Money Buzz! Europa

Category: Real Estate

  • Jumeirah Group will manage and operate Capri Palace in Italy

    Jumeirah Group will manage and operate Capri Palace in Italy

    Jumeirah Group, the global luxury hospitality company and a member of Dubai Holding, announced it has been appointed to operate and manage the renowned Capri Palace in Italy.

    Reopening as Capri Palace, Jumeirah in April 2020, the Italian property enjoys an idyllic location in bustling Anacapri; one of the most exclusive and unspoiled parts of the island. The hotel, founded by Tonino Cacace, stands high above the Gulf of Naples and fully embodies the Italian Dolce Vita; with an authentic Capri style and sea views.

    Designed in the style of an eighteenth-century Neapolitan palazzo, Capri Palace has attracted many since it first opened its doors in the 1960s, establishing itself as the island’s most iconic hotel. Under Jumeirah’s direction, the property is set to continue to grow with exciting upgrades and refurbishments in the pipeline.

    The tasteful interiors of the open spaces flow into the 68 guest rooms. White, blue and neutral tones create a Mediterranean atmosphere, whilst the ceramic tiles and bespoke furniture evoke the sense of an Italian family home, ensuring guests are well rooted in their surroundings. 

    In line with Jumeirah’s commitment to offering exceptional culinary experiences, Capri Palace, Jumeirah is home to three of the island’s Michelin stars. The hotel’s signature restaurant L’Olivo, which serves Mediterranean classics; whilst Il Riccio- the hotel’s private beach club, and is the only beach club in the world to have one star.

    Capri Palace, Jumeirah is also revered as a wellness destination, with the exclusive Capri Beauty Farm upholding a loyal international following.

    Capri Palace will bring the existing Jumeirah international portfolio to six hotels in Europe, including Jumeirah Frankfurt, Jumeirah Port Soller, Jumeirah Lowndes Hotel, Grosvenor House Suites Jumeirah and The Carlton Tower, Jumeirah.

    In addition to the group’s portfolio, of hotels in the Middle East, Jumeirah further manages hotels in China and Maldives with additional properties planned for 2020 in Indonesia and Oman.

  • The Property Block identifies development sites in areas with demand for more housing

    The Property Block identifies development sites in areas with demand for more housing

    The Property Block is a new Land Option company using pioneering technology to identify development sites in areas with demand for more housing.

    The Property Block is the brainchild of Financial Advisor, Glyn Williams. It is powered by their cloud-based property acceleration platform. The team are tackling the shortage of housing in the UK by revolutionising the fragmented, time consuming and costly land identification and development process.

    By positioning themselves in the one to four bed property market in prime areas and focusing on relatively small developments, they are bringing alive a huge market, helping landowners to profit and supporting the community need for more housing,

    19,200 undeveloped sites identified in Surrey

    The Property Block has been able to identify 19,200 undeveloped sites which were ideal for residential development in Surrey alone. The Property Block has far greater aspirations however and plans to assist in the delivery of 20,000 homes per year across the UK.

    Glyn Williams, founder and CEO of the company, said: “Surrey is just the beginning. The Property Block is working to integrate into the Planning and Building departments of all 400 Local Authorities. Even at a conservative estimate of ten sites per Local Authority we are set to change the industry. To put this into perspective, each site would most likely host an average of five homes each, or 50 homes per local authority.”

  • Hong Kong tops global ranking of most expensive shopping streets

    Hong Kong tops global ranking of most expensive shopping streets

    Hong Kong’s Causeway Bay has retained its crown as the world’s most expensive shopping street with London’s New Bond Street taking the title for the costliest place in Europe to locate a retail store, according to new data from Cushman & Wakefield.

    The annual ‘Main Streets Across the World’ report tracks rents for 448 locations across 68 markets – the largest number ever included since it started in 1988. The report ranks locations by their prime rental value using Cushman & Wakefield’s proprietary data.

    Last year Causeway Bay ended five years of domination by New York’s Upper 5th Avenue and in the 2019 rankings, it retains its position with rents to locate a store amounting to 2.164 €/ sq m / month. Upper 5th Avenue is in second place at 1.775 € / sq m/ month, with London’s New Bond Street third in the global list, with 1.352 €/ sq m / month.

    The Avenue des Champs Elysées in Paris (1.166 €/ sq m/ month) and Milan’s Via Montenapoleone (1.142 €/ sq m/ month) complete the top five. The biggest rental rise in the top 10 saw Sydney’s Pitt Street Mall increase rents by a colossal 17.9% over the past 12 months, to reach 849 €/ sq m/ month. Five of the top 10 global streets were in Europe, with four in Asia and just one in the US.

    Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield: “In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations. Rents on the world’s top retail streets have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America.”

    Bogdan Marcu, Partner Retail Agency Cushman & Wakefield Echinox: “The comprehensive Cushman & Wakefield global report shows once again that traditional retail is not slowing down. We will be witnessing changes in the consumer behavior over the next few years, and the retailers’ business will be entirely designed to interact omnichannel with the consumer. Retailers will try to create a unique experience through the integrated technology and innovative concepts of physical stores.”

    London tops European shopping streets

    From a European perspective, New Bond Street leads the way ahead of Paris and Milan, with Zurich’s Bahnhofstrasse at 683 €/ sq m/ month and Vienna’s Kohlmarkt at 405 €/ sq m/ month completing the top five. Among the top 10, Ermou in Athens saw the biggest rental rise of 14% to reach 285 €/ sq m/ month. Overall, rents in around 70% of locations in Europe were stable or up on last year. Polarisation is evident, however, between the more established markets of North Western Europe and Southern, Central and Eastern Europe, where modern supply is lower and online sales have yet to really accelerate.

    The Asia Pacific region is in a relatively strong position, with rents in over 80% of locations covered either rising or stable. India recorded a particularly strong performance, with solid rental growth across several cities, while retail rents in Hong Kong have been resilient in the face of the recent protests – although the outlook is more uncertain.

    In the Americas rental trends have shown a wide degree of variation. Rents in New York streets appear to be stabilising, following falls in recent years. Latin American retail markets continue to mature, although rents can be volatile.

  • Colliers has valuated real estate assets worth a total of 40 billion euro in Romania

    Colliers has valuated real estate assets worth a total of 40 billion euro in Romania

    Colliers International has valuated, in the past five years, a total of over 500,000 commercial and residential properties worth 40 billion euro. The most complex and comprehensive appraising process in Colliers International’s portfolio was for BCR Palace from University Square.

    Owned by BCR, the historical building located in the heart of Bucharest was finalized in 1906, based on Oscar Maughsch’s architectural plans, and before becoming BCR’s property it was the headquarters of “Generala” Insurance Society.

    Today, BCR Palace occupies 4,000 square meters of land, including the former garden of the Sutu Palace, currently the Bucharest Municipality Museum, and has 12,000 useful square meters distributed in two buildings with five levels each, of which one is underground, and an attic on only one of the buildings.

    The valuation of the property was carried out in stages throughout a period of four months, which is atypical considering that a classic valuation process for a building, based on ANEVAR standards, generally requires no more than two weeks.

    “Such a unique building required specialists with experience and expertise in similar properties, in areas including architecture, valuation of artistical components, engineering and reconstruction cost estimates. Once the team was formed, the next step was collecting all the data about the property’s history, construction and renovation works, measurements and cadastral layouts and structure surveys, all requiring extensive efforts which took several weeks”, explains Raluca Buciuc, Head of Valuation and Hospitality Advisory Services within Colliers International.

    The most complex part of BCR’s historical building appraisal was to complete the highest and best use analysis of the property, considering the perspectives of a potential investor: physical possibility of transformation, legal limitations from urbanistic point of view and economic feasibility.

    The valuation team worked with two scenarios for the building’s reconversion, either into office spaces or a hotel.

    The analysis of the potential income, occupancy and exit value lead to the conclusion that transforming the building into a luxury hotel is more feasible, with final calculations showing that this scenario would be 15% more profitable for an investor comparing with the office scenario.

    In order to accommodate an international chain affiliated luxury hotel, a building must offer at least 100 rooms, while BCR Palace could accommodate around 150 rooms.

    BCR Palace is not the first historical building valuated by Colliers International. The real estate consultancy company has been involved in the valuation of buildings such as the one now hosting the Hilton Garden Inn hotel in Bucharest’s city center, the old Marmorosch Blank building, which is currently being reconverted in the Autograph by Marriott hotel or Unirea Hotel from Iasi.

    All valuations were conducted strictly for determining the economic potential of those buildings.

  • Cordia raised the equivalent of PLN 575 m to finance its expansion

    Cordia raised the equivalent of PLN 575 m to finance its expansion

    Cordia issued its first bonds in Hungary to finance its expansion, predominantly in Poland. Cordia raised HUF 44.4 bn (PLN 575m) in its debut transaction which was heavily oversubscribed by financial institutions.

    Hungary’s market leading residential developer intends to expand both by acquiring new plots and also by purchasing other development companies.

    “The Company started preparing to enter the capital markets already in late 2017 to finance its development plans in CEE. Eventually we have decided to enter the corporate bond market in Hungary first and joined the programme initiated by local National Bank intended to build the local bond market, which attracted also dozens of local and international financial institutions. Our issuance was heavily oversubscribed, resulting in an average yield of 3.82% for our debut 7 year HUF bonds with annual coupon of 4%.” says Tomasz Łapiński, Member of the Management Board of Cordia International and CFO of the Cordia Group.

    “Cordia’s operations are well diversified into three main markets, i.e. Hungary, Poland and Bucharest. The Company has recently invested also in the very first project in Spain. Our portfolio of secured plots and projects includes over 4100 units in sales & construction as well as over 5200 units in the land bank. The bond issue we have just completed will allow us to extent it substantially investing into projects and companies in the markets where we are already present – mainly in Poland – but also searching for other opportunities. Due to our diversification we have much broader and better perspective.”, he adds.

    “As far as Poland is concerned, we have just commenced a new project Horyzont Praga in Warsaw and we are about to open also new attractive residential buildings in Tricity, namely in Gdańsk and in Sopot as well as in Kraków. We plan to enter also Poznań and Wrocław. We screen all our markets for new opportunities.” announces Michał Melaniuk, Head of Residential Development Poland.

    Cordia placed the bonds within the program initiated by the Hungarian National Bank which is intended to initiate bond financing among Hungarian enterprises, which mostly use bank loans.

    The results of the Cordia bond issue

    • total volume: nominal value of HUF 44.0bn (raised money HUF 44.4bn)
    • average price: 100.92
    • average yield: 3.82%
    • maturity: 7 years with amortization starting in the 5th year and spread into 6 equal semi-annual repayment tranches; final repayment date is November 2026
    • coupon: 4% payable semi-annually (2% payable every 6 months)

  • Gran Via Real Estate completes the residential project Aviatiei Apartments

    The Spanish-based developer, Gran Via Real Estate, completes in October the residential project Aviatiei Apartments with 291 units: studio, two and three room apartments, a total investment of EUR 17 million (construction cost, without land value).

    „We are completing this month the third project in Bucharest, a premium ensemble, in Aviatiei area, that benefits from contemporary architecture, efficient layouts, low height regime, indoor courtyard dedicated exclusively to residents and 300 underground parking spaces.”, says Antoanela Comșa, General Manager, Gran Via Real Estate România.

    The project Aviatiei Apartments is located on Soldat Gheorghe Buciumat street, a quiet area, near the Elvila furniture store and Lidl Romania headquarters.

    The complex is composed of four six-story buildings, gathered around a 1,000 sqm interior courtyard where green spaces, a playground and areas dedicated to relaxing and socializing residents are arranged.

    Aviatiei Apartments has put up for sale a mix of studios with usable areas between 40 and 48 sqm, two-room apartments between 57 and 60 sqm and three-room apartments from 67 to 72 sqm (net areas, without terraces / balconies)

  • Building permit for Marmura Residence was issued

    Investor and real estate developer Prime Kapital received the building permit for the Marmura Residence project, in Bucurestii Noi district. Final preparations are made for construction to begin and the owners will be able to move in in 2021, as previously announced.

    Marmura Residence is located only 100 meters away from Jiului subway station, close to the Expoziției Boulevard and the Pipera area office hubs.

    The project includes 464 double studios, 2,3,4-room apartments and duplexes, designed and built by the highest quality standards. More than 80% of the apartments available in the pre-sales campaign have been reserved for sale.

    Based on the concept of an integrated community, the project covers an area of 1.5 hectares and comprises 5.000 square meters of green spaces and generous terraces, 1.700 square meters of retail spaces, services and an exclusive recreation area for residents.

    “We are excited to honor the commitment made to the Bucureștii Noi community, whereby we are integrating in the urban landscape an old, abandoned industrial area.. Marmura Residence will create the premises for the growth of a vibrant community with high standards of architecture and comfort. The project will contribute significantly to improving the living standards and quality of life in the area and will contribute significantly to the future overall development of the neighborhood, ensuring sustainability and longevity”, said Maggie Kitshoff, Residential & Office Managing Director Prime Kapital.

    In 2018, Prime Kapital launched FlexAssist, a unique and bespoke program with several flexible options, offering interested people the opportunity to become homeowners.

    “FlexAssist is a viable option for our potential buyers that cannot afford the large deposits required for mortgages, do not receive their income from traditional employment contracts or find themselves at the beginning of their careers with great growth potential. FlexAssist is an exclusive Prime Kapital product and further reinforces our commitment to be a long-term player and the residential developer of choice in Romania”, added Maggie Kitshoff.

  • 20.000 first year students will look for accommodation in Bucharest

    After the admission to the 1st year of university, the troubles of the students and the parents from other cities are about start. Given that only 18% of these students find accommodation in the university dorms, more than 20.000 will have to resort to private campuses and rent.

    According to the data provided by the National Institute of Statistics and UEFISCDI for the university year of 2018/2019, in Bucharest there are 50.972 students enrolled for the first year – bachelor and master degree, day courses.

    The dynamics of Bucharest as a University City

    According to the data published by the National Institute of Statistics and UEFISCDI

    • 168.000 students study in the university centre of Bucharest; 129.000 of them  study in state universities
    • 37.000 accommodation places are available in the dorms of the universities
    • 5.500 accommodation places are available in private dorms and campuses
    • 37. 000 students are admitted to the 1st year of faculty; 33. 500 of them will attend day courses.
    • 9.000 first year students are from Bucharest and they do not need accommodation.
    • 18% of first year students are provided with accommodation in the dorms of the universities. The list of the students who will get accommodation will be made public in the second half of the month of September.
    • More than 20.000 first year students look for accommodation in private campuses or rented apartments.

    Private campus or rent?

    In Bucharest there are several private dorms and two private student campuses. The most important student housing operator in Bucharest is Arcca Student Housing which offers more than 2.600 accommodation places in single, double, and triple rooms. The prices range from 123 to 320 Euros/person per month, the sum is to be paid monthly and it includes all the expenses.

    “When teenagers get ready to go to college and leave home, this is what they dream of:  a typical student life. New colleagues, jokes, socialisation, mutual support, permanent exchange of ideas. Most probably, nobody dreams of an apartment in a block of flats where they have to live alone. Thus, we ensure both the social context young people look for and the safety parents want for their children”, says Anamaria Dunca, General Manager of Arcca.

  • The local real estate market is in the sight of Asian investors

    The local real estate market has begun to attract the attention of major Asian investors, as groups from China and South Korea are exploring the potential to invest directly in the primary commercial markets. It is feasible that the first transaction could occur by the end of this year, according to Cushman & Wakefield Echinox consultants.

    The local market is currently undergoing a maturing process, which also involves the diversification of investment capital, and Asian investors, who have made major acquisitions in Western Europe and Poland, are expanding their areas of ​​interest to the other countries in the region.

    Tim Wilkinson, Partner, Capital Markets, Cushman & Wakefield Echinox: „In recent years, we have seen a diversification of the investment capital via the entry of new players from the United States, Lebanon, the Czech Republic and Belgium, a process that we consider will continue with the first acquisitions by Asian investors attracted by quality projects, blue-chip tenants and by yields which are over 200 basis points higher than those from Central Europe.”

    Cushman & Wakefield data shows that Asian investors (from Malaysia, South Korea, Singapore, Philippines) have made acquisitions of over 2.8 billion euros in Poland over the past three years (2016-2018), having a market share of over 16%, while significant transactions have been signed in the Czech Republic and Hungary last year by Shinhan Investment from South Korea and by Mapletree from Singapore, as the share of Asian investors is expected to grow in these markets as well.

    On the local market, real estate transactions with a cumulative value of about 957 million euros were closed in 2018, the largest acquisitions being made by Dedeman, Sonae Sierra, Lion’s Head Investments and MAS Real Estate, in partnership with Prime Kapital.

    The prime yields in the local market are 6.75% for the retail sector, 7.25% for the office sector and 8.75% for the industrial sector, with anticipated compression in 2019 as a result of the increasing interest from potential buyers. We can expect to see between 25 – 50 basis points compression from the current prime office and industrial yields in 2019. The timing for prime retail yield compression is highly dependent on when a truly dominant asset is brought to market.