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Derwent London expects £59M cut in portfolio value; UK to get £1B loan for affordable housing

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Derwent London expects £59M cut in portfolio value; UK to get £1B loan for affordable housing

* DerwentLondon Plc saidthe recent increase in stamp duty on larger commercial properties is expectedto reduce the value of its portfolio as at December 2015 by about £59 million.

However, the developer said that despite this negativeimpact, the central London office market continued to grow in the firstquarter.

Also in reporting its first-quarter business update, thecompany said that it has leased or pre-let 185,400 square feet of space,year-to-date, translating to £13.2 million per year of rental income.

* The European Investment Bank has agreed to providefinancing to the tune of £1 billion for the development of affordable housingin the U.K., London's Financial Timesreported.The loan will be used for the construction of 20,000 new homes.

The bank has also warned that the U.K.'s exit from theEuropean Union may affect its activities in the country.

* Kennedy WilsonEurope Real Estate Plc saidit completed the £82 million purchase of Towers Business Park in southManchester, U.K. The deal reflects a topped-up yield on cost of 6.7%.

* Separately, the company saidit paid a total of €76.9 million for two suburban office assets in Sandyfordand Blackrock in south Dublin, namely the Chase in Sandyford and three officebuildings at Blackrock Business Park.

U.K. and Ireland

* Prologis Inc.has leased 386,753 square feet of space at its Crossflow380 building in Crewe,U.K., to domestic appliance retailer AO.com on a 10-year term, Property Week reported.

* JLL is marketing for lease BP's 173,676 square feet ofoffices in the U.K.'s South East, CoStar U.K. reported.The properties are the 137,127-square-foot Two New Square and the36,549-square-foot One New Square at the 250 acre Bedfont Lakes business parkin Feltham near Heathrow.

* Greenridge has paid £77 million for the Europeanheadquarters of U.S. firm 3M in Bracknell, U.K., Property Week reported.Aprirose sold the 172,000-square-foot office building.

* Heyford Developments and UK Land and Development havesubmitted plans for 2,800 homes on a 336-acre green belt site in Webheath inthe U.K.'s West Midlands, Property Weekreported.The proposals include a mix of flats, one- to five-bedroom family houses,school, 130 acres of open space, a mixed-use community facility and retailunits.

* Regional high street retail investment outside centralLondon dipped 10% year over year during the first quarter, Property Week reported,citing Cushman & Wakefield. Deals during the quarter, however, "exceededexpectations" with 44 assets changing hands for a combined £255 millionindicating "minimal impact" from any Brexit concerns, the publicationnoted.

* Global capital investment in London's office markettotaled £3.5 billion in the first quarter, down 14% from the end of 2015, buton par with the year-ago quarter, CoStar U.K. reported,citing CBRE.

International investors accounted for 67% of alltransactions compared to 71% in the fourth quarter of 2015.

* According to the Office of National Statistics, first-timehome buyers spent an average £395,000 to buy a home in London during the fourthquarter of 2015, nearly £100,000 more than five years ago, Bloomberg News reported.

London's residential property prices jumped to £524,000 inthe 12 months through February, up 9.7%, according to the report.

* Colliers International expects headline office rents inManchester city center, U.K., to hit £40 per square foot by 2019, Property Week reported.At the end of 2015, top rent in the area was at £34 per square foot.

* According to MSCI's IPD UK Quarterly Property Index, U.K.property values fell 0.1% during the first quarter, with retail investmentsdecreasing 0.7%, Property Week reported.On the other hand, the values of office and industrial properties rose 0.4% and0.2%, respectively.

* The 52,000-square-foot Harbourmaster III office block incentral Dublin has traded for "a little over" €40 million, the Irish Independent reported.It was bought by a fund tied to Italian bank Intesa Sanpaulo, which plans toconsolidate its Dublin operations into the building, the newspaper added.

Sweden

* CLS HoldingsPlc exitedSweden with the sale of an investment property in Vänersborg for 590 millionSwedish kronor.

The company said in a filing that it completed the disposalof the Vänerparken asset, which is a 418,800-square-foot mixed-use complex.Bengt Linden AB acquired the property, which has office, educational,residential, leisure and medical facilities.

Russia

* Kari Inkinen, the president and CEO of , in the company's earnings call thatthe company is still in negotiations for the disposal of its Russian assets.Inkinen said that the sentiment in the country is "slightly improving"as the ruble has been fairly stable.

Spain

* Phone company Telefonica is landing bids for two officebuildings in Madrid's city center, PropertyInvestor Europe reported,citing Spanish newspaper El Confidencial.Telefonica is selling both buildings, measuring 10,000 square meters and 7,000square meters, respectively, as a single lot, for more than €50 million,according to the report.

Germany and France

* Gramercy Europe Ltd., a subsidiary of , isbuying a 20% stake in a portfolio of nine logistic warehouses, of which eightare in Germany and one is in France.

The stake is being sold by Goodman Europe Development Trust.Gramercy Property Trust owns the remaining 80% of the portfolio.

The portfolio has a total space of 499,000 square meters andis 100% let. The deal is expected to close by May 31, according to a newsrelease.

* Warburg-HIH Invest Real Estate has set up two local retailfunds each targeting €400 million to €450 million, PIE reported.

Switzerland

On the back of stagnating prices, weak demand for investmentproperties and slower growth in loans, the UBS Swiss Real Estate Bubble Index droppedin the January to March period, the first decline in two years, Bloomberg News reported.

Now featured

IPO Monitorfor the week ending May 4: Dalian Wanda Commercial Properties'consideration of a backdoor listing in Shanghai and IPO news from Turkey andSouth Korea made waves during the week.

The Daily Dose Europe,Real Estate edition, is updated as of 6:30 am London time. Some links require asubscription. Articles and links are correct as of publication time.