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Lloyds Banking Group to buy £3.7B UK mortgage portfolio: JV buys €115M hotels

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* Lloyds Banking Group PLC will acquire Tesco Personal Finance PLC's £3.7 billion U.K. residential mortgage portfolio for a cash consideration of roughly £3.8 billion. The acquisition, which has a purchase price that represents a 2.5% premium on book value, will be funded using existing internal resources, Lloyds said. As part of the transaction, more than 23,000 mortgage customers from the Tesco PLC unit will transition to Halifax, a division of Lloyds unit Bank of Scotland PLC.

* A joint venture between Spain-based Azora Group and Palladium Hotel Group invested €225 million in three hotel complexes in Spain and Italy, IPE Real Assets reported. The acquired properties are the Bless Hotel Ibiza and Fiesta Hotel Tanit, both in Ibiza, Spain, and the Fiesta Sicilia Resort in Cefalú, Sicily, in Italy.

The joint venture, which bought the three hotels for a total of €115 million and made an additional €110 million investment in the form of capital expenditure, intends to invest up to €500 million across Europe and the Mediterranean. Azora and Palladium own 75% and 25% stakes in the joint venture, respectively,

* U.K.-based retail landlord Hammerson PLC and Dutch pension fund asset manager APG Asset Management NV now own a 50% stake each in VIA Outlets after increasing their respective ownership interests by more than 3%. The joint venture partners paid €32 million each to buy Value Retail PLC and Meyer Bergman Ltd. out of the premium outlet center operator. VIA operates 11 premium outlet centers across Europe.

UK

* UBS Asset Management Inc., on behalf of its Triton Property Fund LP, completed the sale of the 45,255-square-foot 99 Clifton St. property in Shoreditch, London, to a private overseas investor for €64.7 million, Europe Real Estate reported. The seven-floor property is let to a global media firm on a 15-year lease at an average rent of over €65.7 per square feet, which corresponds to an annual rent of €3.1 million.

* According to Property Week, flexible office space platform Hubble will list office space provider Knotel's managed offices in London and Manchester on its platform, which will be the first time that Hubble will list managed offices.

* ICAMAP, which holds a 1.28% stake in Atrium European Real Estate Ltd., raised an objection against Atrium's acquisition by Israeli real estate firm Gazit-Globe Ltd., stating that the deal "significantly undervalues" the business, PW reported. According to ICAMAP, a fair value for the deal would represent a per-share price in the range of €4.75 and €5.25, compared to the offered price of €3.75 per share, the publication reported.

* M7 Real Estate Ltd., on behalf of a separate account mandate for a Middle Eastern sovereign wealth investor, purchased 10 industrial and office assets for a total of £29.9 million. The transaction reflects an initial yield of 9% and a capital value of £50 per square foot. The assets, which span roughly 591,000 square feet, include single and multi-let industrial assets across the U.K. in Tunbridge Wells, Letchworth Garden City, Swindon, Warminster, Barnsley, Seaham and Galashiels. The acquisition also includes two office assets in Nottingham and East Kilbride in the U.K.

* Restaurant Group PLC, which has closed 16 sites since January, could shutter around 50% of its remaining 352 properties when lease opportunities arrive in the future, the London Evening Standard reported. The move is linked to the group's "cautious view" on future trading in the midst of Brexit-related uncertainty, dwindling consumer confidence, higher wages and business rates, the publication said.

* According to PropertyEU, Ireland-based Dalata Hotel Group PLC purchased a freehold development site in Shoreditch, London, from property firm Ocubis for a sum amounting to £32 million.

France

* Ovalto Investissement filed a public tender offer followed by a squeeze-out to acquire the remaining shares it does not own in French property group Terreïs. Ovalto is offering to buy 504,114 ordinary shares and 17,052 preferred shares of Terreïs at €34.62 and €38.34 apiece, respectively. The investor owns 96.36% of Terreïs' capital, following a public share buyback tender offer from July 3 to July 23.

Sweden

* CLS Holdings PLC exited Catena AB following the sale of its unit Endicott Sweden AB's entire shareholding in the Swedish property group. Endicott sold 3,971,349 Catena shares for 340 Swedish kronor apiece through an accelerated book-building process. The shares comprise about 10.5% of Catena's total share capital.

CLS, which realized a £15.4 million gain, excluding costs, representing a premium on the valuation of its Catena investment as at June 30, plans to use the sale proceeds to invest in office properties in its core markets in the U.K., Germany and France.

The Netherlands

* According to PropertyEU, a joint venture between Sectie5 Investments and affiliates of Harbert Management Corp. acquired a more than 80,000-square-meter retail portfolio from DELA Vastgoed BV.

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