UBM Realitaetenentwicklung AG, a Vienna-based developer, is considering selling European commercial properties valued at as much as 900 million euros ($990 million).
The buildings, which include hotels and offices in Germany, Austria, France and the Netherlands, may be sold as a portfolio or separately, Chief Executive Officer Karl Bier said by phone. The company is seeking to take advantage of high demand for real estate in Europe from investors trying to boost returns amid low interest rates, he said.
Pension funds, insurers and other investors are buying European properties at the fastest pace ever in a hunt for yields amid a global liquidity glut. Real estate valued at 55 billion euros changed hands in the first quarter, 31 percent more than a year earlier, according to CBRE Group Inc.
“There’s demand for portfolios especially because investors can close one big deal in a single step,” Bier said. “This is an attempt by us to see if there’s demand for more than one asset class across several countries.”
The properties are a mix of completed buildings and projects in development, said Bier.
“In the past, investors wanted to always buy completed buildings, but now they’re interested in stepping in earlier in the process,” he said.
UBM has appointed Savills Plc’s German unit to manage the sale.