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Wells Fargo inks £300M deal for London HQ; Blackstone raises €6.3B for Europe property fund

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Wells Fargo inks £300M deal for London HQ; Blackstone raises €6.3B for Europe property fund

* Wells Fargo & Co.'sagreement for the 33Central building in London comes with a £300 million price tag, The Wall Street Journal reported,citing a person familiar with the deal.

HB Reavis sold the 227,000-square-foot building that isexpected to be completed in autumn 2017. The King William Street asset will behome to the bank's 850 employees currently spread across four offices in thecity.

London's FinancialTimes addedthat Wells Fargo initially intended to only lease the 11-story property.

* Blackstone Group LPraised €6.3 billion in the second close of its Blackstone Real Estate PartnersEurope V fund, accordingto PropertyEU.

* The Norges Bank Real Estate Management acquired the largest asset inAberdeen Asset Management's reinstated£3.2 billion property fund. Property Weekreportedthat the 355-361 Oxford Street property was sold for £124 million, representinga 4.27% yield.

* Meanwhile, the London EveningStandard reportedthat another of the Aberdeen fund's properties is expected to be sold at adiscount of more than £10 million. According to an unnamed source, 10Hammersmith Grove has been agreed to Brockton Capital for £89 million.

Hammersmith Grove had been to be sold for £105 million,while the office at 355 Oxford St. was priced at £145 million.

UK

* Hammerson Plcagreedto sell the Manor Walks Shopping Centre in Cramlington, Northumberland, for £78million to Arch Commercial Enterprise Ltd. The saleprice reflects a net initial yield of 7% and is "moderately below"book value as at Dec. 31, 2015, the company said.

Hammerson will keep the adjacent Westmorland RetailPark.

* DerwentLondon Plc pre-leased84,600 square feet of office space at The White Chapel Building near Aldgate inthe City of London. The four deals involve 10-year leases and will yield £4.0million in annual rent. The developer added that about 70% of the deals weresigned after the EU referendum.

* The operations of Assura Plc have not been, to date, directly impacted byBrexit, accordingto the company's fiscal first-quarter trading update. Although it expectsprimary care infrastructure investment to be affected by the referendum, thedeveloper is banking on the NHS's plans to prioritize primary care investments,among other factors.

* WK Nowlan REIT Management Ltd. will ceaseto be the investment manager of HiberniaREIT Plc, following authorization from the Central Bank of Ireland.The Irish regulator has authorized Hibernia REIT plc as an internally managedalternative investment fund, as defined by EU regulations.

Hibernia completedis acquisition of WK Nowlan in November 2015, as part of its management teaminternalization.

* LaSalle Investment Management entered into a deal for a two-towerdevelopment of 497 build-to-rent flats in Manchester for roughly £110 million.Renaker Build's Greengate scheme in Salford will be fully completed inDecember, Property Week reported.

* Amazon partially exercised an option to take up additional space atPrincipal Place in London, CoStar U.K. reported.On top of its 431,000-square-foot lease, the e-commerce giant will take another80,000 square feet at the Brookfield property.

* Bloomberg News takesa look at the different offers and promos that London homebuilders arerolling out to entice buyers amid uncertainty in the property market.

* A Société Générale note cited by The(U.K.) Telegraph saidthat the average price of houses in central London's most expensive neighborhoodscould fall by 40% to 50%, given the current ratio of incomes and home prices inthe city.

Germany

* Adler Real Estate AGcompleted theplacement of 10 million 2016/2021 convertible bonds with a total placementvolume of €137.9 million.

* ECE will forge ahead with a plan to build a €140 million shopping mallin the city of Singen in southwest Germany, PropertyInvestor Europe reported,citing a company statement. According to the report, the company receivedapproval from 21.6% of eligible public voters, surpassing the 20% threshold.

TheNetherlands

* NSI NV boughtan approximately 23,000-square-meter, eight-floor office property in Amsterdamfor €57 million, excluding costs, according to a .

Denmark

* Catella Real Estate acquired two multifamily homes in GreaterCopenhagen for €107 million at a 4% initial yield, PIE reported,citing a company statement. The assets comprise 221 residential units.

MiddleEast

* Mohammed al-Emadi, a property tycoon interviewedby Reuters, said that Qatar's current economy cannot handle any more malldevelopments. Emadi added that some mall owners have even decreased rent pricesto attract tenants.

* According to the JLL Q2 2016 Dubai Real Estate Market Report,Brexit has had an adverse effect on Dubai's retail and hotel sectors due to thedevaluation of the pound, which makes the Middle East and Africa an expensivedestination for Europeans.

Craig Plumb, head of research at JLL MENA, also saidthat office vacancy rates have fallen in Dubai but it could also be because ofa shortage in quality office space.

TheDaily Dose Europe, Real Estate edition, is updated as of 6:30 am London time.Some links require a subscription. Articles and links are correct as ofpublication time.