The German commercial real estate market has hit a new high, our news summary 5 May shows. Sales elsewhere in Europe also continue to complete, as we highlight deals in the UK, France, Austria and Sweden.
German CRE market hits Q1 record
Summary: Investors ploughed a record €18.2 billion into Germany’s commercial real estate sector in Q1. Three-quarters of it consisted of strategic corporate acquisitions in crisis-resistant sectors such as DIY and food-anchored specialist retail stores, its Capital Markets Report shows. The trend of investment into industrial and also logistics properties remained clear. It took second place behind offices in terms of investment volumes.
Key quote: Luke Dawson, Managing Director of MEA Cross-Border Capital Markets, says, “We are encouraged to see that investor confidence in the region’s CRE fundamentals and future prospects remains strong. Provisional figures for Q1 2022 put European volumes up 5% over Q1 2021, and rolling 12-month volumes up by 7%, with many investors continuing to view commercial real estate as a hedge against rising prices.”
Cain enters UK market with £550m logistics portfolio
By: Cain International
Summary: Investor Cain International has exchanged contracts with investor and developer, Firethorn Trust, to acquire a portfolio of UK logistics assets for £550 million. The Grade A logistics portfolio comprises seven UK sites, totalling 3.25 million sq ft across 22 assets. This includes two newly built developments, and five consented land sites on course for completion in 2022 and H1 2023. The acquisition represents Cain’s entry into the UK logistics market.
Key quote: Daniel Harris, Senior Managing Director and Head of European Investment for Cain International says, “This acquisition was a unique off-market opportunity for us to enter the UK logistics market through a portfolio of considerable scale and quality, as well as with a respected long-term partner. This is part of an exciting period of growth for Cain in the UK and follows our recent announcement that we plan to build a portfolio of PBSA assets worth £1.5 billion.”
Seventh largest Paris office bought for €484m
Summary: Inmobiliaria Colonial has closed the purchase of the seventh largest office building in Paris for €484 million. The 40,000 square meter building at 91-93 Boulevard Pasteur is spread over 17 floors. It has been the headquarters of Amundi, the largest continental investment fund manager, since 2012. Insurance company Primatial previously owned the building.
Key quote: Pere Violas, Colonial CEO, says the purchase “is a unique opportunity to secure a strategic position in Paris”.
BNP Paribas REIM buys off-market Vienna office
By: BNP Paribas REIM
Summary: BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has acquired a Vienna office for Next Estate Income Fund III in an off-market deal. The Franklinhaus office is at Pottendorfer Straße 23 – 25 in Wien-Meidling, in the Wienerberg submarket southwest of the city centre. The sellers are S+B Gruppe AG and also the List Group in a joint venture. The five-storey stock building and a six-storey new-build featuring roughly 19,800 sqm of rental area. Both buildings will be certified under Leadership in Energy and Environmental Design (LEED).
Key quote: Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany, says, “Vienna holds tremendous potential for innovation and is home to countless companies as well as the largest university in the German-speaking countries.”
Swedish logistics development site fetches SEK 223m
By: MIGS Logistics/Tritax
Summary: MIGS Logistics and also Tritax EuroBox have acquired a 95,000 sqm industrial and logistics development land in Malmö, Sweden. Finnish food group, Atria bought it in an off-market deal.
The Skogholmsgatan 12 brownfield land in the Fosie industrial area south of Malmö was bought for SEK 223 million, says law firm Cederquist, which represented MIGS Logistics.
The property is between the ring roads and also offers good connections to Malmö city, E4 / E6 and Copenhagen. The goal is to develop one or more modern logistics buildings. Atria Group will continue to occupy the existing site until no later early 2024
Key quote: Alina Iorgulescu, of Tritax EuroBox, says, “We are delighted to be announcing our first development project, located in one of the most sought after logistics markets in the Nordics. This exemplifies our strategic aim in building up a portfolio of high quality, sustainable logistics assets in prime markets, through partnering with local development specialists such as MIGS, adopting a disciplined approach to development and allowing the Company to access development profits. This is our first off-market deal with MIGS and we are looking forward to developing our relationship with them on future projects.”