Walmart will likely make new acquisitions of companies ranging from $50 million to $300 million, according to Marc Lore, the company's online chief. The company will continue to invest in Jet.com, but will also buy online startups to continue to compete with Amazon.
Ventas and developer Wexford Science & Technology unveiled their $220 million redevelopment of Providence, R.I.,'s South Street Landing late last year. Once an empty building, it now has 136,000 square feet serving as administrative offices for Brown University and 132,000 square feet housing the Rhode Island Nursing Education Center.
Columbia Property Trust has successfully repositioned its portfolio into a select number of high-value, big city assets by channeling the proceeds of the sales of its suburban assets into purchases in New York, San Francisco and Washington. "We believe, over time, that these three markets present the most compelling case for rewarding our investors, and that's why we've chosen to build our team and portfolio around them," says CEO Nelson Mills.
US sales of existing homes rose 3% in February to a seasonally adjusted annual rate of 5.54 million, according to the National Association of Realtors. The increase follows declines in December and January.
The CMBX 6, a subprime commercial real estate debt index, is surprising investors who anticipated that recent announcements of retail closures would hurt it. The index has rallied even as Toys 'R' Us plans to close its stores and Claire's has filed for bankruptcy.
Westfield London, soon to be the largest retail center in Europe, has begun construction on the first phase of a $1 billion project. The project will include 740,000 square feet of new space for more than 90 new tenants.
Seasons of Tuxedo, a retail development in Winnipeg, Manitoba, Canada, will see the addition of The Rec Room, a "social playground" from Cineplex. The project includes the development of 40,000 square feet of space for live entertainment, restaurants and an arcade.
France's Klépierre, in which Simon Property Group has a 21% stake, announced that it made an unsolicited $6.8 billion bid for Hammerson this month. The offer was rejected because it wasn't high enough, illustrating the demand investors have for retail properties in Europe -- and these properties' high valuations despite the 15% discount at which retail REITs in continental Europe are trading.
Public and corporate pension plans are invested in commercial real estate, but research from CEM Benchmarking suggests they are underweighting REITs. Listed equity REITs were the study's top-performing asset class with the highest average annual net return, but REITs only represent 0.6% of total pension fund asset allocations, according to CEM Benchmarking Senior Research Analyst Alexander Beath.
Morrison Foerster is working with companies in several unique asset classes for REIT IPOs, according to David Slotkin, co-chair of the law firm's corporate finance and REIT practices. The market for IPOs is tight now, says Justin Salon, co-chair of the REIT practice and a partner in the corporate finance practice, but Slotkin adds, "There's hope that the right, interesting story will still be able to get out into the market at the appropriate time."