Realcast: UK rates up, Nike UK shed search, Greenman grows, Landsec sells, debt gap wider
In the spotlight this week:
The UK saw more bad news in terms of economic forecasts and a rise in interest rates to the highest level for 14 years.
Meanwhile, sportswear retailer Nike is looking for a new 1 million sq ft distribution centre in the UK’s Midlands, CA Immo are looking to realise €100 million for the Neo office building in Munich, and in the UK’s north west pop-ups specialist Boxpark has secured planning permission for a new scheme in Liverpool, their first branded site outside London.
Last week stationery and greeting cards retailer Paperchase went into administration putting 106 stores at risk. However, the Tesco supermarket chain bought the brand and intellectual property – but not the shops.
Retailer JD sport plans to open 1,750 stores globally over the next five years and plans to invest £500 to £600 million on its expansion – the US is to be a focus where it could increase from the current 120 stores to about 700. France Germany and Italy are also on the list.
In the hospitality sector, Barceló Hotel Group Royal as refurbished a former railway station in the north of Spain for about €15.3 million.
In the grocery retail sector, Dublin-headquartered Greenman Group has expanded into Poland with the acquisition of asset manager and developer Newbridge Poland and will have about €150 million in assets under management there as a result.
German group Kgal has launched a new impact fund which has acquired its first asset, a new build sustainable apartment block in Malaga.
Ikea franchise Ingka Group is to invest in energy infrastructure in Australia, where it is taking a stake in the country’s largest windfarm.
Large property deals are also and Hong Kong headquartered Chinachem Group is to pay £350 million for Landsecs’ 25 700 sq m One New Street Square in the City of London.
Spanish REIT Colonial has also sold three Office Buildings in the financial district of Madrid to a privately owned company for about €300 million.
Meanwhile, Europe’s real estate debt funding gap grew to €51 billion in the final quarter of 2022 according to research from AEW due to capital value decreases which caused higher loan-to-value ratios and higher interest rates which have pushed down interest coverage ratios.
Among a recent spate of debt debt finance deals, a Tristan Capital Partners property debt fund has provided self-storage investor 1Box Group with about €58 million to refinance a portfolio of 18 self storage assets in the Netherlands.
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