Thursday, 21. July 2016

Take-up in the logistics market in Stuttgart declines due to greater stability among tenants

The stability of tenants particularly in units larger than 10,000 sqm characterised the industrial and logistics property market in the Stuttgart metropolitan region during the first half of 2016. Take-up reached just 59,000 sqm compared to approx. 100,000 sqm in the first half of 2015, according to the latest analysis by Realogis . A total of 31 lease signings took place in the first six months, but no units larger than 10,000 sqm were available during this period. Thus there were no new lettings in a segment that is highly relevant to the overall take-up result. At the same time, no relevant new developments were brought onto the market.

“Nevertheless, we expect to see a significant increase in activity in the coming months. Based on the strong demand and several large deals in the pipeline for existing properties, we expect the Stuttgart metropolitan region to maintain the same level of take-up as reported last year,” said Oliver Stenzel, managing director of Realogis Immobilien Stuttgart GmbH. In 2015 as a whole, all market players generated a take-up volume totalling 240,000 sqm of industrial and logistics space.

Another positive development experienced by the Realogis managing director is that local communities are more willing to enter into a dialogue about new industrial and logistics developments than in previous years. Oliver Stenzel: “Communities are more open to proposals regarding the settlement of new companies when we approach them directly and provide them with information at an early stage.” However, speculative project developments still have no chance of getting approved, in contrast to other logistics locations in Germany.

In reference to take-up by manufacturers, retailers and logistics companies on a regional basis revealed that the Ludwigsburg district was the most popular location in the first half of 2016 with take-up of approx. 22,300 sqm (11 lease contracts). In second place was Böblingen with 11,850 sqm (7 lease contracts) followed by Esslingen with 11,740 sqm (7 lease contracts) and Rems-Murr district with 9,230 sqm (4 lease contracts). Stuttgart saw two lease contracts with total take-up of approx. 3,450 sqm. Wiesheu GmbH signed a lease for 8,000 sqm of industrial/logistics space in the Ludwigsburg district (Großbottwar), representing the largest contract signing in the reported period.

Rental prices for existing industrial and logistics stock in the Stuttgart region remained at a high level in the first half of 2016, with average rents ranging from €3.90/sqm in the Göppingen district to €5.30/sqm in the Böblingen district. Rents in prime locations can still amount to €5.80/sqm or as much as €6.00/sqm in exceptional cases.

For the first time, Realogis also analysed industrial and logistics space take-up in the federal state of Baden-Württemberg. Here, take-up by all market players amounted to approx. 278,000 sqm in the first half of 2016. This positive result was primarily due to the new 130,000-sqm development by project developer Goodman for Zalando in the Ortenau district.

Thursday, 21.07.2016

Cording lets office and storage space to Federal Real Estate Institute

Office tower in Bochum
Cording Real Estate Group has let 8,629 sq m of space in the office tower at Alleestrasse 165, Bochum, to the Federal Institute for Real Estate (BImA). The BImA provides services for federally-owned property. The building is owned by a joint venture between Cording and other domestic and international investors. This was founded by Cording with the objective of investing around €250 million in the value-add segment of the German property market over the next three years. 10 floors of the 12-storey building, the former Thyssen-Krupp Tower, will be occupied by the Federal Agency of Migration and Refugees as the central registration authority for refugees. The building, which dates from 1962, has been reconfigured accordingly.

Thursday, 21.07.2016

Cornerstone acquires 'Altes Klöpperhaus' in Hamburg

Cornerstone Real Estate Advisers Europe, a subsidiary of Cornerstone Real Estate Advisers LLC, has acquired the Altes Klöpperhaus building in Hamburg from Art Invest Group as part of its pan European Core investment strategy. Cornerstone has secured financing for this acquisition from ING. Grossmann & Berger acted for Cornerstone. Altes Klöpperhaus (Kontorhaus), was recently comprehensively redeveloped to comprise 8,350 sqm of Grade A office and retail space across eight storeys. The asset is 87% let to three tenants on 10 year leases. Located on Rödingsmarkt, the building is in Hamburg's central business district and also within the city's Business Improvement District („BID“). The location benefits from well-established infrastructure and good transport connections, being opposite the Rödingsmarkt (U3) railway station.

Thursday, 21.07.2016

Gramercy Property Europe acquires €10.4 million core logistics asset in Frechen

Gramercy Property Europe plc has acquired a core logistics asset in Frechen for a purchase cost of €10.4 million. Gramercy Property was advised by Gramercy Europe Limited. This is the fund's 15th transaction within the [...]

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Thursday, 21.07.2016

Union Investment fully lets Theo 106 office property in Frankfurt to Commerzbank

Theo 106
Since its completion in 2002, Theo 106, named after its location on Theodor-Heuss-Allee in Frankfurt, has been an elegant office building in the City West district. After ING Diba vacated the building in 2013, owner
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Thursday, 21.07.2016

Migros sells last property in Germany

The Swiss-based retail chain Migros as sold its last German property. The 8.000 square metre sized shopping centre “Galerie am Alten Markt” in Baden Württemberg's Lörrach, has been acquired by the
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Thursday, 21.07.2016

Patrizia buys Allianz portfolio for € 400 million

It is a bulk purchase for Patrizia! The Augsburg-based company has acquired the so-called “Cloud 9-Portfolio” for more than € 400 million from Allianz Real Estate. The portfolio, which has a rentable area of approximately 100.000 square metres, includes the Sprinkenhof in Hamburg's Kontorhaus-quarter as well as eight other high-quality residential and office properties in Düsseldorf, Frankfurt, Hamburg, Hannover, München and Stuttgart.

The acquisition is made on behalf of „Patrizia GewerbeInvest Deutschland II“, which was just issued during the second half of 2015. The fund is now fully invested. Over the course of the acquisition, the fund increased its volume from € 600 million to now € 800 million. „The portfolio's quality is outstanding, because it contains properties in the most attractive office markets with a well balanced tenant mix and a high letting rate,“ said Philipp Schaper, Group Head of Transactions at Patrizia.

The nine properties are located in Hamburg, Munich, Stuttgart, Frankfurt, Hanover and Dusseldorf, and offer lettable space ranging from 2,800 to 38,000 square meters. All buildings are very well maintained and in technically good condition with modern and flexible floorplans. The older buildings were fully refurbished in the past few years. The largest property in the portfolio is the well-known „Sprinkenhof“ in the „Kontor“ part of Hamburg, which is part of Unesco world cultural heritage.

Sprinkenhof, Kontorhaus-Area Hamburg

Some of the well-known tenants in the properties are HSBC Trinkaus & Burkhardt, the Bundesanstalt für Immobilienaufgaben as well as the Allianz Group. Overall, the properties are leased by around 180 tenants. The average remaining leasing period is over three and a half years, and the letting rate is around 94%. Almost all of the properties are situated in office locations with excellent local amenities and outstanding connections to public transport. The respective office markets have been attractive for years, which is evident considering the constant high or even growing demand and the shortening of the supply. The portfolio includes around 600 parking spaces. Patrizia was advised by CBRE in the portfolio transaction.

Thursday, 21.07.2016

Frontline technology, flexibility and food will define London’s future office workspace

Strutt & Parkert today launched new research about London’s office employees, which examines how they work and what they want from their office workspace and wider urban environments.

The Office Futures: Workshift survey reveals that occupiers in the coming decade are likely to pursue far more flexible leasing strategies, particularly with regard to their satellite or non-core office space. They will seek to align real estate costs with a volatile business environment, technology that is redefining previously-fixed workspaces and a younger generation, different enough to their forbears, in order to shift long-established working patterns off their axis.

Tom Grounds, partner in research at Strutt & Parker, said: “Office occupiers’ demand for flexibility has driven incremental change in the office market over the last couple of decades - lease lengths are now a third of what they were. However, we believe that the ‘War for Talent’ and legislative and technological change have put us on the cusp of a more fundamental shift.

“Access to the latest technologies, a variety of communal work spaces and a vibrant location have been identified by younger workers as being important factors in shaping their ideal workplaces. These three aspects look set to shape the future of modern office occupiers in London as businesses vie to secure the best future leaders and provide them with a workspace that promotes productivity”.

Highlights from the survey of 1,000 full-time office employees in London include:

• Employees are still primarily engaged in private desk-based work – 74% listed it as a typical activity
• Employees expressed a very wide range of preferences for the type of space they would prefer and were evenly split on whether they preferred private, open-plan, collaborative/informal or homeworking
• The need for wholesale workspace diversity presents a major challenge to occupiers. The advantages of open-plan are clear - it provides high density workspace and is efficient to provide and maintain. Yet, in a city such as London, where staff costs considerably dwarf office leasing costs, staff productivity must come first
• Although this ‘workspace diversity’ model is being adopted by some major occupiers, it is a challenge for SMEs in smaller office space
• Where employees were asked about locational factors, commuting time and food & drink options were far and away the most important issues

Dan Miller, head of occupier services at Strutt & Parker, said: “There is increasing recognition from employers that open-plan working is not the most productive solution for many of their employees. We envisage that going forward businesses will need to fit-out their offices with a greater diversity of space options that enables staff to work in an environment fit to task, but also accommodates the different personalities of employees. This could increasingly include dedicated private spaces, alongside more informal areas and formal meeting space; as opposed to the catch-all solution of open-plan working.

“The desire for workspace diversity becomes a challenge for property investors and landlords, who, in seeking to give tenants what they want, will have to start to consider how to refurbish or develop offices that allow occupiers taking smaller floorplates to achieve their aim”.

A subset of the overall sample, consisting of 210 employees in the 18-34 year old range and earning more than €42,000 (£35,000), highlighted a number of key differences in millennials and older workers’ preferences for what constitutes a productive working environment.

• The ‘future leaders’ ranked mobile work tools as the key devices for doing their job - 67% and 61% said that mobile phones and laptops respectively were important to them, whilst desktop computers and landlines were only thought of as important by 48% and 25% respectively
• A desire for communal working areas was expressed by the ‘future leaders’, who when asked which office features were most important to them ranked staff breakout and coffee areas, informal spaces and formal meetings rooms as being more important to them than older workers did
• With regard to location, ‘future leaders’ ranked proximity to food and drink options (65% ranked it as important when determining an ideal work location) almost as highly as commuting time, which 72% identified as being important

Tom Grounds said: “This preference for mobile working should be met by businesses with increased investment into mobile working tools. Millennials are used to the best technology and want their employers to be innovative, and we expect this will begin to be reflected in office fit-outs, as businesses aim not only to attract and retain the best talent but also to operate at maximum efficiency. Advances in technology, which in the long term could extend to the use of robots and automated phone and PC processes, could relieve office workers of more mundane tasks, potentially increasing the need for collaborative space that stimulates creativity”.

“The ‘future leaders’ are part of the ‘foodie generation’ and associate having a large range of food and beverage options close to the office as conducive to a productive work/life balance. This focus on post-work recreation should prompt businesses to think increasingly carefully regarding the ‘street life’ of office locations if they want to win the ‘war for talent.’ The fact that prime office rents in King’s Cross have now hit €95.15 (£80) per sq ft, above many longer-established submarkets in London, is no coincidence”.

Thursday, 21.07.2016

CBRE GIP acquires Bristol town centre retail park

CBRE Global Investment Partners (GIP) has acquired the Willow Brook Centre, Bristol for €106.4 million (£88.8 million). The acquisition is made on behalf of the CBRE GIP European Co-Investment Fund (ECF) working with Arax Properties (Arax), and is ECF’s fifth purchase. ECF and Arax are already collaborating on a portfolio of logistics assets in France acquired by ECF in 2015. The 231,000 sq ft Willow Brook Centre is a town centre retail park in Bradley Stoke, a substantial residential suburb north of Bristol with a local catchment of approximately 169,000 people. The centre was opened in 2009 and is anchored by Tesco. There are a further 40 tenants, including Argos, Iceland and Boots, as well as a strong food and leisure offer.

Thursday, 21.07.2016

McKay appoints Tom Elliott as Property Director

McKay Securities PLC has appointed Tom Elliott as Property Director with effect from early September 2016. Elliott, aged 41, joins McKay from Land Securities Group PLC where, after 11 years, he is currently Head of Investment in London. This has given him extensive experience with a leading REIT in investment strategy and transactions, asset management and development. Prior to this, he qualified as a Chartered Surveyor with Knight Frank. In his new role, Elliott will be based at the Company's Head Office in Reading and will be involved in a broad management role, contributing to the long term strategy of the business. He will take on day to day responsibility for the investment portfolio and the well-established asset management team, reporting to Simon Perkins, Chief Executive.

Thursday, 21.07.2016

M&G Real Estate signs leasing deal with international FTSE 250 business

M&G Real Estate has secured a new letting at the Celestia warehouse in Snelshall West in Milton Keynes. An international business has signed a new 10-year lease to occupy the 318,526 sq ft warehouse on the edge of the town. Originally constructed in 2007 on a 14 acre site, the warehouse provides high specification space, located in a strategic position close to the A421 dual carriageway, which provides direct access to the M1 motorway. M&G Real Estate was represented by Burbage Realty and Savills.

M&G Real Estate is growing its exposure to industrials and logistics assets in response to increased occupier demand. As a long term investor, M&G Real Estate’s strategy is designed to carefully select and actively manage its stock over time, driving rental growth and delivering long term value uplift.

Thursday, 21.07.2016

Opus North acquires three assets in a sale and leaseback deal

Opus North have acquired three assets in a sale and leaseback deal worth €108.2 million (£90 million) 12 months ago. The purchase comprised two major supermarkets and shopping centres in Hunslet and Sheffield, leased to WM Morrison PLC, and a further shopping centre in Widnes. Altogether, apart from the two supermarkets, the portfolio consisted of a total of 86 units, including shops and offices. Overall Opus North has subsequently completed 20 new lease and lease renewal deals.

These featured eight at the Penny Hill Centre in Hunslet, including Brighthouse and Well Pharmacy; nine at the Green Oaks Shopping Centre, Widnes, including Roman Originals, Crawshaws Butchers and Halifax Bank; and three at Hillsborough Barracks in Sheffield, including letting a refurbished office suite to Castle Owen Property Consultants.

Robb Smillie of Opus North said: “The new deals mean that ten per cent has been added to the overall passing rents, while several planning consents and refurbishment works have been completed, including consent granted for a new 10,000 sq ft retail unit at Hunslet and planning granted and works completed to convert a trolley store into a new retail unit at Hillsborough.

“At Widnes, we have refurbished 3738 sq ft of retail space, which had been vacant since JJB entered administration in 2012, and have subsequently agreed the letting of the unit,” said Smillie.

Palmer Capital, the London-based real estate investment manager and minority shareholder in Opus North, provided funding for the original deal from Palmer Capital Development Fund 3 (PCDF3), its €180.3 million (£150 million) joint venture with CBRE Global Investment Partners (CBRE GIP).

Thursday, 21.07.2016

Charities Property Fund completes eight new leases and extensions

Charities Property Fund, managed by Savills Investment Management, has completed eight new leases or lease extensions reducing the void rate of the portfolio from 1.2% to 1.0%, comparing favourably to the IPD Monthly Index void rate of 10.2%. The properties include offices in Brighton, Maidenhead and Edinburgh and retail in Chichester, Bath, Poole, Sheffield and Basildon.

Harry de Ferry Foster, Fund Director, commented, “The Fund owns in excess of 100 properties across the country providing a good barometer of the health of UK plc. Given the increased uncertainty following Brexit, it is reassuring that a significant number of asset management initiatives have completed and provides an indication of the quality of the underlying property assets held within the Fund. It is also encouraging that the cross section of tenants for these deals is diverse involving healthcare, financial services, a technology company, traditional high street retailers and A3 retailers.

“We continue to believe that the portfolio offers sustainable and secure income let to good quality tenants at an average unexpired lease term of 12 years in an asset class where we are able to grow and extend the income profile through proactive asset management.”

Thursday, 21.07.2016

GreenOak Real Estate Acquires Grafton Advisors

GreenOak Real Estate to announce that it has completed the acquisition of Grafton Advisors from Quintain Limited, which is wholly owned by Lone Star Real Estate Fund IV.

Grafton is the property adviser to the West End of London Property Unit Trust (WELPUT) and was founded by Nigel Kempner, its Managing Director. WELPUT was established in 2001 in partnership with Schroder Real Estate. The eight-person specialist Central London team will retain the Grafton Advisors name with Nigel Kempner as Managing Director, Ker Gilchrist as Property Director and Christopher Cope as Development Director. Grafton will continue to operate as an independent Central London specialist asset, property and development management business with a focus on providing best-in-class service to WELPUT.

Schroders and the Holders Advisory Committee of WELPUT have been involved in the discussions with GreenOak.

Nigel Kempner, Managing Director of Grafton, commented: “We are excited to be joining GreenOak, with whom I have worked closely over a number of years, particularly with regard to the refurbishment, repositioning and sale of Devonshire House in the heart of Mayfair. We are looking forward to continuing to grow the portfolio and performance of WELPUT for its investors over the next few years and this deal, post Brexit, shows that London still holds the confidence of international investors”.

Thursday, 21.07.2016

Allianz Stadion opens in Vienna

Allianz Stadion in Vienna
Austrian football club SK Rapid Wien has reached the ambitious goal to complete its new Arena in Hütteldorf within a period of only one and a half years. On Saturday, the football club celebrated its debut in the new [...]

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Thursday, 21.07.2016

Buwog welcomes the placement of the Sapinda stake

Through the placement of all of the Buwog shares formerly held by Sapinda totaling 18.6% of all shares outstanding a significant increase of Buwog's free float has been achieved. In addition Buwog's shareholder base has expanded significantly through the placement to a broad range of international investors. The largest stake in Buwog totaling 10% is now held by Immofinanz AG. These shares, however, are intended to proportionally service convertible bonds issued by Immofinanz mostly due in 2018.

Thursday, 21.07.2016

Poland´s 79% increase in hotel supply continues to attract global investors

Christie & Co, has published a report on Poland’s hotel market. The report shows that Poland’s hotel market has witnessed continuous growth for several years, with 2015 experiencing an increase of 79% in hotel supply compared to 2006, totalling 2,316 hotels. The majority of hotels in Poland can be allocated to the 3-star segment. While the financial crisis dampened demand, it recovered quickly and arrivals as well as overnight stays even exceeded pre-crisis levels in 2010. From 2006 to 2015, the number of tourism arrivals in hotels increased by 86% and so did overnight stays. Poland is a year-round destination with an average of 20% of overnight stays being generated by foreign visitors each year. Key international source markets include Germany, Great Britain, Ukraine and the US.

As performance data by STR Global reveals, Revenue Per Available Room (RevPAR) increased between 2011 and 2015, generating a compound annual growth rate (CAGR) of 2.2%, despite a decline in Average Daily Rate (ADR), which recorded a CAGR of -1.9%. According to Christie & Co, this can be put down to the fact that RevPAR in Poland is highly occupancy-driven. Occupancy levels grew over the last five years and YTD March figures show a significant increase compared to the same period last year. It comes as no surprise that monthly year-on-year RevPAR changes showed a very positive development, with 2015 data setting new standards.

Adam Konieczny, Country Head Poland at Christie & Co, comments, “Poland’s hotel investment market may still be in its infancy, but there are many reasons why investors are convinced of the country’s potential. Investment opportunities arise from both the positive development of tourism in Poland’s key cities, the improvement of transport infrastructure as well as the country’s increased significance as a MICE and business location.

“While the upper midscale segments continue to grow, there is still a lack of budget hotels in Poland, which creates opportunities for visionary investors and operators.

“Investors are ever more keen on acquiring hotel properties in Poland, with strong interest coming particularly from German, French, British and US buyers. They are mainly looking for branded, well-established business hotels, with chain-affiliated city-centre hotels proving to be particularly successful.

“In general, all kinds of hotels in Poland – from budget to luxury – are in demand. For those looking to allocate capital in an emerging market, where they do not face the level of yield compression they do in Western European key cities, Poland’s hotel market provides an excellent opportunity.” Notable transactions which closed in recent years include the hotel project of the Holiday Inn Warsaw – City Centre which is still under development and expected to open in 2018; the Radisson Blu in Wrocław; and the Sheraton Hotel Warsaw. As Christie & Co’s report shows, the currently most competitive hotel markets are Warsaw; Cracow; the Tri-City area around Gdańsk, Gdynia and Sopot; and Wrocław, all by number of hotel keys and RevPAR.

Thursday, 21.07.2016

BNP Paribas Real Estate takes over property management of Turawa retail park

Turawa Retail Park
At the end of June 2016, a team of experts from BNP Paribas Real Estate Poland took over Turawa Retail Park in Opole, for which it will provide comprehensive property management and leasing services. Turawa Retail Park, owned by a fund managed by British investment company Standard Life Investment, located on the ring road of Opole, offers customers an area of 36 000 sq. m, about 70 shops and restaurants and 1,400 free parking spaces. Key tenants include Carrefour, Praktiker, Reserved, Media Expert, SMYK, C&A, Cubus, KiK, CCC, Super-Pharm, Takko Fashion, Deichmann, Carry, Rossmann, Szachownica, Sephora, Empik.

Thursday, 21.07.2016

The Westin Warsaw Hotel achieves 'Silver' LEED certification

Westin Warsaw
The Westin Hotel in Warsaw has been awarded an LEED for Existing Buildings: Operations and Maintenance certificate. It is the first hotel in Poland to comply with the high requirements for environmental certification for existing buildings. The Westin Hotel received a 'Silver' grade. Hotel Westin Warsaw had to undergo a thorough audit that evaluated both the building’s technical solutions and employees’ satisfaction in terms of working conditions. Polish research company Go4Energy in co-operation with Skanska Property Poland - the building’s developer - jointly collected the documentation required for obtaining the certificate. Specialists from Go4Energy were responsible for a number of aspects including the conducting of an energy audit, and an employee questionnaire. The hotel’s personnel answered questions on conditions in the hotel including air-conditioning and ventilation systems as well as the amount of natural daylight. Based on the questionnaire's results, Skanska adjusted the building to the high standards specified by the US Green Building Council.

„Since the hotel was completed 13 years ago, sustainability standards have become increasingly exacting. As a result, we can now develop buildings that are able to stand the test of time in terms of comfort and efficiency of use. In the Westin Warsaw, we took care, for example, to ensure that the energy the hotel uses comes from renewable sources. We also developed policies for ecological purchases, waste management and recycling. The certification of the hotel proves that it is worth focusing on existing buildings and assessing the possibility of adjusting them to the highest standards. Comfort within urban buildings and their energy efficiency plays an increasingly important role on the Polish market. Furthermore, investors have become more aware of the importance of environmentally- friendly buildings in the commercial sector. They attract clients who are more and more demanding but who also recognize that these buildings have the capacity to keep pace with constantly changing legal frameworks – comments Michał Marszałek, Sustainable Development Coordinator at Skanska Property Poland.

“It is an important event on the Polish real estate market. It indicates the growing awareness of property owners, from all sectors of the market of sustainable development. In addition, green certificates in real estate projects serve as a confirmation of their high quality – says Tomasz Augustyniak, President, Go4Energy – Westin hotel in Warsaw was also highly rated in terms of drinking water consumption. High scores that the hotel received across the board confirm the building’s quality" adds Tomasz Augustyniak.

The management at the Westin hotel firmly believe that the certification will have a positive influence on the hotel’s image. The works conducted will result in an improvement in guest experience as well as the employees’ working environment.

Thursday, 21.07.2016
Czech Republic

Rockcastle acquires Forum Liberec

Forum Liberec
Rockcastle has acquired Forum Liberec from British retailer Tesco for approx. €80 mil. Forum Liberec is a regional shopping centre located in the heart of Liberec, the capital of the North Bohemia region. The 47,000 sqm centre is tenanted by strong retailers including: Tesco, Cinema City, C&A, Datart, Gant, H&M, Lindex, New Yorker, Nord Blanc, Norma, ProBest, Reserved, Sportissimo and Tiger. With an annual footfall of over 12 million, Forum Liberec has the highest footfall in the region. Rockcastle´s investment focus has been in Poland where it owns 6 retail centres and this acquisition represents its first investment in the Czech Republic. Its strategy is to expand its retail property portfolio in Poland, Czech Republic and Hungary through the acquisition of existing assets and retail development sites.

Thursday, 21.07.2016

€310 million transacted in the Slovak capital market in H1 2016

Slovakia´s economy rose above expectations in H1 2016. Stockbuilding, net exports and private consumption were the main contributor to the increase in GDP. The unemployment rate has continued to decline boosting private consumption which is being helped also by current low inflation. For the second half of the year, GDP growth is predicted to be 0.3% lower than previously expected due to the result of the UK referendum. Although Slovak exports to the United Kingdom represents only 4% of total merchandise exports, indirect and second-round effects (particularly via Germany) will likely have a negative impact. On the other hand, the economy is likely to be boosted at the level of 0.7% (according to the central bank) thanks to the new investment - arrival of Jaguar Land Rover.

Real estate market in H1 2016 - characterized by the arrival of new market entrants
The total investment volume in H1 2016 reached approximately €310 million. New market entrants in all commercial markets – retail, office and industrial:
• At the very beginning of the year Central Shopping Center, a prime modern 36,000 sq m retail scheme, was sold by established local developer Immocap to Allianz Real Estate for reported €175 mil.
Blackstone entered Slovakia through its Logicor platform via acquisition of LogCenter Nove Mesto, a prime 25,000 sq m logistics scheme from Immofinanz.
• In the second quarter HB Reavis divested its 130,000 sq m warehouse & light production industrial portfolio, which was acquired by MIRA, part of Australian Macquarie group for reported €79 mil. The outlined portfolio consisted of 4 parks – two in Bratislava, one in Prešov and one in Ostrava, Czechia.
• Cearus Investment Management also entered Slovakia when it acquired Cubus, a 22,000 sq m HQ of Dell shared service centre in Bratislava for undisclosed purchase price, from SEB Investment, part of Savills IM .

Miroslav Barnáš, Managing Director and Head of Capital Markets in JLL Slovakia, says: “The number of deals and investment volume are expected to outperform last year´s levels as we still feel positive about the investment climate in the rest of 2016. Market entrants as well as already established local and international players are expected to further increase their exposure.”
In H1 we have also recorded country transparency ranking moving upwards (according to the JLL Real Estate Transparency Index) and now shares the “transparent” ranking with other Central European and Scandinavian countries. In 2016 it is clear that Slovakia has become an established and attractive investment destination offering favourable market conditions and attractive pricing when compared to other CEE markets and the Western Europe.

“In retail we are witnessing strong investor interest across geographies and asset class. Investors are also carefully watching offers and price expectations in the office segment mainly in the capital. In the industrial sector, large portfolios were sold last year, so investors wishing to deploy their capital into warehouses and light industrial parks started to look at single asset regional opportunities, and even secondary assets,” adds Barnáš.

Yield level
In alignment with the mast situation in other parts of CEE, and as a result of improving market conditions, yields have already compressed and come down further in H1 2016. Our view on prime yields stands at 7.00% for offices, dropped to 6.00% for shopping centres, also compressed to 7.75% for industrial & logistics, and also decreased to 7.75% for retail warehousing.

CEE region
At ca. €5.1 billion, H1 2016 represented a 69% increase over the same period of 2015 and is the highest first half year in CEE regional investment volume since 2007 (€5.7 bn). . Our forecast for 2016 remains unchanged and we expect to record full year volumes of over €10 billion.
The first half year breakdown saw Poland pull in an impressive H1 volume to bring its share to 40%, followed by the Czech Republic (18.5%), Hungary (18%), SEE (other CEE) markets (10.5%), Romania (7%) and Slovakia (6%).

Thursday, 21.07.2016
The Netherlands

M7 acquires €20 million of office and industrial assets

M7 Real Estate has invested a further €20 million to acquire 11 office and industrial assets across the Netherlands on behalf of M7 European Real Estate Investment Partners III (M7 EREIP III). This follows the final close of EREIP III in June 2016, which provided the Fund with a gross acquisition capacity of approximately €300 million.

M7 has acquired ten office assets, located across key commercial centres in the Netherlands, including Amersfoort, Delft, Zoetermeer and Utrecht, from a group of private investors. Known as the 'Brixes' portfolio, the assets comprise a total lettable area of 27,464 sq m and currently produce €1.9 million of rental income per annum, with a WAULT of 3.49 years. M7 has acquired the portfolio with a vacancy rate of 37.4% and has planned a series of asset management initiatives including a targeted capex plan including the refurbishment of vacant accommodation to further increase occupancy, income and value across the assets.

In a separate transaction, M7 has also acquired a 13,889 sq m industrial asset from a private vendor. The multi-let modern industrial unit is located in the prominent industrial area of Waalhaven, Rotterdam and is fully occupied with a WAULT of 9.64 years.

These acquisitions bring M7 EREIP III's total portfolio to c. 395,428 sq m, across 56 assets with a combined value of circa €208 million. Savills acted as the agent for M7 on the acquisition of the Brixes portfolio, whilst Van Splunter acted as agent for the acquisition of the industrial asset in Waalhaven. M7 Real Estate was advised by Van Doorne on both acquisitions.

Thursday, 21.07.2016

Michaela Schroer
Claudiusweg 1 · 59519 Möhnesee

Phone · +49 (0)2924 879 988
Fax · +49 (0)2924 879 989

VAT-ID-Nr.: DE234396004

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