What was The Buzz in August?
Our monthly roundup of real estate industry news.
Here are a few of the stories that caught our attention in August. With a number of new schemes and developments being given the green light, it’s all systems go in the commercial real estate industry.
Marks & Spencer to invest £340m in automated food distribution hub
UK supermarket Marks & Spencer (M&S) has announced a £340m investment in a new automated food distribution centre, as the retailer pushes ahead with plans to double the size of its grocery business.
The 1.3mn sq ft site, to be built at the Daventry International Rail Freight Terminal in Northamptonshire, is due to open in 2029.
It will act as a national distribution centre (NDC) for M&S Food, incorporating advanced automation to speed up restocking, improve product availability and reduce long-term costs.
Alex Freudmann, managing director of M&S Food, said the project was “central” to the company’s ambition to become a weekly shopping destination.
“This investment will boost capacity for future growth, lower our cost to serve over the long-term, and improve product availability – ensuring customers find the right products in the right place at the right time,” he said.
The retailer said the construction phase would create more than 2,000 jobs, with 1,000 permanent roles once the facility becomes operational.
British Land and GIC secure £450m green loan for 1 Broadgate
British Land and GIC’s Broadgate joint venture has secured a £450 million five-year Green Loan for 1 Broadgate, following the development’s practical completion in July. The landmark building is already 96% pre-let, with major tenants including A&O Shearman and JLL.
The 545,000 sq ft scheme delivers some of the most sustainable mixed-use space in London, combining best-in-class workspace with roof terraces, alongside prime retail and leisure accommodation. Positioned at the heart of the City of London, adjacent to Liverpool Street Station and the Elizabeth Line, the building forms a key part of the wider Broadgate campus.
British Land has emphasised the building’s strong sustainability credentials, with 1 Broadgate ranking among the most operationally energy-efficient offices it has ever developed. The new financing, secured at competitive market spreads, further diversifies the group’s funding sources and is set to reduce Group Net Debt to EBITDA by around 0.6x once proceeds are distributed.
PATRIZIA and Fabrix Launch £100m Joint Venture to Deliver Affordable and Sustainable Housing in London
PATRIZIA, a leading partner for global real assets, and real estate developer Fabrix have launched a new joint venture in London called Sustainable Communities London (SC London). With more than £100 million allocated, the venture will focus on delivering affordable, sustainable, and alternative forms of residential housing, including purpose-built student accommodation.
The partnership aims to tackle London’s acute housing crisis by repurposing underutilised urban land and buildings to create much-needed homes for families, students, and young professionals. An initial equity commitment of £45 million has been made under the management of PATRIZIA, while Fabrix will act as development partner.
SC London’s first project is already underway at 182-202 Walworth Road in Elephant & Castle, where a redundant 1980s office building is being transformed into a mixed-use, student accommodation-led and community-focused development. Once complete, the scheme will provide 23 affordable homes at social rent, representing 35 percent of the residential provision, alongside 283 student beds.
US group agrees $2.7bn deal to acquire Soho House
The members’ club chain Soho House has agreed a $2.7bn (£2bn) deal to take it private after a tricky four years listed on the New York stock exchange.
New York-based MCR Hotels will lead new equity investors in the chain of clubs as part of a deal that will involve it ditching its stock market listing.
Actor turned startup investor Ashton Kutcher – who is thought to have been a longstanding member – will also join Soho House’s board of directors, while the MCR chief executive, Tyler Morse, will be vice-chair.
Soho House was founded in 1995 with a single club in the central London area from which it takes its name. It was founded by the restaurateur Nick Jones, who has a 5% stake, although the biggest investor is the US retail billionaire Ron Burkle, who holds 40% of the company. Richard Caring, the owner of the Ivy restaurant chain, has a 21% stake. All three will retain their stakes, as will the US investment bank Goldman Sachs, which has 8%.
Take-up of UK office space hits three-year high
Take-up of UK office space hit its highest level for three years in the 12 months to the end of Q2 2025, according to new research from CBRE.
In the period, take-up reached 20.3m – the highest rolling 12-month level since Q3 2022, which saw take-up of 20.6m sq ft.
Activity was split between Central London (11.8m sq ft), the South East (2.4m sq ft) and the UK regions (6.5m sq ft). In Central London, five deals of more than 100,000 sq ft completed in Q2 2025 – the highest number of transactions of this scale in a quarter since Q3 2018.
Availability across the UK’s regional markets decreased by 3% in Q2 to stand at 20.7m sq ft at the end of the quarter. However, the supply of new stock remained constrained, representing less than a quarter of available space (23%).
At a sector level, tech, media and telecoms (TMT) accounted for more than a quarter (27%) of total UK office take-up during H1 2025 – a larger proportion of take-up than any H1 period over the past 10 years.
