1. Spain: Madrid companies acquire hostel chain operator
Madrid-based conglomerate Dorsa Holding Group and boutique-hotel and hostels operator Room00 Group, also based in the Spanish capital, acquired 100% of the shares of TOC Hostels from owners Ignacio Catalán and Salvador Torrens for approximately €20 million or $22.1 million.
Room00 said in a statement that it is now the largest hostel chain in Europe, with 30 properties in operation and another 20 in the construction pipeline as it seeks to serve a growing and increasingly competitive hospitality category. With a presence now in its Iberian home market of Portugal and Spain, and also in Italy, Room00 has 1,360 rooms in operation and 900 in construction.
2. UK: Amazon plans major data center investment
Amazon Web Services said it plans to invest £8 billion over the next five years building, operating and maintaining data centers in the United Kingdom.
In a statement, the data subsidiary of the U.S. e-commerce and technology giant said its investment is part of a long-term commitment to support growth and productivity across the country and is projected to contribute £14 billion annually to the U.K.’s total gross domestic product. The investment is expected to support an average of more than 14,000 full-time equivalent jobs on an annual basis at U.K. businesses that are part of the AWS data center supply chain, including construction, facility maintenance, engineering and telecommunications positions.
3. France: Brookfield expands logistics profile
Global investment firm Brookfield has acquired four logistics properties in France representing about 155,000 square meters, or nearly 1.7 million square feet, as the company looks to expand its presence in Europe’s high-demand warehouse category.
Officials of the Toronto-based company said the buildings are strategically located on major traffic routes and will be managed by Brookfield’s French logistics platform, Castignac, which has more than 25 assets under management and projects valued at over €1 billion. Brookfield Senior Vice President Dan Benhamou said the company continues to see strong demand for large-scale logistics properties as tenants grow their supply chains in Europe.
4. Germany: Garbe teams with BlackRock on industrial venture
German investment firm Garbe Industrial Real Estate formed a joint venture with American private equity giant BlackRock to build up a portfolio of logistics and other commercial properties, primarily in Germany and France.
Officials said the joint venture acquired a site in Germany spanning about 200,000 square meters in Salzgitter, Lower Saxony, with plans calling for a 63,000-square-meter industrial building to be developed. A plot of land was also acquired near Rennes in France, as the venture plans to construct a 27,000-square-meter industrial building. Financial terms were not disclosed for the venture, which came after a similar development partnership formed in July by Garbe with Canadian investor Brookfield.
5. Canada: British Columbia caps residential rent hikes
The British Columbia government’s decision to set a 3% limit on residential rent increases next year has wide-ranging implications for the real estate industry, with some multifamily investors and landlord groups arguing that the cap is too low to maintain and operate a rental property.
In addition to reducing the province's rent increase cap for existing tenants to 3% in 2025, based on the rate of inflation, from 3.5% this year, the provincial moves announced by Housing Minister Ravi Kahlon include the introduction of a $400 renter’s tax credit for low- and medium-income renters. “At a time when we know renters are struggling, our rent cap protects renters against unfair rent hikes, while allowing landlords to meet rising costs so that rental homes can stay in B.C.’s housing market,” Kahlon said in the statement.
6. US: Luxury retailers boost real estate footprints
Luxury retailers haven’t pulled back on their U.S. expansions in an uncertain economy, though a lack of available retail space is prompting some to buy real estate to secure store locations and to open shops at select high-end malls.
Upscale chains leased over 360,000 square feet between July 2023 to July this year in the United States, according to a report on luxury real estate from brokerage JLL. Following explosive growth coming out of the pandemic, the luxury retail category has remained resilient despite the current macroeconomic headwinds, with U.S. luxury retail sales reaching over $75 billion last year, according to JLL.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.