This Week's London Deal Sheet: Delancey And Aware Super's £170M Buy In Hanover Square
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.
Aviva Investors and the Public Sector Pension Investment Board, one of Canada's largest pension investors, have completed the sale of 11-12 Hanover Square in London’s West End to a joint venture between Delancey and Aware Super for £170M.
The sale marks the conclusion of a joint investment strategy and business plan by Aviva Investors and PSP Investments. Delancey and Aware have a joint venture to buy central London offices.
Developed by Aviva Investors in 2017, 11-12 Hanover Square is a prime West End development with nearly 35K SF of offices and 13K SF of flagship retail facing Oxford Street. The redeveloped asset was let to tenants including Summit Partners, Pollen Street Capital and New Balance.
“Its sale will enable us to redeploy capital into key conviction sectors, including prime London offices and our growing development pipeline, through to UK single-family housing and urban warehousing,” Aviva Investors Head of Central London Ed Atterwill said in a statement.
DEALS
Crosstree Real Estate Partners has acquired London-focused serviced office business Argyll from Alpine Grove Partners and The Baupost Group for £330M.
Argyll operates a portfolio of 25 assets in prime office locations across London, including a mix of listed buildings and modern office buildings. Argyll owns 10 of its assets outright, primarily located in the West End and City core.
Crosstree was advised by JLL, and Alpine and Baupost were advised by Eastdil Secured and Evercore.
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Newcore Capital has sold two industrial outdoor storage assets in London for a total of £22M. The disposals have been made on behalf of Newcore Strategic Situations IV, the fourth fund in the manager’s value-add series.
One of the sales was an 11.5-acre asset in Ickenham that Newcore sold for £10M after initially acquiring the site in August 2021 as a disused former R&D facility. Newcore subsequently redeveloped it as four self-contained yards and an office space. The other disposal was an 8-acre asset in Harefield that Newcore sold for £12M after acquiring the site in February 2021 as an existing industrial facility.
NSS IV is fully committed, having reached a final close in 2019 at £100M. To date, NSS IV has realised £45.5M of assets.
LEASING
Arden University has signed for 94K SF at the Turing Building in Stratford Cross, the first building completed by Lendlease and CPP Investments as part of their joint venture in the area.
This cluster that already includes UCL East and UAL and The Turing Building was designed with consent for both office and educational use, alongside amenities such as an event space, Everyman Cinema and a café.
The building has also targeted BREEAM Outstanding, an A energy performance certificate and WiredScore Platinum.
DEVELOPMENT
On behalf of FRP Advisory Trading as the joint administrator of Future High Street Living (Digbeth) Ltd and Future High Street Living (Talbots) Ltd, Knight Frank has launched two new development opportunities in Birmingham city centre.
With a potential combined gross development value of approximately £235M, according to Knight Frank, the two sites are located in Digbeth and Gun Quarter, with planning consent for 484 and 364 residential apartments, respectively.
FINANCE
Bruntwood has announced the extension of its loan facility that will see its £240M workspace portfolio funded by a sustainability-linked loan. The firm’s existing £50M club bank facility, from a consortium of HSBC UK, NatWest, Santander and Barclays, increased to £140M and was extended by a further 12 months to early 2028.
The terms of the sustainability-linked loan align with Bruntwood’s environmental, social and governance commitments, including carbon intensity reduction, an increase in renewable electricity procurement and an increase in smart energy metering, the company said.
The facility covers Bruntwood’s £240M workspace portfolio located across Manchester city centre, Greater Manchester, Cheshire, Leeds and Liverpool.
PEOPLE
P-Three has appointed Julia Wilkinson as restaurant and placemaking consultant. Wilkinson joins from Shaftesbury and Shaftesbury Capital, where she led in the restaurant and hospitality sector.
Wilkinson will lead a new consultancy service line for P-Three, specifically leasing strategies for London estates, mixed-use assets and prime locations.
At Shaftesbury, she oversaw areas such as Carnaby, Covent Garden, Chinatown and Soho and the transformation of areas such as Kingly Court, Chinatown, Seven Dials and Fitzrovia.
