Property Investor Europe & Property Finance Europe

Unibail-Rodamco posts wider E1.5bn net loss, sees better 2010

French-Dutch REIT Unibail-Rodamco, the largest listed property company in Europe, posted a 7% rise in recurring earnings per share in 2009 but a wider net loss of E1.47bn, against E1.12bn in 2008. It marked the portfolio down another 2.7% from June to E22.3bn, having taken E2.3bn in valuation movements and disposals over the year. Fully diluted net asset value ended 2009 15% lower at E128.20. "The group ends 2009 with solid earnings growth in line with expectations, despite a very adverse economic environment," said CEO Guillaume Poitrinal. But the group will maintain its distribution of 87% of recurring net earnings, will propose a E8.00 per share dividend to be paid in full on 10 May 2010, and sees a better 2010. (See upcoming PIE editions for full story)

German open property funds have E3.2bn inflows to E87bn total in 2009

German open-end property funds ended 2009 with total capital under management of E86.8bn, having taking in a net E3.2bn over the year, also boosting the number of property fund savers to 20% of all fund investors from 14% in 2008, according to German fund association BVI. Net capital inflows to the 44 OEFs have varied widely over recent years, with nearly E15bn flowing in during 2002, and just under E14bn in 2003, followed by net outflows in 2005 and 2006 due to relatively high returns in, among other assets, money market funds. The inflows resumed in 2007 - at E6.6bn - but fell back to just E600m in 2008, prior to last year's improved result. (See upcoming PIE editions for full story)

Unibail-Rodamco to pay E715m for Simon Ivanhoe's European portfolio

French-Dutch shopping centre REIT Unibail-Rodamco, the largest listed company in Europe, has confirmed speculation that it will buy part of Simon Property Group's European portfolio. It announced an agreement for payment of E715m for Simon Ivanhoe, a jointly held unit of Simon and Ivanhoe Cambridge, which holds shares in seven shopping centres in France and Poland. U-R has also entered a JV agreement for Simon and Ivanhoe Cambridge to jointly retain 50% interests in five French retail development projects which will now be developed by Unibail Rodamco. (See upcoming PIE editions for full story)

MIPIM 2010 investor registrations up 12%

The first major European real estate trade fair of the year, MIPIM taking place in Cannes in March, has received 12% more investor registrations than in 2009 which, it says, points to improved confidence in the marketplace. Some 2,300 international investors have registered for the 21st edition of MIPIM on 16-19 March. (See upcoming PIE editions for full story)

Paris-La Défense eases permit terms for five towers

The management of the Paris office complex La Défense has eased permit conditions for five new towers to encourage their development. Without giving details, EPAD said the high-rise office blocks are Carpe Diem being developed by a consortium of insurance groups Aviva and Predica, the D2 tower planned by Sogecap, life insurance unit of Sociéte Générale, Air 2 planned by The Carlyle Group, the Majunga tower planned by Unibail-Rodamco, and a tower planned by Milan-based Generali. (See upcoming PIE editions for full story)

AIM's Speymill reviews debt to avert covenant breaches

The AIM-listed German residential property fund Speymill is to seek additional financing to avert potential debt funding covenant breaches, but said it has sold E22m of assets at a premium and vacancy rates across its portfolio are stable. The group at its year-end last June was carrying debt of E1.2bn which implied LTV of 81% against its asset portfolio of E1.5bn. (See upcoming PIE editions for full story)

European RE shares offer selective value - LIM

The outlook for real estate securities in Europe is relatively normal going forward, with equity and bond markets open but picky. However good assets, people and balance sheets should deliver good returns, says LaSalle Investment Management. The current situation is a "reasonably normal marketplace and European real estate securities pricing is also reasonably fair: 4.2% dividend yield, 5-10% NAV premiums, single-digit forecast earnings growth and little-to-no expected changes in earnings multiples." (See upcoming PIE editions for full story)

US housing, money, bad loans mean crisis not yet over

The world economy is far from exiting the global financial crisis and three elements point to further weakness - the still fragile state of US housing, a worrying contraction in money supply worldwide, and a mountain of bad loans to be worked through by banks, says economist Ian Shepherdson from High Frequency Economics. He told the Urban Land Institute conference this week that the crisis was a super-cyclical event not seen since the 1930s, and damage to the world's banking system will take years to work through. The earliest trend growth may resume is 2012 or 2013. His remarks came in contrast to the general mood: 68% of real estate specialists in an electronic quick vote said they expected investment to restart this year. While some 44% predicted a W-shaped crisis - a further dip before sustainable improvement sets in - another 36% saw a U shape recovery. (See upcoming PIE editions for full story)

Germany's DekaBank to acquire up to E2bn real estate in 2010

Germany's largest open-end property fund manager DekaBank, the central investment bank of the savings bank network, is likely to make acquisitions around the level of last year - up to around E2bn, Deka Immobilien Managing Director Thomas Schmengler told PIE. (See upcoming PIE editions for full story)

Former Kenmore officials launch Tamar; acquire £750m portfolio

Former top officials of the Scottish real estate management group Kenmore, now in insolvency, have launched Tamar Capital Partners to focus on UK, western and northern European markets. With financial backing from The Tavistock Group, Tamar's first accord is to manage assets held by Kenmore. Tamar is headed by Rob Brook, former Kenmore head, supported by Ron Robson. It has acquired management contracts and assets with a total gross value in excess of £750m. (See upcoming PIE editions for full story)

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