Top 5 deals of Week 42

The largest deal with financial details recorded by PropertyEU between 13 and 17 October was the Realkapital Partners acquisition of an office building in Paris and logistics scheme in Algers for its Realkapital European Opportunity II fund for EUR 80 mln.

Top 5 deals* for Week 42 (13 - 17 October 2008)

1. Realkapital fund spends EUR 80m in France

2. BBK buys 33% stake in Bilbao's Iberdrola tower

3. Klepierre in EUR 71m asset swap with CNP Assurances

4. Kenmore sells assets in Norway

5. Foncière Paris France sells for EUR 34m to Sagi

* Deals for which the investment volume was given

Scroll down for the news on the deals

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1) Realkapital fund shops in France for EUR 80m

Realkapital Partners has acquired an office building in Paris as well as a logistics scheme in Algers for its recently launched Realkapital European Opportunity II fund. The total acquisition price comes to EUR 80 mln. The company has bought six storeys within a 18-floor office building in the 12th arrondissement of Paris from GE Real Estate for some EUR 40 mln. The space - representing a 33% of the Tour Lyon Bercy - provides 4,710 m² let to France Telecom and 90 underground parking spaces.The acquisition is part of a strategic partnership between DTZ Asset Management and Realkapital Partners in continental Europe.

Realkapital Partners and DTZ Asset Management were advised by Atisreal while the vendor was advised by Jones Lang LaSalle. The deal was financed by Société générale-CIG.

Additionally, Realkapital Partners has purchased from Hertel Investissement the Les Portes de l’Anjou logistics development in Durtal near Angers. The complex, which consists of three buildings, will provide some 87,000 m² of space. The recently-launched first phase has a lettable area of 24,400 m² and will be delivered in June 2009. The investment amount comes to EUR 40.2 mln. DTZ acted for Hertel Investissement. Crédit foncier de France financed the deal.

Patrice Genre, managing director and co-founder of DTZ Asset Management, said: 'We are pleased to announce the completion of this investment for Realkapital’s second fund while the first fund has only just been fully invested. DTZ Asset Management’s model, which is based on independence and reserved for third parties only, proves its relevancy in this time when the market is moving back to the fundamentals of real estate. Fund managers need to focus on the relationships with their equity investors while Asset managers can help by supplying dedicated and personalized on the ground services ranging from sourcing of opportunities to their disposal with asset management and financial administration.'
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2) BBK buys 33% stake in Bilbao's Iberdrola tower

Unlisted Spanish savings bank BBK has invested EUR 80 mln in the Torre Iberdrola tower project which is being developed in Bilbao by Spanish power company Iberdrola. The bank is acquiring a stake in the project from Iberdrola's former development partner, Promotora Vizcaína (PV), which struggled to find the much-needed cash resources for the development. The bank is taking a 33% stake in the skyscraper, with Iberdrola retaining its 66% interest.

BBK is the second-largest shareholder in Iberdrola, with a 7.19% stake.

The tower will reach a height of 165 metres on 41 storeys on completion in 2011. Iberdrola will take eight storeys in the building, which will involve an investment of up to EUR 240 mln and will provide 50,000 of office space

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3) Klepierre in EUR 71m asset swap with CNP Assurances

French shopping centre specialist Klepierre has purchased the commercial gallery in the Avenir shopping centre in Drancy from insurance group CNP Assurances for close to EUR 71 mln. According to an article in newspaper Business Immo, the deal is part of an asset swap between the two firms under which CNP Assurances has bought from Klépierre an office building in the second arrondissement of Paris for EUR 65 mln. Both companies were advised by AEW Europe. The retail property consists of 60 stores and four restaurants.

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4) Kenmore sells assets in Norway

Kenmore Property Group has sold a prime Oslo office building and two Norwegian property portfolios held by its funds, MK Capital and Kenmore Europe, for a combined total of NOK 421 (EUR 50 mln).

A 3,885-m² office building at Tollbugata 35 in central Oslo was sold to The Norwegian Order of Freemasons for NOK 85 mln, achieving a leveraged Internal Rate of Return (IRR) of 26.5% and a Return On Equity (ROE) of 33.1% excluding currency fluctuation. The sale price reflects a net initial yield of 6%.

The property is multi-let to a range of tenants and generates a total income of NOK 6.46 mln. Kenmore said the 9% vacancy rate offers further opportunities for income growth once this space is let. Kenmore acquired the asset in 2005 and has implemented a programme of asset management by re-gearing a number of the leases to market levels.

Kenmore Europe, a joint venture between Kenmore, HBoS and RevCap, has sold a portfolio consisting of three assets in Moss, south of Oslo. The properties comprise 11,681 m² of office retail and warehouse space. They were acquired by Kenmore Europe in 2005 at a competitive price, and have since been actively managed to implement new zone planning for the location and increase the retail offering and development potential. They have been sold to Aberdeen Eiendomsfond Ost AS, a regional property fund of Aberdeen Property Investors Norway for NOK 104 mln, achieving a leveraged IRR of 36.5% and a ROE of 45.7%. The sale price reflects a gross yield of 6.2%.

Kenmore fund, MK Capital, has sold four further properties in Oslo, comprising office and retail space. The assets provide a gross lettable area of 15,391 m² and have been sold as a portfolio to Norwegian property company Alliance Eiendom for NOK 232 mln, achieving a leveraged IRR of 26.1% and a ROE of 27.2%. The sale price reflects a gross yield of 6.3%.

'These transactions represent the successful conclusion to the assets’ business plan,' said David Dahlgren, Kenmore's Investment Director for the Nordic Region.

DTZ Norway, Colliers Norway and Glitnir Norsk Naringsmegling acted on behalf of Kenmore.

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5) Foncière Paris France sells for EUR 34m to Sagi

Listed property company Foncière Paris France has announced the sale of Les Ellipses office building in Saint Maurice to Sagi, part of the Groupe SNI - Caisse des Dépôts. The transaction amount comes to EUR 34 mln. Les Ellipses provides 9,300 m² of leasable office space leased to several tenants. Public company Direction Nationale dInterventions Domaniales occupies the majority of the asset (60%).

Foncière Paris France was advised by Keops.

Foncière Paris France is a French real estate investment trust specialised in commercial property. It was founded in May 2005 by Jean-Paul Dumortier.