Defiant dealmaking for Shoosmiths’ real estate investment group in Q2 2023
Despite further tightening in the lending market and wider economy, Shoosmiths’ real estate investment group concluded c.£200m worth of deals in Q2 2023.
The quarter saw the law firm’s investment specialists act on transactions in the office, industrial and logistics sectors, as well as the mixed-use Royal Albert Dock development.
Shoosmiths started the quarter by advising Telereal Trillium on its purchase of Wessex Trade Centre. Shoosmiths partner Liam Phillips led the team supporting the £12.6m acquisition from Bournemouth, Christchurch and Poole Council. The five-acre industrial estate has 33 units and is currently fully let to 29 tenants.
The firm also advised CBRE Investment Management on the real estate aspects of a funding facility to support the acquisition of Liverpool’s Royal Albert Dock.
General Projects and Neo Capital purchased the historic mixed-use site for £40m. The development is home to The Beatles Story attraction and attracts six million visitors a year.
One of the larger deals completing in Q2 saw a team led by Shoosmiths partner Liz McKillop Paley act for Workspace Group on the £82m sale of a portfolio of light industrial and logistics assets that it had acquired as part of the purchase of McKay Securities in 2022.
Also in the industrial sector, the firm acted for property and asset manager, Northwood Urban Logistics, on its acquisition of Bedrock Park, Ferndown Industrial Estate, Wimborne.
After supporting the Bank of London and the Middle East PLC – the largest Islamic bank in Europe – on a £40.6m acquisition in Q1 2023, Shoosmiths closed this latest quarter by advising on its purchase of a landmark Newcastle office building for £18.3m.
Nathan Rees, real estate partner and co-head of Shoosmiths’ investment group, said:
“We are acutely aware of the current challenges in the market and the impact this has on our clients. Appetite remains strong, however, for well-matched assets and buyers.
“Efficient deal execution is vital – ensuring that transactions are concluded as quickly as possible. This is fundamental to the approach that our investment group takes to secure commitment, avoiding delays by preparing for and negotiating transactions with a commercially-minded and collaborative approach.
“Having a specialist team that focuses on the investment market means we can field deal teams with the legal and commercial understanding to navigate issues in the most effective way possible.”
Kate McCall, partner and co-head of Shoosmiths’ investment group, added:
“We’re closing a key quarter for Shoosmiths’ real estate investment group. The team has shown its grit – guiding clients through tough market conditions and assisting major portfolio sales and acquisitions in the office, industrial and logistics sectors during the period.
“Though there has been a tightening, especially in the lending market, there is sustained demand for high-quality assets capable of generating returns. That is why our focus is on overcoming challenges when dealmaking and helping clients to deliver their strategies.”