Europe Property Deals Start Strong
Wall Street Journal reports: Fueled by a surge in property deals in the fourth quarter of 2009, European commercial-property investment got off to a strong start this year.
Yet, despite the increase in deal announcements, transactions remain well below the peak in 2007, as concerns persist about the economy. Many of the deals done in Europe over the past year looked good as property markets began to recover. But the scenario could change if the economy stalls.
The biggest single deal this year is the €316 million ($428.5 million) purchase by Union Investment Real Estate GmbH, the German property fund manager, of the Alexa shopping center in Berlin, according to data provided by Real Capital Analytics. Alexa opened in September 2007, just as the financial crisis was beginning. It has 180 shops spread over five floors and 43,000 square meters of shopping area. Union bought a 91% stake from Sonae Sierra, the Portuguese developer, and French property group Fonciere Euris/Rallye. Sonae Sierra retains a 9% stake and manages the property.
View the full article on Wall Street Journal: Europe Property Deals Start Strong
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Posted by: Nina Turner