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PATRIZIA bags Dutch portfolio; London hotel sale collapses

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021

Capital Markets View – January 2021


PATRIZIA bags Dutch portfolio; London hotel sale collapses

Banking on Dutch, Irishmarkets

TheDutch rental property market continues to attract foreign investors. Germanproperty investment group PATRIZIAImmobilien AG acquireda large portfolio of 1,275 residential units scattered across the country forabout €150 million, on behalf of an institutional investor.

Thedeal is the biggest of its kind in the past 18 months in the Netherlands, wheredemand for rental homes outstrips supply, DutchNews.nl reported.

Theportfolio is spread across 23 locations, mainly in the Randstad region, andcontains four commercial buildings and 500 parking lots. PATRIZIA has about€1.1 billion of assets under management in the country.

In aseparate deal, PATRIZIA bought The Oval office building in Dublin's Ballsbridgefor €145 million in an off-market transaction.

Deal collapse

*Hong Kong's Cheng family withdrew the Rosewood London hotel from the marketafter receiving indicative bids close to £300 million, lower than theapproximately £450 million price tag the building carried when it was put onthe block earlier in 2016, CoStar U.K. reported.

* Anapproximately €1.2 billion retail property deal between Dutch retail tycoonRonny Rosenbaum and Amsterdam-based insurance asset manager Syntrus Achmea hascollapsed over a pricing disagreement, PIEreported,citing local media reports.

Expanding footprints

*Global property consultancy CBREGroup Inc. agreed to acquireits Norwegian affiliate, Atrium AS, in a move to strengthen its presence in theNordics. The financial terms of the transaction were not disclosed.

*U.S.-based logistics firm PrologisInc. further strengthenedits position in the European market with the acquisition of two warehouses nearRome and a plan to expand its distribution property in the Czech Republic.

*Dubai-based DAMAC Real EstateDevelopment Ltd.'s Damac Properties is looking to expand in Londonand is in talks for its second project in the city, London's Financial Times reported.

*France-based Eurosicis planning to expandin regional French cities where it already has presence as well as otherEuropean countries after its merger with Foncière de Paris. The company alsoplans to grow its footprint in Germany, Spain and Italy via its health care andleisure fund, Eurosic Lagune, and is aiming for a €3 billion portfolio by 2018.

Institutional investors

*Norges Bank Investment Management remains committed to its 5% real estateallocation, according to its Performance and Risk 2015 report.London's Financial Times reportedthat the Norwegian sovereign wealth fund could inject $16 billion into the realestate sector in 2016, after setting a $41.5 billion target for global propertymarkets.

*Canadian pension fund Omers, which owns the Vue cinema chain in the U.K., isworking on a £1 billion bid for Britain's Land Registry, The (U.K.) Sunday Times reported.The agency, valued at£1.2 billion, could be privatized or partially sold, as previously reported.The government may also decide to subcontract operations to a new investor. Anine-week consultation process for the sale has been launched by U.K. Secretaryfor Business, Innovation and Skills Sajid Javid, the report said.

*Hines is teaming up with German pension funds to acquire One Spencer Dock asseton Dublin's North Wall Quay with a €242 million bid, The Irish Times reported.Two other international bidders are also believed to be circling the property.

Eye on earnings

*TLG IMMOBILIEN AGreported a 22.1% year-over-year increase in FFO to €64.0 million for the 2015financial year.

*Alstria office REIT-AGreported a 26.0% year-over-year increase in FFO to €60.0 million for the 2015financial year.

On the policy front

*Developers in the U.K. could be required to sell one home in every five as astarter home, Property Week reported,citing newly published government proposals. Prices on starter homes reflect aminimum 20% discount to market value, targeted to first-time buyers withmoderate incomes.

Therules would apply to housing sites with 10 units or more and are intended tohelp the government meet its aim of building 200,000 starter homes by 2020.

* Inan attempt to clamp down on the booming buy-to-let market, the Bank of Englandmay tighten mortgage lending requirements for borrowers, The (U.K.) Guardian reportedahead of a consultation paper publishedby the central bank and the Prudential Regulation Authority. The Guardiannoted that the bank has concerns over relaxed standards and low interest ratesfor buy-to-let lending, which could potentially create conditions for a propertymarket collapse.

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: S&P Global Market Intelligence presentsa weekly rundown of recent significant management and board changes andpersonnel moves in the European and Asia-Pacific real estate industries.