Top 5 investment deals, 9-13 February 2009

The largest real estate investment transaction reported by PropertyEU between 9 - 13 February 2009 was the sale by British Land of a 50% stake in its Meadowhall shopping centre for £588 mln (EUR 673 mln) to AIM-listed property investor London & Stamford and a partner.

Top 5 deals* in 2-6 February 2009

1. British Land sells 50% of Meadowhall mall for EUR 673m

2. Sberbank acquires complex in Moscow for $300m

3. La Lucette sells assets in France for EUR 146m

4. Henderson fund acquires Barberino retail outlet for EUR 125m

5. Neinver fund shops in Germany with EUR 110m deal

* Deals for which the investment volume was given

Scroll down for the news on the deals

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1) British Land sells 50% of Meadowhall mall for EUR 673m
Date: 10 February 2009
Category: Retail

UK REIT British Land has sold a 50% stake in its Meadowhall shopping centre for £588 mln (EUR 673 mln) to AIM-listed property investor London & Stamford and a partner. In a statement issued on Monday, British Land said it has exchanged contracts to form a new 50:50 joint venture partnership for the freehold interest in its flagship property located near Sheffield. The transaction reflects a net initial yield of 6.75%. The deal will complete on 11 February.

British Land will be appointed property managers to Meadowhall and will act jointly with London and Stamford as strategic advisors for the joint venture company, which will also own and administer certain nearby properties, including a Premier Inn Hotel, TGI restaurant, and two petrol stations which are part of the Meadowhall site.

The purchase price, valuing Meadowhall at £1.175 bn, will comprise a cash sum of £170 mln, of which £123 mln to be paid on completion and £47 mln as a further deferred payment. The deferred payment is based on Meadowhall achieving additional income from identified new lettings. The transaction also includes £835 mln of outstanding securitised third-party debt at an average interest rate of 4.98%. The debt, in the form of securitised bonds, is not due for repayment until 2032.

The 74-acre surrounding development land, along with other ancillary sites, will remain wholly in British Land ownership, although the JV will have the option to acquire it at a later date at market value.

Meadowhall is one of only six out of town super-regional Shopping Centres in the UK and is home to some of the most established international and national retailers in the country, including Debenhams, Marks & Spencer, Next and Primark. Located in South Yorkshire and first opened in 1990, it comprises approximately 1.5 million sq ft of retail and leisure accommodation and around 12,000 car spaces.

The formation of the joint venture is one of a number of actions by which British Land is seeking to increase its financial flexibility. The company said it continues to consider its options so as to position it to benefit from the opportunities presented by current market conditions.

Raymond Mould, the non-executive chairman of London & Stamford Property, said: 'Opportunities to invest in such an asset are very rare and this transaction represents an outstanding acquisition for us and our partner. We look forward to working closely together with British Land to add further value to Meadowhall.'

Strategic advice will be provided jointly by LSI Management LLP, advisor to London & Stamford Property and British Land, and property management services will be provided by British Land.

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2) Sberbank acquires complex in Moscow for $300m
Date: 10 February 2009
Category: Office

Russian savings bank Sberbank has invested close to $300 mln (EUR 230 mln) in the acquisition of the Yuzhny Port office copmplex in Moscow from developer Midland Development, newspaper Vedomosti has reported. The centre, which is currently being renovated, comprises 57,000 m² of office space that Sberbank has leased over the past years. Midland Development is a subsidiary of the Canadian Midland Group.
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3) La Lucette sells assets in France for EUR 146m
Date: 13 February 2009
Category: Office

Compagnie La Lucette said it has sold three assets in France for a total of EUR 146 mln. The disposals, which were carried out during the fourth quarter of the year, were in line with the company's strategy to sell mature or non strategic properties. They include the Scribe building in the ninth arrondissement of Paris which was sold for a net price of EUR 100 mln, an office building in Charenton recently leased to Docapost with a 10-year lease term and a plot of land in Boulogne Billancourt. The Charenton property was sold for a total of EUR 42 mln.

The French SIIC completed EUR 370 mln worth of sales in 2008, of which about 40% in the fourth quarter of the year. The company said it has outperformed its 2008 sale target of EUR 300 mln. For 2009, it plans to sell EUR 200 mln worth of assets.

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4 ) Henderson fund acquires Barberino retail outlet for EUR 125m
Date: 11 February 2009
Category: Retail
Henderson Global Investors has acquired the Barberino designer outlet centre in Italy from McArthurGlen for EUR 125 mln. The property is located in Barberino del Mugello, 25 km north of Florence and is being contributed to Henderson’s European Outlet Mall Fund.

Opened in March 2006, the Barberino scheme currently comprises about 21,500 m² of gross floor space, representing Phase 1 of development. The centre is let to over 100 tenants including D&G, Polo, Ralph Lauren, Prada, Roberto Cavalli and Richmond. Phase 2 is scheduled to open in 2010, and will add a further 6,000 m² of retail space.

Following this acquisition, Henderson European Outlet Mall Fund directly owns nine retail outlets across France, Italy, Austria, the Netherlands, Belgium, and Germany. Three retail outlets are indirectly held in the UK, for a total portfolio value of about EUR 1.2 bn.
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5) Neinver fund shops in Germany with EUR 110m deal
Date: 9 February 2009
Category: Retail

Neinver, a leading Spanish developer, asset manager and investor, has acquired the Zweibrucken Designer Outlet in Germany from a joint venture of UK firms Kenmore Property Group and Revcap for EUR 110 mln. The property will be held in the investment portfolio of Irus European Retail Property Fund.

Opened in 2001, the Zweibrucken Designer Outlet is Germany's largest designer outlet centre, featuring 23,585 m² of retail space and 1,750 parking spaces. Following the recently completed third phase, it offers a total of 108 top brand-name shops including Versace, Tommy Hilfiger, Polo Ralph Lauren, Gant, Levis, Nike, Puma, Lacoste, Mango, Burberry, Diesel and CK Underwear. It is located on the border of France, Germany and Luxemburg, with a catchment area of over 15 million people. Neinver said 'its strategic location and strong performance were compelling reasons' for the acquisition.

Manuel Lagares, CEO/General Manager, commented: 'This acquisition ends a year in which we have successfully added assets in Italy, Spain and Poland to the fund, comprising a total of almost 95,000 m².'

Rob Brook, managing director of Kenmore, added: 'Having strategically invested in, developed and managed two phases of this dynamic German retail scheme, we have optimised its investment and asset management potential and delivered a premier designer shopping destination to the market, thereby underlining Kenmore’s core strengths and skill sets.'

Neinver will be responsible for leading the fourth phase of development, in addition to managing the entire complex - which will have a total surface area of 27,200 m² comprising up to 140 shops.

King Sturge acted on behalf of Kenmore Property Group and DTZ advised Neinver.

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