Foreign capital scoops Europe’s largest deals

International investors from the US, Middle East and Asia dominated the buyer list of Europe’s top 10 largest real estate deals of 2015.

In total, PropertyEU research tracked down at least 10 commercial real estate transactions over the €1 bn mark last year, led by Lone Star’s purchase of the Project Churchill portfolio, believed to be closed at €2.9 bn, or a 20% discount to face value. A €200 mln tranche of the loans was subsequently sold to Tristan Capital in a secondary sale process known as Project Randolph.

Including residential transactions, the largest buyer was by far US private equity group Cerberus, which purchased over €28 bn of European loans and real estate in 2015, including the €13.4 bn nominally-valued Project Granite UK residential loan portfolio. The figure represents a staggering 59% increase on the acquisition volume in 2014, which in itself set a record.

Canadian pension fund CCPIB inked the third largest commercial real estate deal of the year with the €1.5 bn purchase of the Liberty Living student housing platform in the UK, followed by US investor Brookfield’s acquisition of Potsdamer Platz in Berlin for €1.4 bn.

A joint venture of AEW Europe and China’s CIC grabbed the fifth spot with the Celsius shopping centre portfolio transaction, worth some €1.3 bn. Sector-wise, the retail market experienced a striking resurgence over the course of 2015, with the trade of several assets including the Project Jewel loans, secured by Ireland’s largest mall, Dundrum Town Centre.

Interestingly, Ireland was home to two of the top 10 deals. Despite the relatively small size of the market, Dublin has emerged as one of the most active investment destinations and is set to report another €1 bn transaction in 2016 after Green Property announced plans to sell Blanchardstown Centre for around €1 bn. 'There has been a wave of international, institutional capital chasing the very best of Irish real estate,’ commented John Moran of JLL, joint selling agent with Eastdil Secured for the asset.

TOP 10 LARGEST COMMERCIAL REAL ESTATE DEALS OF 2015
BUYER, ASSET, PRICE, FACE VALUE
Lone Star Project Churchill, UK €2.9b €3.64b
Hammerson, Allianz Project Jewel, IR €1.85b €2.57b
CPPIB Liberty Living , UK €1.5b NA
Brookfield Potsdamer Platz, DE €1.4b NA
AEW, CIC Celsius package, BE, FR €1.3b NA
Gecina 2 towers, FR €1.24b NA
Starwood CRE assets, SW, NO €1.2b NA
QIA Porta Nuova, IT €1.2b NA
Carval, GS Project Poseidon, IR €1.18b €3.5b
Amundi Aqua package, EU €1.1b NA