1. Italy: Investment Firm Acquires Sardinia Hotel
Via its division Castello SGR, publicly listed asset management firm Anima Group has acquired Poltu Quatu, a mixed-use resort property on the Italian island of Sardinia, for €70 million, or $76 million, from Pulcini Group, a private family-run investment firm.
A statement said Milan-based Anima and Castello are planning to redevelop the hotel component of the complex including a 139-room hotel and 100 residential units. The new owner said it plans to increase its hotel ownership “to significantly grow its portfolio” that amounts to about €1 billion and consists of 32 properties with more than 4,000 rooms. Castello plans to partner with Marriott International to manage Poltu Quatu within its W Hotels brand.
2. UK: Tax Cut Budget Disappoints Commercial Property Industry
Chancellor of the Exchequer Jeremy Hunt said he was “unleashing people power” as he outlined the government’s tax and spending plans in a spring budget that disappointed those looking for announcements with major implications for commercial real estate in the United Kingdom.
The most relevant announcements for real estate were focused on changes to property capital gains tax, multiple dwellings relief and other reforms related to investment in major developments, including a commitment to life science and residential plans for London’s Canary Wharf. But analysts said there was little new in areas of most concern to commercial real estate, such as business rates and planning.
3. Germany: Investor To Redevelop Former Chocolate Factory
Logistics developer Panattoni plans to redevelop the former Stollwerck chocolate factory in Cologne, Germany, into an industrial campus after acquiring the 69,400-square-meter site from a local investor group.
Since the end of chocolate production in 2005, a 30,000-square-meter building on the property has been used as a last-mile logistics and business park, and there is land available to build an additional 14,500 square meters of rental space. The buyer plans to create a docking area spanning about 10,400 square meters to serve 10 rental units and is eventually looking to add another 30,000 square meters of rental space by the third quarter of 2027.
4. France: Logistics Property Market Nears Recovery
France’s logistics property investment market is showing signs of rebounding as interest rates stabilize, according to regional analysts.
Romain Nicolle, who is based in Lyon and heads brokerage Cushman & Wakefield’s logistics and industrial investment in France, said 2024 is off to a strong start after a lackluster 2023, when just €1.7 billion was invested in the category — down 67% from the prior year. “We are seeing major international investors returning to the French investment market, and they are mainly returning to the logistics market,” Nicolle said.
5. Canada: Court Replaces Builder of Troubled Condo Skyscraper Project
Alvarez & Marsal, the court-appointed receiver for a troubled 85-story tower under construction that's expected to be Canada’s tallest residential skyscraper, is replacing the project's general contractor and developer.
Toronto-based Skygrid Construction has been put in charge of completing The One in downtown Toronto, replacing the project’s original developer, Sam Mizrahi and his related companies. Construction started in mid-2017 on a planned 416 luxury condominiums and a hotel spanning 12 floors along with ground-floor retail. But the project once slated for completion in 2022 faced years of delays and other issues before going into receivership in October.
6. US: Silicon Valley Office Towers Sold at Steep Discount
An office building in downtown San Jose, California, changed hands for more than $100 million less than what it sold for in 2019, underscoring the struggle of the Silicon Valley city and the U.S. office market to regain momentum lost in the pandemic.
An organization with ties to retailer Shoe Palace CEO George Mersho paid $34.2 million for a two-building office property, according to documents filed with Santa Clara County. The price works out to about $105 per square foot, marking a 77% discount from the $141.3 million the 325,000-square-foot center traded for prior to the pandemic, according to public records and CoStar data. It is the second downtown San Jose office property to trade at a large discount in recent months.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.