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.
Singapore-listed Elite Commercial REIT is to expand its UK strategy of investing and break into the living sector.
The group, which has a £412m portfolio in the UK comprising government-let assets including a portfolio of Jobcentre Plus centres, said it planned to expand its strategy to all real estate investment, in particular the purpose-built student accommodation sector, senior living and built-to-rent.
Elite said it had been working on ways to future-proof its assets to “unlock the latent value” of its portfolio and that to be able to do this, it needed to expand its existing investment strategy.
While it still intends to focus on investing in the social infrastructure asset sector, it said the expansion of its strategy to “encompass a wider scope of real estate and real estate related assets will enhance the diversification of the portfolio, allowing for latent value to be unlocked and the position Elite REIT for future growth”.
A former county court on London’s South Bank that was placed in the hands of receivers by the Reuben brothers’ Motcomb Estates, has to be put up for sale. That was the conclusion of the SPV that owns the site – a Fabrix-linked company. Recently filed accounts for the SPV say a sale is the only option for the site, where a 430,000 sq ft redevelopment – Roots in the Sky – is planned.
The accounts also show that the property – and the linked 55 Great Suffolk Street – have had their values written down to £56.9m, which covers the value of the loan and interest accrued.
Balanced Commercial Property Trust, for which Columbia Threadneedle is investment manager, has this morning launched a strategic review of the business and invited takeover offers. The FTSE 250 REIT said it had been lessening its exposure to the office sector in favour of industrial, but added that it faced “significant challenges with a difficult near-term economic and property market backdrop in a higher interest rate environment and the current dislocation in capital markets”.
It said: “Despite the manager delivering steady portfolio performance over recent years, and the share price discount having narrowed, the company’s shares continue to trade at a material discount to their net asset value, which the board does not believe reflects the current value of the underlying property assets, nor the longer-term prospects of the portfolio.”
The company’s shares are trading at a discount of roughly 30% to NAV.
Elsewhere, doughtnut retailer Crosstown has appointed advisers to help it find fresh funding so it can expand its footprint globally, GPE has signed luxury retailer Represent for a new flagship store on Wardour Street, W1, while CLS is hoping that it won’t have to be a third time lucky with its disposal of Westminster Tower on the Albert Embankment. The group has agreed a sale to London Square for just over £40m following the collapse of a deal with Third.i last month.
And for a few more reasons to be cheerful this Monday, fresh research from DeVono reveals that HQ moves by big banks and growing demand to set up shop in the Square Mile have taken financial services office leasing deals to a 10-year high.
But if you really want to start your week off well, why not make sure you show off your skills and enter the EG Awards. Entry is free but time is running out. This year we celebrate 20 years of EG Awards and we are committed to showcasing the very best of the UK real estate sector. We know there’s so much to be proud of and celebrate, but you’ve got to be in it to win it. Find out more about how to write the very best submission and all the categories you can enter here.
And, because it’s our 20th anniversary, we’re offering 20% off all table sales until the end of the month. Make sure you’ve got your seat at what we promise will be the best party in UK real estate this year.
All of the news from EG, plus a selection of headlines from the nationals:
BCPT up for sale amid ‘significant challenges’
CLS tries again with £40m Westminster Tower sale
GPE signs luxury retailer for Soho store
Newcastle’s Eldon Square makeover green lit
Eco Buildings appoints Albani as executive vice chair
Financial firms take London office leasing to decade-plus high
Elite REIT plans UK living investment push
Sale only choice for Roots in the Sky, says Fabrix
Crosstown on the hunt for more dough
EU adopts new standard for commercial buildings’ energy performance
Miller Homes acquires 7.3-acre Altrincham site
Former CBRE ratings head launches new consultancy
Should you win an EG Award?
Foxtons hires Rothschild as investors press for a sale (£)
Rent rises have halved since the summer, says Hamptons (£)
Spain supplants UK as top hotel investment destination amid buoyant demand (£)
Treasury urged to reverse end of stamp-duty relief for multiple dwellings (£)
We have a housing disaster. Here’s how to fix it (£)
Former owner of BHS ordered back to jail (£)
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