S&P Global Market Intelligence offers our top picks of European real estate news stories and more published throughout the week.
Go big or go home
* French luxury fashion group LVMH Moët Hennessy Louis Vuitton SE is set to buy British high-end hotel operator Belmond Ltd. in a deal that represents an enterprise value of $3.2 billion and an equity value of $2.6 billion. As of February, the target company operated 46 luxury properties, including hotels, restaurants and train and river cruise assets.
Belmond, formerly Orient-Express Hotels, had launched a strategic review of its business, covering the possibility of a sale, in August.
* London Mayor Sadiq Khan gave his consent for the £2 billion redevelopment of the Elephant & Castle shopping center in South London, the South London Press and Mercury reported. The project will involve the removal of over 100 traders from the retail property, where Delancey plans to develop a total of 979 apartments over 10 years, with 116 units earmarked as "social rented" homes.
* Real estate investment manager Corestate Capital Holding SA will build a €1 billion co-living portfolio across Europe in partnership with co-living concepts provider Medici Living Digital Services GmbH. Over a period of five years, Corestate will identify, acquire and develop sites and properties for its clients in German-speaking countries, Spain and Eastern Europe. The co-living segment will be added to Corestate's Micro Living offering.
* NorthStar Realty Europe Corp. completed the €670 million sale of its largest asset, the Trianon Tower in Frankfurt, to South Korean buyers IGIS Asset Management Co. Ltd. and Hana Financial Investment Co. Ltd. at an approximately 20% internal rate of return. The 68,503-square-meter office tower stands 186 meters tall and offers a total rentable area of 68,000 square meters spread across 46 levels.
* Ibercaja Banco SA is looking to sell its approximately €600 million portfolio of "problem" real estate assets ahead of its planned IPO in the spring of 2019, Spanish daily El Periódico de Aragón reported, citing confirmation from the company. The Spanish bank has engaged investment bank Alantra Partners SA to find a buyer for the properties, which are only some of the real estate assets that Ibercaja plans to dispose before the end of 2018, in a bid to improve profitability and "clean up" its balance sheet.
* Private equity giant Blackstone Group LP completed the €300 million purchase of a Spanish logistics portfolio from retail parks operator Neinver, Property Investor Europe reported. The deal included roughly 162,000 square meters of land and 55 logistics properties, of which about 37 assets were owned by Colver, Neinver's joint venture with U.S.-based real estate investment trust Colony Capital Inc.
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