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AEW unit nets £80.5M from IPO; Lendlease to work on £350M London Google office

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AEW unit nets £80.5M from IPO; Lendlease to work on £350M London Google office

* AEW raised £80.5 million in the initial public offering of AEW UK Long Lease REIT, falling short of the £150 million maximum target that the company set in May.

The new real estate investment trust sold 80.5 million shares at £1 apiece. The REIT also applied for admission of the shares to the London Stock Exchange and expects admission to take effect and dealings in the shares to start June 6.

* Lendlease Corp. Ltd. was appointed to be the main contractor to develop Google Inc.'s new headquarters in King's Cross, London, for an estimated cost of around £350 million. The plans for the building, which could range from seven to 11 floors, have been delivered to Camden Council for approval.


* The Salford City Council will back two office developments in Manchester by forward funding one and taking a long lease on another, Property Week reported.

The council is partnering with Ask Developments and Tristan Capital to fully forward fund the 100 Embankment development. The asset will have a gross development value of approximately £100 million. Additionally, the council will take a 25-year lease on the entire Two New Bailey building, which is being developed by Muse Developments and English Cities Fund.

* Big Yellow Group Plc appointed Vince Niblett as a nonexecutive director and as chairman of the company's audit committee, effective immediately.

* Invesco Real Estate and residential developer Be finalized their first private-rented sector residential project, comprising 119 rental units in Hayes, West London, IPE Real Estate reported. The development was carried out on behalf of the Lancashire County Pension Fund.

* Dubai-based Tilad made its debut in the U.K. housing market with its purchase of the One Queen Caroline Street office asset in Hammersmith, London, from a fund advised by Brockton Capital and Landid, PW reported. The 83,000-square-foot asset, which formerly served as Coca-Cola's U.K. headquarters, was bought for an undisclosed amount.

* House prices in the U.K. rose at an annual rate of 2.1% in May, lower than the estimated 2.4% annual rate and lower than the 2.6% growth rate in April, London's Financial Times reported, citing Nationwide. The decline in growth is believed to be fueling the slump in the U.K. housing market.


* IVG Immobilien AG appointed Rothschild investment bank for the potential sale of its institutional fund subsidiary Triuva, which holds €10 billion worth of assets under management, Property Investor Europe reported. Triuva manages 40 funds with around 300 assets on behalf of more than 100 institutional investors, the report added.

* Sirius Real Estate Ltd. moved forward with €66.4 million worth of property acquisitions and €18 million of mature asset disposals in Germany over the last six weeks.

Nordic Countries

* Ness, Risan & Partners will carry out the final closing of NRP Fund VII after receiving €140 million from domestic investors, PIE reported. The fund has invested €320 million so far to buy four assets in Sweden, Norway and Denmark, and aims to invest €500 million across the Nordic region.

* Agore Kiinteistöt completed the acquisition of a €160 million retail portfolio of assets in Finland in its first-ever deal, according to PIE. The portfolio, which spans 100,000 square meters of gross leasable area spread over eight Finnish cities, was purchased from Elo.

Eastern Europe

* Russia's O1 Group is looking to make a play for IMMOFINANZ AG's portfolio of five shopping centers in Moscow, which have a total book value of just over €997 million as of March-end.

* AFI Europe signed an agreement to off-load the AFI Park office scheme in Bucharest, Romania, in a transaction reported to be valued at €164 million, according to PropertyEU. The deal is understood to be the largest office transaction in the Romanian real estate market.


* Turkish real estate developers Sur Yapi and Ekart Gayrimenkul launched the 75,000-square-meter Sur Yapi Marka shopping center in Bursa, which forms part of a €600 million mixed-use urban quarter project in the city, PIE reported. The mall offers 250 retail units let to tenants including Zara and Adidas, as well as 35 food and beverage outlets.

The Netherlands

* Bouwinvest carried out multiple transactions involving the purchase of residential properties, a hotel, and a retail asset for undisclosed sums, PIE reported. The investment manager acquired 700 residential units across the central and southern Netherlands, and through its Bouwinvest Hotel Fund bought the 7,798-square-meter Boot & Co Hotel development in Amsterdam's Houthaven district. The hotel will offer 84 rooms after its completion in early 2019.

Additionally, Bouwinvest Retail Fund purchased the 11,700-square-meter Oosterheem retail property in Zoetermeer from Wereldhave NV, the report added.

Spain and Portugal

* Wanda Hotel Development Co. Ltd. completed the sale of all the issued shares in Wanda Madrid Development S.L.U. to Baraka Global Invest S.L.U. on June 1, following an extension of the deal completion date in April.

* Resilient REIT and Greenbay Properties Ltd. completed the €219.3 million purchase on a 50/50 shareholding basis of the holding company of two Portuguese shopping malls. The acquisition of Locaviseu – Sociedade de Gestão de Imóveis SA covers the 51,489-square-meter Forum Coimbra and 18,705-square-meter Forum Viseu malls, in Coimbra and Viseu, respectively.

Middle East

* Developer Al Thuriah Properties handed over the freehold Sahara 4 Tower development in the Dubai district of Al Nahda, United Arab Emirates, to residential unit owners ahead of schedule, Arabian Business reported. The 33-story tower had a development cost of 295 million U.A.E. dirhams and offers 300 apartments and other amenities.

Other Real Estate News

* Swiss pension fund ASGA Pensionskasse tapped Stafford Capital Partners to invest US$100 million in timberland and agriculture. The mandate includes a commitment to Stafford International Timberland Fund VIII.

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Data Dispatch: May state of the US housing market: Chart Watch: Home prices continued to rise as housing starts and sales slowed on a month-over-month basis.

Data Dispatch: Jefferies Group initiates 31 new US REIT positions in Q1: Additionally, Heitman Real Estate Securities initiated positions in eight U.S. real estate investment trusts, while AEW Capital Management LP and LaSalle Investment Management Securities initiated positions in three and two REITs, respectively.

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

Celestyn Wong contributed to this report.