Cityleaders: news

Union acquires Senator office building in Warsaw

Fri, 24 May 2013 16:36:00 +0200

Union Investment Real Estate has acquired the 25,000 m2 Senator office building in Warsaw.

]]> ]]> Union Investment Real Estate has acquired the 25,000 m2 Senator office building in Warsaw. The German fund manager purchased the recently completed building in the north of the city centre from developer Ghelamco Poland for €120 mln.
This is the first office investment for Union Investment's open-ended real estate fund UniImmo: Europa in Poland. 'This investment boosts the geographical diversification of the fund’s portfolio and further reduces the average age of its holdings,' said Reinhard Kutscher, CEO of Union Investment Real Estate.
The multi-tenant building boasts BREEAM certification and has an occupancy level of 80% across its six floors at the time of purchase. Tenants include companies from the oil, financial and media sectors. The seller is providing a five-year letting guarantee for the vacant space. The property has 322 car parking spaces. Source: PropertyEU

Milan: Qatar Holding invests in Porta Nuova Project with Hines Italia

Wed, 22 May 2013 12:50:00 +0200

Qatar Holding and Hines Italia announced a strategic partnership in Italy for the Porta Nuova...

]]> ]]> Qatar Holding LLC and Hines Italia SGR S.p.A. announced a strategic partnership in Italy for the Porta Nuova project in Milan, managed by Hines Italia SGR. Porta Nuova represents one of the most prestigious city center mixed use developments in Europe with a market value in excess of € 2 billion. The project is transforming the city of Milan by creating a new central district. The central building of Porta Nuova Garibaldi, which is leased to Unicredit, is Italy's tallest structure and a new beacon for the city. Qatar Holding will acquire, through a subscription of newly issued units, an ownership interest of approximately 40 percent while the remaining 60 percent will continue to be owned by the current sponsors. The Porta Nuova project is financed by Intesa San Paolo, Unicredit, Hypothekenbank Frankfurt, Banca Popolare di Milano and Monte dei Paschi di Siena. Qatar Holding's investment in Porta Nuova further diversifies its global portfolio in general, and increases its participation in the Italian real estate market in particular. The landmark project is expected to have a transformative impact for Milan and create value for all stakeholders. Jeff Hines, Hines President and CEO, said 'Porta Nuova represents one of the most important developments for the firm and for our investors. Hines has invested in the future of Italy not only Porta Nuova, but also with the creation of a significant in-country investment management platform.' Manfredi Catella, Hines Italia SGR CEO, said 'The partnership with Qatar Holding represents a strategic step for our investors and for Hines Italia SGR and confirms Porta Nuova as one of the most attractive investment in Italian real estate. Italy's territory is one of the most important natural resources of the country that can support economic growth in the future.'

Foreign investments into Birmingham up by over 50%

Tue, 14 May 2013 11:54:00 +0200

Birmingham attracted a 52% increase in foreign direct investment (FDI) projects in 2012/13.

]]> ]]> The number of foreign investments into Birmingham has risen by more than half in the last 12 months as a result of the city’s continued drive to attract more inward investment, according to new research from the Marketing Birmingham Regional Observatory. Birmingham attracted a 52% increase in foreign direct investment (FDI) projects in 2012/13, with the city securing 41 new projects compared with 27 in 2011/12. The 41 projects created and safeguarded 4,003 jobs for the city – an increase of 29%. The jobs will boost the local economy by an estimated £174 million. Since launching in April 2011, Business Birmingham, the city‘s inward investment programme, has helped to double the number of foreign investment projects coming to the city from 19 in 2010/11 to the 41 reported in today’s analysis. Neil Rami, Chief Executive of Marketing Birmingham, which operates Business Birmingham said: ‘These results demonstrate that Birmingham has what it takes to win over new foreign direct investment despite tough competition from locations across the globe. Our focus on key sectors and growth markets is beginning to pay dividends. This year we have successfully broadened our international reach, strengthened our relationship with UKTI and developed a stronger network of local partner support.’ The six sectors targeted for investment by Business Birmingham accounted for four in every five investments in 2012/13. They are advanced engineering; business, professional & financial services; digital media; life sciences; food & drink and IT, Electronics and Communications (ITEC). Nearly half (42%) of the city’s investment projects came from the sector advanced engineering. Business Birmingham recently launched two tools to help investors locate in the city. They include a pilot Mobile Investment Fund, backed by Birmingham City Council, which will provide financial incentives to companies needing additional support to establish a presence in the city and employ local staff. The programme also launched its Business Catalyst programme, which packages together the support on offer from the city for new investors. Wouter Schuitemaker, Investment Director of Business Birmingham, said: ‘With the launch of a new Mobile Investment Fund and the Business Catalyst Programme, we are now providing companies with the tools to develop investments here more quickly than in other locations.’ Sir Albert Bore, Leader of Birmingham City Council commented: ‘Much work has gone into developing Birmingham’s profile and potential as an international business city over the last few years. As the figures show, we are beginning to see it translate into new investments and jobs in our local economy.’

Skanska invests in Wroclaw office project

Tue, 07 May 2013 12:23:00 +0200

Skanska begins construction in May of a new 40,000 m2 office scheme in the Polish city of Wroclaw.

]]> ]]> Skanska begins construction in May of a new 40,000 m2 office scheme in the Polish city of Wroclaw. The Swedish construction and development giant said it is investing about €42 mln in phase I of the Dominikanski office project. The total leasable space for the entire project will be about 40,000 m2. Dominikanski is located in the centre of Wroclaw. The building will consist of 7 storeys, with 2 underground levels of garage for about 370 parking spaces. The building will be LEED certificated, meeting high environmental standards and featuring a number of sustainable solutions, which will enable tenants to reduce the operating costs. Dominikanski is Skanska's fourth office project in Wroclaw, after Grunwaldzki Center and Green Towers, already completed, and Green Day, currently under construction. Construction of phase I will start in the beginning of May 2013 and is scheduled for completion in the second quarter of 2015. Skanska Commercial Development Europe initiates and develops property projects in office, logistics and commercial buildings. The company’s operations are concentrated in metropolitan areas in Hungary, the Czech Republic, Romania and Poland.

Russian, US investors flex financial muscles in CEE real estate

Wed, 01 May 2013 13:19:00 +0200

Russian real estate investors are beginning to expand beyond their borders into the rest of Central...

]]> ]]> Russian real estate investors are beginning to expand beyond their borders into the rest of Central and Eastern Europe, PropertyEU's latest investment briefing has heard. 'On top of that, the Russians may start financing more property in central Europe,' Jos Tromp, head of research and consulting said in his presentation to the CEE investment briefing hosted by CBRE in London.

Russians and North American players are becoming increasingly prominent as the investor composition in the region had undergone a marked change since the outbreak of the financial crisis. Small, one-off investors have left, leaving cross-border investors to dominate the market.
Russian investment has come from very low levels in 2004 and 2005 to about 30% of the market in 2012. Traditionally, Russian investors tended to be focused on Russia and the Ukraine. 'Slowly but surely the money is coming out of Russia,' Tromp said. 'Recently a large equity fund from Russia bought one of the most core properties in Munich in a really substantial investment and we believe this may come through in the rest of CEE.'

US investors have already ramped up significantly in the region. The 2012 investment figures for CEE (including Russia) are somewhat skewed by Morgan Stanley's €900 mln acquisition of Galleria shopping centre in St Petersburg and this year by the purchase of Metropolis shopping centre in Moscow for a similar amount. Tromp: 'Yet the overall trend is nevertheless quite clear. 'US investors are being much more bullish on Europe and CEE we have seen a similar trend back in 2003-4 when they did quite a lot of acquisitions. It seems that US investors are feeling this is time to move back into the market.' Another driver for US investors has been quantitative easing in the US and fears of inflation. US investment into the region includes Blackstone acquiring shopping centres in Poland; Heitman buying in Poland, Hungary and Slovakia, and Hines active in Poland.

The Austrians used to be one of the main investor groups in CEE but they have taken a step back. 'It is quite interesting to see that the Austrians in terms of activity have almost left the market,' Tromp said. 'They are really focused on re-organising their portfolios as share prices have been quite low for some time and this is clearly affecting the deal flow there.' That said, Tromp noted that Immofinanz, the largest listed real estate company on Vienna's stock exchange, carried out one of the largest shopping centre property deals in Russia last year. The company acquired the 50% it did not own in Golden Babylon Rostokino in Moscow for €540 mln.
The Germans, who have traditionally been another group of big spenders in CEE, have also become less active due to the liquidity crisis that has left to the suspension and winding up of several open-ended funds.
It is not the case, though, that all the Germans have left the market. The largest fund managers such as Deka Immobilien, Union Investment and Deutsche Asset and Wealth Management, formerly RREEF, are still active, along with some closed-end funds.
Hamburg-based Union Investment acquired the Manufaktura shopping centre in the Polish city of Lodz during July last year for €390 mln.

Source: PropertyEU

New Moscow office space hits two-year high

Thu, 25 Apr 2013 09:48:00 +0200

The first quarter of 2013 saw the largest volume of new-build office space open in Moscow for two...

]]> ]]> The first quarter of 2013 saw the largest volume of new-build office space open in Moscow for two years, according to new research from CBRE.
The first quarter volume of new supply reached nearly 260,000 m2 - a year-on-year increase more than the double the 111,000 m2 recorded in the first three months of 2012.
The new CBRE Moscow Office MarketView also notes that Q1 2013 saw both the first new Class A office building and first mixed-use complex open in central Moscow for two years.
The city’s overall vacancy rate rose slightly in the same period to 12% - up from the 11% recorded in Q4 2012.

Paris seeks investors for major revamp project

Fri, 12 Apr 2013 14:03:00 +0200

The authorities in Paris are seeking partners for a massive regeneration project in the Roissy area...

]]> ]]> The authorities in Paris are seeking partners for a massive regeneration project in the Roissy area near the French capital. Showcased at this year’s Mipim fair, the development is part of the greater Paris regeneration project which envisages the investment of up to €25 bn by 2030 to bring new infrastructure as well as new offices, retail and housing units to the region.
‘This is a project of national interest, monitored by the government, which aims to inject new life into one of Paris’ poorest suburbs,’ said Damien Robert, CEO of Plaine de France EPA, the agency overseeing the development. ‘The whole area has already undergone a lot of development in the past few years but we need to catch up in terms of public transport and housing,’ Robert added.
In future, the Greater Paris Project will aim to deliver around 70,000 housing units a year, nearly double the amount of apartments completed today (40,000). Across this vast territory, which spans across 300 km2, EPA is overseeing two large-scale projects: Triangle de Gonesse, a new international business quarter between Roissy and Le Bourget, and the eco-quarter at Louvres and Puiseux-en-France, a residential district whose first phase has just been launched.
Located near Roissy airport, which boasts 65 million passengers a year, Triangle de Gonesse is planned to see the development of around 1 million m2 of housing, retail, and office accommodation in the coming years. Contrary to La Défense, which is mainly focused on financial services, this new business district will be targeting corporates and multinational companies across all industries, Robert said.
‘We are currently looking for partners for the office section of the project and we hope to attract international investors as well,’ he pointed out. Planning has already been completed and the company is gearing up to start on site operations.
French retail giant Auchan has been selected as the main partner for a €1.7 bn urban shopping and leisure centre to be built on the site. The complex, named Europa City, is expected to include a cultural and leisure complex including a museum, multi sport amenities and around 250,000 m2 of shops and restaurants.

Dublin launches details of Parnell Square Cultural Quarter

Wed, 10 Apr 2013 15:24:00 +0200

Lord Mayor Naoise Ó Muirí has announced details of a visionary new project for Dublin city: the...

]]> ]]> The Lord Mayor of Dublin, Naoise Ó Muirí, has announced details of a new project for Dublin city: the Parnell Square Cultural Quarter. The development will involve the construction of a new and innovative Dublin City Library on the site of Colaiste Mhuire on Parnell Square. The new City Library and the existing Hugh Lane Gallery will be connected by a civic plaza, creating a new intercultural district for Dublin. The project will fulfil the City’s ambitions for a ‘Civic Spine’ connecting the capital’s key historic places. It will be a new public landmark that will inspire physical and economic renewal. Seed capital for the project is being provided by international real estate investment and services company, Kennedy Wilson, on a philanthropic basis.

The company, which has its main European office in Dublin, will also lead further required fund raising and provide expertise to assist in management of the development. Preliminary estimates for the full development cost are €60m. Public consultation to explore how the cultural quarter can realise its potential for positive impact will commence shortly.

Patrizia consortium bags € 2,4 bn portfolio in Bavaria

Mon, 08 Apr 2013 15:21:00 +0200

A consortium headed by Patrizia Immobilien is buying listed German housing company GBW for €2.4 bn.

]]> ]]> A consortium headed by Patrizia Immobilien is buying listed German housing company GBW for €2.4 bn. The Patrizia-led group announced that it emerged as the successful bidder for the 91.9% stake (50.2 million shares) in GBW held by Bavarian banking group BayernLB.
The gross purchase price of the offer corresponds to an enterprise value of €17.58 per GBW share held by BayernLB. The transaction is subject to antitrust approval and closing is expected to take place after the annual general meeting of GBW, which is scheduled for 15 May.
The investor consortium led by German listed real estate group Patrizia consists of 27 institutional investors located in German-speaking countries, including 14 pension funds of professional associations, 8 insurance companies, 3 savings banks and 2 pension funds.
At-end December 2012, GBW group owned 32,000 residential and 300 commercial units located in Bavaria. In 2012, the portfolio generated a rental income of €149.5 mln. The purchase price for the entire equity stake will be financed entirely from equity.
This is the second €1 bn-plus German residential property portfolio transaction Patrizia has masterminded in just over a year. In February 2012, a Patrizia consortium acquired the LBBW portfolio for €1.4 bn.

NCC to redevelop Vallila area in Helsinki

Thu, 28 Mar 2013 13:16:00 +0100

Swedish construction group NCC has unveiled plans to redevelop Vallila, a former industrial area in...

]]> ]]> Swedish construction group NCC has unveiled plans to redevelop Vallila, a former industrial area in the Finnish capital Helsinki.

In a statement, NCC said it plans to convert three existing industrial brick buildings into around 55,000 m2 of office, retail and residential accommodation on the site, which is located in the centre of the city.

The project is being implemented in phases, with phase I consisting of the refurbishment of a 5,300-m2 building, constructed in 1898. The asset has already been leased in its entirety to Amer Sports. The revamp is scheduled for completion by the end of April 2014 at the latest.

NCC said it plans to achieve a BREEAM Very Good rating for all of the Vallila buildings. It would be the first time that a refurbished building receives this certificate in Finland. Source: PropertyEU