The largest deal recorded by PropertyEU between 15 - 19 December was the completion by Unite, the largest provider of student accommodation in the UK, of the sale of 13 properties in key student markets across the UK for just over £171 mln (EUR 190 mln). The buyer was Unite's UK Student Accommodation Fund (USAF).
The largest deal recorded by PropertyEU between 15 - 19 December was the completion by Unite, the largest provider of student accommodation in the UK, of the sale of 13 properties in key student markets across the UK for just over £171 mln (EUR 190 mln). The buyer was Unite's UK Student Accommodation Fund (USAF).
Top 5 deals* for Week 50 (15-19 December 2008)
1. Unite completes EUR 190m asset sale to fund
2. Land Securities sells New Scotland Yard property
3. Union Investment buys Marsans HQ in Madrid
4. Hercules Unit Trust sells UK shopping park for EUR 85m
5. Spanish pension fund acquires three bank properties for EUR 63m
* Deals for which the investment volume is known
Scroll down for the news on the deals
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1) Unite completes EUR 190m asset sale to fund
Date: 17 December 2008
Category: Alternative
Unite, the largest provider of student accommodation in the UK, has announced the completion of the sale of 13 properties in key student markets across the UK for just over £171 mln (EUR 190 mln). The buyer was Unite's UK Student Accommodation Fund (USAF).
The assets sold comprise 2,625 bed spaces across 13 properties in London, Reading, Manchester, Liverpool, Sheffield, Bristol, Exeter, Plymouth, Leicester, Coventry and Nottingham. The properties are 99% let for the 2008/09 academic year.
Based on an independent valuation by CB Richard Ellis the transaction volume represents a net initial yield of 6.15%.
Joe Lister, Unite's chief financial officer, said: 'The sale demonstrates both the continued appetite amongst investors for student accommodation and the sector's resilient characteristics within this period of wider economic decline. The net proceeds from the sale will be used to strengthen the group’s balance sheet and will be deployed into development activities when appropriate opportunities emerge.'_________________________________________
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2) Land Securities sells New Scotland Yard property
Date: 19 December 2008
Category: Office
UK REIT Land Securities said on Friday that it has sold its freehold interest in New Scotland Yard property to the Metropolitan Police Authority. The company confirmed in November that it was in talks with London's Metropolitan Police to sell the 137,000 m2 property to its occupier for a price believed to be around £130 mln (EUR 139 mln).
'This asset is occupied by the Metropolitan Police, and this transaction provides them with an opportunity to manage their operational property directly. As there is very limited action for us in holding the property over the next few years, a release of equity from it is in shareholders’ best interests,' said Richard Linnell, head of Investment at Land Securities' London portfolio.
Steve O’Connell, chair of the MPA Finance and Resources Committee, said: 'This move will give us total control over the operational management of the building and decisions about the timing and extent of any future asset strategies.'
Franc Warwick and King Sturge advised Land Securities and CB Richard Ellis advised the Metropolitan Police Authority.
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3) Union Investment buys Marsans HQ in Madrid
Date: 19 December 2008
Category: Office
Spain's Marsans Group has sold its Madrid headquarters to German open-ended property fund Union Investment, PropertyEU has learnt. The financial details of this deal were not disclosed, but based on similar transactions in the area, it is believed the investment amount is in the vicinity of EUR 100 - 130 mln.
Located in the Campo de las Naciones business park, the Portico office building was built by a partnership of US developer Hines and Madrid-based developer Monthisa and sold to the Spanish tourism and transportation conglomerate Marsans in 2005 to house the group's head office. It currently houses 600 employees.
Designed by Spanish architect Rafael de La Hoz, the property provides around 23,000 m2 of office space on eight floor as well as 400 parking spaces. It was completed in April 2006 with an investment of EUR 80 mln and financing provided by HSH Nordbank.
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4) Hercules Unit Trust sells UK shopping Park for EUR 85m
Date: 16 December 2008
Category: Retail
Hercules Unit Trust ('HUT'), the specialist retail warehouse fund advised by British Land and managed by Schroders, has completed the sale of its Borehamwood Shopping Park in Borehamwood, UK. The buyer was a fund advised by LaSalle Investment Management. The total investment volume came to £80.6 mln (EUR 85 mln).
The Borehamwood Shopping Park comprises about 20,000 m2 of retail space over 23 units, located adjacent to Borehamwood High Street. The scheme was originally acquired by HUT in July 2000 for £28.6 mln as part of a portfolio from Great Portland Estates. HUT subsequently undertook a programme of reconfiguration and built new units.
The sale produced an ungeared IRR of 12.41% p.a. IPD Retail Warehouse Index over the same eight year period returned 8.20% per annum.
HUT acted on its' own behalf. Wilkinson Williams acted for the purchaser.
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5) Spanish pension fund acquires three bank properties for EUR 63m
Date: 18 December 2008
Category: Office
The employee pension fund of Spain's savings bank Caja de Ahorros del Mediterraneo (CAM) has acquired three office buildings from the bank for EUR 63 mln. The assets are located in Alicante, Valencia and Barcelona, and have been leased back to CAM for a period of 20 years with an option to extend for a further 10 years.
The fund said this sale-and-leaseback transaction is expected to 'give more stability to its real estate portfolio, as it provides a stable income stream which is less subject to market volatility.'
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