Frankfurt Investor Beats Out Texas Firm in Germany's Biggest Property Deal of the Year
TAG Immobillien of Frankfurt paid $604 Million (471 million euros) to outbid rivals and acquire 12,000 apartments (flats) in former East Germany. The deal was the biggest of the year in Germany. Germany's state-owned real estate firm, TLG Wohnen GmbH, was the seller. Privately held Lone Star Cos. of Dallas, TX was the second highest bidder.
The transaction involves two separate portfolios and a small number of commercial properties. The deal is expected to close by year end. The second largest real estate deal in Germany this year involved the $1.78 billion (1.4 billion euros) sale by public sector bank LBBW in February to Patrizia Immobillien investors of Augsburg, Germany for 22,000 apartments. One euro equals $1.29 US.
$350 Million Mixed-Use Project Planned in Myanmar
Yoma Strategic Holdings Ltd. of Singapore (SGX:YOMA) has contracted with Hong Kong-based Serge Pun & Associates Ltd. to joint venture a two-million-square-foot mixed-use development on a prime 10-acre site in downtown Yangon (formerly Rangoon), the largest city in Myanmar (Burma) with a population of four million.
The partners estimate the project will cost about $350 million. Myanmar itself is the second largest country in Southeast Asia with a population of 60 million. The planned development is believed to be one of the largest in the country since it won independence from the United Kingdom in 1962.
The development's master plan calls for the restoration and conversion of the world-famous Railway Headquarters complex built in 1877. The landmark building will become a five-star hotel adjoined to a newly built, five-star luxury condominium structure.
The plan also calls for a second hotel, four star status; a four-star serviced apartment complex; and two Class A office towers totaling 700,000 square feet of gross floor area. A five-story, 400,000-square-foot retail podium is also on the drawing boards. Yoma became a partner in the project by paying $81.28 million for 80 percent of the issued and paid-up share capital of Meeyahta International Hotel Ltd.
Carlton Group Brokers $324 Million Financing Package for Historic Four Seasons Hotel Milan
New York City-based Carlton Group, chaired by Howard L. Michaels, has orchestrated a $324 million recapitalization and a discounted loan payoff for the historic 118-room Four Seasons Hotel Milan. Carlton arranged the deal for Statuto Group, a 62-year-old real estate investment banker based in both Roma and Milan, Italy. Michaels calls the deal "a high-profile transaction for a high-profile property."
The hotel is housed in a restored, former 15th century convent in Milan's Motenapoleone district. The property made headlines in 2006 when Statuto purchased the asset from New York City-based Quinlan Private in a $242 million deal, at that time a world record for the largest hotel transaction based on price-per-room, according to a prepared statement from Michaels.
Aon Hewitt Office Complex in Illinois Sold for $148 Million
An unidentified buyer paid $148 million to Oak Brook, IL-based Retail Properties of America Inc. for the 818,686-square-foot Aon Hewitt office campus in Lincolnshire, IL. The Illinois REIT said in a press release it used the proceeds to pay off $117.7 million of mortgage debt and accrued interest on the entire property.
RPAI still owns 343,000 square feet of office space on the Aon Hewitt East campus. That property is fully leased to Aon Hewitt, a global provider of insurance, human resources solutions and outsourcing services. The sale brings RPAI closer to its year-end goal of disposing of $450 million to $550 million in assets. So far this year, the REIT has sold $414.4 million of non-core and non-strategic assets.
Northwood Receives $100 Million Loan on Dallas, TX Retail Complex
ING Investment Management has provided a $100 million loan to Northwood Investors LLC for a segment of its 1.2 million-square-foot The Shops at Park Lane in Dallas. TX. ING and Northwood are both based in New York City. The Dallas office of HFF assisted in arranging the transaction.
The 33.5-acre property opened in 2009 at a development cost of $441 million. The first phase of the two-phased campus is zoned to accommodate an aggregate 2.9 million square feet of office and retail space. Retail currently totals 600,000 square feet; office, 340,000 square feet. The Heights at Park Lane, a 325-unit residential segment, is also park of the development.
Jamaica Center Gets $$81 Million Loan
The 10-year-old, mixed-use Jamaica Center in Queens, New York has received $81 million in new financing from New York City-based Jefferies Loan Core LLC The New York office of HFF brokered the 10-year, fixed-rate loan for the property's developer, Mattone Group LLC, also of Queens.
Jamaica Center includes a 15-screen, 3,300-seat theater, office space and a 375-space garage. Michael X. Mattone is the company's chief financial officer.