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Spanish bank to sell €3.3B RE assets; Goldman JV bids £1.2B for UK portfolio

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Spanish bank to sell €3.3B RE assets; Goldman JV bids £1.2B for UK portfolio

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

The bank is in initial talks to divest 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 made a £1.2 billion bid for Network Rail's commercial property portfolio in the U.K., Sky News reported.

Network Rail is looking to raise funds for rail infrastructure investment through the sale of a portfolio of about 5,500 premises.

UK and Ireland

* Investment manager Vengrove has teamed up with charity Ark and Hammersmith & Fulham Council for the development of a £120 million education-led mixed-use scheme, dubbed EdCity, in west London, Property Week reported. The development, which will span 378,000 square feet, will offer a redeveloped two-form entry Ark Swift Primary Academy, a 75-place nursery, among other features.

In addition, the scheme will comprise affordable office accommodation totaling 97,000 square feet for education and social innovation charities, as well as 132 residential units.

* Xinyuan Real Estate Co. Ltd.'s unit bought a half-stake in Madison Developments Ltd., the developer of the Madison Project residential development in London, from ED Jersey Ltd., for £29.1 million The Madison Project has planning permission for a 53-story building consisting of 423 residential apartments and 425 square meters of community facilities.

* BAM Construction has been selected as developer for the University of Leeds' £65 million Sir William Henry Bragg Building project in Leeds, U.K., Construction Enquirer reported. The six-story building project will be the university's largest-ever single project investment and will include a full height connecting atrium. BAM will also undertake the refurbishment of the Grade II listed Old Mining Building.

* On behalf of the Logistics Development Club, AXA IM-Real Assets purchased a 32-acre prime logistics freehold site near Dunstable in Bedfordshire, U.K., for an undisclosed price, PW reported. The site, which will be developed by Baytree Logistics Properties, has planning permission in place for the development of two buildings on as much as 620,000 square feet of grade A logistics space, according to the report.

* Developer Johnny Ronan-owned Ronan Group Real Estate's plan to build Dublin's tallest building was rejected by An Board Pleanála, the Irish Independent reported. Dublin city planners deemed that Tanat Ltd.'s proposal for a 22-story tower with offices, a hotel and a rooftop restaurant will have a "significant and detrimental visual impact" on the city's skyline.

* An Board Pleanála granted approval to Cairn Homes Plc for a scheme offering 130 residential apartments and 179 student accommodation units in Stillorgan, south Dublin, The Irish Times reported.

* Green REIT Plc has agreed to lease 985 square meters of space at its office development on One Molesworth Street to the Irish subsidiary of Canadian multinational bank Toronto-Dominion Bank, The Irish Times reported. TD Global Finance is expanding its Dublin office space under a 20-year lease deal as it plans to create a post-Brexit European hub, according to the report.

* A student accommodation section of a mixed-use scheme in north Dublin is on the market for a guide price of €46 million, the Irish Independent reported. German supermarket giant Lidl is inviting prospective buyers to forward purchase two blocks of student housing at the North Quarter Student Accommodation, housing 364 bed spaces. The project is part of a larger development, comprising a supermarket, office accommodation, retail space and two cafés.


* Dubai-based Al-Futtaim real estate's investment in its Cairo Festival City project is expected to hit 30 billion Egyptian pounds by 2023, Reuters reported, citing its managing director Ashraf Ezzeldin. The amount almost doubles the originally planned 15 billion pounds to 17 billion pounds investment in the development that will feature a mall, residential blocks and offices. The report noted the company has already invested 12 billion pounds in the scheme, of which 60% has been completed.


* AXA IM-Real Asset acquired a 14,100-square-meter site in Munich, on behalf of clients, as part of its strategy to invest in development opportunities in tier one and growth cities across Europe, Europe Real Estate reported.


* Grivalia Properties REIC secured a standby facility worth €75 million from Eurobank Ergasias Group to refinance past investments and fund future investments. The facility will be fully covered by Bank Eurobank Ergasias SA and Eurobank Pvt. Bank Luxembourg SA.

Other real estate news

* Dutch pension fund manager PGGM bought a 30% interest in the 21 West End Avenue apartment tower in New York City from Carlyle Group and Greenfield Partners for an undisclosed price, The Real Deal reported, citing Real Estate Alert. According to the report, the deal values the building's aggregate worth at $650 million.

* In 2017, Irish investors invested more than US$254.7 million in overseas commercial property, the Irish Independent reported, citing Cushman & Wakefield research. The investors mainly eyed the London Metropolitan and Birmingham city areas in the UK, as well as the Berlin-Brandenburg and Rhine-Ruhr in Germany and the Boston Metropolitan area in the USA.

About 37% of the investments were made in retail assets and another 37% in offices. Hotels accounted for 16% of the investments, while 5% went to industrial properties, according to the report.

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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.

Rollen Catorce contributed to this report.