Tag Archives: billion

Unique: Toronto'' s Wynn Household Offering $1 Billion Real Estate Portfolio

Timbercreek Property Management Expected to Purchase Canadian Holdings, Some US Assets of Apartment Or Condo Owner Wynn Group

Pictured: West Lodge Towers at 103-105 W. Lodge Ave. in Toronto.Wynn Group of Companies, among Toronto’s largest multifamily property owners, has consented to sell more than$ 1 billion worth of possessions to Timbercreek Property Management, CoStar News can report. Sources confirmed that Timbercreek, a Toronto-based possession

management firm, has remained in settlements for months with the family-owned Wynn Group, which has more than 4,500 residential units and 3 million square feet of business space, according to the business’s website.” It’s a monster deal, “stated a market source.

” It’s 3 siblings [at Wynn] Their daddy, Phil Wynn, developed the portfolio and the children took it to the next level.” The portfolio is thought to consist of a chance for Timbercreek to update some of the portfolio’s aging homes and additional development capacity. The offer is not expected to close for months, and there is no guarantee that it will.

Neither Timbercreek nor Wynn authorities were available to talk about the arrangement. Needs to the deal close, it would be another major acquisition in the Ontario market for Timbercreek, which just purchased the Main and Main portfolio last month, a collection of 19 commercial residential or commercial properties in Ottawa and Toronto worth about $500 million. Timbercreek partnered with Trinity Developments on that offer, later selling off some of the assets.

Developed more than 40 years earlier, Wynn Group of Companies is a multi-faceted business involved in physical fitness clubs, renewable resource, storage, plastic injecting molding and assembly, furnishings and devices. The business has holdings in Los Angeles, the Dominican Republic and Israel through its Wynn Group International affiliate.

Through GoldWynn USA, it owns multifamily residential or commercial property in Tulsa, Los Angeles and Buffalo. Inning accordance with the publication TulsaWorld, Wynn Group paid US$ 26.7 million through its subsidiary, Wynn Residential USA, for 900 apartment or condos in five structures in Tulsa – Oklahoma’s 2nd largest city – in 2015.

The deal between Timbercreek and Wynn is said to consist of all Wynn’s multifamily homes in Canada in addition to 5 homes in Tulsa and 2 in Buffalo. However, none of the Los Angeles homes are consisted of, inning accordance with a source.

” It makes good sense for Timbercreek due to the fact that the Wynn properties are in pretty good locations like Parkdale,” said another source, referring to a rapidly enhancing area in Toronto. “Somebody can enter there and upgrade the buildings.”

Wynn has near to 3,000 apartment or condos topped more than 20 structures in the Greater Toronto Area, making it one of the dominant players in Canada’s biggest city where Canada Home mortgage and Housing Corp. states the vacancy rate is just somewhat more than 1 percent.

Much of Wynn’s Toronto house stock caters to tenants trying to find economical systems as opposed to the newer luxury product on the marketplace.

” It is possible to discover inexpensive apartments for rent in Toronto, all without compromising style and features. Just have a look at our unrivaled rental offerings – we feel sure you’ll concur,” the real estate business promotes in promoting its portfolio. Nevertheless, some of Wynn’s apartment buildings have been criticized by both occupants and city authorities for their absence of upkeep and basic upkeep, and cited by the city’s local, licensing and standards branch for violations which the property owner resolved.

One real estate market source explained the Wynn’s as “difficult mediators” and “basic” operators who know the worth of a dollar. “Pass their head workplace at Dupont Street and you will see they are no frills,” he said.

In its fourth-quarter cap rate report, Cushman & & Wakefield noted historically low cap rates for high-rise apartments in Toronto, hovering in between 3.6 percent and 4.0 percent.

Wynn has recently been selling a few of its real estate portfolio. Last month, a Wynn entity offered the Waverly Hotel place at 484 Spadina in Toronto to Fitzrovia Real Estate, with plans now calling for a new 15-storey residential structure. Fitzrovia outbid Timbercreek for the residential or commercial property, paying $23.6 million.

Garry Marr, Toronto Market Press Reporter CoStar Group.

Prologis to Acquire DCT Industrial Trust for $8.4 Billion in Newest High-Dollar Merger

Upgraded: Declared Pairing of Logistics REITs Expected to Inspire More M&A in Red-Hot Logistics Sector and Beyond

Prologis Inc., the world’s biggest logistics homeowner, has actually agreed to purchase Denver-based DCT Industrial Trust Inc. for $8.4 billion in stock and presumed debt.

The boards of directors of both business all approved the all-stock definitive merger agreement in which Prologis will add DCT’s existing 71 million-square-foot portfolio plus 7.1 million square feet of development and redevelopment projects and 195 acres of land, primarily in Seattle, Atlanta, South Florida and Southern California, with advancement capacity of 2.9 million square feet.

The merger also includes 215 acres of jobs under agreement or alternative for sale in New york city and New Jersey, Southern California, Northern California and Chicago with build-out potential of more than 3.3 million square feet.

The portfolio boosts Prologis’ (NYSE: PLD) existence in such high-growth markets as Southern California, the San Francisco Bay Area, New York and New Jersey, Seattle and South Florida. Prologis Chairman and Chief Executive Officer Hamid Moghadam said the San Francisco-based REIT has for some time thought about DCT’s portfolio to be complementary in quality, market position and growth capacity.

Gene Reilly, Prologis CEO of the Americas, kept in mind that the company expects to sell off about $550 countless the DCT residential or commercial property over the next two years, less than 7% of the portfolio.

“This high level of tactical fit will permit us to record substantial scale economies instantly,” Moghadam said. “What we’re getting is 71 million square feet of irreplaceable real estate and we’re keeping 93 percent of it. It would have taken us years and years to [aggregate] this portfolio in this type of market.”

Moghadam kept in mind that the two companies’ complementary portfolios in essential submarkets, often within the exact same organisation parks like DCT properties in Sumner, WA; Brisbane, CA in the San Francisco Bay Location and Miami’s Beacon submarket, make the merger better than the sum of its parts.

“Having that type of share and market presence, the capability to move tenants around and the ability to understand renters’ options and have the ability to serve them much better, those are all intangibles that we have definitely not factored into the economics of this deal,” Moghadam said.

Logistics Firms Join Accommodations, Mall Cos. as M&A Targets

Experts stated to anticipate more consolidation activity this year among REITs and other real estate operators.

In addition to the proposed Prologis/DCT merger, Marriott Vacations Worldwide Corp. today agreed to buy ILG Inc. in a stock-and-cash offer valued at $4.7 billion, developing the biggest high-end brand for timeshare getaway resorts. The pairings are the 2nd and third notable property buyout transactions announced this year, in addition to mall owner GGP Inc.’s acceptence of a $9.25 billion cash-and-stock offer from Toronto-based Brookfield Residential Or Commercial Property Partners L.P.

. In the lodging sector, Pebblebrook Hotel Trust last week stepped up overtures to buy LaSalle Hotel Residence, upping its deal to $3.7 billion.The proposed $26.5 billion pairing of T-Mobile United States and Sprint Corp. announced over the weekend might affect millions of square feet of industrial residential or commercial property.

With REITs trading at discount rates to net-asset worths in the mid-teens and the marketplace awash in public and personal capital, 2018 is placed to be a year of combination, REIT analyst Mitch Germain said in a note to customers.

“We prepare for the potential for extra M&A activity as there are record levels of private-equity dry powder on the sidelines and financial obligation funding is easily available,” Germain stated.

Logistics has been amongst the hottest residential or commercial property sectors as e-commerce development has fueled need for more warehouse, including locations near population centers in the last link of the supply chain to deliver online purchases rapidly to consumers. The deal is Prologis’s largest since the $8.4 billion acquisition of AMB Residential or commercial property Corp. in 2011, at the time the second-largest commercial REIT behind Prologis.

John Guinee, expert with Stifel, Nicolaus & & Co., stated financiers must try to find more mergers & & acquisitions activity in the industrial REIT sector amidst excellent operating and leasing conditions and stronger-than-expected e-commerce demand.

“While we do not anticipate a topping quote [for DCT], we do presume that the other industrial REITs will be fielding or warding off acquisition proposals earlier than later on,” Guinee stated.

The merger shows the aggravation of many purchasers and abundance of capital trying to compete for an extremely minimal variety of logistics properties pertaining to market, said John DeGrinis, senior executive vice president, North Los Angeles in Colliers International’s Encino market.

“This does not amaze me,” DeGrinis informed CoStar News, adding he expects to see more M&A activity in the sector. “It was ending up being really apparent a year ago that these two REITs and 30 or 40 other companies are all trying to do the very same thing, which is buy and lease industrial properties or purchase land to develop assets.”

“Bear in mind that when a big portfolio pertains to market, there are probably 100 entities that would enjoy to purchase it, but 40 people that get the offering memorandum and only one wins,” DeGrinis added. “It’s so tough that I was wondering when the REITs would start taking control of one another as another way to generate properties.”

Under the terms of the offer expected to close in the third quarter, DCT shareholders will get 1.02 Prologis shares for each DCT share. The cost represents an approximately 16% premium for DCT investors. Prologis anticipates DCT President and CEO Philip Hawkins to sign up with the Prologis board of directors.

Matt Kopsky, REIT expert with Edward Jones, said the merger is an excellent strategic fit, as DCT owns storage facilities in high-growth markets, which overlap perfectly with Prologis’s portfolio.

“DCT has a robust development pipeline in core markets,” Kopsky said. “While a great deal of [the pipeline] is speculative, our company believe there is strong demand in these markets to fill them rapidly.”

While the financial cycle remains in its later phases, Kopsky stated commercial property markets have strong staying power provided the growth in e-commerce demand and the modernization of supply chains to accommodate that development.

“Well-located commercial realty has prices power and we believe that Prologis paid a fair cost to acquire more of this,” Kopsky stated.

J.P. Morgan is functioning as financial consultant and Mayer Brown LLP serving as legal advisor to Prologis. BofA Merrill Lynch is working as financial consultant and Goodwin Procter LLP as legal advisor to DCT.

Editor’s note: This story was upgraded at 12:50 pm and 4:55 pm PT with extra merger activity and analyst commentary.

Prologis to Acquire DCT Industrial Rely On $8.4 Billion Merger

San Francicso-Based REIT to Acquire 71 Million SF in Largest Offer Considering That 2011 AMB Property Merger

Prologis Inc., the world’s biggest logistics homeowner, has actually agreed to purchase Denver-based DCT Industrial Trust Inc. for $8.4 billion in stock and assumed debt.

The boards of directors of both business all approved the all-stock definitive merger contract in which Prologis will include DCT’s existing 71 million-square-foot portfolio plus 7.1 million square feet of development and redevelopment jobs and 195 acres of land, primarily in Seattle, Atlanta, South Florida and Southern California, with advancement capacity of 2.9 million square feet.

The merger likewise consists of 215 acres of jobs under agreement or option for sale in New york city and New Jersey, Southern California, Northern California and Chicago with build-out capacity of more than 3.3 million square feet.

The portfolio strengthens Prologis’ (NYSE: PLD)existence in such high-growth markets as Southern California, the San Francisco Bay Location, New York City and New Jersey, Seattle and South Florida. Prologis Chairman and President Hamid Moghadam said the San Francisco-based REIT has for some time thought about DCT’s portfolio to be complementary in quality, market position and development potential.

“This high level of tactical fit will allow us to record considerable scale economies immediately,” Moghadam said.

Logistics has been among the most popular residential or commercial property sectors as e-commerce development has fueled need for more warehouse, consisting of locations near population centers to ship online purchases rapidly to customers in the final link of the supply chain. The deal of Prologis’s largest given that the $8.4 billlion acquisition of AMB Property Corp. in 2011, at the time the second-largest industrial REIT behind Prologis.

Under the terms of the offer expected to close in the 3rd quarter, DCT investors will get 1.02 Prologis shares for each DCT share. The price represents an approximately 16% premium for DCT investors. Prologis expects DCT President and CEO Philip Hawkins to sign up with the Prologis board of directors.

Matt Kopsky, REIT expert with Edward Jones, stated the merger is a great strategic fit as DCT owns storage facilities in high-growth markets which overlap perfectly with Prologis’s portfolio.

“DCT has a robust development pipeline in core markets,” Kopsky said. “While a lot of [the pipeline] is speculative, we believe there is strong demand in these markets to fill them rapidly.”

While the economic cycle is in its later stages, Kopsky stated industrial home markets have strong remaining power offered the growth in e-commerce demand and the modernization of supply chains to accommodate that development.

“Well-located industrial real estate has rates power and we believe that Prologis paid a reasonable price to get more of this,” Kopsky stated.

J.P. Morgan is functioning as financial advisor and Mayer Brown LLP serving as legal advisor to Prologis. BofA Merrill Lynch is serving as monetary advisor and Goodwin Procter LLP as legal advisor to DCT.

Prologis and DCT (NYSE: DCT) will go over the transaction in conference call Monday at 9 a.m. Eastern time.

Carl Icahn Cashing in His Chips on Tropicana Entertainment, Gathering $1.85 Billion

Eldorado Resorts to Get Tropicana Entertainment Business; Sell Residence to Gaming & & Leisure

Tropicana Atlantic City

Icahn Enterprises consented to sell its majority-owned subsidiary, Tropicana Home entertainment Inc., for a total cost of $1.85 billion. The deal will see Tropicana’s realty go to Video gaming and Leisure Properties Inc. and its video gaming and hotel operations to Eldorado Resorts Inc.

. Icahn Enterprises (NASDAQ: IEP)first gotten an interest in Tropicana in 2008 after the predecessor company filed for Chapter 11 insolvency reorganization. It showed to be a winning gamble.

“Tropicana was insolvent and desperately needed brand-new management. At that time, we determined this undervalued asset as being a best scenario to deploy our method operandi, by which we look for to get underestimated possessions, nurture, guide and enhance their condition and operations, and to eventually significantly boost value for all shareholders,” Carl C. Icahn, chairman of Icahn Enterprises, said. “We turned Tropicana into a great casino company that today owns 7 gambling establishments.”

The crown gem of its holdings is the 1,882-room Tropicana Casino & & Resort in Atlantic City, which Icahn picked up for $200 million, or about $106,270 per room.

The 7 combined residential or commercial properties included in the deal overall 350,000 casino square feet, 7,416 slot machines, 237 table video games and 4,993 hotel rooms. The list price corresponds to about $370,520 per space.

Tropicana Atlantic City is third-largest grossing gambling establishment in Atlantic City, drawing in $489 million in earnings in 2017 and posting a gross earnings of $91.9 million, according to the NJ Department of Gaming Enforcement. The revenue was an almost 72 percent jump over 2016 earnings.

In the offer, Gaming and Leisure Characteristic (NASDAQ: GLPI )will pay$1.21 billion for substantially all of Tropicana’s realty. It will enter into a master lease with Eldorado Resorts (NASDAQ: ERI) for the residential or commercial properties. That offer does not consist of the MontBleu Casino Resort & & Spa in South Lake Tahoe and the Tropicana Aruba Resort and Gambling Establishment. Tropicana plans to dispose of Tropicana Aruba Resort and Gambling establishment prior to closing.

Eldorado will participate in a triple-net master lease for the acquired properties with an initial term of 15 years, with renewals of up to Twenty Years at Eldorado’s alternative. The initial annual lease under the regards to the lease is expected to be $110 million.

Eldorado will use a portion of those earnings from the sale of the Aruba property to assist money the remaining $640 million of money factor to consider payable in the acquisition.

Eldorado Resorts will end up owning the running assets of seven casinos in six states, including the Tropicana Laughlin Hotel and Casino and the MontBleu Gambling Establishment Resort & & Medical Spa in South Lake Tahoe; as well as gambling establishments in Indiana (Tropicana Evansville); Louisiana (Belle of Baton Rouge Gambling Establishment & & Hotel); Mississippi (Trop Casino Greenville); Missouri (Lumière Place); and New Jersey (Tropicana Casino and Resort, Atlantic City).

TA Real Estate Pulls in $2 Billion for a New Core Residential Or Commercial Property Fund

Will Target a Diversified Portfolio Across Major U.S. Markets

TA Real estate’s newest offer was the $106.5 million purchase of Gables Woodley Park in Washington DC.TA Real Estate, amongst the biggest real
estate financial investment supervisors in the United States, is set to get bigger -much larger. The Boston-based company has actually introduced a brand-new core home investment with preliminary funding of$ 2.08 billion. The main fund, TA Real estate Core Home Fund, and three connected feeder funds held their very first capital calls late last month. Among the associated feeder funds accepted a single investment from an unidentified outdoors investor of$1.038 billion, according to a filing with the Securities and Exchange Commission. A second associated fund accepted a single investment of$518.8 million. The primary fund will continue to accept brand-new investments after its preliminary raise of$512.8 million. Also a 4th associated fund will continue to accept investments after its preliminary raise of$13.2 million. Authorities with TA Real estate stated they could not comment due to the fact that of the ongoing nature of fundraising. Mitsubishi

Jisho Investment Advisors of Tokyo is dealing with the ongoing securities offerings. TA Realty has been on the roadway this

year making presentations on the fund to numerous public pension funds, including the City of Newport RI, and

the Plymouth County( MA )Retirement Board, which committed$25 million to the fund. TA Real estate is seeking to develop a diversified portfolio of core properties throughout the U.S. Over the previous three years, TA has actually invested about $3.3 billion in all four

major home types, according to CoStar information. About 36%of the spending has been for commercial residential or commercial properties, 34 %office, 24%multifamily, and 6%retail. Not counting TA Real estate’s $2 billion raise, alternative possessions information supplier Preqin reported that 47 private real estate funds held a last close in the first quarter, raising an overall of

$33 billion in financier commitments. Preqin stated it anticipated those figures to rise to 10%as more info appeared. A 10%boost might be enough for the quarter tally to go beyond the previous record embeded in the very first quarter

of 2008 when 79 funds protected$35 billion. Looking ahead, competition for capital shows no signs of easing off with a record 642 funds in market, targeting$ 206 billion.”Exactly what is likewise striking about activity in Q1 is the percentages of funds which have had the ability to raise

more capital than their preliminary target, in many cases by a substantial margin,” said Oliver Senchal, head of real estate items for

Preqin.” Nevertheless, with the sheer variety of funds looking for capital there will be numerous that will fail to close in the year ahead, particularly when commitments are being directed to a smaller sized proportion of supervisors with the longest and greatest track records. “

$1.6 Billion in Debt Buries 9 West

Another weekend, another major retail personal bankruptcy. This time it was privately held Nine West Holdings Inc., a females’s shoe and garments wholesaler, which declared bankruptcy after acquiring about $1.6 billion in debt, the second-largest amount of financial obligation on rating firms’ list of ‘loans of issue’ in 2015.

Coincidentally, the company likewise reported $1.6 billion in earnings in fiscal 2017.

Private equity firm Sycamore Partners Management acquired the company and associated brands in the 2014 for $2.2 billion.

In overall, roughly $925 million of brand-new financial obligation and equity was raised in connection with the 2014 acquisition. Its existing annual interest expense is roughly $113.9 million, compared with just $88.1 million of adjusted EBITDA in 2017.

Over 80% of Nine West’s sales originate from wholesale circulation and sales to outlet store, off-price sellers and mass merchants. Its wholesale units include such brand names as Anne Klein, Bandolino, Gloria Vanderbilt and Jessica Simpson.

However, it also operates 70 brick and mortar retailers – all of which it plans on closing and has petitioned the courts to allow it to cancel the leases on those stores.

9 West Group has actually experienced substantial headwinds in the last a number of years, inning accordance with its interim CEO Ralph Schipani, who mentioned the basic shift away from brick-and-mortar shopping in addition to a shift in customer demographics away from top quality clothing, and altering style and style trends.

Not only did its own retail sales suffer however its wholesale operations saw decreases at much of its big suppliers, such as Sears, Bon-Ton, and Macy’s, inning accordance with Schipani in a bankruptcy court statement. Those declines struck two of Nine West’s the majority of notable product groups too, shoes and denims.

9 West attempted to right those trends by introducing a brand-new brand name, Easy Spirit, designed for a “more youthful, more stylish customer,” but fizzled in forecasting their preferences, Schipani stated, and the effort failed. The brand lost $20 million in 2016. The losses were additional exacerbated by a significant stock purchase that ultimately did not meet sales expectations.

At this point, the business would require substantial capital and operational financial investments to reverse the 9 West Group service, capital the debtors do not have, Schipani said, including the debtors “think this time, attention, and loan would be much better invested in their historically stable jeanswear, clothing and fashion jewelry businesses.”

Going forward, 9 West intends to have the ability to gain bankruptcy court approval to offer its brands to Genuine Brands Group LLC for $200 million.

If approved, Nine West will shutter its existing retail store operations. Rejecting the retail leases will conserve Nine West approximately $3 million in rental and operating expenses per month. The stores published just $125 million in earnings in financial 2017.

The store closures struck two publicly traded retail landlords hardest. Simon Home Group (NYSE: SPG)will lose 35 stores. Tanger Factory Outlet Centers. (NYSE: SKT) will see 19 stores closed. However, neither of the REITs noted 9 West amongst their 10 biggest occupants.

9 West Holdings’ bankruptcy moved the institutional loan retail default rate to 8.6% compared to the overall rate of 2.7%, Fitch Ratings reported today.

The filing lifted the overall retail term loan volume to $5.9 billion.

“Our retail sector institutional term loan default rate projection is 10%, relating to $7 billion of volume, which would surpass the 8.2% rate the sector embeded in 2017,” Fitch reported.

Fitch prepares for more big retail chains to file personal bankruptcy this year. About 10% of the sellers in Fitch’s market index are listed on Fitch’s Leading Loans of Issue list, showing a product default danger. These retail chains consist of: Neiman Marcus Group, Sears Holdings, FullLBeauty Brands, David’s Bridal, Toms Shoes, Indra Holdings, Everest Holdings, Things Kept In Mind, NYDJ Garments and Vince.

Nevada gambling establishment gambling win tops $1 billion again in February

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L.E. Baskow Players take pleasure in a craps game throughout the Golden Gate’s 112th year anniversary celebration on Saturday, Jan. 13, 2018.

Wednesday, March 28, 2018|10:13 a.m.

Nevada casinos continued a winning streak in February, topping the $1 billion mark in betting incomes for the 2nd month in a row.

The state Gaming Control panel reported today that the $1.02 billion that casinos statewide made from gamblers amounted to a 7.7 percent boost compared to the same month in 2017.

For the fiscal year starting last July, the so-called “gaming win” has actually increased 2.3 percent.

The state gained nearly $44.2 million in percentage charges based upon the taxable incomes created in February.

That was a 15 percent decline from the very same period in 2017, when the state gathered almost $52 million.

Gambling establishments on the Las Vegas Strip logged jackpots of more than $603 million for the month, up more than 11 percent from a year previously.

That was just under 60 percent of the statewide total.

GGP Accepts Sweetened Buyout Deal from Brookfield for $9.25 Billion Money Plus Stock

Upgraded: Chicago-Based Mall Owner Accepts Revised Quote With More Cash After Turning Down Initial Deal

Shopping mall owner GGP Inc. (NYSE: GGP)has actually accepted a sweetened offer from Toronto-based Brookfield Residential Or Commercial Property Partners L.P. (Nasdaq: BPY)to sell the remainder of the company Brookfield does not currently own for $9.25 billion cash plus stock.

The companies revealed the offer late Monday. Under the agreement unanimously endorsed by an unique committee of GGP’s board, investors of the Chicago-based retail property owner can choose to get either $23.50 cash per common share, one system of Brookfield Residential or commercial property stock, or one share of BPY U.S. REIT, a new REIT being formed by Brookfield subject to proration based upon a cash factor to consider of $9.25 billion.

The winning cash quote has to do with 2.2% above Brookfield’s preliminary Nov. 13, 2017 offer of $23 per share to buyout GGP. Brookfield currently owns 34% of GGP, and had actually pursued a combination with among the largest owners of U.S. shopping mall, second behind only Simon Home Group (NYSE: SPG), over the past several months.

“This is a compelling deal that makes it possible for GGP investors to get premium worth for their shares and gives them the ability to participate in the long-lasting advantage of their financial investment,” stated Brookfield Property CEO Brian Kingston, in a declaration. “We are pleased to have actually reached a contract and are delighted about integrating Brookfield’s access to large-scale capital and deep operating proficiency across multiple realty sectors with GGP’s portfolio of irreplaceable retail assets.”

Daniel Hurwitz, lead director and chairman of GGP’s special committee, stated the committee carried out comprehensive due diligence given that Brookfield’s preliminary offer.

“After mindful factor to consider helped by our independent consultants, the special committee figured out that Brookfield’s improved proposition, which includes an increase in the money part of the factor to consider and the capability to receive shares in a newly noted REIT entity, provides GGP investors with certainty of value, in addition to upside capacity through ownership in an internationally varied property company,” Hurwitz said.

Stifel & & Associates analyst Simon Yarmaks noted that the transaction structure had actually altered from the initial $23-per-share bid by Brookfield, which was comprised of 50% money and 50% BPY units. In the most recent deal, Brookfield upped its cash deal 2.2% to $23.50 per share for an overall cash factor to consider of $9.25 billion, which represents 61% money and 39% equity in Brookfield or the new REIT it prepares to launch.

Brookfield Residential or commercial property, the realty arm of Toronto-based Brookfield Possession Management Inc., is not currently structured as a REIT.

The combined company will be one of the world’s biggest CRE enterprises with $90 billion in overall assets and annual net operating earnings of more than $4 billion.

Following completion of the deal, GGP shareholders will own about 26% of the combined business.

The transaction undergoes the approval of GGP investors. BPY and its affiliates have consented to vote in favor of the deal, which is expected to close early in the 3rd quarter.

Weil, Gotshal & & Manges LLP, Goodwin Procter LLP and Torys LLP are acting as legal counsel to Brookfield and PwC is working as its tax advisor. Goldman Sachs & & Co. LLC is functioning as financial consultant and Simpson Thacher & & Bartlett LLP is serving as legal counsel to GGP’s special committee. Citigroup Global Markets Inc. is functioning as financial advisor and Sullivan & & Cromwell LLP is working as legal counsel to GGP.

Editor’s note: 6 pm PDT – Added comments from REIT analyst and further information about the modified transaction’s structure.

Final expense of Raiders arena in Las Vegas pegged at $1.8 billion

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Copyright 2017 LV Arena Company, LLC

This rendering reveals the Las Vegas Raiders arena west of Interstate 15 and the Strip. Construction on the 65,000-seat stadium is expected to be finished in time for the 2020 NFL season.

Blackstone REIT Expands '' Last-Mile ' Warehouse Holdings with $1.8 Billion Portfolio Purchase

22 Million-SF Canyon Industrial Portfolio Consists Of Amazon, DHL, FedEx and Coca-Cola Amongst 377 Tenants

Blackstone Realty Earnings Trust, Inc. (BREIT) revealed it has successfully closed on a $1.8 million transaction to obtain a 22 million-square-foot portfolio consisting of 146 infill storage facility and circulation properties throughout the country.

Referred to as the Canyon Industrial Portfolio, the properties were offered by a set of funds sponsored by Boston-based Cabot Properties: Cabot Industrial Worth Fund IV, L.P. and Cabot Industrial Worth Fund IV Manager, LP. Blackstone had previously put the portfolio under contract in late December.

The gotten properties includes 146 “last-mile” structures, with the biggest concentration in Chicago at 4 million square feet accounting for 18% of the portfolio’s aggregate base rent; followed by Dallas (3.22 million SF, 12%), Baltimore and Washington D.C. (1.86 million SF, 12%), Los Angeles and Inland Empire, CA (1.12 million SF, 7%), South-Central Florida (1.12 million SF, 7%) and Denver (1.07 million SF, 6%).

The portfolio’s 377 occupants consist of Amazon, Federal Express, DHL, Coca-Cola, Fiat Chrysler and the U.S. federal government, according to a securities filing.

BREIT noted that the industrial job rates throughout the portfolio’s markets has actually continued to decline over the previous seven years and is presently just 4.6%, while rents have actually increased 5.7% year-over-year.

“The ongoing market lease development in the portfolio’s markets resulted in leas on brand-new leases surpassing leas on expiring leases by 9% in the portfolio during the third quarter of 2017,” Blackstone stated, adding that the portfolio has some leasing upside as it’s presently 90% inhabited.

“BREIT’s portfolio, with its emphasis on steady, income-producing warehouse and apartment or condo assets, is well placed to take advantage of continued tailwinds in these sectors,” stated A.J. Agarwal, Blackstone REIT president and head of U.S. core-plus real estate for the private-equity giant.

The Blackstone-sponsored non-traded REIT buys supported U.S. industrial realty homes, including multifamily, industrial, retail and hotel possessions.

BREIT’s portfolio now amounts to $7 billion over 272 properties, consisting of 33 million square feet of commercial area and 17,200 multifamily houses, with some select-service hotels and grocery-anchored shopping centers.

Blackstone has re-entered the U.S. commercial market in a huge way considering that last year, when it acquired a 38-property portfolio totaling 4.4 million square feet in Southern California from Principle Realty Investors for about $500 million.

In January, the private-equity business consented to buy Canada-based Pure Industrial Real Estate Trust, which owns and operates industrial residential or commercial properties throughout The United States and Canada, in an all-cash offer valued at about $2 billion.