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Dubai developers prep for Expo 2020; Frankfurt tower changes hands for €800M


According to Market Intelligence, December 2022


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Dubai developers prep for Expo 2020; Frankfurt tower changes hands for €800M

S&P Global Market Intelligence offers our top picks of European real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Towering deal

* In what is considered to be one of Germany's largest-ever single-asset deals, Deka Immobilien is the chosen buyer of Europaviertel-Tower 185 in Frankfurt, PropertyEU reported, citing EuroProperty. The company is acquiring the 104,000-square-meter tower for roughly €800 million.

CA Immobilien Anlagen AG holds a 33% interest in the 50-story office asset, with a pair of German pension funds owning the remaining stakes. The partnership placed the asset on the market in May.

Numbers game

* As a result of a 2.2% growth in room rates, InterContinental Hotels Group Plc logged a 2.3% year-over-year rise in global comparable revenue per available room for the third quarter. During the three-month period, the company opened 11,000 rooms across 70 hotels and sold 3,000 rooms in 19 hotels.

* AccorHotels saw "solid growth" in its new business and HotelServices business during the third quarter, leading to a like-for-like increase of 6.4% in revenues to €504 million. CEO and Chairman Sébastien Bazin noted that "in the course of the quarter, our hotel base crossed the symbolic mark of 600,000 rooms and our pipeline reached a record level." The company recently agreed to acquire Mantra Group Ltd. in a deal worth A$1.18 billion.

* Gecina's gross rental income reached €379.0 million as of Sept. 30, marking a 1.8% rise on a like-for-like basis but a 9.6% decline on a current basis from the same period in 2016. The company recorded gross revenues of €383.9 million as of September-end, representing a 1.8% increase on a like-for-like basis and an 8.4% fall on a current basis compared to the previous year.

* SEGRO Plc said it has contracted rental income for the third quarter of £8.8 million, down from £13.5 million in the same period in 2016. The company expects to receive £12 million of headline rent from the 313,000 square meters of fully leased developments finalized during the quarter.

Blackstone checks in

* Blackstone Group LP is buying Banco de Sabadell SA's Spanish hospitality business for €630.7 million through Blackstone Real Estate Partners Europe V. HI Partners' portfolio includes more than 3,700 rooms across 14 primarily coastal hotels in tourism sites across Spain. HI Partners was valued at about €1 billion.

Across the continents

* AccorHotels, InterContinental, Marriott International Inc., Hyatt Hotels Corp. and ClubCorp, the founding shareholders of Avendra LLC, are selling the company to Aramark for $1.35 billion. Avendra is a North American hospitality procurement services provider, serving 8,500 hotels and other hospitality businesses in the country. The shareholders stand to receive cash proceeds of approximately $1.18 billion from the sale.

* Kennedy-Wilson Holdings Inc.'s acquisition of Kennedy Wilson Europe Real Estate became fully unconditional Oct. 18 after receiving authorization from the Royal Court of Jersey. The merger is expected to become effective Oct. 20.

Deep pockets

* Prologis Inc. merged its Prologis Targeted Europe Logistics Fund and Prologis European Properties Fund II to create the €8.2 billion Prologis European Logistics Fund, which covers 106 million square feet across 12 countries. Prologis will own 26% of the new fund.

* Eurocommercial Properties NV is in exclusive talks and is conducting due diligence for the acquisition of the Woluwe shopping center in Brussels for €468 million. The company is looking to sign the agreement by the end of November, under which it will buy 23,000 square meters of lettable area, including the public mall, parking levels and surrounding land.

* Swedish real estate company Heimstaden's unit Heimstaden Bostad secured a loan totaling 1.4 billion Swedish kronor for the acquisition of a 57,000-square-meter residential portfolio comprising more than 1,100 units in Stockholm, Property Investor Europe reported. The loan was provided by Germany's pbb Deutsche Pfandbriefbank and will mature in five years.

Prepping for Expo 2020

* Dubai Holding LLC shelved plans for its $20 billion Jumeirah Central office, retail and residential project in Dubai to focus on projects that need to be ready in time for the World Expo 2020 exhibition. The company is now looking to complete its 6.3 billion-United-Arab-Emirates-dirham Marsa Al Arab tourist resort, which spans 4 million square feet.

* Azizi Developments will commence construction on its proposed 25 billion-dirham mega community project in central Dubai in November, which will be completed before the city hosts the Expo 2020 event, Arabian Business reported.

From France to Germany

* Germany's Vonovia SE has teamed up with the largest residential landlord in France, Société Nationale Immobilière, to explore common ground for future cooperation after entering into a memorandum of understanding. The duo will explore potential cross-border investments, identify potential methods of saving energy and exchange information about portfolio management, among other things.

New beginnings

* Swedish asset manager Catella formed a new real estate company, which it plans to list on Nasdaq First North in Stockholm upon completion of a Swedish portfolio purchase. Roughly 200 investors subscribed for Tre Kronor Property Investment AB shares, raising 355 million Swedish kronor. The new company acquired a portfolio of 72 retail properties in southern Sweden from Granen via a subsidiary.

* Saudi Arabia's sovereign wealth fund Public Investment Fund has established a real estate refinance company, to improve domestic real estate performance and to raise the rate of home ownership among Saudis to 52% by 2020-end.

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Aimen Hakim and Joyce Guevarra contributed to this report.