AXA Investment Managers – Real Assets has agreed to acquire a portfolio of 11 established European hotels on behalf of clients.

The Hilton Vienna Danube Waterfront

The European hotels include the Hilton Vienna Danube Waterfront as well as the MGallery Cologne. The net price is €531 million.

The portfolio of European hotels is to be secured through the acquisition of all assets held by the Principal Hotel Immobilien Spezialfonds, managed by Principal Real Estate.

The 2,339-room portfolio of European hotels comprises business, trade fair and also leisure properties. Seven are in key cities in Germany and the others in Vienna, Turin, Lisbon and also The Hague. Internationally-renowned brands operate the European hotels. These include Accor, Hilton and also NH on long leases. 

Hotels operated by leading brands

AXA IM – Real Assets manages a €3 billion portfolio of hotels across the globe on behalf of its clients. These are primarily operated by leading hotel brands through a variety of arrangements. In the last seven months, four hotels in Australia, a prime Amsterdam city centre hotel and a hotel development in Hiroshima, Japan, have been acquired.

John O’Driscoll, Head of Transactions Europe, at AXA IM – Real Assets, says, “The hotels within this diversified portfolio are all leased on strong covenants and benefit from the solid local economics as well as tourist and business demand drivers that have underpinned their long-term performance. With various asset management initiatives already identified, including on-going renovation works being undertaken at two of the hotels, we are confident that we can further enhance the long-term income generated from the portfolio, on behalf of our clients.

“This portfolio acquisition is further evidence of our ability to gain access to unique off-market opportunities and highlights the value of our strong reputation and benefit of having local and sector expertise to efficiently execute this complex, cross border deal.”

The image is from Wikipedia. It is reproduced under CreativeCommons.


Large logistics parks portfolio sold

M7 has sold five logistics parks in Hungary

Pan-European investor and asset manager, M7 Real Estate has sold a portfolio of five logistics parks in Hungary.

It is the largest logistics transaction in Hungary when measured by Gross Leasable Area so far in 2019.

The 84,000 square meter portfolio includes three assets in Budapest, one in Eger and also another in Pécs. M7 assembled it in three separate transactions during 2016 and 2017. M7 identified an opportunity to enhance the performance of these assets and reduce vacancy by implementing a targeted €4.6 million CapEx programme and also new marketing strategies.

As a result, the average occupancy of the portfolio has increased from 63% on acquisition to 94%. The total rental income has grown by 60%. In addition, the WALT of the portfolio has almost doubled to three years.

In a separate transaction, M7 also announces the disposal of the Atom Centre, a 2,614 square meter retail park, in Paks, central Hungary.

Business plan completed ahead of schedule

Balázs Magyar, MD Hungary at M7, says, “M7 acquired the assets in this portfolio as part of the CEREF I fund, from three different sellers. We have subsequently worked closely with our partners to implement our strategy for the portfolio, leveraging our asset management expertise, improving occupancy by 28,500 square meters.

“Having successfully finished our asset management plan and created an institutional quality core plus portfolio, we made the decision to complete our business plan ahead of schedule, through this sale. This transaction, together with the sale of the Atom Centre, has allowed us to generate attractive returns for our investors.”

M7 was advised by Colliers.


Microsoft and Philips Milan HQs bought off-market for €158m

The Microsoft HQ in Milan

COIMA RES has secured off-market, the acquisition of the Microsoft and also the Philips headquarters in Milan.

The fully-let office properties fetched for an aggregate value of €158 million at a blended EPRA Topped-up Net Initial Yield of 5.0% (EPRA Net Initial Yield of 4.5%).

The two properties are the Microsoft headquarters in Milan Porta Nuova valued at €97.5 million and the Philips headquarters in Milan Bicocca valued at €60.5 million.

The Microsoft headquarters is a 9,400 sqm newly built property. It is LEED Gold certified and is designed by international architecture firm Herzog & de Meuron (construction finalised in 2016. It is entirely leased to AAA-rated global technology company Microsoft with a 4.4 years WALT. The property serves as the Italian headquarters of Microsoft. The property is in the fast-growing Milan Porta Nuova business district. It also has excellent access to the Monumentale and Garibaldi metro stations.

The Philips headquarters is a 17,500 sqm refurbished property, LEED Platinum certified, which was built in the 1980s and was refurbished in 2016-2017, designed by the Italian architect Alessandro Scandurra. The building is fully let with a 7.0 years WALT.

The property serves as the Italian headquarters of Philips, the global leader in the healthcare technology sector. It occupies more than half of the property, with the remainder leased to other tenants. The property is in the Bicocca area.

Increase in LEED-certified properties

In line with COIMA RES’ focus on sustainability, the transaction further increases the portion of LEED-certified properties in COIMA RES’ portfolio to 54% (from 44%).

Through the transaction, COIMA RES is also acquiring a 13% look-through stake in a portfolio of five technical assets in the North and Centre of Italy. They are fully leased to Telecom Italia (WALT of 13 years and a 6% net yield) and are worth €7.8 million (gross asset value on a look-through basis). The closing of the acquisition is expected in Q4 2019, subject to satisfaction of certain transaction conditions.


The Hotel Club MMV

Atream acquires four-star Alpine hotel for €13m

Atream has acquired the MMV Les Mélèzes four-star Club hotel in Arc 2000, for €13 million.

The hotel has been secured by SCPI Pierre Altitude, the first SCPI dedicated to tourism real estate in the mountains, created in 2018 by Atream.

Built in 1987, the Hotel Club MMV Les Mélèzes, in Arc 2000 has 185 rooms, and also high-end facilities, including two restaurants, a lounge, a spa and more.

Ideal resort setting

The establishment enjoys an ideal setting in the heart of the resort Les Arcs, near ski slopes and also many shops. The Paradiski ski area connects Les Arcs, La Plagne as well as Peisey-Vallandry, offering nearly 425 km of ski slopes and numerous facilities to welcome a national and international clientele throughout the year. In addition, 70% of the estate is over 2,000 meters above sea level.

This hotel is leased for a firm residual period of 15 years by MMV (Sea, Mountain, Holidays), hotel group that has more than 30 years of expertise in the mountains and operating 19 establishments 3 and 4 stars.

This first acquisition illustrates the Pierre Altitude REIT’s investment strategy, aimed at acquiring hotel assets located in the major alpine ski resorts, which are highly tourist-oriented and are also backed by leading hotel partners.

Pascal Savary, Chairman of Atream, says, “Tourism to the Mountain is experiencing a real boom, in particular, thanks to the development of concepts and multi-seasonal services. This acquisition is in line with Pierre Altitude’s investment strategy.”

Atream is an AIFM-approved independent asset management company specializing in the creation, management of real estate funds and also real estate investment advisory services for institutional and private investors.


Dozen retail parks and supermarkets bought off-market

EDEKA is a leading German supermarket

In an off-market deal, asset and property manager GPEP GmbH (GPEP) has acquired 12 retail parks and also supermarkets across Germany.

It acted on behalf of investment fund run by Bayerische Versorgungskammer (BVK) and managed by Universal-Investment.

The price has not been made public. Legal advice for the buyers was provided by GSK STOCKMANN, of Frankfurt.

The letting rate of the 48 rental units, with a leasable area of ​​approximately 26,700 square meters, is around 95%. 

Anchor tenants include major German food retailing groups, EDEKA and REWE Group, ALDI and also LIDL. The average remaining lease term (WALT) is around 7.5 years.

The parks and stores are located in Bavaria, Lower Saxony, North Rhine-Westphalia, Mecklenburg-Vorpommern, Rhineland-Palatinate and also Schleswig-Holstein. In total, 90% of the rental income is generated by the markets and retail parks in Lower Saxony and also North Rhine-Westphalia.

Attractive investments in the market

Dagmar Schuster, Head of Transaction and Investment Management at GPEP, says, “This purchase completes the existing portfolio perfectly and contributes to further diversification in terms of the tenant mix as well as the geographical distribution of the properties.”

Marcel Fuhr, Managing Director of GPEP and other responsible for acquisitions and asset and property management adds, “The acquisition of this portfolio shows that there are still attractive investments in specialist markets and retail parks in the current market. We continuously monitor the market for our investors and continue to look for suitable properties and portfolios. ”

GPEP GmbH specializes in the portfolio, asset and property management of specialist stores and also retail parks in Germany. It has built a portfolio of around €1 billion.

Bayerische Versorgungskammer is a service and competence center for professional and also municipal pensions. It manages the business of 12 legally independent professional and municipal pension funds with around 2.3 million policyholders and also pension recipients.

The photo is a file picture of an EDEKA store in Bienenbüttel, from Wikipedia.


For more CRE deals, including five Greek hotels, see the Consorto blog.

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