Bywater Properties: Billion pound venture to drive adoption of mass timber real estate projects

Bywater Properties and Sumitomo Forestry Co., Ltd., a global, end-to-end timber construction specialist, have signed a definitive agreement to create a new business venture, focussed on driving the adoption of low carbon property development and refurbishment across Europe.   

Sumitomo Forestry provides value for the global environment by maximizing the value of forests and wood to realize decarbonization and a circular bioeconomy. The Company recorded $800 million 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 £1 billion 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 underway 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 c.60 years of tenant operating emissions.  

The project is also focussed 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 percent of global greenhouse gas (GHG) emissions¹, meaning more sustainable methods of construction are desperately needed if European Governments are to meet their net zero ambitions. 

Richard Walker, Chairman and Founder of Bywater Properties, said: “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.  

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.  

Atsushi Kawamura, Director, and Senior Managing Executive Officer at Sumitomo Forestry added: “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.  

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.