EG’s must reads: 12-16 August

Here’s a wrap-up of some of the top stories on EG from the past week.

There was no summer slowdown in sight in the West End this week as a flurry of investment deals completed, led by Chinese Estates Group’s sale of 14 St George Street, W1, to Oval Real Estate for £125.4m. The sale came as the Hong Kong-listed firm announced a big swing into the red. It is understood to be eyeing a number of other sales, including of 120 Fleet Street, EC4.

Other notable sales in W1 include that of 291 Oxford Street and 2 Harewood Place, also put up for sale by a Hong Kong investor. The 26,000 sq ft block is one of three assets being sold by Lai Wing through JLL. JP Morgan has bought this block, paying £71m – a 5.75% yield. It was advised by Hanover Green.

And while Derwent London is on the hunt for a big buy, it has offloaded a smaller building in its estate to a private family office. The firm has sold the 11,000 sq ft Asta House in Fitzrovia for £8.8m – a 7% yield. Tuatara and Kontor advised.
Chinese Estates offloads Mayfair block
JP Morgan completes Oxford Street buy
Derwent sells Asta House in Fitzrovia

More than a year after acquiring troubled investment bank Credit Suisse, Swiss bank UBS has decided to liquidate its $2bn (£1.5bn) international real estate fund. The fund is more than 80% weighted towards offices, with a heavy geographical focus on the US, so no major surprises why it wants out. Investors have been seeking redemptions since 2023, but instead of a fire sale of assets at an “inopportune” time, UBS has decided to liquidate.
UBS to liquidate $2bn real estate fund

The acquisitive bunch over at US-based investor Realty Income have flexed their chequebook to edge ahead in the race to buy a 200,000 sq ft retail and leisure park investment in Braintree, Essex. The park is up for sale for around £58m and the investor is said to have knocked British Land, Landsec and Mike Ashley’s Frasers out of the running.
Realty Income leads battle for Essex retail park

Cheyne Capital and Fusion Group have headed back to Brent Cross Town for another investment in the Related Argent scheme. The pair have bought a second site for a £275m student accommodation scheme within the 180-acre, £8bn development project. Fusion and Cheyne bought their first purpose-built student accommodation plot at the site in June 2022. The 662-bed scheme is expected to compete in Q2 next year.
Cheyne and Fusion acquire second Brent Cross Town site

Finding the right balance between delivering homes and infrastructure and the commercial development that often pays for it is being played out in Oxfordshire at the moment. Oxford City Council last month announced plans to increase community infrastructure levy payments on R&D development fivefold, and this week Cherwell District Council has announced a CIL on industrial development. Spoiler alert, but developers aren’t happy about it and say it could threaten the growth of the region by making many schemes unviable.
CIL rises put Oxfordshire development ambitions at risk

And the biggest story of the week? Blackstone’s sale of a 3,000-home portfolio from its Sage Homes business to a new USS-backed social housing provider. USS paid more than £400m for the portfolio to seed its new business, Sparrow Shared Ownership.
Blackstone sells 3,000-home portfolio to USS