Getinge has made a bid to buy Pulsion Medical Systems, a German maker of cardiac monitors, for about $189 million in a deal that could be finalized in the first quarter of next year. With Pulsion having a global sales force of about 130 people, Getinge expects to bolster the commercial rollout of its Eirus device designed for continuous lactate and glucose monitoring.
Property owners are stepping up their repayment of troubled loans in commercial mortgage-backed securities. That development is dismaying to investors who invested in these securities on the premise that the securities would generate a higher interest rate for a longer period. "We're starting to see the thaw of the market, and distressed property loans you thought might be around for a while longer can now be resolved pretty quickly," said Gary Greenberg with Payden & Rygel. "It's great for commercial real estate, but it may not be the best thing for CMBS."
Global prime markets are now fully valued and investors will likely pay more attention to secondary markets this year, says David Green-Morgan, global capital markets research director at Jones Lang LaSalle. He also noted that the Asia-Pacific region suffered from the cooling measures in China last year but now the Chinese economy is gathering steam. Also, property investors are diversifying their portfolios with bricks-and-mortar investments and REIT shares.
Starwood Capital Group Chairman and CEO Barry Sternlicht says that financing available for commercial real estate now is ideal as the spread between low interest rates and the money that real estate generates is "truly astonishing." Assets can still be purchased below replacement costs, he noted.