Euro Property articles from September 2008

Euro Property archives from September 2008

Nexity.
September 1, 2008... The French developer, now part of French bank Caisse d'Epargne, has enjoyed increased revenue, mostly from its residential operations, but has scaled down its ambitions in light of the credit crunch La Defense is going through a transition...

Equity players dominate London's investment market as loans dry up.
September 1, 2008... Banks careful to avoid distressed loan sales amid market devoid of leveraged buyers A year on from the start of the credit crisis, investment volumes in the City of London office market have all but dried up. Debt is not available, yet...

Key data: The listed sector.
September 1, 2008... - European performance gains slightly, but is still down on 2007 - LandSec narrows buyout shortlist to two EPRA/NAREIT Europe Index ended slightly positive (+0.6%) in July, as measured by local currencies. France was down by 1.8%. The UK...

Financial crisisputs freeze on City occupiers.
September 1, 2008... Across the capital firms are shelving expansion plans or looking to offload extra space as jobs are shed. Meanwhile, rents have soared - but tenants are less willing to pay them The slowing UK economy is set to dampen demand for desk space...

Developers apply the brakes in face of credit crunch.
September 1, 2008... Faced with a dearth of tenant demand and the finance tap turned off, developers are fearful of moving ahead with schemes. This could mean opportunities three years from now EuroProperty 01.09.2008SurveyEuroProperty 01.09.2008The economic...

London.
September 1, 2008... With vendors reluctant to drop prices, and investors seeing little reason to buy - plus soaring development costs and a new mayor - the London market is at a standstill A year since the start of the global credit crisis and the London...

Insolvency looms for two KarstadtQuelle offshoots.
September 1, 2008... High rents trigger demise of the Hertie mini-department store chain bought by Dawnay Day, and clothing chain Sinn-Leffers, bought by Curzon/IXIS AEW Two former KarstadtQuelle subsidiaries, Hertie and Sinn-Leffers, have filed for insolvency...

[euro]300m leaseback offer from Bulgarian telecoms body.
September 1, 2008... Bulgaria's former state telecoms operator BTC is hoping to attract international investors with a 300m sale-and-leaseback portfolio. The 100 properties include the Telecom Palace in Sophia, which could be redeveloped. BTC, which was privatised...

IVG takes 72% profit hit from value drop.(Financial report)
September 1, 2008... IVG's net profit slumped by 72.4% as a result of lower property valuations. The German property company reported net profit after tax of 51.1m in the first half, compared with 184.9m for the same period last year. Its net asset value fell by...

Pirelli seeks buyers for Karstadt assets.
September 1, 2008... Pirelli is selling assets from the Karstadt portfolio in Germany.At the company's half-yearly results presentation last month, Pirelli said it had received "unsolicited offers" for parts of the 164-asset retail portfolio. Pirelli, who formed a...

Invesco Real Estate.
September 1, 2008... The UK-based fund manager plans to take advantage of opportunities in Russia and the UK arising from the credit crunch UK-based fund manager Invesco Real Estate has broadened its reach over the past few years, expanding its team and product...

People.
September 1, 2008... Danielsson named president of SkanskaAnders Danielsson has been appointed president of Skanska Sweden. He will replace Mats Williamson, who recently took over as president of Skanska UK. Danielsson joined Skanska in 1991 and has since held...

Hammerson.
September 1, 2008... The Anglo-French office and retail property company has taken a hit as asset values and retail sales fall, but its diversified portfolio and strategy of caution is expected to keep it profitable European property investor and developer...

In brief.
September 1, 2008... BPT buys telecoms buildingsThe Baltic Property Trust (BPT) has entered into a sale-and-lease-back agreement with European communications company Telekomunikacja Polska, part of the France Telecom Group. In Warsaw, BPT has acquired 62,000 m2 of...

US subprime writedowns hit Eurohypo's Q2 profit.(Financial report)
September 1, 2008... Rivals Aareal and Hypo post profits alongside German lender's 138m loss Eurohypo posted a second-quarter loss following further US subprime write-downs. The German lender posted a second-quarter net loss of 138m after writing down its US...

Lehman Brothers in $40bn property portfolio sale.
September 1, 2008... Analysts cool on Wall Street bank as it seeks to balance its books and assure investors For a company which has its origins in the cotton trade, it is somehow appropriate that the future of Lehman Brothers' real estate activity is now...

Fortis puts sale-and-leaseback deal on market.
September 1, 2008... Listed bank to sell assets either together or as portfolio Euronext-listed Fortis is selling a portfolio of assets across Belgium.The Brussels-based investment bank is looking to sell around 20 properties in a sale-and-leaseback deal....

Keeping up appearances.
September 1, 2008... Some listed UK property funds are paying out dividends despite suffering falls in net asset value, in order to prevent redemptions. But other factors may curtail this practice UK listed property funds are continuing to pay out stealthy...

Deka fund buys Lithuanian retail centre for [euro]200m.
September 1, 2008... Deka's Westinvest InterSelect fund has bought the Akropolis shopping centre in Kaunas, Lithuania for just over 200m.Lithuanian private company VP Group put a portfolio of three of its Akropolis branded shopping centres up for sale in May this...

Accident threatens sale of Stockholm centre.
September 1, 2008... The sale of the Kista Galleria retail centre in Stockholm could be delayed further after a construction worker died and two passers-by were injured as a result of an accident on the site. Investors may now be deterred by possible lawsuits...

GE shifts focus from solid assets to loan portfolios.
September 1, 2008... Property arm of US investor holds back on equity investment and buys up debt to exploit "market trend" GE Real Estate is moving away from direct property to focus completely on real estate debt. The firm has bought no European property...

Debt crisis prompts divergent tactics.
September 1, 2008... Two big US companies and two different directions. While GE is moving away from direct real estate investments into debt, Lehman Brothers is selling its entire $40bn (27bn) portfolio, which consists mostly of debt. US companies like the big...

Niam buys [euro]750m of former Vasakronan assets.
September 1, 2008... Niam has agreed to purchase a portfolio of properties throughout Sweden worth 750m from AP Fastigheter. The portfolio comprises assets from AP Fastigheter's acquisition of Vasakronan, which it bought from the Swedish state earlier this year.The...

Key data: German open-ended funds.
September 1, 2008... - Vehicles beat May's total of 128m - Commerz Real suffers biggest outflow Union Investment and Deka gain - Germany's open-ended funds collected 375.7m in June, up from the 128m collected in May. Commerz Real's Haus-Invest Europa fund was...

Apollo to dock alongside C&R.
September 1, 2008... Apollo Real Estate will help out UK investor Capital & Regional by investing in its German real estate portfolio through a joint venture.C&R has written down valuations on its UK property vehicles over the past year and is seeking a cash...

GE pulls out of Westfonds deal over spread.
September 1, 2008... GE Real Estate has pulled out of exclusive talks to buy two German portfolios from Westfonds because its offer price was too close to the minimum asking price. The US investor was looking to buy an office portfolio and a mixed, value-added...

Doom and gloom not as apparent in central and eastern Europe.
September 1, 2008... Although bidders have dwindled and yields have expanded, factors such as rental growth and the high price of oil may help some of the region's markets to weather the downturn The August's issue of the UK magazine The Economist carries a...

HSH Nordbank takes back [euro]7.6bn of debt.
September 1, 2008... HSH Nordbank has taken a total of 7.6bn of commercial property loans back on its balance sheet. The German bank had placed the loans with Lehman Brothers, Hypo Real Estate and BNP Paribas in credit default swap transactions earlier this year....

In brief.
September 1, 2008... AXA to sell La Defense assetAXA is selling an office tower in Paris for 250m. Jones Lang LaSalle and Catella are jointly advising AXA on sale of the Opus 12 asset in La Defense. Grosvenor in sub-5% Paris dealGrosvenor's sale of 68 Rue Faubourg...

Goldman Sachs follows German funds into Moscow.
September 1, 2008... US investment bank buys townhouse community for $300m from AIG Global Real Estate after KanAm's pioneering deals for offices in the Russian capital Goldman Sachs' property arm, the Whitehall Fund, has bought its first property in Moscow...

Key data: non-listed sector.
September 1, 2008... - Alpha Real Capital launches 300m UK opportunity fund - Short-term euribor rates remain steady - Short-term EUR rates have shown little change over the past month and the dislocation between the ECB's refinance rate of 4.25% and...

IVG seeks buyers for Belgian assets.
September 1, 2008... German investor IVG is selling a portfolio of assets in Belgium."They have been trying to raise investor interest," a source said. "Everything except one very good asset in the north of Brussels is for sale."At ExpoReal last year, IVG chief...

ING creates global opportunities fund.
September 1, 2008... ING Real Estate is launching a fund from its new global opportunistic platform.The group, which recently hired Wilson Lee as European managing director of the platform, plans a $1.5bn (1.019bn) vehicle. The fund will invest 25-30% in Europe,...

Real estate companies put portfolios up for scrutiny.
September 1, 2008... DTZ to run sustainability reviews for UK-based firms Segro, Resolution, Scottish Widows Investment Partnership and The Crown Estate Four major UK-based real estate companies are to review the future sustainability of their real estate...

Forum Partners launches [euro]500m debt vehicle.
September 1, 2008... US investor Forum Partners has launched its third European debt fund to invest in the debt of listed and private real estate companies.The 500m fund will invest in structured debt, convertible bonds, mezzanine debt and debt with warrants. "We...

GE to sell Slovakian Euromax retail centres.
September 1, 2008... GE Real Estate Central & Eastern Europe has put a Euromax-branded shopping centre portfolio on the market.The assets are in the Slovakian towns of Nitra, Trencin, Trnava, and Poprad. GE is looking to sell the 55,000 m2 portfolio for around...

Bidding opens for Frankfurt office tower.
September 1, 2008... Tishman Speyer has received binding bids for the OpernTurm in Frankfurt. The 170m-high tower is about 54% prelet, mostly to UBS, and is expected to be completed by the end of next year. A German open-ended fund is likely to buy the tower,...

Are shed developers too mean to be green?
September 15, 2008... Pricey oil and red tape have hit the shed market. But many players see profit in sustainability Rising oil prices, tighter EU environmental controls and rising demand for eco-friendly sheds mean that logistics developers are under pressure...

Opportunists ready to pounce on bargains in a moribund market.
September 15, 2008... Tight credit has thinned the ranks of industrial property buyers in western Europe, but demand from occupiers is still strong, and savvy players are looking for the right buy This time last year, western Europe's industrial and logistical...

Suppliers head east in search of cheaper costs and better prospects.
September 15, 2008... Cheaper land and labour, improving infrastructure, and economies relatively unhurt by the credit crunch are pulling logistics occupiers to central and eastern Europe For years, industrial and logistics markets in central and eastern...

Logistics/industrial.
September 15, 2008... The logistics market has innate strengths that will help it to avoid the worst of the downturn - and some places, such as eastern Europe, offer profitable opportunities even now Often seen as the least glamorous property class, warehouses,...

Niam.
September 15, 2008... The Nordic fund manager teamed up with AP Fastigheter in its purchase of Swedish state real estate company Vasakronan and came away with 41 non-core assets for its fourth opportunistic fund After Niam revealed that it had been one of the...

Take-up rises in the east but falls off in the west.
September 15, 2008... Demand for office space in central and eastern Europe remained strong in the second quarter despite an overall fall in take-up across Europe's major markets.Economic uncertainty created a gap between western and eastern European office markets,...

Birmingham office rents set record.
September 15, 2008... A large number of deals in the first half of the year has pushed office rents in Birmingham to the highest-ever level.Demand from the professional sector has been driving letting activity in the city. Notable deals included Birmingham's...

Key data: recent deals.
September 15, 2008... - Largest deal of the year completes as Klepierre/ABP buys Steen & Strom - Commerz Real acquires Athene Place - Norwegian property company Steen & Strom changed hands for 2.7bn in the largest deal of the year. French retail property...

Exodus from Mayfair?
September 15, 2008... A huge climb in West End rental values is predicted to cause commercial property rates there to jump by more than 100%, and prompt occupiers to relocate to the City For central London property owners, occupiers and developers, more gloom...

Ghelamco.(Company overview)
September 15, 2008... The Belgian family-owned developer was one of the first European developers to enter central and eastern Europe, especially Poland. It is now building assets in Ukraine and Russia, as well as its native Belgium Having been active in...

Russia's military venture sends lenders AWOL.
September 15, 2008... Market players discount long-term effect on real estate, but worry over capital flight Russia's recent excursion into Georgia has sent shivers down the spines of international investors. And tight credit in Russia has been made tighter by...

Rutley Capital Partners.
September 15, 2008... The investment arm of Knight Frank has two public funds in force that are investing in Europe and Russia respectively, and it is looking at launching another - private - vehicle In the three years since it was established, Rutley Capital...

Falling market hits Spanish giants.
September 15, 2008... Three of Spain's biggest real estate companies, Reyal Urbis, Metrovacesa and Colonial, have revealed poor figures for the first half of 2008.Exposure to Spain's residential market saw developer Reyal Urbis's net losses jump from 34m in the...

Cross-border tax treaties 'more efficient' says EPRA.
September 15, 2008... Reciprocal arrangements between member states to collect and allocate tax revenue would boost investment in REITs, say public real estate body executives EU states may soon have reciprocal arrangements to collect tax revenues and allocate...

IPD predicts 12% fall in property returns for 2008.
September 15, 2008... UK commercial property is heading for a total return of -12% this year, says benchmarking firm IPD.IPD co-founder Ian Cullen said his forecast was in line with the current pricing of property derivatives and with July's poor results.According...

SEB picks up five assets for Global Property Fund.
September 15, 2008... German fund manager SEB Asset Management has added to its Global Property Fund, buying a mix of warehouses and offices across Europe. SEB bought three fully let warehouses in the Guadalajara province, northeast of Madrid, from Spanish developer...

F&C Asset Management.
September 15, 2008... The UK asset manager has merged with a REIT manager and is planning fund launches, but its majority shareholder is looking to sell its stake UK-based company F&C Asset Management is at a crossroads. The business has recently taken control...

GE Real Estatee_SSRqs CEE heads move over to JER Partners.
September 15, 2008... Fund manager, which has changed its focus to real estate debt, loses staff to rival GE Real Estate has suffered more defections after it switched its focus from direct property to real estate debt.The core of the firm's central and eastern...

AXA agrees sale-and-leaseback deal for Barcelona HQ.
September 15, 2008... AXA has sold its Barcelona headquarters after merging with wealth management company Winterthur. The global insurance group sold its headquarters, on Barcelona's central Diagonal Avenue, for around 90m to a local investment group at a yield of...

Bryant named GE's head of debt.
September 15, 2008... GE Real Estate has appointed Mike Bryant to the new position of managing director of international debt at GE Real Estate International. He will oversee the structure and purchase of debt finance and the origination of property loans. Last...

Baltic wobbles cause cracks in Nordic banks' defences.
September 15, 2008... Inflation and weakening markets in Estonia, Latvia and Lithuania are expected to hit the previously resilient Nordic banks, which have lent heavily to these markets Although many banks in Europe have turned away those seeking debt to fund...

Cushman suffers [euro]47m first-half loss.
September 15, 2008... Cushman & Wakefield has reported a $67.3m (47.3m) loss for its first half.The figures were revealed in the accounts of the agent's parent company IFIL - the investment arm of the Agnelli family, which also controls car maker Fiat. Turnover at...

In brief.
September 15, 2008... BPF touts downtown high-risesA British Property Federation-commissioned report says that skyscrapers should be built in central London rather than on the outskirts of the capital. The study says that high-rise buildings offer clear economic...

Corio joins Acteeum to develop Turkish centre.
September 15, 2008... Dutch investor Corio has acquired a 25,000 m2 shopping centre project in Tarsus, in the eastern part of Turkey, and plans to develop it in a joint venture with Acteeum Group.The scheme has planning consent and is expected to open early in...

Learn from the funds' woes over transparency.
September 15, 2008... After corruption hit German open-ended funds, they opted to publish data on their assets. Firms should do so as well For many years, the German open-ended property funds were harshly criticised because they were said to lack transparency....

Low bids prompt failure of IVG's Paris office sale.
September 15, 2008... German property company, hit by dwindling profits and NAVs, sees sale fall through after unsatisfactory offers for Place Vendome asset IVG's sale of a prime Paris office asset has fallen through after the company recieved unsatisfactory...

Russia's actions have cost it dearly.
September 15, 2008... Things had been going so well for Russia. With the election of president Dmitry Medvedev and his promises to embrace modernisation, fight corruption and shrink Russia's reliance on energy income, the story looked to become even rosier.Sadly,...

In brief.
September 15, 2008... Madrid embassy finds buyerThe British Embassy in Madrid has been sold to an unnamed Spanish investor for around C50m following the Foreign Office's planned relocation to Torre Espacio. Located in Calle Fernando el Santo 16, the building was...

Developers exit plan for Spanish mega-complex.
September 15, 2008... Spanish developers Metrovacesa and Riofisa have abandoned plans to build Atlantys - which would have been Spain's largest shopping and entertainment complex - after a legal glitch.In 2005, at the height of the property boom, Riofisa and...

Redundancies to hit UBS's property arm.
September 15, 2008... UBS is not commenting on reports that it is cutting its real estate finance division.The Swiss bank's property team has halved in a year, said sources, who added that a move away from property is planned.Seth Lieberman, UBS's managing director...

In brief.
September 15, 2008... SFL awaits resultFrench REIT Societe Fonciere Lyonnaise will learn its fate by the end of this month. The REIT was put up for sale by its Spanish majority owner, Colonial, in April, and would net it around C3bn. SFL's managing director,...

Key data: INREV.
September 15, 2008... - Core funds and finite vehicles still dominate database, despite recent spate of opportunity fund launches Despite the recent flurry of opportunity fund launches, core funds still account for over half of the funds in the INREV database....

Dearth of cash holds back API's Russia vehicle.
September 15, 2008... Aberdeen Property Investors fails to attract 500m for fund and will complete capital raising in 12 to 18 months Property investment manager Aberdeen Property Investors has been forced to postpone the launch of its 1.5bn Russian real estate...

Partners to launch farmland vehicle.
September 15, 2008... Palmer Capital Investors (PCI) is set to launch a 300m pan-European farmland fund. The Palmer European Farmland Fund, managed by a jv between PCI and surveyor Bidwells Agribusiness, has raised 45m of equity in the first weeks of marketing and...

JLL's European head to move to Singapore.
September 15, 2008... Alastair Hughes, the head of Jones Lang LaSalle in Europe, is transferring to Asia. Hughes will move to Singapore at Christmas to assume the role of chief executive of JLL's Asia-Pacific region.Since 2005, the 42-year-old Scot has been chief...

ING eyes AFI's prime Moscow developments.
September 15, 2008... London-listed Russian developer AFI Development is talking to several European investors, including Netherlands-based ING Real Estate, with a view to selling stakes in some of its lucrative Moscow projects.Alexander Khaldey, AFI's chief...

Blackstone to advise loan default group.
September 15, 2008... US investor Blackstone is advising lenders to a failing Jersey-based property group that has sold to UK investors millions of pounds of bonds that are in default.According to a source close to Blackstone, its London-based debt restructuring arm...

German fund managers buy prime European assets.
September 15, 2008... Cash-rich vehicles SEB Asset Management, Signa, Deka and Degi take advantage of a market weakened by tight credit to pick up quality office and retail schemes German investors, exploiting the lack of debt-driven buyers in Europe, have...

Grosvenor to launch [euro]200m Italian retail vehicle.
September 15, 2008... Grosvenor Fund Management is launching its third vehicle investing in Europe. The Italian Retail Fund will invest in Italian retail properties and is looking to raise 100m which, with debt, will have the capacity to invest 200m.At present,...