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CapitaLand Commercial to buy German asset; British Land, Azrieli log results

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CapitaLand Commercial to buy German asset; British Land, Azrieli log results

* Singapore's CapitaLand Commercial Trust is marking its entry into Europe with a plan to jointly purchase the €356.0 million Gallileo commercial property in Frankfurt with its parent company CapitaLand Ltd. CapitaLand Commercial Trust will acquire the special-purpose vehicle that holds the 38-story commercial building, along with ancillary retail and a four-story office tower.

* British Land Co. PLC's pretax profit as measured by International Financial Reporting Standards for the full fiscal year ended March 31 amounted to £501.0 million, a gain of 156.9% from £195.0 million in the year-earlier period.

The company said the increase was primarily due to positive property valuation movement in the reporting period.

* Azrieli Group's first-quarter net profit attributable to shareholders rose 8% year over year to 259.0 million shekels from about 240.0 million shekels in the prior-year period, while its earnings per share grew 8.1% on an annual basis to 2.14 shekels from 1.98 shekels.

UK

* Parties involved in the roughly £1.61 billion acquisition of the second stage of the Battersea Power Station project in London have mutually agreed to extend the expiration of the exclusivity period of the deal to June 29 from a previously decided date of April 30. Malaysian developer SP Setia Bhd.'s associate, Battersea Phase 2 Holding Co. Ltd., entered into a heads of terms in January to sell the assets in the second phase upon their completion to a partnership made up of Permodalan Nasional Bhd. and the Employees Provident Fund Board.

A final deal is expected to be signed mid-2018.

* Legal & General entered a £100 million deal to forward fund HUB and Bridges Fund Management's 251-unit build-to-rent building project in Croydon, Property Week reported.

* Valor Real Estate Partners and AIG Global Real Estate jointly established a second fund, Valor Industrial Partners 2, to target logistics and industrial properties in the U.K. and Europe, PW reported. The fund will have purchasing power of £300 million, including leverage, the publication added.

* British Prime Minister Theresa May committed to cover costs of £400 million to replace all hazardous cladding from buildings following the Grenfell tower fire incident in June 2017, PW reported.

* London Mayor Sadiq Khan is planning to utilize the £1.67 billion worth of funds secured from the U.K. government to help local councils' plans to build 10,000 new homes over the next four years, Construction Enquirer reported. A portion of the funding will be used to establish a first-ever City Hall program to aid council housing, according to the report.

* SEGRO PLC will bring in Sue Clayton as an independent nonexecutive director, effective June 1. Clayton serves in the same role at Helical PLC.

Germany, Switzerland and Hungary

* DEMIRE Deutsche Mittelstand Real Estate AG intends to buy back in cash any and all of its outstanding 2.875% senior notes due 2022. The offer was kicked off May 16 and is scheduled to expire June 14, unless extended or terminated earlier.

* Investis Holding SA issued a CHF100 million 0.35% fixed-rate bond with a two-year term to pay back loans from two recent property deals. Payment of the bond is slated for June 12.

* Münchener Hypothekenbank eG extended a €76.5 million loan facility to a Deutsche Investment Kapitalverwaltungsgesellschaft-managed fund for its €136 million acquisition of a residential portfolio comprising 13 properties in Hamburg, with a leasable area of 28,200 square meters, according to a release.

* Hungary-based developer Futural commenced work on what would be one of Budapest's largest shopping malls, Property Investor Europe reported. Etele Plaza will feature a 54,000-square-meter shopping and entertainment space and house 200 retailers.

France

* Marking its exit from the office sector, retail property company MRM sold the Nova office building in Paris to a TwentyTwo Real Estate- and Massena Partners-owned company for €38 million, excluding transfer taxes. The 17-story building includes 10,600 square meters of office area and is 81% leased.

Denmark

* On behalf of its Hines European Value Fund, Hines spent 845 million Danish kroner on the purchase of the five-story Købmagergade 44-46/50 mixed-use property in central Copenhagen from Freja ejendomme.

Other real estate news

* Belgium-based logistics operator Montea Comm. VA became the first company to launch an Airbnb facility for the logistics market by offering vacant storage space at its warehouses through the Stockspots online platform to businesses. The company has introduced the startup in the Netherlands, with plans to expand it further in Belgium and France, according to a release.

* South Africa-listed Investec Australia Property Fund Ltd. is forging ahead with plans to seek a dual listing on the Australian stock exchange and will launch its IPO when market conditions are suitable, according to a release.

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The Daily Dose Europe, Real Estate edition has an editorial deadline of 7 a.m. London time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.

Celestyn Wong contributed to this report.

As of May 16, US$1 was equivalent to 3.59 shekels and 6.32 Danish kroner.