Top deals Week 47 (17- 21 November 2008)

The largest deal recorded by PropertyEU between 17 and 21 November was the EUR 280 mln transaction under which US bank JPMorgan (JPM) is to relocate its European headquarters to London's Canary Wharf from the City of London. The financial group is buying the 999-year leasehold interest from Canary Wharf Group on a plot of land at the Riverside South site at Canary Wharf. The Canary Wharf group will complete the design, planning and infrastructure work involved in the realisation of the new HQ.

In terms of pure investment reals recorded by PropertyEU, investment volumes were much lower, ranging from EUR 20 mln-plus for Rockspring's purchase of a Cadiz retail park to the EUR 6.6 mln acquisition by Redevco of the second stage of Seyringer Spitz retail warehouse park in Vienna. Redevco now owns the entire park.

Two other deals for which the transaction volumes were not disclosed were Carlyle Real Estate's acquisition of the 21,000-m² Terrazze di Vado mall project in Liguria and the acquisition by SAS Foncière Investissement, an investment subsidiary of bank Credit Mutuel Arkea, of an office project in Aix-en-Provence, France.


Top 5 deals* for Week 47 (17 - 21 November 2008)

1. JP Morgan agrees £237 mln (EUR 280 mln) deal with CWG for new European HQ

2. Rockspring purchase of Cadiz retail park for EUR 20m

3. Hansteen spends EUR 18m in Germany, the Netherlands

4. Rockspring sells office building in Montpellier for EUR 10m

5. Redevco acquires 2nd stage of Vienna retail warehouse park

* Deals for which the investment volume was given

Scroll down for the news on the deals

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1) JP Morgan agrees £237m deal with CWG for new European HQ
Date: 18 November 2008
Category: UK

US bank JP Morgan (JPM) is set to relocate its European headquarters to London's Canary Wharf from the City after it struck a £237 mln (EUR 280mln) deal with Songbird Estates, the majority owner of the Canary Wharf Group (CWG). The financial group is buying the 999-year leasehold interest of Canary Wharf Group on a plot of land at the Riverside South site at Canary Wharf for £237 mln.

Under the agreement, CWG will complete the design, planning and further infrastructure works for a new European headquarters building which will enable JPMorgan to bring together its several locations across London. CWG will wait for instruction from JPM before proceeding with final construction. If construction of the building is postponed, or put off altogether, CWG will be paid for completed work and also retain £76 mln representing a portion of developers profits related to the development, the company said on Monday.

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2) Rockspring purchase of Cadiz retail park for EUR 20m
Date: 21 November 2008
Category: Spain

UK investor Rockspring confirmed on Thursday that it has acquired the Tres Caminos retail park located in Puerto Real, Cádiz. The deal, which was reported by PropertyEU at the end of October, represents an investment of over EUR 20 mln. The company was advised by Savills. The seller was not disclosed.

The 9,250 m² retail park is let to tenants including Media Markt, Lidl, Kiabi and Merkal.

'Rockspring has acquired the asset via a forward-funding structure which was agreed in 2006. This structure was commonly used in 2004-2006 due to the lack of product and high prices. Nowadays purchasers are focused on existing mature product with a proven track record, at opportunistic prices,' said Luis Espadas, head of retail investment at Savills Madrid.

Separately, Rockspring sold the City Plaza officer building in Montpellier, France to HypoVereinsbank's investment subsidiary Internationales Immobilien-Institut for close to EUR 10 mln.

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3) Hansteen spends EUR 18m in Germany, the Netherlands
Date: 21 November 2008
Category: Deal

European industrial property investor Hansteen said it has purchased three properties in Germany and the Netherlands for a total EUR 18.2 mln. The deal reflects an initial yield of 8.4%. The assets generate a combined rent of EUR 1.52 mln.

In Germany, Hansteen has purchased a long leasehold property in Ludwigshafen from German bank IKB. The block of buildings is adjacent to a new shopping centre being developed by German developer ECE and has the potential to provide pedestrian access from the current town centre to the new shopping centre. The buildings provide retail, residential and office space.

In the Netherlands, Hansteen has now completed the sale-and-leaseback of a property in Raamsdonkveer, occupied by Bouwgros. The property is a storage and distribution facility including offices and showrooms. Furthermore, Hansteen has completed the purchase of a forward-funded new build warehouse, in Roosendaal. The 6,150 m² warehouse is let to Adexpo.

Hansteen also announced the sale of three properties at or above book value for a total sum of EUR 7.50 mln, reflecting an average yield of 6.7% The properties are located in Germany, the Netherlands and Belgium, representing a small profit over book value and a combined exit yield of 6.7%.

Ian Watson, joint Chief Executive of Hansteen said: ' We are delighted to have sold properties at a profit in the current environment and have bought some excellent properties with good yields and opportunities to add values. Whilst there are very few buyers about at present we will continue to pursue individual sales and purchases where we can see real value.'


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4) Rockspring sells office building in Montpellier for EUR 10m
Date: 19 November 2008
Category: France

HypoVereinsbank's investment subsidiary Internationales Immobilien-Institut has acquired the City Plaza officer building in Montpellier, France from UK investor Rockspring. The property, which consists of 4,000 m² of new office space, was sold for close to EUR 10 mln. The asset was developed by Groupe Lazard's construction arm.

Global property services firm Atisreal advised both the seller and the buyer.

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5) Redevco acquires 2nd stage of Vienna retail warehouse park
Date: 20 November 2008
Category: Deal

Redevco Central Europe has announced the acquisition of the second phase of the Seyringer Spitz retail warehouse park in the north of Vienna from Austrian developer MID. The purchase price for the second phase, totalling 3,345 m2, was EUR 6.6 mln.

Following the acquisition, Redevco owns the entire 9,000-m² retail warehouse park. The property is fully let and new tenants include C&A, Müller Drogerie, Bonita boutique, Jello shoes and Lavazza Café.

The opening ceremony was held at the end of September 2008, six weeks ahead of schedule. 'The expansion of this major retail scheme in this densely populated part of the Austrian capital is yet another step in Redevco Central Europe's successful strategy of "investing where people shop",' said Jörg Bitzer, managing director of Redevco Central Europe.

Redevco Central Europe was recently awarded the IPD EuroProperty award for the best specialist fund in Austria over the past three years (2005-2007).