Sunday, 20 May 2012

Blog: Are Euro real estate debt funds a short on Europe?

Amid the surge of Euro real estate debt funds, one thing is clear: many firms, particularly American, see them as a 'short' on Europe, writes PIE Managing Editor Allan Saunderson. Either underlying assets perform and provide steady returns or - due to Greece, Spain, Francois Hollande, whatever - Europe collapses and they are taken over cheaply. Property debt funds have landed on our shores to stay.

European property headed for price deflation - JP Morgan

The European property market has passed a key point, and five elements will come into play to produce asset price deflation, says investment bank JP Morgan. Because re-pricing will take a while, the overriding need is to stay focused on quality assets and strong balance sheets, especially avoiding the euro area.

Unicredit's German iii-investments eyes €400m debt fund

Munich's iii-investments, property fund manager of Unicredit's HypoVereinsbank, is launching a real estate debt fund targeting €300m to €400m in assets, says MD Reinhard Mattern. The vehicle is intended to be the first in a series, and mainly responds to client needs for higher yields than on German government bonds.

French President Hollande to act fast on housing reforms

New French President François Hollande plans to waste no time to reform the economy, including an overhaul of the housing market via several measures likely to be introduced this summer. An increase in housebuilding is a priority for the new administration, with a focus on increasing supply of affordable homes.

US gov-linked L88 enters Europe with $94m Prague Orco buy

The newly-restructured Orco Property has sold the Radio Free Europe/Hagibor Office Building in Prague to a unit of US firm L88 for about $94m. It marks the entry into Europe of the Newport Beach, CA.-based L88, which specialises in strategic assets leased by the US Department of State.

Bankia Spanish housing should go to rental - association

Spain’s association for the promotion of access to housing, Arrenta, has called on the government to put the stricken Bankia’s huge residential portfolio onto the rental market. The call came as Madrid confirmed that BlackRock and Oliver Wyman have been appointed to value banking system real estate.

BNPP Italia's €120m fund disposal should meet good demand - CEO

The Italian unit of BNP Paribas REIM is selling nine state-leased assets worth around €120m from its Patrimonio Uno fund and has exclusively mandated realtor CBRE. CEO Ivano Ilardo told PIE the sale follows the business plan of disposals, and the portfolio should meet good market demand despite a difficult market.

DTZ lowers 2012 Euro investment forecast to €100bn

Commercial real estate investment in Europe reached €23.4bn in first quarter, down 30% on 4Q11 but around the level of 1Q11, says realtor DTZ. Due to the uncertainty dominating European economies and property DTZ downgraded its forecast for the full year to €100bn which would be an 11% decline on 2011.

Russia's Donstroy sees housing sales soar 57%

Russian housing developer Donstroy, controlled by the nation's giant VTB bank, said its apartment sales rose 56.8% in the first four months of the year, with demand accelerating thanks to the positive Russian market situation and marketing of new projects.

Barcelona surpasses Madrid in 1Q office take-up – CBRE

For the third consecutive quarter, Barcelona’s office take-up surpassed that of Madrid in the first three months of 2012, rising 11,68% against 1Q1, as the Spanish capital suffered its worst quarter in history in absorption, says CBRE.

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