Plans to double the supply of US government bonds may cause demand to be exceeded and prompt adverse effects, such as wider credit spreads and falls in the dollar and stock market, warns Deutsche Bank economist Torsten Slok. Other market watchers do not share this view, pointing instead to numerous bullish indicators, including significant retail appetite for bonds.
Related Fund Management, a subsidiary of Related Cos., has made a bid for Ladder Capital Corp., offering $15 per share in cash for the commercial real estate lender. Ladder, which in September had $5.9 billion in total assets and $1.5 billion of book equity, has said it will review the offer.
VICI Properties has rejected a proposal from MGM Growth Properties to combine in a deal in which MGM Growth would buy VICI's outstanding common stock for $19.50 per share. Such a transaction would create one of the largest triple net lease REITs, according to MGM Growth.
Investor Sam Zell says the stock market is exhibiting "irrational exuberance," and he is holding mostly cash while selling real estate holdings. Zell believes the tax overhaul measure and deregulation provide a path to economic growth.
Simon Property Group and Starbucks have agreed to settle a lawsuit filed by Simon in which it tried to stop Starbucks from shuttering its Teavana stores in 77 of the REIT's retail locations. After an Indiana judge ordered a preliminary injunction against Starbucks, the retailer filed an appeal.
New supply entering the self-storage market will dampen the growth the sector has seen for the last several years, analysts say. REITs in this sector maintain that fundamentals are still sound and point out that it continues to outperform almost every other REIT category.
Liberty Property Trust has sold a portfolio of 14 office and light-industrial buildings in King of Prussia, Pa., for $76.9 million. It is part of the REIT's larger strategy of disposing of its suburban office space.
Prologis has been focusing on building up a reserve of permitted land sites in strategic locations ever since its 2011 merger with AMB Property, according to Chief Investment Officer Michael Curless. "Our land bank is heavily geared toward the global markets, so we feel we're well-positioned to do our best again in 2018," he says.
Mehta Investments, the new owners of West Oaks Mall in Houston, may convert the shuttered Macy's location into an outlet store called The Outlet at West Oaks. The long-term plans are to create a town center style of development with a combination of entertainment and retail.
Stockland has received approval in Perth, Australia, for the development of Whiteman Edge Town Centre, the company's fifth retail center in the region. The yet-to-be-designed property will be within the Whiteman Edge master-planned community and will include a supermarket, 15 specialty shops, a child care center and a medical center.
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