Archive for Uncategorized
One Chart Shows Why U.S. Housing Starts Are Poised to Surge
Posted by: | CommentsThe ratio of starts to sales has plummeted.
Despite the tailwinds of strong jobs growth and the vanguard of the millennial generation entering their prime homebuying years, developers have been strangely reluctant to break ground on new single-family homes in 2016.
This segment has seen so-called housing starts dip to a seasonally adjusted and annualized rate of 722,000 as of July, down from 765,000 at the end of 2015.
Neil Dutta, head of U.S. economics at Renaissance Macro Research, highlighted that the strength in new home sales relative to home starts suggests that construction activity is due to rise significantly in the year ahead…
A Trump Empire Built on Inside Connections and $885 Million in Tax Breaks
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Donald J. Trump, left, with Mayor Ed Koch, center and New York Gov. Hugh L. Carey, pointing to a rendering of what would become the Grand Hyatt Hotel, in June 1978. A crucial factor behind the hotel’s construction was 40-year tax break that has cost New York City $360 million to date.CreditAssociated Press
The way Donald J. Trump tells it, his first solo project as a real estate developer, the conversion of a faded railroad hotel on 42nd Street into the sleek, 30-story Grand Hyatt, was a triumph from the very beginning.
The Guess Corp. Launches Exclusive Department Store Chain
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Guess Private Merchant, concept design rendering
Durham, N.C.—The Guess Private Merchant Co., a subsidiary of The Guess Corp., will launch 40 private membership department stores over the next four years, offering exclusive merchandise and specialized service around the globe.
Membership will be limited to 10,000 individuals. To be eligible for membership, an individual must possess a minimum household net worth of $250 million. If approved by a membership committee, the individual will be required to pay an annual membership fee and will be issued a platinum plated membership card with full charging privileges and global access…
Troubled Developer Urbancorp Sells Projects to Homebuilders
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Court approves asset sales to Mattamy Homes unit, landlord
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Urbancorp projects include townhome sites, condominiums
Urbancorp, the Canadian residential developer that sought bankruptcy protection this year after defaulting on its Israeli debt, sold six of its properties to buyers ranging from local residential developers to a closely held company.
The deals, disclosed in court orders dated Sept. 15 approving the transactions, are the latest step in the restructuring Urbancorp initiated in April when filing for bankruptcy protection. Proceeds from the sale are aimed at paying back homebuyers and repaying debt, including the C$68 million ($52 million) owed to lenders including Toronto-Dominion Bank and Bank of Nova Scotia, and about C$90 million owed to architects and contractors…
A Sour Surprise for Public Pensions: Two Sets of Books
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Lincoln Anderson collecting sticky cards that trap California red scale, a citrus pest.CreditJaime Kowal for The New York Times
When one of the tiniest pension funds imaginable — for Citrus Pest Control District No. 2, serving just six people in California — decided last year to convert itself to a 401(k) plan, it seemed like a no-brainer.
After all, the little fund held far more money than it needed, according to its official numbers from California’s renowned public pension system,Calpers.
Except it really didn’t.
In fact, it was significantly underfunded. Suddenly Calpers began demanding a payment of more than half a million dollars…
A Template — or Not? Consortium Buys Troubled Aéropostale
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Aeropostale at Promenade Mall, Thornhill, Ontario (now closed)
New York—A consortium of shopping center giants General Growth Properties and Simon Property Group, along with Authentic Brands Group, has completed its $243 million acquisition of teen apparel and accessories brand Aéropostale.
By all accounts, the transaction saved Aéropostale, which filed for bankruptcy on May 4, from being sold for its assets. As things stand now, the chain will go forward with more than 400 stores in the United States and Canada and about 300 retail doors across Latin America, Europe, the Middle East and Southeast Asia.
China’s Failing Property Curbs Risk Bubble That May Hurt Economy
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New-home prices rose the most in more than six years in August
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Risk emerges in threatened bursting of property market bubble
China’s attempts to slow runaway home-price growth in major cities are showing little sign of success, stoking the threat of a housing bubble that could destabilize the economy.
New home prices rose the most in six years in August, jumping 1.2 percent from July, according to Bloomberg calculations based on government data. Home prices rose in 64 of 70 cities tracked by the government, up from 51 the previous month. Shanghai prices surged a record 4.4 percent for a year-on-year gain of 31 percent, while Beijing’s climbed 24 percent from a year earlier…
Real Risks in Big Banks’ ‘Merchant Banking’ Activities
Posted by: | CommentsIn a recent Deal Professor column, Steven Davidoff Solomon gives the Federal Reserve a symbolic “F” for failing to justify its recommendation that Congress repeal existing statutory provisions allowing big Wall Street banks to run in-house private equity funds.
Of course, if the Fed were writing an exam on a typical question of basic corporate law, then it might make sense to defer to a corporate law professor’s judgment on its merits. But this is a question of banking law. And, on a banking law exam, his critique of the Fed would not pass muster. Let me explain…
Wells Fargo Risk Officer Takes Leave on Eve of Senate Hearing
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Claudia Russ Anderson began unpaid leave Monday, lender says
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Anderson was replaced in August by Albrecht, spokeswoman says
Wells Fargo & Co., facing calls to hold senior managers accountable for a scandal over unauthorized customer accounts, said a top risk manager has taken a leave of absence on the eve of Chief Executive Officer John Stumpf’s testimony before the Senate Banking Committee.
Claudia Russ Anderson began a six-month unpaid leave on Monday, becoming at least the second senior Wells Fargo executive to depart the community banking division since July. Anderson, 58, was head of risk for the unit, which houses the retail business, and was succeeded in August by Vic Albrecht, 57, Richele Messick, a bank spokeswoman, said in a phone interview…
Colliers Closes Sale of Pennsylvania Lottery HQ Building
Posted by: | CommentsThe property changed hands for almost $15 million.
1200 Fulling Mill Road, Middletown, Pa.
Middletown, Pa.—Colliers International recently closed on the $14.9 million sale of Pennsylvania Lottery’s headquarters building in Middletown.
Larry Kostelac, William Aiello, George Lulos, Bob Cotle and Darrin Kennedy of Colliers International led the marketing efforts, representing the buyer, real estate investment firm Boyd Middletown DGS LLC.
The 136,000-square-foot property sits on 12.5 acres and is located at 1200 Fulling Mill Road. The building has a long-term lease with the state until 2022, offering the possibility of a five-year renewal. The asset offers 40,000 square feet of warehouse and approximately 97,000 square feet of office space…
Wells Fargo’s CEO Defends His Main Street Legacy to Congress
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Wells Fargo CEO has worked to separate bank from Wall Street
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Sen. Brown says Wells didn’t do the right kind of management
John Stumpf tried to quit Washington’s Wall Street club.
Last year the long-time leader of Wells Fargo & Co., who sees himself as the quintessential banker to Main Street, wanted to underscore his firm’s distance from the Goldmans and Morgans of global finance, according to people familiar with his thinking. So he resigned from the Financial Services Forum, the industry’s exclusive inside-the-Beltway lobbying association made up of the largest bank CEOs…
Money Is Pouring Into Property Deals Banks Won’t Touch
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Investment firms seek record funds for real estate debt
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OCC, Fed raise concerns after doubling of prices in six years
Heightened scrutiny of U.S. commercial real estate lending is paving the way for lightly regulated investors to gain a bigger toehold in lucrative deals.
Private funds are seeking a record $32 billion for commercial-property debt as buyout firms, real estate investment trusts and hedge funds expand lending. These companies, which typically charge higher interest rates, can move quickly on large loans that may be seen as too speculative for banks.
Duke Realty Signs 1.4 MSF Savannah Deal
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Savannah Port
Savannah, Ga.—Duke Realty Corp.’s standing as the largest industrial/warehouse owner in Savannah gets reinforced with the industrial and medical office REIT’s agreement to develop a build-to-suit distribution center for Floor & Decor. The hard surface flooring retailer will lease the 1.4 million-square-foot property from Duke Realty.
Confidence Among U.S. Homebuilders Climbs to an 11-Month High
Posted by: | CommentsConfidence among U.S. homebuilders rose to an 11-month high in September, indicating the housing market will continue to advance, according to data Monday from the National Association of Home Builders/Wells Fargo.
Key Points
- Builder sentiment gauge increased to 65 (forecast was 60) from a revised 59; readings greater than 50 indicate more respondents reported good market conditions
- Gauge of prospective buyer traffic rose to 48, the highest since November, from 44
- Measure of six-month sales outlook climbed to an 11-month high of 71 from 66
- Index of current sales rose by 6 points to 71, the best reading since October 2005…
Odd Lots: Space Robots Are Helping Hedge Funds Invest
Posted by: | CommentsHigh finance.
Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.
The most valuable commodity for investors is information, and hedge funds and asset managers are going to great lengths to get it — even to outer space. This week on the Odd Lots podcast, Tracy Alloway and Bloomberg View columnist Matt Levine are joined by James Crawford, a former NASA scientist who founded Orbital Insight Inc…
Odd Lots: Space Robots Are Helping Hedge Funds Invest
Morning Agenda: Liquid Alts, a $5 Trillion Comeback, Deutsche Faces a Fine
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Clifford Asness’s quantitative investment firm AQR Capital Management has become the biggest manager of liquid alts. CreditPatrick T. Fallon/Bloomberg
Mutual funds that mimic the strategies of hedge funds — the so-called liquid alternatives sector — were the hottest investments a few years ago. And, despite lagging returns and setbacks at several funds, retail investors have continued to stick with them.
This could all be about to change, though.
In the last five months, investors have pulled $5.1 billion from liquid alts. Even the market leader has been unable to shake off lackluster performance…
K&D Group Buys Cleveland Tower for $38M
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Terminal Tower in Cleveland
Cleveland—Forest City Realty Trust Inc. has announced the sale of the 52-story Terminal Tower to an affiliate of K&D Group. The 597,000-square-foot office building sold for $38.5 million.
Located at 50 Public Square in downtown Cleveland, Terminal Tower has been Forest City’s headquarters since 1997 and will continue as such until the middle of 2018. As the largest tenant, Forest City occupies roughly 250,000 square feet on the building’s lower floors, space which K&D intends to convert into 293 apartments. According to The Plain Dealer, the company will compete for a large state tax credit aimed at restoration and renovation of historic buildings…
BNY Mellon CEO: Bank Embraced Criticism From Activist Investors
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Cost-cutting program has improved profitability, CEO says
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U.S. Federal Reserve should raise benchmark rates soon
Bank of New York Mellon Corp.’s cost-cutting program has been effective and activist investors are appreciating measures taken to improve profitability, according to Chief Executive Officer Gerald Hassell.
“The active investors have now seen those improvements pull through our earnings, and our stock price has been reflecting it,” Hassell said in an interview with Bloomberg Television’s Haslinda Amin in Singapore on Saturday. “The trick is to embrace the criticism, adopt a program to really improve your company structurally and sustainably and show your investors that you can do it.”…
Wells Fargo Scandal Offers a Chance to Punish Big Bank Executives
Posted by: | CommentsThe Wells Fargo scandal puts size to a fresh regulatory test. Despite a settlement, the authorities aren’t finished with the bank’s fake-accounts scandal. Top executives at small lenders have been punished harshly in the past for misdeeds. If Wells Fargo executives escape any such fate, it could escalate tension over the accountability divide.
The bank, with headquarters in San Francisco and a $1.9 trillion balance sheet, is paying a $185 million penalty and has fired about 5,300 employees who were accused of opening more than two million fraudulent deposit and credit card accounts. Federal prosecutors have initiated an inquiry, and Wells Fargo’s chief executive, John Stumpf, has been summoned to testify before a Senate committee next week. Agencies including the Office of the Comptroller of the Currency, however, have yet to name any names…
Capri EGM Grabs Office Complex in Sacramento Area
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Zinfandel I & II, Rancho Cordova, Calif.
Sacramento—Capri EGM caps off a busy summer of acquisitions with the purchase of a two-building office property just outside of Sacramento in Rancho Cordova, Calif. The investment company bought the 175,000-square-foot mission critical corporate office campus, leased in its entirety to Blue Shield of California, from Strada Investment Group. According to Sacramento County records, the asset commanded just over $39.7 million.
Currency Hedging Bulges Thanks to ‘Flight From Zero,’ BIS Says
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Demand is driven by investors, companies seeking better rates
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Japanese life insurers among those seeking dollar assets: BIS
The ripple effects of global monetary easing just keep on coming.
Demand for currency hedging is increasing, indirectly spurred by a handful of central banks whose unprecedented policies are crushing interest rates in some the biggest economies, according to the Bank for International Settlements.
Senate Committee to Discuss Wells Fargo Scandal as Federal Reserve Meets
Posted by: | CommentsHere’s what to expect in the week ahead:
BANKING INDUSTRY
Senate to question Wells Fargo chief on sham accounts.
Wells Fargo’s chief executive, John Stumpf, will face questions on Tuesday from the Senate Banking Committee over the widespread creation of sham banking accounts and credit cards by bank employees trying to meet strict sales goals. Mr. Stumpf has said publicly that the sales were not the result of a flawed culture inside the bank. Committee members are expected to ask him why he and other top managers did not do more to stop the practices, which have gone on since at least 2013. Michael Corkery…
National Storage JV to Acquire $630M Portfolio
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Arlen Nordhagen, National Storage
Denver—National Storage Affiliates Trust, a Greenwood Village, Colo.-based REIT, has formed a joint venture with a major state pension fund advised by Heitman Capital Management LLC to acquire the 66-property portfolio of iStorage for approximately $630 million.
The portfolio contains about 4.5 million square feet of rentable space in over 36,000 storage units across 12 states and 24 markets. The portfolio is 86 percent occupied and will add four new states–New Jersey, Ohio, Pennsylvania and Virginia–to NSA’s holdings as well as provide significant growth in NSA’s top markets such as Florida and California…
Warning Indicator for China Banking Stress Climbs to Record
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Photographer: Johannes Eisele /AFP via Getty Images
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Credit-to-GDP ‘gap’ exceeds all other nations in BIS study
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China’s reading is its highest in data starting in 1995
A warning indicator for banking stress rose to a record in China in the first quarter, underscoring risks to the nation and the world from a rapid build-up of Chinese corporate debt.
China’s credit-to-gross domestic product “gap” stood at 30.1 percent, the highest for the nation in data stretching back to 1995, according to the Basel-based Bank for International Settlements. Readings above 10 percent signal elevated risks of banking strains, according to the BIS, which released the latest data on Sunday.
Brennan Investment Buys Industrial Park in Metro Chicago
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Woodlake Corporate Park, Lombard, Ill.
Chicago—Brennan Investment Group has acquired Woodlake Corporate Park, an industrial business park in Lombard, Ill.
Located near Interstate 355 Highway, within the East-West Tollway submarket, the property consists of seven industrial flex buildings totaling 262,697 square feet of available space. The properties are 30 minutes from O`Hare International Airport and 20 minutes from Chicago`s central business district, with easy access to 4-Way Interchanges at North Avenue and Roosevelt Road.
With New Mansion, Cartier Hopes to Goose Waning NYC Tourism Dollars
Posted by: | CommentsCartier uses its long list of celebrity clients to sell its baubles on all four floors of the newly renovated townhouse.
Cartier is reopening its flagship on New York’s Fifth Avenue after two and a half years of renovations. The restored landmark is a museum, as much a shop, celebrating the luxury jeweler’s past and paying homage to its celebrity clients.
“This mansion has been designed to attract people in and to allow them to become part of the family,” said Mercedes Abramo, Cartier’s North America chief executive officer and president, in an interview on Bloomberg Television. It is her hope that customers will feel at home when shopping at Cartier, despite its imposing location…
Why Do Wealthy People Auction Multimillion-Dollar Homes, Rather Than List Them?
Posted by: | CommentsHundreds of wealthy homeowners are taking the riskier route. Here’s why.
Count Spaur zu Flavon und Valer’s family had lived in its 80-room castle in the Dolomites for more than 650 years; having recently poured more than €10 million ($11.25 million) into its restoration, the count decided in 2012 that it was time to sell. And then the castle, which was priced at more than €30 million, languished unsold for four years…
Why Do Wealthy People Auction Multimillion-Dollar Homes, Rather Than List Them?
Gateway at UTC Adds to Tenant Roster
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Gateway at UTC, Hyattsville, Md.
Hyattsville, Md.—Town Center Wine & Spirits is the most recent business to join the Gateway at University Town Center, a multi-tenant retail property developed by ECHO Realty and The Bernstein Cos. in Hyattsville.
The 54,000-square-foot Gateway at UTC is located at the intersection of East-West Highway and America Boulevard. The property is part of University Town Center, a mixed-used development that includes office buildings, condominiums, restaurants and student housing…
Claire’s Misses Debt Payment as Lender Balks at Bond Swap
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Retailer faces default if interest isn’t paid by Oct. 15
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Chain posts quarterly loss, says credit lines are fully drawn
Claire’s Stores Inc. missed a bond payment deadline, leaving the troubled retailer owned by Apollo Global Management LLC 30 days to avert a default and possible bankruptcy.
The company missed $77 million of interest payments due Sept. 15 on some of its notes after one of Claire’s lenders declined to approve a bond exchange that makes up a key part of the chain’s turnaround plan, according to a regulatory filing. The company has a 30-day grace period to come up with the payment. Claire’s also needs the European lender’s consent to get cash “to fund its near-term debt service and other obligations,” the retailer said…
Wall Street Thinks It’s High Time to Monetize Pot
Posted by: | CommentsGood time to get in on the … what was I … ? Oh, the market, right. Good time to get in on the market.
Inside a Brooklyn ballroom, investors smoothed their suits and opened their iPads, preparing for a day of sizing up hungry entrepreneurs and impassioned lobbyists.
One after another, startup founders took to the stage, making their cases for a round of venture capital. There was a building materials manufacturer, a catering company and, as one would expect, the inventor of a vaporizer.
It was high time to monetize pot…
Wall Street Thinks It’s High Time to Monetize Pot
Lack of Planning Hampers Hanjin Shipping Bankruptcy
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The cargo ship Hanjin Rome sat offshore near Singapore on Sept. 9. The shipping company’s sudden bankruptcy has stranded the cargo and crew of several ships. CreditEdgar Su/Reuters
The Hanjin Shipping Company filed for bankruptcy in South Korea on Aug. 31, and sought recognition of that bankruptcy in the United States under Chapter 15 of the bankruptcy code, which governs such matters.
In the meantime, there has been apparent chaos as ships have been milling about off shore, stranding cargo and crew and even a filmmaker in a kind of insolvency limbo.
Chesapeake Acquires Baltimore-Area Office Complex
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1341 Ashton Road, Baltimore
Baltimore—Full-service commercial real estate company Chesapeake Real Estate Group recently acquired a two-building, 26,000-square-foot office complex situated in the Hanover/Arundel Mills section of Anne Arundel County from Corporate Office Properties Trust. The asset sold for $2.9 million and it represents CREG’s first investment in the office market.
Why China’s Debt Levels Are All About Property Prices
Posted by: | CommentsReal estate holds the key to the debt-leverage divergence, Nomura says.
Residential and commercial buildings stand in eastern Beijing, China.
Have you been mixing up your Chinese debt with your Chinese leverage?
If so, economists at Nomura Holdings Inc. want you to stop that right now.
In a note published this week, they argue that the conventional wisdom that “debt” and “leverage” are basically the same doesn’t really work for the world’s second-largest economy. In fact, the two have actually been moving in completely opposite directions over the past decade, with China now exhibiting “high debt but low leverage,” economists led by Yang Zhao and Wendy Chen write…
Investors Stick With Assets That Mimic Hedge Funds
Posted by: | CommentsMutual funds that mimic hedge fund strategies — the so-called liquid alternatives sector — were among the hottest investments just a few years ago. Despite lagging returns and setbacks at several noteworthy funds, retail investors until recently have stuck with them even as they have pulled billions of dollars out of other funds.
There may be early warning signs that that is about to change.
The current market leader is a trend-following financial futures fund called the AQR Managed Futures Strategy Fund, which has ridden the downturn in oil prices and interest rates to a recent peak of $14.3 billion of assets…
Normandy Trades Repositioned NYC Office Tower
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125 W. 25th St., Manhattan
New York—Normandy Real Estate Partners has sold the Manhattan office tower at 125 W. 25th St. for $150 million, handing the keys to AFIAA, a Swiss pension fund. Three appears to be a magic number for Normandy; the company sold 125 W. 25th for nearly three times the amount it paid to purchase the 140,000-square-foot property—approximately $54.6 million—out of foreclosure three years ago.
SBL Enterprises brokered the transaction with AFIAA.
Wells Fargo Scandal Hurts Wall Street’s Bonus Rule Battle
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Bank’s settlement could influence agencies writing regulations
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Wells Fargo critics clamoring for clawbacks from executives
Lobbyists who’ve been bashing away at Washington’s latest effort to regulate Wall Street bonuses may find the Wells Fargo & Co. scandal just grabbed the hammer from their hands.
The lender’s turmoil over fake accounts, fees that shouldn’t have been charged and thousands of firings comes at a bad time. It created an awkward backdrop for House Republicans this week, as some of them hyped a bill that would repeal much of the Dodd-Frank Act. Wells Fargo’s settlement with regulators also emerged just as banks are arguing that a proposed pay rule meant to rein in excessively risky behavior went way too far…
Madison International Realty Buys Stake in Hudson’s Bay
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Ronald Dickerman, Madison International Realty
New York—Madison International Realty and affiliates have acquired 1.3 percent of the common stock of retail giant Hudson’s Bay Co., the real estate private equity firm announced Tuesday. The acquisition follows an earlier investment in HBS Global Properties, the joint venture between HBC and Simon Property Group.
Madison did not respond to Commercial Property Executive’s request for additional information.
With the stock’s current price hovering around 17.00 CAD and outstanding shares of HBC totaling about 182.2 million, according to Bloomberg, Madison’s investment presumably cost about 40.1 million CAD, or about 30.4 million USD…
U.K. Retail Sales Dip Less Than Forecast as Confidence Holds
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Dip follows strongest July increase in sales since 2002
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No sign of Brexit-induced fall in consumer confidence: ONS
U.K. retail sales declined less than economists forecast in August following the strongest July increase in 14 years, the Office for National Statistics said on Thursday.
Key Points
- Volume of goods sold in stores and online fell 0.2 percent (median forecast was 0.4 percent decline)
- Sales excluding auto fuel declined 0.3 percent (median forecast was 0.7 percent drop)
- Sales in July grew 1.9 percent instead of 1.4 percent initially estimated…
Trump Tax Plan Drops 15% Rate for Hedge Funds, Partnerships
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Rate had been proposed for businesses’ ‘pass-through’ income
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Low rate would apply only to corporate income, economist says
Republican presidential nominee Donald Trump has dropped a major tax cut for businesses organized as pass-through entities, including partnerships, from his tax overhaul proposals, according to the latest version of those plans.
The change will make Trump’s plan much less favorable for private-equity partners, hedge fund managers and others who receive income from partnerships, limited liability companies and S corporations. Such entities don’t pay income taxes themselves, but pass their earnings through to their owners, who are taxed at individual rates…
NGKF Tapped as Leasing Agent for 10-Story DC Office Building
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Federal Gateway, Washington, D.C.
Washington—NGKF was selected as leasing agent for Federal Gateway, a 298,000-square-foot office building located at 1100 New Jersey Ave. SE in Washington, across the street from the Navy Yard Metro station and adjacent to Canal Park.
Brendan Owen, George Vogelei, Rafel Notarlo and Morgan Monroe of NGKF will lead the leasing efforts.
Canada’s Household Debt Burden Is Now Bigger Than Its GDP
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Borrowing continues even as government tightens mortgage rules
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Debt-service, debt-to-net-worth ratios remain little changed
Canadian household debt exceeded the country’s gross domestic product for the first time as liabilities climbed to a fresh record relative to disposable income.
Household debt rose to 100.5 percent of gross domestic product in the second quarter from 98.7 percent previously, Statistics Canada said Thursday from Ottawa. Credit-market debt such as mortgages increased to 167.6 percent of after-tax income, from 165.2 percent in the first quarter…
Canada’s Household Debt Burden Is Now Bigger Than Its GDP
Wall Street’s 0.01%: The Guru Who Only Talks to Hedge-Fund Elite
Posted by: | CommentsA new financial elite is emerging on Wall Street. And if you’re not part of it, the next best thing is to sell to it.
Jens Nordvig, one of the hottest prognosticators in finance, will sell anyone his secret sauce for winning trades for $30,000 a year.
But if you want unfettered access to his best ideas and personal touch—the kind that the deep-pocketed hedge funds covet—be prepared to shell out about 20 times more.
The Hub Breaks Ground at Waverly in South Charlotte
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The Hub at Waverly in South CharlotteVancouver Leads Canada’s Fourth Straight Fall in Home Sales
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Realtor group says B.C. foreign-buyer tax curtailing activity
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Prices in west-coast city decline as national average rises
Canadian home sales fell for the fourth-straight month in August, with Vancouver leading the decline after the introduction of a sales tax on foreign buyers.
The number of transactions in Greater Vancouver dropped 18.8 percent from July, and there was a 10 percent fall in the nearby Fraser Valley, the Canadian Real Estate Association said Thursday from Ottawa. The national total fell by 3.1 percent on the month, with the decline blunted by a 2.1 percent gain in Toronto, Canada’s biggest city…
Deutsche Bank Rebuffs U.S. Over $14 Billion Mortgage Settlement
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Negotiations are ‘just beginning,’ lender says in statement
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U.S. shares of biggest German bank tumble in extended trading
Deutsche Bank AG said it won’t pay the $14 billion sought by the U.S. Justice Department to settle an investigation into the firm’s sale of residential mortgage-backed securities, a figure that’s more than triple what some analysts estimated could be a potential worst-case.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” the company said in a statement early Friday in Frankfurt. “The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.”…
Paramount Grabs Half-Billion-Dollar San Fran Office Tower
Posted by: | Comments
Albert Behler, president & CEO, Paramount Group
San Francisco—Paramount Group Inc. will give its presence in San Francisco, one of its three target markets, a big boost with the acquisition of One Front Street, a 651,000-square-foot office building. Paramount has signed on to purchase the trophy office property for $521 million from Market Front Associates LP
A 20-year hold can certainly fatten the pocketbook. One Front Street last changed hands in January 1997 for $103 million, according to the San Francisco Planning Department…
Morgan Stanley Says Telecom Stocks One of Europe’s Few Safe Bets
Posted by: | CommentsFor European investors seeking stability but finding nothing but high-priced equities, phone stocks beckon.
That’s the view of Andrew Sheets, Morgan Stanley’s chief cross-asset strategist, who says shares of telecommunications companies stand out among other defensive industries where valuations are dangerously high. The Stoxx 600 Telecommunications Index trades at 16.3 times estimated earnings, compared with more than 18 for consumer shares…
Morgan Stanley Says Telecom Stocks One of Europe’s Few Safe Bets
Wells Fargo Subpoenaed in Sham Account Case
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John Stumpf, chief executive of Wells Fargo. CreditAndrew Harrer/Bloomberg
Wells Fargo has received subpoenas from three different United States attorneys’ offices in the last week, escalating an investigation into how thousands of bank employees came to secretly issue more than a million sham accounts without customers’ consent.
Federal prosecutors in Manhattan and San Francisco sent the subpoenas seeking information on the misconduct, according to two people briefed on the matter who were not authorized to discuss it. Prosecutors in North Carolina are also investigating, one of the people said…
Wells Fargo Subpoenaed in Sham Account Case
Cheung Kong Property to Pay $251 Million for Hong Kong Site
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Developer was bidding against Wheelock, Vanke, Sun Hung Kai
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Property is in a part of Sha Tin known for luxury homes
Cheung Kong Property Holdings Ltd. will pay HK$1.95 billion ($251 million) for a Hong Kong site in an area known for luxury homes.
Designated for private residential purposes, the site in Sha Tin, New Territories, has a maximum gross floor area of 22,676 square meters, according to a statement from the Hong Kong Lands Department on Wednesday. The land is in Lai Ping Road, Kau To Shan.
Two Percent ‘Makes Sense’ as Central Banks Fight Low Inflation
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Mishkin says policy makers shouldn’t be afraid to overshoot
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Borio says more tightening acceptable to tame financial booms
Central banks’ mandates may not have to change, but more flexibility is needed in interpreting them.
That’s the conclusion of a panel in Vienna on whether a 2 percent inflation target is still appropriate after years of financial crises have eroded growth potential around the world and policy makers have taken on additional tasks beyond guaranteeing price stability. Some warned that demonizing deflation might lead to the creation of new bubbles.
JLL to Lease Hampton Roads Office Property
Posted by: | CommentsSingapore High-Rise Office Rents Decline by 7% as Demand Slows
Posted by: | CommentsSingapore landlords are paying the penalty for a slowing economy. Alone among the world’s major cities, the cost of renting an office with panoramic views is falling as supply outstrips demand.
Annual rents on the upper floors of Singapore’s skyscrapers fell 7 percent to about $775 a square meter in the first six months, according to a 23-city index compiled by Knight Frank LLP. The biggest increase was in Shanghai, where rents climbed 7.6 percent to $774. In Hong Kong, the most expensive market, rents rose by 5.9 percent to $2,996 a square meter, the broker said…
Luxury-Home Sales in Vancouver Plunge on Foreign-Buyer Surcharge
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Deals at C$1 million or more fell 65% in August, broker says
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Sotheby’s says Toronto and Montreal will benefit from slowdown
A tax on foreign homebuyers in Vancouver cut luxury purchases in Canada’s priciest housing market by more than half last month, according to a brokerage report. Meanwhile, high-end sales in Toronto surged.
Transactions in Vancouver of at least C$1 million ($759,000) slid 65 percent from a year earlier to 95 units in August, the month that a 15 percent transfer tax on deals by non-Canadian homebuyers took effect, according to Sotheby’s International Realty Canada. At the same time, luxury-home sales in Toronto and its suburbs doubled to 1,459 units, the high-end brokerage said…
HFF Closes $26M Refi for Manhattan Office Asset
Posted by: | CommentsUBS Is the Latest Bank to Warn of a 10% Drop In the S&P 500
Posted by: | CommentsSell in September?
Stock markets about to enter freefall?
That 2 percent drop in the U.S. stock market on Friday might not be the last big pullback we see this year.
Michael Riesner and Marc Muller, technical analysts at UBS AG, are calling for a top in the S&P 500 following the recent bond market sell-off that has pushed yields on the benchmark 10-year U.S. Treasury above 1.7 percent.
Wells Fargo Does Damage Control Before Washington Grilling
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COO Sloan has been meeting with policy makers ahead of hearing
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Some lawmakers are frustrated by lack of answers on clawbacks
Wells Fargo & Co. has started doing damage control on Capitol Hill.
Tim Sloan, the bank’s president and chief operating officer, has spent most of the week reaching out and meeting with members of Congress and their staffs in Washington, as the lender confronts blowback over allegations it opened more than 2 million accounts without customers’ approval, said people with direct knowledge of the discussions. With the Senate Banking Committee preparing to hold a Sept. 20 hearing on the scandal, Sloan and other Wells Fargo executives are spending time in the offices of Chairman Richard Shelby and top Democrat Sherrod Brown, and have targeted others on the committee…
GPT, TPG Enter Strategic Partnership
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Ben Harris, president, Gramercy Property Trust
New York—TPG Real Estate has acquired a 75 percent interest in a portfolio of six office assets valued at $187.5 million, from Gramercy Property Trust, and the two have formed a new partnership, Strategic Office Partners.
“We see a compelling investment opportunity in the office net lease sector and believe that this portfolio of high-quality assets in strong growth markets is poised to benefit from positive fundamental trends,” Avi Banyasz, TPG Real Estate’s co-head, said in a prepared release. “We look forward to working with Gramercy, a best-in-class owner and operator, whose extensive experience in the space will prove valuable as we work together to manage and expand the platform.”…
Tervita in Restructuring Deal to Cut Debt by $1.5 Billion
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Company says it has support of group of lenders, shareholders
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Application being made under Canada Business Corporations Act
Tervita Corp., the Canadian oilfield services company focused on waste management, is planning a debt-for-equity swap to reduce its total leverage by about C$2 billion ($1.5 billion).
Holders of 63 percent of its senior unsecured notes and 90 percent of its subordinated unsecured notes have agreed to the proposal, according to a statement on Wednesday from the closely-held company. Tervita also has secured agreement from 69 percent of its shareholders, the Calgary-based company said…
Golfsmith Bankruptcy Brings Fresh Woes to Under Armour and Nike
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Nike brand golf balls and apparel inisde a Golfsmith retail store in New York.
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Chain’s filing follows demise of Sports Authority this year
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Golf has been hurt by falling participation among the young
The bankruptcy of Golfsmith International Holdings Inc. brings another round of suffering to the world’s biggest athletic brands, which are still reeling from the shutdown of Sports Authority Inc. earlier this year.
Nike Inc., Adidas AG and Under Armour Inc. all have a substantial business with Golfsmith, which filed for Chapter 11 bankruptcy on Wednesday. The chain has 109 stores in the U.S. and 55 in Canada, making it the largest dedicated golf retailer in North America…
Fed Proposes Ban on Merchant Banking, a Practice With Little Risk
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Harry Campbell
The Federal Reserve has taken dead aim on merchant banking, proposing to ban the practice as part of a “take no risk” regulation strategy.
Merchant banking has been around for centuries. Why crack down now?
The business originated during the Italian Renaissance. Small, family-run banks would finance sea voyages and other trading missions, taking a share of the profits. This was high-risk finance. All could be lost as a result of a storm, the occasional war or even piracy. In the following centuries, merchant banking spread across Europe and then to the United States, becoming the occupation of the big banking houses like J.P. Morgan…