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 [email protected].
Property investment management company AshbyCapital has refinanced two of its retail parks with a three-year, £50M loan facility provided by Deutsche Hypo.
Deutsche Hypo was the incumbent funding partner for the Morfa and Westside retail parks, which are both fully let. The new deal replaces AshbyCapital’s existing facilities with the bank and provides a capex facility.
Acquired by AshbyCapital from British Land in February 2019, Westside Shopping is located in Guiseley, West Yorkshire, and comprises 120K SF of retail space across 13 retail units.
Morfa Shopping in South Wales offers 345K SF of retail, leisure and parking next to the Liberty Stadium, home to Swansea City and the Ospreys regional rugby team. Purchased by AshbyCapital from the Crown Estate in December 2015, Morfa Shopping’s 19 retail units are fully let.
FINANCING
Bromford and Legal & General Investment Management’s private credit team have co-created a unique new funding deal that provides the housing association with £50M of investment under its sustainable finance framework. The funding is designed to help Bromford deliver over 12,000 energy-efficient and affordable homes by 2031.
The funding has been delivered through recouponing Bromford’s existing £100M private placement with LGIM, which was originally agreed upon in 2020. The companies said this is a first for the sector.
The recouponing, which was supported by Newbridge Advisors, releases £50M of embedded value in the private placement as immediate cash proceeds. It will be repaid over 40 years with an amortising repayment curve.
Bromford built 1,265 new homes last year and has secured planning permission for its biggest land-led developments to date for 180 and 100 homes, respectively, at two sites in Gloucestershire.
“This funding demonstrates how we can work collectively to invest in the UK’s towns and cities and deliver new, much needed social and affordable homes,” LGIM Real Assets Head of Corporate Private Credit Steven Bolton said in a statement.
LIFE SCIENCES
Kadans Science Partner is set to add AviadoBio to its recently completed wet lab innovation and flexible workspace centre at 20 Water St. in Canary Wharf.
The gene therapy company develops and delivers medicines for neurodegenerative disorders and will establish a laboratory and office presence on levels four and five of the London Innovation Centre.
Its space comprises 40K SF of fully fitted flexible wet labs ranging from bespoke 250 SF to over 2K SF labs. Tenants have the option of renting a bench in a shared lab or taking their own private lab.
SENIOR LIVING
Audley Group and Senior Living Investment Partners have acquired a plot within the Brent Cross Town masterplan to develop a new retirement village.
SLIP is a £200M partnership between Pension Insurance Corp., a specialist insurer of defined benefit pension schemes, and real estate lender and investor Octopus Real Estate. This scheme is SLIP’s third retirement community investment and the second with Audley Group following the acquisition of the Headley Court site in Leatherhead, Surrey, in July.
The joint venture will develop a new retirement village as part of Audley Group’s Mayfield Villages. Brent Cross Town will be the second Mayfield Village and the first in London.
The site will deliver 147 retirement units along with 14.6K SF of amenities and form part of the Brent Cross Town development, a 180-acre masterplan managed by Brent Cross South LP, being delivered through a 50-50 partnership between Barnet Council and developer Related Argent.
SALES
Great Portland Estates plc has acquired King Sloane Properties, which owns the freehold interests at 16-19 Soho Square, 29-43 Oxford St. and 7 Falconberg Mews, W1, from Belgravia & Chelsea Property Services.
The cash consideration is based on a property value of £70M (£772 per SF on consented net internal area) and is subject to further balance sheet adjustments.
The consideration was met from GPE’s existing undrawn facilities and cash. The 57.5K SF mixed-use buildings are multi-let at circa £1.48M per annum with vacant possession expected by March.
The 0.5-acre West End site has planning consent to demolish the existing buildings and deliver around 90K SF of new Grade A office and retail space, arranged over basement, lower ground, ground and eight upper floors, with multiple private terraces and a communal roof terrace. Great Portland Estates said it intends to redevelop the site.
RETAIL
The majority of Wilko stores are to close within weeks after a purchase of the discount retailer fell through.
In a meeting with administrators, the GMB Union said it was informed that there is no longer any prospect that the majority of the business will be saved. Some stores within the 400-strong estate may be bought, either individually or as part of larger packages, but significant job losses are now expected, the union said.
"While discussions continue with those interested in buying parts of the business, it's clear that the nature of this interest is not focused on the whole group," administrator PwC said in a statement. "Sadly, it is therefore likely that there will be redundancies and store closures in the future and it has been necessary to update employee representatives."
