1. South Korea: Hotel firm acquires distressed Seoul resort
Hanwha Hotels & Resorts, a division of South Korean conglomerate Hanwha, has acquired Paraspara Seoul, a distressed resort north of the capital for 30 billion Korean won or about $21.7 million.
The sale came after a tragic fire at another hotel and a developer’s subsequent liquidation, with the property selling at a steep discount to a previously assessed market value of $434.5 million, according to regional media reports. Hanwha acquired a 100% stake in the Seoul property from Bukhansan Resort, an affiliate of developer Samjeong Co., which ceased operations after it was unable to survive fallout from a February fire that killed six at another of its resorts in Busan, South Korea.
2. UK: Government considers new tax on homes
Chancellor of the Exchequer Rachel Reeves is considering options for introducing new taxes on higher-value homes in this year’s United Kingdom national budget, a move that some analysts said could further suppress an already soft market for home sales.
Changes under discussion include eliminating the current exemption from capital gains taxes for the sale of primary residences above a certain price threshold still to be determined. According to The Times of London, higher-rate taxpayers would have to pay 24% of the value of any gain when selling, while basic-rate taxpayers would pay 18%.
3. France: Investor buys Italian outlet centers from Blackstone
French investment firm Frey acquired three premium retail outlet centers in Italy from funds managed by Blackstone in one of the region’s largest retail deals of the year, as the group headed by Antoine Frey continues its European expansion.
The €410 million transaction is part of Frey’s €650 million partnership with investment firm Cale Street, targeting investment in premium outlets throughout Europe. Cale Street was founded in 2014 in partnership with the London office of the Kuwait Investment Authority, founded in 1953 as one of the world’s first sovereign wealth funds.
4. Germany: Retail property owner reports rebound in values
Investment firm Deutsche Euroshop has slightly upgraded values for its German retail centers, after years of declining valuations.
Among Germany’s largest shopping center investors, the Hamburg-based company reported annual market value gains up to 3.6% for some of its properties in the latest quarter, though there were still others with declining valuations. Deutsche Euroshop’s total portfolio posted an annual valuation gain of €10.3 million, compared with a loss of €13 million a year earlier, aided by a 0.5% increase in rents.
5. Canada: British Columbia leaders reject call to ease foreign buyer ban
British Columbia provincial leaders rejected a call by Vancouver’s largest developers for the government to loosen restrictions on foreign investment in real estate as the country grapples with a housing crisis. Executives with Beedie Living, Bonnis Properties, Polygon and more than 20 other Vancouver-based real estate firms asked the B.C. government to reconsider its tax on foreign buyers, and for the federal government to ease rules banning those investors from purchasing residential property in Canada.
“I agree that we need more homes for people, but we’re not looking at this,” B.C. Housing Minister Christine Boyle said in an interview on CDC Radio. “I don’t want to go back to the wild west days of foreign investment leaving condos and neighborhoods empty all over and ratcheting up the price of housing.”
6. US: New York office deals highlight AI’s eastward shift
The artificial intelligence boom propping up office markets along the West Coast is trending eastward as fast-growing startups quickly scoop up growing blocks of New York space.
A string of recent expansions among companies such as Tempus AI, Sigma, Harvey AI and Synthesia underscore the sector’s center-stage role in the national office market recovery. While much of the industry has established roots in tech-concentrated hubs such as Silicon Valley and San Francisco, their demand and appetite for space has spilled into other major markets, such as Manhattan.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.