BRUSSELS-A joint venture of JER Partners and Catalyst Capital has agreed to acquire a portfolio of eight mixed-use properties from Sweden's publicly held Kungsleden AB for euro $90.5 million ($120 million). The properties consist primarily of office space but with some retail and residential components.
The largest of the properties is the 55,000-square-meter Manhattan Centre, an office tower and shops that were developed in the 1970s and are scheduled for a renovation. The JV partners say the renovation will be desgined to increase occupancy levels and improve longer-term performance.
The transaction, expected to close in January, will represent the first European venture between Catalyst Capital and JER, who have acquired assets together in other markets, according to Fabrice de Clermont-Tonnerre, a partner at Catalyst Capital. JER Partners has been active in Europe since 1995, and Catalyst Capital is a Europe-based commercial real estate investment, asset management and development group.
The London-based European arm of JER Partners is a unit of McLean, VA-based J.E. Robert Cos. JER has invested in the United Kingdom, France, Germany, Italy, Sweden and Finland. Among its deals have been six investments in regional offices in the United Kingdom and the acquisitio of the Great Eastern Hotel and a site for residential development on the River Thames in Greenwich, London.
The company's investments also include a hotel and an apartment building in Paris, an office portfolio and four residential portfolios in Germany, a portfolio of supermarkets in Sweden and a retail portfolio in Italy. Catalyst Capital has acquired assets throughout Europe for the past eight years, including its recent purchase of a portfolio of shopping centres in Italy.
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