Archive for Uncategorized
Four Fresh Worries About China’s Shadow Banking System
Posted by: | CommentsDraft rules seeking to shore up the $3.9 trillion market for wealth management products underscore a bunch of new worries.
The tangled web of Chinese banks and the investment products they sell is growing more muddled as analysts attempt to gauge the impact of new rules unveiled by the country’s authorities.
The proposed new rules would require some banks to provision for losses against wealth management products (WMPs), which funnel money from retail investors into securities ranging from stocks to corporate bonds and real estate, in an effort to insulate the lenders from future losses.
Caliber Home Loans Embraces Borrowers With Spotty Credit
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Housing construction in Wesley Chapel, north of Tampa, Fla. Some lenders are beginning to issue mortgages to borrowers with troubled credit records and to issue bonds backed by those loans.CreditMelissa Lyttle for The New York Times
Mortgages to borrowers with spotty credit histories have yet to come roaring back from the financial crisis, but they are on the rise at the private equity giant Lone Star Funds.
Its wholly owned mortgage business, Caliber Home Loans, is one of the few financial firms to report a significant percentage increase this year in the dollar value of subprime mortgages it is managing and servicing for homeowners.
U.K. House Prices Decline for Second Month as Sales Soften
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Halifax says quarterly growth is slowest since Dec. 2014
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Report published in London doesn’t mention Brexit-vote effect
U.K. house-prices fell for a second month in August, as high prices curbed demand and sales activity softened, Halifax said.
Prices slipped 0.2 percent, after dropping 1.1 percent in July, the mortgage lender said in a statement on Wednesday. In the three months through August, values grew 0.7 percent, the slowest quarterly pace since December 2014. From a year earlier, values increased 4.1 percent to an average 213,930 pounds ($286,923), while the three-month annual rate of growth slowed to the least since 2013…
Family Offices Back Away From Hedge Funds After Returns Decline
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Wealthy families cut allocations to funds by 10%, report says
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The average return for offices dropped to 0.3% in 2015
Family offices, which manage the money of wealthy clans, are growing wary of hedge funds.
Offices reduced their exposure to hedge funds, which have mostly underperformed stock markets since the financial crisis, by 10 percent in the 12 months ending in May, according to a report by UBS Group AG and London-based research firm Campden Wealth.
“The reduction in allocation to hedge funds comes down to two concerns: high fees and disappointing performance,” Philip Higson, vice chairman of Zurich-based UBS’s global family office group, said in an interview…
Marcus & Millichap Sells Silicon Valley Retail Strip
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633 Laurel St., San Francisco
San Francisco—Marcus & Millichap has announced the sale of a three-property retail strip on the San Francisco Peninsula in San Carlos, Calif. The $13.5 million worth acquisition was financed through an approximately $6.9 million loan arranged by Mark One Capital. The buyer was represented by Fabio Sangiorgi, associate vice president investments with Marcus & Millichap. David Campbell, vice president capital markets with Mark One Capital, arranged the fixed-rate, interest-only financing.
Toronto Home Sales and Prices Rise, Contrasting Vancouver Slump
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Home transactions rise 24% in August as prices jump 18%
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Toronto gains as Vancouver slumps on new foreign buyer tax
Home sales in Toronto jumped to a record in August over the prior year, diverging from Vancouver where a foreign investor tax cooled Canada’s hottest housing market.
Transactions in Toronto rose 24 percent to 9,813, the Toronto Real Estate Board said in a statement Wednesday. The average price for all housing types rose 18 percent to C$710,410 ($553,000) in the Greater Toronto Area, while the price of a detached property in the city jumped to C$1.2 million…
Manhattan’s Luxury Real Estate Slowdown Is Spreading to Other Price Tiers
Posted by: | CommentsThe market may be shifting.
There are more signs of a slowdown in New York City real estate.
According to new data from listings website StreetEasy.com, the luxury market still hassome adjusting to do with price cuts now spreading from just the most expensive apartments to other price tiers.
“Most of the increase in price cuts for the luxury tier is in the smaller price cuts bucket (5 percent),” said Krishna Rao, StreetEasy’s economist. “While sellers aren’t going for aspirational prices, they haven’t fully adjusted to reality at the top end of the market.” …
Dockerty Romer & Co. Lines Up Financing for Class A Property
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Westview Plaza at 1850 SW Fountainview Blvd., Port St. Lucie
Miami—Joe Hepp, director at Delray Beach, Fla.-based Dockerty Romer & Co. has secured $4.7 million in financing for a 30,000-square-foot, Class A office building in Port St. Lucie, Fla. Known as Westview Plaza, the property is situated at 1850 SW Fountainview Blvd., within the St. Lucie West master-planned community.
The asset is currently 88 percent occupied by tenants such as Keyes Real Estate, Tenet Healthcare, Pediatric Associates and Comcast, among others…
Wall Street Wants Whole Foods to Stick to the Quinoa Crowd
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Whole Foods in the Williamsburg neighborhood of Brooklyn.
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Grocer’s aggressive expansion plan may need to be shelved
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Competition from lower-priced retail chains like Wal-Mart
The problem with Whole Foods Market Inc.’s expansion plan — and, perhaps, its entire business model — is epitomized by its store in a western suburb of Chicago.
The Elmhurst, Illinois, outlet looks like any other Whole Foods on the inside, with its artisan breads, exotic facial oil and quinoa. But it’s the surroundings that are the problem. It shares a parking lot with a Dress Barn, a Kmart and a Shoe Carnival (“Buy One Get One Half Off”) — “not what we would consider high end,” as Wolfe Research analyst Scott Mushkin put it…
Q&A with Alexander Cohen, Liberty SBF
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Alexander Cohen, CEO of Liberty SBF
In June, Liberty SBF announced it received $75 million in its Series B round of funding and expanded its credit facilities with Capital One Bank. This comes a few months after the government approved legislation to permanently reinstate the SBA 504 Refinance Program, which is designed to provide small-business owners with more options to refinance eligible fixed assets, including real estate. Alexander Cohen, founder & CEO of the commercial lending company, talked with CPEabout how the company is benefiting from the program through its own SBA 504 Wholesale Program and the newest trends in the real estate lending arena.
U.K. Housing Market ‘Settling Down’ After Brexit-Vote Shock
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RICS says August house-price index rises from 3 1/4-year low
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London home values continue to fall and stagnation predicted
The U.K. housing market gained momentum in August after the shock to confidence caused by the Brexit vote, a survey found.
The Royal Institution of Chartered Surveyors said its house-price gauge rose to 12 from a three-year low of 5 in July as more real-estate agents reported appreciating prices. In London, it remained negative for a sixth month, indicating home values are falling outright…
U.K. Housing Market ‘Settling Down’ After Brexit-Vote Shock
This Hedge Fund Made 2,100% From World’s Most Extreme Market Mania
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Wang Bing. Source: Wang Bing
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Chinese manager rides booms and busts in commodities futures
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Guli fund shuns complex bets; favors supply-demand analysis
Plenty of professional investors like to tout their talent for turning volatility into opportunity. Few have managed to deliver on that promise as well as Wang Bing.
With deft timing and the magnifying power of leverage, the 37-year-old trader of Chinese commodity futures has navigated the most fevered speculative mania of 2016 to produce the kind of returns that only volatile markets can provide. Wang says his Guli Trend Aggressive Strategy fund has climbed about 750 percent this year, extending an advance since its March 2015 inception to 2,100 percent…
Subprime Lender, Busy at State Level, Avoids Federal Scrutiny
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Diane Standaert, director of state policy for the Center for Responsible Lending, said bills aimed at loosening state laws that protect consumers from high-cost lending “were popping up all over the place.” CreditAlex Boerner for The New York Times
The payday lending industry is bracing for a regulatory crackdown. One of its rivals is not.
The federal Consumer Financial Protection Bureau unveiled proposed rules in June that take aim at short-term payday loans charging triple-digit annual percentage rates. The rules also would cover many so-called installment loans that have longer repayment periods but still charge an annual rate higher than 36 percent.
Auckland’s Surging House Prices Top Sydney, Parts of New York City
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Market squeezed by supply shortage, immigration and low rates
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RBNZ lending restrictions may be starting to curb demand
The average house price in Auckland, New Zealand’s largest city, has surged above NZ$1 million ($730,000) for the first time.
The price for the Auckland area, home to a third of New Zealand’s 4.7 million people, jumped 16 percent in August from a year earlier and 6.1 percent in the last three months to NZ$1.01 million, according to data published Tuesday by government property research agency Quotable Value. The city’s average price has risen 86 percent since 2007.
Air Canada Plans Bond Redemptions, Refinancing to Cut Debt Load
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Company will redeem U.S. and Canadian dollar 2019, 2020 notes
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Airline recalibrates finances as competition intensifies
Air Canada plans to ease its debt load and push back maturities to cut costs as the airline industry wrestles with overcapacity and weak fares.
The airline intends to redeem $700 million of U.S. dollar first- and second-lien bonds maturing in 2019 and 2020, as well as C$300 million ($233 million) of Canadian dollar bonds maturing in 2019, Air Canada said in a statement Tuesday. The arrangement includes plans to refinance its existing senior secured credit facility as well as the notes, the Montreal-based company said…
Fresenius to Buy Spain’s Largest Private Hospital Operator
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The headquarters of Fresenius, Germany’s largest hospital operator, in Bad Homburg. CreditJohannes Eisele/Reuters
LONDON — Fresenius, one of Europe’s largest health care providers, said on Tuesday that it had agreed to acquire IDC Salud Holding, Spain’s largest private hospital operator.
The deal would expand the operations of Fresenius’s Helios unit, which is already Germany’s largest hospital operator, by adding IDC Salud Holding, known as Quirónsalud, for 5.8 billion euros, or about $6.5 billion. It is the first acquisition outside Germany by the Fresenius Helios unit…
Fresenius to Buy Spain’s Largest Private Hospital Operator
Central London Renters Have the Best Market Since 2008
Posted by: | CommentsProperties have flooded the rental market, and tenants can be picky.
When Scarlett Gray looked for an apartment in central London two years ago, she was practically laughed out of agents’ offices. She was told those sought-after places—think of a neighborhood with rows of white-columned townhouses—rarely come on the market.
This summer, she had to stop herself from checking listings online, because she became overwhelmed with her choices.
“Every single day there were more,” said Gray, 26, a marketing manager. “It was sort of a nightmare—but a good nightmare.”…
Watch Out London, Singapore is Next in Line as Best Financial Hub
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Singapore rises to No.2 spot on PwC index, overtaking New York
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City state benefits from low taxes, good infrastructure
Singapore is next in line if London loses its status as leading business hub in the world.
The Asian island nation ranks behind London as the best global city, PricewaterhouseCoopers LLP said in a new study, based on social and economic data published before the U.K. voted to leave the European Union. The Cities of Opportunity Index places Singapore ahead of Paris and Amsterdam, two European cities that are seeking to attract foreign businesses if they decide to shift jobs out of London…
Meridian Exits Multi-Tenant Office Asset after 20 Months
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The AtriumBerkeley Home Reservations Fell 20% in August on Taxes, Brexit
Posted by: | CommentsBerkeley Group Holdings said reservations for new homes dropped 20 percent in August from a year earlier as buyers delayed purchases after property taxes rose and the U.K. voted to leave the European Union.
“Pricing has remained resilient and above business plan levels with reservation cancellation rates at normal levels, following a temporary and expected increase after the U.K. referendum result,” London’s biggest homebuilder said in a filing…
Berkeley Home Reservations Fell 20% in August on Taxes, Brexit
Morgan Stanley: Four Reasons Why The S&P 500 Will Rally to 2,300
Posted by: | CommentsMorgan Stanley Chief U.S. Equity Strategist Adam Parker says the surprising rally in U.S. stocks to new all-time highs following the Brexit vote has more room to run.
Parker upped his 12-month price target on the S&P 500 index to 2,300 from 2,200…
Morgan Stanley: Four Reasons Why The S&P 500 Will Rally to 2,300
Dermody Properties Developing Spec Industrial Facility in Central Valley
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LogistiCenter at LathropPacific Sunwear Has ‘Retailer’s Dream’ as Bankruptcy Wraps Up
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California clothier used Chapter 11 to cut debt, stay open
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Reorganized company will be owned by Golden Gate Capital
Pacific Sunwear of California Inc. won court approval to exit bankruptcy after cutting debt, closing some stores and pressuring landlords to reduce rent at the malls where the teen-clothing chain does business.
“That’s every distressed retailer’s dream,” Poonam Goyal, a retail analyst with Bloomberg Intelligence said in an interview. But whether Anaheim, California-based PacSun can succeed is unclear, Goyal said. Most retailers in the U.S. have too many stores and need to cut back, she said.
Saudi Arabia Said to Weigh Canceling $20 Billion of Projects
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Government to review thousands of contracts worth $69 billion
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Ministries could be merged or eliminated under plans
Saudi Arabia is intensifying efforts to shrink the highest budget deficit among the world’s biggest 20 economies, aiming to cancel more than $20 billion of projects and slash ministry budgets by a quarter, people familiar with the matter said.
The government is reviewing thousands of projects valued at about 260 billion riyals ($69 billion) and may cancel a third of them, three people said, asking not to be identified as the discussions are private. The measures would impact the budget for several years, according to two of the people…
Neyer Properties Invests Millions in Office Tower Renovation
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URS Office Tower in Cincinnati
Cincinnati—Neyer Properties is the new owner of URS Tower, a 200,000-square-foot office high-rise located in Cincinnati’s central business district. The commercial real estate company bought the property for $8 million through auction site Ten-X. Keith Yearout and Jim Vondran represented the seller, LNR Partners.
Guggenheim Museum Offers Municipal Debt as Art Icon Revamps Site
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Moody’s assigns investment grade credit rating to non-profit
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Foundation plans to sell $20 million in taxable municial debt
The Solomon R. Guggenheim Foundation is selling $20 million in taxable municipal bonds this month to pay for improvements at the contemporary art museum in New York.
Known as the Guggenheim, the distinctive spiral building designed by architect Frank Lloyd Wright houses modern works. The foundation, which also owns sites in Europe and a forthcoming center in Abu Dhabi, has a collection of more than 8,000 pieces, according to Moody’s Investors Service…
Puerto Rico Failed to Make $9.9 Million Bond Payment on Sept. 1
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Government Development Bank owed interest on agency debt
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Federal control board will oversee any debt restructuring
Puerto Rico’s Government Development Bank, which served as the island’s financial adviser and lender before being placed in a state of emergency, failed to pay investors $9.9 million of interest due Sept. 1., according to a regulatory filing.
The bank, whose regulator says is insolvent and faced a cash shortfall of as much as $1.3 billion in June, has been defaulting on debt payments since May. September’s missed payment was disclosed in a filing Tuesday on the Municipal Securities Rulemaking Board’s website, called EMMA…
Yum Brands in China Adds Owners With Skill and Connections
Posted by: | CommentsYum Brands has added some spice at a price. The company, which owns KFC and Pizza Hut, is selling part of its China business to Alibaba’s mobile-payments affiliate and a private-equity firm run by Fred Hu, the former chairman of Goldman Sachs China. They bring valuable technology skill and connections. It is a better deal than usual for so-called cornerstone investors, but may pay off for Yum’s coming spinoff.
Construction Begins on PDX Logistics Center III
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PDX Logistics Center III, Portland
Portland, Ore.—PCCP LLC and Capstone Partners LLC have formed a joint venture to develop PDX Logistics Center III, two Class A industrial buildings encompassing 257,120 square feet in Portland.
PDX Logistics Center III is situated on a 14-acre site, adjacent to the Portland International Airport and the fully leased PDX Phases I and II industrial developments. The first two phases of the project total 846,000 square feet in three buildings and were also built under the joint venture between PCCP and Capstone…
Vonovia to Buy Austrian Developer Conwert for $1.9 Billion
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Conwert shares jump on deal, while Vonovia stock drops
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Deal to generate 7 million euros of annual cost savings
Vonovia SE agreed to buy Austrian developer Conwert Immobilien Invest SE for about 1.7 billion euros ($1.9 billion), a fresh attempt to grow with an acquisition after a bid for its largest German competitor failed.
Vonovia offered 74 of its shares for every 149 Conwert shares, valuing each Conwert share at 17.58 euros, the Bochum, Germany-based real estate company said in a statement on Monday. That’s about 9 percent more than Conwert’s closing price on Friday. The deal is worth about 2.9 billion euros including debt, Vonovia Chief Executive Officer Rolf Buch said on a call with reporters…
No ‘For Sale’ Sign? Silicon Valley Buyers Aren’t Deterred
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Colleen Foraker, left, a Sotheby’s agent, and her client, Mukul Gupta, at his soon-to-be home in Palo Alto, Calif. CreditGabrielle Lurie for The New York Times
REDWOOD CITY, Calif. — Swell-looking home you’ve got here. Ever think about selling it? How about to me, right now?
That is increasingly the approach the house-hungry are using in Silicon Valley, where the number of homes on the market is so small that would-be buyers are driven to desperation. Their solution: seek out homes that are, in theory at least, not for sale…
No ‘For Sale’ Sign? Silicon Valley Buyers Aren’t Deterred
NGKF Expands Industrial Team
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From left to right: John McMillan, NGKF executive managing director, and Jeff Sanita, NGKF senior managing director
Los Angeles—NGKF is looking to further develop their national industrial practice by having brokers John McMillan and Jeff Sanita join their ranks. Based out of NGKF’s El Segundo office, McMillan will serve as executive managing director, while Sanita will serve as senior managing director.
Tourist Influx Brings No Joy to Singapore Hotels Amid Room Glut
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Room revenue at six-year low as visitors take shorter breaks
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No relief in sight with 1,000 more rooms to open this year
An influx of tourists to Singapore this year has brought little joy to the city’s hoteliers, as a glut of rooms sends a key revenue measure to a six-year low.
Revenue per available room, a metric used by the hotel industry, slumped 7.4 percent in June to S$179.40 ($132) a night, the lowest since 2010, according to data from the Singapore Tourism Board. Even as tourist arrivals have risen each month this year, room rates have fallen because of shorter trips by visitors and a 5 percent increase in the number of hotel rooms…
Barclays Hires JPMorgan Executive to Head Investment Bank
Posted by: | CommentsLONDON — James E. Staley, the Barclays chief executive, has turned to another executive from his former employer, JPMorgan Chase, to fill out his new bank’s executive ranks.
Barclays said on Monday that Tim Throsby, JPMorgan’s global head of equities, would join the British lender in January as president of its corporate and international business and as chief executive of its corporate and investment bank.
Mr. Throsby’s hiring comes at an important time for Barclays. Mr. Staley, who joined the bank in December, has accelerated the sales of businesses that Barclays no longer considers core operations and is focusing its strategy on two divisions: the British consumer bank and a slimmed-down corporate and investment bank…
Inland Private Capital Sells in Chicago
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Mariano’s Fresh Market, Vernon Hills, Ill.
Oak Brook, Ill.—Inland Private Capital Corp. recently announced the sale of Mariano’s Fresh Market, a retail asset located at 1720 N. Milwaukee Ave. in Vernon Hills, Ill.
The 71,248-square-foot property sitting on a seven-acre lot was sold through a subsidiary of IPCC that served as asset manager, leading the marketing efforts on behalf of one of its 1031 investment programs. The building, which is located approximately 35 miles south of the Chicago Loop and is currently fully leased to Roundy’s Supermarkets, traded for $36.4 million.
Prop Up Economies, Boost Budgets: The Call on Central Banks Is Getting Deeper
Posted by: | CommentsIndia’s record dividend was great timing for Prime Minister Narendra Modi as he raises public servants’ wages.
Raghuram Rajan.
Central banks are expected to save the world. And if they can make some money along the way for cash-strapped governments, all the better.
Take India, where outgoing Governor Raghuram Rajan has been beefing up the country’s foreign exchange reserves as a safety net against capital outflows. Income from foreign sources rose 11.5 percent last fiscal year, enabling the Reserve Bank to pay the finance ministry a dividend of about $10 billion, matching the previous year’s record. That’s great timing for the government of Prime Minister Narendra Modi, which just started doling out pay raises to public servants…
Oceanside Retail Center Under New Ownership
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Old Grove Marketplace, Oceanside, Calif.Hong Kong Residents-Only Apartments Sell Out on First Day
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Foreign buyers prohibited to help take pressure off prices
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More than 1,000 new units offered for sale over the weekend
A China Overseas Land & Investment Ltd. project restricted to Hong Kong residents sold out all 300 apartments on the first day, the company said, while two other developers launched new projects as prices rebounded from earlier this year.
China Overseas’ One Kai Tak project, located near the site of the former Hong Kong airport in Kowloon, was bought in a government land tender in 2013 for HK$4.5 billion ($580 million), under an initiative known as “Hong Kong Property for Hong Kong People,” designed to prevent overseas buyers from bidding up prices…
G-20 Study Urges Finance Firms to Better Assess Environment Risk
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Study was presented to Group of 20 meeting in Hangzhou
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Increasing scale and likelihood of environmental risks
Financial institutions should improve the way they assess risks to their operations from environmental threats, according to a paper presented to the Group of 20 meeting which concluded on Monday.
“Inadequate understanding of growing environmental sources of risk could allow threats to financial institutions to accumulate and limit progress towards sustainable global growth,” the U.K’s Cambridge Centre for Sustainable Finance said in the paper…
G-20 Study Urges Finance Firms to Better Assess Environment Risk
Sterling Organization Expands DC Portfolio
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Kmart, Herndon Center
Washington—Sterling Organization, a real estate investment firm based in Palm Beach, has announced the $7 million purchase of Kmart at Herndon Centre. The transaction was made through Sterling Value Add Partners II LP, the firm’s institutional fund.
The new asset consists of 7.6 acres of land with an 84,180-square-foot building, with Kmart as the shadow anchor to a larger, grocery-anchored shopping center called Herndon Centre, which was not part of the transaction. The property has valuable strengths, counting more than 145,000 people living within a 3-mile radius, as well as an average household income of approximately $138,000…
Norway House Price Rally Accelerates Amid Record Low Rates
Posted by: | CommentsThe surge in Norwegian house prices accelerated in August, adding pressure on the central bank to hold off on a plan to cut interest rates.
Prices rose a seasonally adjusted 1.1 percent last month, compared with 1.0 percent in July, according to a report from Real Estate Norway released Monday in Oslo. They increased a nominal 2.8 percent in August and 9.1 percent from a year earlier…
Norway House Price Rally Accelerates Amid Record Low Rates
Auckland’s Average House Price Surges Over NZ$1 Million Mark
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Market squeezed by supply shortage, immigration and low rates
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RBNZ lending restrictions may be starting to curb demand
The average house price in Auckland, New Zealand’s largest city, has surged above NZ$1 million ($730,000) for the first time.
The price for the Auckland area, home to a third of New Zealand’s population, jumped 16 percent in August from a year earlier and 6.1 percent in the last three months to NZ$1.01 million, according to data published Tuesday by government property research agency Quotable Value. The city’s average price has risen 86 percent since 2007…
Musk Urges Tesla Workers to Cut Costs Ahead of Fundraising Round
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Internal memo asks for delivery of ‘every car we possibly can’
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‘Would be awesome to throw a pie in the face of naysayers’
Elon Musk sent an e-mail to employees at Tesla Motors Inc. urging them to cut costs and deliver “every car we possibly can” in a push to show positive cash flow in the third quarter.
The chief executive officer of the electric-car company said it would be his last chance to show improved financial numbers before he tries to raise more money. The third quarter is crucial to Tesla’s future because the company is trying to acquire SolarCity Corp. and preparing to roll out the Model 3, its lower-priced sedan, late next year…
Slower Growth in Jobs Report May Give Fed Pause on Interest Rates
Posted by: | CommentsGood. But not too good.
That is the verdict from economists after the Labor Department reported on Friday that in August employers added 151,000 jobs, the unemployment rate was unchanged at 4.9 percent, and wage gains were modest. It was a solid performance that keeps the economy on track, but not strong enough to push the Federal Reserve to raise its benchmark interest rate when policy makers meet this month.
“It confirms that the economy is performing well, but does not provide the threat of overheating that might have caused an interest-rate increase sooner rather than later,” said Carl R. Tannenbaum, chief economist at Northern Trust…
NGKF Closes Lease Expansion in Boston Area
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5 Burlington Woods Drive, Burlington, Mass.
Boston—Newmark Grubb Knight Frank has announced that the company facilitated a 13,904-square-foot lease expansion at 5 Burlington Woods Drive in Burlington, Mass., on behalf of Orbis Education and Northeastern University’s Accelerated Bachelor of Science in Nursing (ABSN) program.
NGKF Director Brendan Daly, along with the 128 West team, represented the ABSN program in the long-term arrangement.
Man Group Shuffles Senior Management Under New Chief Executive
Posted by: | CommentsLONDON — The British hedge fund manager Man Group said on Friday that it would shuffle its senior management less than two months after announcing its chief executive was departing for the bond giant Pimco.
The shake-up came a day after Luke Ellis took over as chief executive of the British hedge fund manager, succeeding Emmanuel Roman, who will join Pacific Investment Management Company, or Pimco, this year as its chief executive. Mr. Ellis, who most recently served as Man’s president, has been with the company since 2010…
Man Group Shuffles Senior Management Under New Chief Executive
PCCP Provides Financing for Sacramento Campus Acquisition
Posted by: | CommentsThe Harvard Corporate Center features a large list of amenities and is anchored by a number of high-profile tenants.
Sacramento, Calif.—Basin Street Properties recently acquired the Harvard Corporate Center, following a successful financing measure. PCCP provided the buyer with $31 million, which allowed Basin to purchase the property from seller USAA.
Located at 2241 and 2251 Harvard St. in Sacramento, Harvard Corporate Center offers a total of 290,430 square feet of space. The office property occupies a 23.6-acre site, with 15 acres of excess developable land also part of the package. The asset offers proximity to the convergence of Hwy 50 and I-80, as well as Sacramento’s core…
Healthy Living Moves to Historic Palms Building in Detroit
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The Francis Palms Building in Detroit
Detroit—Healthy Living Medical Supply (HLMS) has announced the relocation of its headquarters from Troy, Mich. to downtown Detroit in the first week of November. The company will occupy 7,000 square feet in the 11th floor of the historic Francis Palms Building on Woodward Avenue, 5,000 square feet less compared to their office in Troy.
“We can do this because we have excess space now in Troy and the design of the new space will be highly optimized,” Matt Montagne, director of Innovations at HLMS, toldCommercial Property Executive.
Hong Kong Home August Sales Hit 14-Month High as Mood Lifts
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5,821 units sold in month compared with 4,243 in July
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Sales value of HK$40.6 billion vs July’s HK$29.7 billion
Hong Kong home sales rose to the highest level in at least 14 months as property developers sold more new units and sentiment improved in response to stabilizing prices.
The number of home sales reached 5,821 in August, with a value of HK$40.6 billion ($5.2 billion), according to a release on the Hong Kong Land Registry’s website on Friday. That’s up from 4,243 units changing hands in July, with a value of HK$29.7 billion.
Watch Out for Post-Labor Day Bank Mergers
Posted by: | CommentsThe long weekend is about more than back-to-school shopping.
Photographer: John Taggart/Bloomberg
Bond traders may be seen lounging on the beach during the long Labor Day weekend, with disappointing U.S. jobs data pointing to lower odds of a Fed rate hike. Investment bankers, on the other hand, might not be so lucky.
In particular, those covering the financial industry may be burning the midnight oil, according to a report from FIG Partners. Since 1990, 187 bank mergers have been announced in the first eight days of September, the research firm said. “Our analysis of several thousand bank industry mergers from 1990 through 2015 signals that early September is historically an active time for merger announcements,” writes a team led by Research Director Christopher Marinac…
JLL to Manage Hawaii Shopping Center
Posted by: | CommentsAs the new owner of The Shops at Wailea on the island of Maui, Heitman selected JLL to handle the property’s management and accounting services.
The Shops at Wailea
Wailea, Hawaii—JLL has been retained to manage and handle accounting services for The Shops at Wailea in Maui, on behalf of the retail center’s new owner.
Earlier in August, Chicago investment management firm Heitman Capital Management LLC acquired the luxury Maui shopping center. The property’s purchase price was $342 million, according to the sales deed obtained by thePacific Business News.
Vancouver Home Sales Lowest in Nearly Two Years as Tax Bites
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Transactions fell 26% to 2,489 in August from year earlier
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Average prices for detached properties dropped 17% from July
Vancouver home sales fell 26 percent in August from a year earlier and prices slid as the government’s moves to cool the market by taxing foreign buyers crimped demand.
Sales also dropped from July, down 23 percent to 2,489 transactions, according to a statement from the Real Estate Board of Greater Vancouver. The average price of a detached property declined 17 percent on the month, and 0.6 percent on the year, to C$1.47 million ($1.13 million) in August, the lowest price since September 2015…
Hedge Funds Pare Bullish Dollar Bets Amid Mixed Economic Signals
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Odds of September move gyrate as traders assess economy
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U.S. currency posts second weekly gain against euro, yen
Conviction in the dollar continues to wane as currency traders sort through mixed signals from economic data and policy makers.
The greenback climbed for a second week even after the U.S. Labor Department reported August jobs growth and wage gains were lower than projected. Hedge funds and money managers trimmed net bullish positions for a fourth week as investors weighed the possibility of a Federal Reserve next interest-rate increase as early as this month…
MRP Realty Acquires Suburban DC Office Complex
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Liberty Park, Herndon, Va.
Washington—MRP Realty just enhanced its suburban Washington, D.C., presence by a half-million square feet with the acquisition of the Liberty Park portfolio, an eight-building office campus in Northern Virginia’s Dulles technology corridor. MRP purchased the 532,000-square-foot asset from Liberty Property Trust for, according to the Washington Business Journal, approximately $97 million.
Syria Near-Miss; Barclays’ Investment-Banking Coup: Sunday Wrap
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Saudi Arabia, Russia pledge cooperation on oil production
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Merkel’s party loses to anti-immigration forces in local vote
Here are highlights of Sunday’s top breaking stories from around the world:
Talks between Russia and the U.S. at the G-20 summit in China that looked like they were going to produce a cease-fire agreement in Syria — to the point podiums were set up for an announcement — fell though at the last minute.
Saudi Arabia’s deputy crown prince met with Russian President Vladimir Putin and said stability in oil markets isn’t possible unless his country and Russia cooperate. Putin emphasized the need to “maintain a permanent dialogue.” Whether that means a production freeze is another question…
Sealy & Co. Nabs 1.5 MSF Industrial Portfolio in Dallas
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Scott Sealy Jr., Sealy & Co.
Dallas—Sealy & Co. has acquired an 18-building portfolio consisting of 1.48 million square feet of functional industrial space located in four prime industrial submarkets of Dallas. The assets were acquired as part of the Sealy Strategic Equity Partners LP portfolio.
“The industrial portfolio acquisition is a fitting addition to the current SSEP portfolio, providing functional properties and further tenant diversification,” Scott Sealy Jr., Sealy & Co.’s vice president of business development, said in a prepared release. “Sealy will continue to create value by executing a tailored investment strategy, rolling below market rents to market, and will hold or sell the properties opportunistically.”…
Hong Kong Residents-Only Housing Project Sells Out
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Foreign buyers prohibited to help take pressure off prices
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More than 1,000 new units offered for sale over the weekend
A China Overseas Land & Investment Ltd. project restricted to Hong Kong residents sold out all 300 apartments on the first day, the company said, while two other developers launched new projects as prices rebounded from earlier this year.
China Overseas’ One Kai Tak project, located near the site of the former Hong Kong airport in Kowloon, was bought in a government land tender in 2013 for HK$4.5 billion ($580 million), under an initiative known as “Hong Kong Property for Hong Kong People,” designed to prevent overseas buyers from bidding up prices…
If Trump Gets His Way, Real Estate Will Get Even More Tax Breaks
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An ad for the new Trump hotel in Washington, seen last month. Donald Trump’s new tax proposal adds new breaks for real estate developers like Mr. Trump himself. CreditAl Drago/The New York Times
It’s hard to imagine a tax code more favorable to real estate developers than the one we already have.
Donald Trump has come up with one.
Thanks to some major loopholes in the existing tax code that treat real estate developers as a special privileged class, it’s entirely possible (even likely) that Mr. Trump pays little or no federal income tax...
Gramercy Closes $207M Office Portfolio Sale
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Gramercy Property Trust industrial property
New York—Gramercy Property Trust has closed on the sale of three single-tenant office buildings in Princeton, N.J., Burlington, Mass., and Bloomington, Minn., and one single-tenant industrial facility in Phoenix, Ariz., for a total of $206.7 million.
The weighted average remaining lease term for the four sold properties was 10.1 years at closing, and the blended exit cap rate was 7.4 percent on the next 12 months NOI.
Extell Gets Condo Loan Downtown and Buys Time for Midtown Tower
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Builder obtains $500 million to build One Manhattan Square
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Extends Central Park Tower funding deadline to July 31
Luxury-condo builder Extell Development Co. said it obtained a construction loan for a lower Manhattan project after months of delays, and bought more time to get financing for a planned tower on Billionaires’ Row in Midtown.
Extell got a $500 million loan for its One Manhattan Square development from a consortium of lenders including Deutsche Bank AG, Commercial Bank of China and Natixis Real Estate Capital, according to filings Thursday on the Tel Aviv Stock Exchange, where the New York-based company sells debt to investors. The loan could grow to $750 million within nine months, according to the documents, written in Hebrew…