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Lincolnshire Echo, 16 April 2008
More rural jobs could soon be on the way following the completion of new industrial, warehousing and distribution units on the old RAF Swinderby site. Reit Asset Management, which is developing Network 46 on the 65-acre site between Lincoln and Newark, said phase one of its work is now finished. That means three units are ready for letting and REIT asset manager Nicholas Mehangra predicted that a shortage of modern distribution space in the area should lead to good demand. Pygott & Crone partner William Downing said:"Network 46 will provide a great boost in terms of attracting large businesses and jobs to the area."
Birmingham Post, 10 April 2008
Asset Management company REIT has acquired a new number of properties with ongoing tenancy agreements from developer Evans Property Group at Fradley Park. An agents' launch was held at Fradley Park, the warehousing and distribution development located
off the A38, near Lichfield, to showcase three buildings now managed by REIT, still to be let. Evans Property Group still owns development land with planning permission to develop over two million sq ft at Fradley Park. In his speech to guests Nicholas Mehangra, asset manager from REIT Asset Management, gave some brief background information on REIT. "Essentially we are an asset management company, we have our head office in central London and five further international offices," he said. "We have a global portfolio of property investments under our management valued in excess of 6 billion euros and in the UK alone we have more than £2 billion under our management. "REIT Asset Management acquired the Fradley property investments, in September 2007 and they formed part of a £400 million portfolio acquisition." Talking about the vacant properties, he added: " Unit 7 provides over 100,000 sq ft with a rental of £5.25 psf , Unit 5 (currently under offer) provides over 55,000 sq ft with a rental of £5.25 psf and Unit 4, provides over 29,000 sq ft with rental of £5.75 psf." He also told guests about a new development opportunity at Fradley Park. We have a 13-acre site with planning for B2 and B8, providing nearly 200,000 sq ft within ten units and a development team has been appointed to deal with this site. "Fradley is an established, well known location and the units are of good quality and our appointed agents GVA & Kingstons would be happy to provide further details on all of the properties.
Newcastle Journal, 26 March 2008
Reit Asset Management, advised by DTZ and GVA Lamb and Edge, has announced a raft of lettings at Follingsby Park in Gateshead. Most recently, DHL has completed on unit 5b, comprising 21,341 sq ft on a 10-year lease at a rent equivalent to £4.75 per sq ft. Drake and Farrel (t/a Marupak) has leased unit 19e, of 12,131 sq ft on a 10-year agreement at a rent equivalent to £5 per sq ft. The deals follow closely on the heels of four other significant deals at the industrial park. Bluebay Building Products has taken unit 16g wiht a total floor area of 11,300 sq ft for a term of 10 years at a rent equivalent to £5 per sq ft. Unit 19d, comprising 7,000 sq ft, has been taken by Bybox Field Support Ltd for a term of five years at a rent equivalent to £5.50 per sq ft. Barloworld Handling Ltd has taken unit 16f, totalling 10,095 sq ft on a ten-year lease at £5 per sq ft. Acquired by REIT Asset Management in August 2007, Follingsby Park is a 110 acre industrial and distribution park with more than 1,000,000 sq ft currently developed. There remains another 250,000 sq ft immediately available, with units from 5,500 sq ft to 60,000 sq ft. Nick Atkinson, industrial director of DTZ, said: "Follingsby Park is an extremely successful industrial scheme. "What is key to its success is the quality of the buildings and its location, which is central to the whole Tyne & Wear conurbation adn with great access to both the A1 and A19." Tom Bailey, of GVA Lamb & Edge, said: " We are particularly pleased to welcome DHL to Follingsby for the first time, and are in negotiations with several other international logistics operators looking to secure space this year.
Scotland Commercial Property Register, 01 March 2008
Two lettings at Brucefield Industry Park, Livingston which is owned by REIT Asset Management, show the benefit of the £1 million refurbishment. Homestyle Group has leased 2,890 sq metres while Instock Disposable has a unit of 1,702 Sq m. Lewis Pentland of James Barr, joint agent with DTZ, said: "Brucefield is the biggest estate under single ownership in the east of Scotland, which has allowed the landlord to refurbish units across teh board, thereby improving the area.
Property Week, 29 February 2008
REIT Asset Management has secured a debut retailer for Belgium at its retail scheme in Antwerp. Van Bommel Shoes has opened a 1,290 sq ft flagship store at Huidevetterstraat 6-8, following REIT's extensive ground-floor refurbishment. The store in Antwerp is the Dutch family-owned footwear retailer's overseas debut. Brothers Floris and Reynier Van Bommell, who manage the company, said it planned to open a further three stores in cities throughout Belgium. It said it was looking to expand into Germany, Scandinavia and the UK and wanted to gain an international reputation with brands such as Noble Blue and Floris Van Bommel. Reit bought the building, which is in a prime retail district, from bank Krediet aan de Nijverheid, from bank Krediet aan de Nijverheid in 2007. Reit said it plans to further renovate the building's upper storeys, which will be used as residential space. Cushman & Wakefield advised Reit.
Commercial Property, 27 February 2008
Businesses wanting excellent transport links and distribution facilities will soon be "flying" into Lincolnshire's largest distribution centre. Network 46 is on the 65-acre former RAF Swinderby base between Lincoln and Newark on the A46 and is being developed by REIT Asset Management following its acquisition in September 2007. With phase one now complete, three newly constructed units are available to let, ranging from a 10,000 sq ft facility, that can be divided into two units, 20,000 sq ft and 35,000 sq ft - all with eaves height between eight and 10 metres A further 60,000 sq ft with extensive yardage is available in a former RAF hangar. REIT has completed and let a 100,000 sq ft 'design & build' unit to Lincoln-based Danwood, a large independent supplier of Total Office Solutions in the UK and Ireland. Danwood's warehouse facility includes 21,000 sq ft of offices on three storeys and 122 car parking spaces on a seven acre site. The company moved into its new facility on schedule in August and is on course to crate more than 100 jobs. Nicholas Mehangra, asset manager at REIT said: "We are delighted to have completed phase one of Network 46 on schedule and with a shortage of modern distribution facilities in the area we anticipate strong demand." William Downing, a partner at Pygott Crone said:"Network 46 will provide a great boost for Lincolnshire in terms of attracting large businesses and jobs."
The Herald, 31 January 2008
A String of lettings in Livingston show the enduring popularity of the town's central location. In deals arranged by joint agents James Barr and DTZ, Homestyle Group has let 31,107 sq ft at 1 Hutton Square, Brucefield Industry Park, as storage for its Bensons Beds stores, and 18,315 sq ft to Instock Disposables, which supplies products to the catering and cleaning industry. Daniel Hall of owners REIT Asset Management said: " It is encouraging to have let our two biggest properties so quickly after a £1m refurbishment programme covering vacant units."
Estates Gazette, 26 January 2008
Leo Noé's REIT Asset Management has won a planning appeal to develop its first major residential-led, mixed-use scheme. REIT's investment vehicle, Lionsgate Properties, got planning consent to rebuild New River House, next to Enfield Town station in North London. The Brimelow McSweeney - designed scheme - Lionsgate first change of use from commercial to residential - will comprise 191 homes and 12,920 sq ft of shops in an existing nine-storey office block. The company will add four further storeys to the building and develop two more nine-storey blocks. Enfield council refused planning permission six months ago saying the scheme was "a dominant and obtrusive form of development". However, the secretary of state concluded that "the distinctive modern building would preserve the character and setting of the conservation area". Kevin McGrath, a parter at REIT, said: "Changing uses is part of our process of looking at ways to increase the value of a site, and I'm sure there will be more in the future.
Comercial Property, Scotland, 23 January 2008
Reit Asset Management has secured two lettings totalling 50,000 sq ft of industrial space at 635,000 sq ft Brucefield Industry Park in Livingston. Homestyle Group has let 1 Hutton Square for five years. The company, which was represented by Whitelaw Baikie Figes, will use the 31,107 sq ft property as a storage unit for its Benson Beds stores. And Instock Disposables has signed a 10-year lease for two Hutton Square. The 18,315 sq ft unit will be used for supplying products to the catering and cleaning industry. Lewis Pentland of joint letting agent (with DTZ) James Barr said: "Brucefield is the biggest estate under single ownership in the east of Scotland, which has allowed the landlord to refurbish units across the board, therefore improving the whole area. "These deals are reflective of this improvement and we are currently offering a variety of refurbished units from 3,000 to 25,000 sq ft." Daniel Hall of Reit Asset Management added:"it is encouraging to have let our two biggest units so quickly after our £1 million refurbishment programme, which covered all vacant units on the estate. Further units are under offer and we hope to be announcing details shortly.
Property Week, 18 January 2008
Several Transactions have been completed or are under way at Follingsby Park in Gateshead. Barlowworld Handling bought a unit on a 10-year lease at £5 / sq ft in December and B& Q has completed on a nine-year lease at £5.75 / sq ft. A further two units of 12,000 sq ft and 36,000 sq ft are in solicitors' hands. more than 1m sq ft has been developed at the 110 acre industrial park, which was bought by Reit Asset Managemeng in August 2007.
The News (Portsmouth), 15 January 2008
Gas and electricity giant Scottish and Southern Energy (SSE) has shelled out £5.8m to buy the old De La Rue Site. The building, in Walton Road, Farlington, will be used by SSE gas distribution company Southern Gas Networks (SGN) as the base for the company's Solent depot operations and map digitisation centre, as well as its 24/7 gas emergency despatch. The firm has also committed to a £3.6m refurbishment of the site, which will initially cater for 200 staff, but will ultimately be able to cope with 450 people. Part of it will be leased to sister companies Southern Electric Power Distribution and Southern Electric Contracting, which is moving out of its Lower Drayton Lane base at the end of this year or early next year. It will not create jobs in the short term. The site had been empty for two years after banknote and cash handling company De La Rue moved out making dozens of people redundant. It has relieved fears that the 120,000 sq ft building might have become derelict. SGN's Solent depot is currently in leased accommodation in Havant. It is responsible for all gas emergency and meter work as well as gas mains repair and installation work across Portsmouth and surrounding area. SGN's chief operating officer John Morea said: "The site is a long-term solution to accommodation issues we have had since the formation of our company in June 2005. "We can now relinquish four other short-term leases we have in Portsmouth and Havant and bring our staff together. "Initially we will have 200 or our staff located at the new site and we're looking foward to getting the refurbishment plans drawn up as soon as possible with work commencing early in the new year." The building was owned by REIT Asset Management which acquired it two years ago. Robin Dickens, of commercial property company Lambert Smith Hampton, which represented SGN, said: "It's quite a good utilisation of what could have become a derelict property. It was quite a hard-fought deal." Commercial property agency Vail Williams represented REIT. Ross Moyler from Vail Williams said: "This is a major transaction within Portsmouth. There's not been many buildings of this size on the market for many years."
Estates Gazette, 15 December 2007
Leo Noé's REIT Asset Management has sold one of its original German investments. The company has sold a portfolio of six high streets shops to Danish investor Investea for €50m (£35.8m) - a 6.5% yield. The properties were part of a seven strong portfolio bought from German insurance company Wüertemberger in 2002.
Estates Gazette, 12 December 2007
Leo Noé's REIT Asset Management has sold one of the original German acquisitions. The company, which set up a German office in 2000, has sold a portfolio of six high street shops to Danish investor Investea for €50m (£35.8m), reflecting a 5.26% yield. The properties - whose tenants include Orsay, New Yorker and Deichmann - were part of a seven-strong portfolio bought from German insurance company Wuertemberger Versicherung in 2002 - before most UK investors had entered the German market. REIT's European expansion has been led by Kevin McGrath who is stepping down from as UK managing director to work three days a week on a consultancy basis to pursue political and charitable interests. It comes as REIT has also bought a €48.4m (£34.7m), 6.5% portfolio of bank branches from Sparkasse - the savings bank of the city of Duisburg. The portfolio includes 51 branches let for 10 - 15 years to Sparkasse as well as 300 flats.
The Times of India, 3 November 2007
Asset management firm REIT Property Management on Friday said Bengal would figure prominently in its India-expansion plans between now and 2010. The company proposes to invest $500 million in this country over a three-year period. REIT has tied up with city- based developer Eden group to develop a Rs 2,000-crore township in Maheshtala. " This project is in line with REIT's objective of developing high quality affordable accommodation," REIT's India director Alex Hayim said. Eden officials said they would set up another Rs 300-crore township in Bonhoogly by December. Proposals have been submitted to the government to set up IT townships in Durgapur and Asansol.
The Economic Times, 3 November 2007
UK based $7billion, real estate company, Reit Asset Management, is looking at an investment portfolio of $1 billion in India over the next six years. The company has already committed an investment of $50 million and has floated three JV real estate companies in West Bengal and Maharashtra. "We would like to see our investment portfolio grow to $1 billion in the next six years. The figure is likely to touch $500 million in the next three years," Alex Hayim, director, Reit Property Management India, the Indian arm of Reit Asset Management, told reporters in Kolkata. He was here to launch the first phase of Eden City - a residential township spread over 22 acres wiht 2,188 flats. The project entails a total investment of Rs 250 - 300 crore. Incidentally, Reit Asset Management owns, manages and finances real estate properties the world over and has fully funded the Eden City project."In India, the foreign direct investment norms do not allow buying properties. We need to create them," Mr Hayim said. Incidentally, Reit Property Management and Kolkata-based Eden Realty Ventures have floated a special purpose vehicle - Eden Real Estates - for undertaking the Eden City project located in Maheshtala in south Kolkata
The Statesman, 3 November 2007
Reit Asset Management of the UK which is the FDI partner in one of the biggest housing projects of south Kolkata ~ Eden City ~ along with the Eden Group is aiming at an investment of $500 million in India over the next three years. The company has made its foray into the Indian market in 2005 after FDI was allowed in the real estate sector. Already, it has committed $50 million investment in three projects on which it is currently working with local partners ~ two projects in Pune and one in Kolkata. Speaking to reporters here today to announce the official launch of Eden City project, Mr Alex Hayim, director of REIT India confirmed the investment figure adding that the company will look for investment opportunities in such kind of projects in the country partnering with local firms and organisations. Spread over an area of 22 acres at Maheshtala, the housing project will accommodate around 2,200 flats along with other basic amenities of a housing complex. Eden group which is the local partner in the project is also planning for a second project in Maheshtala which would be much bigger than the first one. Mr Sachidanand Rai, managing director of the company said: "We are looking at 50 acres of land for developing a much bigger housing project in the area." The project, which is slated to be completed by the end of 2010, will entail an investment Rs 250 to Rs 300 crore, according to Mr Rai. However, he added, the group is planning to invest around Rs 1,000 crore at Maheshtala and its adjacent area including the second project which the company is planning right away. It has also placed a couple of other project proposals and is negotiating with the authorities concerned. These include setting up of an IT township in Durgapur, transport infrastructure development of Kolkata, and a housing project in Bonhoogly. All the projects are likely to mature in a short span of time and will be officially announced he said.
The Statesman, 3 November 2007
Reit Asset Management of the UK which is the FDI partner in one of the biggest housing projects of south Kolkata ~ Eden City ~ along with the Eden Group is aiming at an investment of $500 million in India over the next three years. The company has made its foray into the Indian market in 2005 after FDI was allowed in the real estate sector. Already, it has committed $50 million investment in three projects on which it is currently working with local partners ~ two projects in Pune and one in Kolkata. Speaking to reporters here today to announce the official launch of Eden City project, Mr Alex Hayim, director of REIT India confirmed the investment figure adding that the company will look for investment opportunities in such kind of projects in the country partnering with local firms and organisations. Spread over an area of 22 acres at Maheshtala, the housing project will accommodate around 2,200 flats along with other basic amenities of a housing complex. Eden group which is the local partner in the project is also planning for a second project in Maheshtala which would be much bigger than the first one. Mr Sachidanand Rai, managing director of the company said: "We are looking at 50 acres of land for developing a much bigger housing project in the area." The project, which is slated to be completed by the end of 2010, will entail an investment Rs 250 to Rs 300 crore, according to Mr Rai. However, he added, the group is planning to invest around Rs 1,000 crore at Maheshtala and its adjacent area including the second project which the company is planning right away. It has also placed a couple of other project proposals and is negotiating with the authorities concerned. These include setting up of an IT township in Durgapur, transport infrastructure development of Kolkata, and a housing project in Bonhoogly. All the projects are likely to mature in a short span of time and will be officially announced he said.
Property Week, 20 July 2007
The demolition of the ill-fated Xscape snowdome, the indoor ski slope at Birmingham's Star City, will be completed in the next few days, clearing the way for the reconfiguring of the 390,000 sq ft leisure park. Reit Asset Management bought Star City, the UK's largest leisure park, in December from X-Leisure, a Capital & Regional subsidiary, for £85.5m, and has just appointed Trevor Colman of Colman Architects to produce ideas for the scheme. Reit director, Alister Thompson said: "it is early days, but we are looking at some ideas, and we shall see the council in the next few weeks, before we put in a planning application in the next few months." He added: "It was a huge snowdome that never worked. The snow machine didn't work. Even on the opening night they had to import snow and it took up the whole of the atrium. The tenant's didn't like it and they are delighted that it is going. In May 2005 Capital and Regional and X-Leisure held a gala opening for Xscape, which was the first attempt at installing a 90 ft high snow slope in an existing scheme, rather than the bespoke developments at Milton Keynes, Castleford and Braehead. In the last seven months, Reit has taken steps to undo past mistakes. Although the original developer, Don Richardson, managing director of Richardson Developments, boasted in 1998 that he was building a '24 hour family leisure venue', Star City was starved of natural light. Reit has nearly finished scraping the black adhesive paper off the windows to bring in natural light. Reit also plans to bring more sports shops, such as Evans Cycles, to the leisure park. And there will be a new mall café Thompson insisted the basics of Star City are good. The four anchor tenants offer a 30-screen cinema, a bowling alley, a 20,000 sq ft casino, operated by Stanley Leisure, and a Virgin Active, which took over Holmes Place. Shortly after the park's opening in 2000 by film star George Clooney, a man was stabbed there, giving the scheme, on the former Nechells Power Station site near junction 6 of the M6, the nickname 'Stab City'. Thompson insisted the assault took place outside the development. "It is a problem of perception," he said. "And unfortunately, the two names are similar. But we haven't got any plans to change the name.
Estates Gazette, 9 June 2007
One of the most acquisitive British investors on the continent is to buy a £425m UK portfolio. Leo Noé's Reit Asset Management has snatched a mixed portfolio of mainly industrial properties from under the nose of Catalyst Capital. Three weeks ago, asset manager Catalyst was in pole position to buy the 6m sq ft portfolio from Evans Property Group. The Leeds-based firm put the properties up for sale for £410m in May to fund its £1bn development pipeline. However, REIT came back with a more attractive offer. It may represent a major return to UK investment for REIT, who has concentrated on Continental Europe and India to achieve higher returns during the past few years. Around half of its €5.5bn portfolio is held outside the UK. However, a source close to the company said it was "very keen" on UK industrial since its £173m acquisition of a 3m sq ft portfolio from Teesland last July. The portfolio carries an expensive debenture. The long-term £100m bond requires the owner to pay 11% interest to bond holders. Refinancing of the debenture, which expires in 2025, will be crucial to the profitability of the deal. Jones Lang LaSalle is advising Evans; Franc Warwick acts for REIT.
Newcastle Journal, 8 June 2007
One of the North-East's most successful business parks has been sold. London property tycoon Leo Noé's Reit Asset Management has reportedly won the race for a £425m property and development site portfolio, including Gateshead's 90-acre Follingsby Business Park, put on the market by Evans Property Group. Reit Asset Management, owner of St Katharine Docks, the luxury marina and apartment development near the Tower of London and one of the UK's biggest private property investors, made a late run for the portfolio after fund manager Catalyst Capital was reported to be the front runner last week. Leeds-based Evans bought Follingsby as a brownfield site from British Rail in the early 1990's, turning it into one of the North-East's most successful developments, tapping into growing frustration at traffic congestion and a lack of new space at nearby Team Valley industrial estate. Last year Evans let more than 200,000 sq ft of space at the 850,000 sq ft park across the A194 (M) from Heworth Gold Course and only 20 acres of the original 90-acre site remain undeveloped. The developer last November revealed plans for 200,000 sq ft of new development at Follingsby, following last year's bumper run of lettings which had carried into 2007 with nearly 20,000 sq ft of new deals since Christmas. Reit Asset Management also beat competition for the portfolio - including several acres of development at Derwent Haugh industrial estate near Scotswood Bridge, Newcastle - from Royal Bank of Scotland and from property tycoon and Gerald Ronson's Heron. Evans, a low-profile, family-owned firm, plans to use the proceeds to expand and fund the group's development pipeline, which has an end-value of more than £1bn.
Property Week, 8 June 2007
Reit Asset Management has emerged the buyer of Evans Property Group's highly coveted £425m north-of-England, industrial-led portfolio. The company, led by Kevin McGrath and Leo Noé, has pipped previous favourite Catalyst Capital to the 6m sq ft portfolio of existing and pipeline schemes by paying more than £400m. Reit's win is the final twist in a two-month bididng war for one of the UK's most coveted portfolios, which has attracted interest from CB Richard Ellis Investors, Heron International, LaSalle Investment Management, the Royal Bank of Scotland, Teesland and Segro. US industrial specialist AMB Property Corporation was also interested in buying the portfolio as a means of entering the UK market. Leeds-based Evans, which is headed by chairman Michael Evans, was floated in 1971 with assets of less than £8m and a rent roll of around £700,000 a year. Since it floated it has had a yearly dividend growth of 10%. It put the portfolio up for sale last month in its first ever big disposal. Evans is expected to use the sale proceeds to fund expansion in its serviced office division and to grow its development pipeline. The portfolio comprises 275 buildings, including 11 industrial estates, five industrial units and 12 office buildings, among them the 44,000 sq ft Dale House in Stockport and 25,000 sq ft Victoria Park House in Stafford. The largest and most prized asset is 130 acres of developable industrial land at Fradley Park in Lichfield in the West Midlands. It also includes the existing buildings at Fradley Park and Follingsbury Park in Tyne and Wear. The portfolio carries with it an expensive debenture - a long-term £100m bond that requires the owners of the portfolio to pay 11% interest to the bond holders. The expiry date for the debenture is in October 2025. Refinancing the debenture will be key to how profitable the portfolio is for the buyers, but Reit has experience in dealing with debentures. in 1999 it bought a portfolio of non-core office properties from Bourne End Properties and took over a £57.3m Norwich Union debenture, which had an interest rate of £9.8%. Reit also bought Raglan Properties' £70m listed debenture in 2000. Jones Lang LaSalle is advising Evans. None of the parties would comment.
Financial Times, 7 June 2007
Reit Asset Management, the private property company run by tycoon Leo Noé, has won the bidding battle for a £425m portfolio of assets put up for sale in the spring by Evans Property Group. Evans hired agents Jones Lang LaSalle in April to sell its portfolio of mainly industrial buildings, spread over 28 locations in the Midlands and the north-east of England. It is understood that Reit Asset Management beat competition from Catalyst, its private rival, and a consortium of Royal Bank of Scotland and Heron. Reit, one of Britain's biggest private property investors, owns St Katharine's Docks, the luxury marina and apartment development near the Tower of London. Three years ago it made an unsuccessful takeover bid for Derwent Valley. Reit was until recently one of the most active buyers in the UK market but has in the past two years been more busy overseas, where yields tend to be higher. Evan's Property, set up 70 years ago, was floated in 1971 and taken private in 1999. The group is chaired by Michael Evans, the Monaco-based tycoon, whose family is one of the most wealthy dynasties in British property. Last year Evans Property brought in three high-profile directors: Ian Henderson, former chief executive of Land Securities: Ian Marcus, head of property banking at Credit Suisse: and John Stephen, UK Chairman of Jones Lang LaSalle. The group will use the proceeds of this week's sale to fund an expansion of its development arm. Evans is building schemes in the town centres of York and Rotherham. It is also developing 100 acres next to the White Rose shopping centre and the 300-acre Skelton business park in Leeds. Evans and Reit refused to make any comment.
City AM, 7 June 2007
Reit Asset Management is to buy Evans Property Group's £425 m industrial portfolio covering 6 million sq ft. It includes 130 acres of land in the West Midlands primed for development, 275 buildings and 11 industrial estates.
Financial Times, 7 June 2007
Reit Asset Management (RAM) has won the battle to buy a £425m portfolio of mainly industrial buildings sold by Evans Property Group. The properties are spread over 28 locations in the Midlands and the North East. RAM is believed to have seen off competition from Catalyst and a consortium of Heron and Royal Bank of Scotland. Evans will use the proceeds to fund an expansion of its development division.
Estates Gazette, 6 June 2007
Reit Asset Management is about to buy a £425m industrial portfolio from Evans Property Group. Asset Manager Catalyst Capital has been frontrunner to buy the portfolio, but Leo Noé's company is understood to have come back with a more attractive bid. REIT now has the portfolio under offer for £15m above the £410m asking price. The portfolio is made up of around 6m sq ft of mostly industrial property and development sites. It includes 130 acres of developable land at Fradley Park in the Midlands. REIT has made only a handful of UK Investments over the past year, favouring the higher returns of continental Europe and India's emerging property market. Its €5.5bn portfolio is split almost 50/50 between UK and non-UK property. Family-owned Evans, advised by Jones Lang LaSalle, will use the cash to expand and fund its £1bn development pipeline. Franc Warwick advised REIT.
Property Week, 6 June 2007
Reit Asset Management has emerged as the buyer of the Evans Property Group's highly coveted £425m north-of-England, industrial-led portfolio. Property Week has learned that the company, led by Kevin McGrath and Leo Noé, has pipped previous favourite Catalyst Capital to the 6m sq ft portfolio of existing and pipeline schemes by paying more than £400m. Leeds-based Evans, which is headed by chairman Michael Evans, put the portfolio up for sale last month in its first ever big disposal. It is expected to use the sale proceeds to fund expansion in its serviced office division and to grow its development pipeline. The portfolio comprises 275 buildings including11 industrial estates, five industrial units and 12 office buildings, among them the 44,000 sq ft Dale house in Stockport and 25,000 sq ft Victoria Park House in Stafford. The larges and most prized asset is 130 acres of developable industrial land at Fradley Park in Lichfield in the West Midlands. It also includes the existing buildings at Fradley Park and Follingsbury Park in Tyne and Wear. The portfolio carries with it an expensive debenture - a long-term £100m bond that requires the owners of the portfolio to pay 11% interest to the bond holders. The debenture expirs in October 2025. Refinancing the debenture will be key to how profitable the portfolio is for REIT. Jones Lang LaSalle is advising Evans. None of the parties would comment.
Estates Gazette, 26 May 2007
Atlas Capital has bought Vintners Place on Upper Thames Street, EC4, for around £175m. The US investment group is buying the 350,000 sq ft building from REIT Asset Management, which bought it from Blackstone in 2004 for £122m. Franc Warwick advised REIT;CBRE advised Atlas.
Property Week, 25 May 2007
US Investor Atlas Capital Group has bought the most lavish City of London office development of the late 1980's. Vintner's Place on Upper Thames Street has been sold by Leo Noé's Reit Asset Management and US financial services company Capmark. They bought the building from Blackstone for £122m in 2004. Atlas Capital has paid £175m for the 265,000 sq ft building. Vintners Place is occupied by New York-based investment bank Jeffries International and Japanese bank Sumitomo. The annual income is £9.4m. It is the third deal in the City for Atlas Capital, which was launched in March last year by New York-based property entrepreneurs and former UBS bankers Jeffrey Goldberger and Andrew Cohen. In Christmas last year it bought a 50% stake in Morley's 327,166 sq ft 20 Gracechurch Street development. Its first UK investment was in August last year when it bought the 283,458 sq ft Cannon Bridge House at 25 Dowgate Hill for £206m from the Fordgate Group. Last year it was in line to buy Carlyle Group's development project at 107 Cheapside in the city but Irish property company Menolly Group bought it for around £150m. Franc Warwick advised Reit; CB Richard Ellis acted for Atlas Capital Group.
The Times, 19 May 2007
Reit Asset Management, the privately owned UK property firm whose assets include St Katharine's Docks in London, is to build nearly 5,000 flats on an old refugee colony near Calcutta. Reit has teamed up with Eden Realty Ventures, an Indian developer headed by Indrajit De. The project in Bonhoogly will result in the site's existing 800 family residents each being given a flat and 1,000 rupees a month (£12.35) for two years' temporary housing.
The Peninsula On-Line, 15 May 2007
Foreign Investment in the booming real estate sector of West Bengal gets a boost with a London-based company joining hands with an NRI entrepreneur to invest $20m in two mini-townships here. London-based Reit Asset Management, which plans to create $1bn assets in India in the next three years, has tied up with Eden Realty Ventures Private Limited, led by US-based Indrajit De, to set up the projects at Bonhoogly in north and Maheshtala in south in greater Kolkata area. "The cash investment in the two projects is $20m besides collaterals for bank finances," Eden Realty managing director Sachichidanand Rai said. "Reit India Chairman David Cohen finalised three projects in India out of 140 proposals and of the three, two are developed by us here," said Rai, an alumnus of IIT Kharagpur. Reit, the London-based real estate management trust, owns $6.8bn worth of asset in Europe. The twin projects in Kolkata in collaboration with Eden is their maiden venture with an Indian partner since their other project at Pune is a 100 percent FDI. According to David Cohen, the Chairman of Reit Property Management India, the projects are the beginning of "a long-standing relationship with the state and the city". We are proud to be associated with Reit," said Indrajit De, the NRI entrepreneur, from USA. Rai said of the two projects in Kolkata might be the state's highest cash investment in the form of FDI by any foreign company on real estate.
The Economic Times, 14 May 2007
Foreign investment in the booming real estate sector of West Bengal gets a boost with a London-based company joining hands with NRI entrepreneur to invest $20 million in two mini-townships here. London-based REIT Asset Management, which has plans to create $1 billion assets in India in the next three years, has tied up with Eden Realty Ventures Private Limited, led by US-based Indrajit De, to set up the projects at Boonhooghly in north and Maheshtala in south in greater Kolkata area. "The cash investment in the two projects is 20 million USC besides collaterals for bank finances," Eden Realty managing director Sachidanand Rai told IANS. REIT, India chairman David Cohen finalised three projects in India out of 140 proposals and of the three, two are developed by us here," an alumnus of IIT Kharagpur. REIT, the London-based real estate management trust, owns 6.8 billion USD worth assets in Europe. The twin project in Kolkata in collaboration with Eden is their maiden venture with an Indian partner since their other project at Pune is a 100 percent FDI. According to David Cohen, the chairman of REIT Property Management India, the projects are the beginning of a "long-standing relationship with the state and the city." "We are proud to be associated with REIT,"said Indrajit De, the NRI entrepreneur, from USA." Rai said of the two projects in Kolkata might be the state's highest cash incentive in the form of FDI by any foreign company on real estate. In the northern project at Bonhooghly, to be known as Bonhooghly Tenement Scheme, 18 acres of area would be developed after the same was obtained from the West Bengal government's Refugee Relief and Rehabilitation Department. "We will be giving about 800 flats free to the equal number of refugee families living there now in a deplorable state. The flats would be much bigger than they are living in now and they would also be provided open parking space for 200 cars besides community facilities like club, gym, treated water, good sewerage. "While 6 acres would be for rehabilitation with not even stamp duty fee, the remaining 12 acres would be commercially developed with 25 tall buildings offering 1476 flats. We will also beautify the lake inside," said Rai. In the southern project at Mahestala, which is a joint venture with Mahestala Municipality, 21.22 acres of land has been acquired near Nungi station on the Kolkata outskirts to build 2240 MIG flats in 44 buildings, said Rai. "We are also offering a full fledged football ground, a centre for sports, science and cultureto be donated to the municipality. We have also proposed to build a 2.5km road in the area besides widening a 5 km stretch of road," he said. "Our aim is to develop through innovations. We want to come forward with deep projects," said Rai.
Estates Gazette, 11th May 2007
Leo Noés REIT Asset Management is set to carry out the redevelopment of a refugee colony as part of a major regeneration project in India. The UK company, which advises the Noé family trust, has teamed up with local developer Laxmi to build 5,000 homes near Calcutta, in the east of India. One project, in Bonhooghly, to the north of the city, will provide 2m sq ft of flats on 18 acres of land opposite the Indian Statistical Institute. The project is a public-private partnership with the Refugee Relief and Rehabilitation Department of Bengal because 6 acres of the land house a 1950s built refugee colony.REIT will relocate 800 families living on the site and then offer a free flat to each when built. REIT will then develop 1,500 homes to sell commercially. A second project is in the municipality of Maheshtala and will be a fully commercial venture. It will include 3m sq ft of homes on 21 acres of land across 3,000 flats, which will be sold to mid-to-low earners.REIT has been targeting the sub-continent with a $1bn (£501m) fund since opening an office in Mumbai 18 months ago. REIT said it paid $15 in equity plus $7m in bank guarantees. It estimates that it will receive $140m in revenue.
The Telegraph, 8th May 2007
A UK company is taking the lead role in two housing projects near Calcutta, setting the stage for fresh foreign direct investment in Bengal real estate after the Salim Group's initiative. Reit Asset Management, a London-based company that manages real estate assets valued at over $6.8 billion globally, will partner a local developer to build nearly 5,000 flats on the northern and southern fringes of the city. The project in Bonhooghly, opposite the Indian Statistical Institute (ISI), will involve redevelopment of a refugee colony. Around 800 families living there now will be given a flat each, free of cost. The southern project at Maheshtala will be a fully commercial venture but the developers have promised to build a sports-cum-cultural centre for the municipality.The cumulative project cost is an estimated Rs 465 crore. The two projects will be developed over two to four years. David Cohen, the chairman of REIT property Management India, told the The Telegraph the projects are the beginning of what he believes will be "a long-standing relationship with the state and the city". We are attracted by the opportunities in the state and look foward to be involved in more," Cohen, who is now in France, said. The company had set up office in India two years ago, but has invested only in one project in Pune so far. "We are choosy. We looked at some 140 offers and selected three - two being in Calcutta," Cohen said. REIT will hold a majority stake in both projects with local partner Eden Realty Ventures, promoted by NRI businessman Indrajit De. "We are delighted to work with a global invester like REIT in Bengal," De said from New York. Both projects will have active participation from government departments. The Bonhooghly project will be a public-private partnership with the Refugee Relief and Rehabilitation Department of Bengal, while the Maheshtala Municipatility will partner the other project. In Bonhooghly, 6 acres are earmarked for rehabilitation. The rest of the land will have 25 buildings, including 16 G+15 towers. Prices are expected to be in the range of Rs 10-22 lakh. The Maheshtala project will have 44 buildings, including 30 G+15 towers, mostly for the middle-income group.
Property Week, 4th May 2007
Leo Noé's Reit Asset Management has teamed up with Italian Company Aedes Investments Management to launch a £5bn global investment company. The 50:50 joint venture between Reit Europe and Aedes Investment Management, a subsidiary of the listed Aedes International, will be called Escalia Capital. Its headquarters will be Luxembourg with a branch in Geneva. It has been seeded with £300m of assets in Italy and Sweden held jointly by Reit Europe and Aedes, and plans to reach £5bn in the short to medium term. Escalia will invest in core-plus and opportunistic properties throughout Europe, Asia - in particular Japan - and South America. It will also look to create specific financial products. It is targeting an internal rate of return of more than 12%. The company has secured third-party investment from institutional and private clients, among them the Noé family trust. Chris Horler, the former head of European property finance at HBOS who has headed Reit Europe since 2005, will be becoming managing director of Escalia Capital. Aedes chief executive officer Luca Castelli will be chairman while Kevin McGrath, partner at Reit and head of acquisitions, and Aedes director Sonia Derosso will become directors. Aedes and Reit have set up the company to take advantage of a wider investor base and a substantial cash pool to expand further into global property markets. Reit has a long-established relationship with Aedes. It bought a €94m (£63m)office building in Milan from the Italian company when it debuted in Italy's property market at the end of 2005. Escalia will retain control of the strategic asset management of its portfolio and is looking to recruit further staff members to help with the financial structuring of deals and derivatives transactions. Reit's latest move is in addition to its well-established presence as a global investor in Europe, the Middle East and Asia. Its €1.5bn (£1bn) German operation, headed by former HypoVereinsbank director Iris Schoeberl, will continue to operate as a separate entity. Reit Europe, which is a shareholder in Escalia, will continue to seek opportunistic investments in Europe. It has more than €500m (£340m) invested in Switzerland, Sweden and Belgium, and is targeting Europe's emerging markets such as the Czech Republic, Slovakia, Bulgaria and Greece. Reit Europe is also looking to enter Turkey and has formed an alliance with the prominent Sabanci banking family. Sabanci Holding is a leading industrial conglomerate with a market capitalism of around $7.3 bn (£3.6bn).
Property Week, 20th April 2007
David was so excited when I told him I was moving out to Mumbai. I remember him saying to me, 'Me and my wife love Indian food. We love going to Indian restaurants, and we've even been on Indian cookery courses.' I said, 'Yes, David, but have you even there?' The answer was no. My dad was born in Bombay and, although I was brought up in London, I went to India several times as a kid. When I was 23, I went to India to make a documentary about the Jews of India. It didn't make my fortune, but it went to a lot of film festivals. Eventually, I started in property, working for the residential auctions team at Allsop with Gary Murphy. David is someone I've known for some time as a family friend, but I quickly realised was a good sounding board. He's also a lot of fun. He's one of the people I most enjoy talking to in the market. He's fresh, very young - thinking despite his age - and always comes up with quirky ideas. Just go to his office, and you will see how he likes to do things differently. I decided to take a masters at City University, and by 1999 had ended up as an investment agent at Healy & Baker. But I kept thinking about India. When I was making the film, I just had this feeling that the place was really going to kick off. So, in December 2003, I decided enough was enough. I quite my job, went to India for four months and became a consultant with Trammell Crow Meghraj. I travelled the country and set out to meet developers. I knew I had a niche in India, and I went there to learn. Because of my connections, I knew I would fare better than your usual blue-blooded surveyor. And I had nothing to lose. However, the market was still in its early days, so I can back to London. But then, a year later, the foreign direct investment rules opened up. I read an article in the press about Kevin McGrath [of Reit Asset Management], which said he was considering setting up in India. I didn't waste any time and emailed him straight away. A week later, I went for a coffee in his office and he asked me to go to India. Living and working in India is as tough as I was expecting, but it's great to be here. You really feel like you're at the beginning of something big. David should definitely come and visit, although he'll probably end up starring in a Bollywood film, of at least get his marketing logo in it.
Property Week, 23rd March 2007
PricewaterhouseCoopers is thought to have decided a shortlist of six companies for the second stage of the €1bn (£680m) sale of Swedish state-owned property company CentrumKompaniet, which is being sold by the City of Stockholm. Boultbee, Carlyle Group, and Reit Asset Management are thought to be on the list.
Global, 16th March 2007
Reit Asset Management has bought a retail portfolio in Germany for €215m (£146m), taking its Germany property holdings to more than €1.6bn(£1bn). The company, headed by Leo Noé, bought the 44 shopping centres from German insurance group, Allianz. The centres are let to a range of well-known tenants. The purchase price reflects a yield of around 6.5%. Kevin McGrath, a partner at REIT, said: 'We are still very confident about the German market and this deal pushes our overall European holdings to around €5.5bn. We are hopeful of closing more deals soon.' The purchase is the latest in Reit's aggressive European Investment programme. It has also teamed up with Gerald Ronson at Heron and Apollo Real Estate Investors to make a €750m (£514m)-plus bid for the state-owned Swedish property company CentrumKompanient, which is being sold by the City of Stockholm. PricewaterhouseCoopers is acting for the City of Stockholm and started the first round of bidding two weeks ago.The company's assets comprise 10 shopping centres in the central and greater Stockholm area. The portfolio's showpiece is the 684,590 sq ft (63,600 sq m) Skarholmen shopping centre, which accounts for half of its value. It is let to tenants such as H&M, Lindex and German supermarket operator Lidl. Other centres include the 193,750 sq ft (18,000 sq m) Faltoversten shopping centre and the 107,640 sq ft (10,000 sq m) Vastermalmsgallerian shopping centre The portfolio also has office, residential and health clinic properties. Total annual income is SEK695m (£51m). Among the bidders are Boultbee, ING Real Estate, JP Morgan, GE Real Estate, Rodamco, Carlyle and Lehman Brothers. CentrumKompanient is being sold as part of a privatisation programme initiated by the conservative Centre Right Alliance for Sweden government, which was elected last year and is expected to be a hotly conteted bidding process. Yields of less than 6% are predicted.
Globes Online, 18th February 2007
REIT Asset Management Israel has bought Hadar Talpiot Mall Ltd's 50% stake in the Hadar Mall in Talpiot, Jerusalem, for $31 million. Blue Square Israel Ltd owns the other half of the mall, which has 17,000 sq m. 120,000 people visit Talpiot daily, 41% of whom visit the mall
Birmingham Post, 16th December 2006
Birmingham leisure complex Star City – home to Britain’s biggest casino and multiplex cinema – has been sold for £85.5m, it was confirmed yesterday. The 390,000 sq ft site has been sold by X-Leisure, the property fund run by Capital & Regional and Hermes Investment Management. X-Leisure – the largest owner of leisure real estate in the UK – said it had exchanged contracts unconditionally to sell Star City to REIT Asset Management, a specialist investment, finance and asset management partnership with offices in London. REIT, which currently has a global portfolio of properties under management with a value worth more that five billion Euros (£3.35 billion), also has operations in Mumbai, Munich, Stockholm and Tel Aviv. It was formed in 1996 by four equity partners - Leo Noé, Kevin McGrath, Ivor Smith and Martin Sheppard. However, REIT has yet to outline its plans for Star City. Mr McGrath, who is responsible for acquisitions, disposals, marketing and strategy implementation, was not available for comment. REIT recently acquired a £175million portfolio of 22 properties, including three in Scotland, from Teesland. The property firm also snapped up the £45million Iron Mountain factory in Kent from Blackstone. Capital & Regional bought Star City, which is situated close to the M6, as part of a £30million deal to take over the fund management business of MWB Group in 2002.
The entertainment centre in Nechells, which opened six years ago, was put on the market by the X-Leisure Fund back in May. The site includes the UK’s largest multiplex cinema, operated by Vue, and Europe’s largest casino, run by Stanley Casino. There is also a 24-lane bowling alley and several restaurants and bars. Other attractions include a 90ft snowslope, a 45ft aerial assault course and a 30 ft rock-climbing wall. Star City has hosted Cirque du Soleil and the Moscow State Circus in the past year, but has struggled to shake off crime issues. However, Star City chief executive PY Gerbeau – the man previously brought in to rescue London’s ill-fated Millennium Dome – yesterday put a positive slant on the deal with REIT. “Our team has worked hard to transform Star City into a regional leisure destination with a family focus with footfall now in excess of 4 million visitors a year. “We are selling Star City in a strong market and the capital, together with the management time, released by the sale will be profitably reinvested into a range of exciting new projects that will helps us maintain the out performance of the fund.”
X-Leisure is the UK’s largest leisure fund, with 17 major leisure destinations around the UK including Brighton Marina, O2 Centre London and West India Quay in London Dockland.
The X-Leisure Fund currently has around £880m of property assets and equity of £440m. Hermes Real Estate is one of the largest managers in the UK. Completion of the Star City deal is scheduled for January 18.
The Times, 16th December 2006
Capital & Regional, the property developer, said X-Leisure, its leisure property arm, had sold Star City in Birmingham to REIT Asset Management for £85.5m. It said Star City comprise more than 390,000 sq ft and houses the UK’s largest multiplex cinema, and Europe’s largest casino, as well as a 24-lane bowling alley and restaurants and bars.
Dow Jones Newswires, 15th December 2006Ê
London (Dow Jones) – Capital & Regional plc, a co-investing property asset manager, Friday announced that the X-Leisure Fund, an owner of leisure real estate in the UK has exchanged contracts unconditionally to sell Star City in Birmingham to REIT Asset Management for GBP85.5m. Completion is set for Jan 18 2007.
Star City comprises in excess of 390,000 sq ft and is home to the UK’s largest multiplex cinema, let to Vue, and Europe’s largest casino, let to Stanley Casino. There is also a 24-lane bowling alley and numerous restaurants and bars. PY Gerbeau, Chief Executive of X-Leisure, said, “Our team has worked hard to transform Star City into a regional leisure destination with a family focus with footfall now in excess of 4 million visitors a year. “We are selling Star City in a strong market and the capital, together with the management time, released by the sale will be profitably reinvested into a range of exciting new projects that will helps us maintain the out performance of the fund.”
Property Week, 15th December 2006Ê
The X-Leisure Fund, the UK’s largest owner of leisure property, has exchanged contracts unconditionally to sell the 390,000 sq ft (36,231 sq m) Star City scheme in Birmingham to REIT Asset Management for £85.5m, as revealed by Property Week (news, 22.09.06). Ashworth Sibal Welch advised X-Leisure; Franc Warwick advised REIT Asset Management.
Birmingham Express, 15th December 2006
Birmingham’s Star City leisure complex has been sold for £85.5 million to an international property group - which today promised to maintain the family focus of the centre.
Former owners X-Leisure, the UK’s largest entertainment and leisure landowner, have sold the site near to Spaghetti Junction to REIT Asset Management.
REIT owns £3.35 billion-worth of property worldwide. Kevin McGrath, a partner at REIT, said today his company was delighted to have secured Star City.
He said: “We are planning to enlarge and improve, developing Star City further as a family entertainment complex.”
The million leisure complex was originally built by Oldbury development tycoons Don and Roy Richardson in association with Wolverhampton-based Tarmac, and opened in 2000.
It covers 390,000 sq ft and boasts the 30-screen Vue multiplex cinema and one of Europe’s biggest casinos, run by Stanley Leisure, which opened in 2003 creating 200 jobs.
It also has a 24-lane bowling alley, a mini snow slope and climbing wall, and attracts around four million visitors a year.
In addition to a string of family restaurants, it has added a five-a-side complex - on the roof of one of the buildings - and is currently hosting an appearance by the Chinese State Circus.
Estates Gazette, 9th December 2006
REIT Asset Management has scrapped the 15-storey St Katharine Point residential tower it was proposing as part of its redevelopment of St Katharine Docks, E1. REIT, which is considering its options for the Point site, submitted revised proposals for the St Katharine Docks last week.
Planning, 8th December 2006
Plans for the £100 million revamp of St Katharine’s Docks in London have been amended. Last year’s original application was withdrawn after consultation with the local community and other stakeholders. A proposed 15-storey residential tower was scrapped after various objections while a performance space outside the Dickens Inn was dropped due to noise concerns. The design for Devon House, to be converted into homes, has been altered to better reflect the style of original dock buildings. Plans for shops and restaurants, improvements to the north-west and south-west gateways and extension of the Tradewinds restaurant remain in place. REIT Asset Management director Alister Thompson said: “The plans offer an opportunity to vastly improve the docks.”
Estates Gazette, 2nd December 2006
One of the first UK investors to venture into the German property market has sold a €350m portfolio to Australian property group Multiplex. Leo Noé’s REIT Asset Management, one of the most acquisitive UK investments firms on the Continent with more than €5bn in its global portfolio, has made its first significant sale in the last 10 years it has been investing in Germany. It sold the 230,000m2 portfolio for €356m to Multiplex Group – which has set up European property fund MEPF to buy the properties. Multiplex said it expected strong demand for the new fund, as the German market had positive indicators for future growth. REIT Partner Kevin McGrath said: “This is the first significant disposal that we have undertaken since we’ve been in Germany, but we are going to continue to buy there. We feel the UK market and most of Europe is fully priced – perhaps with the exception of Germany, but even Germany is getting there.” McGrath said the sale has released some profits to be reinvested in Germany and other countries it is targeting such as India and Sweden. The portfolio comprises 67 properties – mainly retail, with one-tenth each of offices and industrial and one-fifth nursing homes. It is 98.5% occupied.
Property Week, 1st December 2006
Multiplex, the Australian developer and contractor, is planning to set up a European property fund in partnership with REIT Asset Management. Capital raising for the Multiplex European Property Fund will take place in the second quarter of next year. Multiplex Property Trust, which was established three years ago at the time of Multiplex’s floatation in Sydney, will be a cornerstone investor in the fund. The fund will be seeded with a diversified portfolio of 67 assets throughout Germany that are being sold by REIT for €356m (£241m). The properties, which have a large weighting of retail, will be managed in Luxembourg with the ‘assistance’ of REIT, with which Multiplex has formed ‘a long-term alliance’. The fund itself will be managed from Sydney and local support will be provided by a recently established team in Europe. The off-market deal with REIT was led by Kevin Murphy, the European divisional director at Multiplex’s fund management division, Multiplex Capital. ‘We believe there will be strong investor demand for the fund. While this portfolio of assets is solely based in Germany, we will look to pursue investment opportunities to grow within the broader European market.’ The German portfolio is 98.5% let and has an average lease term of 10 years. Most of the properties are less than seven years old. Multiplex is also working on a UK fund targeted at institutional investors, into which it could inject some of its developments, including the Eden shopping centre in High Wycombe. Multiplex is the second Australian property company this month to announce the launch of a European fund. Last week Babcock & Brown, in partnership with General Property Trust, began raising €400m (£270m) in equity for a retail fund (finance, 24.11.06). Chaired by Chris Bartram, chief executive and chairman of Orchard Street Investment Management, the Babcock & Brown GPT European Retail Fund plans to list on Amsterdam’s Euronext.
Australian Financial Review, 29th November 2006
Multiplex Group has joined the ranks of Australian property investors in Europe and will set up a $600m trust specialising in the region as it ramps up its funds management operations. The group is also reviewing funds management opportunities in Dubai, where it is one of the top builders, as that market booms on the back of high oil prices. After crawling back some of its losses on the construction of London’s Wembley stadium in recent months, Multiplex is looking to boost income from managing third-party funds. Macquarie Equities said in a note to clients: “This division is likely to continue to grow in importance to the overall EBIT mix as the group retreats from UK external construction work and continues a sell down of property assets held on balance sheet into external funds that it controls and manages.” The group spun off a $640m office property fund in September and has flagged plans to expand its wholesale funds management operations. It will take cornerstone stakes in any funds it sets up. Its European trust – the Multiplex European Property Fund, will initially own 67 properties, mainly shopping centres in Germany valued at €356m ($595m). The portfolio is 98.5 per cent occupied with a weighted average lease tem of about 10 years. Multiplex Capital managing director Ian O’Toole said that there were positive growth indicators for Germany’s property market. The group will also look to grow the fund outside of Germany and western Europe, and some Scandinavian countries are on the radar. Multiplex bought the portfolio in an off-market transaction from the German arm of the private REIT Asset Management and it has formed an alliance with the group. REIT AM, which assembled the portfolio over the last several years, manages Germany property worth a total of €1.4bn and will provide property management services. Multiplex reviewed opportunities in Europe for about 18 months before striking an alliance with the private international fund manager. Its European fund will yield about 8.5 per cent, making it attractive to retail investors. Multiplex is yet to decide whether the vehicle will be listed on the ASX or offered through financial planners. In the meantime it is looking at leverage off its reputation as one of the major construction contractors in the United Arab Emirates. “We’ll look to establish a Dubai operating platform and we’re evaluating that at the moment,” Mr O’Toole said.
Property Week, 28th November 2006
The Multiplex European Property Fund (MEPF) will have initial assets of €356m (£241m) - a portfolio of 67 properties
The properties are situated throughout Germany and were purchased by Multiplex in an off-market deal from REIT Asset Management. The portfolio has 98.5% occupancy with good covenant tenants on long weighted leases of around 10 years. It said 84% of the properties are less than seven years old and are weighted towards the retail sector. Multiplex has formed a long-term alliance with REIT Asset Management which will manage the German properties through a Luxembourg-based vehicle.
Mutiplex Capital managing director Ian O’Toole said: ‘As Germany is a significant international property market with positive indicators for future growth, we believe there will be strong investor demand for the fund. While this portfolio of assets is solely based in Germany, we will look to pursue investment opportunities to fill the fund within the broader European market.’
The capital raising for the fund will take place in the second half of next year. The fund will be managed from Sydney and follows the listing of the $640m (£330.5m) Multiplex Acumen Prime Property Fund in September. MEPF’s external funds under management are more than $6bn (£3.1bn)
Estates Gazette, 17th November 2006
Kevin McGrath, former Labour parliamentary candidate and partner at REIT Asset Management, has expressed surprise at auctioneers who sold nearly £95m of pubs for collapsed pub property group Provence.
McGrath, who had a portfolio of Provence pubs under offer for overseas investors at the start of the year before the deal fell through, said the covenants on the pub investments were bad.
Estates Gazette research has revealed that 250 pubs worth just under £94m were sold through auction rooms between 2002 and 2006, many to small-time or novice investors.
One investor who completed on two properties for a total of more than £750,000 shortly before the firm went into receivership told EG: "We are stuck with a pub that does not look as if it has a tenant.
"This was my first attempt at investing in property and it will probably be my last."
John Barnett, commercial auctioneer at Barnett Ross, said: "The unwritten law of business is that the higher the return you receive, the higher the risk element involved. We sold Provence. It was not using the auction market to conceal anything."
Carlisle News & Star, 13th November 2006
Investment group buys 12 hotels, By Matthew Legg
Carlisle’s Swallow Hilltop Hotel has been saved after a global investment group stepped in to buy it.
REIT Asset Management has acquired the business and 12 other Swallow Hotels in England and Scotland with a combined value of about £70m.
REIT partner Kevin McGrath pledged to invest heavily to safeguard the 977 jobs and improve all of the sites. “We have great confidence in the hotels and that is why we purchased then”, he said. “We don’t‚ think they have been managed as well as they could have been, but we have now taken control of the businesses and have appointed a specialised, enthusiastic hotel management company to improve the hotels”.
London-based REIT has appointed Scottish firm Crerar to manage the venues.
The three-star Hilltop has been under threat when parent company the London & Edinburgh Swallow Group collapsed in September after heavy losses. Over 7,000 jobs were put at risk and its 671 pubs and hotels nationwide, including the Ennerdale Country House Hotel at Cleator in West Cumbria, Gretna Hall Hotel and Kirkconnel Hall at Ecclefechan, Dumfriesshire.
Paddy Crerar, chief executive of Crerar Hotels, said of his company’s acquisition: “These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general manager, and most importantly they are profitable with a clear opportunity to make substantial improvement.
“If left unchecked for much longer these assets would have been placed in a perilous position. We recognise there is a significant amount of work ahead both in terms of strategy and culture, which is achievable provided we act swiftly. Our first priority is the people in the business. They must be given the opportunity to get on with what they are clearly capable of delivering”.
The Times, 10th November 2006
Leo Noé’s REIT property group has appointed Crerar Hotels, the privately owned operator, to take over the running of the 13 Swallow Hotels that it brought from Whitbread three years ago, after the recent collapse of London & Edinburgh Swallow Group.
News & Star - Carlisle, 11 November 2006
JOBS at a Carlisle hotel are among 977 across the country saved following the collapse of a major chain.
The three-star Hilltop Hotel is one of 13 to be sold to REIT Asset Management after London & Edinburgh Inns, parent company of the Swallow Hotels group, went into administration.
Roy Bailey, one of three joint administrators for Ernst & Young, said: “We are delighted to have been successful in selling a further 13 properties and securing jobs of employees at these sites.”
The Hilltop Hotel has been saved along with others in the north of England, such as the George Hotel at Chollerford and the Imperial Hotel in Newcastle.
Pubs and hotels across north and west Cumbria, and over the border into Dumfries & Galloway, were plunged into uncertainty in September when the organisation went into the hands of administrators.
They included the White Quey at Stoneraise, Durdar, on the outskirts of Carlisle, which is reopening.
There, former licensee Erica Hunt has applied to Carlisle City Council for a new premises licence under a new company name – the New White Quey Limited.
The pub was closed with immediate effect last month, threatening 11 jobs, because the administrators were unable to secure a sale for it.
In west Cumbria, a buyer has been found for the Ennerdale Country House Hotel at Cleator – a popular wedding venue.
The London & Edinburgh group went into administration after making “heavy losses”.
More than 7,300 jobs across the country were at risk until buyers were found for 671 pubs and hotels.
Administrators have been working on properties in groups.
The Journal, Northern Business Daily, 10 November 2006
A Scottish hotelier has rescued some of the North-East's best known hotels from the collapse of London & Edinburgh Swallow Group (LESG).
Seven hotels in the North-East and Cumbria, including the Swallow Imperial Hotel in Jesmond, the George at Chollerford and the Three Tuns in Durham are among the 13 businesses taken over by Paddy Crerar and his Edinburgh-based Crerar Hotels company.
The hotelier has struck a deal with London-based property giant REIT Asset Management to operate the former LESG hotels.
REIT owned the hotels during LESG's tenure, but has now arranged with LESG administrators Ernst & Young for Crerar to become the new operator.
Yesterday, Mr Crerar said: "Until the past few months, the Swallow name has had a very good reputation for high quality, mid-market hotels. They are run by competent general managers who have been living through a demoralising period in the last 12 months. Our priority is to give them their confidence back, and lift the standards back up a couple of notches. I don't see this as short term - I hope it will be for a very long time."
Mr Crerar said his company and REIT will discuss a strategy for investment and development of the estate. He says that while his existing company operates just seven hotels, it has run as many as 24, so he is well used to a larger operation, and a sister company, easy-breaks.com, markets a collection of 225 hotels right across the UK.
The other three North-East hotels being taken over by Crerar are the Swallow in Gateshead, the Eden Arms in Rushyford, County Durham and the Swallow in Stockton, as well as the Hilltop Hotel in Carlisle.
Mr Crerar added: "These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general managers, and most importantly they are profitable with clear opportunities to make substantial improvements"
Nola Newbold, general manager of The George at Chollerford, said: "As soon as Crerar Hotels took over, they informed the staff - very professionally, and straight away.
"It seems to be a very people oriented company which is great for the staff - and even better for the guests."
The other six UK hotels being taken over by Mr Crerar are in Dundee, Glasgow, Harrogate, Ipswich, Harlow in Essex, and Preston in Lancashire. The future of the other two LESG hotels in the North-East - the Springfield in Gateshead and the Derwent Manor in Allensford, Northumberland - has not yet been decided.
Ammo Daily, 9 November 2006
Edinburgh-based Crerar Hotels is taking on the management and operation of 13 hotels previously owned by the collapsed Swallow Hotels group. The hotels have a combined total of close to 1,500 bedrooms in prime locations, and the deal is estimated to be worth around £70m.
Scotland Courier, 9 November 2006
THE FUTURE of the Swallow Hotel in Dundee was secured yesterday when the owner of the property agreed to place its management in the hands of Edinburgh chain Crerar Hotels.
It is part of a deal taking in 13 hotels previously operated by London and Edinburgh Swallow Group (LESG), which collapsed last month with debts estimated at about £40 million.
Crerar chief executive Paddy Crerar said there was a “clear opportunity to make substantial improvement” now that the Dundee hotel and its stable mates were no longer in a “perilous position.”
The Swallow Dundee, which is thought to have about 70 staff, incorporates a 19th century mansion house, although it has been considerably extended and now has 103 bedrooms, a leisure club and conference facilities.
Although LESG had run the popular hotel, off the A90 opposite Invergowrie, it did not own it. The company had expanded rapidly through a series of sale-and-leaseback deals—buying hotels and pubs, selling them on to investment companies and then paying rent to run them.
When its finances gave out, administrators Ernst & Young were left with the task of finding buyers for hundreds of businesses, including several throughout Tayside and Fife. Most have been snapped up, but some have been forced to close.
The Swallow Dundee and the other 12 hotels involved in the Crerar deal are owned by REIT Asset Management, which has a global property portfolio worth more than £3 billion.
A spokesman for REIT said, “The hotels involved have always been extremely profitable and REIT sees this as a sensible opportunity to regain, through this partnership, control of their strategic direction, which includes investment and potential expansion.
“The hotels have a combined total of close to 1500 bedrooms, they are in prime locations and were regarded as the best of the Swallow portfolio.”
Most of the hotels are in England, but there is also one in Glasgow.
Mr Crerar added, “We have been working hard with the partners at REIT, and their consultants at CB Richard Ellis Hotels, to find the right solution for these assets.
“It was clear from the outset that unlike a great many of the former Swallow landlords, circumstances were different—there was never a need to consider panic driven action.
“These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general managers, and most importantly they are profitable with a clear opportunity to make substantial improvement.”
* There still seems to be no developments with the Panmure Hotel in Monifieth, another former LESG property. It has been closed since the collapse of the parent group.
The Herald, 9 November 2006
Scottish hotelier Paddy Crerar is to run 13 hotels formerly leased to the collapsed Swallow Group.
The former owner of the 24-strong North British provincial chain, most of which was sold to Swallow 16 months ago, will manage and operate the properties on behalf of owner REIT Asset Management.
Mainly located in northern England, the hotels, together comprising about 1500 bedrooms, also include the Dundee Hotel, Dundee and Glasgow Hotel on Paisley Road West in Glasgow.
Crerar's interest in the Swallow portfolio was revealed by The Herald in September. He remains in talks with administrators Ernst & Young about taking over other Swallow assets.
In a statement, Crerar Hotels said: "REIT dismissed the option of re-letting the assets, in favour of a partnership agreement with Crerar Hotels.
"The hotels involved have always been extremely profitable and REIT sees this as a sensible opportunity to regain, through this partnership, control of their strategic direction, which includes investment and potential expansion."
Paddy Crerar added: "It was clear from the outset that, unlike a great many of the former Swallow landlords, circumstances were different - there was never a need to consider panic-driven action.
"These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general managers, and most importantly they are profitable with a clear opportunity to make substantial improvement."
He added: "Swallow had limited management controls and little or no operating or marketing strategy. If left unchecked for much longer, these assets would have beenplaced in a perilous position.
"Both REIT and Crerar Hotels recognise there is a significant amount of work ahead both in terms of strategy and culture, which is achievable provided we act swiftly."
The rebranded Crerar Hotels also owns seven properties, including the Isle of Mull at Craignure, the Ben Wyvis at Strathpeffer, the Oban Bay, and the Loch Fyne at Inveraray.
thepublican.com, 9 November 2006
Administrators sell 13 sites to freehold owners
Administrators to London & Edinburgh Swallow group (L&ES) have sold 13 of the collapsed group’s hotels to REIT Asset Management for an undisclosed sum.
The move saves 977 jobs, according to Ernst & Young, which has controlled what remains of L&ES after it went into administration in September.
Joint administrator Roy Bailey said: “We are delighted to have been successful in selling a further thirteen properties and securing the jobs of employees at these sites.”
According to Ernst & Young REIT Asset Management already owns the freeholds of the properties.
A spokeswoman for the administrators said the group was employing management company Crerar to oversee the day-to-day running of the hotels.
business.scotsman.com, 9 November 2006
EDINBURGH'S Crerar Hotels announced yesterday it is to take over management and operation of 13 hotels previously run by the collapsed Swallow Hotels group.
Crerar has signed the deal with the sites' owner London-based REIT Asset Management, the specialist investment, finance and asset management partnership.
REIT dismissed the option of re-letting the assets, said Paddy Crerar, chief executive of the hotels firm.
The sites include the Glasgow Hotel on the city's Paisley Road West, and Dundee Hotel in Invergowrie and "have always been extremely profitable".
The hotels have a combined total of close to 1,500 bedrooms, are in prime locations and were regarded as some of the best of the Swallow portfolio, he said. It is believed the combined total worth of the sites is some £70m.
Swallow collapsed in September after massive losses. It had leased 671 sites across Britain, and employed around 7,300 staff. The portfolio includes around 70 hotels and 120 tenanted and managed pubs across Scotland
Crerar called yesterday's management deal "the largest and most significant yet made" by his firm, which owns sevens sites, including Loch Fyne Hotel & Spa in Inveraray and Scotland's Hotel in Pitlochry. He added: "These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general managers, and most importantly they are profitable.
"Swallow had limited management controls and little or no operating or marketing strategy. If left unchecked for much longer these assets would have been placed in a perilous position."
• GELink, which took over the Beancross restaurant and café bar in Falkirk from Swallow when it collapsed in September, revealed yesterday it is in negotiations for another six of the former company's sites.
Caterer and Hotelkeeper, 8 November 2006
Scottish group, Crerar Hotels has signed a deal to manage and operate 13 properties formerly leased by London and Edinburgh Swallow Group.
Property owner REIT Asset Management agreed the partnership deal with Crerar after dismissing the option of re-letting the properties.
Paddy Crerar, chief executive of Crerar Hotels, said: “These hotels are in prime locations, they have been well maintained, they have competent hotel teams and general managers, and most importantly they are profitable with a clear opportunity to make substantial improvement."
He added the company would now focus on sales generation, financial control and allowing the staff to deliver the product.
The hotels are the Dundee hotel in Invergowrie; the Glasgow hotel in Paisley Road West; the Hilltop hotel in Carlisle; the George hotel in Chollerford, Northumberland; the Three Tuns hotel in Durham City, the St George hotel in Harrogate, the Belstead Brook hotel in Ipswich; the Imperial hotel in Newcastle upon Tyne; the Gateshead hotel in Gateshead; the Churchgate hotel in Essex; Preston hotel in Samlesbury; the Eden Arms hotel in Rushyford, County Durham and the Stockton hotel in Stockton-on-Tees, Cleveland.
Property agent CB Richard Ellis secured the deal.
theretailbulletin.com, 2 November 2006
Leading private property investors, Boultbee, has sold 30 supermarkets in key locations across Sweden to REIT Asset Management.
The supermarkets were sold as a package deal to REIT Asset Management for a total of £90 million (1.2 billion SEK) representing a yield of 5.75%. The vast majority of the units are let as Ica Supermarkets. Michael Elliot acted for Boultbee and is their sole agent.
Steve Boultbee Brooks, Managing Director of Boultbee, commented: “Whilst the sale of these units will temporarily decrease our Nordic investment portfolio, we will continue to search for new opportunities in the Nordics in the future. The Nordics are an extremely accessible market at the moment, and we intend to continue investing for as long as the market remains both viable and profitable.”
Acquisitions Finance Magazine, 2 November 2006
REIT Asset Management, the specialist investment, finance and asset management partnership, has recently completed two acquisitions.
Reit has acquired a £175m portfolio of 22 properties, including three in Scotland, from Teesland. Shares and underlying assets were owned by Guernsey Property Unit Trusts, Jersey Property Unit Trusts and a selection of UK and offshore corporate structures. REIT also acquired the £45m Iron Mountain factory in Kent from Blackstone.
REIT was advised on the deals by Olswang. The deals were Olswang’s first two major transactions for REIT Asset Management and its clients since it acquired Kanter Jules in May this year.
Simon Kanter, real estate partner at Olswang, said: “Kanter Jules was a key adviser to REIT for many years and we are pleased to be building on our long standing relationship by advising on these recent transactions with our new colleagues at Olswang. Since joining Olswang we have been able to combine both firms' extensive experience in the real estate sector and continue to deliver the high standard of advice our clients expect.”
Jennifer Johnson of Maclay Murray & Spens advised on the Scottish properties.
Clients of Teesland Asset Management Limited were advised by SJ Berwin, Trowers & Hamlins, Shepperd & Wedderburn, Jones Day and Edwards Duthie.
On the acquisition from Blackstone Simon was assisted by real estate solicitors Jacqueline Roodyn, Nigel Fisch and Philip Rapport; corporate solicitor Paul Meads and banking solicitor Jessica Hannan.
Blackstone Group International Limited was advised by DLA Piper Rudnick Gray Cary.
Property Week, 29 September 2006
Click here to download a pdf of the article
Property Week, 22 September 2006
Reit Asset Management is set to buy X-Leisure’s Star City scheme in Birmingham for more than £90m. The 390,000 sq ft (36,312 sq m) scheme is let to Vue Cinemas and Stanley Casinos and has undergone extensive asset management in the last two years, which has transformed into a family leisure scheme with a 90ft snowslope, a 45ft aerial assault course and a 30 ft rock-climbing wall. Franc Warwick advised REIT; Ashworth Sibal Welch advised X-Leisure.
The Times, 14 September 2006
When the property entrepreneur Leo Noé who runs Reit Asset Management trademarked the name in 1998, real estate investment trusts were still only at the discussion stage. Reits, tax-efficient property investment vehicles, are now three months away from launch, and Noé has already threatened action against a couple of trusts that planned to have the R word in their names.
In the end, he will probably have to let others through, for a fee. Still, it could turn out to be a useful little earner.
Estates Gazette, 26 August 2006
Reit Asset Management has extended its €2.5bn drive into Europe by breaking into the increasingly popular Nordic market.
The company, which buys property on behalf of investors including Leo Noé, has bought an 87,000 sq m Swedish retail portfolio for SEK1.2 bn (£88.6m), reflecting a 5.7% yield. The majority of the 31 shop high-street portfolio is let to local food retailer ICA.
The properties were bought from Boutlbee Land, which has built up a €1bn portfolio in Scandinavia - including several joint venture acquisitions with Lehman Brothers - since making its debut in the region last June.
REIT has spent €1.5bn in Europe over the past 14 months, as part of its diversification strategy led by partner Kevin McGrath. More than half its €5 bn assets under management are now outside the UK.
“Sweden is already a tightening market, but it is a very transparent and easy place to do business in,” said Reit’s head of Europe Chris Horler.
Horler said Sweden was attractive because it was much like the UK in terms of doing property deals.
“The Land Registry is open to everybody, lease structures are straightforward and everybody speaks English,” he said. “The only downside is that it’s a small market with just 5m people.”
Michael Martin, who was appointed in March to run REIT’s Nordic operations, added: “We are aiming to spend up to SEK3bn on property in the area, with Sweden and Finland as the main focus. Norway is still quite closed, and while we have been looking at Estonia and Latvia, we have no firm commitment there.”
Martin is also responsible for REIT’s drive into the Benelux countries, where it has just bought an €11.5m shopping gallery in Mamur - 50km outside Brussels.
Michael Elliot advised Boultbee. REIT was unrepresented.
Estates Gazette, 12 August 2006
Vintners Place on Upper Thames Street, EC4, has seen lettings of over 100,000 sq ft. The landmark 270,000 sq ft building which was bought by Reit Asset Management and GMAC from Blackstone for £122m two years ago, will be occupied by Jefferies International. The New York based investment bank has taken 50,000 sq ft at £40 per sq ft on the fifth floor and agreed an option on 23,000 sq ft at £42.50 per sq ft on the sixth floor until 2019. Japanese bank Sumitomo had the fifth floor until 2007, but has agreed a move to the 40,000 sq ft fourth, also until 2019. Ingleby Trice Kennard advised Jefferies. Kinney Green advised Sumitomo. BH2 and Knight Frank are the letting agents.
Property Week, 28 July 2006
Victoria Steamship has taken 3,969 sq ft (369 sq m) of office space on a 10-year lease from Reit Asset Management at a rent of £30 / sq ft (£322.92 / sq m). Agents: Ingleby Trice Kennard and Knight Frank.
Globes Publisher, 23 July 2006
Reit Asset Management (Israel) Ltd, CEO Amir Biram and shareholders have expressed their confidence in properties in northern Israel, despite the war and commercial paralysis in the area. The company bought the Nahariya Mall from private parties on Friday for $20 million. The mall was on the verge of going into receivership because of a NIS 162 million debt.
The Nahariya Mall has 7,500 sq m of income producing space on two floors with 60 shops, plus a 3,000 sq m third floor in skeleton condition, slated for office space. Rent totals NIS 450,000 a month at an average of $27 per sq m per month.
REIT Israel has bought 11 malls in Israel since April 2005, including the Nahariya Mall. The company has improved financing costs by securitizing income-producing projects and recycling mortgages, setting new standards in Israel. Last week, the company refinanced its mortgage from Bank Leumi on Park Azorim in Petah Tikva, and signed a $100 million five-year mortgage with German bank Eurohypo AG. REIT Israel also raised NIS 330 million form the public by securitizing the Ovnat Mall in Petah Tikva. The 80,000 sq m Ovnat Mall includes 25,000 sq m of commercial space.
Estates Gazette, 22 July 2006
Leo Noé’s Reit Asset Management has bought a 3m sq ft industrial portfolio from Teesland iOG. REIT paid £173m, a 6.75% yield, for the 21 buildings. The largest site is £40m Brucefield Industrial Park in Livingston, Scotland. The portfolio includes £15-m worth of offices. Franc Warwick acted for REIT; Joiner Cummings advised Teesland.
Estates Gazette, 20 July 2006
Leo Noé’s Reit Asset Management has bought a 3m sq ft industrial portfolio from Teesland iOG. REIT has paid £173m for 21 surplus buildings from Teesland’s UK Industrial and office portfolio. Teesland has carried out the sale as part of a “clearing up exercise”. The properties have been collected over the past few years as part of other portfolio deals, but have not fitted into any Teesland’s various funds under management. The largest site is the Brucefield Industrial Park in Livingston, Scotland, which is valued at £40m. Three other industrial estates in Aberdeen, Barnsley and Bristol are worth a further £40m. Three other industrial estates in Aberdeen, Barnsley and Bristol are worth a further £40m, while there are also £15m-worth of smaller offices. Franc Warwick advised REIT; Joiner Cummings advised Teesland.
Yediot Aharonot, 25 May 2006
The London mall magnate Leo Noé continues his shopping of malls in Israel: he acquired yesterday the Merom Center mall located in Merom Naveh, Ramat Gan, for 80 million shekel.
The mall yields some 7 million shekel in annual rental fees, so that the new deal reflects a yield of 8.75%. The mall is located in the new neighbourhood, on the border of Bnei Brak, at the end of Jerusalem Boulevard. REIT Israel (formerly Azorim Properties) intends to maintain the suburban nature of the mall. The mall, which was built by Uri Dori, was acquired a few years ago by the Nolton fund for 64 million shekel.
This is the third mall that is being bought this year by Noé. Prior to the Ramat Gan mall, he acquired two malls this year; 50% of Kenyon Hadera valued at 34.5 million US dollars and Kenyon Maaleh Adumim for 80 million shekel. In all the company now owns 8 shoppings. According to Amir Biram, CEO of REIT Israel, the company intends to reach its target of 15 shoppings across Israel still this year.
CPN, 24 May 2006
The open-ended Grundbesitz-Invest Fund of DB Real Estate Investment GmbH recently sold 10 German retail properties and a leisure centre for €300 million (US $382.9 million) to REIT Asset Management GmbH. Included in the retail portfolio were eight high-street properties in medium-size cities in areas of western Germany ranging from north to south, an 8,000-square-meter shopping centre in the south and a food hypermarket near Frankfurt.
“The leisure property in Flensburg, a small town in the north of Germany on the Danish border, has a cinema, casino and hotel, with retail underground,” Jorg Krechy, associate director of retail for the German capital markets for Jones Lang LaSalle, told CPN. Jones Lang LaSalle advised DB Real Estate and structured the portfolio for sale.
“The high-street assets are prime retail properties, with retail in the basement and on the first floor and offices on top,” Krechy said. “The net initial yield on the properties was from 5.15 to 5.5 percent, which reflects the current market situation.”
He noted that some German open-ended property funds will continue to release more properties onto the market this year as they experience capital outflows. Though this was not necessarily the case with DB Real Estate’s sale. “German funds are also taking advantage of the attractive prices resulting from the strong demand of international capital for properties. We’ll clearly see this trend of international investment and yield compression in Germany last longer than this year, perhaps lasting three years.”
Yield compression already has been significant in some German sectors, Krechy said. For example, yields have compressed by 200 basis points in regional warehouses from year-end 2004 through the end of 2005.
Property Finance Europe, 22 May 2006
Reit Asset Management Deutschland, the Munich subsidiary of Britain’s Reit Asset Management, is to acquire properties for a German retailing portfolio financed by a €200m loan from Hypo Real Estate Bank.
RAM Managing Director, Iris Schöberl said in a release that half of the credit line has already been used to buy 22 municipal properties in the cities of Aachen, Dortmund, Düsseldorf, Erfurt, Hagen, Lüdenscheid, Osnabrück, Paderborn, Schwäbisch, Gmünd und Zwickau. The rent of the credit line will be spent on retailing properties. Once these are made, the German unit will hold assets managed worth more than €1.2 bn.
Globes, 17 May 2006
Reit Asset Management (Israel) Limited, owned by British billionaire Leo Noé, has bought 50% of the Hadera Mall from Roichman Brothers (Shomron) Infrastructures 1993 Ltd. for $34.5 million. The three-storey, 14,000 sq m is located on Rothschild St. in downtown Hadera. The mall has 4,000 sq m in additional building rights.
The deal reflects a return on investment of only 7.5%. It seems that burgeoning demand for Israeli income-producing properties in the past year is beginning to affect the return on investment on commercial properties in outlying areas.
Roichman Brothers decided to sell half of the Hadera Mall because of a dispute between two cousins, Avi and Hanani Roichman. REIT Israel bid against Avi Roichman and Clal Insurance Enterprises Holdings Ltd which withdrew from the deal because of its low return.
REIT Israel plans to renovate the mall and streamline its management.
REIT Israel is negotiating with a German bank to refinance loans for its Azorim Park, near Kfar Malal on Road number 4 (Geha), outside of Tel Aviv. This is a precedent making move in Israel, and will probably set a trend that will grow rapidly in the coming years.
REIT Israel currently owns the Avnet Mall in Petah Tikva, Kanioter in Ness Ziona, the Maaleh Adumim Mall, and 50% each of the Grand Kanion mall in Haifa, the Park and Shop Mall in Rishon LeZion and the Rehovot Mall.
Estates Gazette, 6 May 2006
Leo Noé’s Reit Asset Management has made its first foray into India, six months after setting up a Mumbai office.
REIT, which advised the Noé family trust, has teamed up with a local specialist to develop 120 acres of land in the Western state of Maharashtra.
The project, near India’s historic city of Pune, will have an end value of $150m (£81.7m) and include at least 2,000 homes. There will also be significant commercial space, which will follow the housing.
David Cohen, chairman of REIT Property Management India, said: “The site has a lot of potential. India has massive need for housing, hotels and good-quality shopping malls, as the population’s disposable income is growing.”
REIT set up its India office in October to build up a $1bn (£540m) fund. It is set to complete several more deals in the next few months, including an opportunity to expand the Pune development.
Partner Kevin McGrath said: “We wanted to get into India early as the government is starting to ease up on restrictions on investments. In three to five years’ time, India will have a transparent and unrestricted market. When that happens, yields will tumble.”
Pune, 160km south-east of Mumbai, is India’s seventh biggest city with a population of 4m, and has a burgeoning software industry.
REIT also continued to bulk up its European portfolio this week, taking German assets to €1.3 bn with three retail acquisitions totalling just over €610m.
Estates Gazette, 6 May 2006
Reit Asset Management GmbH, run by Iris Schoeberl, this week completed the purchase of the Terry portfolio from DB Real Estate for €295m – a 5.3% yield. The package sold through Jones Lang LaSalle, includes 10 retail properties around Germany. Schoeberl said: “We believe we can add another €1m to the rent following lettings to the voids. But the economy is also at the stage when, if there is a lease expiry, rents may actually increase.”
REIT also paid €52m – a 6.75% yield – for 21 inner-city shops from the German Catholic Church. And it invested in Apollo Real Estate’s recent acquisition of 12 Kaufhof department stores for €263.5m.
Estates Gazette, 1 April 2006
A leading UK fund is looking at the Indian property market as it searches for new avenues of investment, Standard Life Investments has carried out a “fact-finding mission” in the subcontinent to investigate opportunities for new funds. Investment director Mike Hannigan said: “There has been a lot of hype about India. But you have t | |
