Oaktree/Columna agree £250m Euro investment pact

News

Philip Smith

04 December 1998

Sweden-based Columna, which invests in the UK through Criterion Properties, has linked up with Oaktree in Europe following the success of Oaktree/Criterion’s £60m British acquisition programme launched in February.

Aubrey Glaser, managing director of Criterion and president of Columna International said: “We see, particularly in Northern Europe, that there is a window of opportunity where by we are able to buy commercial properties yielding around nine and 10%, while the cost of borrowing is around 5%. This yield gap is extremely high compared to the recent past and gives us the chance for income and capital growth.”

The European partnership is set make its debut with the £50m purchase of six office properties in Holland and a retail investment near Dusseldorf, Germany, on a yield of around 9%, after landlord costs. The Dutch portfolio includes the largest office in Rotterdam, the 21,690 sq m (233,500 sq ft) Rotterdam Building, which includes Dow Benelux, Mitsubishi and ABN Amro among its tenants. Columna will finance around 30% of the deal.

By the end of this year, Glaser estimates that Columna will have spent more than £150m and acquired over 144,000 sq m (1.5m sq ft) in its own right and with partners such as Oaktree and Apollo over the last 18 months.

Oaktree and Criterion still have some £20m to invest in the UK under their current agreement. Criterion is targeting multi-let office buildings over 9,290 sq m (100,000 sq ft) with refurbishment potential, along the lines of its acquisitions in Cardiff, Bristol and Wembley.

Former Trafalgar House chief executive Sir Eric Parker and Michel Berges, the former chief executive of Generale Bank in Belgium, have joined the board of European Real Estate, a wholly-owned subsidiary of Columna, to oversee its expansion programme.

EGi News 4/12/98

Do you have a comment about this story? Send a note to the editor.

US fund manager Oaktree Capital Management is forming a joint venture with North European property specialist Columna that could see over £250m invested in office properties in Germany, Belgium, the Netherlands and Luxembourg. Sweden-based Columna, which invests in the UK through Criterion Properties, has linked up with Oaktree in Europe following the success of Oaktree/Criterion’s £60m British acquisition programme launched in February. Aubrey Glaser, managing director of Criterion and president of Columna International said: “We see, particularly in Northern Europe, that there is a window of opportunity where by we are able to buy commercial properties yielding around nine and 10%, while the cost of borrowing is around 5%. This yield gap is extremely high compared to the recent past and gives us the chance for income and capital growth.” The European partnership is set make its debut with the £50m purchase of six office properties in Holland and a retail investment near Dusseldorf, Germany, on a yield of around 9%, after landlord costs. The Dutch portfolio includes the largest office in Rotterdam, the 21,690 sq m (233,500 sq ft) Rotterdam Building, which includes Dow Benelux, Mitsubishi and ABN Amro among its tenants. Columna will finance around 30% of the deal. By the end of this year, Glaser estimates that Columna will have spent more than £150m and acquired over 144,000 sq m (1.5m sq ft) in its own right and with partners such as Oaktree and Apollo over the last 18 months. Oaktree and Criterion still have some £20m to invest in the UK under their current agreement. Criterion is targeting multi-let office buildings over 9,290 sq m (100,000 sq ft) with refurbishment potential, along the lines of its acquisitions in Cardiff, Bristol and Wembley. Former Trafalgar House chief executive Sir Eric Parker and Michel Berges, the former chief executive of Generale Bank in Belgium, have joined the board of European Real Estate, a wholly-owned subsidiary of Columna, to oversee its expansion programme. EGi News 4/12/98 Do you have a comment about this story? Send a note to the editor.