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iQ Student buys Regent portfolio for £869M; Hispania Activos signs €165M deal


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iQ Student buys Regent portfolio for £869M; Hispania Activos signs €165M deal

* iQ Student Accommodation acquired the 11-building, 3,644-room Pure Student Living business from LetterOne Treasury Services for £869 million. The business, which is also known as the Regent portfolio, is spread across London, Edinburgh, York, Bath and Brighton.

The buyer will rank as the second largest provider of purpose built student accommodation in the U.K. following the acquisition with a portfolio valued at £3.2 billion, the report noted. The acquired properties will be rebranded as iQ in spring 2018.

* Hispania Activos Inmobiliarios signed a €165 million deal with private equity firm Alchemy to acquire a seven-property Spanish hotel portfolio of the Alua Hotels & Resorts chain. The portfolio comprises more than 1,700 keys across the Balearic Islands and Canary Islands and the deal is expected to be finalized by the end of February 2018.

UK and Ireland

* City Developments Ltd. set the first closing date for its final buyout offer of its £6.20 per share for the shares it or its subsidiaries do not already own in Millennium & Copthorne Hotels Plc. Millennium shareholders have until Jan. 23, 2018, to accept the bid, which values the hotel company at roughly £2.01 billion.

* Aviva Investors provided Lazari Investments with two loans totaling £145 million. The £90 million 10-year fixed-rate loan will be used to help finance the company's acquisition of a central London office block and the £55 million 12-year fixed-rate loan will be used to refinance the mortgage maturing in 2018.

* Moda, which recently rebranded from Moda Living, obtained planning permission for what will be the tallest residential building in Birmingham, U.K., Property Week reported. The 42-story, 481-unit build-to-rent apartment tower is a part of the developer's £183 million Broad Street scheme, according to the report. The project, called 2one2, will also include a number of amenities.

* Legal & General purchased five student housing blocks and a 36,000-square-foot academic facility at Exeter University in southwest England for a total of £76 million, IPE Real Assets reported. The assets were acquired for two separate funds, Legal & General UK Property Fund and Limited Price Inflation Income Property Fund, the report noted.

* Carra Shore filed new plans for a 10-story, 421-bedroom hotel development near the Dublin Airport that is expected to "cost tens of millions of euro," after An Bord Pleanála blocked initial plans for the project in October, the Irish Independent reported. The original plan, which received Fingal County Council's approval in April, included a 427-bedroom hotel on the site.

* Commercial property investments in Ireland amounted to more than €2.5 billion so far in 2017, with transactions in the hotel sector totaling €600 million during the period, The Irish Times reported.

Nordic countries

* Entra ASA is divesting Middelthuns Gate 29 in Oslo and Tungasletta 2 in Trondheim, Norway, in two separate transactions based on property values of 1.27 billion Norwegian kroner and 180 million kroner, respectively. Middelthuns Gate 29 Holding AS is buying the Oslo property, while the Trondheim asset is being acquired by Tunga Holding AS.

* Klövern AB signed an agreement to sell the Hästägaren 3 logistics property in Mölndal, Sweden, for 643 million Swedish kronor. The asset features a net lettable area of roughly 48,000 square meters and primarily houses KappAhl's central warehouse and head office.

* Citycon Oyj spent roughly €60 million to buy the second and the largest part of the Straedet shopping center in the Greater Copenhagen area. The company bought the asset's first portion in July for about €12 million and it is expected that the final part will be acquired in the second quarter of 2018.

Portugal and Spain

* MERLIN Properties paid €60.3 million for the acquisition of the 10-story Marques de Pombal 3 building in Lisbon's prime central business district from Novo Banco, marking a 4.0% gross yield on current occupancy and a 6.5% estimated rental value yield.

* Investment in the Spanish real estate market is estimated to reach the highest in 2017 since the 2007 property bubble, with commercial real estate investment projected to be strong in 2018, Bloomberg News reported, citing Savills Plc. The recovery is driven by banks clearing their balance sheets of foreclosed assets and attracting foreign investors to heavily discounted properties, the report noted.


* DIC Asset AG bought an office property in Munich and three buildings in Eschborn, for more than €100 million and sold two joint venture properties in Hamburg and Frankfurt for a total of €22.6 million.

The Netherlands

* Hannover Leasing purchased the Cloud office complex in Amsterdam for an Amundi Real Estate retail fund and Finnish pension fund Ilmarinen, for a sum reported to be in the low three-digit million-euro range, PIE reported. Amsterdam-based Impact Vastgoed and Cairn Real Estate sold the asset on behalf of an international investor. The five-story asset was recently remodeled and offers 23,700 square meters of floor space, according to the report.


* Redefine Properties Ltd. has called for the resignation of Echo Polska Properties NV nonexecutive director, Przemyslaw Krych, who was detained by the Central Anti-Corruption Bureau of Poland. Redefine noted that Krych was not involved in the daily activities of Echo Polska, adding that the bureau's investigation relates to him in a personal capacity, rather than to his role at the company.

Other real estate news

* BR Malls Participações SA sold its 50% interest in Natal Shopping, in Brazil's Natal city, for 166.3 million Brazilian reais. The deal is expected to close March 6, 2018, and represents a post-tax cap rate of 8.7%.

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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.

Anusha Iyer and Saadoon Minhas contributed to this report.

As of Dec. 21, US$1 was equivalent to 8.38 Norwegian kroner, 8.40 Swedish kronor and 3.31 Brazilian reais.