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Frasers to splurge in Germany, Austria; Finland sees largest single office deal

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.

Crossing continents

* Singaporean real estate company Frasers Property Ltd. is poised to buy Alpha Industrial GmbH & Co. KG's project and asset management business and 22 of its logistics and industrial properties in Germany and Austria through its Frasers Property Europe subsidiary for roughly €285.2 million.

* AccorHotels is in talks to sell a 15% stake in its property arm, AccorInvest, to the Public Investment Fund of Saudi Arabia, Bloomberg Markets reported, citing unnamed sources. The deal could value AccorInvest at about €6.2 billion, according to the report.

The Saudi Arabian sovereign wealth fund is part of a group eyeing a majority stake in AccorInvest, the newswire said, adding that the group also includes Singaporean sovereign wealth fund GIC Pte., diversified real estate investment trust Colony NorthStar Inc. and French asset manager Amundi SA.

AccorHotels noted in its full-year 2017 earnings release that it is in final-stage talks with "tier-one French and international investors" regarding a partial sale of AccorInvest.

Hot property

* In what is said to be the largest single office deal in Finland, German asset manager Deka Immobilien Investment GMBH paid €190 million to acquire the Töölönlahdenkatu 3 property in Helsinki from Finnish pensions insurer Ilmarinen Mutual Pension Insurance Co., IPE Real Assets reported.

The approximately 15,800-square-meter property is fully occupied and serves as auditing firm KPMG's local headquarters.

* Allianz Real Estate signed a forward deal to acquire the 14-story ATLAS office building in Munich for €190 million from Art-Invest Real Estate GmbH & Co. KG.

* A joint venture between Hyprop Investments Ltd. and PDI Investment Holdings Ltd. acquired a 90% stake in two shopping centers in Zagreb, Croatia, for €154.4 million. The Hystead Ltd. partnership acquired the City Center one Zagreb West and the City Center one Zagreb East, with plans to expand the gross leasable area of both properties. The deal is expected to close at the end of March, subject to approval from the Croatian competition authority.

Wins and losses

* Full-year net profit at French hotelier AccorHotels jumped 66.4% to €441.0 million in 2017 from €265.0 million in 2016.

EBIT rose 23.9% year over year to €492.0 million from €397.0 million, beating the company's forecast of between €460 million and €480 million.

* Gecina's 2017 recurrent net income amounted to €363.5 million, or €5.44 per share, a 4.6% year-over-year rise in the aggregate from €347.4 million, or €5.37 per share.

The French diversified REIT's consolidated net income surged 133.0% to €1.90 billion from €813.5 million in 2016.

* Hospitality giant InterContinental Hotels Group Plc reported full-year 2017 pretax profit of $678 million, up 14.7% from $591 million a year earlier. EPS climbed 20.3% year over year to $2.45 from $2.03.

Revenue totaled $1.78 billion, compared to around $1.72 billion in 2016.

* In Sweden, Fastighets AB Balder registered a net profit after tax attributable to parent company shareholders of about 7.12 billion Swedish kronor, up from around 5.47 billion kronor a year earlier.

* Also reporting its full-year 2017 results was South African commercial property investor and developer NEPI Rockcastle Plc, which logged a loss attributable to equity holders of roughly €579.7 million, compared to a profit of roughly €235.0 million in 2016.

Headline EPS declined to 35 euro cents from 35.72 cents as at Dec. 31, 2016. The company's adjusted net asset value per share climbed 19% year over year to €7.10 from €5.98.

The chosen one

* Australia's Lendlease Corp. Ltd. was selected by British authority High Speed Two (HS2) Ltd. as the master development partner on the £4 billion regeneration of London's Euston station estate. The 54-hectare mixed-use project could deliver up to 1,700 new homes around the station.

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Amisha Mehta contributed to this report.

As of Feb. 22, US$1 was equivalent to about 8.13 Swedish kronor.