MORNING NEWS: Steady not steep – CBRE on a capital markets recovery

Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of real estate-relevant headlines from the national papers. What will the recovery in real estate capital markets activity look like? Steady not steep, according to the chief executive of CBRE. Not that Bob Sulentic is sweating it. On an earnings call with analysts to discuss the agency’s third-quarter results yesterday, Sulentic said that although his team shares the market’s “enthusiasm” for a rebound over the coming years, capital markets’ “lower relative contribution to our performance underscores the extent to which we have evolved and diversified CBRE’s business and underpins our confidence in our strong long-term outlook”. Group-wide, CBRE delivered its second-highest Q3 earnings on record, with all business lines posting double-digit growth. Chief financial officer Emma Giamartino said the firm has “greater earnings growth potential than at any point in our history”. Australian super fund Aware Super has teamed up with Delancey to invest £1bn in what they call central London’s “weakened” office market. The pair will acquire stabilised assets, fund development and recapitalise existing projects, with single-asset, portfolio and corporate acquisitions all considered. And once they have made a mark in the capital’s office market, they are “open to exploring” retail, logistics and mixed-use projects. Developer Hub is lining up a big-name finance partner for the largest student accommodation project Edinburgh has ever seen. The company is in talks with Lloyds-backed equity investor Housing Growth Partnership to back the £120m, 632-bed Shore Station in Leith. Hub is also working with Redical Holdings on proposals for a 1,000-home regeneration scheme in parts of the Liberty Shopping Centre in Romford. Robert Sloss, chief executive at Hub, tells EG: “The retail will become more valuable if you improve the overall estate – if you have 2,000-2,500 people living in the whole development. In that circumstance we are adding to the site, we are taking away what doesn’t work and adding to the value of the asset.” Visa is close to making a decision on its new European headquarters, shifting its base from British Land’s 1 Sheldon Square in Paddington, W2. The FTSE 100 REIT has a good shot at keeping hold of its big-name tenant; one of Visa’s top picks is British Land’s 1 Appold Street on its Broadgate campus, EC2. But also in the running is One Exchange Square, which is being delivered by LaSalle Investment Management on behalf of Malaysian investor Permodalan Nasional Berhad – also on the Broadgate campus. There’s also news on a Leeds police station redevelopment that planning officials say should be free to go; Edinburgh’s Johnnie Walker building hitting the market; and plenty more stories from EG’s new ESG supplement. All of the news from EG, plus a selection of headlines from the nationals:CBRE chief says firm has ‘evolved’ beyond capital marketsAware Super and Delancey team up for £1bn London offices pushHub in talks with Housing Growth Partnership for £120m Scottish PBSA schemeVisa narrows search for new London HQRomford shopping malls lined up for residential makeoverClass in session: lessons for the UK PBSA sectorUKREiiF venue on the block as landlord sells upLaw firm searches for new London baseL&G invests £154m in US multifamily build-to-rentThe great diversification in later living is under wayPlans for Station Quarter at Barking Riverside set in motionHenderson Park secures £275m to revamp Edinburgh and Dublin hotelsPersimmon names new UK MDArrested development: stalled police station scheme set to go aheadDunelm eyes 10 central London sitesCBRE lifts 2024 outlook after Q3 double-digit growthLendlease cleared for Stratford schemeTasty offers invited for Johnnie Walker’s Edinburgh homePiecing together the ESG development puzzleAssociated British Ports picks agent for 8,600-acre portfolioUK Net Zero Carbon Buildings Standard pilot is a blueprint for changeCPPIB teams up with Kennedy Wilson for £1bn single-family housing jvHow integrating ESG can deliver a competitive edgeBeds and bass: Scottish Opera proposals sail though planningBiodiversity net gain: can it begin to repair the damage?‘This is our call to arms’ – understanding the new net zero standardBritish retailer Dunelm sales rise in first quarter on higher volumeJohn Lewis optimistic on Christmas trading outlookUK consumer and business confidence weaken ahead of Budget (£)