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10 Must Reads for the CRE Industry Today (October 28, 2015)

10 Must Reads for the CRE Industry Today (October 28, 2015)


  1. Walgreens Is Buying Rite Aid: Here’s What You Need to Know “The consolidation in the drugstore industry continues apace. Walgreens Boots Alliance confirmed earlier reports on Tuesday that it would buy smaller rival Rite Aid in an all cash deal for $9.4 billion and assume its debt. The resulting company will be a pharmacy giant with nearly 13,000 U.S. drugstores, easily dwarfing CVS Health CVS, as well as the large Boots chain in Europe, which Walgreens finished buying last year.” (Fortune)
  2. Starwood Shares Pop Amid Reports Chinese Firms Looking to Buy “Starwood Hotels & Resorts shares popped 7 percent on news that at least three big Chinese companies are competing for a bid for the company. Shanghai Jin Jiang International Hotels, HNA Group, and China Investment, have each presented a proposal to the Chinese government over the past two months, people with knowledge of the discussions told Dow Jones.” (CNBC)
  3. Starwood Hotels Stock Spikes on Possible Hyatt Bid, Earnings Beat “Starwood Hotels & Resorts stock is soaring by 7.20% to $80.20 in early morning trading on Wednesday, amid a potential buyout offer from Hyatt Hotels (H), a third quarter earnings beat and a sale of its Vacation Ownership business. Hyatt Hotels is in talks to buy Starwood Hotels & Resorts in a cash and stock agreement that could close as soon as next week, sources told CNBC. Hyatt management would gain control of the combined companies.” (The Street)
  4. Debt Load Hinders Recovery at Hovnanian “Four years into the housing market recovery, New Jersey-based builder Hovnanian Enterprises Inc. is taking another turn for the worse. The eighth-largest U.S. home builder faces $467 million in debt coming due through 2017—and has no easy answers for how to repay it. Hovnanian’s plight shows the long shadow cast by the housing crisis, which cut the ranks of U.S. home builders in half between 2007 and 2012 and left the survivors chastened.” (Wall Street Journal)
  5. Brookfield to Co-Develop Rental Towers on Brooklyn Waterfront “Brookfield Property Partners LP has formed a joint venture to build two apartment towers on the Brooklyn waterfront, the company’s first project in New York outside of Manhattan. Brookfield, in partnership with New York-based Park Tower Group, will build about 780 rental units in the Greenpoint neighborhood, according to a statement Tuesday. The buildings are part of the first phase of Greenpoint Landing, a 22-acre (8.9-hectare) site along the East River that’s slated to get 5,500 residential units.” (Bloomberg)
  6. KKR Close to Buying a Piece of 30 Hudson Yards “Private-equity giant KKR will be the latest firm to have a stake in the emerging Hudson Yards neighborhood on the far West Side of Manhattan. KKR is close to completing a deal to buy a piece of 30 Hudson Yards, according to the New York Post. The deal could be announced as soon as this week. The stake is for space reportedly up to 400,000 square feet. KKR would be buying it from Related Cos. and Oxford Properties Group.” (Crain’s New York Business)
  7. A Conversation With Steve Solomon “Mr. Solomon, 76, is a 50-year veteran publicist whose long list of past and current clients reads like a who’s who of commercial real estate titans. As an executive vice president and the head of the real estate practice for Rubenstein, he has represented the likes of William Rudin, Richard LeFrak, Burton Resnick and Charles Kushner, among many others. Mr. Solomon is leaving the firm on Oct. 31, the anniversary of his arrival there 25 years ago in his most recent stint, and starting his own consulting business.” (New York Times)
  8. Empire State Building’s Plan to Rule NYC Real Estate “Tony Malkin, chief executive officer and chairman at Empire State Realty Trust, talks with Betty Liu about debt discrepancies between public and private real estate holding companies, his leasing standards for companies moving into the Empire State Building, and a decline in tourist dollars at the New York City landmark. He speaks on ‘Bloomberg Markets.’” (Bloomberg)
  9. Kohl’s to Open Smaller Stores and Outlets in New Turnaround Moves “One year into Kohl’s  KSS 0.71%  three-year turnaround plan, the department store is deploying new tools to sustain its fragile return to growth: much smaller stores that will cater to customers both in less populous areas and in dense urban centers, and outlet stores. To give Kohl’s renewed momentum, the retailer will open between five and 10 smaller stores of 35,000 square-feet each, or just under half the size of a regular Kohl’s store.” (Fortune)
  10. Is Ventas, Inc.’s Story Broken? “Ventas down on revenue miss and concern about future quarters. Long-term story is definitely intact, and management should be able to mitigate most short-term negative effects. Ventas trades at substantial discount to its 10-year valuation, and is a buy right here. Despite the big revenue miss, things seemed to be going alright for Ventas. Institutional investors, however, appear to be concerned that Ventas is building too much, and that competition is getting heavier.” (Seeking Alpha)
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