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Laing O'Rourke wins 21-31 New Oxford Street development as Mace loses out

Mace has missed out on its second major job in a week after it was pipped to the deal to build the former Royal Mail sorting office in central London, Construction News can reveal.

Brockton Capital and Oxford Properties are the 50:50 joint venture progressing the scheme, which has a development value of around £500m.

Laing O’Rourke is understood to have won the contract, the construction value of which is believed to be in the region of £150m.

The contractor will now redevelop the former Royal Mail depot at 21-31 New Oxford Street, where more than 300,000 sq ft of offices and retail are planned as well as affordable housing and a GP surgery.

For Mace, it means a second major loss in a week, after Construction News revealed last Friday it had lost the Goldman Sachs European headquarters to Brookfield Multiplex.

The Royal Mail sorting office was built in the 1960s but has been derelict for the last 20 years.

AHMM is the architect for the scheme, which received planning permission earlier this year.

Brockton Capital acquired the site from Aviva Investors for around £95m more than two years ago.

Laing O’Rourke’s recent major London wins include the deal to build Berkeley’s £150m 68-storey tower on South Quay Plaza.

Construction News revealed this month that both firms are in talks with Citic Construction over a JV role on phase one of ABP’s £1.7bn Royal Albert Dock development.

Mace last month beat Bouygues to a £150m contract on Knight Dragon’s Greenwich Peninsula scheme.

The pair are also battling for TH Real Estate’s £400m office scheme at 40 Leadenhall Street, nicknamed ‘Gotham City’.

All parties declined to comment.

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