McAleer & Rushe appointed on £82m significant Paddington Hotel development

Northern Ireland based developer and contractor McAleer & Rushe has announced that construction has commenced on a new 620 room hotel and hybrid aparthotel development in Paddington, London with a contract value worth c.£82 million.

Led by developer Concierge 3, a consortium of BSW Land & Property, Staycity and The Pickstock Group, the scheme is the final stage of the Paddington Basin Masterplan and part of a wider investment which has seen new offices, shops, homes and leisure facilities being built over the last number of years revitalising this unique location. The project will create both short- and long-term jobs and with the upcoming launch of the Elizabeth Line will further support the economic regeneration as Paddington continues to grow as a hub for business users as well as leisure visitors to the City.

The new development is expected to open late Summer 2021 and will be constructed on an existing two-storey basement and feature a 373-bed Premier Inn and a 247-bed Staycity aparthotel across 19 floors. The development will also deliver 27,000-square-feet of social and community floorspace.

Commenting on the development Emmett McGinley, Commercial Director, McAleer & Rushe Contracts UK said;

We are looking forward to working as development partners with Concierge 3 and all shareholders in delivering this exciting project within the wider Paddington regeneration masterplan. Our experience in delivering high quality mixed-use buildings will ensure this project is a real success and is currently our second major development in Paddington Basin.

Rabeea Shamsi CEO of BSW Land and Property, spokesperson for Concierge 3 Ltd. Said;

This exciting development will make a major contribution to the regeneration of Paddington and it also bears testament to London’s buoyant and resilient hospitality market. We will be working closely with McAleer & Rushe throughout the project and look forward to seeing this investment come to life on site.

This contract award further solidifies McAleer & Rushe’s position as one of the leading contractors in the Hotel sector which has seen them deliver over 24,000 hotel bedrooms in key cities across the UK and Ireland. The Company has successfully worked with leading developers in recent years to expand their presence in the Residential and Student Accommodation markets.


McAleer & Rushe sells The Brinell Building, Brighton to Orchard Street for £39 million

Developer and contractor McAleer & Rushe has exchanged contracts to sell the Brinell Building in Brighton. The company is selling the speculative office development for £39 million, reflecting a yield of 4.75%, to Orchard Street Investment Management, who has purchased it on behalf of St James’s Place Property Unit Trust.

The Brinell Building is due to complete in Q2 2019 and will comprise 65,253 sq ft of Grade A office accommodation across seven floors. The development is fully pre-let to three tenants, Unity Technologies, Diversified and Dehns, which will all relocate from within Brighton city centre. The Brinell Building achieved record rents for the city with each pre-let transaction, topping out at £32.00 per sq ft, with all of the leases agreed for a minimum of 10 years.

Angus Monteith, Property Development Director at McAleer & Rushe, said:

We are delighted to have exchanged contracts on the Brinell Building, which has proved extremely popular to both occupiers and investors. The fact that it has been entirely pre-let eight months before completion illustrates not only the quality of the property itself but also of the wider Brighton office market, which continues to go from strength to strength.

Tom Chadwick, Partner at Orchard Street, added:

The Brinell Building is a prime addition to the portfolio and upon completion of the development the property will present a fantastic Grade-A office. We are very confident in the prospects for the Brighton office market given the extremely favourably supply demand conditions as illustrated by the 100% pre-let nature of the building.

Knight Frank acted jointly with Steerforth Partners for McAleer & Rushe and JLL acted for Orchard Street Investment Management.


Deloitte Announces Plans For New Head Office In Belfast

Heads of terms signed to become anchor tenant in new Bedford Square Development, which includes the historic Ewart Warehouse
New offices will be able to accommodate more than 1,000 Deloitte people
Deloitte expected to move in to offices in 2021

Deloitte announced today that it has selected Bedford Square as the location of its new head office in Northern Ireland.

Bedford Square Development

Deloitte will become the anchor tenant in McAleer & Rushe’s new development on Bedford Street, which is centred around the regeneration and refurbishment of the historic listed building formerly known as the Ewart Building.

Staff currently based at Deloitte’s other offices in the city will all move to Bedford Square and once completed the Belfast office will be Deloitte’s largest UK office by headcount outside of London.

Bedford Square, an £85m development project, is a 213,000 sq ft office development to be delivered by McAleer & Rushe which will accommodate over 2,000 people upon completion. It includes a modern new office building which will be linked to the refurbished and extended Ewart building on Bedford Street, a prime city centre location which has been unoccupied for some time.

The new Belfast office will accommodate all of Deloitte’s core business areas, including audit, tax and consulting and will also see a new state-of-the-art Deloitte Digital and Greenhouse space created in the Ewart building.

The vacant four-storey sandstone warehouse building was designed by James Hamilton for the Bedford Street Weaving Company and completed in 1870. The new development aims to regenerate the old warehouse building, respecting its heritage and the character of the exterior, while completely redesigning the interior.

Jackie Henry, senior partner at Deloitte in Belfast, said:

After a long selection process we are delighted to be able to announce the choice of Bedford Square as our new home in Belfast.

It is a symbol of Deloitte’s commitment to this city that we have chosen a development which will breathe life back into one of Belfast’s beautiful but neglected heritage buildings, contributing to the regeneration of the city centre while at the same time delivering an exciting and flexible modern work environment for our increasingly diverse and connected workforce.

She added: Deloitte’s operations have been growing rapidly over the past few years, driven by increased requirements for our services across traditional areas such as tax, audit and consulting, but also our wider expertise in exciting new areas such as digital analytics, cloud services, cyber security and robotics.

This new office will bring Deloitte’s expertise in Belfast together under one roof, which will foster even greater collaboration between teams and enable us to create a campus environment that is ideally suited to the agile and augmented jobs of the future.

This significant investment reflects our confidence in Belfast and its high-quality talent base. Based on our current growth projections we expect to have 1,000 staff in Belfast by 2022 and given that growth trajectory we have also made sure we have the option to increase the space to accommodate up to 1,250.

Deloitte will be taking up to 100,000 sq ft of space within the Bedford Square development.

Stephen Surphlis, Property Director in McAleer & Rushe said:

Securing Deloitte’s commitment is a significant milestone in the delivery of this strategic development which will bring economic activity to the heart of the City and surrounding local businesses.

We have already commenced works and upon completion the building will provide much needed grade A office accommodation for international and indigenous companies within Belfast’s prime office district.

The development will include comprehensive refurbishment and restoration of the iconic Ewart Building, returning it to its original splendour and giving Deloitte a high-quality office environment in this unique 150-year-old heritage building.

Deloitte supports our vision for the project and the contribution it will make to the Linen Quarter and the wider city and we are looking forward to working closely with them to develop their new headquarters.

The project will also aim to obtain the BREEAM excellent rating for sustainability.

Deloitte was advised on the transaction by Cushman & Wakefield, Belfast.