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Invesco to double European resi portfolio; London Ritz may be up for US$1B sale

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Invesco to double European resi portfolio; London Ritz may be up for US$1B sale

* Invesco Real Estate is preparing to double the size of its European residential portfolio to £4 billion over the next five years, Property Week reported. The U.S. fund manager has £1 billion of assets in the U.K. and £900 million across continental Europe.

Invesco's managing director of residential investments, John German, told the publication at Expo Real in Munich that the build-to-rent sector was of particular interest, with other segments such as student accommodation and retirement living less likely to play a major part in the expansion.

German also added that the expansion is likely to be a 60/40 split between Europe and the U.K. owing to political uncertainties surrounding Brexit.

* David and Frederick Barclay, the owners of The Ritz London hotel, hinted that they are open to selling the property for US$1 billion, Reuters reported, citing a source close to the twins.

Opened in 1906, the high society hotel offers 111 rooms, 25 suites, bars and restaurants as well as the famous Palm Court. The Barclay twins have owned the property since 1995.

* LaSalle Investment Management Inc. is poised to start fundraising for LaSalle Real Estate Debt Strategies IV later in 2019 with a capital goal of €1 billion.

The global real estate investment manager disclosed the fundraising plan, along with a refinancing of three portfolios of last-mile logistics and industrial properties for real estate funds managed by private equity giant Blackstone Group Inc.

LaSalle said it has arranged more than €200 million of mezzanine loans to refinance the portfolios, which include 264 assets in key urban sites across Germany, the Netherlands, France and Denmark. It is providing the financing out of its LaSalle Real Estate Debt Strategies III fund, which closed at more than £800 million in 2017.

UK

* Supermarket Income REIT PLC said it acquired a Sainsbury's supermarket in Cheltenham, Gloucestershire, from Legal & General for £60.4 million, reflecting a net initial yield of 5.25%.

The asset has a 62,000-square-foot net sales area with a 12-pump petrol filling station and more than 390 parking spaces.

* Local Pensions Partnership has begun pooling the property assets of U.K. local authority schemes into a fund that is expected to total £2 billion, according to IPE Real Assets. The LPPI Real Estate Fund has already collected more than £800 million of directly held properties and will likely receive £460 million in indirect investments in the coming months.

Germany

* South Korean investors Samsung Securities Co. Ltd. and KB Securities Co. Ltd. secured a €119.3 million loan from DekaBank to buy a logistics property in Mönchengladbach, PropertyEU reported.

* DIC Asset AG sold two German office buildings in the third quarter for around €71 million from its special funds launched through its GEG German Estate Group subsidiary.

Kontor II in Leipzig was sold to KGAL Investment Management from DIC Asset's DIC Office Balance I fund. The fully occupied complex has a lettable area of 16,800 square meters.

The Schiller 27 office building in Frankfurt was sold to UBS Asset Management from the company's DIC Office Balance II fund. The 3,000-square-meter property has ODDO Seydler Bank AG and Landesbank Baden-Württemberg as its main tenants.

Belgium and Netherlands

* Amundi Real Estate acquired the Marnix office and retail complex in Brussels on behalf of its funds from a group of international investors for an undisclosed sum.

The complex in the Leopold business district has a total rental area of around 23,000 square meters and consists of a nine-story and a seven-story building. Anchor tenants include Deutsche Bank, the World Bank and consulting firm ICF.

* Real estate investment manager Europa Capital acquired a portfolio of six light industrial buildings in the Netherlands from Looijie Properties for an undisclosed sum on behalf of its fund's Dutch Light-Industrial Platform.

Spain

* The Student Hotel Inc. secured €90 million in financing from Santander, Sabadell and HSBC to develop two new hotels in Madrid and Barcelona and to refinance existing assets in Spain. The Student Hotel is embarking on a €2.0 billion accelerated investments program across European markets over the next five years.

* Germany-based KanAm Grund Group acquired a portfolio of seven office buildings in Barcelona for an institutional real estate fund.

The 21,000-square-meter portfolio was bought for an undisclosed amount. The buildings are exclusively let to Generalitat de Catalunya.

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