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A good year for Unibail-Rodamco; IWG buyout talks called off

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.

Moneyball

* Recurring EPS at Unibail-Rodamco SE totaled €12.05 in 2017, rising 7.2% from €11.24 in 2016. Full-year net rental income totaled €1.58 billion, up from €1.53 billion in the year-ago period.

The group anticipates recurring EPS of €12.75 to €12.90 in 2018.

Deal or no deal

* Talks have ended over Canada-based Brookfield Asset Management Inc. and private equity firm Onex Corp.'s potential buyout of serviced office group IWG Plc. IWG previously rejected an offer from the duo that valued the Swiss company at around £2.5 billion. Brookfield and Onex were then reported to have received a deadline extension to make a final buyout offer for IWG.

* Finnish developers Lemminkäinen Oyj and YIT Oyj landed final approval from the Finnish Competition and Consumer Authority for their planned merger, which is set to create a company with preliminary annual revenue of about €3.4 billion. The combination will see the dissolution of Lemminkäinen, with YIT taking on all its assets and liabilities.

Listings lowdown

* Instone Real Estate Capital Gmbh & Co. Kg announced a price range of €21.50 per share to €25.50 per share for its initial share offering and listing on the Frankfurt Stock Exchange. The range translates to a market cap of roughly €795 million to €943 million.

The German company will offer the shares in a private placement with institutional investors from Feb. 2 to Feb. 13. Listing on the Frankfurt bourse is expected Feb. 15.

* In "a negative sign" for Spain's property market, Metrovacesa SA reduced its listing price and postponed its stock market flotation by one day to Feb. 6, Reuters reported.

The Spanish developer cut its per-share listing price to between €16.50 and €17.00 from its previous range of €18.00 to €19.50. The new range values the company at up to €2.57 billion, below its net asset value of €2.69 billion.

Signed, sealed, delivered

* In an off-market transaction, Oxygen Asset Management purchased hedge fund manager Man Group's headquarters building in London for nearly £400 million, reflecting a yield of 3.9%, Property Week reported.

On behalf of a South African client, Evans Randall Investors sold the 320,000-square-foot Riverbank House, at 2 Swan Lane.

* Samsung SRA Asset Management is understood to have bought the 200 Aldersgate office building in London for about £315 million, PW reported. The seller of the 434,000-square-foot property is AshbyCapital, which purchased it for £225 million in 2013.

In view

* European property investor and manager LRC Group is poised to acquire Lone Star Funds' 23 remaining U.K. hotels for around £600 million, Estates Gazette reported.

The deal, which reflects a blended yield of about 7%, marks the exit of private equity giant Lone Star from the U.K. hotel market, the publication noted. The assets are leased to Mercure and Hilton.

* Subject to planning consent, Unite Group Plc will buy a site on London's Middlesex Street for a student accommodation project worth roughly £195 million.

The building will comprise around 1,000 beds and is set to be completed in time for the 2021-2022 academic year.

Featured during the week on S&P Global Market Intelligence

Keeping It Real Estate: German office landlords eye rental growth as vacancy shrinks

Unibail-Rodamco CFO defends pricing of Westfield offer

Amisha Mehta contributed to this report.