Benson Elliot and GCI complete 22,000 sqm pre-let of La Défense s Latitude
Hines appoints WeWork executive Ronen Journo as European Head of Operations and Senior Managing Director
Covid-19 pounds European real estate in Q3 2020 as deals fall 43% RCA
Accor s revenue down 68.7% in Q3 2020
A joint venture between Benson Elliot, Générale Continentale Investissements (GCI), Canadian insti- tution Alberta Investment Management Corporation (AIMCo) and 21st Capital has pre-let the entirety of its Latitude office building to Sopra Steria. The
European leader in consulting, digital services and software development has signed a nine-year lease, and will take occupancy in Q4 2021. Due to be com- pleted in early 2021, Latitude will offer 22,000 sqm of office space in the heart of the La Défense business district.
International real estate firm Hines has appointed Ronen Journo as European Head of Operations and Senior Managing Director. Based in London and Paris, he will be charged with developing a comprehensive offering to tenants and landlords across Europe, wor- king closely with the firm s Houston-based Innovation Officer, Charlie Kuntz. He joins Hines from WeWork, where he was Senior Vice President for Enterprise and Workplace, hea- ding the firm s property management opera- tions and relationships with corporate tenants across Europe.
In the first 9 months of 2020, take-up in the six main regional office markets amounted to 530,000 sqm, down 42% compared with the same period in 2019, reports BNP Paribas Real Estate, and a -19% drop from the ten-year average. Unsurprisingly, it was the second quarter that was the most affected by the health crisis, with a 67% drop in transactions. In the third quarter, we saw a certain return to normal, but still a 25% drop compared to Q3 2019, comments Jean-Laurent de La Prade, Deputy Managing Director of BNP Paribas Real Estate Transaction France. On the investment front, only 1.4bn
was committed in regional offices after 9 months, down 39% on last year. This halftone performance follows a par- ticularly dynamic 2019 performance. Compared to the 5-year average, the market has only decreased by 7%. Lyon remains the leading regional market in terms of investment, with around 570m committed to offices. With less than 200m, Lille is in second place, thanks in particular to the 60m acquisition of the Campus W operation by the Voisin group. Rennes and Nantes are neck and neck for third place, with 98m and 97m invested in offices respectively.
Significant take-up and investment slowdown on France s regional office markets - BNP PRE
French hospitality group Accor s revenue in Q3 2020 came in at 329m, down 68.7% as reported and 63.7% like-for-like, due to the effects of the health crisis. Moreover, RevPAR fell by 62.8% over the period, a drop the group sees as a significant sequential improvement in the wake of a difficult Q2 (RevPAR down by 88.2%). By the end of September 2020, 90% of the group s hotels were open for business, or over 4,600 units. It was operating 750,135 rooms (5,121 hotels), with a pipeline of 208,000 rooms (1,192 hotels) running at 75% in emerging markets.
Total European real estate deal volume fell 43% in Q3 2020 compared with the same quarter of 2019, to 44bn, Real Capital Analytics s European Capital Trends Q3 2020 report shows, as the slump caused by the Covid-19 pandemic deepened. Transaction volume in the first nine months of this year was down 19 % to 172bn. Two quarters on from the start of the Covid-19 pan- demic in Europe and a clear hierarchy of investor demand has emerged, says Tom Leahy, Senior Director EMEA Analytics at RCA. Industrial, especially logistics assets, apartments, and grocery stores sit at the top of the table; in the middle are offices, where worries over rising vacancy and falling rents seem to be holding back some investors; and, down at the bottom are hotels and large swathes of the retail sector. Q3 transaction volume was around half the level seen a year ago in France, but investment activity in the French market was in line with Q2 2020, which is better than Europe as a whole. In Germany, Q3 2020 was the slowest period for deal-making since 2013 with the apartment sector 40% down on the five-year average, while quarterly office investment was at a seven-year low. In the UK, which has lagged well behind Germany in investment transaction volume for the first nine months of 2020, there was a rebound in regional pro- perty markets thanks to industrial sector deal activity, where just under £1.8bn was spent, mostly on logistics assets.
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