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Empiric makes 2 UK purchases; COIMA RES buys Italian office asset for €46M

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Empiric makes 2 UK purchases; COIMA RES buys Italian office asset for €46M

This feature rounds up recent property news from S&P Global Market Intelligence's covered companies and highlights larger deal coverage already published.

UK

* Picton Property Income Ltd. sold two small, noncore retail assets in Bath for a total of £3.23 million, at an aggregate net initial yield of 4.7% and a 29% premium to the Sept. 30, 2016, valuation. The disposals support the company's ongoing strategy to reshape its portfolio in favor of larger assets holding greater possibilities of capital and income growth, according to a news release.

* Standard Life Investments Property Income Trust Ltd. closed the sale of The Quadrangle in Cheltenham for around £11.1 million. The approximately 58,900-square-foot property is fully leased to RBS, with the lease expiring in June 2018. The proceeds are intended to reduce the company's borrowings under its revolving credit facility.

* Empiric Student Property Plc acquired the freehold 220-bed Foss Studios student accommodation scheme in York for £23.3 million. The scheme, purchased from Curlew Student Trust, is fully let for the 2016/2017 academic year to students from the University of York and from York St John University.

The group also acquired a plot of land in York and entered into a forward funded development agreement for a 106-bed student accommodation development worth £9.2 million. Work on the Percy's Lane development is set to begin in May, with practical completion scheduled in time for the 2018/2019 academic year.

Nordic countries

* Pandox signed 20-year lease agreements for seven operations hotels in Norway, Sweden and Denmark with Scandic Hotels. The operation takeover is expected to be gradually completed during the second quarter of the year, the company said in a release. Additionally, Scandic Hotels will take over operations of the 274-room Grand Hotel Oslo.

* Entra ASA signed an agreement with Samhällsbyggnadsbolaget i Norden AB to sell its portfolio of seven properties in Kristiansand, Norway. The 45,000-square-meter portfolio is being sold for 863 million Norwegian kroner.

Entra said its strategic disposal of the Kristiansand portfolio, which was identified as geographically noncore, is in line with the company's choice to focus on centrally located office assets in Norway's four largest cities.

* Kungsleden AB said it was acquiring the Emporia Office property under construction located at Emporia shopping center in Malmö's Hyllie district in Sweden. The office will offer 10,250 square meters of leasable area, expanding the company's presence in Hyllie to a total leasable area of approximately 50,000 square meters. Construction on the project is expected to be finished during the second quarter of the year.

Germany and Austria

* PATRIZIA Immobilien AG said it has closed the acquisition of five hotel developments in Berlin, Dortmund, Krefeld, Stuttgart and Wuppertal from LIST Retail Development, and one hotel project in Heidelberg from Hirotani Projektgesellschaft mbH. The hotels are scheduled for completion within the year and have been pre-let to hotel operators on 20-year leases.

* IMMOFINANZ AG and Novum Hotel Group are building a new 201-room Holiday Inn Vienna hotel located at the Business Park Vienna. The new hotel, which is scheduled to open in early 2019, has been signed as a franchise agreement with InterContinental Hotels Group Plc.

The hotel is the sixth to be signed under the multiple development agreement inked between IHG and Novum in 2016. The agreement provides for the development of 20 hotels across the European region.

Italy

COIMA RES S.p.A. SIIQ signed an agreement to buy an asset comprising two grade A office buildings in Milan from Immobiliare Deruta 2005 S.a.s., a wholly owned unit of German fund Warburg – HIH Invest Real Estate GmbH. The company paid €46 million for the 13,650-square-meter property located on Via Privata Deruta, which generates €3.5 million in gross annual rent, reflecting an EPRA net initial yield of 6.8%.

The deal was funded by a €20 million, five-year mortgage loan from ING, the company said.

Czech Republic and Hungary

CA Immobilien Anlagen AG purchased the remaining 49% stake in two respective office buildings in Budapest and Prague, to fully acquire the assets. The 21,400-square-meter Danube House in Prague and the 13,700-square-meter Infopark in Budapest are almost fully let, with a combined gross yield of 7.0%, the company said in a release.

Spain

Hispania Activos Inmobiliarios purchased four hotels in Spain's Canary Islands for a total of €92 million, a price that includes the expected refurbishment costs. The 1,183-key acquisition will expand Hispania's portfolio to a tally of 10,407 keys spread over 37 hotels, making it the largest non-operator hotel owner in Spain, according to a company release.

The transaction comprises the Hotel Dunas Don Gregory, the Hotel Dunas Suites & Villas, the Hotel Dunas Maspalomas and the Hotel Dunas Mirador.

Switzerland

Rezidor Hotel Group AB is working on a new Radisson Blu Hotel in Geneva, which is scheduled to open in 2021. The hotel will offer 250 modern guestrooms and suites, as well as business and conference rooms. There are four Radisson Blu hotels already in operation in the country, respectively located at Zurich Airport, Basel, Lucerne and St. Gallen.

Russia

Raven Russia Ltd. bought a portfolio of three properties in St. Petersburg from the EPI Russia I Ky fund for 4.9 billion Russian rubles, at an initial U.S. dollar yield of 16%. The portfolio comprises the 87,000-square-meter Gorigo Logistics Park, the 11,000-square-meter Primium Business Centre and the 22,000-square-meter Kellerman Business Centre.

Other geographies

Dolphin Capital Investors Ltd. is selling a 60% interest in the Pearl Island development located off the coast of Panama for a cash payment of €27 million. The project, which has an enterprise value of €63 million as at June 30, 2016, was sold at a 32% discount to Grivalia Properties REIC, and will result in a €27 million loss for Dolphin Capital, the company said in a release.

Additional Coverage

CapCo, Network Rail partner for Clapham Junction station redevelopment: Unnamed sources close to the partnership provided a redevelopment estimate of approximately £500 million for the project, Property Week reported.

Report: London & Regional close to buying 2 UK hotels for up to £600M: The company is expected to buy the Hilton London Metropole and the Hilton Birmingham Metropole from Tonstate Group, Property Week reported.

U and I Group, Colony NorthStar launch €300M investment platform in UK: U and I made an initial €14 million contribution to the joint venture and added two assets: The Record Store at The Old Vinyl Factory in London and the 72,000-square-foot Donnybrook House in Dublin.

Redefine International offloads German office portfolio: The company said it will use net proceeds of €24.9 million to invest in value-accretive properties and to reduce debt.

Hammerson breaks ground on £15M redevelopment project in Wales: Hammerson started on-site work on a redevelopment project for the Parc Tawe retail and leisure park in Swansea, Wales.

Land Securities seeks alternative project for Worcester, UK, site: The group is believed to be planning an alternative for a development site in Worcester, U.K., following the city council's rejection of the company's proposed £150 million retail project, Property Week reported.

Société Foncière Lyonnaise to buy SMA's Paris HQ: The company agreed to acquire the headquarters building of French insurance group SMA in Paris for €165 million.