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Monthly Archives: May 2013

Clarion to Buy 108-Year Old Office Tower in Manhattan

Clarion Partners LLC is currently in private negotiations to buy a 108-year-old office tower for more than twice the original sale price two years ago. The tower is located near Manhattan’s Union Square and going for $225 million.

The deal values the building at more than $800 a square foot, a price at which only “a handful” of properties have sold since the real estate crash, said Ben Thypin, director of market analysis for global commercial property research firm Real Capital Analytics Inc.

“Employers want to be in midtown south because their employees want to be there,” Thypin said. “As a result, employers are willing to pay significantly higher rents in midtown south than they have historically and, in turn, the anticipation of further rent growth makes midtown south an attractive place to buy property.”

Taiwanese Insurers Enter Global Real Estate Market

Regulatory restrictions have been eased in China allowing
insurance companies with a risk-based capital ratio of 200% or more to invest in overseas property. The change will likely result in an increased flow of capital from Taiwanese and Chinese insurance companies into Europe and the US.

Already the Ping An insurance company is reported to be close to acquiring the Lloyds headquarters in London for approximately £260m (€304m).

Speaking at the European IPD conference in Lisbon last week, Simon Mallinson, executive managing director at global commercial real estate data and research firm Real Capital Analytics (RCA), said this deal was “the first time you’ve seen non-state-backed Chinese money invested in the UK, or in Europe, in significant volume.

“That is reflective of the fact the Chinese are now allowing some of their corporate insurers and pension funds to invest outside [their borders].

“Taiwan is now allowing its funds to invest out of national markets, so a huge amount of corporate-style capital, not state-backed, is also on the horizon.”

The latest figures from RCA show Chinese capital is flowing into European real estate following the recent recovery in the US property markets.

Transaction volumes for the first quarter of 2013 are already half that of the whole of 2012.

“We are seeing more and more capital now flow into Europe than into the US, which is a significant change in strategy over the last few years,” Mallinson said.

Clarion to Buy 108-Year Old Office Tower in Manhattan

Clarion Partners LLC is currently in private negotiations to buy a 108-year-old office tower for more than twice the original sale price two years ago. The tower is located near Manhattan’s Union Square and going for $225 million.

The deal values the building at more than $800 a square foot, a price at which only “a handful” of properties have sold since the real estate crash, said Ben Thypin, director of market analysis for global commercial property research firm Real Capital Analytics Inc.

“Employers want to be in midtown south because their employees want to be there,” Thypin said. “As a result, employers are willing to pay significantly higher rents in midtown south than they have historically and, in turn, the anticipation of further rent growth makes midtown south an attractive place to buy property.”

Taiwanese Insurers Enter Global Real Estate Market

Regulatory restrictions have been eased in China allowing
insurance companies with a risk-based capital ratio of 200% or more to invest in overseas property. The change will likely result in an increased flow of capital from Taiwanese and Chinese insurance companies into Europe and the US.

Already the Ping An insurance company is reported to be close to acquiring the Lloyds headquarters in London for approximately £260m (€304m).

Speaking at the European IPD conference in Lisbon last week, Simon Mallinson, executive managing director at global commercial real estate data and research firm Real Capital Analytics (RCA), said this deal was “the first time you’ve seen non-state-backed Chinese money invested in the UK, or in Europe, in significant volume.

“That is reflective of the fact the Chinese are now allowing some of their corporate insurers and pension funds to invest outside [their borders].

“Taiwan is now allowing its funds to invest out of national markets, so a huge amount of corporate-style capital, not state-backed, is also on the horizon.”

The latest figures from RCA show Chinese capital is flowing into European real estate following the recent recovery in the US property markets.

Transaction volumes for the first quarter of 2013 are already half that of the whole of 2012.

“We are seeing more and more capital now flow into Europe than into the US, which is a significant change in strategy over the last few years,” Mallinson said.

Calpers Buying Moscow Mall According to Property Investor Europe

CalPERS, the largest US pension fund, is said to be buying a minority stake in Moscow’s Metropolis mall from Morgan Stanley, which acquired Metropolis only three months ago for a reported $1.2bn in the largest CRE deal in Russia to date.

Terms of the deal were not disclosed, but global commercial real estate data provider Real Capital Analytics put the figure at some $1.2bn.

Calpers Buying Moscow Mall According to Property Investor Europe

CalPERS, the largest US pension fund, is said to be buying a minority stake in Moscow’s Metropolis mall from Morgan Stanley, which acquired Metropolis only three months ago for a reported $1.2bn in the largest CRE deal in Russia to date.

Terms of the deal were not disclosed, but global commercial real estate data provider Real Capital Analytics put the figure at some $1.2bn.

Blackstone Considers Brixmor IPO

According to private sources, Blackstone Group LP is considering an initial public offering of its Brixmor Property Group shopping center unit by year’s end. Brixmor,is one of the largest owners of community and neighborhood shopping centers in the US.

The Moody’s/RCA CPPI, a measure of property prices based on repeat-sales transactions, shows the retail market has recovered to 51 percent of it’s peak-to-trough. The Brixmor sale along with a flurry of other retail transactions shows a strong rebound in retail sector.

Blackstone Considers Brixmor IPO

According to private sources, Blackstone Group LP is considering an initial public offering of its Brixmor Property Group shopping center unit by year’s end. Brixmor,is one of the largest owners of community and neighborhood shopping centers in the US.

The Moody’s/RCA CPPI, a measure of property prices based on repeat-sales transactions, shows the retail market has recovered to 51 percent of it’s peak-to-trough. The Brixmor sale along with a flurry of other retail transactions shows a strong rebound in retail sector.

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