Euro Property articles from October 2005

Euro Property archives from October 2005

Metro to spin off DIY stores in hot German market.
October 1, 2005... Portfolio of 53 DIY stores is expected to fetch more than [euro]500m as international investors target German retail German retailer Metro is selling a [euro]500m property portfolio occupied by its DIY chain Praktiker. The portfolio contains 53...

Bids reach [euro]1bn in contest for Hessen state's portfolio.
October 1, 2005... Bids of [euro]1bn have gone in for a public property portfolio owned by the German state of Hessen, in a sale-and-leaseback process managed by CB Richard Ellis and PricewaterhouseCoopers. The state is selling assets worth [euro]800m to cut a...

Bear Stearns venture set to finance property deals.
October 1, 2005... Bear Stearns has launched the Real Estate Principle Investments Group, which will structure property deals across the UK and continental Europe. The group will mainly focus on deals with asset values of at least [euro]100m. Bear Stearns will...

Degi and M&G ready to go global with fund launches.
October 1, 2005... Degi plans [euro]1.8bn mixed property fund while M&G's vehicle has a [euro]1bn target value Two of Europe's largest fund managers are set to launch global property funds. German fund manager Degi is to launch a new open-ended fund, Degi Global...

Invesco vehicle eyes Euro hotels.
October 1, 2005... Invesco has launched a hotel fund, known as the Invesco Hotel Real Estate fund, which will buy mid-market hotels in the main European markets. The closed-end fund, which will have a 10-year duration, is expected to raise [euro]150m-200m in...

Hughes takes charge of JLL in Europe.
October 1, 2005... Jones Lang LaSalle has appointed Alastair Hughes as chief executive officer of its European business. Hughes, who runs JLL's English business, will also become a member of the firm's global executive committee. In Europe, JLL employs 2,900...

Aareal supplies [euro]100m for Sharia logistics fund.
October 1, 2005... Aareal Bank is to finance and structure a Sharia-compliant vehicle, the Queristics Fund, which will purchase a portfolio of pan-European logistics warehouse and distribution properties. The bank has agreed to supply up to [euro]100m of finance....

Merrill Lynch plans first securitisation of German loans.
October 1, 2005... US investor plans issue based on [euro]1.4bn loan portfolio Merrill Lynch is considering a securitision of the [euro]1.4bn non-performing loans portfolio it bought from Dresdner Bank with US investor Lone Star in June. "If the outcome of these...

In brief.
October 1, 2005... Finnish HQ hits the market The 16,000m[sup.2] headquarters of Finnish chemical company Kemira has been put on the market and is expected to fetch between [euro]30m and [euro]40m. The building, built in 1986, is opposite the HQ of Finnish...

Deka Bank restructuring shrinks open-ended funds.
October 1, 2005... Deka Bank has unveiled a radical overhaul of its open-ended property funds. The German bank said it will continue to support the funds and guarantee a minimum return of 2% in its German fund, Deka-ImmobilienFonds, while cutting the fund's size...

Tishman Speyer acquires DB building in Dusseldorf.
October 1, 2005... Blackstone Real Estate Group has sold the Deutsche Bank Carree building in Dusseldorf to Tishman Speyer. No financial details were disclosed, but a market source put the price at around [euro]170m. The 54,000m[sup.2] building is on the...

Doughty fails to turn profit from German homes sale.
October 1, 2005... US investor disposes of residential portfolio after failing to persuade tenants to buy Doughty Hanson has sold a portfolio of 1,200 German homes to rival opportunity fund manager Cerberus, after plans to sell the properties to their tenants...

Skandia joins LaSalle for global securities launch.
October 1, 2005... Skandia Investment Management (SIML) and LaSalle Investment Management (Securities) are to launch a global real estate securities fund this month. The open-ended Skandia Global Property Securities (LaSalle) fund will be 50% allocated to the US,...

France's CDC prepares spring flotation for property arm.
October 1, 2005... Caisse des Depots et Consignations (CDC), the French state-owned financial services group, is planning to list its property and construction subsidiary Icade next Spring. Francis Mayer, chief executive of CDC, said: "The time has come to allow...

IPF highlights appetite for derivatives.
October 1, 2005... Property derivatives are taking off in the UK, according to research by the Investment Property Forum. Charles Follows, research director at the IPF, said: "Our survey shows that larger investors are enthusiastically embracing property...

KanAm and Difa strike Paris and London deals.
October 1, 2005... KanAm has sold two Parisian properties for [euro]36m, netting a 23% profit. The German open-ended fund sold 1 rue de Gramont and 15 rue du 4 Septembre, which it purchased three years ago. Separately, Difa has bought the Radisson SAS hotel at...

Fears for IPD's independence as Bernerd gains 10% share.
October 1, 2005... Group of investors aims to buy further stakes to be placed in a trust, preserving the independence of IPD's data, after ex Chelsfield chairman gains stake in databank Investors have expressed worries over the independence of Investment Property...

Henderson picks head of Italy team.
October 1, 2005... Henderson Global Investors has appointed Andrea Orsa as head of its property team based in Milan. Neil Varnham, director of retail property for Europe, said: "I am delighted that Andrea is joining our team. With his profile and experience he...

MSREF trades with partner in Germany.
October 1, 2005... Morgan Stanley Real Estate Funds (MSREF) has paid [euro]60m for two stakes in German assets bought by its partner Deutsche Immobilien Chancen (DIC). In Hamburg, MSREF bought a 50% stake in the offices housing eBay's German headquarters. In...

ING director resigns over delays on Zlote Tarasy.
October 1, 2005... Paul Trip has resigned from ING Real Estate's board following delays in completing the Zlote Tarasy shopping centre in Warsaw. ING said Trip wanted to "accept responsibility for the disappointing results of the project". Trip has now been...

Citycon ups Swedish retail exposure.
October 1, 2005... Finnish retail investor Citycon has paid SKr256.3m ([euro]27.6m) for three Swedish retail properties totalling 26,400m[sup.2], in Kallhell, Akermyntan and Fruengen, at a net initial yield of 7.7%. Citycon also paid [euro]18.7m for a 33.1% stake...

Grosvenor goes Dutch in France.
October 1, 2005... Grosvenor Continental (GC) has joined forces with Dutch public pension fund ABP to build a [euro]250m portfolio of core office assets in France's main cities. This first venture between Grosvenor and ABP marks the private property company's...

Colonial swaps 6.2% stake in deal for seven Madrid offices.
October 1, 2005... Inmobiliaria Colonial offers insurer Mutua Madrilena shares in part exchange for seven office buildings, as analysts report a resurgence in Madrid's office market Inmobiliaria Colonial has agreed to buy seven Madrid office buildings valued at...

French healthcare group plans [euro]400m disposal operation.
October 1, 2005... French listed private healthcare group Generale de Sante is planning to spin off [euro]400m of its property assets. The disposal is scheduled to happen in two tranches of [euro]100m and [euro]300m. But while the hospital assets' book value is...

ITN building makes the news with [pounds sterling]112m sale.
October 1, 2005... Doughty Hanson has sold the landmark ITN building at 200 Gray's Inn Road in London for [pounds sterling]112m to Catalyst Capital. The fund manager bought the 26,010m[sup.2] ITN building in April 2001 for its European Real Estate Fund I and...

Henderson's Herald targets high European retail returns.
October 1, 2005... The fund, which aims to raise [euro]250m of its equity target this year, will employ active management to seek annual income returns of 9% from retail assets across Europe Henderson Global Investors is to launch a [euro]1bn pan-European retail...

Macquarie plans UK fund through Akeler.
October 1, 2005... UK office and business park developer Akeler plans to create a [pounds sterling]500m UK office and business park fund in a joint venture with Australia's Macquarie Bank. The fund is part of Macquarie's plan to expand its European property...

Manchester office park attracts generous price.
October 1, 2005... Dutch property company Wereldhave has bought the Towers Business Park in Didsbury, Manchester, from UK pension fund manager Hermes for [pounds sterling]7m above the asking price. The 27,000m[sup.2] park was originally marketed for [pounds...

National borders are taxing problem for European REITs.
October 1, 2005... Many national REIT regimes break EU treaty agreements, a Dutch law firm has reported EPRA has called for the creation of a Europe-wide real estate investment trust (REIT) structure to help individual member states' REIT regimes comply with EU...

Markets bow to no statistical standard.
October 1, 2005... What's a prime net yield in Barcelona? How big is the London office market? What is the vacancy rate in Hamburg? The answers to all these questions depends on who you ask. Furthermore, if you repeat those questions for a number of other...

People.
October 1, 2005... Rowson gains new ING REIM role Will Rowson has been appointed managing director of European acquisitions at ING Real Estate. In the newly created role Rowson will be responsible for all of ING REIM's continental European property and portfolio...

Property's golden age is built on income returns.
October 1, 2005... Property has been going through a period of strong returns, but still has far to go to become a mainstream asset class As we head towards the end of an excellent year for property, it is worth reflecting on the long-term implications for the...

Merrill Lynch GPI.
October 1, 2005... Merrill Lynch's Global Principle Investments group is becoming a more active property investor in Europe and has already spent [euro]2bn this year Merrill Lynch is one of the best known names in global finance, but it has not had such a...

London & Regional.
October 1, 2005... The UK-based private property company, run by the Livingstone brothers, concentrates on development in the UK, and in Germany plans to spend [euro]1bn by 2006 to expand its holdings London & Regional is not your average property company. For a...

Germany.
October 1, 2005... Despite an economy in the doldrums since 2000, Germany has remained popular with investors tempted by large and diverse portfolios, and the feeling than an upturn is due When Cushman & Wakefield Healey & Baker organised a lunch seminar in June...

Banks hold the key when monster investments fail.
October 1, 2005... The rise of non-recourse lending could leave banks with liability for funds' property failures While property investors are on a buying spree in Germany, the country's domestic banks are playing only a small role in financing these deals. Most...

Key data: German open-ended funds.
October 1, 2005... ■ Capital inflows remained positive in August ■ Product shortage causes DB to look at infrastructure investment ■ Germany's private individuals poured money into all asset classes in August. With net inflows of [euro]2.6bn,...

Yields have further to fall, predicts DTZ.
October 1, 2005... Continuing yield compression across European property markets is sustainable in the light of low interest rates and improving transparency, according to a study by DTZ Research. Yields fell across key European markets by an average of 26 basis...

Agents aim to get a better measure of market statistics.
October 1, 2005... Agents' differing definitions of basic terms such as yields and vacancy rates make it hard for investors to compare market data, but there are moves afoot to standardise the terms used Which is the bigger office market, London or Paris? As with...

Unlisted fund managers fail to notice creeping fees rise.
October 1, 2005... Survey for INREV finds figures contradict managers' belief that fund fees have been falling Management fees for unlisted property funds have increased over the past two years in contrast with anecdotal evidence, according to the latest fees...

GIC Real Estate.
October 1, 2005... The property arm of the Government of Singapore Investment Corporation has increased its exposure to European property, having spent more than [pounds sterling]1bn in the UK alone so far this year The Government of Singapore Investment...

Grosvenor Continental Europe.
October 1, 2005... The UK private property company's continental arm is planning to invest [euro]800m in France, the Iberian peninsular and Italy. Its main focus is retail, but it is now eyeing other sectors Grosvenor Continental Europe is branching out - after...

Immoeast.
October 1, 2005... The Austrian investor has the advantage of being one of the first to enter central and eastern European markets. The company has [euro]1.2bn in cash to spend on boosting its portfolio's value Austria's Immoeast recently received a strong buy...

Portfolio buyers face awkward home truths.
October 1, 2005... Investors are still keen to buy public housing from cash-strapped German authorities, but some buyers' experience suggests it may prove tough to gain good returns from the assets Doughty Hanson has just sold 1,200 Berlin homes it bought four...

Investors defy downturn to shop for property bargains.
October 1, 2005... Consumers may be cutting back but investors believe the time is right to buy German retail "The German economy has traditionally been robust. It has been in the doldrums for the past three to four years, but a country that size has to have an...

A five-way fight for recovery.
October 1, 2005... Competition to attract office occupiers is hotting up between the five main German cities, as market watchers predict that with the economy now at rock bottom, the only way is up Germany doesn't have one main office market, such as Paris or...

Key data: INREV.
October 1, 2005... Core strategies still rule in unlisted vehicles sector Core funds still dominate the latest updated INREV database. Even setting aside German open-ended funds, which favour core strategies, core funds outnumber value-added and opportunity funds...

Key data: The listed sector.
October 1, 2005... ■ Sweden's previously strong listed sector goes into sharp reverse ■ The global index faltered in August, falling 2.2% ■ The EPRA/NAREIT Europe Index crept forward 1.4% in August but has risen 18% in the year to date. The UK...

Key data: Non-listed sector.
October 1, 2005... ■ Morley and Teesland launch central European industrial fund ■ Europa's second pan-European fund closes ■ The European Central Bank left euro interest rates unchanged last month, as they have been since 2003. The ECB said...

The wizards of Oz.
October 1, 2005... Despite its small population, Australia has a high investment profile. The US was the first destination of choice, but more European opportunities are presenting themselves Australia is a small country in population terms - one with barely 20...

Welcome to the brave new world of property.
October 1, 2005... Welcome to the first edition of EuroProperty World. Everyone, it seems, is going global and EuroProperty is no exception. Either the world is getting smaller or the property market is getting bigger, but more and more European investors and...

Going for global.
October 1, 2005... More and more investors are looking at property in different countries and continents, but global players still need local knowledge if the opportunities are to be exploited to the full Property has long been thought of as the ultimate local...

Global securities.
October 1, 2005... With a global market worth $565 bn, banks and real estate companies are finding that competition is fierce for investment in global property shares If the real estate investment sector was the fashion industry, it would be unanimous about the...

Closing the gap.
October 1, 2005... The Indian government has made huge legal changes to allow foreign investment in its property market. Business has been slow to take off, but the opportunities are plentiful In February the Indian government made sweeping changes to the way...

Risks and rewards.
October 1, 2005... Changes to regulations and an influx of foreign money are changing the mindset of Asian real estate investors. And if investors are prepared for the risk, there are huge prizes to be won The Asia-Pacific property market is increasingly...

Opportunities and knocks.
October 1, 2005... With new funds being launched almost weekly and a surge in property firm flotations, is the Middle East ripe to become a major market, or is it in danger of overheating? Middle Eastern investors have long been big players in global property...

Key data: Global property markets.
October 1, 2005... Investment demand for property continues to be strong and continues to force yields down in most areas of the world, respondents to the latest RICS Global Property Survey claim. Further yield compression is expected in all markets and...

Key data: Occupiers.
October 1, 2005... Paris rental growth on the road to recovery by 2008 JP Morgan Asset Management expects the Paris occupier market to recover over the next five years, with rents rising in all commercial sectors. Offices, the most cyclical of the three sectors,...

Commerzbank wins [euro]1.1bn Hessen portfolio.
October 19, 2005... A unit of Germany's Commerzbank, has won the auction for a portfolio of property owned by the German state of Hessen. CommerzLeasing paid between [euro]1bn and [euro]1.1bn for the portfolio, sources familiar with the situation said. Last week,...