MORNING NEWS: Levy hikes threaten Oxfordshire ambitions

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the day ahead. A second council in Oxfordshire has announced plans to increase community infrastructure levy costs in a move that developers warn is threatening development. Last month Oxford City Council proposed a five-fold increase on CIL payments on R&D development across the city, and now Cherwell District Council is seeking to introduce a CIL on industrial development. Developers are warning the cost of CIL needs to be measured, or it will hamper development and growth in a region that has highlighted as a potential super-power for the UK. Simon Parsons, director at Albion Land, told EG: “We support in the principle that new industrial and logistics development should help fund necessary infrastructure improvements – that’s crucial to achieve sustainable economic growth. But the essential thing is to get the right balance and to ensure high-quality commercial development remains viable. This is critical if the district’s economy is going to continue to grow for the benefit of the community as a whole.” Elsewhere, the ever acquisitive Realty Income is buying again, with the US investor tipped to be front runner for the Braintree Retail & Leisure Park in Essex. The firm, which has invested a whopping $11bn (£8.5bn) across Western Europe since its debut in 2019, has pushed British Land, Landsec and Frasers Group out of the running. Good job, perhaps, that it isn’t interested in shopping centres or the battle for Nuveen’s St James Quarter in Edinburgh could get very heated. Who will win that race will soon be revealed, although the safe money is said to be on Mark Allan’s Landsec. Mixed fortunes among the Canadian pension giants, which reported their half year figures overnight. Real estate performed for Ontario Teachers’ Pension Plan, in AUM up by 6.4% to just over C$30bn (£17bn), but lagged for CDPQ, with returns down by 3.6%. CDPQ said its investments in logistics weren’t quite strong enough to outweigh the poor performance in offices. And talking of performance, student accommodation developer Empiric this morning reported an uplift in revenues and rental growth and a strategic shift in its priorities to growth. Chief executive Duncan Garrood said the business was in “active discussions” on new properties and that the business would prioritise operational opportunities in top-tier cities where it could unlock value through refurbishment and operational efficiencies. And keep an eye out later today to see if NewRiver REIT officially makes a bid for Capital & Regional. The firm announced it was looking at the shopping centre owner in April and has a deadline (already extended a few times) of today to make a firm offer. All of the news from EG, plus a selection of headlines from the nationals: Empiric sees ‘compelling opportunities for growth’ as rents riseL&G signs £40m Coventry resi deal with VistryEditor’s Comment: Does real estate needs its own James Timpson?Realty Income leads battle for Essex retail parkCIL rises put Oxfordshire development ambitions at riskMixed real estate fortunes for Canadian pension giantsMileway leases last remaining facility at Summit Centre HeathrowCheyne and Fusion acquire second Brent Cross Town site for £275m PBSA schemeBusiness HE provider takes 1 Brindleyplace as new campus New Harrogate neighbourhood given the go-aheadWestminster approves next phase of £350m Ebury Bridge schemeEvri expands logistics network in Sheffield and BristolBritish Land bags UK retail warehouse portfolio for £45mChancerygate submits plan for Suffolk industrial developmentBidwells hires for PwC lead for AI innovationNew head of investment lands at MadisonCurtain galls on £1.7m theatre without permission (£)AstraZeneca’s £450m vaccine plant at risk (£)UK rental price growth close to record high after decline stalls (£)