MORNING NEWS: Development and investment confidence builds

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the day ahead. Giant plans went in for the redevelopment of Bishops Square and Spitalfields Markets, EC1, yesterday as confidence continues to grow in the UK commercial property market. JP Morgan Global Alternatives reckons its project is one of the largest retention and extension schemes in Europe. The investor plans to retain about 70% of the existing office building and extend it to provide 870,000 sq ft of office and retail space. The plans for a huge delivery of grade-A, sustainable office space come as Avison Young reports a drop in vacancy rates in central London as they nudge back towards the 10-year average of 7%. Derwent chief executive Paul Williams was equally confident about delivering more office space to the London market when he spoke to EG following the firm’s half year results yesterday.  “Active demand is so strong at 11m sq ft against a five-year average of 7m sq ft. And under offer is still higher than the long-term average at 4m sq ft,” he said.  Derwent already has more than 1m sq ft of development in its mid- and long-term pipeline, but Williams is determined to buy at least one decent-sized building before the year is out that it can “turn into a silk purse”. Also looking to do more deals is Assura boss Jonathan Murphy, who fresh from splashing £500m on a portfolio of private hotels, tells EG about his ambitious plans for the business. The acquisition will help Assura diversify into new sectors at scale, said the group. Murphy said Assura would explore opportunities across several new markets, including mental health and the Irish market, as well as working directly with the NHS and Universities Superannuation Scheme. “We’re very explicit about wanting to grow across all of those markets, as well as primary care,” he told EG. “With a new Labour government wanting to focus on care in the community and do more treatment outside of hospitals, if some of the funding is made available to support new-builds and the development of new facilities, then it’s a really exciting place, to be across all of those markets.” Elsewhere in the world of real estate, managed office provider Kitt has secured health app unicorn Flo Health in its space in St Katharine’s Dock. The tech firm has signed for a new HQ at International House, E1.  In Wolverhampton, the developers that have taken on the 100-year-old former Beatties store redevelopment have been forced to go back to planning to make plans to deliver a 300-home scheme more viable.  And landlords to Revolution Bars might not be feeling quite as cheery as the rest of the real estate sector, with around 35 properties closing and rents being reduced across some of the 65 that will remain in the bar operator’s portfolio following the sign off of its restructuring plan. Explore all the news from EG, plus a selection of headlines from the nationals: Revolution’s rent reduction and restructure signed offCompletions fall in ‘challenging’ year for BellwayKitt finds its Flo at St Katharine DocksFresh plans in for Wolverhampton’s BeattiesNew tenant bounces into vacant Watford John LewisMorgan Capital managing partner passesUxbridge Plaza turnaround given green lightClarion’s office-to-resi scheme in Dorking gets thumbs upPPR bags £55m Thames riverfront redevelopment opportunityAssura’s Murphy on buying at the right time in the cycleDerwent on the hunt for at least one big buy‘Eco hometel’ brand expands in the NorthEvolve Estates signs two new tenants for Grosvenor CentreFisher German relocates London officeCatella’s Mander Centre scores with Superbowl UKModa gets permission for 462-home Brum schemeGet Living appoints agents for Elephant & Castle schemeOffice vacancy rates in central London near 10-year averageJP Morgan embarks on one of City’s largest office revampsMorgan Sindall beats forecasts as market conditions easePersimmon revenue rises but profit fallsIRES plans asset sales in bid to stem lossesIndustrial rental growth aids trading at CustodianHome REIT loses another tenantBarratt’s Redrow takeover hangs on the fate of a handful of homes (£)Landlords sales rise amid fears over CGT (£)Inside the government’s Great British Property Sell-Off (£)