Mid-sized investment managers were behind some of the largest multi-country acquisitions on behalf of pan-European real estate vehicles so far in the fourth quarter of 2016, deal data analysed by PropertyEU Research indicates.
M7 Real Estate, which has over €2 bn of assets under management across 13 countries, acquired €213 mln of office, retail and logistics property in Finland, Germany and the Netherlands in October. The deals were carried out on behalf of M7 EREIP IV. The fund had its first close in September 2016, raising over €175 mln which gives it a total investment capacity in excess of €400 mln.
M7 acquired two portfolios, one in Finland and one in the Netherlands, which together provide a total of 85,760 m2 across 18 assets and generate a blended NIY of 9.3%. In addition to completing on these two portfolios, M7 has exchanged contracts on the acquisition of a further 35 office, logistics and retail assets for €151 mln, bringing EREIP IV’s total phase 1 investments to around €213 mln. The assets, which are located across Finland, Germany and the Netherlands, are being acquired by M7 in four further separate transactions at a combined NIY of 9.2%.
Residential
Catella Real Estate has been busy in the residential sector. At end-September Catella's Munich-based investment division announced it was in the process of finalising €250 mln of residential acquisitions in Germany, the Netherlands, Spain, Italy and Denmark. This comes on top of the €325 mln worth of homes acquired in Germany, Poland and Denmark since January 2016.
At the beginning of December, Catella acquired 277 residential units in Berlin, Madrid and Barcelona for €92.7 mln on behalf of its Catella Wohnen Europa residential property fund. The bulk of the deal was centred on Spain. 'The Spanish market has staged a sustained recovery. In particular, Madrid and Barcelona currently offer very attractive investment opportunities. Through our Catella network, and in cooperation with our asset and investment management platform in Spain, we have identified and executed on these excellent acquisition opportunities for our investors,' commented Markus Wiegleb, portfolio manager at Catella.
Another sector was cast into the pan-European spotlight in mid-October as PropertyEU reported that Dutch firm Bouwfonds (€6 bn AUM) had put a €250 mln pan-European car park portfolio up for sale. The portfolio comprises 17 car parks in five European countries – Germany, the UK, France, the Netherlands and Spain. Cushman & Wakefield is marketing the portfolio.
Hospitality
Hotels got their place in the sun in November when Invesco (over €6 bn AUM) sold seven hotels from its second pan-European hotel fund for €415 mln to Swedish hotel platform Pandox.
The properties are located across Austria, Germany and the Netherlands, and part of the NH, Radisson Blu and Park hotel brands. Following the close of the sale, due to take place on 19 December 2016, the Invesco fund will be disinvested.
