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Secure Income to pay £436M for 2 UK portfolios; Core Industrial drops €225M IPO

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Secure Income to pay £436M for 2 UK portfolios; Core Industrial drops €225M IPO

* Secure Income REIT PLC signed agreements to purchase two off-market portfolios in the U.K. for a sum of £436 million. The company is buying a portfolio of leisure properties at a gross cost of £224 million and a portfolio of 59 Travelodge hotels for £212 million. The two deals represent a net initial yield of 5.9% and 6.1%, respectively.

To fund the deal, the real estate investment trust is planning to raise £315.5 million via a placement of 86.4 million new ordinary shares at 365 pence apiece. The remainder of the purchase amount will be paid using £128.7 million worth of debt facilities, according to a release.

* Irish industrial and logistics property company Core Industrial REIT PLC has pulled the plug on its planned €225 million IPO due to prevailing market conditions. The real estate investment trust has planned to launch an IPO on Dublin's Enterprise Securities Market and London's Alternative Investment Market.

UK

* Saudi Prince Abdullah Bin Mosaad is set to invest in the U.K.'s commercial real estate sector via London-based property company Darin Partners, after joining it as a shareholder and a board member. Darin Partners is looking to double the size of its portfolio by investing roughly £200 million into the U.K. over the next 12 months.

* Hammerson PLC teamed up with property technology startup platform Concrete to enhance its focus on new technologies and innovation. Concrete will work with other startups to find solutions for challenges across property development, leasing, asset management, acquisitions and disposals.

* U.S.-based property developer Hillwood Properties is partnering with logistics developer Goya Developments to set up Hillwood Goya, in a bid to invest in the U.K. industrial and logistics sector, Property Week reported.

The joint venture has acquired a site near the Gatwick airport, on which it will build a 170,000-square-foot scheme, and has agreements for two further sites in the South East in the works.

* Urban&Civic PLC entered into an agreement with Claydon Estate LLC for a 785-acre greenfield land in Aylesbury Vale, Buckinghamshire, where it plans to carry out a significant residential development.

* Meanwhile, Grosvenor Britain & Ireland has joined forces with Central Working to enter the shared workspace market with first such site in its 80,000-square-foot Eccleston Yards development in Belgravia, in West London, PW reported. The new Central Working Victoria site will accommodate over 500 entrepreneurs across 28,000 square feet of shared workspace, the publication added.

* Select Property Group is Sir Robert McAlpine's new partner on the construction of the two-building Affinity Living residential project on New Bailey Street in Manchester, replacing Carillion, which has fallen into liquidation, Construction Enquirer reported. The buildings will each offer 320 apartments and 185 apartments upon completion in October 2019.

* NHS Property Services sold a majority of its 11.7-hectare vacant and surplus hospital site in London, which has an outline permission for 290 new homes, for more than £40 million to homebuilder Bellway, PW reported. A 1.6-hectare portion of the site was retained for the possible development of a new health facility.

* Aviva Investors' Lime Property Fund signed a £34 million forward funding deal with Welsh developer Barola to transform the former Custom House building in Cardiff into a 248-room new hotel, PW reported. The hotel will be leased to and operate under Whitbread PLC's Premier Inn brand.

Germany and Austria

* Inovalis Real Estate Investment Trust and its joint venture partner bought an office property in Kösching, Germany, for €24.4 million and sold an office property in the German city of Cologne for €22.0 million.

* IMMOFINANZ AG will launch a share buyback program of up to 15.0 million shares, representing roughly 1.34% of the company's nominal share capital, from March 14 to Dec. 31.

* M&G Real Estate is funding the construction of the 15,060-square-meter Fürst & Friedrich office building in Dusseldorf, Germany. The office scheme is 33% pre-let and is set to be completed in 2019.

* Property developer Reiss & Co divested a 12,700-square-meter building in Stuttgart to the Baden-Wurttemberg state government for an unknown sum, Property Investor Europe reported. The building sits inside energy company EnBW's former headquarters complex, which is poised to become government offices from 2019, the publication noted.

Norway

* Private equity investor HitecVision-owned industrial real estate company, Asset Buyout Partners, agreed to acquire Norwegian industrial landlord Mongstad Group from the EQT Infrastructure II fund. Mongstad owns about 1.2 million square meters of land and infrastructure, 120,000 square meters of industrial facilities and 800 meters of quays at two and gas supply bases in the North Sea.

The financial details of the deal were not disclosed.

* Entra ASA issued 400.0 million Norwegian kroner of new commercial paper, with a term from March 12 to July 12 and a coupon of 1.17% per year.

France

* Ardian Real Estate signed agreements for the acquisition of two office buildings in Paris after raising over €700 million for its first real estate fund, according to a release. The company is buying the 2 place Rio-de-Janeiro and the radio station Europe 1's building in the French capital's 8th district for an undisclosed sum and plans to refurbish both of the assets.

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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.

As of March 8, US$1 was equivalent to 7.84 Norwegian kroner.