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Land Securities issuing £700M bonds; Chinese tycoon to invest £1B in London

* Land Securities Group Plc will issue £700 million in bonds through two series, marking the first new bonds out of the company's secured debt structure since 2007. The £400 million bond series is expected to have a seven-year term and a 1.974% coupon, while the £300 million bonds issue will have an expected maturity of 12 years and a 2.399% coupon. Land Securities Capital Markets PLC is the issuer.

* Chairman of Hong Kong-based New World Development Henry Cheng Kar-shun is set to be the biggest Chinese investor in the U.K. following the Brexit vote, after committing to invest £1 billion to develop a mixed-use project in London, the South China Morning Post reported.

The project aims to deliver 800 apartment units, office space and 500 hotel rooms spread over 1.4 million square feet of space, among other amenities, the report noted, citing Cheng's company Knight Dragon. Meanwhile, Cheng is on recuperation leave in Hong Kong, after reportedly having suffered a small stroke in January.


* City Developments Ltd. plans to expand its portfolio in London with the development of a luxury residential project at the freehold Ransomes Wharf site in Battersea, located in the borough of Wandsworth, with a gross development value of approximately £222 million.

Through its subsidiary, Trentworth Properties Ltd., the company exchanged contracts to acquire the 0.65-hectare site for £58 million, which has planning approval for 118 apartments and eight commercial units with 21,980 square feet of ground-floor and lower-ground floor space, among other facilities.

* Imperial College London is poised to build its biggest student accommodation scheme so far after acquiring The Perfume Factory development site in Acton from Essential Living for about £30 million, Property Week reported. The deal is expected to boost the project's end development value to appropriately £250 million from £200 million. Imperial College is planning to build 700 student flats on the 2.8-acre site.

* Housing Association L&Q finalized a deal to buy private land business Gallagher Estates for approximately £505 million. Through the acquisition deal, L&Q secured land to construct 42,500 new homes, mainly in the South and South Midlands. The latest acquisition follows L&Q's merger with East Thames Ltd. in December 2016 and a £2.6 billion refinancing package.

* LBS Properties signed a £150 million agreement with Balfour Beatty to construct a 53-story residential tower close to Canary Wharf in London, Construction Enquirer reported. The Marsh Wall building, which has achieved sales of more than 35% so far, will offer 423 luxury apartments of up to three bedrooms, including 104 affordable homes, upon its completion in 2020.

* Standard Life Investments Property Income Trust Ltd. issued 650,000 ordinary shares of 1 pence each at a price of 86.5 pence apiece to meet current demand for the ordinary shares pursuant to the company's tap issuance program. The proceeds will be used to reduce the company's borrowings and/or to be invested according to its investment policy.

* Kier Group is seeking £92 million in a sale-and-leaseback deal for its headquarters in London, PW reported, with plans to pay annual rent of £3.2 million. The price tag represents a net initial yield of 3.4% for the 41,883-square-foot building.

* According to Real Capital Analytics, real estate investment in London plunged 50% in 2016 to €25.2 billion due to weakening tenant demand and high prices at a mature stage of the market cycle, IPE Real Estate reported. However, London still remained Europe's biggest city market, with almost 20% more investment than first runner-up Paris.

Despite the lackluster investment activity last year, property adviser Knight Frank predicts that London's real estate market will demonstrate growth after the U.K.'s departure from the European Union, as the technology and creative sectors broaden their presence in the city on the back of the departure of several financial institutions, Property Investor Europe reported.


* Aviva Investors and LaSalle Investment Management acquired a logistics asset in Fontenay-Trésigny, Paris, for their joint European core fund Encore+, IPE Real Estate reported. The 70,800-square-meter property, which is leased to FM Logistics, is the fund's sixth acquisition in France.

Encore+ last purchased the 69 Haussmann office building in Paris for €128 million earlier in January.

* The forecast for Paris' office rental growth for this year was trimmed to 1.5% from 3.5% amid the expectation of rising vacancies in the capital, PIE reported, citing Capital Economics. Even though office vacancy levels have actually fallen to about 6%, the supply pipeline went up to more than 1 million square meters from 710,000 square meters in the last few months, the report noted.


PATRIZIA Immobilien AG sold a portfolio consisting of 10 office properties in the state of Hesse to France-based property management company Perial. According to a company release, the transaction recorded a "three-digit million range" price tag. The portfolio offers a total leasable area of over 85,000 square meters and a total land area of approximately 200,000 square meters.


Prelios SpA confirmed that it is reviewing possibilities to improve its German operations and fund management activities in Italy, with potential options including engaging in partnerships. Releasing a statement in response to media speculation, the company said its next steps will be determined after the conclusion of an ongoing competitive process and clarified that "nothing has been decided at this time."


Kungsleden AB is issuing approximately 1.60 billion Swedish kronor worth of shares with pre-emptive rights for its shareholders. The issuance is subject to an approval in an extraordinary general meeting to be held March 6. If approval for the issuance is received, the subscription period will run from March 10 to March 24.


According to a Cushman & Wakefield report, total office supply in Poland's eight key regional cities climbed to nearly 4 million square meters, with Krakow, Wroclaw and Tricity ranking as the largest regional office hubs. Office take-up across the country reached approximately 590,000 square meters, representing an average 50% rise from the period between 2011 and 2015.

Middle East

Emaar Properties PJSC unit Eagle Hills appointed planner and engineer SSH as designer of the Marassi Boulevard scheme in Bahrain, Arabian Business reported. The project consists of four residential buildings ranging from seven to 10 floors in height, offering up to 240 homes and 700 square meters of retail space.

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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.

Celestyn Wong contributed to this report.