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.
The City Corporation has approved a new office building at 70 Gracechurch Street that will provide 550K SF of office space and a new link from Fenchurch Street to Leadenhall Market.
Consented proposals for a joint venture between the Ontario Teachers’ Pension Plan and Stanhope will retain and refurbish the existing building and provide a public viewing gallery at the 32nd floor, with completion targeted for summer 2032.
The KPF-designed proposals will deliver Grade A office space, a new public connection from Fenchurch Street to Ship Tavern Passage and north to Leadenhall Market, and three major new cultural uses, including the roof-level viewing experience.
“This project will enhance the ‘Eastern Cluster’ and create a vibrant new gateway to Leadenhall Market, enriching the area for businesses and the wider community,” OTPP Senior Managing Director, Real Estate Jenny Hammarlund said in a statement.
FINANCE
TPG Angelo Gordon and developer Hollybrook have entered a joint venture aiming to invest £200M in the UK purpose-built student accommodation sector.
The partnership has been seeded with a 271-bedroom PBSA development in Wimbledon, with more deals in the pipeline, the companies said. Hollybrook started construction at the Wimbledon scheme last summer, and completion is expected in time for the 2026-2027 academic year.
The partnership said it is focused on supply-constrained, multi-university student markets with a target to secure planning permission for 1,000 PBSA beds in 2025, with a 300-bedroom scheme in London “likely to be the next acquisition deal.” Over the next three years, the plan is to acquire and develop 2,000 PBSA beds.
DEALS
Tritax Big Box REIT has purchased the 650K SF Sainsbury’s distribution centre in Haydock in an off-market deal for £75M, arranged by Colliers.
The purchase price represents a net initial yield of 6%. The cross-dock distribution centre is let to Sainsbury’s until 2038, with an uncapped retail prices index rent review due in 2028.
“We’re delivering on our objective of rotating out of non-strategic assets, inherited through the acquisition of UKCM, and redeploying capital into attractive logistics opportunities such as Haydock, which has strong build credentials as well as being sited in a location which will support evolving supply chain demands in the north west,” Tritax Big Box Transaction Director Aaron Hulait said in a statement.
LEASING
British Land has signed generative artificial intelligence company Synthesia at 20 Triton Street for 20K SF at the Regent’s Place campus. Synthesia will lease a bespoke space, designed in collaboration with British Land, and will take occupation of its new London headquarters in the summer of 2025.
Synthesia develops software used to create and distribute AI-generated video content.
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P-Three has secured the letting for Third Space at Elephant, the former House of Fraser department store at 318 Oxford Street in London.
The luxury health and fitness club will take 30K SF, including a gym floor, wet spa and dedicated studios. This is the first letting for the newly redeveloped Elephant building, which is being transformed into a 250K SF mixed-use destination with 159K SF of office space, 42,400 SF of retail space and a 12,400 SF rooftop restaurant.
Due to complete in summer 2026, the scheme is targeting BREEAM Excellent, WELL Gold, SCORS A+ and WiredScore Gold certifications.
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Developer Seaforth Land and QuadReal Property Group have secured two new lettings at Space House, the 260K SF Grade II-listed office tower in Covent Garden.
Software company Blackline has signed a lease for the seventh floor of the block, spanning 8K SF, while an unnamed FTSE 250 company has taken the sixth floor, which comprises 8K SF, on a 10-year lease.
In addition to these first two leasing commitments, there is 148K SF of tenant demand in the space planning process across the property, the companies said.
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Cocktail bar and social darts leisure offer Flight Club is to take 10K SF at Eldon Square, Newcastle’s city centre shopping and leisure destination.
Set to open later this year, Flight Club will occupy the space in Grey’s Quarter, with entrances within Eldon Square and on Nelson Street, marking its first venue in the north-east.
The new site is Flight Club’s 15th location in the UK, with venues across the UK, Ireland, the U.S. and Australia.
PEOPLE
CBRE has promoted Becky Stormer to lead its growing sports sector offering in the UK. Stormer has been with CBRE for more than six years in the firm’s central London investment properties team and is a semiprofessional footballer for Fulham FC.
In her new role, she will be responsible for implementing and delivering the three-year growth plan for the sector.
