segro swoops for airport property partnership with cash ... · more than €415 million in capital,...
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Segro has taken full ownership of the Airport Property Partnership (APP) after acquiring the remaining 50 percent from Aviva Investors for £365 million.
The transaction consists of £216 million in cash and a £149 million disposal of assets to Aviva. APP is valued at £1.1 billion.
APP comprises of 21 direct property assets totalling 350,000 square metres, with 87 percent located at London’s Heathrow Airport. The portfolio currently runs a vacancy rate of 7.5 percent and an average lease length of 11 years.
The portfolio generated £42 million of annualised rent as of December 2016, with a further £6 million expected after expiry of rent-free periods.
Segro, which first acquired its stake in APP in 2010, funded the cash element of the
Standard Life and Aberdeen Asset Management agree £11 billion merger
Standard Life and Aberdeen Asset Management (AM) are set to create Britain’s largest asset manager, agreeing terms for an £11 billion merger.
The deal, subject to a number of conditions including shareholder approval, will create a combined group with £660 billion of assets under administration globally.
This will make the group the largest active investment manager in the UK and the second-largest in Europe.
The combined group will be headquartered in Scotland, and will eventually be re-branded to incorporate the names of both entities. The deal is expected to be closed in Q3 2017.
After completion of the merger, Standard Life shareholders will own 66.7 percent of the group, while Aberdeen AM’s shareholders will own approximately 33.3 percent.
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China real estate enjoys early growth
China saw almost double-digit growth in real estate investment during the first two months of 2017, as demand for residential and commercial property increased.
Real estate investment was up 8.9 percent year-on-year, according to China’s National Bureau of Statistics, with growth 2 percentage points higher than 2016’s figure.
Investment in residential buildings was up 9 percent during the first two months of 2017, while 140.54 million square metres of commercial floor space was sold, reflecting 25.1 percent of growth year over year.
Sales of commercial buildings amounted to RMB 1.08 trillion (USD 156.2 billion), an increase of 26 percent over the previous year.
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Segro swoops for Airport Property Partnership with cash and asset deal
deal through a £573 million rights issue. The remainder will be invested in the company’s development pipeline.
The assets that Aviva has acquired consist of four London industrial properties and a Portsmouth manufacturing facility, totalling 70,000 square metres and generating £6 million of annualised passing rent.
According to Segro, the acquisition is in line with building scale in core markets and taking full control of developments to improve operational flexibility.
David Sleath CEO of Segro, said: “The strong working relationship between the teams at Segro and Aviva Investors has enabled the APP portfolio to deliver excellent performance over the last five years and we appreciate Aviva’s contribution to making APP such a successful partnership.”
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ISSUE14 21 March 2017
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Segro swoops for Airport Property Partnership with cash and asset dealContinued from page 1
Ed Casal, CEO of Aviva Investors Real Estate, commented: “This is a very positive deal for our clients, and in line with our broader real estate strategy to have direct control of assets and focus on core markets where we are able to drive performance through expert local market knowledge.”
He added: “We see real upside in the assets we have acquired through this transaction, and are confident they will contribute strong performance for our clients.”
China real estate enjoys early growthContinued from page 1
At the end of February, available commercial floor space was down 4.6 percent to 705.55 million square metres.
The funds in place for real estate development enterprises in the first two months of 2017 reached RMB 2.3 trillion (USD 332.7 billion), which was up 7 percent on the previous year.
Standard Life and Aberdeen Asset Management agree £11 billion mergerContinued from page 1
Aberdeen Asset Management is currently valued at around £3.8 billion, and Standard Life is reportedly valued at about £7.5 billion.
On completion of the merger, Gerry Grimstone, current chairman of Standard Life, will become chairman of the board of the group. Simon Troughton, chairman of Aberdeen, will become his deputy. It is expected the board will have equal representation from both firms.
Keith Skeoch, CEO of Standard Life, and Martin Gilbert, CEO of Aberdeen, will become co-CEOs of the group.
Skeoch said of the merger: “We have always been clear that it is Standard Life’s ambition to become a world-class investment company and that this would be achieved through continued investment in diversification and growth, coupled with a sharp focus on financial discipline. We are therefore delighted that this announcement marks another important step towards achieving that ambition.”
He added: “The combination of our businesses will create a formidable player in the active asset management industry globally.”
“We strongly believe that we can build on the strength of the existing Standard Life business by combining with Aberdeen to create one of the largest active investment managers in the world and deliver significant value for all of our stakeholders.”
Gilbert said: “We believe this merger is excellent for our clients, bringing together the strong and highly complementary investment capabilities of each firm with a breadth and depth of talent unrivalled amongst UK active managers and positioning the business to meet the evolving needs of clients and customers. This merger brings financial strength, diversity of customer base and global reach to ensure that the enlarged business can compete effectively on the global stage.”
Barings Real Estate achieves $15.3 billion of transactions in 2016
Barings Real Estate (RE) Advisors achieved $15.3 billion worth of transactions in 2016, and expects 2017 to be just as active.
The transactions comprise of $4.3 billion in real estate debt in core mortgages and high-yield structured investments and $4.4 billion in global Real Estate Investment Trust (REIT) securities investment transactions.
Equity acquisitions and financing made up $2.3 billion in transactions, while executing
Inside Real Estate Investment Times ISSUE14 21 March 2017
Latest NewsCommercial investment banking firm George Smith Partners has secured $30 million in refinancing for Plaza de Hacienda
page 4
Logistics SectorThe digital boom is making retailers think long term, much to investors’ delight
page 8
Industry EventsREIT is present at all of the major real estate investment conferences and events around the world
page 11
Latest NewsThor Urbana has applied to place a Capital Development Certificate at the Mexican Stock Exchange
page 6
MIPIM ReportInstitutional real estate investors need to embrace the new and unusual
page 10
Latest AppointmentsComings and goings at AXA Investment Management, Deutsche Bank, George Smith Partners and more
page 13
and advising amounted to $2.1 billion. Finally, commercial mortgage-backed securities and REIT bonds amounted to $1.4 billion and residential pools transactions totalled $800 million in 2016.
Transactions in Europe reached $1.1 billion in 2016 and European assets under management hit $4.4 billion.
In 2016, Barings RE Advisors saw the integration of Cornerstone Real Estate Advisors, Babson Capital Management, Barings AM and Wood Creek Capital Management, which brought its assets under management to more than $271 billion.
This year, Barings RE Advisors deals in Europe already include the €250 million sale of its 50 percent share in the Kamppi Centre in Helsinki and the acquisition of Landmark Manchester for €115 million.
Charles Weeks, head of real estate in Europe at Barings RE Advisors, commented: “2016 saw the further strengthening of our European platform with a number of key hires made during
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evolution. At CACEIS, our strategy of sustained growth is helping
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Deal Sheet
News Round-Up
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the year. Following the successful merger and re-branding of our business we now operate from a larger and more extensive platform, offering a broader set of investment solutions to our clients.”
Weeks added: “As ever, our focus in 2017 will be to continue to originate promising deals, apply our best-in-class asset management skills and, in turn, deliver solid returns for our clients.”
Scott Brown, global head of real estate at Barings RE Advisors, said: “We continue to grow Barings’ real estate business by identifying economic, demographic and social trends and developing and executing on innovative investment strategies that provide investors with strong risk-adjusted returns that are accretive to their portfolios globally.”
AEW doubles capital in city retail fund
The AEW Europe City Retail Fund has raised more than €415 million in capital, taking its capacity above €800 million.
The amount, raised from several unnamed international institutional investors, is more than double the fund’s initial target of €400 million and paves the way for further investments in European retail assets.
The fund has already invested €200 million across Europe, having raised €125 million of equity at its first close in November 2015. Its portfolio includes prime high street assets on Via del Corso in Rome and on the Østergade in Copenhagen.
Marc Langenbach, head of funds for AEW in Germany, commented: “To have exceeded our initial fundraising target is a clear sign of the ongoing demand for good quality income-producing retail assets throughout Europe, and a strong endorsement of our investment strategy to date.”
Christina Ofschonka, AEW’s fund manager for the City Retail Fund in Germany, added: “We have already invested around €200 million in a range of assets across Europe including in Copenhagen, Rome and Madrid and have a further €400 million of investments under exclusivity in France, Italy and Germany, which will allow us to both grow and further diversify the fund’s portfolio.”
BNP Paribas wins Belgian mandate
Deka Immobilien has mandated BNP Paribas Real Estate Belgium as property manager for seven assets.
The portfolio, composed of six office buildings and one hotel, represents a total surface area of 95,236 square metres in and around Brussels. The mandate took effect from 1 January.
Retail centre in $30 million refinancingLos Angeles | Reporter: Mark Dugdale
Commercial investment banking firm George Smith Partners has secured $30 million in refinancing for Plaza de Hacienda, a 156,000-square foot grocery-anchored retail centre in Los Angeles.
The 10-year $30 million loan, from an unnamed commercial mortgage-backed securities lender and secured on behalf of real estate investment firm Optimus Properties, was structured with a loan-to-value of 65 percent with a five-year interest-only period, followed by an amortisation of 30 years.
The rate was fixed at the 10-year swap plus 2.53 percent, with a 1.23 debt coverage ratio and 7.75 percent debt yield.
“With the wave of CMBS loans set to mature this year, many borrowers are looking to refinance,” according to George Smith Partners principal and managing director Shahin Yazdi. “It’s prudent to seek long-term fixed-rate loans in order to lock in low rates now, prior to future interest rate increases.”
“The challenge with this deal, however, was that despite the strength of the centre’s tenant mix, many of the anchor tenants had leases that were set to expire in the next several years. As a result, many lenders were hesitant to be aggressive with the debt yield.”
“By demonstrating the strength of this stabilised asset, which has historically maintained nearly 100 percent occupancy and a strong roster of national credit tenants, we were able to secure competitive cash-out refinancing,” Yazdi said.
Savills Investment Management (IM) has acquired a retail park in San Sebastian, Spain, through its retail fund, Europe II, for €16 million.
Covering 10,300 square metres, and marking the fund’s first operation in the Spanish retail market, the park’s main tenants include supermarket Mercadona and DIY store Brico Depot. The park is located next to motorways GI-636 and AP-8.
The acquisition comes as Savills IM prepares to raise €500 million of equity for its new fund, Europe V, focusing on large scale assets in major cities across Europe.
BKM Capital Partners has acquired a light industrial business park in Phoenix, Arizona, for $17.2 million.
Northwest Business Centre comprises 11 multi-tenant buildings, totalling 227,603 square feet. It is currently 77 percent occupied.
According to BKM Capital Partners, the fund manager will fill the vacant space through implementing a $3.5 million capital improvement programme, including a new roof and car park, and installing a heating, ventilation and air conditioning system.
Located along the Phoenix Metro’s 1-17 corridor, the business park is connected to the I-10 freeway, providing easy access to the metro area.
This is the company’s twelfth acquisition in Phoenix Metro, bringing its portfolio to over 2.1 million square feet of multi-tenant light industrial properties. Cushman & Wakefield represented the vendor in the sale.
Green REIT has sold the Parkway Retail Park in Limerick, Ireland, for €24.3 million.
The site, built in 2000, totals 146,056 square feet and comprises of eight modern retail warehouse units, a restaurant and a car park.
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Frédéric Van de Putte, CEO of BNP Paribas Real Estate in the Benelux region, said of the mandate: “We are honoured to obtain this new mission from one of the most important investors active in the international and Belgium real estate sector.”
In Belgium, BNP Paribas Real Estate manages more than 2.4 million square metres of assets across the office, industrial, logistics, retail and hotel sectors.
It manages more than 36.3 million square metres throughout Europe.
Co-investments on the rise as managers seek capital, says Preqin
More real estate firms offered co-investment opportunities in 2016 as fund managers seek more capital and better returns, according to a Preqin survey.
Fund managers surveyed that offer co-investments rose from 56 percent in 2014 to 67 percent in 2016.
Sovereign wealth funds co-invest the most, with 60 percent of the group saying they co-invest, likely because of their large resources.
In addition, 57 percent of investors with more than $10 billion in capital make, or consider making, co-investments, compared to 24 percent of those with capital under $1 billion.
Difficulties fund managers highlighted in offering co-investment opportunities included effective co-ordination and co-investors having more control over the investment.
Andy Moylan, head of real estate products at Preqin, commented: “Recent years have seen institutional investors increasingly looking for alternatives to the blind pool fund model.”
“For some, this has been through increased use of direct investments but this remains impractical for all but the largest investors.”
“Co-investments can offer institutions the opportunity to gain more exposure to attractive assets, with more control and potentially lower fees while still accessing a third-party manager’s skill and pipeline of potential deals.”
He added: “Private equity real estate fund managers are clearly seeing the benefits of offering co-investments, such as improved investor relationships and increased chances of a successful fundraise.”
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Thor Urbana makes CKD bid at Mexican Stock ExchangeMexico City | Reporter: Theo Andrew
Thor Equities’s Mexican affiliate, Thor Urbana, has applied to place a Capital Development Certificate (CKD) at the Mexican Stock Exchange (BMV), to raise funds for retail and leisure investment.
The real estate development and investment company is looking to raise between $350 and $400 million from retirement funds and international investors.
A CKD is issued by a trusteeship and channels resources into developing sectors and infrastructure projects, in a bid to provide portfolio diversification for qualified institutional investors.
Thor Urbana plans to invest the capital raised into lifestyle retail centres and mixed-use projects across cities in Mexico with high population density.
According to the company, this is in anticipation of significant growth in the sector as user demand increases for leisure space as well as retail space.
A company spokesman said: “We will use these funds to continue developing innovative projects that change the panorama of our cities. Our goal is to add value in every aspect for those communities where our projects are located, thus creating real centres to socialise as well as experienced-filled spaces.”
Tenants include TK Maxx and Homebase House, and the site is currently running at 80 percent occupancy, as of September 2016.
Acquired by Green REIT in 2013, the sale price reflects a profit of 74 percent, as well as an uplift of 4.4 percent on its 31 December 2016 valuation.
Developed over 8.09 acres of land, the park is located approximately 2.7 kilometres east of Limerick City and with nearby access to the M7 motorway.
Rockspring has acquired an office in Berlin on behalf of its TransEuropean Property Limited Partnership VI (TEP VI) fund, for €25 million.
The six-storey 1930s factory building comprises 7,000 square meters of office space plus 26 residential apartments, a retail unit and 20 car parking spaces.
Located on Chausseestrasse, Mitte, a popular location for technology, media and telecommunications companies, it is next door to Humbolt University, which has occupied the property for the last 20 years.
Now the university has vacated the building, Rockspring plans to redevelop and bring it to the market in Q4 2017, when vacancy rates in Berlin are expected to be under 3 percent.
This the second office acquisition by TEP VI in Berlin, and brings the fund’s investment in Europe’s urban districts to over €100 million.
The property was sold by a private German family office.
CBRE Global Investors (GI) has acquired a cross-dock logistics portfolio in Germany from Hellmich Unternehmensgruppe, for €128.4 million.
Comprising of 10 newly-developed facilities, built between 2012 and 2015, the 183,575-square metre portfolio was acquired in an off-market deal on behalf of two separate account clients.
The portfolio has 51,015 square metres of rentable space, which is all singularly let to DHL with an average lease length of 13 years.
According to CBRE GI, the assets have been developed close to cities, in order to meet the rise in demand for ecommerce and for shorter delivery times.
Six of the properties are located in the North Rhine-Westphalia, one is in Kessel and three are in Baden-Wuerttemberg.
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Logistics SectorTheo Andrew reports
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The ‘mega-shed’ is not typically considered the most glamorous addition to an investor’s portfolio of skyscrapers and luxury shopping centres, but for many, the evolution of the industrial sector is attracting institutional investors in their truckloads.
In March, CBRE Global Investors (GI) acquired a 183,575-square metre cross-dock logistics portfolio in Germany, for €128.4 million, comprising of 10 new facilities located close to cities in order to meet the rise in demand for ecommerce and shorter delivery times.
February saw CBRE GI join forces with Prologis, forming the Prologis UK Logistics Venture, a joint venture seeded with 7.6 million square feet of properties, focused solely on developing logistics real estate in the UK, again, driven by the rise in ecommerce.
Guaranteed next day delivery
It is a trend that has not just stood the test of time, but also political instability.
Even following the uncertainty of the Brexit vote, 2016 was a stable year for the European logistics sector. Despite below average investment in Q3, investors weren’t deterred, posting €9 billion in Q4, totalling €25 billion of investment for the year.
Jack Cox, head of industrial and logistics capital markets for Europe, the Middle East and Africa at CBRE, says: “The type of demand has changed, it’s not just about the size of buildings, but different types
of buildings. Some of the ecommerce players are really striving to establish a strong footprint for their supply chains and by making quick decisions to fulfil this goal they are keeping the rest of the occupational community on their toes.”
It’s no secret that ecommerce has taken away from traditional retail spaces, delivering an increased demand for tailored warehouse space.
One of those meeting that demand is Delin Capital Asset Management (DCAM), which, after announcing a recent pre-let agreement on a 58,000 square-metre warehouse with Lidl E-Commerce, plan to develop a further 150,000 square metres across Belgium, the Netherlands and Luxembourg in 2017.
Ekaterina Avdonina, managing director of DCAM, said of the Lidle agreement: “Occupier appetite for both pre-let and speculative warehouse development schemes is unabated, as demonstrated by the strength of a pipeline that should offer significant returns on investment.”
Cox says: “If developers produce the right product, by focusing on occupiers’ needs, at the right time, they are achieving a substantial amount of letting pre-practical completion. Strong occupier demand has reduced the generic leasing risk and this has increased the potential to lock into some very healthy returns.”
The industry is ripe for investment and the market is taking note. According to the Prologis Logistics Rent Index, historically low
The digital boom is making retailers think long term, much to investors’ delight
Currently in stock
Logistics Sector
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vacancies in 2016 meant continued rental growth. Average global rental prices grew 4 percent, hitting 5 percent in the US and 3 percent across Europe. Demand for warehouse space is increasing and, according to a recent survey by Deutsche Asset Management, is only likely to rise with urban and technological changes causing further disruption to the logistics sector.
France has been marked out by many as the market with most potential for development in the sector, and according to Deutsche Asset Management, which has tracked the country’s internet usage with the percentage of online purchases they make, the French lag behind countries such as the UK and Germany, which make 80 and 75 percent of their purchases online, respectively.
According to Savills Investment Management, which has highlighted logistics as one of its main investment sectors over the next five years, online shares of the EU retail market rose from 7 percent to 9 percent between 2014 and 2016.
Kiran Patel, chief investment officer at Savills IM, said of its plans: “The expansion of online retail across Europe is causing a rethink of many logistics networks as E-tailers seek to distinguish themselves through increasingly rapid delivery. In particular, urban distribution centres within city limits will become crucial to enabling rapid delivery to customers.” “The growing urban population, which is more tech-savvy and comfortable shopping online, is changing the logistics landscape. We expect this trend to continue, driving the need for innovative last-mile delivery capability and smart urban warehousing,” she added. The tide is turning and it is not just a strong occupational market but, fundamentally, a systematic maturing of the market towards urbanisation and technological change that is driving the growth
in the sector. These trends are disrupting the logistics sector and forward-thinking retailers are reshaping their overall strategies to accommodate this.
Cox says: “This is not a short-term fluctuation in micro economics, but a structural shift in the occupational market.”
Stock yielding
The question now is whether supply can keep up with demand for warehouse space, although investors are more willing to invest their time as well as money on success. Going long on targeted development in the face of lower investment yields offers investors a higher risk-return opportunity relative to established assets, according to Cox.
If the trend is starting to be felt in the European market, then it has more or less been institutionalised across the pond. The US has entered a something of a boom in the sector, building some 224.5 million square feet of industrial space in 2016 alone, the highest since 2008. More than two thirds of all projects were also built speculatively, signalling a high level of confidence in the sector, according to the JLL Q4 2016 Industrial Outlook.
The challenge will be keeping up with demand, especially in Europe, where square footage per family is four times less than that of the US.
Cox says: “The bottleneck is the number of best in class developers, however, the development community is very well capitalised at the moment so the deals that we do see will be very exciting because developers can deliver the new types of assets that occupiers are calling for.” REIT
Conference ReportTheo Andrew reports
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The institutional real estate world of the future, and the technology that will make it tick, was one of the major talking points at MIPIM 2017 in Cannes.
In one panel, speakers suggested that the future of logistics real estate investment will depend on the way the industry considers and incorporates technology developments today.
In particular, new technologies such as blockchain, along with how effectively firms handle big data, will have a resounding effect on the shape of logistics assets implementing ‘last-mile delivery’.
Logan Smith, head of logistics for the international investment group at BNP Paribas Real Estate, said: “There is confusion in the industry about what last-mile is and what it is going to look like.”
“It could be somebody’s garage or the boot of a hired car. We are used to conventional real estate and we want it to look like a box”, suggested Smith.
The growing trend of shopping online and ecommerce has not just taken away from traditional retail rental space, but has fuelled demand for tailor-made warehouse space.
Smith added: “We need stay on guard and shape what this looks like or we’ll all be holding onto the wrong assets.”
According to Smith, available warehouse space in Europe is a third of that in the US, meaning the potential scope of what companies and investors believe last-mile delivery assets to look like in Europe is large.
Raimund Paetzmann, independent advisor and former Amazon real estate director of operations for Europe, the Middle East and Africa, insisted that companies are doing what they can to cope with the change.
He said: “We are using analytics to crack big data and the more transparent it is, the more efficient it will be.”
Sessions also addressed changes to local real estate markets. For example, one focused on the speed of evolution in the Spanish residential real estate market, with speakers warning that it is up to real estate investment companies to keep up.
Attendees heard that in Spain an increase in renting homes over buying, and increased equity in the market, is set to shape institutional real estate investment.
Javier Rodríguez-Heredia, head of the office and residential segment for Hispania Actives Immobillarios, said: “Long-term renters will grow and younger people are changing their thinking.”
He added: “Five million of Spain’s population is 15 to 24 and ... 50 percent of them will be renters.”
Panellists noted that Spain is enjoying a period of political stability in comparison to many of its European neighbours, while investment is now close to pre-crisis levels.
Juan Velayos, CEO of developer Neinor Homes, said: “We are creating a new market, we need to adapt to change or [we] won’t be part of the game.”
“There is equity in the market now.”
Neinor Homes plans to list up to 60 percent of its shares on the Spanish stock exchange, the first time a residential developer has done so in a decade.
Velayos said: “You need strong institutions and in the future you will have five or ten big guys who will be leading the market into the new generation, it is the same in France, the UK and the US.”
In the US, however, the investment horizon is looking increasingly towards the long term.
Changing market trends in US real estate are becoming harder to track, causing investors to look for longer-term investments.
Christopher McGibbon, head of the Americas for TH Real Estate, said: “There is a change in the way investors are thinking. They are now looking 20, 30 or even 40 years ahead.”
One cause of this could be the increasing impact of coworking and technology, which is changing the way people use office space. “People will not stop working, they are just changing the way they work,” McGibbon explained.
A new report from Green Street Advisors has suggested that the new supply in office space will mean it will be increasingly harder in the coming years for landlords to increase rent, a prospect that investors will have to take into consideration.
McGibbon said TH Real Estate is taking an analytical approach to such changes, so that it can best predict where the next gentrified areas might be, for example.
Eran Polack, CEO and co-founder of HAP Investments, warned: “Investors are increasingly not just looking towards return, but also self-preservation.”
McGibbon added: “You have to pick your stock. If you don’t stay ahead of the trend, you will get hurt.”
This kind of adaptability is also evident in India, where investors are being invited to develop millions of homes over the next five to seven years, and to create dozens of ‘smart cities’.
The ambitious plans, unveiled at the conference, are an attempt to encourage international investors into the country’s potential $2 trillion real estate sector, through smart, affordable developments.
A change in government attitude has seen sharp reform of regulations, with the aim of attracting global investors.
A change in attitude towards investment was required in order to make this change, but there should also be a change in the capital is deployed if investors are to make the most of opportunities in the country. Girish Grover, CEO at Turnit Capital, said: “Execution is the biggest challenge in India at the moment.” REIT
Institutional real estate investors need to embrace the new and unusual if their strategies are going to remain strong, heard attendees of MIPIM 2017
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AXA Investment Managers (IM) - Real Assets has carried out a number of promotions within its asset management and transactions team in France, with immediate effect.
Jérôme Delaunay has been promoted to head of asset management and transactions for France, reporting to Nathalie Charles, head of asset management for Southern Europe.
Previously, Delaunay was head of asset management for France.
Xavier Ramette will take on Delaunay’s previous position, having served as deputy head of asset management for France.
Antoine Mesnage has become head of investments for France, reporting to Laurent Jacquemin, European head of transactions. Emilie Jaskula takes on responsibility for asset disposals for France, reporting to Delaunay.
Comings and goings at AXA Investment Management, Deutsche Bank and more
According to AXA IM - RE, the appointments have been made to help meet with clients investment objectives in the French market.
Charles said: “In a competitive market environment, we remain focused on growing our managed portfolio in France through selective investment and active asset management.”
Madison International Realty has named two new co-chief investment officers in Carey Flaherty and Derek Jacobson.
The pair, who both previously held the position of managing director, will expand their roles and take on responsibility for enhancing Madison’s market relationships.
Flaherty has been with the company for over 13 years, working across Madison’s platform, including the global portfolio, and most recently as head of US investment.
Industry Appointments
Industry Appointments
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Prior to this, Flaherty worked at Deutsche Bank, where he analysed real estate private equity investments.
Jacobson joined Madison in 2004 and has been responsible for overseeing the company’s European activities.
He has also worked across Madison’s other non-US markets on all aspects of financial analysis. Previously he worked for Taurus Investment Holdings as a financial analyst.
Ronald Dickerman, founder and president of Madison, said: “I am delighted by the recognition we are affording these two talented executives. They each have spent over a decade with Madison and are keepers of the key measures of our strategy that deliver consistent and differentiated returns in the prime property sector and allow us to serve additive roles with our institutional partners.”
Madison International Realty has also promoted Matthias Cordier to the position of head of investment in Germany.
Cordier will be responsible for the sourcing, underwriting and execution of Madison’s equity transactions in Germany, Austria, Switzerland, and parts of Southern Europe.
He will also deal with the investments for the firm’s newest fund, Madison International Real Estate Liquidity Fund VI, which has nearly $1.4 billion of commitments globally.
Having joined the firm in 2011, Cordier is based in Frankfurt and liaises closely with the London and New York offices.
Ronald Dickerman, president of Madison International Realty, said: “Matthias Cordier has significant experience and a proven track record in sourcing, structuring, and closing transactions to provide joint venture equity and replace existing capital partners in Class-A real estate transactions.”
JLL has appointed Neil Murray as CEO of its corporate solutions business in EMEA.
Murray will be responsible for leading operations in the region, helping businesses achieve their goals through JLL’s real estate strategy and technology services.
He joins from Sodexo, where he was CEO of corporate services and regional chair for the UK and Ireland.
Guy Grainger, CEO of JLL in EMEA, said: “We are in the business of helping people achieve their ambitions and investing in the best talent is key to ensuring we live up to that. We are excited to have Neil Murray take the helm of our corporate solutions in EMEA.”
Murray said: “The impact of technology and an increasingly competitive war for talent are transforming the type, location and size of real estate that companies require, as well as how they monitor and manage it.”
Commercial investment bank George Smith Partners has named Jonathan Lee and Shahin Yadzi as co-managing directors and principals as part of a new leadership structure.
The pair, who have both been with the company for over ten years, will be responsible for leading the firm’s growth and business development, and for overseeing corporate operations.
They will work with the current managing team, including co-principal Bryan Shaffer and co-founders Gary Tezner, Steve Bram and Gary Mozer.
Lee joined George Smith Partners as an analyst in 2005 and was promoted to principal in 2015. Prior to this he was a financial analyst at MHW Development.
Yadzi, who joined the firm in 2007, became the youngest principal in the company’s history when he was promoted in 2015.
He previously worked as a business development officer at First Republic Bank.
Lee said: “We are poised to grow to an even higher level of activity while upholding our strict standards of excellence, allowing us to attract and retain the best employees and clients.”
Yazdi added: “This is the time to grow, and we have the right team in place to do just that.” REIT
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