This Week's London Deal Sheet
The Deal Sheet is a weekly compilation of Greater London and beyond's biggest leases, sales, financing deals, construction updates and personnel moves. Have news you’d like to submit? Email mark.faithfull@bisnow.com.
Urban regeneration specialist Vita Group has agreed to a major transaction with Savills Investment Management for the sale of three UK student housing properties at circa £300M.
One of the largest UK purpose-built student accommodation agreements in 2023, the deal includes Cannon Park in Warwick, Iona Street in Edinburgh and Bruce Street in Belfast, totalling 1,340 beds.
Vita Student will continue to operate the assets on behalf of Savills Investment Management.
DEALS
Greystar Real Estate Partners has forward funded a 391-home development in Surrey from BTR developer Dandara Living.
Renshaw’s Yard, is adjacent to Staines town centre and was designed by Hodder + Partners and Aros. It will consist of 345 private units, six private three-bed townhouses and 40 discounted market rent units, as well as a basement with 215 car parking spaces and 396 cycle storage spaces. The external amenity space will feature a lounge, a private dining room, a coworking space, a gym and private courtyard gardens.
The site has already been cleared for construction, which Dandara Living will commence in the fourth quarter, with an expected completion date in Q3 2026. Dandara Living was advised by Savills.
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Long Harbour has agreed to forward purchase a 370-home BTR development with amenity space within Beaufort Park, Colindale, north-west London.
This acquisition is part of the Long Harbour Multi-Family Joint Venture 2 with the Public Sector Pension Investment Board and Cadillac Fairview/Ontario Teachers' Pension Plan, which targets multifamily schemes of over 150 units in London, the south-east and selected regional cities.
The homes will form the final phase of the wider Beaufort Park, once part of the RAF Hendon Aerodrome, masterplan. Construction is underway, with a phased handover scheduled for 2025 and 2026, developed by St. George.
Savills advised Long Harbour, and CBRE advised St. George.
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M&G has struck a series of deals worth a combined £62.7M to acquire 370 homes through a trio of partnerships with Chelmer Housing Partnership, Hyde Group, and HSPG-backed Park Properties Housing Association.
The deals were made on behalf of the M&G Shared Ownership Fund, which aims to provide investors with index-linked rental income and house price exposure by acquiring or funding the delivery of modern, sustainably designed affordable homes.
The partnerships are a continuation of M&G’s efforts to manage some of the funding challenges faced by housing associations by bringing long-term, patient capital into the sector, the company said.
Under the terms of the transactions, M&G will directly fund the development of new homes or buy existing and pipeline stock. CHP, Hyde and PPHA will continue to manage the properties on behalf of M&G, ensuring a seamless transition for residents.
FINANCE
Moorfield Group has launched MREIT, a new investment vehicle that will initially target acquiring existing and newly built homes within two BTR subsectors: single-family homes and student houses of multiple occupation.
MREIT has raised £100M of capital to date and is targeting over £500M of investment capacity. The REIT is aimed at institutional investors such as pension funds and insurers.
MREIT is looking to take advantage of the market opportunity presented by buy-to-let investors exiting the rental market due to increased taxation, mortgage costs and regulation, the company said.
“We believe that MREIT’s acquisition strategy will offer an attractive exit option for buy-to-let investors looking to sell, as well as housebuilders that are increasingly considering bulk sales,” Moorfield Group Chief Investment Officer Charles Ferguson said in a statement.
DEVELOPMENT
British Land has received a resolution to grant planning permission for a circa 140K SF, multilevel last-mile logistics scheme on Mandela Way, Southwark, which is the latest scheme in British Land’s 2.9M SF pipeline.
The site sits close to the junction of New Kent Road, Old Kent Road and Tower Bridge Road and will deliver a last-mile logistics hub for Southwark and central London.
The former Southwark Council car pound will be redeveloped to feature four floors of flexible, sustainable logistics space and will target a BREEAM Excellent rating.
British Land’s pipeline of urban logistics projects in London has a gross development value of £1.3B and includes a project adjacent to Old Kent Road on Verney Road, the Finsbury Square Car Park and The Box at Paddington Central. Additionally, British Land received approval in July to deliver 455K SF of multilevel logistics space at Heritage House, Enfield.
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Aviva and mixed-use developer Socius have been chosen as preferred bidders for the development of a 1M SF life sciences district on a 12-acre site for the London Cancer Hub in Sutton, London.
The companies said that they will partner with landowner London Borough of Sutton and work with the Institute for Cancer Research, London, the Royal Marsden NHS Foundation Trust and Epsom and St. Helier University Hospitals NHS Trust on the multiphase development.
Further investment and development will create a life sciences district dedicated to research and treatment of cancer and will create 13,000 jobs in health, science, education and construction.
This is the latest commitment from Aviva Capital Partners, Aviva’s in-house capital unit, which originates infrastructure assets using Aviva group capital.
LEASING
Borough Yards has announced the arrival of three new tenants. Ted Baker-owned barber Ted’s Grooming Room and skin specialist Re:lax arrive this autumn, while the London debut of West African-inspired restaurant Akara will be the latest restaurant to open.
The arrivals follow the signing of 12 additional brands over the summer, including Ace & Tate, Amorino, Bancone, Lids and Malin+Goetz, alongside the unveiling of a new pedestrian section connecting the district to the Thames.
The 160K SF regeneration project — which provides new offices, a cinema, shops and restaurants within revived Victorian railway arches next door to Borough Market — already includes The Office Group, Everyman Cinema and Le Chocolat Alain Ducasse as occupiers.
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Savills, on behalf of landlord The Langham Estate, has completed the leasing of 184-188 Oxford Street to footwear retailer Dr. Martens, which has signed a 10-year lease for its new flagship store.
The property, which provides approximately 6K SF of retail space, is arranged across the basement, ground and first floors.
