Buyers are picking up smaller assets one by one, with vendors accepting lower offers.
As sales trickle through, UK vendors in particular are selling in 2023 at lower prices than initially hoped for in 2022. M&G Real Estate and Abrdn funds, and Palace Capital have all closed such deals recently.
The only very sizeable sale this week was Signa’s circa €500 mln divestment of furniture retailer Kika, where all the value lay in the real estate, a portfolio of 40 trading stores in Austria and Germany.
Unibail-Rodamco-Westfield sold an office opposite Versailles’ main station for €95 mln, to new French SCPI manager Atland Voisin in the second biggest deal. The yield on the sale equated to 5.7%. The buyer set up in business in 2019.
There continues to be a steady flow of larger opportunities coming up for sale. A private investor is testing the market with a 260-acre strategic site at Dublin Airport, while a German developer is bringing a partly prelet Berlin office back to market with a 25% lower price tag than last year.
In the private debt market, Spanish outlet specialist Neinver and its JV partner TIAA, advised by TIAA-owned Nuveen, landed €170 mln of finance from two banks secured on its five Polish outlet centres and a retail park. Nuveeen said the sustainability-linked loan ‘underlines the confidence lenders have in the profitability of our portfolio. This is especially relevant in the current macroeconomic context..’
Brookfield secured €300 mln of debt financing against its flagship Oxfordshire science park, Harwell, from Deutsche and BNP Paribas banks, and AXA.
We also track two funds launching or raising capital.
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