Commercial real estate investment volume across Europe reached an estimated €45 billion ($49 billion) during first quarter 2015, according to research from DTZ. This is a 22 percent increase compared with first quarter 2014, which saw European transaction activity of €36.8 billion ($40 billion).
Nigel Almond, head of capital markets research at DTZ, said in a statement:
“The positive momentum in the market has continued into 2015. Investment continues to be driven by strong activity in the core markets of the United Kingdom, Germany and France. The positive momentum has also been maintained in the periphery, with volumes up in both Italy and Spain, [and] with positive developments in the Czech Republic and Baltic States.”
All property sectors have seen large acquisitions. In Germany, a two-property Berlin apartment portfolio totaling 5,750 units was acquired by ADo Properties, which paid €375 million ($419 million) to Deutsche Wohnen AG.
In the Baltic States, the largest single-asset transaction ever in Finland occurred. A Finnish consortium comprising Ilmarinen Mutual Pension Insurance Co., LocalTapiola and OP-Pohjola Group has purchased a 60 percent interest in a retail development in Finland from SRV. The total value of the shopping center and parking facility investment is €480 million ($524 million).
In Italy, the Abu Dhabi Investment Authority, Hines and GIC purchased the Unicredit-Piazza Cordusio office for €320 million ($358.3 million) from IDeA FIMIT sgr.
And in Spain, another growing transaction market, the Orion Capital sold the Centro Comercial Plenilunio to Klépierre for €375 million ($419.8 million).
Magali Marton, head of EMEA research at DTZ, added:
“We remain confident of the outlook for Europe’s markets during 2015. The weight of money chasing commercial real estate remains strong and supported by good relative pricing and a growing number of opportunities coming to the market. Based on first quarter performance, we expect volumes to grow by 20 percent more than the year to reach €225 billion ($tk billion) in 2015.”
Other recent IREN headlines of high-priced European transactions include:
- Carlyle sells London South Bank project for £308m
- British Land sells £733m portfolio
- Chinese insurance company buys London office for £327m
- BNP Paribas Real Estate sells office development for €477m
- Spanish firm buys London office for £265m
- Altarea Cogedim buys French mall from Orion for €400m
- Two U.K. student housing portfolios sell for $2b
- Two European malls sell for $1.3b
- Ivanhoé Cambridge acquires London office building
- Hispania forms hotel REIT, pays €322 for portfolio
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Andrea Waitrovich is editor of IREN and web content editor of Institutional Real Estate, Inc.
