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CapCo sheds London asset for £250M; Purplebricks stake sold for £125M

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CapCo sheds London asset for £250M; Purplebricks stake sold for £125M

* Capital & Counties Properties PLC divested the Empress State Building in central London to the property's long-term occupant, the Mayor's Office for Policing and Crime, for £250 million in cash.

The deal for the 451,000-square-foot, 31-story asset is estimated to fetch net cash proceeds of roughly £248.5 million for Capco.

* European publisher Axel Springer SE agreed to spend approximately £125 million to buy an 11.5% stake in U.K.-based real estate agency Purplebricks Group PLC. The company has conditionally agreed to subscribe for 27,777,777 new Purplebricks ordinary shares at 360 pence apiece.

Axel Springer will additionally acquire 6,944,444 ordinary Purplebricks shares from the real estate company's CEO Michael Bruce, nonexecutive director William Whitehorn and Global Sales Director Kenny Bruce.


* Blackstone Group LP-managed fund is selling the two-building Cannon Bridge House office property in London for £248 million to FG Asset Management and European real estate investment manager The Valesco Group.

* Landsec tendered approximately £398.4 million of roughly £583.0 million worth of outstanding 5.391% class A5 notes, £88.2 million of roughly £243.3 million of outstanding 5.396% class A7 notes and £119.3 million of approximately £175.7 million of outstanding 5.125% class A11 notes. The notes are due March 2027, July 2032 and February 2036, respectively.

The tender offer was launched earlier in March by the company’s Land Securities PLC to the holders of bonds issued by Land Securities Capital Markets PLC.

* Grosvenor Britain & Ireland signed an agreement with Transport for London for the development of 65,500 square feet of new office space across six floors above the western ticket hall at the new Elizabeth Lines Bond Street station in London, Property Week reported.

* British Land Co. PLC sold a four-acre residential development site in Richmond, southwest London, to a joint venture between Avanton and ICG-Longbow, according to PW. The site could be used for a mixed-use residential project featuring up to 500 units.

* AEW purchased a 149,132-square-foot leisure park in Dagenham through two of its funds for a total of £23.1 million, PW reported. The AEW Core Property Fund bought the 76,787-square-foot western section of the park for £11.6 million, while AEW UK REIT plc is paying £11.5 million for the 72,245-square-foot eastern portion of the asset.

* Home prices in as many as 42% of all the London postcodes are declining in a widespread slump in the capital's real estate values since the 2008 financial crisis, The (U.K.) Guardian reported, citing Hometrack. Meanwhile, house prices in other U.K. cities such as Edinburgh, Liverpool and Manchester are rising over 7% yearly, the report added.


* Adler Real Estate AG projects its 2018 funds from operations I in the range of €65 million to €70 million, an increase of about 65% year over year. The positive outlook is in light of the company's acquisition of real estate operator and manager Brack Capital Properties NV and improved group operations.

* Mitiska REIM acquired its third retail park in Germany with the purchase of one in Braunschweig, which has a gross leasable area of 8,000 square meters and contains seven units. The asset was bought in a joint venture with Zamberk Real Estate Ventures for Mitiska REIM's First Retail International 2 institutional fund.

France and the Netherlands

* Commerz Real AG divested the roughly 16,000-square-meter Euro Alsace office building in Paris to Germany-based Union Investment for an undisclosed sum. French state-owned railway company ÉPIC SNCF is the sole occupier of the six-story building.

* NSI NV paid €36.8 million to purchase a 12,700-square-meter office building on Kingsfordweg 43-117 in Amsterdam, at a gross initial yield of 4.9% and a reversionary yield of 7.1%. The 15-story building is occupied by eight tenants and has a weighted average unexpired lease term of 3.4 years until the first break, according to a release.


* In a sale-and-leaseback deal, CapMan Real Estate bought a 63,000-square-meter office and industrial facility in Eskilstuna on behalf of its CapMan Nordic Real Estate II fund from lock manufacturer ASSA AB. The seller will lease the entire building back for up to three years.

Middle East

* Azizi Developments has wrapped up and handed over the 300 million-United-Arab-Emirates-dirham Montrell by Azizi and the 350 million-dirham Roy Mediterranean by Azizi developments to the Al Furjan residential area in the UAE, Arabian Business reported. Roy Mediterranean offers 224 studios and 47 one-bedroom apartments, while Montrell features 168 studios, 54 one-bedroom flats and 7,500 square feet of retail space, according to the report.

Other real estate news

* Catalyst Capital carried out €200 million worth of six investments in Germany, France and Poland, via its €1 billion Catalyst Core Plus European Property Fund.

* Singapore-listed Ho Bee Land Ltd. will pour as much as €40 million into Credit Suisse's European fund and will co-invest up to an additional €50 million by buying notes issued by Clouse SA Compartment 29, a Luxembourg-based public limited liability company.

The CS Real Estate SICAV-SIF I — Credit Suisse (Lux) European Property Fund II invests in real estate or property investment structures in key cities in Europe.

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The Daily Dose Europe, Real Estate edition is updated by 6:30 a.m. London time. S&P Global Market Intelligence provides links to external sites where these offer further, relevant information to our readers. While we ensure that such links are functional at the time of publication, we are not responsible in instances where those links are unavailable later.

Anusha Iyer contributed to this report.

As of March 24, US$1 was equivalent to 3.67 United Arab Emirates dirhams.