By Tom Leahy on March 31st, 2020
The number and value of European commercial property transactions in March will be low in comparison with recent years. However, despite the ongoing lockdown in the U.K. and in most other large European economies, notable deals are still being completed.
On March 27 it was announced that a member of the Qatari royal family had bought London’s Ritz Hotel for a rumored £750 million to £800 million ($930 million to $990 million). The deal had been well trailed: it was first announced in January that the hotel’s owners, the Barclay brothers, were in talks to sell the asset.
Other notable transactions include Union Investment’s acquisition of the other 50% of Watermark Place in the City of London from their joint venture partner OMERS. Elsewhere, Aviva bought the Credit du Nord office in Paris from the tenant in a sale-and-leaseback deal; and in Munich’s prime shopping area, Centrum purchased a high street store on Maximilianstrasse for a rumored €250 million ($270 million).
On the portfolio side, some large deals have also transacted. These include the acquisition of a share of a Spanish and Portuguese shopping center portfolio by Allianz and Elo Mutual for €935 million, and ECE’s purchase of a portfolio of over 2,000 apartment units in England for £400 million.
It is likely the case that these and most other recently completed deals had been worked on well prior to this acute stage of the COVID-19 crisis and RCA anticipates a further slowing throughout April as the lockdowns remain in place, denting economic and financial activities.
To read our latest analysis and commentaries on the impact of the coronavirus on global property markets, go to rcanalytics.com/coronavirus
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