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.
A £1.1B extension of the British Library has been given the to go-ahead after the project secured the backing of Mitsui Fudosan. The scheme was approved by Camden Council in July last year but was awaiting confirmation of investment from the developers.
The investment will create 600K SF of new commercial space, targeting occupiers in the life sciences sector in London’s Knowledge Quarter. It will also create around 100K SF of new space for “culture, learning, research and business including expanded galleries and business support facilities” the company said, plus a new foyer and public entrances.
The design from architect RSHP and engineer Arup will open up the library across three sides and create new publicly accessible areas and routes connecting it to Somers Town and St Pancras, with work due to start next year, with completion by 2032.
Under the terms of the agreement, the British Library will grant a long lease of the land to Mitsui Fudosan-owned development partner SMBL, with Stanhope acting as the development manager.
DEALS
Residential developer London Square has acquired the Leegate Shopping Centre in Lewisham, south-east London. The site is London Square’s 14th purchase since being acquired by Aldar at the end of 2023, and the company plans to deliver a mixed-use destination development, with homes, retail, leisure, restaurants, cafés and a medical facility.
Acquired from Galliard Homes, there is planning in place for 562 homes comprising 389 private and 173 affordable houses, with 49K SF of ground-floor commercial space.
London Square said it will work with the London borough of Lewisham to increase the level of residential options. On-site work is expected to start later this year.
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Malaysian conglomerate IJM Corporation has secured a 143-year leasehold interest in 25 Finsbury Circus, previously known as 1-5 London Wall Buildings, for £72.5M from private equity firm TPG Angelo Gordon.
The property is set for a £150M sustainability-focused refurbishment, increasing its gross internal area by 26% to 378K SF, IJM said in a statement, adding that it is in advanced negotiations to lease over 60% of the building’s space. Construction will begin immediately and is expected to be completed within three years.
“This investment aligns with IJM’s strategy to diversify its investment property portfolio geographically and establish a larger footprint in key global real estate markets,” the company said in a statement.
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Intermediate Capital Group has completed the purchase of a National Timber Group portfolio of assets for £25.4M. The deal includes five industrial assets in Sheffield, Newcastle, Oldbury, Hull and Reading, all operating as timber merchants. Spanning circa 600K SF across 38 acres, the portfolio has a weighted average unexpired lease term of four years, with annual retail price index-linked rent reviews.
Allsop acted as Intermediate Capital Group’s agent for the deal. Knight Frank advised the vendor.
FUNDING
Elva Ventures has been launched by John Diedrich, the former chief investment officer at CA Ventures. The new European platform will be dedicated to purpose-built student accommodation and already has a £200M development pipeline.
Over the next 10 years, Elva Ventures is targeting 15,000 beds under management, focused on the UK, Portugal, Spain and Italy initially. Diedrich has secured capital from high net worth individuals and family offices to fund Elva Ventures, with some previous investors of CA Ventures backing his new platform.
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YourTribe has secured two development loans totalling £114M from Maslow Capital to finance the delivery of two PBSA schemes: the St James development in Walthamstow and Ravensbourne Wharf in Greenwich.
Combined, the schemes will deliver 638 PBSA units and 10,600 SF of commercial space, and the funding package includes a £35M facility for the 224-bedroom St James PBSA scheme with 5,300 SF of commercial space in Walthamstow, as well as a £79M facility for the 414-bedroom Ravensbourne Wharf PBSA scheme with 5,400 SF of commercial space in Greenwich.
The Walthamstow project is set to reach practical completion in time for the 2026 academic intake, with the Greenwich scheme following in 2027.
FOR SALE
Europa Capital and Hobart Partners are selling the Fetter Yard office building at 86 Fetter Lane in Midtown with a guide price of £90M.
The building was comprehensively refurbished in 2022 by Orms Architects to provide 105K SF of office and retail space.
The property provides secure income of around 10 years WAULT to lease expiries, or six years to lease breaks. Offered with a topped-up rent of £6M a year reflecting a rent of £60 per SF overall, Fetter Yard provides considerable upside potential given rents in the immediate area are now over £100 per SF, according to Savills, which is advising on the sale.
The property is held long leasehold with 114 years remaining at a peppercorn ground rent. The £90M guide price reflects a net initial yield of 6.5% and capital value of £860 per SF.
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Real estate investor Aberdeen has put its 24-28 Bloomsbury Way HQ office building up for sale for £35.5M, and marketing agent Savills said there is potential for a 95% rent rise.
The building serves as the 44,700 SF head office of global advertising and communications group WPP.
PLANNING
Lateral and HIG have secured planning permission for the 160K SF Cavell Street labs project, which the joint venture partners described as a “major milestone in our mission to establish Whitechapel as a world-class life sciences cluster.”
As part of this, the companies are partnering with Queen Mary Bioenterprises to deliver up to 40K SF of incubator and expansion space for life science companies.
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Berkeley Group has secured planning permission for the regeneration of Bromley-by-Bow Gasworks after completing a Section 106 agreement with the London Borough of Newham.
Berkeley has worked with the council and Historic England to unlock the site, which will see a £72M investment in the restoration of its seven listed gasholders across the 23-acre brownfield site.
As well as building more than 2,150 homes, Berkeley's plans will make the site publicly accessible for the first time in 150 years, and 70% of the site will become open space, including a 4.2-acre park fronting the River Lea.
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Plans for more than 1,500 new homes in Finchley have secured “support in principle” from City Hall and will soon be considered for approval by Barnet Council.
The proposed development at Great North Leisure Park would comprise 20 buildings, the tallest 25 storeys, plus a new leisure centre. The existing leisure park, located just off the North Circular, includes a Vue cinema, a bowling alley and restaurants with car parking, as well as the council-owned Finchley Lido Leisure Centre. These will be demolished to make way for the new development.
In all, 23% of the homes will be classed as affordable, with 195 properties available at a social rent and 130 offered for shared ownership. The remaining 1,177 homes are proposed to be sold at market rates.
LEASING
Barings and joint venture partner and development manager LBS Properties have completed a circa 14K SF letting at the Tide Bankside office development to Flight Centre.
The global travel agency has leased the entirety of the seventh floor on a 10-year term. Flight Centre will consolidate its existing Holborn and Southwark offices into one space, bringing its teams together at Tide, with relocation to the building expected later this year.
Tide consists of 11 upper floors providing approximately 145K SF of office space, along with a ground-floor retail unit, plus 13K SF of private and communal green spaces.
PEOPLE
Newmark Group has appointed Vinnie Kilner, Parin Patel, Alfie Molloy, Ine Roren, Nathan Archer and Alfie Tierney to form its retail, hospitality, and leisure project and cost management practice. The team will support clients in the UK and Europe, providing specialist project, programme and cost management advice across their retail, hospitality and leisure portfolios.
