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Starwood circles CA Immo, Immofinanz stakes; Hammerson snubs Klépierre's £5B bid

S&P Global Market Intelligence offers our top picks of European real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Austria calls

* American company Starwood Capital Group is seeking to acquire a 26% stake in CA Immobilien Anlagen AG and a 5% interest in IMMOFINANZ AG for €27.50 per share and €2.10 per share, respectively.

Austrian developer CA Immobilien responded to the offer and said it "in general welcomes" interest "by internationally known investors" in the company. It added that it will release a reasoned statement following an assessment of the offer by its management board.

Deals in billions

* Spain's Banco de Sabadell SA is in discussions for the sale of two portfolios of toxic real estate properties worth roughly €3.3 billion, Reuters reported, citing a source with knowledge of the deal.

The bank is in initial talks to dispose of foreclosed properties and other assets for €2.4 billion and is nearing the sale of €900 million of nonperforming real estate loans in a separate deal, the news outlet noted, citing the source.

* A joint venture between Goldman Sachs Group Inc. and British medical research charity Wellcome Trust has filed a £1.2 billion bid for Network Rail's commercial property portfolio in the U.K., Sky News reported.

Network Rail is looking to sell a portfolio of about 5,500 premises in order to raise funds for rail infrastructure investment.

Aiming high

* Funds from operations I at Deutsche Wohnen SE for full year 2017 rose 12.6% to €432.3 million from €383.9 million in 2016. Per-share FFO I climbed 7.9% year over year to €1.23.

Two to tango

* Emaar Properties PJSC and Aldar Properties PJSC have entered into a joint venture to develop domestic and international real estate projects worth 30 billion United Arab Emirates dirhams. UAE Vice President and Prime Minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum confirmed the deal.

* Australian company Lendlease Corp. Ltd. teamed up with Allied London to develop four buildings at Allied's £1 billion high-rise St John's scheme in Manchester, U.K., Construction Enquirer reported, citing St John's managing director Grant Jarvie.

Lendlease will construct a 52-story private apartment tower and the adjacent Globe & Simpson work space building. It will also develop two 36-story Nickel and Dime buildings, featuring 610 apartments. Upon completion, the 6-acre St John's project will offer 3,000 homes and 600,000 square feet of commercial space.

M&A spotlight

* Hammerson PLC rejected an acquisition bid from French real estate investment trust Klépierre, which valued the U.K. bellwether's shares at 615 pence per share. Hammerson rejected the offer, pinned at £5 billion by The (U.K.) Times, on the grounds that it "significantly undervalues" the company.

Meanwhile, Hammerson said it is fully committed to its proposed £3.4 billion combination with Intu Properties PLC, which will see the creation of a company with a pan-European retail and leisure portfolio worth £21 billion.

* Hammerson syndicated and signed a £1.50 billion unsecured revolving credit facility that can only be drawn down upon completion of its proposed merger with Intu.

The three-year facility, signed with a syndicate of 12 banks, will be used to repay selected Intu debt facilities, according to a release.

* The Australian Federal Treasurer approved French hotelier AccorHotels' proposed takeover of Australian hotel operator Mantra Group Ltd. via a A$1.18 billion scheme arrangement, moving the merger ahead by another step. The deal is now subject to the approval of Mantra's shareholders and the Federal Court of Australia.

Buyers and sellers

* Fusion Students and Unite are selling two U.K. student accommodation portfolios in separate deals for a total price of about £432 million, Property Week reported. Fusion is divesting its Stellar portfolio for over £232 million, while Unite is selling its Mayflower portfolio for about £200 million.

* Aviva Investors' retail fund Aviva Investors UK Funds Property Trust is seeking buyers for its 64,606-square-foot 20 Soho Square property in London with hopes of raising "just under" £120 million, PW reported.

The asking price reflects a yield of 4%.

* Malaysia's Eco World International Bhd. closed the acquisition of six U.K. sites from developer Willmott Dixon Holdings Ltd., marking the completion of the first stage of its plans to acquire a 70% stake in the latter's development unit. The sites have a gross development value of approximately £1.1 billion.

Additionally, Eco World has to pay consideration of roughly £40.4 million to buy another six development plots in London with a gross development value of £1.5 billion, representing the second stage of its stake purchase plan.

Setting a record

* Australia-listed Westfield Corp.'s Westfield London is now the largest shopping mall in Europe after the opening of the mall's £600 million, 740,000-square-foot expanded section, The (U.K.) Times reported. Following the expansion, the size of the retail asset increased to 2.6 million square feet, surpassing Aviapark in Moscow and the Westgate shopping city in Zagreb, Croatia, according to the report.

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Joyce Guevarra contributed to this report.