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British Land inks £400M retail deal; UBS to manage €400M Europe fund


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British Land inks £400M retail deal; UBS to manage €400M Europe fund

* to sell 334-348 OxfordSt., home of Debenhams' flagship store in London, for £400 million to a privateinvestor. CEO Chris Grigg said that the disposal is reflective of the company'sstrategic focus on multi-let retail assets.

Debenhams has a lease on the seven-story property in theWest End shopping district until 2039.

London's FinancialTimes reportedthat the British bellwether is investing in a new commercial real estateexchange based in the British capital. IPSXwill apply for a fully regulated exchange status and will list single-assetcompanies with assets worth about £30 million or more. The stake that BritishLand is taking has not been disclosed.

* UBS AssetManagement (Italia) SGR SpA said in a news release that its global real estatebusiness won a mandate for Zurich Investments Life SpA's €400 millionpan-European investment fund.

The 15-year term UBS (I) Zurich Italy - Real Estate Fundwill primarily invest in properties in Italy. Other markets in the Eurozonewill also be targeted, according to a news release.

* The founders ofKTR Capital Partners and the former CEO of Delin Capital Asset Management arebacking Valor Real Estate Partners, a new company that will focus on Europe'sindustrial market, Property Week reported.

* KGAL is openinga sustainable power fund, its fourth so far, that will focus on development andconstruction of brownfield properties across Europe. The €500 million fund isdesigned for institutional investors.

UK and Ireland

* As , and partner Allianz RealEstate inkeda 50/50 deal to take over the ownership and management of the140,000-square-meter Dundrum Town Centre mall in Ireland. Included in the dealis the adjoining 6-acre Dundrum Village development site.

The financial terms of the deal were not disclosed. However,in 2015, the partners boughtthe loans attached to a portfolio of Irish assets that includes the DundrumTown Centre for €1.85 billion.

* furtherincreased its stakein its consolidated subsidiary, AtriumEuropean Real Estate Ltd.

The company raised its stake through another unit'sacquisition of an aggregate of 96,420 shares in Atrium at €3.83 per share viaoff-market purchases on July 6.

* Legal &General, Foreign & Colonial and Kames have slashed the value of theirrespective U.K. property funds, The(U.K.) Guardian reported.Aberdeen also extended the trading haltfor its Aberdeen UK Property Fund.

PW also reportedon the latest update to the Brexit-induced turmoil in the open-ended propertyfunds market.

* The suspensionof trading in more than half a dozen U.K. open-ended real estate funds hasreignited a debate about the dangers of funds that are traded on a daily basiswhile investing in illiquid underlying assets such as commercial real estate,according to interviewswith various industry players.

* Fitch added thatthe suspension of trading in the U.K. funds is a prime example of the "immediaterisks" of Brexit on the commercial real estate market. The rating agencyexpects more open-ended property funds to suspend their trading or to imposesome form of gating if the high level of redemptions persists.

* As the industryawaits if Brexit will cause an exodus of companies headquartered in Britain, The (U.K.) Telegraph quotedBarclays Chairman John McFarlane as saying that London will be hard to dethroneas Europe's top capital market.

However, UBS head of real estate research and strategyacross Europe Gunnar Herm reportedly said that such an assumption is "quiteoptimistic" and while relocations might not happen immediately, it ispossible if the U.K.'s uncertain relationship with the EU continues.

* Jones LangLaSalle managing director John Moran toldthe Irish Independent that thebenefits of Brexit on Dublin's commercial property market is "overplayed"and some players' expected surge in demand might not become a reality.

* In other news, PWreportedthat Ask Real Estate, Carillion and Tristan Capital received the green lightfor its planned 166,000-square-foot, eight-floor office building in Salford,U.K.

* EdgeConneX, aU.S.-based data center operator, is planning to make its first foray into theIrish market, accordingto the Irish Independent. The datacenter in Dublin is expected to cost up to €30 million.


* 's Coach Your Growth withIcade program is expected to help the company improve the occupancy rate of itsbusiness park portfolio, PropertyInvestor Europe reported,citing a Business Immo interview with Emmanuelle Baboulin, head of Icade'scommercial property investment division. The €30 million program was July 5.

* A court rulingordered to payapproximately €2 million, including costs arising from the legal process, toKlépierre.

Elbit Imaging Ltd. said in a release that the InternationalCourt of Arbitration ruled that its unit is liable for an indemnificationclaim, relating to a transaction between Plaza Centers and Klépierre in 2004.

Southern Europe

* is winding down itsoffice fund in Italy that owns 13 assets valued at €261.1 million. TheTecla-Fondo Uffici fund will expire by 2017-end, IPE Real Estate reported,citing an Italian-language pressrelease.

* ItalianNational Institute of Statistics data shows that first-quarter home prices inthe country declined 1.2% year over year, PIEreported,keeping the steady decline that started in 2011-end.

* Spanish venturecapital firm Grupo Intercom sold its majority interest in online residentialtrading and rental platform Enalquiler to Italian peer PIE saidthat the platform took an "almost 100%" stake in Enalquiler for anundisclosed price.

* is planning a €147.1 million capital increase by issuing 30 million new sharespriced at €4.92 apiece. Chairman José Luis del Valle said proceeds from thecapital increase will be used by year-end for property acquisitions.


* CBRE GlobalInvestors bought a warehouse in Portugal in a sale-leaseback deal with Decathlon.Financial terms for the 36,600-square meter warehouse were not disclosed, Europe Real Estate reported.

* Hines' PolandSustainable Income Fund bought a portfolio of logistics properties that cover126,290 square meters for an undisclosed sum, PropertyEU reported.NBGI Private Equity is the seller.


* BNP ParibasReal Estate Investment Management Germany sold a 14,000-square-meter officecomplex in Heidelburg to an unnamed buyer for an undisclosed price, PIE reported.The property has a 98.5% occupancy rate.

* Private-equitygroup RFR and Austrian builder Strabag commenced work on an approximately €180million mixed-use scheme in Frankfurt. PIEreportedthat the Flare of Frankfurt building spans 24,500 square meters and will haveresidential, hotel and retail components, as well as restaurant spaces.

Middle East

* Dubai bank Mashreq inked a partnership with developerArady Properties for a Sharia'h compliant US$300 million fund that will buydiversified assets across the Gulf region, with a focus on the United ArabEmirates, the Arabian Business reported.The fund will be registered in the Dubai International Financial Centre and isthe Emirates' pioneer Qualified Investor Real Estate Fund.

The Daily Dose Europe,Real Estate edition, is updated as of 6:30 am London time. Some links require asubscription. Articles and links are correct as of publication time.