MORNING NEWS: Lenders suffer ‘another difficult’ first half

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of real estate-relevant headlines from the national papers. “Another difficult start to the year for lenders.” That’s how Nicole Lux, senior research fellow at Bayes Business School, describes the findings of the latest half-year CRE Lending Research report from the institution. The report tracked deals from 69 banks, insurance lenders and debt funds. It found that loan volumes were down by 9.8% year-on-year in the 12 months to 30 June, at £16.7bn. “[Lenders] are competing fiercely for financing opportunities due to low transaction volumes in the UK commercial real estate market,” Lux said. “This continues the trend that started with Brexit in January 2020 and the significant impact of events such as the Covid pandemic.” Grosvenor has submitted plans to transform a “tired” 1960s building in Belgravia into a fully retrofitted, highly sustainable new development. Plans for the site at 23 Lower Belgrave Street, SW1, centre on 78,145 sq ft of grade-A office space, a net uplift of 12,278 sq ft on the existing footprint, and around 2,400 sq ft retail or restaurant use. Rachel Dickie, executive director for investment and development at Grosvenor, said the proposals prove that “outdated buildings can be transformed into beautifully designed, progressive workspaces”. Real estate leaders have spotted a glaring omission in government’s industrial strategy: namely, real estate. The 66-page paper launched this week outlines eight sectors the government wants to prime for long-term growth through a 10-year strategy: advanced manufacturing, clean energy, creative industries, defence, digital and technology, financial services, life sciences, and professional and business services. “The fact that we haven’t had any industrial strategy for so long is utterly perverse,” said Jackie Sadek, chair of the UK Innovation Corridor. “I was surprised that housebuilding is not named as one of the eight priority industries, after all the sound and fury over the summer – in fact, property seems to have been bypassed altogether.” There’s also news on Get Living’s new plans at Elephant and Castle; Virgin Media O2’s Manchester prelet; and a strong quarter for office take-up in London’s South Bank. All of the news from EG, plus a selection of headlines from the nationals:Real estate lending falls in ‘another difficult’ first halfGrosvenor greens up ‘tired’ Belgravia office blockPrimary Health Properties eyes investment as ‘market adjusts’Whitbread continues to shake up F&B offeringTower Centre Securities chief says firm has been ‘reset’Get Living tweaks plans to address Elephant and the roomsHammerson kicks off £140m share buybackWeWork launches flex networkBreakthrough onboards agents for VitrumCitra grows rental portfolio with 821-home dealNottingham auctioneer signs new lease on Cattle Market HQTFG London signs for flagship store at Liverpool OneManchester office scheme lands Virgin Media O2 preletTravelodge unpacks bags in UpminsterSGS appoints new asset manager for former intu mallsQuotient Sciences completes sale and leaseback of Alnwick hubUK housebuilding receives £550m impact investment boostProperty leaders spot glaring omission in government’s industrial strategyGovernment commits £68m to build housing on brownfield sitesDockside landlord shuffles line-up to bring in McDonald’sSouth Bank Q3 office take-up is highest of the yearBidwells strengthens investment and property management armCarter Jonas picked for four West Midlands innovation campusesBellway’s revenue hit as housing completions tumbleHomes England sinks £30m into Riverside Sunderland regen schemeCurzon zooms in on Clearbell’s refurbished Kodak buildingGulf investor gets backing to buy Regus’s Fitzrovia officeFusion fuels growth with chief investment officer hireOxford North nabs directors from Harwell and RiverlabsIndurent and PLP team up for Leicestershire shedCBI in talks to sublet parts of London headquartersReeves risks market backlash if debt doesn’t stabilise, IMF says (£)Rightmove: UK landlords are selling up at a record pace (£)Trump hands Scottish golf course £5m loan as losses double (£)Vauxhall owner hauls staff back to the office in effort to reverse sales slump (£)Cryogenic air storage plants ‘can help UK hit net zero’ (£)US start-up plans £300m micro nuclear power plant in South Wales (£)Average UK rent outside London hits record £1,344 a month (£)