come for the talent as well. The five universities produce around 36,000 graduates a year, almost half of whom stay after they qualify. For the young people who do not go to university, the Greater Manchester Baccalaureate, designed with our own employers, gives a clear route into skilled work. In 2004, around a quarter of working-age adults in Manchester had no qualifications at all, and after two decades of this work, that figure is now 4.6%. Closing gaps like that one across all 10 boroughs is what good growth means here, and it is how we build a Greater Manchester that works for all of us.
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11
A case for a united built environment industry Three months ago, Andy Burnham became Prime Minister, promising to put the built environment at the heart of Government. As the Budget approaches, we have the rare opportunity to prove it deserves that billing, but only by presenting ourselves as one connected system.
T
hat is the thinking behind this year’s London Real Estate Forum theme: connectivity. It’s about how the built environment connects to the wider economy, including transport, energy, digital infrastructure, skills and public services. It’s also at the centre of NLA’s One Built Environment campaign. Research by NLA, Greater London Authority Economics and the London School of Economics found that the built environment generates 25% of UK GVA, £568 billion, 2.7 times1 the contribution of finance and insurance. It supports one in eight jobs and contributes £168 billion in exports. Yet, it’s rarely treated as a strategic industry. Benefits of greater connectivity A Built Environment Industrial and Investment Strategy could change that by connecting property with the systems that make development possible: transport, energy, water, digital infrastructure, construction, planning, design, finance, skills and public services. For real estate, this is about gaining influence by showing how investment enables outcomes across the wider economy. The Government’s commitment to “devolution, not delegation” is particularly timely, and would give mayors and local authorities greater control over housing, transport, energy, innovation and skills. The aim is the joined-up approach the industry has been asking for. It only works if the built environment is treated as an economic lever. Devolution may help alleviate housing, transport and infrastructure pressure Devolution will only deliver if local leaders have partners who understand how a transport link unlocks a housing site, how an energy connection determines viability and how skills investment determines whether it gets built. An industry organised around connectivity is in a stronger position than sectors making separate cases. London is the place to prove this. Its pressures on housing, transport and infrastructure are acute, while its mayoral and borough structures provide a framework for joined-up delivery. If the capital can demonstrate what a connected approach delivers, it can provide a template for devolution elsewhere.
Nick McKeogh Chief Executive, NLA
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BUSINESSANDINDUSTRY.CO.UK
Why Marylebone is a microcosm of London’s global success Long-term vision and sustained investment turning Harley Street Health District into a global hub for health innovation; a model for how London stays competitive. Harley Street Health District Home to over
2000 Consultants
300+
Julian Best Executive Property Director, The Howard de Walden Estate
c.
40%
of the entire Howard de Walden portfolio
c.
£143m
growth over 12 months
£810m
Providers
estimated contribution to the UK economy last year
Annual market value of
11.2% of the UK’s private healthcare
£1.85bn
market by activity volume
J
ulian Best is Executive Property Director announcement of a £100 million ambulatory of The Howard de Walden Estate, which surgery centre at 1 Harley Street. owns, manages and leases approximately The scale behind that ambition is considerable. 95 acres of Marylebone in central London, According to the District’s first Impact Report, its a highly desirable district running from Maryleprivate healthcare activity is worth an estimated bone Road in the north to Wigmore Street in the £1.85 billion a year, representing 11.2% of the south. Its portfolio of around 850 properties, UK’s total independent healthcare market by roughly a third of which are listed, includes the volume. Howard de Walden invested £42.4 Harley Street Health District and Marylebone million in HealthTech property in the District Village, a vibrant residential area last year alone as it continues featuring a range of boutiques, to foster innovation, research restaurants and schools. and investment. However, the Best says the secret of the Estate early-stage healthtech companies We make long-term is it doesn’t just plan for now, we meet, require more long-term, decisions to encourage it keeps an eye on the horizon. reliable sources of domestic development and “We make long-term decisions funding to stem the flow having to encourage development and to seek funding abroad. investment that investment that ultimately benefit Part of the draw is the calibre ultimately benefit future generations,” he says. of neighbours on the doorstep. future generations The District has attracted five Keeping London competitive of the six major US healthcare and attractive organisations active in London Best believes this far-sighted and Best sees it as one important approach will help London remain a leading hub within a wider “knowledge corridor” running global city. “The Elizabeth Line was born out of from Paddington to King’s Cross. decisions made more than 30 years ago and has changed commuting patterns,” he says. “We need Creating and maintaining a sense of community that sort of long-term, consistent vision to make When London neighbourhoods attract sure London is competitive and attractive well into investment, talent and innovation, they become the future. It’s already a great place, with fantastic real communities, which in turn attracts further education, innovation, research and infrastructure, investment, talent and innovation. It becomes a but it needs to invest more in digital technology virtuous circle. “What makes Marylebone special and ensure its buildings, services and utilities are is that people actually live here,” says Best. “We fit for purpose and resilient.” also have schools and fantastic facilities , and it’s all within walking distance. Part of our long-term A magnet for global health innovation commitment is to ensure it’s a place where people Nowhere is that long-term thinking more visible continue to want to spend time.” than in the Harley Street Health District, which marks its 165th year this year and is now home WRITTEN BY to more than 300 healthcare providers and over Read more at: Tony Greenway 2,500 consultants. Best points to a run of recent milestones as proof the vision is being delivered: Paid for by the opening of Hale House as a dedicated The Howard home for HealthTech innovators, the arrival of de Walden Estate global providers such as Cedars-Sinai, and the
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