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Malaysian JV signs £1.6B Battersea London deal; Starwood launches €1B Irish fund

* A Malaysian joint venture entered into a deal to buy the commercial elements in the second phase of the Battersea Power Station project in London for a base amount of £1.58 billion.

Asset manager Permodalan Nasional Bhd. and state pension fund Employees Provident Fund Board will purchase the assets from Battersea Phase 2 Holdco. in a deal expected to close in the first quarter of 2019.

* A Starwood Capital Group affiliate, Urbeo Residential and the Ireland Strategic Investment Fund teamed up to launch a €1 billion build-to-rent residential platform that will focus on Ireland.

The Urbeo fund will purchase rental accommodations, which involves social and supported tenants in Dublin and other major Irish cities, primarily through forward purchases and funding arrangements.

UK and Ireland

* City of London Corp. acquired the Barking Power Station through the purchase of Barking Power Ltd. and Thames Power Services Ltd. from ATCO Power Generation in a deal understood to be valued at about £125 million, Property Week reported. The local authority plans to transform the 42-acre site into a consolidated foods market.

* Tritax Eurobox PLC obtained a €100 million increase to its existing €200 million unsecured revolving credit facility. Bank of America Merrill Lynch is providing the further commitment on the same terms as the existing facility.

* Google LLC's Irish unit closed the purchase of two office properties in Dublin from Kennedy-Wilson Holdings Inc. for an undisclosed amount. The two assets are next to the mixed-use Bolands Quay development that Google purchased in May for an estimated €300 million.

* Grainger PLC signed a forward-funding deal for the acquisition of a 373-home build-to-rent development at Exchange Square in Birmingham, U.K., under a roughly £77 million deal. Nikal Ltd. is developing the project, with completion expected in 2022.

Separately, the company said it received valid acceptances in respect of 186,870,430 new ordinary shares in its rights issue of up to 194,748,913 new shares. The 7-for-15 rights issue priced at 178 pence per share was launched to fund the company’s buyout of Grip Reit PLC.

* Real estate manager and investor Telereal Trillium landed approval from the London Legacy Development Corp. to transform a 1.5-acre former BT depot site on Fish Island in Hackney Wick, London, into 145 apartments across four buildings. The development will also include 23,000 square feet of ground-level commercial space and other facilities.

* According to the Royal Institution of Chartered Surveyors, U.K. home values are predicted to remain flat in 2019, while the number of home sales is estimated to drop by 5% year over year to around 1.15 million in the new year, The (U.K.) Guardian reported. The predictions were influenced by ongoing Brexit uncertainties, as well as affordability issues.

* The value of shopping center deals in Britain totaled £1.14 billion in 2018, the lowest annual figure since 2008, PW reported, citing Knight Frank's Shopping Centre Snapshot. According to the research, further sales of noncore retail assets are expected in 2019 by institutional sellers and real estate investment trusts.


* Norway's sovereign wealth fund, Norges Bank Real Estate Management, is purchasing a 100% stake in a property at 79 avenue des Champs-Elysées in Paris from Groupama Group for €613 million. The property, which will be unencumbered by debt, comprises 7,200 square meters of retail space and 3,100 square meters of office space.

* Sweden-based private equity group EQT Partners AB paid €42 million to buy a vacant building in Paris from an AEW-advised pension fund, marking its fourth acquisition in the French capital. The group plans to fully revamp the 9,050-square-meter property, according to a release.


* A UBS Asset Management fund bought an office building in Rome for €90.3 million on behalf of Zurich Insurance Group's Zurich Italy Real Estate Fund, IPE Real Assets reported. Coima Res SpA SIIQ was the seller of the Eurcenter property.


* House prices in Norway are estimated to rise by 3% in 2019 as strong demand continues despite possible interest rate hikes, Reuters reported, citing Real Estate Norway.

Meanwhile, values in November climbed 2% year over year, the report added.

Middle East

* Dubai Investments PJSC's real estate subsidiary, Dubai Investments Park Development Co., is planning to sell Islamic bonds, or sukuk, which are expected to raise roughly US$500 million. The company hired HSBC Holdings PLC and Citigroup Inc. to handle the sale. It is also working with First Abu Dhabi Bank PJSC, Emirates NBD PJSC and Dubai Islamic Bank PJSC for the placement of the five-year notes.

Other real estate news

* Commerz Real AG and German luxury hotel company Deutsche Hospitality jointly established a €250 million European hotel real estate investment vehicle. Commerz Real European Hotel Fund will receive a €12 million injection from Deutsche Hospitality's Steigenberger Hotels division. The fund is also set to secure €92 million from other investors.

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