1. United Arab Emirates: Dubai Firm Takes Full Stake in Paris Hotel
London-based private equity firm Henderson Park sold its stake in the 428-room Westin Paris Vendôme to Dubai Holding for an undisclosed sum that values the hotel at 650 million euros, or $658.4 million.
Dubai Holding said it has “acquired full ownership of the iconic Westin Paris Vendôme after acquiring Henderson Park’s stake in the property,” as the United Emirates-based investor expands its European investments. Terms of the deal were not disclosed.
2. UK: Warner Bros. Discovery Looks to Shed Large London Spaces
Media giant Warner Bros. Discovery hired brokerage JLL to market for sublease about 200,000 square feet of offices that it occupies at two London headquarters buildings, as media firms respond to consolidation and a global downturn in consumer and advertiser demand.
The decision comes after WarnerMedia and Discovery completed a merger last year. Welput owns the 134,000-square-foot offices at 98 Theobalds Road in Bloomsbury, which Warner Bros. Discovery occupies in its entirety on a lease running through 2034.
3. Germany: Investment Firm’s Offices Searched in Financial Inquiry
Police and prosecutor’s office personnel have searched offices of Vonovia, Germany’s largest residential real estate investment group, stemming from a probe of alleged financial crimes.
Several current and former employees of the Bochum-headquartered firm are accused of bribery, embezzlement and fraud. Prosecutors said they allegedly gave improper preference to certain subcontractors when awarding contracts and received money and non-cash benefits in return. The company is cooperating with authorities.
4. Canada: Cadillac Fairview Acquires Residential Holdings of US Firm
Cadillac Fairview, which manages the global real estate portfolio of the Ontario Teachers' Pension Plan, is acquiring the remaining stake it doesn't already own in Dallas-based Lincoln Property Co.’s residential division.
Toronto-based Cadillac Fairview's acquisition of Lincoln Residential comes after “a carefully planned transition” that started in 2019 when Cadillac Fairview first bought a 49% interest in the business to support its growing multifamily operations and investments in the United States, officials said in a statement. Terms of the deal were not disclosed.
5. France: Investor Braces For Tough Times Through 2024
A top executive of Paris-based investment firm Altarea anticipates a drop in income for 2023 due to the absence of major commercial transactions and a probable slowdown in housing sales, among other factors.
Conditions could last into 2024. “This inflection was bound to happen at some point,” said Alain Taravella, Altarea’s founding chairman. “Real estate is correlated to interest rates, which have turned around due to the macroeconomic phenomena we all know about. So values have to adjust.”
6. US: Amazon Pauses Second Phase of HQ2 Development
Amazon’s move to indefinitely pause construction on the second phase of its headquarters in Arlington, Virginia, could present a major red flag to developers who have flocked to the area in recent years.
The e-commerce giant is delaying work, amid dipping real estate values and pressures on tech companies, on 2.8 million square feet at PenPlace, a planned four-office development that would include the eye-catching, spiral-shaped Helix building, an Amazon spokesperson said. A groundbreaking was originally scheduled for early 2023, though the start date is now up in the air with the project on pause.
This report was compiled from CoStar’s international news publications in the United States, United Kingdom, Canada, France and Germany.