In a significant development for the UK real estate market, Greycoat Real Estate, under the strategic leadership of key executives including CEO Nick Millican, has established itself as a formidable force in property investment and development through several landmark deals and partnerships in recent months.
The London-based investment and development partner has demonstrated remarkable momentum, completing one of the largest UK office investment deals of 2024 while simultaneously forging a groundbreaking master developer joint venture with Homes England and Oaktree Capital Management.
£250 Million Joint Venture to Transform Housing Development
In December 2024, Greycoat Real Estate joined forces with Oaktree Capital Management and Homes England to launch a £250 million master developer joint venture designed to unlock and accelerate large-scale development sites across England. This public-private partnership will target large or complex sites with the potential to deliver more than 1,000 homes each.
The partnership takes a long-term stewardship approach, putting placemaking at the heart of developments. By acquiring sites to masterplan and develop, the joint venture will carry out necessary infrastructure works to offer ready-to-develop sites to a diverse range of housebuilders.
“Our mandate is to speed up the delivery of new homes by removing the barriers that slow housebuilders down,” explained Jon Kenny, Director at Greycoat. “The bringing together of Oaktree’s institutional capital and Greycoat’s land development expertise made possible through Homes England’s support creates a powerful trinity of capability to unlock the complex challenges that stand in the way of delivering the large schemes necessary to deliver the Government’s housing ambitions.”
This multi-tenure, master developer model aims to increase the pace of delivery while putting social and community values at the heart of successful new places. The partners are currently identifying potential sites and anticipate announcing their first project in spring 2025.
Major Office Investment Deals
Parallel to its housing development initiatives, Greycoat has been on an impressive office acquisition spree across London. Most notably, the firm recently completed the purchase of 90 High Holborn, buying the scheme from LabTech in what market analysts consider one of the largest office investment deals of the year.
While the exact price remains undisclosed, sources close to the transaction indicated the structure of the deal reflects a fee of around £180 million for the circa 185,000-square-foot building. This acquisition positions it among the biggest office sales of 2024, comparable only to the Atlantic House transaction by Royal London Asset Management, which is reported to be valued at approximately £185 million.
The 90 High Holborn building, originally developed by Minerva in 2003 as the headquarters of law firm Olswang, is currently home to US law firm Quinn Emanuel Urquhart & Sullivan, which recently expanded its space from 50,000 square feet to 67,000 square feet on multiple leases running to 2034.
Strategic Investment Approach
The acquisition of 90 High Holborn represents just one component of Greycoat’s broader investment strategy. The firm’s buying spree has also included:
- 55 Strand from Legal & General Investment Management for £24.75 million (reflecting a circa 7.9% net yield)
- 120 Aldersgate Street in Clerkenwell EC1 from Legal & General for approximately £23 million (reflecting a net initial yield exceeding 10%)
- 140 Leadenhall Street, a 45,000-square-foot building in the City, from Aviva for £20.3 million (a net initial yield of 6.38%)
These strategic acquisitions highlight Greycoat’s calculated approach to identifying value opportunities in the London office market, even amid broader market uncertainties.
Nick Millican’s Strategic Vision
As CEO at Greycoat Real Estate, Nick Millican has been instrumental in shaping the firm’s investment strategy and business development approach. Drawing on his extensive experience in the real estate sector, Millican has helped position Greycoat as a forward-thinking firm capable of navigating complex market dynamics while identifying strategic growth opportunities.
Millican’s approach to business strategy emphasizes the importance of building strong partnerships and leveraging complementary strengths, as evidenced by the collaborative nature of the Homes England joint venture. His leadership philosophy focuses on removing barriers to development and creating value through innovative solutions to complex property challenges.
The diversified portfolio of investments under Millican’s strategic guidance demonstrates Greycoat’s ability to operate successfully across multiple segments of the property market, from office investments to large-scale residential development projects.
Market Impact and Industry Leadership
Greycoat’s recent investments serve as a significant boost to the capital’s office investment market, contributing to the return of big-ticket deals this year. The firm’s partnership with Homes England and Oaktree Capital represents an innovative approach to addressing housing needs through institutional investment in an under-served part of the UK residential market.
Peter Denton, Chief Executive of Homes England, emphasized the importance of this approach: “Bringing forward more large-scale developments is key to delivering the homes the country needs – and this requires ambitious master developers with clear visions and long-term commitment. Joining Oaktree’s capital with Greycoat’s development experience, this partnership has the funding, ambition and expertise needed.”
This perspective aligns perfectly with the strategic direction that Millican and the Greycoat leadership team have established for the firm – combining vision, expertise, and capital to create meaningful impact in the property market.
Building on Success
Looking ahead, Greycoat is well-positioned to build on its recent successes. The firm’s ability to execute large, complex transactions while simultaneously developing innovative partnership models suggests a bright future in both the commercial and residential property sectors.
The housing joint venture particularly represents a significant opportunity for long-term value creation, with its focus on quality environments for new communities and emphasis on placemaking principles. By prioritizing social and community values, Greycoat is demonstrating leadership not just in financial returns but in creating sustainable, desirable places to live.
Similarly, the firm’s strategic office acquisitions reflect a sophisticated understanding of market dynamics and value opportunities, with each transaction carefully structured to deliver appropriate yields and growth potential.
Conclusion
Through its dual focus on major office investments and innovative housing development partnerships, Greycoat Real Estate has established itself as a multifaceted leader in the UK property market. The firm’s recent achievements, guided by experienced leaders like Nick Millican, demonstrate how strategic vision, collaborative partnerships, and targeted investments can create significant value and impact.
As the property market continues to evolve, Greycoat’s blend of commercial acumen and commitment to quality development positions it well for sustained success, while addressing crucial housing and commercial space needs across England.