Poland commercial real estate sales have risen 30% in the last year. See details in our news summary 3 June. We also highlight major deals in France, the Netherlands, UK, and a new European investment fund.
Poland CRE investment up 30%
By: Knight Frank
Summary: The value of the Polish investment market approached EUR 1.65 billion in Q1 2022, a result 30% higher than the figure registered in Q1 2021. The warehouse sector maintains its strong position. Over the first three months of the year, the sector approached a volume of EUR 190 million. Warehousing was followed by the office sector (EUR 147 million), with retail scheme purchases reaching EUR 75 million.
Key quote: Knight Frank Poland, says, “The beginning of 2022 saw a continuation of dynamic growth in the Polish warehouse market. From January to the end of March 2022, a record-breaking new supply of 1.3 million sq m of space was delivered.”
Hines aims to attract €1b investment in first year of new fund
Summary: Hines has raised around €800 million at the first closure of its new European open-ended core-plus fund. It aims to attract €1bn in investor equity from global investors in the first 12 months following its launch.
Key quote: Alex Knapp, chief investment officer for Europe, at Hines, pictured left, commented: “We had a strong conviction that this fund would mirror the appeal of its global sister core-plus funds in the U.S and Asia, which has been realized through this exceptional equity raising in its first phase. With growing momentum, HEPP is expected to exceed our target of €1 billion in investor equity by the end of this year from investors seeking diversified global exposure.”
M&G buys Paris office for €271m
Summary: M&G Real Estate has bought the RIO office building in France’s capital from Ardian for €271m. The iconic site, first built in the 1920s, is located in the heart of the central business district at 2 place Rio de Janeiro in Paris, France, and was acquired by Ardian in 2018.
Key quote: Stéphanie Bensimon, Head of Ardian Real Estate says, “This sale demonstrates the resilience of the European office market for high quality assets, with structural changes to how people live and work creating new investment opportunities. Tenants are increasingly demanding superior spaces with the highest sustainability credentials that Rio offers. At Ardian, we are committed to transforming buildings to positively contribute to better environment for people.”
Kennedy Wilson expands European industrial platform with $287m UK deal
By: Kennedy Wilson
Summary: Kennedy Wilson has bought a $287m (€337.1m) UK urban logistics portfolio from property group Leftfield. NYSE-listed Kennedy Wilson said it has acquired the fully-let diversified portfolio of 20 logistics assets totalling 1.3m sqft. Kennedy Wilson has a 20% ownership in the portfolio and invested $24m of equity in the transaction. The properties are situated in urban logistics locations across the UK, including London and the South East, Yorkshire and the Midlands.
Key quote: Mike Pegler, the head of UK for Kennedy Wilson, says, “This acquisition provides access to a diversified portfolio of strategically located urban logistics assets. The team has outperformed in its ability to grow the European industrial platform, and we remain confident about the future growth trajectory, which is underpinned by strong fundamentals.”
Netherlands logistics development site acquired
By: Savills IM
Summary: Savills Investment Management (Savills IM), the international real estate investment manager, has acquired a modern Grade A distribution centre in Veghel in the Netherlands for its pan-European logistics strategy. The seller in the sale and leaseback transaction is Biotope B.V., the owner of the tenant Udea BV. The parties have agreed not to disclose the investment volume. The image is from Udea BV.
Key quote: Daniel Hohenthanner MRICS, Director Investment at Savills IM, says,”Due to its established location, the long-term lease to a company in the food industry and the very good ESG criteria, the property fits perfectly into our pan-European logistics strategy, which focuses on high-quality and third party-usable properties. In these times of high uncertainty, a property like this provides stability in the portfolio.”