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. 

M7 Real Estate has sold a portfolio of three UK retail warehouse assets on behalf of the M7 Box+ II fund to British Land for more than £45M.

St David’s Retail Park in Bangor, Queens Drive Retail Park in Kilmarnock and Enham Arch Retail Park in Andover comprise 270K SF of retail warehouse space with a blended weighted average lease term of more than five years. M7 acquired the assets in 2020 on behalf of M7 Box+ II, and following the sale, four assets remain in its portfolio.

“This transaction marks the conclusion of our asset management strategy for these assets and generates a solid return for our investors. The sale allows the fund to return equity back to investors whilst we continue to work through the asset management strategy for the remaining four assets,” M7 Real Estate Managing Director John Pow said in a statement.

M7 intends to recycle the capital into another batch of logistics and retail warehouses, he said.

Savills advised on the sale. 

PLANNING

The London planning team working with Savills Earth, on behalf of Westminster City Council, have gained reserved matters approval for the second phase of the regeneration master plan at the Ebury Bridge Estate, Westminster. 

This approval paves the way for the delivery of a residential neighbourhood consisting of 334 new homes as part of a master plan of circa 800, of which 75.1% in this phase will be affordable, Savills said.

There will also be re-provision of existing affordable homes with uplift, allowing existing residents the right to return, and the developers will be building new public realm and a community space.

***

Developer Dominus has submitted plans for the redevelopment of The Meadows shopping centre and surrounding area in Chelmsford city centre. The project would create 762 new homes.

A hybrid planning application has been submitted by Dominus, which specialises in urban renewal, for over 85K SF of retail, commercial and leisure space in collaboration with architect JTP.

***

PPHE Hotel Group has been granted planning permission for a 186-room, 15-storey hotel on Westminster Bridge Road, London, as part of a mixed-use development.

The site will also feature two floors of office and light industrial floorspace, plus an all-day dining bar and café on the ground floor. The development is opposite Lambeth North Station and will be PPHE’s fifth hotel in the Waterloo neighbourhood.

PPHE purchased the site for £12M in 2019 and is working on detailed designs for the project.

***

JP Morgan Global Alternatives has submitted a planning application for a major modernisation of Bishops Square and the adjoining Spitalfields Market in London.

The group plans to retain and extend the current office building, which will be rebranded One Spitalfields. The scheme will provide 870K SF of office and retail space, with 70K SF of new terracing. The Foster & Partners-designed property is targeted for delivery in 2030 and will retain 70% of the original building structure. 

DEVELOPMENT

Albert and Swedish Wharf, a £300M residential and logistics development in Fulham, is set to go ahead after Henley Investment Management completed the acquisition of the land in a joint venture agreement with a global investor.

Construction work is due to start early next year, and Henley has also secured new funding for the project, which will transform the 2-acre site on the north bank by Wandsworth Bridge into a 55K SF last-mile logistics facility alongside a 276-apartment scheme.

The development has planning approval from the London Borough of Hammersmith and Fulham and will include the new wharf and ancillary office space.

LEASES

The Boutique Workplace Company has signed a 15-year lease to open a workspace at 1-3 Frederick’s Place, a historic grade II listed building in Bank originally owned by Lord Frederick, Lord Mayor of London.

The workplace is expected to open in October and offers just under 18K SF of office space across seven floors, plus a roof terrace overlooking St Olave’s Passage.  

The building is part of the Frederick’s Place rejuvenation project by the Mercers’ Company. The final development within the estate, the 32K SF Whittington Building, completed this summer, delivering a mixed-use scheme and office space, The Mercers’ Hall and Archives, and three food and beverage outlets. HEWN acted on behalf of The Boutique Workplace Company, and Knight Frank and Ingleby Trice represented the Mercers’ Company. 

***

Flexible office operator Runway East is set to open its next flex location following a second deal with Soho Estates.

The 58 Wardour Street space will span 7K SF and house premium managed offices for teams of between 20 and 100 people, Runway East said.

PEOPLE

Madison International Realty has appointed Akaash Shah as vice president of investments. Based in Madison's London office, Shah will focus on advancing the firm's real estate growth platform investing activities.

Shah was most recently a principal at Accord Group, where he was responsible for sourcing, underwriting and executing strategic growth capital investments in early-to-mid-stage real estate platforms across the UK and Europe.

***

CBRE has appointed Rob Madden as head of UK leasing. He will be responsible for establishing and driving CBRE’s growth strategies across the UK, covering offices, industrial and retail.

In addition, Madden will work in partnership with Julie Ennis, head of UK occupier, overseeing the tenant advisory teams.