White Estate Investments is buying 35 office buildings, 11 industrials and 2 parking garages from listed European property company Corio for €650 million ($1 billion).
White Estate, which has offices in Amsterdam and Poland, has agreed to buy the package five months after Corio approached potential buyers as it seeks to concentrate on retail property. Corio has deferred a sale of assets in France, according to its statement.
The deal is significant for White Estate because it currently has €450 million of assets under management – less than the value of assets in the Corio package.
The firm targets the Dutch real estate market as well as the Central and Eastern European region and manages a number of investment vehicles including the NW Office fund, an opportunity vehicle. That fund was established in November last year when White Estate formed a venture with NIBC European Real Estate fund I. NIBC is a Netherlands’ based merchant bank with offices in The Hague, London, Brussels, Frankfurt, New York and Singapore.
The Dutch assets will be transferred to White Estate Investments on September 30, said Corio. It also revealed the buyers have provided a bank guarantee for approximately 5 percent, and that the price excluding transaction costs is 3 percent higher than the adjusted 2006 value of €624 million.