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Paris building put up for €700M sale; InfraRed weighs £200M UK office fund

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Paris building put up for €700M sale; InfraRed weighs £200M UK office fund

* Apple Inc.'s store building on Paris' Avenue des Champs-Élysées has been placed on the market by its private French owner for €700 million at an estimated net initial yield of 2.5%. JLL and Morgan Stanley were tasked with finding a buyer for the asset. The seven-story building houses the roughly 5,500-square-meter Apple store on its lower levels.

* InfraRed Capital Partners is looking to establish a first of its kind, new £200 million fund focused on co-working and serviced office assets in the U.K. The company is in talks with several institutional investors to gauge support for the new fund and could pursue an initial public offering if the fund attracts the required level of interest from investors.

UK and Ireland

* Ediston Property Investment Company Plc, along with its investment manager Ediston Properties Ltd., is in talks to purchase an approximately £146 million portfolio comprising retail warehouse parks.

The company agreed to the heads of terms and has entered into an exclusivity period and due diligence regarding the portfolio purchase, which could boost the company's real estate holdings to over £315 million if approved. It plans to raise equity to finance the deal, subject to approval of shareholders.

* JLL is searching for an approximately 180,000-square-meter London office hub for its 2,000 employees, with the relocation expected to be completed by 2022, CoStar News U.K. reported. The company plans to consolidate its commercial offices in the West End, City and Canary Wharf in the capital to one location.

* Developer Grosvenor revealed plans for a 1,500-home build-to-rent development in London's Bermondsey district, for which it plans to file an application later in October, Construction Enquirer reported. The 12-acre former biscuit factory site will also be used to deliver 110,000 square feet of new public spaces and about 20,000 square feet of new play space, according to the report.

* Irish Strategic Investment Fund is loaning approximately €50 million to Hines Ireland for the construction of infrastructure, which will advance the development of 4,000 new residential units in Cherrywood, south Dublin, the Irish Independent reported.

The company lodged a planning application for the initial phase of an over 8,000-home development on the site in late September. The first phase involves constructing 1,269 apartments and other community amenities.

France

* Blackstone Group LP is believed to be selling two office buildings in Paris for roughly €350 million. The Coeur Marais property on the Rue des Archives and the Fhive building on the Rue Charlot were acquired by Blackstone from General Electric Co. in 2015 as part of a larger property acquisition deal.

* Germany's Real I.S. sold a 14,900-square-meter office property in Paris to Primonial REIM for an undisclosed sum, Property Investor Europe reported. The four-story asset formed part of the company's Bayernfonds Frankreich 2 retail fund and is fully leased to freight transport company SNCF Frêt on a six-year term.

Portugal

* Lone Star has appointed CBRE to off-load the Vilamoura luxury resort in Portugal's Algarve region with a price tag of roughly €250 million, PIE reported. The deal will also include an 825-berth marina and 13 land plots on the estate, which can accommodate 1,800 residential units. Vilamoura offers a total of 2,500 rooms, 7,000 residential homes, as well as restaurants, retail space and a casino among other facilities, according to the report.

Germany

* Garbe Industrial Real Estate, on behalf of a private investor, purchased a German portfolio comprising 16 cold chain logistics assets from Doblinger Group, Europe Real Estate reported. Helaba and AVWL financed the purchase of the portfolio, which is valued at over €240 million, the report noted.

Sweden

* Kungsleden AB issued two four-year senior unsecured bond loans worth 1.35 billion Swedish kronor under its recently established medium-term note program. The first loan of 1.00 billion kronor has a floating coupon rate of roughly 1.32%, based on a 3-month Stockholm Interbank Offered Rate plus 1.8%. The second loan of 350 million kronor has a fixed coupon rate of 2.06%, equivalent to a four-year mid-swap rate plus 1.8%.

The company will use the proceeds to partly fund the repayment of a short-term bank loan secured with mortgage deed in real property.

Russia

* IMMOFINANZ AG is in advanced talks with a bidder for the sale of its portfolio of five shopping centers in Moscow. The company shortlisted five bidders for the portfolio in August to fulfill a precondition of its proposed merger with CA Immobilien Anlagen AG. Meanwhile, an Oct. 5 report by Reuters noted that Russian company Fortgroup is close to signing a preliminary agreement for the acquisition of the retail portfolio, according to two sources familiar with the discussions, and they know that no other short-listed bidders were left in the race.

Other real estate news

* According to Savills, global institutional student housing investment reached a record $16.45 billion in 2016, beating the previous record of $15.6 billion set in 2015. Total volumes by dollar value rose 5.4% in 2016 as a number of newly built portfolios of scale changed hands for the first time.

* Iron Mountain Inc. agreed to buy two Credit Suisse data centers in London and Singapore for roughly $100 million. The London data center offers 120,000 square feet and is in the Slough Trading Estate, while the Singapore data center offers 153,000 square feet and is in Serangoon. Credit Suisse will continue to occupy the facilities under a long-term lease that will be signed with the company.

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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 Oct. 5, US$1 was equivalent to 8.13 Swedish kronor.