Contact Us
News

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.

Two leading UK niche retail agencies are in merger talks more than a decade after they were launched.

Placeholder

MMX Retail and Fawcett Mead are in advanced talks to create a new firm that would be one of the country’s leading specialist retail advisory firms, CoStar reported.

MMX focuses on leasing, landlord and tenant advisory, development and repurposing, and investment, while Fawcett Mead is more of an investment specialist, making the two businesses complementary. The combined firms would have around 20 staff. 

MMX Retail was founded in 2010 by Savills directors David Justice, David Jinks and Nick Symons. Clients include Marks & Spencer, Federated Hermes, Hammerson, EE, Abrdn, LK Bennett, menswear retailer Moss and The Crown Estate.

Fawcett Mead was founded in 2010 by Graham Fawcett and James Mead. Clients have included Kennedy Wilson, Columbia Threadneedle Investments, CBRE Global Investors, Legal & General, Federated Hermes and Ellandi.

LEASES

Javelin Global Commodities has agreed a deal to take all 21K SF of available office space at Grosvenor’s Ice Factory scheme in Belgravia, west London.

Spanning five floors, 27 Eccleston Place, known as the Ice Factory, is a 29K SF repurposed warehouse. Originally built in 1830 for Shingleton’s Ice Company, it has been adapted to a range of uses over its near 200-year history, being used as a coachworks, power station and motor repair centre.

In line with Grosvenor’s sustainability commitments, both parties have agreed green lease provisions. Javelin is expected to move in early in the new year.

RX London and Colliers acted for Grosvenor.

CONSTRUCTION AND DEVELOPMENT

Islington’s first full demolish and rebuild estate regeneration plan has been approved by the local authority, with almost 50% affordable housing.

The project is run by Newlon Housing Trust and Mount Anvil and will see 914 homes built.

Islington Council voted in favour of the transformation proposals, which will also include: two new parks; new streets, including pedestrianised mews streets; a new community centre; 426 social rent homes, including 135 new homes for social rent and 291 replacement homes for current estate residents; and more than 173K SF of high-quality open spaces.

Residents voted in favour of redevelopment in an estate ballot in March 2021 — 73% voted yes with a turnout of 79% at this first estate ballot in Islington.

***

L&G Modular Homes has agreed a five-year joint venture with southern-based housing association Vivid to build 1,000 homes.

The off-site builder, a subsidiary of insurance giant Legal & General, said the joint venture will see the business construct up to 300 net-zero homes a year for the 33,000-home social landlord across the south of England.

L&G said its homes are 73% cheaper to run and emit 93% less carbon than the typical UK home as assessed by Ofgem, with annual running costs of just £668 a year.

INVESTMENT

Cadogan, which manages 93 acres across Kensington and Chelsea, has acquired The Draycott Hotel. Built in 1890, the Victorian property comprises three red-brick town houses on Cadogan Gardens in the heart of Chelsea, west London. It will undergo a restoration before reopening as The Chelsea Townhouse, operated for Cadogan by Iconic Luxury Hotels.

Formerly owned by Draycott Holdings Ltd., and managed by the Mantis Collection, the property currently has 35 bedrooms and suites, many overlooking a private garden square.

FINANCING

Segro has launched a £350M, 19-year senior unsecured bond issue, priced at 175 basis points above gilts, with an annual coupon of 5.125%.

The bond issuance, carried out under Segro’s medium term note programme, was almost six times oversubscribed.

The proceeds of the issue will principally be used for general corporate purposes.

Segro’s cost of debt, based on the position at 30 September 2022, is 2.2% and its average debt maturity increases to 9.1 years. This transaction also increases the fixed element of its interest rate exposure to 78%, or 86%, including interest rate caps.

***

Aviva Investors has completed an £80M placement in Cross Keys Homes, a social housing association based in Peterborough, Cambridgeshire.

The investment was made on behalf of Aviva UK Life’s annuity business. Aviva Investors has now invested almost £360M in social housing providers across the UK in 2022.

CKH will use the funding to support its ongoing growth and development plans, including the building of its flagship scheme in Northminster, which will provide 315 affordable homes.