Tenant BBVA opts to pay the sum Merlin sought, to buy back 662 branches and avoid annual rent rises of 1.5 times inflation.
The €1.99 bn sales price is a 13% premium to the Tree portfolio’s €1.75 bn book value. BBVA, which opted to exercise its right of first refusal after Merlin put the portfolio on the market last December, said the initial €200 mln hit it will take will be more than offset by the rent it will save in a high inflation environment - the leases ran to 2040.
Despite travel corridor restrictions from Asia, one of the five European office buildings sold this week was to Hong Kong-based Manhattan Garments Group. The group bought 5 Fleet Place in London at a 4% yield. Allsop, which advised the buyer, said the transaction showed appetite from Asian investors is still ‘incredibly strong.’
Also in the UK, Blackstone bought a large, highly-sustainable renovated building outside London, in Birmingham for its long-term strategy. The US giant is said to have already taken in billions for core+ real estate via its new private wealth vehicle Blackstone European Property Income Fund (BEPIF) which can invest alongside Blackstone’s flagship institutional European Core+ fund.
Funds on the market include two new value add vehicles and two debt funds. Four new office assets came to the market. We also track the latest new loans.
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