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Brookfield, Onex end IWG buyout talks; Samsung SRA pays £315M for London asset

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Brookfield, Onex end IWG buyout talks; Samsung SRA pays £315M for London asset

* IWG Plc confirmed that talks over the company's potential buyout by Canadian asset manager Brookfield Asset Management Inc. and private equity firm Onex Corp. have ended. Brookfield and Onex first made an all-cash offer for the company in December 2017.

* Samsung SRA Asset Management bought the 200 Aldersgate office property in the City of London from AshbyCapital, in a deal understood to be worth about £315 million. AshbyCapital acquired the 434,000-square-foot building for £225 million in 2013 and had placed it on the market for £320 million in 2017

UK

* Hong Kong billionaire Samuel Tak Lee, who owns a 25.02% interest in Shaftesbury PLC's issued share capital, intends to vote against the company's right to undertake further issues of shares at the next annual general meeting Feb. 9. The shareholder took issue with the "non-preemptive offering at a material discount to the market price and the manner in which shares were then allocated."

Shaftesbury completed a share placement in December 2017 representing approximately 9.98% of its issued share capital as at Dec. 5, raising roughly £265 million in gross proceeds to finance acquisitions in London, among other purposes.

* St. Modwen Properties Plc registered a 5.7% yield from the disposal of its 45-year leasehold interest in the purpose-built student accommodation at Swansea University Bay Campus for a £139.3 million gross consideration to University Partnerships Programme. The deal, featuring a total cash consideration of £87.3 million, was carried out through the sale of the entire issued share capital of St. Modwen Properties VIII S.à.r.l. and St. Modwen (SAC 2) Ltd.

The property is a part of St. Modwen's £450 million development and offers 2,005 rooms.

* Legal & General is buying the £180 million Woodside Industrial Estate in Dunstable from private equity investor Harbert Management Corp., at a yield of approximately 5%. The estate contains 1.5 million square feet of space across more than 100 acres.

Harbert purchased the asset from SEGRO Plc in 2009, along with three other industrial estates in the South East, for a sum of roughly £103.8 million, the report added.

* After fulfilling certain conditions, Intu Properties Plc settled the £148 million sale of a 50% stake in the intu Chapelfield shopping center in Norwich to LaSalle Investment Management Inc. The stake in the retail asset was purchased on behalf of Greater Manchester Pension Fund and West Yorkshire Pension Fund in November 2017.

* The U.K. government has pledged £866 million for local housing projects to deliver up to 200,000 new homes. The government is looking to build 300,000 homes per year by the mid-2020s. The commitment forms part of the £5.00 billion Housing Infrastructure Fund that aims to tackle the housing crisis in the country.

* Watkin Jones is searching for a funding partner for a portfolio of seven student housing developments, comprising 2,598 student beds, and a gross development value of about £250 million, Property Week reported. The deal is expected to garner interest from Asian investors, the report added.

* Barratt London, in a joint venture with Hyde Group, has received planning approval for the construction of 460 homes on the former Kodak factory site in Harrow, north London, Construction Enquirer reported. The development of future phases at the site will deliver a total of 1,150 new homes and 350,000 square feet of office space, along with other facilities.

* AEW UK Long Lease REIT Plc is set to raise £35 million by offering a maximum of 35 million new shares at 99.0 pence apiece. The offering, which is not underwritten, will comprise a placement of shares, offer for subscription and intermediaries offer under the company's share issuance program.

France and the Netherlands

* Casino Group plans to exercise its option to buy back a 70% stake in two retail assets in France from Schroder European Real Estate Investment Trust Plc for €44.8 million, marking a 10% premium to the properties' current valuation.

* The Carlyle Group picked up four logistics warehouses covering a total area of over 137,888 square meters in France from CBRE Global Investors, which acted on behalf of CBRE Logistics Property Fund Europe, Property Investor Europe reported. The deal has boosted Carlyle's French logistics platform to more than 415,000 square meters, the report added.

* Gramercy Europe completed the first acquisition for its Gramercy Property Europe III fund with the purchase of a 40,618-square-meter Dutch logistics warehouse in Tilburg, PIE reported. The asset was bought from and will be leased back to home decor and fragrance provider PartyLite, with a 10-year, triple net lease.

Sweden

* Kungsleden AB purchased Skanska AB's three assets in Gothenburg — Kallebäck 2:7, Kallebäck 2:11 and Kallebäck 2:9 — for approximately 1 billion Swedish kronor. The properties offer roughly 30,000 square meters of total lettable area, including 18,300 square meters of office space and 11,600 square meters of parking garage space.

Spain and Portugal

* Deka Immobilien acquired the 34,000-square-meter Mistral retail portfolio comprising 14 assets in Spain and two in Portugal in a sale-leaseback deal with clothing retailer Zara, PIE reported. Eight of the assets will be injected into the Deka-ImmobilienEuropa fund, and the remaining eight into the WestInvest InterSelect fund, according to the report.

Other real estate news

* Europa Capital raised €716 million for its fifth flagship pan-European value-add fund and associated co-investment vehicles. Europa Fund V comprises 17 international institutional investors from predominantly private and state pension plans.

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Data Dispatch: January state of the housing market

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.

Anusha Iyer contributed to this report.

As of Feb. 1, US$1 was equivalent to about 7.87 Swedish kronor.