Some little birds (not involved in the deal) have been whispering in our ears, suggesting that the price (€52m) paid for Palac Andel is likely to reflect a yield in the neighborhood of 6.2 – 6.3, though this is most definitely not confirmed. “It means Prague’s already back in 2005!” says our source. And it supposedly demonstrates that there’s still interest in prime buildings in the city.
Or does it? We’re also hearing that the buyer is actually an insurance fund managed by Aberdeen. So, not a strictly third-party deal. What to make of the price then, which would otherwise dismay some people currently looking to buy in Prague? We’ll be looking for confirmation on all of this, but our sources have a history of being reliable.
The context of the story is that Aberdeen is selling properties to bolster some of its other Degi funds that it plans to re-open. So if a bunch of investors take the opportunity to cash out immediately (as inevitably some will), there should be some reserves in the kitty to cover it.
Posted in Czech Republic, investment, office, Prague, transaction
Tagged Aberdeen, Czech Republic, Degi, investment, office, Palac Andel, Prague, transaction
There’s a bunch of squawking in the local Czech news that Aberdeen Immobilien has sold Palac Andel for something north of €52m as part of a strategy to build up reserves ahead of re-opening a couple of Degi funds. The buyer is reported to be Kallisto Neunundvierzigste Vermögensverwaltungs. We’re going to scrape around for some confirmation and details before saying any more on this one (emails welcome, btw). If memory serves, however, Aberdeen bought it from the local real estate fund Realtia for €57m back in 2008 (see CIJ story).
It’s being reported that DEGI Interational and DEGI Global Business will remain closed for another year, until November 16, 2011. The liquidity just isn’t there, apparently, to prevent difficulties, or at least, that’s the concern. Read more about it here. (Yes, it’s in German, get over it. Have a plane to catch…)
Reuters has just reported that Aberdeen will be winding down DEGI Europa. There’d been a great deal of chatter in recent days about the fate of the fund, as a decision had to be made on whether to open it again during October. Apparently, rather than risk a run on the €1.3bn fund, it will be liquidated.
Under the same time constraint, KanAm Group made a similar decision about its US fund, while Morgan Stanley claims it will open for business on November 1. DEGI’s investors will be paid off in chunks, every six months, from January 2011 until 2013.
DEGI Europa was closed in October 2008 as the financial crisis reached its peak. Since that time, it’s sold €423m worth of assets, writes Das Investment.
Aberdeen Immobilien Kapitalanlagegesellschaft entered into a long-term renewal lease agreement with Deutsche Bank for its Polish head office in Warsaw. The property is directly held by the Open-ended Property Fund Degi International.
The Focus Filtrowa building, which comprises a rental area of 34,000 sqm, was built in 2000 and purchased by Aberdeen Immobilien for Degi in 2007.
The centrally-located property has held its own against numerous competitors, including new developments in the area. The 9,900 sqm lease agreement has a fixed term of seven years.
Cushman & Wakefield acted as broker on behalf of Aberdeen, whereas Jones Lang LaSalle represented Deutsche Bank.
It’s being reported that Aberdeen’s open ended Degi Global Business fund has taken a write down of €68m, which translates into a NAV fall of 21.6%. It’s blaming 65% of this on a pair of buildings it owns in Zagreb and Bucharest. Apparently as a reaction to that, TMW Pramerica has closed the fund to trading, having only re-opened it in December.