Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of real estate-relevant headlines from the nationals and weekend papers.
AXA IM Alts’ global head of logistics, Thomas Karmann, says the firm is preparing for a “second edition of the development wave” it carried out in the UK with its Baytree Logistics Properties platform.
In an interview with EG’s Pui-Guan Man, Karmann described the UK as “one of the tier-one countries” for its open-ended European logistics fund, with a focus on acquiring sites for speculative development.
Through Baytree, AXA IM Alts is bidding on “several” land plots in the UK, with two at investment committee stage. “We see really good opportunities there,” says Karmann, adding that sites are coming to market at “much more reasonable rates” than two years ago, in some cases 40-50% lower.
“I wouldn’t say they are distressed sales, like we had in 2009,” he adds. “Nevertheless, there are developers who are not able to develop their projects and need liquidity. There are also deals that were under offer that have fallen apart because the previous tender winner didn’t get financing or hasn’t got the cash or the courage to launch their programmes.”
Also eyeing activity in the sheds space is FHP co-founder and director John Proctor, EG’s dealmaker of the month. But not for all sizes of asset.
“Where we are seeing more hesitation than we would like – if I’m brutally honest and if we’re all honest – is in the size range 100,000-350,000 sq ft,” he tells EG’s Jim Larkin. “We saw the funding being introduced regularly on a speculative basis, so we probably have a few too many units in this size range empty rather than full and we are chasing the market a little bit in that area.”
But activity is hotting up in the smaller end of the market since the start of the year. Within Proctor’s East Midlands patch he reports strong demand for units up to 50,000 sq ft, with a number in the process of going under offer, while demand is also apparent in the 50,000-100,000 sq ft range.
Welput believes office occupiers too will prove keener to snap up smaller spaces, prioritising smaller floor plates in its reworked plans for Bury House in the Square Mile. This is the tower knocked back in 2022 over fears that it would overshadow a neighbouring synagogue. With a scaled back proposal for the scheme, Welput will be praying for a better outcome this time around.
And on the stock exchange this morning, British Land has confirmed last week’s scoop from EG’s Evelina Grecenko about a joint venture with Royal London Asset Management to deliver its 1 Triton Square scheme.
All the news from EG, plus a selection of headlines from the nationals:
AXA IM Alts logistics boss targets UK expansion
Leaner and greener: a new chapter for logistics leasing
Shadow housing minister calls for ‘bold evolution’ of planning system
Major resi development plans hit fresh low in London
British Land confirms 1 Triton Square stake sale
Urban Logistics pitches alternative Abrdn takeover
M&G invests £30m into sustainable housebuilder Greencore
Welput tries again with City of London office tower plans
Saudi Arabia and Gucci owner circle Selfridges (£)
Our critics don’t understand us, says Soho House boss (£)
Inflation forecast to have hit two-year low (£)
Bank of England set to hold interest rates as it awaits more signs on inflation (£)
Hopes build for spring revival in housing market (£)
Activist Bluebell tells Blackrock to rethink ESG (£)
Knoops hot chocolate brand plans rapid expansion (£)
What is causing the growing divide in the US property market? (£)
Chinese industrial activity expands as real estate extends slowdown (£)
Bidders circle ‘Elvis airport’ a decade after the SNP bought it for £1 (£)
Send feedback to Tim Burke
Follow Estates Gazette
