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€1B European student housing fund launches; Derwent sells Central London asset


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€1B European student housing fund launches; Derwent sells Central London asset

* Germany-based student housing company International Campus launched a student housing fund with a target volume of up to 1 billion, Reuters reported. The fund was launched in partnership with insurance company Allianz and a European investor represented by CBRE. The fund was registered in Luxembourg for an initial duration of 10 years, and will invest in pan-European student housing.

Allianz invested €175 million in the fund, while CBRE did not disclose the name of its investor or the size of the investment, the report noted. International Campus is the operator of around 7,200 student housing apartments in Germany and the Netherlands.

* Derwent London Plc concluded the sale of its freehold interest in 120-134 Tottenham Court Road in London, U.K., for a price tag of £69.7 million, before costs. The property, sold to a private investor, comprises a 330-room hotel and 26,400 square feet of retail and restaurant space. The building generates a total net annual rent of £2.3 million.

UK and Ireland

* Crown Estate is set to start a £100 million redevelopment of a retail and office block in London's West End, after putting the decision on hold following the Brexit vote, The (U.K.) Guardian reported. The plans are part of a broader £500 million investment program in the area. Skanska will undertake the construction of the project, which is scheduled for completion in spring 2019.

* University Partnerships Programme is seeking planning consent to build a new £130 million student accommodation development at the University of Hull in the U.K., Property Week reported. The project will deliver single rooms and one-bedroom apartments spread over nine blocks for some 1,462 students.

* The U.K.'s Cabinet Office sold the 70-acre Sunningdale Park estate in Berkshire, for which planning permission will be sought for a residential and retirement scheme, PW reported. Berkeley Homes and Audley Retirement bought the estate for an undisclosed amount, and will be conferring with the Royal Borough of Windsor and Maidenhead, and the local community next year.

* According to the Royal Institute of Chartered Surveyors, house prices in Britain are expected to go up 3% on average in 2017 due to a shortage of new homes, Reuters reported. Meanwhile, earlier this week, Nationwide Building Society provided a forecast that stipulated an estimated 2% growth in house prices due to the overarching effects of a softer economy.

* In Scotland, Sovereign Centros was granted planning approval for a 90,000-square-foot leisure redevelopment at the St Enoch shopping center in Glasgow, on behalf of its owner Blackstone, PW reported. The project will redevelop the former BHS store at the center to build a 30,000-square-foot, nine-screen cinema, up to nine restaurants and provide 35,000 square feet of retail and leisure space.

* Over in Ireland, Ardstone Capital raised €185 million for its Irish residential property vehicle, Residential Partners, IPE Real Estate reported. The fund, which is backed by six institutional investors, is on track to raise €200 million by the first quarter of 2017, the report noted.

Southern Europe

* Czech logistics developer VGP purchased a distribution center and development site in a logistics park near Barcelona, Spain, for €150 million, Property Investor Europe reported. The sale-leaseback agreement was signed with fashion retailer Mango. The Mango Logistics Park includes a 180,000-square-meter logistics asset currently under construction, which has the potential to be extended to 260,000 square meters, the report noted.

Mango has inked a 30-year lease agreement on the property, which will be the global distribution base for its 2,200 shops spanning 110 countries.

* Radisson Blu Hotels & Resorts Worldwide opened the Radisson Blu Resort & Spa Gran Canaria Mogan in the Puerto de Mogán village of the Spanish Canary Islands. The newly-built hotel offers 422 rooms and suites, and is the second Radisson Blu hotel opened in the island of Gran Canaria.

* Office take-up in Milan, Italy, recorded positive results, increasing 16% year over year to 220,000 square meters in the first nine months of this year, despite a slow national economy, PIE reported, citing Knight Frank. The office development pipeline is anticipated to deliver 475,000 square meters over the next three years, while the 12.5% vacancy rate is predicted to remain steady, with any slight increase likely to be offset by demand, according to the report.


In a partnership with Warburg-HIH Invest Real Estate, Cording Real Estate Group has launched a €300 million real estate fund. The Benelux Commercial Real Estate Fund was launched on behalf of Helaba Invest and SV SparkassenVersicherung and will invest in office and retail properties in the Netherlands, Belgium and Luxembourg for a planned investment period of two years.


* AXA Investment Managers - Real Assets completed the purchase of a portfolio of 11 healthcare assets in Finland for approximately €65 million. The portfolio was acquired on behalf of the XA Selectiv' Immoservice fund.

* Denmark-based Northern Horizon purchased 20 new care homes in Finland through forward purchase agreements and funding contracts worth €80 million, PIE reported. The fund manager will inject the assets into the Nordic Aged Care fund upon their expected completion in 2017. The fund has €163 million worth of equity commitments from a group of European institutional investors following its first closing in May this year, and owns assets worth €100 million in Sweden and Finland, the report noted.


PATRIZIA Immobilien AG concluded the development of MEINE MITTE, an urban residential complex in Berlin, six months ahead of schedule. The project delivered 102 one- to five-bedroom apartments.

Middle East

* Emaar Properties PJSC is planning to develop its first major hotel project in Ras Al Khaimah, U.A.E, as part of the emirate's tourism plans, The National reported. The 2 million square foot project on the man-made Marjan Island will include a luxury hotel, serviced apartments, retail and residential elements.

* According to STR, hotels in the Middle East reported mixed results in November 2016, while hotels in Africa posted positive results across the three key performance metrics.

Year over year, the Middle East recorded a 3.1% rise in occupancy to 71.3%. Meanwhile, ADR for the region fell 7.7% drop to US$182.60 and as a result, RevPAR went down 4.8% to US$130.27.

Hotels in Africa posted a 1.2% increase in occupancy to 59.9% in the same month. ADR climbed 18.6% to US$118.59, pushing RevPAR up 20.0% to US$71.01.

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