THE NETHERLANDS

European investment and asset management firm Avignon Capital has acquired the five-star Hilton Hotel in The Hague for €70.25million.

The contemporary five-star Hilton Hotel opened in 2010 within the former Royal Dutch headquarters building. It features 195 large guest rooms, an executive lounge, fitness area, restaurant, cocktail bar, Starbucks Café and state-of-the-art meeting facilities.

Bianca Tristao, Investment Manager at Avignon Capital says of the five-star Hilton Hotel deal, “Avignon is pleased to have acquired arguably the best hotel in The Hague that is benefiting from strong trading performance driven by a consistent customer base from multiple industries and corporate demand. The hotel offers some of the biggest guest rooms in The Hague and is well-positioned to benefit from increased tourism to the city.”

The five-star Hilton Hotel at The Hague

A large part of hotel demand is driven by its large catchment of legal and corporate customers, as the property is within walking distance of The Hague’s major commercial hub, including the Criminal Courts, Embassies, and transport hubs.

The region is also increasing in popularity with tourism and The Hague is now one of the Netherland’s strongest hotel markets.

The five-star Hilton Hotel is operated on a Management Contract to Hilton Worldwide and is trading under the globally recognized Hilton Brand. Hilton is one of the largest hotel brands worldwide, with more than 570 locations.

The sellers of the five-star Hilton Hotel were Hillgate Development and the Bon Groep. The companies were the developers of this five-star hotel as well as the owners during its operation since 2010.

This five-star Hilton Hotel deal marks Avignon Capital’s fourth hotel acquisition in the Netherlands, following the purchase of the Staybridge Suites hotel (part of The Intercontinental Group) in January 2019.

Robust performance

Bianca Tristao adds, “The Dutch hotel sector continues to show robust performance driven by increased corporate and tourism demand that provides sustained occupancy and ADR levels.

“The investment provides an excellent opportunity to capture attractive income returns through active management alongside Hilton, in order to increase revenues and maximise cost efficiencies.”

Jan Steinebach, Head of Hotels at CBRE the Netherlands, acting for the sellers, says, “We are very pleased to have found a very capable and experienced buyer for one of the most iconic and well-performing hotels in The Hague. Dutch cities like The Hague have received increased attention from national and international buyers over the past few years. Management contracts are less explored compared to leases in the hotel market in the Netherlands. However, this acquisition proves the great impact such a contract can have on the business and its performance.”

Avignon was advised by Clifford Chance and the sellers were advised by CBRE Hotels.

This purchase of the five-star Hilton Hotel follows the opening of Avignon’s first office in the Netherlands in June this year via a strategic joint venture with VasteState, a Dutch property management company.

Source: https://avignoncapital.com/news/avignon-capital-acquire-hilton-hotel-the-hague/

Two office buildings bought in Munich

GERMANY

International real estate firm, Hines, has bought two office buildings in Neuperlach, an established office, retail and residential destination in Munich.

Hines has bought two office buildings in Munich

They have been purchased on behalf of the flagship Hines European Value Fund 2 (HEVF 2).

The two office buildings are next to Einkaufs-Center Neuperlach (PEP), Munich’s largest shopping mall. They cover 87,000 square meters of office space on Fritz-Schäffer-Straße 9 and are currently fully let to Allianz.

Hines will design and seek building permits for a comprehensive refurbishment program to transform the asset into a high-quality office-led, mixed-use scheme, including residential.

Paul White, HEVF 2 fund manager, says, “We are delighted to have made a significant investment for HEVF 2 into the Munich office sector, a market we have been actively targeting for some time. Munich benefits from some of the strongest office fundamentals in Europe today, with demand also exceeding available volume and quality of space in the residential sector. Hines has a global track record of placemaking, based on employing our deep local-level relationships and a strong ground team who will lead the project. We are really excited to get going and create something very special.”

Office market is exceptionally strong

Christian Meister, managing director for Hines Germany, adds, “The office occupier market in Munich is exceptionally strong, and Fritz 9’s location in an established office submarket with excellent public transport links makes it an attractive location for a sustainable office-led mixed-use campus. Our project can meet local demand for high-quality spaces to work as well as to live, surrounded by great architecture. We will significantly improve and re-launch the Fritz 9 location and we will aim to attract a strong and vibrant tenant mix. As always, we are determined to enhance the community in which the asset is located, and we are pleased to be a part of Munich’s exciting and dynamic market.”

HEVF 2 was launched in September 2019 following full investment of commitments in Hines European Value Fund (HEVF 1), a core plus/value-add fund for which Hines raised €721 million of equity commitments in closings from July 2017 to August 2018, exceeding the original fund target size by over 40%. HEVF2 secured €637 million of investor commitments of the €1.25 billion value add fund at first closing in January 2020, with subsequent closures expected to take place throughout 2020.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management.

Source: https://www.hines.com/news/hines-expands-munich-office-portfolio-with-fritz-9-acquisition

€51.8m off-market deal for logistics assets near Lodz

POLAND

The Board of Tritax Eurobox plc, which invests in Continental European logistics real estate assets, has acquired two prime logistics properties and development land near Lodz in central Poland.

Tritex Eurobox has bought two properties in Poland

The Strykow assets cost €51.8 million (phase I) and there is the potential to invest a further €15 million developing the adjacent phase ii land.

The corporate acquisition reflects a net initial yield of 6.1% (net of acquisition costs to the company) and has potential to add value through the letting of vacant units and development of the land.

Following the acquisition of the Castorama logistics facility in April last year, this off-market investment increases Tritax Eurobox’s presence in Strykow, which is one of Poland’s largest logistics markets and a key logistics hub in the Central and Eastern European region. Strykow is close to the A1/A2 road intersection allowing access to Poland’s main arterial roads.

The two modern buildings, completed in 2018, have gross internal areas (“GIA”) of 43,218 square meters and 34,442 square meters (totalling 77,660 square meters). The properties, designed and constructed to the latest modern logistics specification, are well suited to meet occupier demands, with minimum eaves heights of 10 metres along with significant yard areas.

Phase I

55,447 square meters is let to three tenants while 22,213 square meters, which is currently vacant, has a two-year vendor’s rental guarantee. This reflects a weighted average unexpired lease term of 5 years to expiry (4.5 years to break). All rents are subject to annual upwards only indexation to 100% of local CPI.

Building 1: 43,218 square meters is let to Arvato Polska sp z.o.o until January 2025 with tenant break option in January 2024. Arvato is an international logistics service company, part of Bertelsmann Group, the global media, services and education group which generated revenues of €17.7 billion in its 2018 financial year. Arvato provides international, third party logistics services for retailer H&M from this building.

Building 2: 8,942 square meters is let until July 2029 to Stalatube sp z.o.o, a leading provider of stainless-steel solutions. A further 3,287 sqm is let to the Polish operations of German packaging company, Tillmann Wellpappe, until July 2029 with a parent company guarantee.

Phase II

Phase II of the asset is an adjacent plot of land of approximately 45,000 square meters suitable for constructing a building with a GIA of approximately 22,400 square meters. The company has entered into a funding agreement with the vendor to bring forward development of this phase on letting, increasing the Company’s investment in the asset by approximately €15 million.

Marketing of the Phase I vacancy and Phase II development is being carried out by the vendor, European Logistics Investment B.V. and its joint venture development partner, Panattoni, who have wide reach in the Polish market.

Nick Preston, Fund Manager of Tritax EuroBox, says, We are delighted to announce the twelfth investment for Tritax Eurobox plc, bringing the total amount invested to over €784.1 million and the Company’s LTV to 43%, close to the target level of 45%. The off-market acquisition of these newly developed, high specification assets situated in a prime logistics location at Strykow in Poland, is at an attractive and accretive yield.

“We are confident of delivering the identified asset management plan that is expected to provide further value from these assets, capitalising on this established logistics location with strengthening supply/demand fundamentals, excellent transport links and a robust labour market. Together, this will further support the Company’s delivery of secure long-term income to shareholders and an attractive total return.”

Source: https://www.tritax.co.uk/pressrelease/tritax-eurobox-plc-acquisition-of-two-modern-logistics-units-and-development-land/

Belgrade retail park sold by REIM

SERBIA

Mitiska REIM, in partnership with Poseidon Group, has confirmed the sale of Capitol Park Rakovica to Israeli-headquartered BIG Group.

Capitol Park Rakovica

Capitol Park Rakovica was a redevelopment of a disused brownfield factory site that created the largest retail park in the Serbian capital Belgrade. It opened in October 2017 with a gross leasable area of 19,700-square meters, offering 30 shops and parking for more than 700 cars.

A second and third phase opened, bringing the location to over 25,000 square meters GLA.

The investment in Capitol Park Rakovica was made by Mitiska REIM on behalf of the First Retail International Fund (FRI) and co-investment partner Poseidon Group.

Axel Despriet, Co-CEO of Mitiska REIM, says, “The development and sale of Capitol Park Rakovica is a classic example of Mitiska REIM’s value-add and investment approach, converting an abandoned industrial facility and site into a retail park of the highest international standard, and delivering significant value to the city district of Rakovica, its inhabitants and all stakeholders involved.”

Poseidon Group Chief Operating Officer, James Gunn, adds, “We thank local residents in Rakovica for making Capitol Park become an entertainment and shopping location of choice in Belgrade.”

Poseidon Group’s Capitol Park brand is part of a property portfolio comprising more than 310,000 square meters of built and managed retail outlets across SE Europe, 90,000 square meters used by supermarkets, and more than 1,000 residential buildings in planning and construction. 

Owned, developed and managed by Poseidon Group with its SE Europe local teams and network of offices in Bosnia, Croatia, Serbia and Slovenia, it strives to become the region’s leading retail park operator.  The London-based company plans to operate 30 retail parks and neighbourhood centres by the end of 2020.

Source: https://www.mitiska-reim.com/mitiska-reim-and-poseidon-group-sell-belgrades-largest-retail-park-to-big-group/

Five logistics assets is firm’s first deal in France

FRANCE

Funds advised by Round Hill Capital, a leading global real estate investment, development and asset management firm, have acquired a portfolio of five logistics assets in France.

Round Hill Capital has made its first investment in France

Round Hill Capital continues to seek further logistics investment opportunities across France and Europe.

This is Round Hill Capital’s first investment in France. The five institutional-quality logistics assets, four crossdocking buildings and one warehouse, are let to grade A tenants. They are in the Toulouse, Orleans and Greater East markets. They feature excellent transport connectivity, low vacancy rates and a constrained supply of available logistics buildings and development land. These assets are being acquired from La Société de la Tour Eiffel.

Round Hill Capital was advised by Monassier et Associes (notary), Linklaters (financing), Franklin Law (legal due diligence), Deloitte, Allen & Overy (structuring), REAAS (TEDD) and JLL (commercial buyside).

La Société de la Tour Eiffel was advised by Allez et Associes (notary), Gide Loyrette Nouel (lawyer) and BNP (broker).

Significant dedicated capital

Michael Bickford, founder and CEO of Round Hill Capital, says, “We have significant dedicated capital to deploy in select areas of France and wider Europe, which continue to see long term supply constraints of well-located high-quality logistics assets with excellent transport connectivity coupled with deep and increasing tenant demand.

“We are pleased to acquire these five investments, our first transaction in France, which enhances our existing Pan-European Logistics platform strategy and growth plans. Round Hill Capital is continuing to look to make further investments in industrial and logistics property and residential and student accommodation in France and across wider Europe in line with our existing growth strategies.”

Since inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 110,000 residential units and student housing beds.

Source: https://roundhillcapital.com/round-hill-capital-makes-first-investment-in-france-with-the-acquisition-of-five-logistics-warehouses/

Consorto provides weekly round-ups of European CRE deals.

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