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KKR, Brookfield form property JVs; Monmouth, Bluerock weigh options


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KKR, Brookfield form property JVs; Monmouth, Bluerock weigh options

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

The green bond market for real estate investment trusts has been gaining ground in recent years as developers and investors start to prioritize environmental and sustainability factors. In U.S. REIT debt offerings so far in 2021, green bond offering proceeds comprise 16.4% of the raised capital. 2021 is on track for an all-time high for green bonds' share of REIT debt, which was at 10.3% in 2020.

REITs in the office, apartment, healthcare life science, retail and data center segments are among new and repeat green bond issuers. Even REITs in the warehouse segment are interested in sustainability, according to Ana Lai, a senior director and real estate sector lead at S&P Global Ratings. The number of sustainability-oriented debt investors is growing, which could result in more demand for green bonds and thus cheaper pricing compared to standard debt securities, according to an S&P Global Market Intelligence data dispatch.

Billion-dollar ventures

* Private equity giant KKR & Co. Inc. formed a joint venture with Cornerstone Cos. Inc. to acquire more than $1 billion of U.S. diversified healthcare real estate assets in the next few years. KKR recapitalized 25 properties owned by the healthcare real estate company to seed the joint venture portfolio.

* A private real estate fund of Brookfield Asset Management Inc. is teaming up with King Street Properties LLC to invest almost $1.5 billion in equity capital toward the Boston-based developer's life science real estate projects.

Weighing options

* Industrial real estate investment trust Monmouth Real Estate Investment Corp.'s board is recommencing its strategic review after a planned merger with Equity Commonwealth failed to win shareholder approval.

* Bluerock Residential Growth REIT Inc. is exploring strategic options and has hired an adviser, Bloomberg News reported, citing sources with knowledge of the matter. The potential options include an outright sale or a recapitalization.

Property deals

* Rexford Industrial Realty Inc. bought four industrial properties with 837,500 square feet of improvements in Southern California infill markets for a combined $250.5 million.

* Healthpeak Properties Inc. paid $180 million for the four-building headquarters campus of Raytheon BBN Technologies Corp. in Cambridge, Mass., the Boston Business Journal reported, citing Middlesex County deed.

* The Howard Hughes Corp. sold three hotels in Greater Houston to a joint venture between Lowe and an unnamed institutional investor for $252 million.

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