This Week's London Deal Sheet: Japanese Investor Buys Majority Stake In Patron Capital
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.
Pan-European fund manager Patron Capital has secured investment from Mitsubishi Estate through its Mitsubishi Estate Global Partners investment management business.
MEGP is purchasing a majority stake in Patron and providing €600M in the form of equity commitments to Patron’s funds and financing for new subsectors, including real estate credit.
Patron is targeting growth across private European real estate markets, including in the opportunistic investing space, as well as across “multiple new subsectors and asset classes where recent market adjustments and structural macroeconomic trends are presenting compelling new long-term risk-adjusted opportunities,” the company said after recently announcing the launch of its real estate credit business.
DEALS
Barings, on behalf of a core European real estate strategy, has sold City office Capital House for £169M to Daibiru, a Japanese investor and subsidiary of Mitsui O.S.K. Lines.
Capital House is on King William Street and comprises circa 122K SF of office space over eight upper floors, along with ground- and lower-ground-floor retail let to Pret A Manger and Sainsbury’s.
Barings acquired the building in 2021 and has invested more than £11M to refurbish the ground-floor reception, install end-of-journey facilities and new terraces, and refurbish six office floors. The scheme is now let to seven tenants over 11 leases, with office occupiers including Rothschild and Redburn.
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Lloyds Living has signed a second major portfolio acquisition as part of its partnership with Barratt Redrow, the UK’s largest housebuilder.
The new portfolio is made up of 598 homes across 11 locations. The homes are a mix of two-, three- and four-bedroom single-family homes and will be at new and existing Lloyds Living sites, including at Hampton Beach in Peterborough, Ladden Garden Village in Yate, Lancaster Gardens in Eccleshill and Chidswell in Yorkshire.
The 398 homes across new sites are all in locations with high demand for quality accommodation, Lloyds Living said, and the first homes are expected to be available to rent from July 2025 in Abingdon, Finchampstead and Crewe. The remaining homes will be delivered by the end of 2027.
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Bridges Fund Management and developer Hub have acquired Sandringham Mews, a 318-home consented coliving scheme in west London.
Situated in the Ealing Town Centre Conservation Area, the site will be developed into new coliving homes, shared amenities and ground-floor retail, adding to Hub and Bridges’ pipeline of coliving projects, including Cornerstone and Assemblies in the City of London, Yardhouse in White City and Pines Way in Bath.
FINANCE
Delancey has completed a £24.5M senior secured facility to refinance a development site owned by a joint venture between Hurlington Capital and The V Fund.
In May 2024, Hurlington Capital, which manages the project, secured planning consent for a 429-bed purpose-built student accommodation building and a 95-home affordable residential scheme to be delivered on two separate plots. The existing sites currently host circa 44K SF of commercial and light industrial buildings, which will be reprovided in the scheme.
The site is in the Bollo Lane mixed-use master plan, which includes a major housing project being delivered by a joint venture between Transport for London and Barratt Homes. The student accommodation in the scheme will be delivered for the 2028-2029 academic year.
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Heitman has announced an allocation from Hesta, one of Australia’s largest superannuation funds dedicated to health and community service, to invest in European alternative property types, including self-storage, student housing, residential and healthcare.
Hesta is an existing investor with Heitman through its U.S. core investment strategy.
“The new allocation with Heitman will support us to continue to build a well-diversified portfolio of property investments designed to help deliver strong long-term returns for our more than one million members,” Hesta Head of Portfolio Management Jeff Brunton said in a statement.
LEASING
The Premier League’s international production arm is to take office space at Olympia in London.
From the start of the 2026-2027 season, Premier League Studios, the league’s new in-house media operations business, will launch at One Olympia. Occupying more than 73K SF, the Premier League has signed a 20-year lease.
Offering 550K SF of office space, One Olympia is part of the 14-acre redevelopment of Olympia being delivered by Yoo Capital and Deutsche Finance International.
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Oxford Properties Group and Pioneer Group have launched incubator laboratory space and serviced offices at the art deco Victoria House in Bloomsbury Square, London, with 14 firms already moved in.
It is the latest planned phase of the transformation of Victoria House into a sciences hub. The entire project is due to complete in the fourth quarter, with a total of 220K SF of Grade A wet lab-enabled life sciences space. The project includes approximately 91K SF of speculative turnkey labs, 70% of which will be delivered this summer.
Five initial incubator occupiers have already moved into the building’s 24K SF seventh floor, with the sixth due to move in during July.
Victoria House is the first building of its kind to have serviced offices and coworking spaces dedicated to life sciences occupiers, according to Oxford Properties Group and Pioneer Group.
PLANNING
Regal JP North Finchley has secured planning consent from the London Borough of Barnet for the redevelopment of Lodge Lane car park, which will be transformed as part of the North Finchley Town Centre revitalisation project.
The development will include 98 apartments, offering a mix of one-, two- and three-bedroom homes. Of these, circa 10% will be wheelchair-accessible, and the site will include nearly 30,500 SF of commercial space, including a restaurant, cinema and bowling alley. A new public square for events, leisure and socialising will also be created.
