Munich-Based Investor Makes First London Deal: The 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.
Munich-based Bayerische Hausbau Real Estate Group has acquired its first UK commercial asset, securing an office and retail building at 7-8 Conduit Street in London’s West End for £41M.
The acquisition is its first investment outside the company’s home market of Germany. The 15K SF 7-8 Conduit Street was revamped last year and has an EPC A rating.
The newly acquired building will form part of BHRE Group’s core and core-plus portfolio, prioritising secure income, robust technical standards and strong environmental, social and corporate governance performance. While the UK strategy will initially focus on central London office assets, the group is open to select residential and hospitality opportunities, the company said.
BHRE Group currently manages over €3B in commercial, residential and hospitality assets, primarily in central Munich.
LEASING
Salesforce has renewed its current lease at Salesforce Tower, 110 Bishopsgate, through 2036. The tech giant will continue to occupy 125K SF of space across levels 26 to 33 and 36 to 37.
Major new tenants including Qmetric, MNK, Danske Bank, Cantors Europe and Genpact, leasing 80K SF, have taken space at the 440K SF skyscraper, with 40K SF remaining.
“This investment reinforces our deep commitment to the UK and reflects our vision for real estate in the agentic enterprise era, ensuring we have the right places that bring together our employees, customers, partners, and community to drive innovation and growth,” Salesforce Executive Vice President, Real Estate and Workplace Services Relina Bulchandani said in a statement.
Heron was represented by CBRE and Savills, while CBRE advised Salesforce on the transaction.
DEALS
Developer HUB and affiliates of global investment firm H.I.G. Capital have acquired St Clare House at 30-33 Minories, a postwar office building in the City, for an undisclosed sum. The site has an existing consent for a 13-storey, 280K SF, office-led mixed-use scheme approved in January 2024.
The acquisition is the third by the partners. The site currently comprises the existing postwar office building, St Clare House, and an adjacent Victorian warehouse building, Writers House. HUB plans to reposition the site, building on the existing planning framework, with a living-led scheme.
The redevelopment of the site will add to HUB’s growing pipeline of homes across the UK, taking it to a total of 9,300 completed or under development. This includes HUB’s two existing partnerships with H.I.G. Capital: Finsgate House in London’s Old Street, where plans were submitted for 490 homes in a mixed-use scheme earlier this year, and a 1.2-acre living-led masterplan in Elephant and Castle, which plans were submitted for in October last year.
FINANCE
The first European CMBS to close in 2026 has been completed.
The CMBS issuance was backed by an initial senior loan to Mileway, a Blackstone portfolio company, in November 2025. Standard Chartered acted as joint mandated lead arranger and original lender, and the financing was secured against a portfolio of 126 last-mile logistics and industrial assets.
Standard Chartered acted as co-arranger and joint lead manager on the CMBS issuance, as well as loan seller, risk retention provider and liquidity facility provider. The transaction closed at £500M.
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A joint venture between Zenzic Capital and Torsion Group has agreed to a £63M refinancing for three purpose-built student accommodation assets.
Provided by an affiliate of Cerberus Capital Management, the new five-year investment facility redeems three development loans held individually against each asset from Zorin Finance, Ingenious Group and Atelier Finance. The new finance will support the JV’s ambition to create a circa £500M gross development value portfolio of over 2,000 beds, the companies said.
The three assets comprise 476 beds in total, with 99% occupied in their first year of opening, and are operated by Torsion-owned Luna. Burnsall House is located in Warwick, while Trapezium and Burley Studios are both located in Leeds.
The two other assets in the JV are a 137-bed asset in Nottingham and a 205-bed asset currently under development in Leeds.
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Newcore Capital has achieved a second close for its £375M core-plus income fund, the Newcore Social Infrastructure Income Fund, which is seeking income-producing social infrastructure real estate with a target net return of 9% to 11% per annum.
NSIIF has secured additional investment from an institutional pension scheme client of Aberdeen Investments. Since inception in March, NSIIF has completed 13 investments across the healthcare, education, transport and other social infrastructure sectors throughout the UK.
Recent acquisitions include a 20K SF primary healthcare centre in Bushey, a trunk road service area with a forecourt in Lincolnshire, a 100-place children’s nursery in London and a waste management site in Norwich.
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Future Growth Capital, a private markets solutions business formed by Schroders and Phoenix Group, has agreed to a £32M whole-loan facility to Greycoat, secured against 140 Leadenhall, a Grade II-listed building in the City.
The two-year facility will support the final stage of the building’s refurbishment, and the loan proceeds will be used to partially refinance Greycoat’s initial acquisition and capital expenditure, fund the remaining refurbishment works, and include a lender-controlled reserve to support ongoing property and financing costs throughout the full loan term.
Designed by architect Edwin Lutyens for Midland Bank in 1931, 140 Leadenhall is located next to the Leadenhall Building and totals 45K SF over lower ground, ground and six upper floors. The refurbishment is expected to complete in Q1 and is primarily office-led, with potential for basement leisure use.
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Real estate lender Leumi UK has completed a £10.4M investment loan to Sterlet, which refinances three assets located across Fitzrovia, Elephant and Castle, and Acton, London.
The largest asset within the portfolio is 33 Manor Place, a newly refurbished Grade II-listed complex comprising the Manor Place, Wash House, and Bath House buildings and located close to the Kennington and Elephant & Castle tube stations. The asset totals 22K SF in total and is fully let to Palace Skateboards as part of a commercial collaboration with Nike.
The second asset, 17-19 Foley Street, Fitzrovia, offers 9K SF of office space over four floors. The final asset, 179-181 The Vale, is a specialist 3K SF commercial unit located near Acton Central station.
DEVELOPMENT
Plans for a £1B expansion of the London Cancer Hub, led by Aviva Capital Partners and development manager Socius, have received consent from Sutton Council.
The approved scheme will deliver around 1M SF of laboratory and research space, and the approved plans will deliver new laboratory and research space across 12 acres. The expansion forms part of the wider London Cancer Hub district and, once the full district is realised, will target net-zero carbon in operation.
Recognised in the Mayor of London’s Growth Plan as a key engine for frontier innovation, the project will deliver significant economic benefits in a project designed by Gensler.
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Urbium Capital has completed a forward-funding development transaction to deliver a 120-bed care home at 65-69 Hampden Road, Kingston-upon-Thames for its flagship Urbium Living Fund I and its first-in-the-UK senior living sector.
Working in partnership with Care Concern Group, Downing and Cynergy Bank, when completed, the purpose-built scheme will provide nursing and dementia care. The development has full planning consent and is already under construction, with completion due for April 2028, when it will be operated by CCG.
The project is being funded through senior development finance provided by Cynergy Bank, marking the bank’s largest single forward-funding transaction to date.
