Niche Property Fundraising

In this extract from the Preqin Real Estate Spotlight | June 2015, Abbie Smith examines the recent fundraising successes of private real estate funds focused on non-traditional property types, such as medical/healthcare facilities, senior homes, student housing and self-storage.

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Blackstone buys Spain and Portugal malls

The Blackstone Group has acquired three shopping malls in Spain and Portugal via its fourth European fund on behalf of its pan European retail platform, Multi Corporation, for a price approaching €500 million.

The properties have been bought from Commerz Real, a subsidiary of Germany’s Commerzbank.

In a statement today, both parties highlighted different elements to the transaction. Jaap Blokhuis, chief executive officer of Multi, said the assets were all of “high-quality” and were originally developed by Multi. He added that the properties could be improved further. Meanwhile, Eduardo Moran, management board member at Commerz Real responsible for the transaction said, “In view of considerable interest in such properties on the part of investors, we have acted at a point in time that was ideal from a strategic stance.” He added, “The markets in Spain and Portugal are recently recovering to a considerable degree, consumer demand is stable, and the three shopping centers are very well established.”

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Banco Popular to sell €451 million worth of Spanish property

Banco Popular is preparing to sell €451 million euros of real estate assets in Spain as international investors return to the country’s property market.

The bank’s portfolio includes 1,753 homes in Madrid, Barcelona, Toledo and the Costa del Sol valued at $300 million , zoned land in 10 regions across Spain valued at €103.4 million and 13 hotels valued at €47.2 million, according to a document sent to investors by N+1, the Madrid-based investment bank advising the seller. 

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MANDARIN ORIENTAL TO PURCHASE THE RITZ MADRID IN A JOINT VENTURE

Saudi Arabian conglomerate The Olayan Group, in a 50/50 joint venture with Mandarin Oriental International Ltd, is to acquire the Hotel Ritz Madrid in Spain for €130 million (€778,400 per room) from Belmond Spanish Holdings and Landis Inversiones. HVS London was pleased to advise Mandarin Oriental on the transaction. Mandarin will manage the 167-room hotel, which dates back to 1910, under a long-term contract. Following its sale, the hotel, in one of the city's exclusive residential areas, is expected to undergo an extensive renovation estimated to cost €90 million, which will increase the purchasers' total investment in the property to more than €1.3 million per room.

 

European loan portfolio sales could top €100bn this year – study

European loan portfolio sales could top €100bn ($111.5bn) this year, according to PwC, with real estate loan sales remaining popular.

PwC said €59bn of loan sales had either been completed or were in progress at the end of the first quarter of 2015. 

Of the €39bn of portfolio transactions in progress in European markets, more than half were in commercial real estate and mainly in the UK, Germany and the Netherlands.

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Europe RE investment to beat 2007 peak

There is €125 billion of new capital targeting European commercial real estate, putting the region on track to beat its previous peak investment volume of €230 billion, said Magali Marton, head of EMEA research at DTZ.

A report from property services firm DTZ revealed that European commercial real estate investment totalled €51.4 billion in the first quarter of 2015, a 40 percent increase on a year ago. Furthermore, following a strong final quarter in 2014, in which €71 billion was invested, the latest figures show volumes over the last 12 months climbed to €208 billion, the first time since 2007 that the €200 billion mark has been exceeded in a 12 month period.

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Sovereign wealth funds Investing in real estate

Sovereign wealth funds, despite being small in number and secretive in nature, continue to capture attention as a result of their ever growing assets under management and corresponding influence on global financial markets. Today, the total assets of sovereign wealth funds top USD6.31tn, more than double the capital these entities represented in 2008, the year Preqin launched its first Sovereign Wealth Fund Review.

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