Aviva Investors and the Public Sector Pension Investment Board are investing up to £250 million in commercial property in Cambridge.
The Cambridge property includes a mix of ground up and standing assets in the CB1 Estate, a master-planned development covering 26 acres.
Aviva Investors is the global asset management business of Aviva plc, and PSP Investments is one of Canada’s largest pension investment managers.
In 2015, it invested in a portfolio of commercial properties in central London, currently worth over £400 million.
Aviva Investors and PSP Investments view Cambridge as one of the UK’s most durable and attractive real estate locations due to its position as a world-class knowledge centre in technology, artificial intelligence, biotech and life sciences.
The new Cambridge property investment includes:
50/60 Station Road, a 167,000 square foot grade-A development completed in April 2019, fully let to market-leading technology and professional services businesses.
30 Station Road, an 81,500 square foot scheme that is pre-let to a leading global technology company on a 10-year FRI lease. Construction of the Cambridge property commenced in September 2019, with completion scheduled for Q3, 2021.
Aviva Investors will act as development manager and asset management partner, working alongside Brookgate as the developer.
Daniel McHugh, Managing Director, Real Estate, Aviva Investors Real Assets, says, “We are excited to expand our successful partnership with PSP Investments in Cambridge, which is one of our key office cluster locations due to its deep talent pool and ability to attract leading global businesses. Station Road provides exposure to high-quality assets with a range of risk and return profiles, and we look forward to growing this strategy with PSP Investments.”
Regeneration to outperform in the long term
Stéphane Jalbert, Managing Director, Europe and Asia Pacific, Real Estate Investments, PSP Investments, says, “Building on our existing partnership with Aviva, PSP is continuing its strategy of investing in key innovation markets. Cambridge is one of the UK’s leading knowledge clusters for artificial intelligence and life sciences, and we believe the regeneration of the Station Road area will outperform in the long term.”
Melanie Collett, Head of Real Estate Asset Management, Aviva Investors Real Assets, says, “The Cambridge commercial property market benefits from strong cluster effects, with businesses supported by incubator and innovation spaces, strong knowledge sharing in local networks and a wealth of employable graduates. We continue to see high demand for space from many global firms, with cutting-edge technology and business services firms among the occupiers in our properties as we create leading locations that cater to businesses, communities and individuals.”
The Cambridge property image is a CGI of 50/60 Station Road.
Madrid building sold for upscale hotel
Princeton Investments has completed the sale of its building on Calle Fomento in Plaza de Santo Domingo, Madrid to Boissée Finances.
The French hotel group plans to convert the building into a 155-room upscale design hotel. It is set to include one of the largest rooftop swimming pools and terrace spaces in Madrid, with views over the Palacio Real and the Sierra de Madrid.
The 10,700 square meter building is close to Gran Via in the tourist and commercial heart of Madrid. The undersupply of hotel rooms in central locations in Madrid, along with unique features offered a highly attractive investment opportunity, says Princeton Investments.
Princeton purchased the building on a sale and leaseback basis from Telefonica in 2015 which expires in 2022. During their four years of ownership, Princeton developed plans to transform the building’s use, and the disposal marks the completion of their business plan.
Princeton has been active in the Spanish market over the past five years, acquiring a number of high-profile residential developments and refurbishments, office investments in Madrid as well as several student housing developments. The completed value of its Spanish investment programme is in excess of €200m. CBRE and Uría Menéndez advised Princeton.
Miguel Casas, Head of Hotel Investment Properties, Continental Europe at CBRE, says, “The building has all the characteristics to become one of Madrid’s most iconic hotels. It stands out by its location and layout, with more than 500 sqm of rooftop terrace that has amazing views over Madrid’s historic centre. The positive hotel trading and investment environment in the city is positioning Madrid as one of the top European capitals within the Hotel Investment market.”
Berlin fully-let “built to suit” logistics property bought
RLI Investors, the independent asset and fund manager and specialist in logistics property, has acquired a 19,200 square metre logistics development in Ludwigsfelde, in the Berlin logistics region.
It is for the portfolio of the open-end special real estate AIF “RLI Logistics Fund – Germany II. The vendor and developer of the project is Panattoni. Construction is scheduled to start in April 2020, with completion by November.
Let prior to completion
Microvast GmbH, a 100% subsidiary of the US-based international provider of energy storage systems, is to be the long-term tenant of the logistics after completion.
The hall is a “built to suit” development for the Microvast, which is establishing its main European site. The proximity to the gateway location of Berlin and its transport infrastructure were decisive factors behind the decision to sign the lease. The logistics property is to be built in industrial park 4.0 An der Eichspitze.
The new logistics building in Ludwigsfelde will be sustainably constructed, in line with the latest standards. The logistics asset comprises two separately lettable hall segments, suitable for a wide variety of logistics purposes. It is equipped with 15 loading ramps, two ground-level gates and energy-saving LED lighting. 24/7 operation is possible. On completion, the building will be granted DGNB Gold certification, demonstrating its compliance with the ecological, economic and technical standards.
Peter Wenzel, Director Investment Management at RLI Investors, says, “We are pleased to be able to realise this new logistics property in the heavily sought-after south of Berlin in association with Panattoni, Europe’s largest developer in the logistics property sector, in the framework of our first forward-funding agreement.”
Fred Bohne, Managing Partner at Panattoni, summarises the company’s collaboration with RLI: “We have come to know RLI as a partner for speedy transactions and assured implementation. In addition to this project, we are looking forward to realising further developments in the future”.
HEUSSEN Rechtsanwälte advised RLI on the legal aspects of the transaction.
Warsaw and Krakow offices fetch up to €185m
Globalworth, the leading office investor in Central and Eastern Europe, has signed a preliminary sale and purchase agreement with Cavatina Holdings SA to acquire two landmark office developments in Poland.
Completion on the offices in Warsaw and Krakow, is scheduled for the first quarter of 2020.
Chmielna 89 is a 14-storey office development next to the Company’s 34,000 square meter Warta Tower in central Warsaw. It offers 25,000 square meters across flexible floorplates with external terracing.
Tischnera Office is a flagship office development, south of the historic centre of Krakow. The 34,000 square meter building is centred around a 1,000 square meter internal courtyard and is well-positioned for transport links to the city centre.
Annual rent expected to be €12 million
The maximum transaction consideration for the two assets has been set at €185 million, with the final consideration to be determined on their leasing status at completion and after customary deductions. The annual contracted rent of the two assets is expected to be approximately €12 million.
Dimitris Raptis, Deputy Chief Executive Officer and Chief Investment Officer of Globalworth, says,”These exciting two additions to our portfolio are part of the investment pipeline under exclusivity that we announced alongside our recent €264 million equity raise. Chmielna 89 and Tischnera Office are both new landmark projects and will further strengthen our market-leading position in Poland’s two most dynamic cities.”
Lukasz Duczkowski, Head of Investments – Globalworth Poland, adds, “The execution of this transaction confirms Globalworth’s position as the most active office investor in the Polish market year to date with nearly €470 million of transactions completed or secured. These two strikingly designed assets are situated in prime locations and are very complementary to our existing portfolio in Warsaw and Krakow, further consolidating our position as the country’s leading office investor and landlord.”
Globalworth is a listed real estate company active in Central and Eastern Europe, quoted on the AIM-segment of the London Stock Exchange. It has become the pre-eminent office investor in the CEE real estate market through its market-leading positions both in Romania and in Poland.
Florence mixed-use off-market deal
Curzon Capital Partners 5 LL has acquired a mixed-use asset in a prime location of Florence’s city centre in an off-market deal from a private investor.
The property features around 4,300 square meters Gross Leasable Area with residential, retail space, and upside asset management potential.
It is in the historical centre at the northern end of Via de Tornabuoni overlooking Piazza degli Antinori and by the Palazzo Antinori. Around 75% of the ground floor retail is occupied by Hermès. The remaining retail space is currently vacant.
Curzon Capital Partners 5 LL is a core-plus fund advised by Tristan Capital Partners.
Edoardo Crotta, Director at Tristan Capital Partners, says, “This asset is located in the heart of the luxury retail precinct of Florence with high-end fashion stores. We see ample opportunities for active asset management in the retail space and plan to modernise the residential units through refurbishment. Due to its flexible layout the property provides further business plan optionality for the upper floors.”
Progenia S.p.A., a real estate consulting firm and established asset manager for the Florence market founded by its CEO Giovanni Belloni, will act as operating partner for CCP 5 LL.
Giovanni Belloni, CEO at Progenia, says, “This property is located in one of the most prestigious areas in the city centre of Florence. In addition to the presence of luxury retailers, the area is characterised by many palaces which also attract a high footfall from both tourists and locals. This is a very attractive location for a mixed-use property of this type. Our aim is to create one of the most attractive luxury assets of Florence’s city centre.”
For more CRE deals see: https://www.consorto.com/blog/building-set-to-be-best-luxury-hotel-in-rome/