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Hong Kong developer snaps up London asset; Tesco in £3.7B merger deal

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Real Estate News & Analysis: May Edition


Hong Kong developer snaps up London asset; Tesco in £3.7B merger deal

* C C Land Holdings Ltd. agreed to acquire the freehold and leasehold interests in the 1 Kingdom St. office building in London's Paddington Central for roughly £290.0 million, subject to adjustment. The office building's net internal area spans approximately 265,000 square feet of space. It has nine upper floors of grade A office space and two basement floors.

* Tesco Plc finalized talks to acquire the U.K.'s largest food wholesaler, Booker Group plc, in a £3.7 billion merger deal, in hopes to establish the country's leading food business, the companies said in a joint statement. Tesco CEO Dave Lewis said the merger builds on the "significant progress" that the company has made in "turning around" its U.K. retail business.

UK

* A property venture has submitted final plans for St Michael's, a mixed-use development designed to have a hotel with 201 beds, 159 apartments, 138,000 square feet of grade A office space, and 49,000 square feet of retail and leisure space, Property Week reported. Revised plans for the development in Manchester were submitted after it faced opposition from government heritage group Historic England in August 2016.

* The Westminster City Council and the Canal and River Trust have given planning consent to London's first floating park at Merchant Square in Paddington, PW reported. European Land and Property will open the new 7,850-square-foot park in spring 2017.

* The Liverpool City Council is selling its former administrative headquarter building, which is set to be turned into a luxury hotel, Construction Enquirer reported. Singaporean property company Fragrance Group will buy the 11,494-square-meter asset in a deal that is expected to be finalized in February.

* An increase in supply is dampening the demand for privately rented flats and houses in the U.K., according to data from the Association of Residential Letting Agents cited by The (U.K.) Guardian.

Germany

Local investor Skjerven Group launched a €150 million residential investment program, with a focus on affordable housing in Berlin, Property Investor Europe reported. The group purchased a 37-unit multifamily home in the capital's Charlottenburg district, spanning 2,828 square meters, and a 383-square-meter commercial unit.

The Netherlands

TRIUVA Kapitalverwaltungsgesellschaft mbH off-loaded the De Oliphant office building in Amsterdam to Singapore-based First Sponsor Group. The 16-story tower offers approximately 14,000 square meters of leasable area and has further expansion potential to reach 22,000 square meters. The building was leased to ING Bank from 1993 until 2015.

Middle East

Propertyfinder Group expects the actual handover of residential units in Dubai in 2017 to be considerably lower than developers' official estimate of 31,000 units, Arabian Business reported. Meanwhile, approximately 15,000 new residential units were delivered in 2016, reaching the highest level since 2012, the report noted, citing JLL.

Other Real Estate news

* Finland-based pension provider Keva is the cornerstone investor in Aberdeen Asset Management's latest fund, IPE Real Estate reported. Aberdeen raised US$151 million for the fund, which will invest in unlisted funds, joint ventures, club deals and co-investments in the Asia-Pacific region, according to the report.

* AEW Europe and Natixis Asset Management raised €400 million in the second closing of their Senior European Loan Fund II. The debt fund aims to raise €750 million in commitments from institutional investors by the first half of 2017. So far, the fund has made €75 million worth of investments in France, Germany and Italy, while four additional deals worth €100 million are in the pipeline.

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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.

Cam Nones contributed to this report.