The data sheet returns after a summer break, with a round-up of key news during July that highlights a laser focus on central locations and liquid markets.
Buyers saw value in well-located offices in Paris, London, Stockholm, Dublin and Brussels priced at yields between 5.2% and 6.25%.
Just one example was Hines acquisition of Film House in London’s West End (pictured) – an opportunity thrown up by WeWork’s travails. The US investor bought the empty building for its latest value add fund, believing in its location and potential to achieve top ESG credentials.
Investors also continue to look for deals in property types driven by positive macro trends: Deka and Clarion Partners closed purchases of logistics portfolios last month, with Deka’s €560 mln acquisition of 20 properties from VGP being the largest European logistics transaction so far this year.
Recently completed loans show lenders favour the risk-returns in the residential sector: Cain International and Starwood Capital put up £535 mln for Canary Wharf Group’s next round of resi development in London Docklands, while Legal & General backed Unite’s UK student accommodation fund with £400 mln.
The queue of funds with opportunistic capital to invest grows longer, as Azora, HIG, Harrison Street and KKR all launched new fund raisings in recent weeks, believing that 2023/24 will be a strong vintage.
We also track new assets on the market, including London and Dublin offices, Paris retail and a UK cinema portfolio, with most of these likely to appeal to investors with a higher risk-return appetite.
Next week will be a round up of the most significant transactions during August.
