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.

Cheyne Capital has provided a £121M senior development loan to finance the refurbishment of 1 Poultry, a 230K SF, Grade II-listed office at Bank Junction.

The financing will support the next phase of 1 Poultry’s transformation for IGIS Asset Management, South Korea’s largest real estate manager. Approved by the City of London Corporation in March, the plans will modernise and decarbonise the building, the company said.

The refurbishment is targeting an 80% reduction in operational energy use intensity, alongside an A energy performance certificate and BREEAM Outstanding ratings. JLL advised on the financing transaction.

The development team, co-led by Ben Cross and Basil Demeroutis, is acting as asset and development manager.

DEALS

Realty Income Corporation and KKR have formed a new euro-denominated joint venture for a portfolio of existing European assets contributed by Realty Income, spanning four markets and a broad mix of industries and tenants.

Capital accounts advised by KKR will make an initial investment of €528M to acquire a 49% equity interest in the joint venture, with Realty Income retaining 51% and continuing to manage the portfolio through its European operating platform, the companies said.

The transaction is expected to close on 30 September, subject to customary closing conditions, and will include assets in Ireland, Spain, Poland and the Netherlands.

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Fiera Real Estate UK and Wrenbridge have completed the sale of Air Heathrow to Tritax London Logistics Fund for £77M. The scheme was funded through the Fiera Real Estate Logistics Development Fund.

Air Heathrow is the first disposal from the FRELD pipeline, with Fiera having delivered 13.75M SF in the UK over the past five years and Wrenbridge's portfolio covering 30 logistics schemes and £2B of gross development value.

Air Heathrow is a 16.6-acre, 162K SF Grade A logistics scheme south of Heathrow Airport, comprising four units let to occupiers including global freight forwarder AIT Worldwide Logistics.

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Clearbell Property Partners III has agreed the sale of Octagon Retail Park in Stoke-on-Trent to UK real estate investment firm Melford Capital for £22.5M.

The circa 138K SF retail park comprises nine stores and is fully let to a mix of retailers including DFS, Sofology, Oak Furnitureland, Wren Kitchens, NCF and Grosvenor Casino.

Clearbell acquired Octagon in 2018 and has since undertaken a programme of asset management focused on strengthening the park’s income and profit and creating long-term value.

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London-based real estate investment and development company SENG has acquired the mixed-use 26-28 Hammersmith Grove with the support of an £18.2M acquisition facility from specialist lender ASK Partners.

The 2.3-acre site comprises approximately 200K SF of office, retail and leisure space over two wings and a link block, plus car parking, and has been acquired by SENG as part of its living sector strategy.

ASK has previously provided acquisition finance to the business on other transactions in London.

FOR SALE

The student property team of Knight Frank has been appointed by Nixon Property to market St Luke's Court & Quad, a fully consented part-PBSA, part-coliving development opportunity on Heavitree Road, Exeter, totalling 813 studios.

Situated on a brownfield site opposite the University of Exeter's St Luke's Campus and adjacent to the Heavitree Royal Devon and Exeter Hospital, the proposed scheme has a gross development value of £145M, according to the agent, and comprises seven blocks ranging from five to six storeys that, once built, will deliver 399 purpose-built student accommodation and 414 coliving studios.

The freehold opportunity is being offered on a flexible basis, with proposals invited for an outright acquisition, joint venture or the purchase of either element independently.

FINANCE
M&G has issued its first €500M green bond from its €5.4B M&G European Property Fund, providing additional capacity for investment, acquisitions and refinancing. The fund has €2.4B of assets eligible under its Green Finance Framework.

The fund is M&G’s flagship Continental European core diversified real estate strategy, investing across the office, logistics, retail and living sectors across 12 European markets.

The green bond attracted strong demand from a broad international investor base, M&G said, with peak orders exceeding €2.1B from more than 120 investors. At final pricing, the issuance was 2.8 times oversubscribed, enabling the fund to secure five-year financing terms at a margin of 100 basis points, M&G added.

Proceeds from the green bond will be used to fund new investment and eligible green projects. The fund has committed to more than €1B of acquisitions across 11 transactions over the past 12 months, largely in the logistics and living sectors.

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FRP Real Estate Advisory has completed a £10M term loan to refinance a portfolio of three Grade II-listed townhouse hotels in Argyle Square, Bloomsbury. The facility replaces an existing capex loan on the properties, which have undergone refurbishment into a boutique, affordable-luxury hospitality offering.

Structured at a 65% loan-to-value ratio over a five-year term, the facility was secured to see the portfolio through its short-term stabilisation period.

LEASING
Aviva Investors has completed two lettings at 101 Moorgate in the City of London, with Nordea Bank and Virtus Data Centres, the UK's largest data centre provider, each set to occupy nearly 9K SF at the development.

The lettings with Nordea and Virtus come after Aviva Investors completed a 33K SF leasing agreement at 101 Moorgate in December with ABN AMRO, one of the largest Dutch banking and financial services companies, to occupy the top four floors. The building is now approximately 90% let, with one office floor remaining.

101 Moorgate is a joint venture between Aviva Investors and Allianz, whose participation is managed by Pimco Prime Real Estate.