Office property transactions made a gradual recovery over the summer, with PropertyEU tracking nearly 30 deals in July and August.
According to PropertyEU’s latest data sheet, which focuses on August transactions, the largest office deal of the month was in Stockholm where Atrium Ljungberg closed the purchase of Sundyberg Eken 6 & 14 for roughly €187 mln.
In Norway, Storebrand splashed out €150 mln to buy its own headquarters while London saw a string of office transactions led by Oval Real Estate’s purchase of 14 St George St for £125 mln, a mere 7% discount to the asset’s guide price of £135 mln.
The pace of hotel dealmaking also accelerated over the summer, as the segment continues to benefit from investors’ ongoing search for higher yields. In the biggest deal in August, Pandox snapped up three aparthotels in London for £230 mln.
‘We are happy to have acquired three well-positioned freehold aparthotels in strong locations in central London, thereby increasing our exposure towards the attractive ‘extended-stay’ segment. The hotels are highly profitable,’ commented Liia Nõu, CEO of Pandox.
Living and offices also dominated the list of assets on the market with UBS announcing it will kick off the liquidation process for its €2 bn Credit Suisse Real Estate Fund International vehicle, which owns a large majority of offices (83%). In the UK and Ireland, two residential REITs – Home REIT and Irish Residential Properties REIT respectively – announced plans to sell off a chunk or the entirety of their portfolios.
In the financing section, lenders kept busy with some €1.2 bn of loans getting refinanced in August.
Click here to access the data
