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Trio to put London asset on market for £710M; IMMOFINANZ checks out of Russia


According to Market Intelligence, December 2022


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Trio to put London asset on market for £710M; IMMOFINANZ checks out of Russia

* A joint venture between AXA IM - Real Assets, China's Gingko Tree Investment and South Korea's Hanwha Group is placing the Ropemaker Place property in the City of London on the market with an approximately £710 million price tag. The price represents a net initial yield of 4.25% for the 600,000-square-foot freehold asset.

British Land Co. Plc sold the property in March 2013 for £472 million at a net initial yield of 5.0%.

* IMMOFINANZ AG has exited from the Russian market after closing the sale of its five-asset retail portfolio in Moscow to FORT Group. The transaction generated immediate net cash flows of 5.00 billion rubles. The deal also includes a further guaranteed payment of €14.5 million and an earn-out of as much as 9.00 billion rubles in 2022.


* Unite Group Plc's Unite Students signed a deal to acquire a development site in Oxford and agreed to the commercial terms for a 25-year nominations agreement with Oxford Brookes University for the site. Unite has gained permission to deliver an 885-bed scheme on the site for the 2019-2020 academic year under an approximately £75 million project.

* Hong Kong-based Hengli Investments Holding Ltd. bought Lloyds Banking Group Plc's London headquarters for an undisclosed price. Lloyds will lease back the 119,742-square-foot building, at 25 Gresham St., for the next 20 years.

The bank was earlier reported to be selling the asset for about £150 million.

* Moody's affirmed Hammerson Plc's Baa1 long-term issuer rating and senior unsecured debt ratings after the company agreed to an all-share agreement to acquire Intu Properties Plc.

Meanwhile, Fitch Ratings placed Hammerson's BBB+ long-term issuer default rating and senior unsecured rating of A- on rating watch negative after the deal.

* Landsec unit Land Securities PLC is accepting roughly £147.7 million of notes for purchase across six series at a cash cost of £197.1 million, after the expiration of its cash tender offers. The tender offer will be settled Dec. 11.

* Flexible workspace provider WeWork is planning to double the size of its business in the U.K. in 2018, with a 2x expansion also on the cards for 2019, Property Week reported, citing Patrick Nelson, the company's executive vice president of real estate. WeWork operates 19 sites in London and is set to open 10 more sites, offering a total of approximately 2 million square feet of space, according to the report.

* Private equity firm Queensgate Investments finalized a €215 million refinancing of Generator Hostels, a hostel operating business which the company bought in March for €450 million, PW reported. The five-year facility was provided by Société Générale and HSBC, the report noted.

* Dominvs Group sold a 1.3 million-square-foot commercial property portfolio in the U.K., comprising 16 industrial properties and two office assets, for roughly £100 million. The portfolio was sold to a private buyer at a net initial yield of roughly 6.75%.

* The Homes and Communities Agency and New Anglia Local Enterprise Partnership have collectively loaned £20 million to R G Carter to complete the construction of a mixed-use project in Ipswich, which was stalled due to the 2008 financial crisis, Construction Enquirer reported. The development will deliver 149 residential units and 5,000 square feet of commercial space upon its completion.

France, Belgium, Luxembourg

* Klépierre settled a cash tender offer it launched in November for four outstanding bonds. The company received tenders for bonds worth €96.7 million comprising a €500 million bond due September 2019, a €500 million bond maturing in February 2021, a €600 million bond due March 2021 and an €85 million bond due December 2022.

* Icade bought a total of 5,275,283 ANF Immobilier shares in a public tender offer, raising its stake in the latter to 16,091,464 shares, or 84.65% of share capital, and at least 84.28% of the voting rights.

* Two Invesco-managed funds formed a joint venture with RedTree Capital for the purchase of the 29,400-square-meter Tour Cédre office building in Paris from Deka Immobilien's WestInvest InterSelect fund, IPE Real Assets reported. Mortgage Recovery Fund II and European Value Add Fund took part in the deal.

* Perial Asset Management paid more than €100 million to buy the 20,000-square-meter Wave office building in Paris' Fontenay-sous-Bois area, marking its largest single investment, Property Investor Europe reported. The building was acquired for the asset manager's PFO2 fund and is fully leased to BNP Paribas.

* BNP Paribas Real Estate purchased the 57 Métal building in Paris' Boulogne-Billancourt suburb, which was formerly occupied by automobile manufacturer Renault, from Europa Capital's Europa Wanda fund, PIE reported. With a construction permit in place, the company plans to transform the property into a 37,000-square-meter headquarters building.

* Befimmo SA agreed to acquire a right in rem to a 99-year leasehold on the Arts 56 building in Brussels from AXA Belgium SA for €116 million. The deed of sale could be signed during the first quarter of 2018, the company said in a release.

* S&P Global Ratings upgraded Aroundtown SA's long-term corporate credit rating to BBB+ from BBB, with a stable outlook.

Poland and the Czech Republic

* Globe Trade Centre SA secured an up to €200 million investment loan facility from Bank Pekao SA to refinance its Galeria Pólnocna mall in Warsaw. The 64,600-square-meter shopping and entertainment center opened in September.

* The Prague Stock Exchange gave approval to Arcona Property Fund NV to list on the exchange. The company plans to list in the "collective investment funds" segment, subject to regulatory approval from the Czech National Bank, which is expected to make a decision in January 2018.


* Eurocommercial Properties NV wrapped up the 795 million-Swedish-kronor sale of its 421 retail park outside Göteborg.


* Attacq Ltd. refinanced 3.2 billion South African rand worth of debt via two of its wholly owned subsidiaries, Attacq Retail Fund (Pty) Ltd. and Lynnwood Bridge Office Park (Pty) Ltd.

* Growthpoint Properties Ltd. has decided not to proceed with a planned euro-denominated bond issuance and will instead seek to reach international capital markets in 2018.

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The Daily Dose Europe, Real Estate edition, is updated as of 6:30 a.m. London time. Some links require a subscription. Articles and links are correct as of publication time.

Anusha Iyer contributed to this report.

As of Dec. 7, US$1 was equivalent to about 59.16 Russian rubles and about 8.47 Swedish kronor.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.