Bywater Properties and Sumitomo Forestry announce billion-pound mass timber venture

Sumitomo Forestry provides value for the global environment by maximising the value of forests and wood to realise decarbonisation and a circular bioeconomy. The company recorded US$800m in net profit across is global operations in FY22 and built more than 25,000 homes around the world.  

The new venture aims to achieve over £1bn in assets across the UK and Europe; the new entity will be a pioneering developer with a strong focus on decarbonisation and mass timber real estate projects. 

Construction is already under way on both companies’ first project – Paradise in the London Borough of Lambeth – a new six-storey office building with a mass timber structure that locks away approximately 60 years of tenant operating emissions. Completion is expected in autumn 2024.

The project is also focused on minimising the environmental impact of the building, with lifecycle embodied carbon – the carbon emissions resulting from the materials, construction, and the use of a building over its entire life, including its demolition and disposal – of 491kg CO2e/m2 compared to the RIBA 2030 target of 750kg CO2e/m2.

Building and refurbishing with sustainable timber is critical in reducing the real estate sector’s reliance on fossil fuels. The industry currently contributes 40% of global greenhouse gas (GHG) emissions, meaning more sustainable methods of construction are desperately needed if European governments are to meet their net zero ambitions. 

“Sumitomo Forestry has a global network of hugely successful residential and commercial development companies – with Bywater ready set to help the business grow its European operations,” said Richard Walker, chairman and founder of Bywater Properties, and executive chairman of the Iceland supermarket chain.

“This new venture is more than just a business opportunity, however. It’s also a meeting of minds. Both companies share a philosophy based on the principles of sustainability, with a long-term ambition to decarbonise the real estate industry through the adoption of mass timber projects.”

“Bywater’s expertise and robust business relationships in both the UK and throughout Europe was a critical factor in this joint venture coming to fruition,” added Atsushi Kawamura, director and senior managing executive officer at Sumitomo Forestry.

“Paradise is just the beginning of what we anticipate being a long and successful relationship with Bywater. As a combined entity, we can revolutionise how real-estate projects are managed across Europe, establishing timber frames refurbishment and construction as a standard.”