BEATINTERNATIONAL ÄScotland's Big Deal
LaSalle Investment Manage- ment Kapitalanlagegesellschaſt mbH recently purchased two retail properties in Scotland for a total of £58.6 million or more than $91 million. What do they
have in common? Long-term leases. One store, in Glasgow's Style Mile district, is occupied by Nike, which has a 15-year lease with an initial rent of £1.3 million. T e other property, an eight-story mixed-use building in Edinburgh, has two tenants — New Look, a British fashion chain, and a Premier Inn Hotel — with 19-year-plus leases. T e purchases refl ect a net yield of 5.0 percent and 5.5 percent, respectively. T e investment fund is targeting well-located offi ce and retail properties with stable leases in Germany, France, and the U.K.
"Global multinational corporations are taking a longer view in terms of the
offi ce footprints in many of the growing emerging markets, signing longer-term leases and
willing to accept higher premium pricing for prime space in the downtown markets."
—CBRE Prime Offi ce Occupancy Costs
Markets to Watch
2011 Commercial Real Estate Returns 21.6%
Calgary, Alberta, Canada Cape Town, South Africa Sydney
New York London
Source: Investment Property Databank 0
5 6.0 10 15 20 25 11.2 9.9 8.6
¬ Despite Europe's economic woes, global investors continued to target select markets in the second quarter, according to Jones Lang LaSalle. Cross-border buyers and sellers were involved in 75 percent of 2Q12 transactions in
the U.K. and France, nearly 70 percent in Russia, and more than 50 percent in Germany, all exceeding the 40 percent
global average. London saw the most activity, including two portfolio sales — offi ce and specialty — totaling nearly $2 billion. Overall, Europe saw an increase in inter-regional deals in 1H12, compared with a marked slowdown in cross-border investment in the Americas and Asia Pacifi c regions.
and 221st in 2Q11 and 1Q12, respectively. T e city received a boost from major offi ce and retail deals, including the $1.4 billion sale of the Guangzhou International Finance Centre and the $316 million sale of the Rock Square shopping center.
¬Guangzhou, China, also experienced an investment infl ux in 2Q12, making its fi rst appearance on JLL's top 10 "Most Active Cities" list, placing No. 6 aſt er ranking 127th
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September | October | 2012
Commercial Investment Real Estate