Well now, this is interesting:
“Plaza Centers announces it has successfully completed the sale of 100% of its interest in a vehicle which holds the interest in the Prague 3 project (“Prague 3”), a logistics and commercial center in the third district of Prague. Earlier this year, Plaza completed its successful application to change the zoning use of Prague 3 to a residential scheme. The transaction values the asset at circa €11 million and, as a result, further to related bank financing and other balance sheet adjustments, Plaza has received cash proceeds of net circa €7.5 million.
Ran Shtarkman, President and CEO of Plaza Centers N.V., said:
“Less than two months after our first exit in India, we are pleased to announce the sale of our holding in Prague 3 in the Czech Republic. The sale is in line with our strategy and disposal programme of deleveraging and reallocating realised capital from stabilised completed projects and non-core assets to the core yielding assets across our portfolio.”
Mint Investments has completed its purchase of Olomouc City in a transaction made possible by a forced auction, led by the Naxos auction agency. One of the conditions of the purchase was that the buyer pay for the asset within 30 days, and with this condition cleared, the transactions has been closed.
Mint Investments partner Sebastien Dejanovski said he’d been pleased his company had been able to pick up the shopping center at what he called an interesting price (CZK 373m/€15m). “At the moment, there are quality tenants in the center. What’s more, we’re certain Olomouc City has great potential for further development. However, for us, what’s crucial is that it fits in perfectly with our retail property portfolio.” The company owns Laugaricio in Trencin, OC Rynovka in Jablonec, Cestlice Retail Park, and its newest center, Breda & Weinstein, is about to open in Opava.
According to ZF, the Tower Center on Victoria Square in Bucharest has been snapped up by Ioannis Papalekas and Bîlteanu Dragos, two of the strongest real estate investors in the local market. The two don’t tend to be excessively forthcoming about the deals they do, so it’s not a surprise that the pricing details haven’t surfaced yet. But they’re unlikely to have paid what the developers, Industrialexport and Avrig 35, originally envisioned, as ZF claims the building has no tenants yet. With its 22 floors and a height of 106 meters, it’s described as the tallest completed office tower in town since the doors opened in 2008.
CBRE has helped a private Austrian group dispose of the Prague 13 office project Metronom. The 34,000 sqm office project has been waiting to happen for at least a decade, but somehow never got built. That’s surprising, on the face of it, considering it sits right on top of the Nove Butovice metro station and across from a shopping mall (granted, not exactly the most successful one ever).
The owners, originally connected in some fashion with Doughty Hanson (which also used to own the Nove Butovice Business Park) seem to have decided the current development environment didn’t suit them and sold it to a company (i.e. HB Reavis) better suited to the times. Originally, the project was being sold along with a 20,000 sqm residential component, but the owners were advised to split the plot into two separate investment packages to increase the final price (and probably its sell-ability). The residential portion could end up being sold soon as well, as it happens.
“I wouldn’t say it’s the best time to sell such projects,” says one market observer. “But it’s a good time to buy. A lot of companies are coming under pressure from the banks, so they have to sell. They’re not selling for the price they wanted to achieve, but the price that the market is telling them.”
This should be music to the ears of agents everywhere, but they’re hoping someone will turn up the volume a bit higher…
It’s the same old story in Der Spiegel, but it’s really the story: big funds with tons of cash can’t figure out where to invest. The answer for some of them is emerging market real estate. Though by that, they no longer mean CEE. Maybe some of our readers have suggestions for these guys.
As head of the Norwegian sovereign-wealth fund, Slyngstad collects his country’s oil revenues, which currently total more than €100 million — per day. The fund is supposed to use these revenues to provide the country with prosperity for the long term. It’s no easy task, because the government expects Slyngstad and his staff of more than 300 people to generate a 4 percent return on investment.
In the past, investment professionals would have dismissed this requirement as uninspiring. But times have changed. Between 1999 and 2007, the Norwegian sovereign-wealth fund achieved an average annual return of almost 6 percent, but since then it has slumped to only about 1 percent.
Read the whole story here.
Hines has closed its most recent property investment vehicle focusing on Poland and Russia, a €900m Luxembourg-based fund that’s been collected €390m in capital. The money’s come from a range of financial institutions, sovereign wealth funds, pensions, trust and other investors from around the world. The fund will take advantage of Hines’ local teams. Its Polish office led by Mietek Godzisz, while Lee Timmins leads the Russian operation. Around 20 percent of the acquisitions are planned to be made in Poland, with the rest to take place in Russia. Equity has already been placed in three Russian assets.
The Belgian developer ILD has provided Skanska Property Czech Republic with an exit from part of its R6 Logistics Park development site. The transaction involved a 20,800 sqm plot on the R6 highway located five minutes from Prague’s international airport. Skanska Property’s decision to sell is part of a wider strategy of divesting itself from the R6 scheme in order to concentrate on the development of LEED-certified office buildings. Last year, it sold 75,000 sqm of the park to an Austrian-based logistics company.