10 Must Reads for the CRE Industry Today (September 29, 2014)

10 Must Reads for the CRE Industry Today (September 29, 2014)


  1. Charges Filed Against Former Hypo Real Estate Managers “German prosecutors said Monday that they had filed criminal charges against the former chief executive and the former management board of Hypo Real Estate, a lender based in Munich, of misleading investors in 2008 during what proved to be the country’s most costly bank failure.” (The New York Times)
  2. Six Firms Interested in Buying Bob Evans' Real Estate “At least six rival real estate investment firms have expressed interest in buying the property holdings of restaurant and packaged-food giant Bob Evans Farms Inc., according to people familiar with the matter. The potential bidders include Spirit Realty Capital Inc., American Realty Capital Properties Inc., Store Capital and National Retail Properties Inc., these people said.” (The Wall Street Journal)
  3. Nontraded REIT in big shareholder payout “KBS Real Estate Investment Trust II Inc. set off a geyser of liquidity when it announced last Wednesday that investors had received a one-time distribution of $4.50 per share of common stock. The nontraded REIT had said in May that it was considering a special distribution as it anticipated the sale of properties. It was funded from the proceeds from selling holdings from May to August, and from cash on hand from the repayment or sale of real estate loans over the past two years, the company said in a statement.” (Investment News)
  4. Dubai Mall Operator Raises $1.6 Billion in I.P.O. “Emaar Malls Group, the shopping mall operator based in Dubai, United Arab Emirates, said Monday that it had raised $1.6 billion in its initial public offering. Emaar Malls, which owns the Dubai Mall, one of the largest shopping centers in the world, with 3.7 million square feet in leasable space and 75 million visitors last year, is being spun off from Emaar Properties, the property giant that is also based in Dubai.” (The New York Times)
  5. Hotels Will Break Records on CapEx This Year “The amount spent on capital expenditures for the US lodging industry is forecast to exceed the prior record level spent in 2013, for a new record level of $6 billion, an increase of 7%, according to a new report by Dr. Bjorn Hanson, clinical professor at New York University’s School of Professional Studies Preston Robert Tisch Center for Hospitality and Tourism. There were decreases of 40% in 2009 and an additional 18% decline in 2010 in response to decreasing occupancy, ADR, RevPAR, and profits in 2009, but expenditures have increased every year since 2010, according to Hanson, who before joining the NYU faculty held the position of global industry leader, hospitality and leisure, at Pricewaterhouse Coopers LLP.” (GlobeSt.com)
  6. Stalled Mall Impedes Christie’s Plan After Casinos Fail “Governor Chris Christie came to office in 2010 staking New Jersey’s economic turnaround on the resurrection of two stalled construction projects. Now, one is a $2.4 billion flop, and the other is years behind schedule. American Dream, the vacant East Rutherford megamall that Christie once called ‘the ugliest damn building in New Jersey, and maybe America,’ hasn’t signed investors almost a year after his administration agreed to public financing and a $390 million tax break, the biggest of its kind in state history.” (Bloomberg)
  7. American Apparel hires turnaround expert as interim CEO “Struggling apparel retailer American Apparel Inc said it had hired Scott Brubaker, a managing director at turnaround firm Alvarez & Marsal, as interim chief executive, three months after ousting controversial CEO and founder Dov Charney. The company also named Hassan Natha, a former Nike Inc executive, as chief financial officer.” (Reuters)
  8. Ron Johnson is getting back in the game “Ron Johnson, formerly of J.C. Penney, Apple, etc., is getting ready to launch a new venture that Jessica Lessin of The Information website describes as ‘Best Buy's Geek Squad meets Apple's Genius Bar.’ According to the report by Ms. Lessin and another by MacRumors, Mr. Johnson's new venture will be an upscale, on-demand delivery service for hi-tech gadgets. Mr. Johnson, according to both sites, has also looked to recruit former Apple employees to join him in his new venture, a public first since his disastrous tenure as CEO of J.C. Penney.” (RetailWire)
  9. Jade Developers Win $284M Construction Loan “Back to back mega condo loans prove that the capital markets are still interested in Miami’s luxury landscape. Just days after Cohen Financial announced a $167 million construction loan for its Muse condo in Sunny Isles Beach, Fortune International Group has closed a construction loan up to $284 million for Jade Signature. HSBC provided the loan, but was not immediately available for comment. ‘We value our longstanding relationship with HSBC, which has financed many of our properties and projects,’ says Edgardo Defortuna, CEO and founder of Fortune. Over 80% of the luxury condominiums are under contract.” (GlobeSt.com)
  10. Iran-Born Billionaire Hakim Emerges With NYC Properties “Billionaire Kamran Hakim was late, and New York Supreme Court Justice Eileen Bransten wanted to know where he was. ‘They’re coming up,’ Hakim’s attorney, Leo Fox, said to Bransten, according to a court transcript. ‘In fact, he just asked me what room number it was.’ Hakim arrived to find two of his brothers and their attorneys waiting in the downtown Manhattan court room. Bransten asked him to remove his hat.” (Bloomberg)
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