Resolution set to finalise string of European deals

UK-based opportunity fund investor Resolution Property is poised to finalise a string of EUR 50 mln-plus retail real estate transactions across Europe.

One or two deals are in the final stages in Poland, with a further one or two transactions each in Germany, France and Spain, Resolution's Robert Wolstenholme told PropertyEU during an interview at the Mipim real estate fair in Cannes. 'We are looking at Stockholm too,' he said. Resolution typically uses 60-65% leverage to finance its acquisitions. The lot sizes for deals are usually around EUR 50 mln, though they can go up to EUR 200 mln, Wolstenholme added.

The firm raised EUR 808 mln in December 2007 for its Resolution real Estate Fund III. It carried out deals in the UK in 2008 but adopted a wait-and-see approach the following year. By June 2009 Resolution felt there were opportunities emerging in the UK again as the market appeared 'fundamentally cheap'. But the company faced significant competition for assets in the UK from institutional investors who have lower return requirements.

Resolution expanded its European team last year and gave it the 'mission' to start looking for opportunities in Continental Europe in June even though the European markets still appeared expensive. By September opportunities began to emerge and Resolution entered into exclusivity on a number of deals by December.

Wolstenholme said he expects to have the deals finalised by the end of the first quarter.