WINVIC STARTS GROUNDWORKS FOR PBSA PROJECT IN BRISTOL

Winvic Construction Ltd, a leading main contractor that specialises in the design and delivery of multi-sector construction and civil engineering projects, is awarded a purpose-built student accommodation (PBSA) scheme by Madison Cairn. After successfully completing the initial enabling works and piling operations, Winvic begins the groundworks, which comprise under slab drainage and ducts works and installation of concrete pile caps, beams, ring beams and the ground floor slab.

The concrete frame programme – which will climb to 12 storeys – begins in April 2023. The Bristol Byzantine style has inspired the external aesthetic of the scheme along with the prevailing use of brick and stone and metal cladding in the area. Red and black bricks will be used on the façade alongside a contrast of fluted and flat glass reinforced concrete (GRC) and metalwork cladding.  

“This will be one of Bristol’s most sustainable and high-quality student accommodation schemes, which has been designed by working in conjunction with Bristol City Council and the local community. This is the second project that we are working on with Winvic Construction, and we are excited to build upon our relationship in a partnership approach.”  Aneil Handa, Principle, Madison Cairn

The PBSA development will deliver 367 studios and shared rooms and is part of the second phase of Redcliff Quarter, located on the corner of St Thomas Street and Cross Street in Bristol, which is a ten-minute walk from the University of Bristol’s main campus. 

When complete, the development will include three seven-bed cluster rooms, 16 six-bed cluster rooms, 11 threedios, 11 twodios, 176 studios and 19 accessible rooms. On the ground floor, there will be 4,600 sq ft of flexible communal spaces, ancillary accommodation and storage for 184 cycles.

The building form is predominantly an L shape to accommodate a 2,700 sq ft, landscaped first floor communal roof garden terrace to the rear. The roof at level 12 has been designed as a blue roof to provide the building with the function of water attenuation. Handover is scheduled for Q1 2025. 

The PBSA development completes the wider urban block, which it has been designed to complement, and adjoins a new Build to Rent project on two elevations. The construction works will be programmed to coordinate with the Build to Rent scheme, which was acquired by Grainger in 2022 in partnership with Madison Cairn, and is due to complete in 2025. Several underground services will be installed and diverted as part of the project, and the PBSA will be connected to the Bristol Heating Network.

“We’re delighted Madison Cairn has selected us to partner on this scheme. This repeat business is a testament to strong collaboration and the partnership that we have built with this client. Both projects come with their own challenges and deadlines, with this site being particularly constrained on logistics – due to the interface of the adjoining buildings – and the limit space on this city centre location. Nevertheless, the Winvic team appointed to the Redcliff Quarter student accommodation project have a wealth of experience and we are looking forward to safe delivery through to 2025.” Mark Jones, Director of Multi-room, Winvic

HOLIDAY INN SUNDERLAND OFFICIALLY OPENS AS PART OF SUNDERLAND’S HUGE REGENERATION PROJECT

The much-anticipated Holiday Inn, located in Keel Square, Sunderland City Centre will officially open its doors on Wednesday 14th December, creating 50 jobs.

Officially unveiled by the Mayor of Sunderland, Councillor Alison Smith, the hotel is part of Riverside Sunderland, an ambitious development aiming to elevate the city centre with a mixed-use urban quarter.

The hotel, developed and operated by Madison Cairn, boasts a unique and multi-faceted offering, appealing to both leisure and business guests by providing 120 stylish air-conditioned bedrooms, comfortable Restful Nights beds, a fully equipped gym, as well as a chic open lobby that is available to the local community as well as guests.

The open lobby space offers all-day dining, high-speed Wi-Fi and proudly serves Starbucks, making it an ideal space for local people to work and host business meetings or interviews. Adjacent to Sunderland City Hall and just a short walk to Bridges Shopping Centre, the hotel is also perfectly placed for those visiting the vibrant, up and coming city for overnight breaks.

The four-storey building is conveniently located close to several public car parks and just a three minutes’ walk to local public transport, making the hotel accessible from Newcastle, North and South Shields. Sunderland’s popular twin sandy beaches Roker and Seaburn can be found just two miles from the hotel.

Rob Dixon, general manager at Holiday Inn Sunderland, said: “The opening of Holiday Inn Sunderland plays a major role in the development and regeneration of Riverside Sunderland, establishing it as a prime destination for both business and leisure. The hotel’s offering is strong and varied, catering for the local community as well as those visiting from outside of the city, with a modern but relaxed feel.

“We’re thrilled to see the plans become a reality after lots of work and planning and we are confident that we can provide top quality facilities to all guests, from overnight visitors to corporate groups.”

Councillor Alison Smith, Mayor of Sunderland, said: “It’s a pleasure to officially open the Holiday Inn at Keel Square, which has already made such a positive difference to the city centre skyline and – I have no doubt – will support the revival of Riverside Sunderland as the area draws in more visitors for business or pleasure.

“The transformation of Sunderland city centre over the last few years has been phenomenal. With leisure venues like the Auditorium complete, Culture House to come, and lots of bars, restaurants and eateries on their way, this hotel is right at the heart of this regenerated quarter, ready to warmly welcome people to our fast-changing city.”

Sharon Appleby, chief executive at the Sunderland Business Improvement District (BID), said: “Holiday Inn is another brilliant addition to the ever-changing city centre offering.  Hotels like this are crucial for Sunderland as it allows more people to come and stay whether that’s for business or for a social trip.  It’s a great location in the heart of Riverside Sunderland and I’m very much looking forward to working with Rob and his team.”

The hotel has also partnered with Sunderland City Runs, launched in 2010, the event attracts thousands of runners and spectators every year, from around the region and further afield. Organisers of the event will be working closely with Holiday Inn Sunderland to promote the annual festival of running, and the city centre routes. The partnership with will include special room rates for a limited number of guests who book rooms for the weekend of the runs, with the option of extending the stay over four nights from 5 May, including the additional Bank Holiday on 8 May for the coronation of King Charles III.

British Athlete, Steve Cram, comments: “Holiday Inn is an excellent addition to the city centre and we’re delighted to welcome the hotel as a partner of the Sunderland City Runs, which take place on the doorstep. The area around Keel Square has emerged as a vibrant hub for Sunderland. It’s the ideal base for our event and Holiday Inn adds another dimension to that.

“In organising the races over the years, we’ve come up with a lot of great ideas for urban running routes. I was pleased to share a few of those with Holiday Inn Sunderland to encourage guests to try a bit of active exploration of the city. Hopefully, some of them will be inspired to make a return visit and join us for the Sunderland City Runs on 7 May next year.”

 The venue is now open for bookings and enquiries, which can be made here: https://www.ihg.com/holidayinn/destinations/gb/en/united-kingdom/sunderland-hotels

UBS AM’S UK CORE REAL ESTATE STRATEGY INCREASES STUDENT HOUSING EXPOSURE

UBS Asset Management’s Real Estate & Private Markets business (REPM) is forward funding a 367-bed, purpose-built student accommodation (PBSA) as part of its UK core real estate investment strategy.

The manager said it has committed £64.7m (€74m) to fund the project in Redcliff Quarter, Bristol being developed by Madison Cairn, with Winvic Construction as principal contractor.

UBS AM REPM said the deal marks the sixth PBSA investment by the firm as part of the UK core real estate investment strategy.

Oliver Abram, portfolio manager, UBS Asset Management, said: “A key focus area for our UK core real estate strategy is to continue to increase our exposure to the PBSA sector, targeting leading Russell group university cities across the UK.”

”Bristol is one of the strongest student accommodation markets in the UK, with positive supply and demand dynamics and a limited development pipeline. This acquisition complements existing holdings within the portfolio, which have achieved consistently high occupancy levels, delivering strong income returns for the fund.”

Aneil Handa, director at Madison Cairn, said: “Together with UBS Asset Management, we are delighted to be supporting Bristol’s universities in delivering this much-needed high-quality and sustainable accommodation.”

”This will be a market-leading product, underpinning our ability to unlock potential, enabling development of such an important and high-profile site, in one of the UK’s most attractive cities.”

EAST COAST CONCEPTS ACQUIRED BY NAVEEN HANDA OF THE CAIRN GROUP

An investment group led by Naveen Handa of leisure company The Cairn Group has acquired restaurant and bar group East Coast Concepts as part of a strategic acquisition to enhance their premium restaurant and bar offering.

The Manchester-based restaurant and bar group, which operates the Neighbourhood and Victors brands, has five sites across the UK, including Hale, Alderley Edge, Liverpool, Leeds and Oxford.

The company has been working with specialist business advisory firm FRP in recent months to help navigate through the impact of the pandemic and secure a long-term future for the group. Ben Woolrych and Anthony Collier of FRP were appointed as Joint Administrators of Victors Restaurants Ltd and East Coast Concepts Ltd on 1st September 2020. On appointment the Joint Administrators completed the pre-pack sale of the business and assets to the investment group.

The deal protects more than 250 jobs and all existing Neighbourhood and Victors sites will continue trading as normal.

Handa also recently led a consortium to become the new joint venture partners for London and UK Franchisees of Vapiano Restaurants.

John Hammond, Managing Director at East Coast Concepts, said:

“Since opening our doors in 2012, every member of the business has worked hard to establish strong brands and create an experience that our guests love. We have significantly exceeded sales and profit targets since reopening our doors in July following lockdown whilst delivering an industry leading net promoter score, with 25% year-on-year growth in the final week in August including the bank holiday weekend.”

“This acquisition marks a significant milestone for the business and will enable us to embark on the next phase of growth, with an investor which really sees the value in the brands we have created. I’d like to thank everyone across the business and other key stakeholders for their ongoing support.”

Naveen Handa, Director at The Cairn Group, added:

“We are delighted to have been able to secure the long-term future of East Coast Concepts, and its much-loved Neighbourhood and Victors brands, as well as the jobs of over 250 staff throughout the sites and head office. Moving forward we see great potential for premium, experiential and well differentiated brands and will be focused on supporting the existing management team, whilst investing in the brands and it’s people to help realise the exciting growth potential.”

Ben Woolrych from FRP, said

“We have been working with the East Coast Concepts team for several months, during incredibly challenging times for the hospitality sector as a whole. We’re therefore delighted to have been able to secure a deal that not only secures the future of the group, but most importantly protects all existing jobs. Naveen and the team bring huge experience which we know will help drive the business towards its next stage of growth and we wish them all the best.”

VAPIANO’S UK RESTAURANTS ACQUIRED BY INVESTOR GROUP SAFEGUARDING 209 JOBS

Pizza and pasta group Vapiano’s UK restaurants have been bought by a group of investors led by former Vapiano director Mario Bauer in partnership with the Savour Group in a deal that safeguards 209 jobs.

Last month Bauer acquired the global Vapiano brand and franchising rights along with a number of restaurants in Germany, France, Luxembourg and Australia, before taking on the UK Vapiano business, which went into receivership in April. He is now co-founder and CEO of the newly-formed Vapiano holding company, Love and Food Restaurant Holding.

The Vapiano investors have set up a partnership with Savour Group, a company founded by three family offices, the Dominvs Group, a privately owned group of companies focused on the hospitality, residential and commercial real estate sectors in the UK, Naveen Handa and Krit Srichawla.

Together, the joint venture will run Vapiano within the M25 and has acquired the Vapiano restaurants on Great Portland Street, Bankside and Tower Bridge. The Savour Group will also enter a franchise agreement with Vapiano to operate its restaurants in Manchester and Edinburgh and says it is committed to opening more Vapiano restaurants across the UK.

“This is an exciting investment in the hospitality industry’s future,” says Husnell Ahluwalia, Director of Dominvs Group.

“As a company, we are always on the lookout for great opportunities led by quality teams. This is a huge opportunity to look ahead at rebuilding an industry which has faced very challenging times recently.”

“We are delighted we have been able to safeguard the future of Vapiano UK and many of its employees. Vapiano is a strong brand and the new owners intend to continue to invest in this brand and are committed to its growth here in the UK”, says Naveen Handa of the Savour Group.

The buyers were advised by MJ Hudson, Clyde & Co, Mincoffs, and David Harper at Harper Dennis Hobbs.

“It was of the utmost importance to us to preserve a strong presence in London, a city that is a global showroom for brands such as Vapiano,” says Bauer.

“Together with the Ahluwalia family we look forward to growing and sustainably expanding our restaurants in the United Kingdom.”

Alongside Bauer, other co-investors of Love & Food Restaurant Holding include Harry McGovern, co-founder and former long-term CEO of the AmRest group of restaurants; Sinclair Beecham, co-founder of Pret a Manger, Vincent van der Valk, Dutch hotelier and exclusive Vapiano area developer for the Netherlands and Belgium; and Gregor Gerlach, Vapiano co-founder and owner of the Seaside hotel group.

Vapiano was founded in Hamburg in 2002. At its peak Vapiano ran more than 230 part-owned and partly-franchised restaurants in 30 countries, and currently operates 82 restaurants in Germany.

PGIM REAL ESTATE ENTERS NEW JOINT VENTURE IN UK HOTELS

[LONDON], May 31, 2022 – PGIM Real Estate, on behalf of a value-add investment strategy, has entered into a joint venture with Madison Cairn, a newly formed division of Cairn Group, to target the recovering UK hotel sector. PGIM Real Estate is the US$209.3 billion real estate business of PGIM. Cairn is an integrated investor, developer and operator in UK leisure, with a portfolio of 33 hotels and a 50-year track record in the industry.

The joint venture will seek to acquire, develop and reposition hotels in the UK with a focus on domestic leisure demand, which has shown strong signs of post-pandemic recovery. In particular, the venture considers that key ‘staycation’ destinations and selected other UK locations are likely to outperform in the current geopolitical environment.

The team has already secured a strong pipeline of activity, with the joint venture’s first investment in Brighton, one of the UK’s most attractive hotel markets. The property, which is close to the train station, is expected to be open for trading later this year.

Commenting on the investment and venture, Charles Crowe, Managing Director and Head of UK Transactions at PGIM Real Estate, said: “At PGIM Real Estate, we’ve been investing in Brighton hotels since 2013 and have tracked this opportunity for some time. We are delighted to be working with the Madison Cairn team, who are one of the most experienced operators in the sector. We share conviction that the prospects for selected good-value domestic leisure markets have strengthened in light of recent events, and we look forward to expanding our venture soon in locations such as these.”

Aneil Handa, Director of Madison Cairn, commented: “We are thrilled to announce this strategic joint venture with PGIM Real Estate. We are privileged to be working with one of the world’s largest real estate managers, in a partnership where our skills complement each other’s perfectly and position us well for our next chapter of growth in the sector. The acquisition of our first hotel together is a key milestone, with the joint venture having appetite for further expansion.”

About PGIM Real Estate

As one of the largest real estate managers in the world with US$209.3 billion in gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the US$1.5 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).

PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing2, and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit pgimrealestate.com.

1 As of December 31, 2022, AUM reflected as gross. Net AUM is $137.9B and AUA is $45.9B.
2 Includes legacy lending through PGIM’s parent company, Prudential Financial, Inc

About PGIM

PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world3 with more than $1.4 trillion in assets under management as of March. 31, 2022. With offices in 17 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information, please visit news.prudential.com.

3 Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 477 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on May 31, 2021. This ranking represents global assets under management by PFI as of Dec. 31, 2020.

About Madison Cairn

The Group Develops, Owns and Operates a diverse portfolio of Real Estate across the UK including 33 branded independent hotels, 9 care homes and various residential projects. We are proud to work in partnership with eight of the most established global hotel brands including DoubleTree by Hilton, Marriott International, Mercure and IHG. Our own brand, The Cairn Collection, includes a selection of ten signature hotels in iconic locations across the UK. Our platform has been developed to quickly integrate and develop new properties and concepts using our existing structure. As experienced hoteliers we seek long term value by sustaining our customers via delivering worthwhile experiences. One size does not fit – our strength is in our diversity.

Madison Cairn has been created specifically for the acquisition, development, and management of high quality real estate across the UK, in conjunction with its investment partners.

GRAINGER SNAPS UP BTR SCHEME FOR £128M

Listed property giant Grainger has agreed to acquire the build-to-rent (BTR) element of a major mixed-use scheme in Bristol for £128m.

The development, which forms part of the second and final phase of the wider Redcliff Quarter, comprises 374 private rental homes, alongside 94 affordable homes and six commercial units.

Newcastle-headquartered Grainger has agreed to acquire the scheme from Redcliff MCC, backed by ICG Real Estate in partnership with Madison Cairn.

Winvic Construction, which built Grainger’s Brook Place development in Sheffield, has been appointed as contractor for the scheme.

The development includes a total of 5,900 sq ft of internal residential amenity space, about 21,200 sq ft of external amenity space, 8,500 sq ft of commercial space and 31 car parking spaces.

Construction of the homes is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025.

It is expected that the scheme, including the commercial element, will generate a gross yield cost of about six per cent once fully let and stabilised.

The deal builds on Grainger’s existing Bristol portfolio, which includes Hawkins & George, comprising 194 build-to-rent homes, and Millwrights Place, which will include 231 build-to-rent homes when complete in early 2024.

Helen Gordon, chief executive of Grainger, said: “We are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm.”

Aneil Handa, managing director of Madison Cairn, added: “There is a serious under-supply of homes in Bristol. By working in partnership with ICG Real Estate and Grainger we have been able to secure planning permission for a revised Redcliff Quarter scheme that saw a substantial increase in the number of homes delivered on the site, compared with the previous consent.

“Importantly, the new scheme now has 94 affordable homes, which will make a real contribution to helping address Bristol’s housing need.”

“Redcliff Quarter will be a really vibrant place in the heart of this fantastic city, and we are very glad to have played our part in making this happen.”

Paul Hawkey, associate in Knight Frank’s residential capital markets team, said: “The sale of Redcliff Quarter is a landmark deal for the city of Bristol – rarely do opportunities such as these become available on the open market.

“The transaction demonstrates the high level of demand for Build to Rent assets and the requirements for stock in a city which will always be challenged supply wise due to its heritage being so heavily safeguarded. Appetite for BTR developments in Bristol doesn’t seem to be cooling.”