DEMONSTRATING RESILIENCE IN THE EUROPEAN REAL ESTATE MARKET
As the world is going through an unprecedented crisis, it is important to recognise the resilience of the real estate market and its contribution to the economy. During these challenging times BNP Paribas Real Estate, as a leading international real estate provider, has continued to support its clients and despite of the slowing market, the business has successfully secured major deals all over Europe.
BNP Paribas REIM secured (closed and signed) deals across Europe for a value of over 590 M€. 10 substantial deals came to fruition in Germany (Munich and Bremen), France (Paris and its region) and Italy in the office, logistics, retail and outdoor accommodation sectors (campsites).
At the group level, BNP Paribas Real Estate secured deals including (which is not the full list):
FRANCE:
- BNP Paribas REIM France, on behalf of its managed fund Accimmo Pierre, has acquired the Influence 2.0 office building delivered by Nexity in late 2019 and developing 25,000 sq m. This iconic building is located within Les Docks de Saint-Ouen, at the foot of line 13 and soon also line 14 of the Paris subway, and hosts the headquarters of the Conseil Régional d’Île-de-France (the regional authority for the Greater Paris area), already renting the adjacent building Influence 1.0 since 2018.
- Office letting deal: VYW rented a 9 640 sq m office building in Paris 13th
- Logistics letting deal: Dicson rented a 6 400 sq m warehouse in Lille region
- Office investment deal: COFINANCE bought for 15 M€ from ALTAE (developer) an office scheme named Evolution developing 5 840 sq m in Bruges, Bordeaux region
UNITED KINGDOM:
- BNP Paribas Real Estate’s UK investment team sold on behalf of its client Bridges Fund Management and Hobart Partners office building Quick and Tower for £64M. The price equates to around £475 per sq ft net, which is the highest paid for a consented scheme since the 1990’s. Located in London’s creative district Shoreditch, the building comprises a 54,000 sq ft office space, with planning consent for a 130,000 sq ft development.
- On a regional level the UK business has been involved in the UK’s biggest funding deal during the pandemic so far, with Legal & General committing to fund the first phase of Sheffield’s West Bar Square development, with detailed plans for the mixed-use scheme to be submitted in the summer. BNP Paribas Real Estate UK acted for the developer Urbo (West Bar) Ltd, when exchanging contracts with Legal & General.
The opening phase is a £150 million investment, comprising; 200,000 sq ft of office space, 350 BTR homes, a multi-storey car park and public realm, to be delivered in partnership by the developer, institution and City Council. West Bar Square will play a key role in supporting economic recovery in the region, as well as introducing much needed high-quality modern office space that is currently lacking in Sheffield’s property market. The L&G deal is thought to be the largest-ever private investment in Sheffield and will kick start this exciting 1m sq ft city centre regeneration project.
- The UK’s residential arm, Strutt & Parker, exchanged and completed in March on a landmark sale of an apartment at the One Kensington Gardens Scheme in London W8. Strutt & Parker’s New Homes Team achieved a sale price in excess of £25m on one of the premium units at this exclusive development of 97 apartments situated opposite Kensington Palace Gardens and Hyde Park.
- The residential business has also agreed a handful of sales site-unseen over the last two months as a result of the Matterport Virtual Viewing tool offered to vendors. Deals include a prime property in Ascot, on the market at a guide price of £5.5million. A sale has been agreed with one of the buying party of two, who are both based in the US, never having visited the property in person due to international travel restrictions.
Aidan Meynell Co-Head London Markets, BNP Paribas Real Estate comments on the UK market:
“Similar to all other global and continental European markets, UK real estate activity has slowed during the pandemic but we are now starting to emerge back to a degree of normality. The UK’s strong fundamentals will help to support recovery and although activity in London has slowed, occupational and investment deals have been ticking over in the past few months and have not been discounted.
This demonstrates the strength of the market, with London, in particular, having a solid global reputation for offering long-term value and a safe haven for investment capital. Our globally recognised legal system and language lowers barriers to entry and these factors will continue to attract global investors long-term.
Before the pandemic, we saw strong demand for all risk assets across London but severely restricted supply of opportunities. Stock levels have not changed and investor demand remains strong particularly for well located prime assets.”
More European deals are highlighted below:
GERMANY
- BNP Paribas Real Estate’s investment team accompanied the sale of Ericus-Contor in Hamburg’s HafenCity to Union Investment in May. Seller of the 19,000 sq m office property, built in 2012 and is 98% let, with DGNB certification in platinum, was Patrizia. Union Investment aims to close in June in order to contribute the property to its public fund "UniImmo: Germany". The IVG fund division, which was merged into Patrizia, had acquired Ericus-Contor in 2014, also advised by BNP Paribas Real Estate.
ITALY
- BNP Paribas REIM Italy, on behalf of its managed fund ReItaly, sold to the "Polvanera" fund managed by Kryalos SGR a real estate portfolio consisting of 5 Cash & Carry branded Docks (Carrefour Group) located in Piedmont and Liguria. The portfolio has a gross surface area of about 37,000 square meters.
- BNP Paribas Real Estate’s Capital Markets team advised Snaitech S.p.A on the disposal of the Ex Trotto area and the Ex Training Centre complex in Milan’s San Siro district to Hines. Covering 150,000 sq m, the area is part of an important urban regeneration scheme with the aim to restore to the city a long time unused space in the north part of Milan. The final project will be focused on achieving high levels of sustainability in order to offer citizens an accessible residential complex surrounded by a large green area, enriched by the provision of numerous services.
NETHERLANDS
- BNP Paribas Real Estate has advised a Dutch landlord / investor on the lease transaction of a new large distribution centre for Picnic Technologies. The distribution centre measures approximately 20,290 sq m of industrial logistics space as well as 980 sq m of office space and is located at Ecofacterij 20 in Apeldoorn. Apeldoorn is centrally located in the Netherlands with access to a very attractive catchment area.
POLAND
- A joint venture between Origami Capital Partners (USA) and 4 Friends Investment (Germany) has recently acquired a portfolio comprising five commercial properties owned by Tesco located in major Polish cities. The Kaufland chain has become a new anchor tenant for large-format stores. BNP Paribas Real Estate Poland Capital Markets advised the investor on the purchase. The company will be responsible for the property management and leasing.
- Karolkowa Business Park and Crown Square - BNP Paribas Real Estate Poland’s office agency team has become the exclusive agent responsible of leasing two office buildings located close to Daszyński roundabout.
- Nexans, one of the world's most important players on the cable and wire market, will move into Panattoni Park Szczecin II. The company has leased almost 5,000 sq m of warehouse and office space in a modern facility located near the A6 motorway. The lease transaction was led by the BNP Paribas Real Estate Poland Industrial and Logistics Agency.
ROMANIA
- As the exclusive agent of Hexagon Offices building located in Cluj Napoca, BNP Paribas Real Estate has already leased nearly 80% of the building. The Property Management team is handing over an almost fully leased building with 21,600 sq m GLA.
CZECH REPUBLIC
- Czech Republic’s Industrial & Logistics Agency team has arranged the land acquisition and warehouse lease for Gienger, one of the wholesale leaders in heating, plumbing and sanitary engineering. Gienger, moved into its new warehouse space (10,000 sq m) in the BigBox complex in Horní Počernice in March. Moreover, the company plans to build its own warehouse facility on the land near Opava.
- The Office Agency team supported RENAULT with re-negotiating the office space lease of 2.400 sq m in a legendary building in Prague’s Karlin - the International Business Center near Florenc. As the landlord offer met all expectations and requirements of the client, the business decided to prolong the agreement and stay in the building, which RENAULT has occupied for almost 25 years.
IRELAND
- BNP Paribas Real Estate’s Ireland investment team sold on behalf of their client ‘The Rathgar Road Collection’ – Comprising of 6 period properties, the Rathgar Road Collection was acquired by LRC Group for €18million.
- The investment team have also on behalf of their client Magellan Properties Limited closed the investment sale of 1 Upper Hatch St, A grade A prime modern office building located in Dublin CBD fully let to Deloitte and H&R Block for total capital value of €35.1 million.
- The Irish office agency team have completed the disposal on behalf of their client Infinity Capital of One, Two & Three South County Business Park. The leasing of 27,870 sq m (300,000 sq.ft.) by Mastercard ranks as the largest suburban office letting in the history of the state. Mastercard are moving from Central Park to South County Campus to establish a new Global Tech Hub.
BELGIUM
- BNP Paribas Real Estate’s Letting & Sales Team successfully advised G4S Care, in collaboration with Fedasil, on the letting of the former Medical Centre Park Leopold totaling over 25,000 sq.m in the heart of the European District. G4S Care and Fedasil will provide shelter for refugees as part of the fight against the coronavirus.
- Belgian’s Property Management arm has recently been mandated for two new missions, totaling over 100,000 sq m The new assets under management include three retail sites owned by Redevco (ca. 61,100 sq m) and Rynda Property Investors LLP’s office building called The Bridge (ca. 41,300 sq m).
LUXEMBOURG
- Two property management mandates started during the lockdown period. On the one hand, a co-ownership mission for Ceetrus’ Auchan Shopping Center. This asset, totaling 98,000 sq m and located in the Kirchberg area, enhances the list of retail assets under management in Luxembourg. On the other hand, a full property management mission on behalf of Patrizia Immobilien AG to manage their office building called “Air Building” (ca. 5,300 sq m)
“That these deals have been able to complete during one of the most challenging circumstances ever seen is a testament to the trust our clients have in our business. It also demonstrates the long-term value and solid fundamentals the real estate market offers. I am proud to see the dedication from our employees to make this possible. During this crisis BNP Paribas Real Estate has used its long-standing expertise, flexibility and resilience to support and deliver value to its clients, which we are committed to continue to do as we slowly emerge into a post-COVID era”, says Thierry Laroue-Pont, CEO of BNP Paribas Real Estate.
