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Goodman to sell UK fund assets; IMMOFINANZ proceeds with €515M bond conversion

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Goodman to sell UK fund assets; IMMOFINANZ proceeds with €515M bond conversion

* Goodman Group plans to sell its remaining assets in the Arlington Business Parks Partnership in the U.K. for almost £500 million, choosing Europa Capital as the preferred bidder for the disposal, The Australian reported.

London-based Europa Capital defeated bids from other interested parties, including Fortress Investment Group and Anglezark, Ares Management, Greenoak, Tristan Capital Partners and XLB, Harbert Management and Legal & General.

* IMMOFINANZ AG said that it received acceptances amounting to 43.4% of the outstanding amount for the repurchase offer of its €515.1 million of 4.25% senior unsecured convertible bonds due 2018. Bondholders were given the option of converting the bonds into ordinary shares of the company and of its BUWOG AG unit up until the Jan. 19 expiration of the conversion period.

The company also set the final issuance volume of the 2% convertible bonds due 2024 at €297.2 million. IMMOFINANZ said in a release that a claw back related to the notes will not take place as the joint book runners will make the required adjustments.

UK

* CEG received planning permission for the first major office development in the London borough of Ealing in almost 10 years, Property Week reported. The £50 million scheme features plans for a 170,000-square-foot grade A office building, with work scheduled to begin in April, following the demolition of the current building there.

* Crest Nicholson acquired the Essex Brewery site in Walthamstow for the development of a new 183-unit residential project, with approximately 5,200 square feet of retail space, PW reported. Construction on the project will begin in the spring, with the first units of the mixed–use development due for completion in the summer of 2018.

Around 95% of units in the project will be made available on the Help to Buy scheme in London, according to the report.

* The purchase of homes under construction in London for 2016 fell 22% on the year to 20,695, hitting the lowest level since 2012, Bloomberg News reported, citing Molior London. Developers were left with a record number of unsold properties, which climbed 14% to 25,139 units in the same period, the highest level since Molior began collecting data in 2009, the report noted.

The sales slump is attributed to higher sales taxes and uncertainty surrounding Brexit negotiations.

Germany

* Logistics developer Verdion began work on a new 1.12 million-square-foot regional distribution center for Amazon in Werne. The €100 million development will deliver a modern e-commerce facility in a prime location, with access to major motorways and major West German cities in the Rhine-Rhur area. The project is scheduled for a six-part sectional completion beginning from September, the news release noted.

* Local developer CG Group acquired a former telecommunications office in Frankfurt's East End from HGA Capital, and plans to carry out a €220-million refurbishment and partial conversion of the asset in 2019, Property Investor Europe reported. The office complex, which will also include residential elements, will provide 35,337 square meter of total space upon completion of the redevelopment in 2022.

Norway and Sweden

* Entra ASA issued 500 million Norwegian kroner of bonds with a 1.36% annual coupon. The bonds, listed on the Oslo bourse, will mature Sept. 12. DNB Bank ASA and DNB Markets were the managers of the issuance.

* Pension fund manager Alecta purchased 10 properties with 110,000 square meters of leasable space in Stockholm from U.S. private equity company Carlyle Group, according to PIE. The purchase price is believed to be over 2 billion Swedish kronor, the publication noted.

The assets, leased to approximately 300 tenants, include office space, hotels, public buildings and schools.

France

Schroder Real Estate paid €130 million for the 25,000-square-meter Résonance office in Paris on behalf of its pan-European Swiss fund Immobilien Europa Direkt, IPE Real Estate reported. The fund, which was specifically designed for Swiss pension schemes, was launched in 2013 in a partnership with Zurich Investment Foundation.

Italy

Barings Real Estate Advisers acquired the 16,976-square-meter Nuovo Borgo retail center in Asti from Warburg-HIH for €51.5 million. The company's second Italian purchase was made on behalf of a pan-European core investment strategy, which invests in office, retail and logistics assets in big European markets.

Barings' first Italian property purchase was an office building in Milan that it bought from an Italian insurer earlier in January for €44.35 million in an off-market deal.

Middle East

* Dubai-based developer Deyaar signed a memorandum of understanding with Dubai South to build a new mixed-use development on a 1.27 million-square-foot site in the Residential District around the new Al Maktoum International airport. According to Arabian Business, the 50/50 joint venture will deliver residential units, retail elements and hospitality facilities.

* DAMAC Real Estate Development Ltd. has completed the 28-story Damac Tower in Beirut, and commenced its handover of units, marking the company's first project in the Lebanese capital, Arabian Business reported. The US$300 million tower offers 183 luxury apartments that range from studios to four-bedroom units.

Other Real Estate News

Germany-based industrial and logistics property developer Log4Real is planning a multibillion Euro pan-European industrial real estate investment program, in an attempt to expand locally and in international markets. Over the next three years, the developer is looking to construct 3 million square meters of sustainable energy warehouses for international institutional investors at its key hub locations, according to a company release.

Now featured on S&P Global Market Intelligence

Conference Chatter: Thank foreign capital for real estate's long, vigorous run: The flood of foreign money seeking safe haven in the U.S. has been an essential, rather than incidental, factor in the length and strength of the current real estate cycle, attendees at a conference in California said.

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.

Celestyn Wong contributed to this report.