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Vonovia, BUWOG sign €5.2B merger deal; KPMG selling London HQ for £400M


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Vonovia, BUWOG sign €5.2B merger deal; KPMG selling London HQ for £400M

* Vonovia SE signed an agreement to buy BUWOG AG's outstanding shares at €29.05 per share, in a deal valuing the latter at roughly €5.2 billion. Vonovia's offer represents an 18.1% premium over BUWOG's Dec. 15 closing price on the Vienna Stock Exchange.

In a separate release, BUWOG said its supervisory and management boards support the takeover offer.

* KPMG agreed to a roughly £400 million deal with Hong Kong-based Kingboard Chemical Holdings Ltd.'s subsidiary, Kingboard Investments, for the sale of its 14-story London headquarters. KPMG will enter into a 25-year lease for the 434,261-square-foot asset at 15 Canada Square in Canary Wharf, upon closing of the transaction in January 2018.

UK and Ireland

* City Developments Ltd. is standing firm on not raising its £6.20-per-share final buyout offer for Millennium & Copthorne Hotels Plc, calling on the latter's shareholders to consider the "very material premium and value" accessible to them under the offer. A group of minority investors in Millennium recently rejected City Developments' upsized takeover bid, urging fellow investors to follow suit to block the suitor.

* Hibernia REIT Plc sold the Chancery property in central Dublin for €23.8 million, representing a blended net initial yield of 5.9%. The asset on Chancery Lane features 35,000 square feet of office area and four apartment units. The building is fully leased to the Office of Public Works, Wella and Analytic Partners, among other tenants, generating €1.5 million yearly in rental income.

* Manchester-based developer MCR is seeking approval for the construction of a £275 million build-to-rent project in Birmingham's Southside district in the U.K., Construction Enquirer reported. A vacant building on the site will be demolished to pave the way for the 1,000-apartment complex, which will include a 26-floor building and a 29-story tower. The project is estimated to be completed in 2023, the report added.

* Legal & General bought a 78-acre residential site in Shrivenham, Oxfordshire, U.K., which has outline planning in place for a 515-home development at a gross value of over £150 million, Property Week reported. According to the plan, 180 units in the project are set to be affordable homes constructed inside the company's modular construction factory in Leeds.

* M7 Real Estate paid £117 million to purchase the Marble Portfolio and the M7 REIP II fund, which comprise 92 regional multilet assets, PW reported. The acquisition involves 3.33 million square feet of industrial space, as well as office and retail area, and was carried out on behalf of M7 Real Estate Investment Holdings, the report noted.

* Strawberry Star is purchasing five grade A office buildings at the £1.7 billion Royal Albert Dock scheme in east London, which will provide about 100,000 square feet of space, from ABP, PW reported. The buyer has already entered into an agreement to acquire the first two buildings for a sum upward of £23 million, according to the report.

* Green REIT Plc confirmed Rosheen McGuckian as a nonexecutive director and member of the board's audit committee, effective Jan. 1, 2018.


* Icade unit Icade Santé purchased the Clinique de l'Europe healthcare facility in Rouen for €87.2 million. The facility accommodates 370 inpatient and outpatient beds and spans 23,500 square meters of space.


* Immobiliare Grande Distribuzione SIIQ SpA has scheduled an extraordinary meeting of its shareholders Jan. 18, 2018, to solicit approval on a proposal to increase its share capital by up to €150.0 million, a figure which includes any of its share premiums.

Nordic countries

* Savills Investment Management formed a new Nordic region-focused retail fund that raised €110 million ahead of its first close. The Nordic Fund III – Retail fund invests in high-street retail assets, retail centers and warehouses, and retail parks across Sweden, Denmark, Norway and Finland.

Additionally, the investment manager acquired from IKEA Centres four Swedish retail parks next to IKEA stores as the fund's seed assets for roughly €130 million.

Middle East

* UAE-based developer MAG Lifestyle Development is on track to allow customers to buy properties using the first Sharia-compliant cryptocurrency, OneGram, Arabian Business reported. The developer will offer a 5% discount to investors purchasing real estate using the digital currency, the report noted.

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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.