This Week's London Deal Sheet
A weekly compilation of Greater London and beyond's biggest leases, sales, financing deals, construction updates and personnel moves.
U.S. private equity firm Taurus Investment Holdings and London-based developer and asset manager W.RE have made their first buy as Taurus recommits to the UK market.
The duo acquired the 22K SF Alexander House at Peterborough Road, in the Parsons Green, London SW6. The building was acquired from Martins Properties with Puma Property Finance providing over £30M for acquisition and future development.
The West London buy is W.RE’s first investment with Taurus and indicates Taurus’ recommitment to the UK, following the launch of its new subsidiary, Taurus RE Investments Ltd (Taurus UK).
The building is expected to offer 45K SF of new office floorspace complete with natural light, air source heat pumps, photovoltaic panels and two roof terraces on the third and fourth floors.
The partnership intends to commence construction in early 2023 with completion scheduled for early 2025.
FINANCE
Silbury Finance has completed two senior development facilities adding up to £96.5M to fund the delivery of residential-for-sale schemes on the Old Kent Road, London SE15, and a second scheme in Reading.
Silbury has provided London property developer Avanton with a £68M stretch facility. It will fund the redevelopment of the former Carpetright warehouse into 262 mixed-tenure flats, including 92 much-needed affordable units. The two towers on the Old Kent Road will be known as The Ruby.
Construction is expected to start in September with the first homes ready for residents in early 2024.
Silbury was founded in 2020 by Matthew Pritchard, formerly head of European Real Estate Debt at Man Group, and Gavin Eustace, formerly head of Development Lending at Octopus Real Estate, and is backed by Oaktree Capital Management.
***
SEGRO plc, in its role as venture adviser to the SEGRO European Logistics Partnership joint venture, announced the pricing of a five-year, €750M senior unsecured green bond issue for SELP. The order book at peak totalled approximately €2.5B and the bonds were priced at 245 basis points above euro mid-swaps, equating to an annual coupon of 3.75%.
The proceeds of the issue will mainly refinance the existing (non-green) €500M bond expiring in 2023, which is subject to an ongoing tender offer. Eventually they will be allocated to financing and/or refinancing eligible green projects, including the development programme.
LEASES
Europe’s largest specialist B2B software investor, Dawn Capital, has signed for space in Soho Estates’ 325K SF Ilona Rose House, Charing Cross Road, WC2.
Dawn is an early stage investor with exits including Mimecast, iZettle and Tink as well as current investments in Collibra, Dataiku, Quantexa, Soldo, Copper and Firebolt. The team at Dawn will occupy 9K SF on the seventh floor.
Planet, a global technology leader, has exchanged contracts for the fourth floor, taking 17.3K SF.
The deals mean that 66% of floorspace is now pre-let ahead of the planned completion of construction work in September. Around 55K SF remains.
Gerald Eve advises Soho Estates. Avison Young advised Dawn Capital. Planet was advised by Levy Real Estate.
***
Knotel, a flexible workspace provider, has taken 26.5K SF on a new 10-year lease at CIT’s 260K SF Hylo office development at 105 Bunhill Row in London, EC1.
Deals were also completed with software business Beamery, which has taken 13K SF on a 10-year lease, and PRO Unlimited Global, which has taken a five-year lease on 6.5K SF.
Rents were between £70 per SF and £90 per SF, and another 15K SF at the property is reported to be under offer.
CIT was advised by Compton, BNP Paribas Real Estate and Cushman & Wakefield.
SALES
The new industrial investment partnership between Bloom and Angelo Gordon has bought its sixth asset, this time a multi-let industrial estate in Park Royal, west London. The vendor was Schroders Capital.
The freehold estate in Eldon Way includes 12 units in a 30K SF urban logistics scheme.
Bloom and Angelo Gordon created the partnership last year. The latest acquisition joins the partnership’s other five London assets, worth £60M, in Brixton, Greenwich, Hackney, Fulham and Camberwell.
