While France's real estate market has been insulated from the worst of the housing crash, the mood entering the New Year is subdued, as even prime property in the Alps have seen prices plunge. At the same time, as inflated values drop buyers are finding bargains, and the outlook is especially optimistic for the revitalized Marseille region, and for vacation property favorites Normandy and Brittany. See the following article from Property Wire for more on this.
France real estate
Nice, France
The French property market is bracing itself for a tough year ahead in 2010 but real estate experts do not expect a sudden recovery despite prices showing signs of stabilizing.
Although the global economic downturn has made the last 18 months hard for the real estate industry, France has benefited from not having an overpriced market and a system that is more cautious and less gung-ho in terms of lending.
It hasn’t seen the kind of boom and bust that has affected its neighbors in Spain and Britain.
Thursday, January 14, 2010
Wednesday, January 13, 2010
The Painful Education of Real Estate Scion Rob Speyer
Rob Speyer showed little interest in his family's real estate business until his dad considered buying Manhattan's Rockefeller Center in 1995 for $1.2 billion. Intrigued by plans to revitalize the art deco complex, Speyer, then 26, left his job at the New York Daily News and joined Tishman Speyer, the firm his father founded with Robert Tishman in 1978. "I caught the bug," he says. "It was really hearing about that transaction that flipped the switch in my head and made me say: 'I want to learn this business.' "
Some 19 months after being named co-CEO with his dad, Rob Speyer is learning how to weather a commercial real estate rout. At least four big deals made by the firm as property prices peaked are unraveling. Stuyvesant Town and Peter Cooper Village, the Manhattan apartment complex that Tishman Speyer and BlackRock Realty bought for $5.4 billion in 2006, is on the verge of default and worth just $1.8 billion, according to credit rating company Fitch. "The overriding thing in real estate is timing," says Peter Hauspurg, chairman of Eastern Consolidated Properties, a real estate brokerage. "No matter how strong your skill sets are, if you buy at the wrong time, there's no way you can make it work out."
Some 19 months after being named co-CEO with his dad, Rob Speyer is learning how to weather a commercial real estate rout. At least four big deals made by the firm as property prices peaked are unraveling. Stuyvesant Town and Peter Cooper Village, the Manhattan apartment complex that Tishman Speyer and BlackRock Realty bought for $5.4 billion in 2006, is on the verge of default and worth just $1.8 billion, according to credit rating company Fitch. "The overriding thing in real estate is timing," says Peter Hauspurg, chairman of Eastern Consolidated Properties, a real estate brokerage. "No matter how strong your skill sets are, if you buy at the wrong time, there's no way you can make it work out."
Saturday, January 9, 2010
pbb Deutsche Pfandbriefbank provides €42,5m investment financing for Paris office building to Invesco Real Estate
Germany/France - pbb Deutsche Pfandbriefbank has provided a medium term € 42,5 million investment financing facility for the acquisition of an office building located 148 rue de l’Université in Paris, France.
Invesco Real Estate, acting as Asset and Investment Manager, completed the acquisition on behalf of a US discretionary Fund. This transaction was signed on 30 December 2009.
The 10,300 sq m prime Class A office building is located in the heart of 7th district, on the left bank of the river Seine, close to Quai d’Orsay and Les Invalides. The property was completed in 2003 and is partially let to tenants with strong covenants. The building has 1,600 sqm average storey area, and its letting outlook is strong.
Invesco Real Estate, acting as Asset and Investment Manager, completed the acquisition on behalf of a US discretionary Fund. This transaction was signed on 30 December 2009.
The 10,300 sq m prime Class A office building is located in the heart of 7th district, on the left bank of the river Seine, close to Quai d’Orsay and Les Invalides. The property was completed in 2003 and is partially let to tenants with strong covenants. The building has 1,600 sqm average storey area, and its letting outlook is strong.
Thursday, January 7, 2010
Citadel invests €33 million in Paris
France - Citadel (CLS Holdings plc) has acquired an office building in the Rueil (92) Business district, close to Paris’ La Défense, from Corio for €33 million. International real estate advisor Savills represented the vendor.
The 7,357 sq m (79,192 sq ft) office building is let in its entirety to corporates including Veolia Environment and Geostock.
Pascal Rupert, director of investment at Savills Paris office, says: “Rueil Seine is an important business district which attracts major multi-national occupiers. There were just two investment deals carried out in 2009 in this area, and this transaction was the largest.”
La Société Générale provided financing of €21.7 million.
The 7,357 sq m (79,192 sq ft) office building is let in its entirety to corporates including Veolia Environment and Geostock.
Pascal Rupert, director of investment at Savills Paris office, says: “Rueil Seine is an important business district which attracts major multi-national occupiers. There were just two investment deals carried out in 2009 in this area, and this transaction was the largest.”
La Société Générale provided financing of €21.7 million.
Tuesday, January 5, 2010
Appeal winner: Briatore says "I did it for Renault"
I did it for Renault"
Today the Tribunal de Grande Instance in Paris, France has decided in favor of Flavio Briatore and Pat Symonds.
Former Renault team principal Briatore and director of engineering Symonds had both taken their case to the French court in an attempt to overturn the ban the Formula One's governing body, the Federation Internationale de l'Automobile (FIA), had imposed on them after the Renault crash-gate scandal. The race-fixing scandal also involved young driver Brazilian Nelson Piquet, who crashed his Renault deliberately to cause the deployment of the safety car during the Singapore Grand Prix in 2008, which resulted in a win for the other Renault driver
, Spaniard Fernando Alonso, currently employed by the Ferrari team.
Today the Tribunal de Grande Instance in Paris, France has decided in favor of Flavio Briatore and Pat Symonds.
Former Renault team principal Briatore and director of engineering Symonds had both taken their case to the French court in an attempt to overturn the ban the Formula One's governing body, the Federation Internationale de l'Automobile (FIA), had imposed on them after the Renault crash-gate scandal. The race-fixing scandal also involved young driver Brazilian Nelson Piquet, who crashed his Renault deliberately to cause the deployment of the safety car during the Singapore Grand Prix in 2008, which resulted in a win for the other Renault driver
, Spaniard Fernando Alonso, currently employed by the Ferrari team.
Sunday, January 3, 2010
CORRECTED - Icade to buy a Morgan Stanley real estate firm
PARIS, Dec 23 (Reuters) - French-based Icade (ICAD.PA) will buy Compagnie la Lucette (MDLL.PA), another real estate firm, from Morgan Stanley (MS.N) to create a entity with a portfolio of over 5.7 billion euros ($8.2 billion).
Icade will offer two of its shares plus 32.50 euros for 21 Lucette shares in the two-stage transaction.
Initially, Icade will buy a 35 percent stake in Lucette for 9.61 euros per share, or 87.6 million euros. In the first quarter it will acquire another 59.5 percent in exchange for shares that will give the Morgan Stanley fund a 4.5 percent stake in Icade.
This will make Morgan Stanley the second-biggest stakeholder in Icade after state-owned CDC.
Icade will offer two of its shares plus 32.50 euros for 21 Lucette shares in the two-stage transaction.
Initially, Icade will buy a 35 percent stake in Lucette for 9.61 euros per share, or 87.6 million euros. In the first quarter it will acquire another 59.5 percent in exchange for shares that will give the Morgan Stanley fund a 4.5 percent stake in Icade.
This will make Morgan Stanley the second-biggest stakeholder in Icade after state-owned CDC.
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