MORNING NEWS: Forma splashes £100m on Brum office tower

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. Israel-based Forma Real Estate has become the latest investor to show its growing confidence in the UK’s regional office market. The investor is under offer to buy M&G’s Two Snowhill office tower in Birmingham in a circa £100m deal. The 310,000 sq ft building was put up for sale through JLL earlier in the year. It is let to law firm Gowling and HS2 Ltd. The deal comes as figures from Savills show increasing activity in the regional office market. So far this year, more than £2bn has been invested in offices outside of the capital, a 7% increase on 2023. And with a further £542m under offer and £482m launched to market, the agent is confident 2024 will finish comfortably up on 2023 – albeit still some 50% down on the five-year average. Overseas investors are making up the bulk of activity in the regions, accounting for 44% of all transactions signed so far, said Savills. This is forecast to continue to grow, with activity expected to be driven by French funds and Middle Eastern capital. Elsewhere, GPE has actioned its £1.6bn investment plan, buying a 20,000 sq ft flex office in Fitzrovia from British Land. The group has paid £19m for 19-23 Wells Street, W1. The property is run under BL’s Storey brand but will be converted into GPE’s fully managed offering. The building is within walking distance of several of GPE’s other sites, including Wells & More, Elsley House, Kent House and 7-15 Gresse Street, adding to its cluster in Fitzrovia. Student accommodation developer Fusion Group has hired two external advisers, including BlackRock’s former global head of real estate, and promoted two of its existing team. The company has named Marcus Sperber, who was BlackRock’s head of real estate until setting up his own investment and advisory business, NorthCroft Capital, and Nick Doffman, a partner of 30 years at Mishcon de Reya and formerly its head of real estate, as advisers. All of the news from EG, plus a selection of headlines from the nationals: Fusion names ex-Blackrock real estate head as adviserGPE buys Fitzrovia flex office from British LandFoxtons expands empire with double buyInvestor sentiment grows in regional officesBrookfield Properties UK appoints new head of operationsBritish Land secures physical stores for two online retailersCouncil seeks extra cash for masterplan centrepieceLost land faces CPO to unlock housingForma forms deal for Birmingham office towerRockwool spins deal for major Brum manufacturing hubPreferred Homes picks preferred management partnerPlans in for £200m redevelopment of former Hilti HQ in ManchesterAuld alliance strengthens investment into Glasgow office marketNational deals round-upAllsop raises £61.3m at latest auctionHunt for occupiers begins at £100m Glasgow schemeKnight Frank appoints UK head of international capitalData centre investment held up by electricity supply (£)Reeves tipped to deliver double-whammy property hammer-blow in Budget (£)Reuben brothers buy W South Beach in $400m deal (£)GCC investors eye long-term gains through UK real estate regeneration