This Week's Europe Deal Sheet
UK
The Co-op, Loungers and Five Guys will be joining the lineup at Bruntwood’s recently launched University Green, which forms part of the University’s £1B campus master plan and redevelopment. Loungers will occupy a 3,175 SF unit and will be decorated with reclaimed antique furniture and fittings. Five Guys will open a 3,175 SF ground-floor restaurant, its first in the Corridor Manchester innovation district. Co-op Food will take a 4,656 SF unit, featuring the new company branding being rolled out across the UK. The new store will have an in-store bakery, locally sourced products and a focus on fresh, healthy foods, meal ideas and essentials. Students who hold a NUS extra card can also enjoy a 10% discount off their groceries at the store. All sites are due to open in summer 2018, shortly after completion of the scheme. Metis Real Estate Advisors represented Bruntwood. Insight Retail and Bradys acted for Loungers and Co-op respectively. Five Guys represented themselves.
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SEGRO signed three new leases at Metropolitan Park, Greenford, to two Supercar businesses and to one of the oldest wine merchants in the UK, all on 10-year leases. Belgravia Supercar Rentals is taking 5K SF to store supercars for its rental business, R.A.N Supercar Clinic Limited. A newly incorporated business is taking more than 6K SF and intends to use the space for detailing and wrapping Supercars with paint protection film. Chalié Richards, a wholesaler of Artisan Wines and Spirits, is taking just over 12K SF to use for storage and distribution.
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Orchard Street Investment Management let two high-quality warehouse/distribution units prior to practical completion at its Maylands Point development in Hemel Hempstead. A 36K SF Unit 1 has been let to Selco. Unit 2, comprising 22K SF, has been let to a leading national distribution company at a rent of £9.50/SF. Both leases are for 10-year terms. Colliers International advised Selco. Brasier Freeth and dohertybaines were letting agents for the scheme.
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Nash Bond, acting on behalf of Cadogan, secured a 818 SF London flagship on King’s Road for wellness and beauty brand Neom Organics. Neom Organics has signed a four-year lease for the Kings Road unit, paying a rent of £110K/year with a four-month rent-free period. Nash Bond represented the landlord, Cadogan. Neom Organics was represented by Thomas Pain.
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Asics will open a new flagship on London's Regent Street this year. The sportswear company signed a lease for 249-251 Regent St. and will offer the full range of Asics, Asics Tiger, Onitsuka Tiger and Häglofs collections.
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Pizza specialists Radio Alice signed a lease for 67 Venn St., Clapham. The new restaurant is set to open in June and will cover 2K SF and have space for 80 covers internally and 40 externally.
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Law firm Howard Kennedy is advising Fairview Hotels on its UK expansion, following the acquisition on 28 April of three hotels from Land Securities and AccorHotels. Fairview Hotels acquired the 102-bedroom Ibis Cardiff City Centre, the 111-bedroom Ibis Rugby Central, and the 126-bedroom Novotel Newcastle Airport. This follows its acquisition of four Novotel hotels in December 2016.
The three new hotels will undergo a renovation and refurbishment programme whilst being integrated into the Fairview portfolio. Hogan Lovells acted for Land Securities, CMS advised Accor and DWF acted for Coutts.
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AEW UK REIT acquired two industrial assets in Basildon, Essex, and Runcorn, Cheshire, for a total of £2.6M. Basildon comprises a 33K SF single-let industrial building on the established Pipps Hill Industrial Estate. The purchase price of £2M reflects a net initial yield of 9.3%. The building will be let on a new 10-year lease to Merson Signs Ltd for £6/SF.
The Runcorn asset, which shows an initial yield of 7.8%, completes the company's acquisition of the whole of the Sarus Court industrial estate, where the company already owned five of the six units. The estate provides well specified, modern industrial units ranging from 11K SF to 17K SF, which are let to a number of light-industrial occupiers.
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Stanley Homes snapped up Palmer Capital and Wrenbridge’s Breakshear House for £7M. The property is on Barnet’s High Street, and originally comprised factory units and workshops occupied by cottage and craft industries. The site now has planning permission for 40 residential homes.
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LXM became 48 Pall Mall’s first tenant. The company signed a 10-year lease for the 3,835 SF sixth floor at a rent of £115/SF. The new 32K SF office building has been completely redeveloped behind a partly restored historic façade to provide nine floors of office space that range from 2K SF to 4K SF with three roof terraces and cycle storage. LXM’s new HQ will serve as a central hub for its affiliates in New York and Athens. Savills and CBRE are 48 Pall Mall’s leasing agents. The Lorenz Consultancy acted for LXM.
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UK Commercial Property Trust Limited signed four new lettings, totalling 90K SF at Gatwick Gate, its 140K SF industrial estate adjacent to Gatwick Airport. The deals deliver a total rental income of £776K/year, and the estate is now fully occupied. Airbase Interiors Limited, the plane interior specialist whose clients include British Airways, has agreed to 10-year leases on two units comprising 22,500 SF each, at a rent of £393K/year. Two 10-year leases have also been agreed with International Logistics Limited, which provides warehousing distribution and logistics services, for two 22K SF units.
SWEDEN
SSM Holding AB acquired a new housing project in the suburb of Spånga, just outside of Stockholm, from Nils Johnny Fastighets AB. The total floor space of the project is 123K SF; SSM intends to develop it into 250 cooperative apartments. Production is expected to start during the first quarter of 2020 with occupation from the fourth quarter of 2021.
FRANCE
Kate Spade will open a 2K SF store on the Rue Saint-Honoré in Paris. The store will carry their handbags, ready-to-wear, accessories, watches, jewelry, shoes and eyewear. Europe has been a major target market for the brand. Last year, it opened a store in London on Regent Street. In France it only has retail presence in Galeries Lafayette and online. In honor of the opening, the brand will also design a clutch bag based on the French flag.
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