The Consorto Deals Summary 3 November features sales of leading buildings in London, Munich and Brussels as well as a warehouse in Paris.
Top Oxford Street store sale agreed for £378m
Location and details: 214 Oxford Street (Oxford Circus) in London. Part of the vacant retail space will be used by IKEA. It features 22,200 sqm of retail and office space across seven floors. Current long-term tenants in the former TopShop premises are NikeTown and VANS. The new store is planned to open in autumn 2023. The store image is credited to Wikipedia.
Buyer: Ingka Investments
Seller: Formerly owned by Arcadia.
Price: £378 million
Krister Mattsson, Managing Director of Ingka Investments, says, “We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable IKEA for our customers.
“This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London. Ingka Investments continues to target acquisitions of commercial real estate in other major cities where Ingka Group operates to find out how and where we can best meet customer needs.”
Trophy office and commercial building purchased in Munich
Location and details: Leopoldstraße 7 in Munich has around 3,400 m² of office and commercial space, with the Italian restaurant Bar Giornale on the ground floor.
Buyer: Quest Investment Partners
Seller: Catella Real Estate AG, acting on behalf of the open-ended real estate fund Catella MAX.
Price: Undisclosed. Sold as part of an asset deal.
Rouven Künzel, Managing Partner at QUEST Investment Partners, says, “We are delighted to have acquired this trophy asset with a view of the Siegestor gate in the fashionable Schwabing district. The property allows for a complete redevelopment, including the addition of new storeys and the redesign of the façade. With our refurbishment, we will once again demonstrate how we can carry buildings into the future with innovative concepts.”
Prime Paris warehouse bought for €26m
Location and details: The circa 15,000 sqm property in Garges-lès-Gonesse, north Paris, is within 10km of the 1st Paris ring-road. Valor plans to carry out a full refurbishment.
Buyer: Valor Real Estate Partners. It is the first purchase of its €1 billion investment vehicle.
Seller: Private seller
Price: Around €26 million
Ben Brunschwig, Senior Vice President at Valor, says, “This is a significant acquisition in a highly-competitive and illiquid sub-market, where there is a shortage of modern distribution space and the majority of assets are in private ownership. The unit offers scale in a dense urban location, and excellent connectivity to central Paris and the wider road network, making it ideally suited for refurbishment as high-specification and environmentally-efficient distribution space.”
Office acquired in Belgium capital
Location and details: Empereur Building, Boulevard de l’Empereur 3-5, in the Pentagon Distict, Brussels. The 8.850 sqm building is let to an established law firm and several retail tenants.
Buyer: Edmond de Rothschild REIM for its Benelux Commercial Real Estate Fund.
Seller: AIK Immobilien-Investmentgesellschaft mbH.
Robbert Bakhuijsen, Head of Investment at Edmond de Rothschild REIM, says, “This acquisition represents a strategic expansion of the fund within Brussels. Apart from its long-term cash flows it also offers a strong reversion potential. We will continue to acquire assets on strong locations and will keep sourcing new core and core+ opportunities.”