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Monthly Archives: February 2012

Grosvenor Plans to Raise Nearly $500 Million for Tokyo Office and Apartment Investments

Grosvenor plans to raise 40 billion yen ($492 million) for a fund to invest in Japanese real estate as the market recovers. London-based Grosvenor Group, with about $17 billion in assets, is the real estate firm owned by the family trust of Britain’s Duke of Westminster.

The firm opened its Tokyo office in 2001. Ken Nakajima, Tokyo-based managing director at Grosvenor Fund Management Japan, said the firm plans to invest in office and apartment buildings in the greater Tokyo area. The new fund will finance about 50% of the assets with loans, a ratio that will allow it to buy as much as 100 billion yen ($1.24 billion) in property, he said.

Investors have started banking on a recovery in investor appetite for commercial properties in Asia. Tokyo was ranked the first in property transactions in the past 12 months with $28 billion, followed by Shanghai and Singapore, according to investment sales data compiled from Real Capital Analytics.

Grosvenor Plans to Raise Nearly $500 Million for Tokyo Office and Apartment Investments

Grosvenor plans to raise 40 billion yen ($492 million) for a fund to invest in Japanese real estate as the market recovers. London-based Grosvenor Group, with about $17 billion in assets, is the real estate firm owned by the family trust of Britain’s Duke of Westminster.

The firm opened its Tokyo office in 2001. Ken Nakajima, Tokyo-based managing director at Grosvenor Fund Management Japan, said the firm plans to invest in office and apartment buildings in the greater Tokyo area. The new fund will finance about 50% of the assets with loans, a ratio that will allow it to buy as much as 100 billion yen ($1.24 billion) in property, he said.

Investors have started banking on a recovery in investor appetite for commercial properties in Asia. Tokyo was ranked the first in property transactions in the past 12 months with $28 billion, followed by Shanghai and Singapore, according to investment sales data compiled from Real Capital Analytics.

Capital Shopping Centres sees Earnings Rise

Capital Shopping Centres Group, the UK’s largest publicly traded shopping center owner, stated that full-year profit rose 43 percent year on year due to some well-timed acquisitions. The Trafford Centre in Manchester and a 75 percent interest in the Broadmarsh center in Nottingham were the two trophy acquisitions during this time period leading to the profit increase.

According to Real Capital Analytics, the acquisition of Trafford Centre was the largest single property transaction in Europe in 2011. The mall is among the largest in the UK with 1.9 million square feet of leasable area, and it sold for £1.6 billion.

Capital Shopping Centres sees Earnings Rise

Capital Shopping Centres Group, the UK’s largest publicly traded shopping center owner, stated that full-year profit rose 43 percent year on year due to some well-timed acquisitions. The Trafford Centre in Manchester and a 75 percent interest in the Broadmarsh center in Nottingham were the two trophy acquisitions during this time period leading to the profit increase.

According to Real Capital Analytics, the acquisition of Trafford Centre was the largest single property transaction in Europe in 2011. The mall is among the largest in the UK with 1.9 million square feet of leasable area, and it sold for £1.6 billion.

Asia Pacific Real Estate Volume Down 32%

According to quarterly data published by APREA and Real Capital Analytics, volume across the Asia Pacific region dropped by 32% from 2010 during the last quarter. Concerns regarding the Eurozone debt crisis led investors to be more cautious, with the decline seen across all property types.

Fourth quarter bright spots were Singapore and South Korea, which both saw gains of 112% and 44%, respectively. Hong Kong and China both had a rough quarter, with volume down 56% and 41%. Cross-border investment into the region accounted for only 6% of total investment volume.

Major sales in the last quarter included Festival Walk in Hong Kong, Wave Mega City Centre in India, and a share in Singapore’s Ocean Financial Centre.

Asia Pacific Real Estate Volume Down 32%

According to quarterly data published by APREA and Real Capital Analytics, volume across the Asia Pacific region dropped by 32% from 2010 during the last quarter. Concerns regarding the Eurozone debt crisis led investors to be more cautious, with the decline seen across all property types.

Fourth quarter bright spots were Singapore and South Korea, which both saw gains of 112% and 44%, respectively. Hong Kong and China both had a rough quarter, with volume down 56% and 41%. Cross-border investment into the region accounted for only 6% of total investment volume.

Major sales in the last quarter included Festival Walk in Hong Kong, Wave Mega City Centre in India, and a share in Singapore’s Ocean Financial Centre.

Owner of Empire State Building, Malkin Holdings, Files for $1B IPO

Malkin Holdings, the owner of New York’s Empire State Building, plans to raise up to $1 billion in an initial public offering. They made the announcement on February 13, 2012.

“The Malkins have spent years consolidating control of the Empire State building and other assets. The IPO will allow them and their remaining partners to gain liquidity without relinquishing control,” said Ben Carlos Thypin, director of market analysis at global commercial property research firm Real Capital Analytics.

Owner of Empire State Building, Malkin Holdings, Files for $1B IPO

Malkin Holdings, the owner of New York’s Empire State Building, plans to raise up to $1 billion in an initial public offering. They made the announcement on February 13, 2012.

“The Malkins have spent years consolidating control of the Empire State building and other assets. The IPO will allow them and their remaining partners to gain liquidity without relinquishing control,” said Ben Carlos Thypin, director of market analysis at global commercial property research firm Real Capital Analytics.

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