Strong Q4 for Shoosmiths’ real estate investment group

Shoosmiths’ real estate investment group recorded a strong finish to 2023, advising on c.£200m worth of transactions during Q4 - taking it to more than £1.2bn in deals for the year.

Transactions were completed across various asset classes, including life sciences, offices, industrials and data centres. One of the group’s most active sectors was retail, where it advised on a number of deals, including the acquisition of Gracechurch Shopping Centre.

Shoosmiths acted for SAV Group and BPG on the purchase of the 1m sq ft Gracechurch Shopping Centre in Sutton Coldfield from M&G, with the deal completing in November. Heading the deal team was partner Tim Flight, with support from Jason Jackson and Kate McCall, alongside James Frost, Laurence Matthews, Sophie Warren, and Stacey Walkley.

In the office market, Shoosmiths’ partners Matthew Kemp and Matthew Kenwood supported Feldberg Capital’s purchase of 8 Bloomsbury Street in London WC1. This transaction marks the first to complete under Feldberg’s new ReForm brown-to-green workplace fund.

Also in London, Shoosmiths acted for City & Provincial Properties on its sale of 22-23 Tileyard Road in Kings Cross. The building was purchased by Kadans Science Partner, which will now bring it forward as purpose built, high-quality laboratory accommodation.

Other sales completed by the firm’s real estate investment group in Q4 include advising TT Group on its disposal of Apex Point. The 48,820 sq ft industrial estate - located in Hatfield -was acquired by a US private equity real estate investment firm for in excess of £9m. Acting on the deal was partner Liam Phillips, with support from Dan Stamford and Natasha Shields.

Shoosmiths also facilitated more than £13m worth of disposals for Workspace Group, including the sale of the 44,341 sq ft Three Acre Industrial Estate, located in Folkestone. 

These latest transactions form part of Workspace’s strategy following its acquisition of McKay Securities in May 2022. Shoosmiths has supported a number of deals throughout 2023, including the £82m sale of five properties in the south east of England in June. The firm also advised Workspace on entering into a Corporate Power Purchase Agreement with Statkraft - securing two thirds of its expected electricity demand for the next 10 years.

Nathan Rees, partner and co-head of Shoosmiths’ real estate investment group, said:

“2023 was a tricky year for the UK’s commercial real estate sector. Tight borrowing conditions alongside an uncertain political and economic landscape were stumbling blocks for deals – adding further complexity when matching sellers’ and buyers’ expectations.

“However, the market did show its resilience and long-term appeal to domestic and international investors. The life sciences and flexible office sectors, in particular, showed strong growth potential – driven by a shortage of space and evolving occupier demands.

“This latest quarter also saw our team complete landmark deals in the retail sector, with investors seeing past current hurdles and identifying the potential in assets. This reflects our experience throughout the past 12 months, namely that where sellers and buyers are aligned, there are deals to be done, notwithstanding the market challenges being faced.”

Kate McCall, partner and co-head of Shoosmiths’ real estate investment group, added:

“Despite 2023 being a more subdued market for dealmaking, Shoosmiths’ real estate investment group has worked on a range of key transactions spanning prime offices, industrials, a £305m car park portfolio, as well as major retail centres.

“Closing the year advising on £1.2bn worth of transactions is testament to the team’s perseverance, commerciality and ability to focus on what truly matters for clients. 2024 will no doubt pose challenges, but the fundamentals of the UK’s commercial real estate market are strong and we’re looking forward to helping clients navigate transactions successfully.”