A handful of private equity funds, including some managed by Stonepeak Partners and D1 Capital Partners, have acquired a $700 million stake in the cold-storage provider Lineage Logistics, which will use the proceeds in part to continue growing the firm, according to CEO Greg Lehmkuhl. The company also is considering a REIT conversion, a source says.
Both GGP and Macerich have turned to the capital markets in recent days to secure refinancing for their respective properties. GGP secured $550 million from the commercial mortgage-backed securities market for its Christiana Mall in Delaware, while Macerich tapped the life insurance market for $450 million for Broadway Plaza in Walnut Creek, Calif.
An S&P Global Market Intelligence report found that while the massive flows of money into passive investment vehicles -- including exchange-traded funds -- can have an effect on stock prices, they are unlikely to cause market disruption. ETFs have been associated with price swings in high-yield debt, oil and Japanese stocks and, more recently, the sharp drop of S&P 500 stocks in February.
Nareit's Brad Case points out that REITs have protected investors against an underappreciated risk associated with high inflation: the risk of guessing wrong about future price increases. He notes that investors who depend on commodity investments to protect against inflation risk negative returns if inflation doesn't meet their expectations, whereas REITs have historically provided strong returns in both high-inflation and low-inflation environments.
Gap alleges in a lawsuit filed in May that mall operator Westfield overcharged the retailer for its share of mall expenses at more than 24 shopping centers. It is one of many lawsuits retailers have filed against landlords recently as the environment remains harsh for the asset class.
After years of deleveraging and de-risking their portfolios, US REITs are enjoying the fruits of that labor. "A substantial secular shift has taken hold -- REITs now take into account the credit implications of their actions to a far greater degree than in the past," Fitch Ratings Senior Director Stephen Boyd writes.
US housing starts dropped to a nine-month low in June, with residential starts falling 12.3% to a 1.17 million annualized rate. Permits dropped by 2.2% to 1.27 million.
Gap has filed a lawsuit against property owner Westfield claiming that the company used fraudulent accounting methods that required the retailer to pay more than it should have for mall expenses. The dispute, one of several filed by retailers against landlords, claims the actions took place at more than two dozen locations.
Simon Property Group has appointed Kurt Webb as general manager at Houston retail center The Galleria. The 2.4 million-square-foot property has 400 retail tenants, two hotels and three office towers and is the largest mall in the state.
Kendall Village Associates has secured a $60 million refinance loan for Kendall Village Center in Miami from Ocean Bank. The 256,000-square-foot property has 13 buildings.