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Earnings surge in Germany; €767M Finnish portfolio off the market

S&P Global Market Intelligence offers our top picks of European real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

German moneymaking

* Funds from operations I at Vonovia SE jumped 21% to €920.8 million in 2017 from €760.8 million in 2016. FFO I per share totaled €1.90 compared to €1.63 in 2016.

The European Public Real Estate Association-defined net asset value surged 24.9% to €21.28 billion, or €43.88 per share, from €17.05 billion, or €36.58 per share, a year earlier.

* LEG Immobilien AG logged funds from operations I of €295.3 million for full year 2017, up 10.1% year over year from €268.3 million following a 4.5% rise in net cold rent. FFO I per share amounted to €4.67, up 9.6% from €4.26 in 2016.

Bulking up

* Cibus Nordic Real Estate AB bought a €767 million Finnish property portfolio from Sirius Fund I Grocery and Sirius Fund II. The portfolio features 123 properties anchored by grocery players Kesko, S-Group and Tokmanni.

The real estate company also landed approval to list its shares on Nasdaq First North.

* Eurocommercial Properties NV's portfolio value rose to €4 billion with the completion of its €468 million acquisition of the Woluwe shopping center in Brussels. The deal, agreed to in January, reflects an initial yield of just under 4%. Subject to planning approval, the company will add approximately 10,000 square meters of space to the shopping center.

* Secure Income REIT Plc agreed to buy two property portfolios in the U.K. for a total of £436 million. They include a portfolio of 37 leisure properties at a gross cost of £224 million and a portfolio of 59 Travelodge-leased hotels at a gross cost of £212 million. The two deals represent net initial yields of 5.9% and 6.1%, respectively.

To partially fund the deal, the real estate investment trust plans to raise gross proceeds of £315.5 million through a share placement. The remaining purchase costs will be covered by £128.7 million worth of debt facilities.

On the market

* CBRE Global Investors and Sonae Sierra are looking to sell three Spanish shopping centers for €500 million, PropertyEU reported.

The centers are the 60,000-square-meter Max Centre in Bilbao, the 47,500-square-meter Valle Real in Santander and the 78,000-square-meter GranCasa in Zaragossa.

M&A diaries

* Residential-focused Vonovia is one step closer to acquiring Austrian landlord BUWOG AG after fulfilling one of the conditions outlined in the roughly €5.2 billion deal. The March 5 closing price of the FTSE EPRA/NAREIT Germany Index of 1,094.35 exceeded the required minimum of 999.74 for six consecutive trading days between the release of the offer document and the end of the original acceptance period.

* The Australian Competition and Consumer Commission decided not to oppose France-based AccorHotels' planned A$1.18 billion buyout of Australian hotel and resort operator Mantra Group Ltd.. The deal is now expected to close in May.

On the back burner

* Ireland's Core Industrial REIT Plc shelved plans for a €225 million IPO amid unfavorable market conditions, the Irish Times reported.

The industrial and logistics property company was planning a dual listing in Dublin and London.

Featured during the week on S&P Global Market Intelligence

Keeping It Real Estate: Office investors venture out into Finnish wilderness in hunt for higher yields

German housing giant Vonovia ready to enter French market

Amisha Mehta contributed to this report.