The UK tops commercial real estate transparency and European markets have made the most progess, a new index shows. We also highlight prominent logistics, retail and office sales in Poland, the UK, Italy and Germany in our news summary 6 July.
European markets among most transparent
By: JLL and LaSalle
Summary: The UK and US are the most highly transparent countries in commercial real estate, says the 2022 Global Real Estate Transparency Index (GRETI) from JLL and LaSalle. European markets have made the most progress on average since GRETI 2020 and now account for six of the twelve ‘Highly transparent’ countries, according to the benchmark of market transparency for property investors, developers and corporate occupiers. A combination of enhanced regulations and tracking of sustainability metrics, greater integration of technology from both private companies and governments, as well as more institutional investment and growing data in alternative property types, mean that France, Netherlands, Germany and Belgium – the latter of which enters the top group for the first time – are all among the leading global improvers.
Key quote: Richard Bloxam, CEO, Capital Markets, JLL, says, “Transparency is the foundation which allows corporate occupiers, as well as investors and lenders to the world’s largest asset class, to operate and make decisions with confidence. While we are encouraged to see increased transparency in many of the world’s leading markets, limited improvements in many other global markets have resulted in one of the slowest rates of progress in the index’s history and highlights growing disparity in transparency around the world.”
Poland logistics portfolio sold for €160m
Summary: Europe’s largest developer and deployer of institutional capital in the industrial and logistics real estate sector, has completed the €160 million sale of a portfolio of five fully-let logistics parks in Poland. The portfolio, covering a total of 230,000 sqm GLA, has been sold to a North American real estate investment manager buyer.
Key quote: Robert Dobrzycki, Panattoni CEO & Co-Owner Europe, says, “Although the economic outlook is not so shiny anymore, industrial is still one of the real estate asset classes continuing to attract strong interest from investors. The recent sharp rise in construction costs and the inflation indexation of rents make standing income-producing properties a very attractive proposition for investors because they can invest in fully-let real estate at below replacement cost.”
Supermarket Income REIT acquires two UK assets for €96.3m
Summary: Supermarket Income REIT plc has acquired a Tesco superstore, M&S Foodhall and an Iceland in Chineham, Basingstoke, and the acquisition of an Asda supermarket in Carcroft, Doncaster, for €96.3million (£82.9m excluding acquisition costs), reflecting a combined net initial yield of 4.9%.
Key quote: Ben Green, Director of Atrato Capital Limited, the Investment Adviser to Supermarket Income REIT plc, says, “Chineham Park was a rare opportunity to acquire a Tesco, an M&S Foodhall and an Iceland in a single transaction. The Asda acquisition represents the longest duration asset in the portfolio with a very long 100-year lease.”
Italian prime office fetches €175 million
Summary: Allianz Real Estate, acting on behalf of several Allianz Group companies, has further expanded its Italian footprint with the acquisition of a prime office asset in Rome for c. EUR 175 million. The deal has been made through the Altair Fund, a closed-end real estate fund managed by DeA Capital Real Estate SGR. The image is by Andrea Martiradonna.
Key quote: Donato Saponara, Head of Investments West Europe & Country Head of Italy, Allianz Real Estate, says, “This is a compelling opportunity to acquire a prime office asset with high-quality environmental credentials in Rome’s historical CBD, allowing us to capitalize on the strong demand from tenants for flexible solutions. The ability to execute an off-market deal for such a commercially significant building is a real testament to the capabilities of our local team and the relationships we have fostered.”
German warehouses sold to urban logistics platform
Summary: EPISO 5, a fund managed by Tristan Capital Partners has sold a portfolio of warehouse assets located in Germany to Crossbay, the urban logistics platform for leading pan-European real estate investment manager MARK. The portfolio consists of three assets delivering c. 42,000 sq m of high-quality logistics floorspace. All three assets are fully leased. The largest warehouse provides around 25,000 sq m of logistics space located within a logistics hotspot on the outskirts of Berlin. The remaining assets are in prime positions around Leipzig and Dresden.
Key quote: Marco Riva, head of logistics and Crossbay at MARK, says, “Germany remains a key target market for Crossbay as we look to grow our AUM in Germany to €300m by Q3 2022. We expect demand for high-quality logistics space close to core cities to continue to rise, with coronavirus and subsequent lockdowns only turbocharging the shift to online shopping. Our ability to deploy capital quickly combined with a genuine Pan-European network of on-the-ground local teams will allow us to source other attractive opportunities like the portfolio acquisition announced today, with our focus remaining on single-user distribution centers close to major urban areas.”