Euro Property articles from August 2006

Euro Property archives from August 2006

Morgan Stanley starts [euro]2bn push into Euro hotels.
August 1, 2006... Sale-and-manage-back deal for seven InterContinental properties is first move in plan to build a [euro]2bn portfolio Morgan Stanley is planning to build up a [euro]2bn European hotels portfolio. The bank's real estate funds business started...

MSS and FTSE vehicle backs UK derivatives trading index.
August 1, 2006... Fund manager MSS Capital and FTSE have launched a UK fund which will back an index for trading property derivatives. Changes in net asset value in the new FTSEpx Fund will be tracked in an index called the FTSE UK Commercial Property Index...

Orion to invest [euro]850m with core pan-European vehicle.
August 1, 2006... Fund manager follows two earlier opportunistic vehicles with a core fund to target office, retail and logistics properties in established western European markets Orion Capital Managers has completed the first closing of its third real...

In brief.
August 1, 2006... SEB sells Baltic banks SEB Bank is to sell a portfolio of 60 Baltic bank branches, which could fetch up to [euro]250m. The portfolio has a lettable area of 110,000m[sup.2] and SEB will lease back around 80% of it. The buildings, in capital...

Merrill and ECE strike [euro]700m deal.
August 1, 2006... Merrill Lynch Global Principal Investments and German developer ECE have bought four shopping centres in Germany for [euro]700m. The centres, sold by Dusseldorf architect Walter Brune, are the 69,953m[sup.2] Rhein-Ruhr-Zentrum in Mulheim;...

Morgan Stanley buys malls in Spain...
August 1, 2006... Morgan Stanley is set to buy SEB Immobilien's Spanish shopping centre portfolio for around [euro]110m. The portfolio comprises the 16,500m[sup.2] El Mirador shopping centre in Cuenca, bought by SEB in 2002 for [euro]35m; the 12,400m[sup.2]...

Sales tax reform causes dip in Italian property market.
August 1, 2006... Italian property stocks dip 20% as tax shake-up is revealed but effects may be limited The Italian property market is on hold while investors wait for the government to reform sales taxes. Italy is to bring its commercial property tax...

RREEF forms Bulgarian development venture.
August 1, 2006... RREEF is making its debut in Bulgaria by forming a joint-venture company with Winslow Developments. The company will be 88% owned by an investment fund managed by RREEF and 12% by Winslow, a Bulgarian developer that has been active in the...

Cordea Savills launches Italian Opportunities fund.
August 1, 2006... Property fund manager Cordea Savills has launched an [euro]800m property vehicle called Italian Opportunities No 1 fund. The venture will target 20% returns and is aimed at institutional and private investors. The initial closing was...

Icade drives [euro]313m Daimler purchase.
August 1, 2006... French Icade has bought a portfolio of German assets from carmaker DaimlerChrysler for [euro]313m, at a net yield of 5.6%. The portfolio consists of four office buildings, two business premises, two business parks and 11 plots of land. The...

Pramerica's Preco 3 raises [euro]2bn to explore alternatives.
August 1, 2006... Preco 3, an opportunistic vehicle targeting 20% returns from alternative property sectors, plans to spend up to [euro]2.1bn on acquisitions in the US and Europe Pramerica Real Estate Investors has closed its third opportunistic fund, Preco...

In brief.
August 1, 2006... Scarborough buys in Germany Scarborough Continental Partners has spent more than [euro]365m in Germany. It bought a [euro]300m portfolio of business parks, warehouse and light industrial property from IVG at a yield above 7% and a...

German REITS face rough route to 2007 launch.
August 1, 2006... The German finance ministry is aiming to introduce a REIT as early as next year, despite scepticism from the property industry. An internal paper revealed plans to send draft legislation to the federal cabinet on 20 September 2006 and for...

Realia keeps Paris deals coming with [euro]151m HQ buy.
August 1, 2006... Spanish property developer Realia has agreed to buy the Lafarge HQ building for [euro]151m. The deal, which reflected a net initial yield of around 5%, shows the continuing strength of the Paris market. The 11,650m[sup.2] building at 61-63...

New Aberdeen vehicles target Netherlands and Nordics.
August 1, 2006... Aberdeen Property investors is launching a [euro]1.5bn vehicle for the Nordic region and a Netherlands fund, the latter after buying 150 town centre shops from Rodamco for [euro]115m. The Aberdeen Property Funds SICAV Pan-Nordic, a semi...

Deka set to offload domestic assets to Guernsey investor.
August 1, 2006... Hannibal portfolio could be next to go as German funds shed problem properties Develica Deutschland is understood to be in the final stage of acquiring a [euro]1bn portfolio called Hannibal from German fund manager Deka Immobilien...

McArthurGlen realises designs on Greek mainland.
August 1, 2006... McArthurGlen has signed an [euro]80m development deal to expand its designer outlet operations into Greece. The outlet centre developer has joined forces with Bluehouse Development to build a centre at Yalou, 25km east of Athens. The outlet...

Arlington launches first of three euro fund of funds.
August 1, 2006... The eurozone fund - which will be semi-open-ended - will invest in sector-specific funds and will target net returns of 10% for investors during its 10-year life Arlington Securities has launched the first leg of a fund of funds trio,...

Allianz calls off property trust flotation.
August 1, 2006... Allianz Global Investors has pulled the flotation of the Allianz Global Investors European Property Trust, citing developments in the global real estate investment trust (REIT) markets. "The books were closed and the deal was 100% covered,"...

In brief.
August 1, 2006... CBRE buys industrial agent CB Richard Ellis has bought UK industrial agency Holley Blake for [euro]17m ($22m). It has also bought two French firms: Corporate Property Management Services, with 65 staff, and Artequation, a project manager...

Catella and Finnish bank team up to build Russian fund.
August 1, 2006... Finnish private bank Evli and property consultant Catella have launched a Russian property fund, EPI Russia I Ky. The fund's investment target will be [euro]300m-400m, including [euro]150m of equity. Its investment strategy will be to...

CMBS market bounces back after slow start to the year.
August 1, 2006... Deutsche Annington residential portfolio is July's biggest securitisation at [euro]5.4bn After a cool first half, the European commercial mortgage-backed securities market heated up last month with [euro]12bn of new issues. The largest...

Moscow deals mark Immoeast debut in Russia.
August 1, 2006... Immoeast, a unit of Austria's Immofinanz, has made its first direct investment in the Russian market. Immoeast has bought two shopping centres in Moscow. No financial details were disclosed, but market sources put the investment volume at...

GE Real Estate cashes in on Casino hypermarket sale.
August 1, 2006... GE Real Estate Central Europe has paid French retailer Casino [euro]555m for 18 Geant stores in Poland. The deal adds to 12 adjoining retail galleries GE bought from Casino in 2003. "The thing about this deal is the synergies," said Karim...

Norgani books into Kapiteeli's hotels with [euro]306m offer.
August 1, 2006... Norgani Hotels has agreed to buy the hotel division of Kapiteeli for [euro]306m. The 15 hotels and a congress centre generated [euro]19.3m in gross rent last year, but the Norwegian listed hotel company believes there is significant rental...

Degi bags Croatian Jankomir shopping mall at 5.8% yield.
August 1, 2006... Fund manager pays [euro]81m for 17,000m[sup.2] shopping centre, hoping for a sales upturn German fund manager Degi has made its debut in Croatia by buying the King Cross Jankomir shopping centre in Zagreb for [euro]81.2m from Italian...

In brief.
August 1, 2006... IXIS AEW gains Finnish assets Finnish retailer Tradeka has sold a 270-asset portfolio to Curzon/Ixis AEW Europe's European Property Investor fund for around [euro]200m. The portfolio consists of hypermarkets, supermarkets and neighbourhood...

Intelligent deals redefine the market.
August 1, 2006... What is real estate? A quick glance at the dictionary suggests: "land, including all inherent natural attributes and man-made improvements of a permanent nature placed thereon". A mouthful, but fairly clear. You might have thought EuroProperty...

RREEF looks for property bargain in Printemps sale.
August 1, 2006... Opportunity fund buys entire French retail chain hoping to rework stores to add value Last month, RREEF's global opportunity fund ventured boldly into private equity territory for the second time in 12 months, when it bought French...

Sinking feeling as floats fail.
August 1, 2006... Market sentiment has turned against the wave of property company flotations seen earlier this year, as investors balk at high management fees and an overheating property sector There has been a flurry of property company flotations in the...

Spanish firms eye up opposition in bids for expansion.
August 1, 2006... Inmocaral's bid for Colonial and Sacresa's battle for Metrovacesa could be the first of many Spanish takeovers, as lack of investment opportunities prompts growth via consolidation The launch of takeover bids for two of Spain's most...

Flurry of pre-summer deals in Sweden.
August 1, 2006... Swedish property investors closed a series of deals ahead of the summer. Blackstone sold six properties to Lensf"rsekringar Liv for SKr1.9bn ([euro]190m). The net initial yield is 5%, but the portfolio includes vacant space. In...

People.
August 1, 2006... Jaworska gains INREV research post INREV, The European Association for Investors in Non-Listed Real Estate Vehicles, has appointed Anna Jaworska as research manager. Jaworska, who will work with INREV's private funds database, has a PhD in...

Heard in the Eurolounge.
August 1, 2006... German offices yet to feel squeeze Knight Frank has found that UK companies are squeezing ever more staff into office space. Typical allocations of 13m[sup.2]-17.6m[sup.2] per person are being cut to 11.1m[sup.2]-12.1m[sup.2]. Landlords'...

Time for politicians to get behind German REITs.
August 1, 2006... Germany will lose out to other investment regimes if it fails to iron out REIT legislation in the next few months The introduction of German REITs is eagerly waited by investors, but is still not realistically within their grasp. If the...

Fabege.
August 1, 2006... A series of aggressive deals and a strategic focus on northern Stockholm have driven strong results, but vacancy rates could present problems Back in 1993, an unknown man from a property company called Oskarsborg made an after-dinner...

Industrial & logistics.
August 1, 2006... Eastern and western Europe are becoming a single, homogeneous industrial and logistics market as yields converge, leases become more flexible and distribution networks expand Logistics and industrial property used to labour under the...

First Atlantic.
August 1, 2006... A partnership with Goldman Sachs' Whitehall Fund has given the Italian fund manager a role in many of the country's largest deals. Now it is launching its own investment company First Atlantic Real Estate is one of Italy's leading asset...

Grupo Santander.
August 1, 2006... Spain's largest bank is taking advantage of changes in the law with a plan for its domestic fund to invest abroad. It is also setting up a [euro]500m fund to target both western and eastern Europe Spain's number one bank, Grupo Santander,...

Borders are no barrier for Europe's portfolio buyers.
August 1, 2006... Multi-country deals are now common in a pan-European market worth n10bn last year Last year, a total of [euro]10bn was invested in the European industrial property market, and according to Jones Lang LaSalle regional director Chris...

Retail and IT trends redraw the logistics map of Europe.
August 1, 2006... Stronger European economies and round of consolidation support take-up of larger units Lettings to logistics operators have generally picked up this year after a lacklustre 2004 and 2005. Across Europe, retail demand has been driving the...

Land and steel hold material challenges for developers.
August 1, 2006... Investors in logistics/industrial assets are hampered by lack of land and rising steel prices Logistics and industrial assets are becoming increasingly mainstream property investments, with yields pretty similar to those for offices....

Key data: Non-listed sector.
August 1, 2006... Matrix launches [euro]1.2bn European property vehicle ECB leaves rates unchanged but warns of inflation threat Last week's meeting of the European Central Bank left interest rates unchanged, but bank president Jean-Claude Trichet said...

Key data: German open-ended funds.
August 1, 2006... Funds experienced total net inflows in June for the first time in months Investors return to international funds For the first time this year, Germany's open-ended funds have achieved a net inflow of capital. The sector collected...

Grosvenor plans [euro]600m Spanish step.
August 1, 2006... Grosvenor has opened a Madrid office as part of its plans to invest [euro]600m in Spain by 2011. The company first invested in Spain 10 years ago and has [euro]900m of Spanish assets under management. Rafael Aviles, managing director of...

Forum Partners.
August 1, 2006... The US fund manager has launched an Asian fund and two European funds. The latter have invested in property companies such as Gecina, Societe Fonciere Lyonnaise and Cofinimmo The name Forum Partners is not well known, but the niche US fund...

Morgan Stanley backs Mines de la Lucette equity raising.
August 1, 2006... French SIIC Mines de la Lucette is raise [euro]328m of equity, most coming from majority owner Morgan Stanley. The capital raising, at [euro]24 per share, will also increase the number of shares in free float from 6.6% to 7.2%. The SIIC has...

Key data: Occupiers.
August 1, 2006... Landlords favour leases more than double those wanted by occupiers Take-up withers in Germany's main cities Leases divide landlords and tenants, survey reveals European landlords and tenants still have divergent views on lease lengths...

Retail and IT trends redraw the logistics map of Europe.
August 1, 2006... Stronger European economies and round of consolidation support take-up of larger units Lettings to logistics operators have generally picked up this year after a lacklustre 2004 and 2005. Across Europe, retail demand has been driving the...

Land and steel hold material challenges for developers.
August 1, 2006... Investors in logistics/industrial assets are hampered by lack of land and rising steel prices Logistics and industrial assets are becoming increasingly mainstream property investments, with yields pretty similar to those for offices....