1. Russia: Norwegian Hotelier Exits Country With 10-Property Selloff
Norway-based investor Wenaasgruppen has exited Russia with the sale of all 10 of its hotels in that country to Russian firm Cosmos Hotel Group for 200 million euros, or $211 million.
The deal was concluded between subsidiaries Wenaas Hotel Russia AS and Cosmos’ wholly owned division Cosmos Northwest, according to a statement from Cosmos’ parent company Sistema, a Russian investment firm. Both sides first agreed to the deal on Feb. 1, though neither commented immediately on the transaction’s conclusion.
2. UK: Economy Deemed ‘On the Right Track’ Amid Budget Constraints
The United Kingdom’s economy is “on the right track” again and will not now enter a technical recession despite recent turbulence in financial markets, Chancellor of the Exchequer Jeremy Hunt said in his March 15 Budget address.
The real estate sector will have found few standout measures in the government’s key economic and policy announcement, with talk at the Mipim conference in Cannes focused far more on the implications of the growing banking crisis. The Budget speech did little to shore up confidence in financial markets as the fallout from the collapse of the U.S.-based Silicon Valley Bank has spread to some European banks.
3. France: REIT Sells European Healthcare Assets
Real estate investment trust Icade signed an agreement with investment firm Primonial to sell Icade’s stake in several European healthcare properties in a deal estimated at €2.6 billion.
Officials of Icade, which has a healthcare subsidiary that owns nearly 150 hospitals, clinics and nursing homes across Europe, said the Paris-based company sought to raise funds to finance growth of its other real estate activities in other categories. In 2022, it attempted to float its healthcare subsidiary on the stock market but abandoned the operation.
4. Germany: Secondary Markets Expected To Lead Office Rent Hikes
Regions of Germany considered to be secondary investment markets, including Mainz and Leipzig, are expected to lead the country for office rent increases in coming years despite recently rising vacancy rates, according to analysts at DZ HYP.
The banking firm’s forecast calls for annual rent increases of 3.2% this year in Mainz and 2.9% in Leipzig, based on a study of 19 regions. The nation’s 12 secondary or “B cities” are expected to average 2.2% rent growth in the coming year after 3.6% growth in 2022, with the seven largest investment regions on track for 3.7% average growth, down from 8.6% growth in 2022.
5. Canada: Volkswagen Picks Ontario for Its First Electric Vehicle Battery Plant Outside Europe
Volkswagen selected a site near London, Ontario, for its first electric vehicle battery plant outside of Europe, part of a wider $193 billion effort to boost the automaker’s standing in the fast-growing electric vehicle market.
VW did not disclose the estimated value or specific location of its planned battery factory in St. Thomas, Ontario, about halfway between Toronto and Detroit. The plant is expected to begin production in 2027, according to the Germany-based car manufacturer.
6. US: Apartment Rents Surge as Vacation Rentals Reduce Supply
Record growth in apartment rents in some of the biggest U.S. metropolitan areas coincided with more short-term rental listings, renewing concerns about housing affordability as more property owners cater to travelers rather than long-term tenants.
Before the pandemic, cities around the country had put tougher regulations in place to control where short-term rentals could exist to limit disruptions from vacationing tenants. Those regulatory efforts have been gaining new life in the past two years to address not only noisy vacationers, but the prospect that owners may be driving up home and rent prices for permanent residents.
This report was compiled from CoStar’s international news publications in the United States, United Kingdom, Canada, France and Germany.