BNP Paribas Real Estate Investment Management (REIM) Germany has acquired a retail property in Kiel for French real estate mutual fund BNP Paribas Diversipierre in an off-market deal.
It was sold by Art Invest Real Estate, which developed the retail property for Primark. The modern retail property, which features just under 6,900 square meters of sales space in a central downtown location and was completed in 2019, was opened in November last year.
Situated in a prime location between Holstenstraße and Andreas-Gayk-Straße, the retail property building adds a fresh, unique touch to Kiel’s shopping street with its classic façade. The parties involved have agreed not to disclose the purchase price of the retail property.
Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany, says, “Kiel’s reputation has grown over the past few years. The property is situated in what is going to be the heart of Kiel’s shopping street. The location will particularly benefit from the restoration of the historic waterway connection between the Kleiner Kiel canal and the Bootshafen and Schwedenkai harbours and the creation of new recreational areas along the water. We can also expect to see an increase in the popularity of German cities as travel destinations due to the current travel restrictions.”
The Primark Kleiner Kiel Canal retail property was built by Art-Invest Real Estate between 2017 and 2019 on a site encompassing roughly 2,100 square meters.
It boasts a total rental area of over 8,800 square meters and net usable area of almost 6,900 square meters. The building features four storeys above ground and one basement level. It was designed by Wegener Architects, who won the urban planning competition. Fashion chain Primark is the anchor tenant at the property under a 10-year lease.
The BNP Paribas Diversipierre fund, an Organism for Collective Investment in Real Estate (OPCI), was launched in 2014 and is structured for private investors in France.
Unlike German open-ended real estate funds, this special fund not only acquires assets directly but is also able to participate in other types of real estate investment such as stock and acquiring shares in companies. As of late March 2020, the fund had 27 properties of different types in its portfolio with a fund volume of over €2.1 billion.
Hogan Lovells acted as legal advisor to the buyer.
Retail park and commercial building bought
Union Investment has acquired a retail park in Madrid and a commercial building in Brussels for the special fund UII EuropeanM.
They are the first two retail properties to be added to the fund. The parties agreed not to disclose the purchase price.
High Street in Brussels
The commercial building at Chaussée d’Ixelles 63–65 in Brussels is in Uptown, one of two city centre retail districts. This refurbished shopping area, which was pedestrianised in 2018, attracts more than nine million visitors a year.
The commercial building was completely redeveloped in 2017 and 2018 by the vendor, Redevco, and comprises 9,409 square meters of rental space. The main tenant is discount fashion retailer Primark (95%) with 5,959 square meters of retail space split over three floors. Its lease runs until October 2033.
The remaining 5% of the rental space is taken up by six apartments on the third and fourth floors of the building. They are let to a single tenant, Comme chez Toi, for use as social housing until March 2034.
Union Investment was advised by Stibbe, Clifford Chance and CBRE on the acquisition.
Retail park in Greater Madrid area
The On Plaza retail park near Madrid, which was built in 2019, has been acquired from a private investor and offers 10,580 square meters of rental space with eight rental units split across a main building, a restaurant and a separate supermarket with its own parking deck. There are 312 parking spaces.
The property is fully let. The main tenants are supermarket chain Mercadona, DIY store Leroy Merlin, fitness studio McFit and non-food retailer Tedi.
The property is in Torrejón, around 26 kilometers (a 30-minute journey) north-east of Madrid city centre. On Plaza retail park benefits from very good visibility and excellent accessibility thanks to its location on Avenida de la Constitución, the main thoroughfare of Torrejón de Ardoz.
Union Investment was advised on the acquisition of the On Plaza retail park by Savills and Hogan Lovells.
UII EuropeanM invests primarily in the four commercial use types of office, hotel, logistics and retail, focusing on midscale properties in European real estate markets. Midscale properties are mainly characterised by prices in the double-digit million range, functional and timeless architecture, and moderate rent levels with sustainable cash flow.
Historic fully-let buildings purchased
The KanAm Grund Group has purchased a portfolio of historic buildings at 30-33 Molesworth Street, Dublin, for one of its special real estate funds.
The fully let portfolio with around 5,300 square meters of office space consists of four independent buildings. All date back to the mid-19th century and have undergone comprehensive refurbishment over the last 20 years. Some were completely rebuilt, retaining only the old facade.
Molesworth Street is one of Dublin’s most prestigious office addresses. One of Europe’s most renowned universities, Trinity College, St. Stephen’s Green and the Irish Parliament building are all close, as is the Grafton Street shopping area.
The portfolio joins the KanAm Grund European Cities KI special real estate fund, which is mainly used by savings and loans institutions, and cooperative banks.
The seller is Henderson Park, a pan-European private equity real estate manager based in London. It has been agreed to keep the sales price confidential.
The building at 32 Molesworth Street is the largest building in the portfolio in terms of area. It is fully let to the international law firm Maples for the long-term.
During the building’s comprehensive refurbishment in 2016, large parts of it were rebuilt, while the historic exterior facade was maintained. Within the framework of this refurbishment work, the building received a LEED GOLD certification, attesting to its sustainability. The other buildings in the portfolio are let to property agents Savills Commercial Ireland, a corporate law firm, a law firm, an employment agency, a multi-family-office, and an international auction house.
Historic office buildings
Dublin, Ireland’s capital and most populous city, has seen its population grow by 11.6% between 2010 and 2020. The Dublin office market is divided into the segments Dublin 1, Dublin 2, and Dublin Docklands. Molesworth Street is located in Dublin 2, home to mostly historic office buildings with smaller floor layouts, which generally offer little opportunity for property development. Dublin 2 also includes the Grand Canal and the South Docklands.
KanAm Grund Group is continuously adding to its portfolios for institutional investors. The KanAm Grund European Cities KI, now invested in two locations, namely Lyon in France and Dublin in the Republic of Ireland, adds to a growing family of specialized institutional funds by KanAm Grund Group, including other KanAm Grund Group funds investing beyond Germany throughout Europe.
The real estate of these funds is located in France, the United Kingdom, Belgium, the Netherlands, Luxembourg, Switzerland and Germany. Clients investing in this KanAm Grund Group family of funds include banks with their depot A investments, enterprises and church assets, pension funds and high-net worth family assets.
70-bedroom Stratford hotel bought
UK-based Vine Hotels has acquired the Charlecote Pheasant hotel in Warwickshire, UK for an undisclosed sum.
The 70-room countryside hotel near Stratford-upon-Avon has been bought from American equity fund Lone Star.
The hotel was forced to shut in May 2020 when its previous occupier was placed into administration.
Vine Hotels will now reinstate the jobs of 12 staff members who were made redundant with the closure, including general manager John McGhee and other key management positions. Additionally, they will create three new roles immediately at the Hotel and further new roles in the coming months.
The growing portfolio of hotels and venues includes five properties in Sheffield, the Best Western Cresta Court Hotel in Altrincham and the Mercure Dolphin Southampton Centre hotel.
Vine Hotels chief executive Garin Davies said:” I am delighted that we have added the Charlecote Pheasant Hotel to the Vine Hotels family.
“It was clearly a popular local business and occupies a superb location for visitors to Stratford-upon-Avon and the Warwickshire countryside. We see its excellent potential and have developed a comprehensive marketing and customer service strategy to secure long-term commercial success for the hotel.
“The last few months have also presented a difficult time for many of the Hotel’s dedicated staff members, so the fact that we can welcome so many of them back is something that I am particularly pleased about. We will be supporting them now in adding the necessary Covid-19 safety measures and preparing the Hotel, to allow us to welcome guests once again from August 4, 2020.”