Last-minute deal flurry needed to lift December volumes

PropertyEU Research recorded a series of large real estate transactions in Europe with a total volume of EUR 1.1 bn on 22 December. This brings the total of reported EUR 20 mln-plus deals for the first three weeks of December to EUR 5.9 bn. The figure, though sizable, is well down on previous years and it will remain so unless there are a batch of big-ticket deals that have yet to be made public.

PropertyEU Research recorded a total volume of EUR 10.5 bn for December 2010 and EUR 9.8 bn in 2009.

In 2008 and 2007 - when we recorded only deals of EUR 50 mln and above - the December volumes came to EUR 8.8 bn and EUR 13.9 bn respectively.

Many deals carried out in the last days of previous years were not reported until January or even later. Deals totalling EUR 3.4 bn - or about a third of the EUR 10.5 bn in December 2010 - were announced in early 2011.

This still leaves some EUR 7 bn of deals announced in December 2010. Of this, EUR 3.7 bn was announced in the last week before Christmas, compared to about EUR 2.5 bn in the same period this year.

December 22 this year stands out as day when more than EUR 1 bn worth of deals announced. The three largest were domestic rather than cross-border in nature. Two were carried out by Swedish pension giant AMF. The veteran real estate investor acquired three shopping centres in Stockholm for an estimated EUR 450 mln, and the Stockholm HQ of financial group Skandia for EUR 145 mln.

It is likely similar big-ticket deals are yet to be announced. But given the current volatile economic climate it is doubtful that there will be a sufficient number to bring the December volume up to the level of previous years.

A round-up of top deals and the most active investors will be published in the January edition of PropertyEU Magazine.

The next PropertyDay newsletter is published on 2 January 2011. In the we will monitor the news for major breaking news.