Capreon, the property firm formed by the Noé Group following its split from BMO Real Estate Partners, has carried out its first transactions in the UK and Netherlands.
On Friday, Capreon said it had sold the The Rylands Building in Manchester, which houses a Debenhams department store, to German family office AM Alpha for £87 mln (€98.9 mln).
The price reflects a net initial yield of around 5% and a capital value of approximately £185 per sq ft. The seven-storey, 44,000 m2 building is let in its entirety to Debenhams on a lease expiring in 2039.
The deal is the first significant transaction for Capreon since it was formed by the Noé Group following the split from BMO Real Estate Partners earlier this year. For AM Alpha, it represents the second purchase in Manchester after its acquisition of The Zenith Building earlier this year.
AM Alpha was advised by Müller International and Pinsent Masons, Capreon was advised by CBRE and CMS.
Dutch deal
In a separate announcement on Thursday, Capreon said it had acquired an office building in The Hague, the Netherlands from German fund manager Union Investment.
The building, known as De Haagsche Zwaan (The Swan) because of its unique tilt which resembles a swan, provides 18,500 m2 of space and is 91% let to a number of blue-chip companies including Deloitte and Kuwait Petroleum.
Financial details were not disclosed, but Dutch land registry data reveal that Capreon paid €48 mln for the asset. The property is located in the Beatrix Quarter, the major business district of The Hague and home to many head offices of major multinationals and international organizations. Capreon said the property, which has an estimated annual income of €4 mln, offers numerous asset management opportunities.
Raphael Noé, partner and head of European property at Capreon said: ‘This acquisition perfectly aligns with Capreon’s wider continental strategy. The purchase enables us to be ahead of institutional capital flows in one of the few places where that is still possible. This, along with the number of asset management opportunities, is the first step for Capreon in capitalising on the current dynamics within the European real estate market.’
Capreon was advised on the deal by NL Real Estate, Knight Frank and CMS, while CBRE and Nautah acted on behalf of Union Investment.
