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. 

Commerz Real has sold a City office building called Paternoster Square in London in an off-market deal for an undisclosed sum to CLI Dartriver in conjunction with several European family offices as part of portfolio optimisation of its open-ended real estate fund Hausinvest.

The building has five storeys with a total area of 20K SF, and around 80% of this is office space leased to law firm Gateley, while the ground floor houses retail outlets.

The property was completed in 2002 in the course of the Paternoster Square urban development and acquired for Hausinvest together with the neighbouring building Paternoster House.

Following the sale, the fund will continue to be present in the UK, with Westfield London, Paternoster House, 180 Great Portland Street, Mann Island in Liverpool, and shopping centre Victoria Square in Belfast representing the largest properties in its portfolio.

FINANCE

BGO has made a €350M equity investment in European data centre developer Bulk Infrastructure. The company said the funds will be deployed to accelerate its growth plans. BGO’s investment will be made on behalf of investment vehicles under its management. 

Bulk has three sites in Norway and Denmark, and the investment brings BGO’s total equity investment in Bulk since 2020 to more than €640M. Bulk said it intends to invest more than €1B in capital expenditures by 2026 to grow the firm’s data centre platform in Europe.

“The latest investment by BGO will fuel our ambitions to shift the gravity for global and European large data loads to the cold and sustainable north,” Bulk founder and Executive Chairman Peder Naerboe said in a statement.

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Financial institution Abu Dhabi Islamic Bank has provided Hallmark Estates with a new finance facility to refinance The Stay Club North Acton co-living development in west London.

The Stay Club North Acton comprises 270 units and has an energy performance certificate A rating, and amenities include a gym, laundry facilities and concierge services.

This deal marks the second phase of the project, with ADIB financing the initial phase of 343 units in June 2023.

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UK housebuilder GS8 has received investments from TPG Angelo Gordon and Ridgeback Group to support the growth of the business, which focuses on regenerative housing developments. 

The investment will enable GS8 to grow its pipeline to circa 1,000 homes per annum over the next five years, the company said. GS8 has already transacted on three projects in connection with this investment: a site in Epping Forest for 113 homes, a site in Three Rivers for circa 100 homes, and a 4-acre land site in Buckinghamshire.

Luciana Berger, the former shadow minister for energy and climate change and MP for Liverpool Wavertree, has been appointed strategic adviser.

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Specialist property lender ASK Partners has provided an £11.7M senior loan to property investment and development company Ziser London.

The 18-month loan facility is secured against a single-storey retail warehouse let to Matalan and set on a 2.2-acre freehold site on Cricklewood Broadway.

The loan has been provided to refinance an existing lender and allow Ziser London more time to complete the pre-construction phase ahead of implementing the consented planning permission for a 239-bed build-to-rent scheme.

DEVELOPMENT

Thames City, the eastern hub of London’s Vauxhall Nine Elms Battersea Regeneration, has completed its first phase, with more than 96% of its homes sold, according to new developer Excel Winner.

A 53-storey and a 36-storey tower have been completed, and the linear park running through the Thames City site has opened, with only the development’s penthouses still to be completed and fitted out. Amenities include a podium garden, sky bar, swimming pool, cinema, karaoke room, gym, residents lounge, library, children’s play area and private dining facilities.

Excel Winner is a CC Land-backed company that has taken full control of Thames City from a CC Land-R&F Properties joint venture and is progressing plans for the second phase of the development, with work expected to start in 2025.

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Construction has started on the first office building at Brent Cross Town, the 180-acre, £8B mixed-use park town development in north London that is being delivered by Related Argent, in partnership with Barnet Council.

The building, 3 Copper Square, designed by architect Shedkm, will provide 239K SF of office space over 14 floors, plus retail space at ground level. It forms part of a new 3M SF business and innovation district for up to 25,000 people, alongside 6,700 new homes, student housing, homes for later living, a new high street, three schools and 50 acres of parks and playing fields.

The start at 3 Copper Square follows the appointment of BAM as the main contractor. The development is scheduled to open in the third quarter of 2026, with Sheffield Hallam University as the anchor tenant, occupying around 110K SF across the lower six floors.

PLANNING

Regal has submitted plans for Orchard Wharf in Tower Hamlets, across the mouth of the River Lea. 

The site boundary of Orchard Wharf comprises 5.8 acres, and the proposals consist of an 81K SF wharf and logistics centre, 208 affordable homes and nearly 15K SF of purpose-built student accommodations. Regal has also proposed a ground-floor café and community hub, plus 90K SF of new open space. 

The warehouse and reactivated wharf at Orchard Wharf will be operated by Thames Clippers Logistics as part of its strategy to develop a high-speed light river freight logistics service. 

LEASINGS

BNP Paribas Real Estate has sublet two floors of its former UK headquarters at 5 Aldermanbury Square and moved its City-facing teams to a newly fitted-out space on the 18th floor of the same building. This follows the firm’s move to the group’s Marylebone campus in January.

BNP Paribas Real Estate has sublet almost 30K SF of office space across the second and third floors at 5 Aldermanbury Square to TradingHub Group and telecoms software provider RingCentral. 

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Unibail-Rodamco-Westfield and football and dining experience venue Toca Football have announced a partnership to open multiple Toca Social venues throughout Europe.

The first two locations under the partnership are planned for 2025 and will occupy 38K SF at Westfield London and 26K SF in the recently expanded Westfield CNIT in La Défense, Paris. Additional locations are to be announced.

Toca Social operates at The O2 in London and has received investments from England captain Harry Kane and world chess champion Magnus Carlsen, while England women’s captain Leah Williamson and U.S. Women’s National Team sisters Alyssa and Gisele Thompson are stakeholders.

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Japanese fashion retailer Uniqlo will take a store at Coal Drops Yard in King's Cross this autumn. Uniqlo will occupy circa 12K SF over three floors in the space formerly occupied by Wolf & Badger.

“It is no secret that we’ve been working with Uniqlo for some time to find the right opportunity in the right location, so we’re delighted to finally be welcoming this much-loved high street brand to Coal Drops Yard this autumn,” King’s Cross Head of Retail James Rayner said of the announcement.

PEOPLE

Knight Frank has appointed proprietary partner Julian Evans to the newly created role of global head of healthcare as it continues to grow its global capital markets and real estate advisory platform.

Evans joined Knight Frank as UK head of healthcare in 2004. In his new role, he will lead a global team based across offices in London, New York, Dubai and Sydney.