MORNING NEWS: Patron buys back into Cala Homes

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. Keith Breslauer’s Patron Capital has bought back into the housebuilding business it sold six years ago, agreeing a £1.3bn deal with L&G to buy Cala Homes. Patron, with Sixth Street Partners, this morning was confirmed as winner in the race to buy the business. It saw off competition for the housebuilder from Persimmon. Breslauer said he was pleased to be able to back the Cala business once again.  While Patron splashes the cash on Cala, Supermarket REIT is also readying its funds for potential acquisitions. After announcing a positive set of results this morning, with rents up by 12% and the value of its portfolio up by 5%, the group said it had the balance sheet capacity to take advantage of opportunities as they arise. Chair Nick Hewson said: “The company’s operational performance has been resilient, with 100% occupancy and 100% rent collection despite the broader market and macro-economic challenges of the past years.  “We have a balance sheet and asset portfolio which will enable us to deliver sustainable, long-term, earnings growth even at these new ‘normal’ interest rate levels. I am hopeful that as the equity markets refocus on the attractiveness of real estate, the quality of our assets and the secure nature of our growing income stream will once again be recognised.”  He added: “In the meantime, due to our sector specialism, we continue to be able to selectively add attractive assets to our portfolio to grow earnings and ultimately dividend. Due to the prudent steps taken to run lower leverage throughout 2023, the company has had the balance sheet capacity during 2024 to take advantage as these opportunities arise.” Elsewhere, Watkin Jones is readying to push ahead with the development of more than 1,000 student beds in Belfast after getting the go ahead for its latest project at Titanic Quarter and there may be good news around the corner for commercial landlords struggling with the ticking EPC timebomb. Government sources tell EG that plans are afoot to potentially relax rules around commercial assets needing to hit an EPC B rating by 2030. The rule change would come as a major relief to many landlords grappling with a rule that could see billions of pounds of rental income put at risk. All of the news from EG, plus a selection of headlines from the nationals: Supermarket REIT readies for expansion drivePatron buys back Cala Homes in £1.3bn dealSEGRO prices €500m bondFull steam ahead for Watkin Jones’ Titanic Quarter plansLabour government moots EPC rule relaxationCOMMENT: Does government’s green plan have what it takes?Mulryan’s Rockwell launches new development advisory businessMedical firm agrees deal for major new labMarket Curators wins four new local authority contractsBournemouth Uni finds new home at LakesideCBRE names industrial and logistics sector headCrown Estate hires from InfraRed for new CFOReal estate hires at faster rate than any other sectorPeel flexes MediaCity office with £1.2m revampFiera and Wrenbridge get financing for Hayes logistics schemeZephyr X tables £70m Manchester BTR tower plansHenry Boot boss: Planning delays are a drag on us – and BritainCapital & Centric eyes £60m expansion at Eyewitness WorksWarehouse rents rise thanks to resilient occupier demandLenders chasing deals in final stretch of 2024Target Healthcare says recent deals support valuationsUK economy losing £25bn a year on shrinking workforce (£)Pret a Manger sales rise above £1bn (£)B&Q owner tightens guidance as housing market improves (£)Bosses confident of full return to office working within three years (£)English village become flashpoint for Labour’s data centre push (£)How a cathedral city became the capital of boarded-up Britain (£)