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.
Patron Capital has provided a £163M loan to SevenCitiesLdn to finance its £211M acquisition and refurbishment of 123 Victoria Street.
The £163M senior whole loan comprises £148M for the acquisition and a further £15M for refurbishment, representing 70% loan-to-cost and 59% of projected value. The four-year facility is secured against the 244K SF freehold office and retail building, which is fully occupied.
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SevenCitiesLdn said it plans to begin a refurbishment programme in January 2027, upgrading the reception, communal areas and end-of-trip facilities, while adding a business lounge and terrace.
The deal takes lending from Patron's specialist real estate credit vehicle, established in 2025, to £270M. Previous transactions include an £87M refurbishment loan secured against a City of London office building and a £20M loan against a UK residential portfolio.
"Patron Credit aims to lend on assets like 123 Victoria Street, well-located in markets with favourable demand dynamics, and a clear path to creating secure income for the long term," Patron Capital partner Henry Randolph said in a statement.
DEALS
Zedwell Hotels has acquired New London House on Fenchurch Street, with plans to convert the City building into a 509-room hotel.
The property is next to Fenchurch Street station, and the conversion will use Zedwell's retrofit-first approach, retaining the existing structure. The acquisition is part of the wider expansion strategy of Criterion Capital, which is growing its Zedwell brand across London and other UK cities.
"Transforming New London House into a 509-room Zedwell hotel demonstrates that ambitious hospitality growth and environmental responsibility can go hand in hand," Criterion Capital CEO Vaqas Farooq said in a statement.
DEVELOPMENT
Get Living has officially opened The Elephant, its £500M town centre development in Elephant and Castle, bringing 135K SF of retail, dining and leisure space to the south London neighbourhood.
Of the 116,500 SF of commercial space available at launch, 93% is already let or under offer, and initial occupiers include M&S Food, Mango, Oliver Bonas, Søstrene Grene, Superdrug, Blank Street, Starbucks and Pret A Manger.
The wider development includes Elephant Quarter, a 485-home build-to-rent scheme offering market and affordable accommodation, alongside 50K SF of workspace and new public spaces, including a town square named after Dr Cecil Belfield Clarke.
Further elements are due to follow, including a campus for the University of the Arts London's London College of Communication in 2027 and an improved Northern Line ticket hall entrance in 2030.
FINANCE
Deutsche Asset Management has secured €120M (£99M) in commitments at the anchor closing of its European Property Debt Fund II, attracting backing from several institutional investors, primarily in Germany.
The fund will target a diversified portfolio of European real estate debt, with a focus on whole loans of between €25M and €75M, and will invest primarily in the UK, Germany, France, Spain, the Nordics and Benelux.
Target sectors include logistics, residential, student housing and prime offices, with an unleveraged strategy targeting annual cash distributions of 5% to 7% and a net IRR of 6% to 7%.
The fund is the second in the European Property Debt Fund series.
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Edinburgh-based Rankeilour Properties has raised more than £20M from high net worth individuals and family offices for its UK Warehouse Fund, giving it approximately £40M of investment capacity after leverage.
The fund will target single-let and multi-let industrial and retail warehouse properties across Scotland and northern England, with individual lot sizes of between £1M and £6M and stabilised yields of more than 7%.
It has already acquired its first property, a warehouse in Cumbernauld, for £5.45M, reflecting a 7.5% net initial yield. Two further acquisitions are expected to complete imminently, which would take the fund to around 30% invested. The fund aims to deploy the remaining capital next year.
PLANNING
Developer Hub has secured planning approval from Hackney Council for the redevelopment of Finsgate House on Cranwood Street, close to Old Street station.
The scheme will replace three outdated office buildings with 490 coliving homes, approximately 43K SF of Grade A workspace, a community hub and an improved public realm. Designed by AHMM, the development will comprise two buildings of 35 and five storeys. The workspace will include 10% affordable space for small and medium-sized businesses.
LEASING
NewRiver has signed a 20-year lease with Gravity Max for an 85K SF entertainment venue at The Capitol Centre in Cardiff, as it pushes ahead with a £12M repositioning of the city centre asset.
The venue will be the fifth Gravity Max location and its first in Wales, with attractions including electric go-karting, bowling, escape rooms, virtual reality, street golf, arcade games and a sports bar.
Gravity Max will pay a base rent of £870K a year, subject to five yearly index-linked reviews, alongside turnover-related rent. NewRiver estimates the combined income will deliver an 11% yield on cost, and it is expected to open in early 2027.
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Biotechnology company Moderna is to relocate its UK commercial headquarters to Reef + Partners and BlackRock Real Estate's Tribeca development in King's Cross.
The company has agreed to occupy 4,200 SF at The Reflector building, with the space to be delivered fully fitted and tailored to its requirements, and fit-out works are expected to finish by the end of April 2027.
Tribeca is being delivered in two phases. The first, The Apex, provides more than 110K SF of laboratory space, with the London BioScience Innovation Centre occupying 33K SF and the Francis Crick Institute collaborating on 52K SF.
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