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Intu plans £100M mall expansion; Chinese group eyeing CapCo London asset

* Intu Properties Plc will embark on a £100 million expansion of its intu Merry Hill shopping mall in the west Midlands, U.K., according to a Property Week report. The company, which fully owns the mall, will add a 100,000-square-foot extension to the retail complex and has hired Savills and JLL to seek operators for the additional space.

The extension is expected to be a dining quarter, with a focus on casual dining brands, according to the publication. Planning application is likely to be submitted at the end of 2017, at the earliest.

* Chinese conglomerate HNA Group is said to be discussing a possible acquisition of Capital & Counties Properties Plc's Olympia exhibition center in West London, Bloomberg reported, citing three people with knowledge of the matter. HNA is said to be offering more than £300 million, together with its partner Bugsby Property LLC, for the venues unit that was put on sale in 2015.

Meanwhile, CapCo confirmed it is in "advanced discussions" over the disposal of Venues, at a price aligned with a Dec. 31, 2016, valuation of the unit, which stood at £292.7 million.


* The board of Alpha Real Trust, in its latest announcement, reiterated that Hansteen Holdings Plc's offer to buy Industrial Multi Property Trust Plc at 300 pence per ordinary share "grossly undervalues" IMPT.

To support its claim, Alpha Real Trust noted IMPT's April 4 announcement, which highlighted Cushman & Wakefield's revaluation of the company's portfolio as of March 31, showing that the value of IMPT's property holdings rose by as much as £1.3 million to £86.2 million, which translates to an increase of 15.5 pence on a per-share basis.

* Simons Construction, engaged by Circle Health, will break ground on a £22 million private hospital in Birmingham later in April, according to a report by Construction Enquirer. The hospital will offer large-scale rehabilitation services and will have six operating theaters, 18 inpatient rooms and a few recovery suites.

* Fitch affirmed Atrium European Real Estate Ltd.'s long-term issuer default rating and senior unsecured rating at BBB-

and its short-term IDR at F3, with a stable outlook.


* Lloyds Bank will extend a €600 million loan to Unibail-Rodamco SE to allow the French company to refinance an existing loan from 2011, PW reported. The revolving euro-denominated loan facility has a five-year initial termination date, with two year-long extension options.

* Prime property prices in Cannes are still well below peak levels recorded a decade ago, weighing in at some 30% lower, The Wall Street Journal reported, citing Knight Frank's Cannes Managing Director Fred Lilloe. However, there appears to be some respite from the downtrend of late, with real estate values inching about 1% lower year over year in 2016, a more positive performance than the annual 5% decline the city is more used to.

* Thor Equities inked an agreement to purchase the 54 Rue De Rennes retail asset in Paris for €15 million, according to a release. The 267-square-meter space is leased to Italian label Stefanel.

* Still on retail property in the French capital city, Dutch retail property company Redevco acquired an asset on the high street of the Boulogne-Billancourt suburb for an undisclosed price, Property Investor Europe reported. The 2,720-square-meter property comprises two retail units, occupied by C&A and a beauty salon, respectively.


* Redefine International Plc agreed to buy a controlling stake in the €175.5 million Leopard retail portfolio in Germany for an aggregate price of €49.4 million, including transaction costs, according to a release. The company, which will use its cash resources to pay for the stake that Redefine Properties Ltd. is selling, expects to receive an annual cash-on-cash yield of 10% from the portfolio.

The portfolio consists of 66 assets spread over 138,000 square meters of lettable area, which bring in €13.9 million in gross rental income each year.

* Round Hill Capital advanced its approximately €1 billion investment plan in Germany's residential sector by acquiring a portfolio of 770 flats for an undisclosed price, PIE reported, citing a press release. The British private equity group acquired the properties in the central Mitte and Friedrichshain-Kreuzberg districts from an unnamed seller.


* Aviva Investors and LaSalle Investment Management jointly acquired the El Tomes mall in Salamanca for €70 million from Retail Property Fund Iberica, a fund managed by CBRE Global Investors, according to a PIE report. The purchase will be injected into the duo's pan-European core-plus fund Encore+.

The mall contains 22,600 square meters of gross leasable area, with fashion labels making up more than half of their tenants.

* Redevco and Ares Management, through their Redevco Iberian Ventures vehicle, plan to purchase a majority stake in the 123,000-square-meter Parque Corredor shopping center in the Torrejón de Ardoz municipality, PIE reported, citing local media reports. The €200 million shopping center contains 180 retail units and will need an estimated €15 million overhaul.


* La Française Real Estate Partners International and Aberdeen Asset Management, on behalf of the Luxembourg-based PURetail fund, sold the Estelle/Oscar retail portfolio in Linköping, according to Property Magazine International. The portfolio spans three assets which have a total lettable area of 8,647 square meters.


* Local developer HB Reavis received building permission to construct a 130,000-square-meter shopping mall and international bus terminal in Bratislava, PropertyEU reported.


* Rebosis Property Fund Ltd. and Ascension Properties Ltd. agreed to proceed with a proposed takeover through the exchange of A shares following the completion of outstanding conditions precedent to the scheme. Rebosis plans to acquire all Ascension A shares by exchanging it with its own ordinary A shares. The exchange ratio is 19.34236 Rebosis A ordinary consideration shares for every 100 Ascension A shares held.

Other real estate news

* Echo Polska Properties raised 2.2 billion South African rand through a capital offering on the Johannesburg bourse, which it will channel toward recent property purchases and the exploration of more opportunities in Poland's retail sector, according to a PIE report. The company placed 118.9 million new shares priced at 18.50 rand apiece through an accelerated bookbuilding.

Echo Polska in February purchased four shopping centers from Blackstone-managed funds at €166.6 million, through a transaction that is expected to close in April.

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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.

Anusha Iyer contributed to this report.