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Green light, red light; on the move

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Real Estate News & Analysis: May Edition


Green light, red light; on the move

S&P Global MarketIntelligence offers our top picks of U.S. real estate news stories and morepublished throughout the week. Please note that some entries may have links tothird-party sources that may require a subscription.

Green light,red light

* After a series of twists and turns, the long story of Marriott International Inc.'s proposed of concluded Friday.

Marriott revealed Sept. 20 that the deal finally antitrust clearance from theChinese Ministry of Commerce after some delay, and the transaction was closed on Sept. 23.

* Meanwhile, the three-way of ,Colony Capital Inc.and NorthStar Asset ManagementGroup Inc. is being opposed by the latter's largest stockholder, marking thethird time that thedeal has facedshareholder opposition.

MSD Partners LP and MSD Capital LP who, along with theiraffiliates, own a 10.2% stake in NorthStar Asset Management, argued in a letterreleased this week that the deal does not offer sufficient value toshareholders and that the post-merger entity's proposed governance structure"falls short of good governance norms in many key respects."

David Abrams and certain of his controlled companies, aswell as Land & Buildings Investment Management LLC, previously said thatthey will vote down the transaction.

On the move

* FelCorLodging Trust Inc. President and CEO Richard Smith from his positions andstepped down from the company's board. The company said Sept. 19 that COO TroyPentecost will assume the additional roles of president and interim seniorexecutive officer, effective immediately, and its board will enlist executivesearch firm Spencer Stuart to find a new CEO.

* W. P. CareyInc. announced Sept. 22 that Hisham Kader is as CFO of the company,effective Oct. 14. The company appointed Chief Accounting Officer ToniAnnSanzone interim CFO as it seeks a replacement for Kader, who is relocating toBoston to join an undisclosed private real estate company as CFO. will also succeed Kaderas CFO at W. P. Carey affiliates Corporate Property Associates 17 - Global Inc.and Corporate PropertyAssociates 18 Global Inc.

Pricing out

* MedEquitiesRealty Trust Inc., which targets healthcare assets andhealthcare-related real estate debt investments, the price range of its pendingIPO at $12 to $14 pershare. At the midpoint of the range, the offering of 19 million shares isprojected to bring in gross proceeds of $247 million.

* GramercyProperty Trust Inc. announced Sept. 21 that it a $350 million private placementof senior unsecured notes. The offering, slated to close Dec. 15, comprisessix-year, nine-year and 10-year term notes with an average fixed interest rateof 4.12%.

Cashing in

* VEREITInc. disclosed in a Sept. 19 filing that it a continuous equity offeringthat will run through Sept. 19, 2019. Under the program, the company aims tosell up to $750.0 million of its common shares in at-the-market offerings orcertain other transactions.

* VentasInc.'s operating partnership wrapped up a $450 million senior notes offering and willuse the net proceeds to support general corporate functions, according to aSept. 21 filing. The offering comprises 3.250% senior notes due 2026, whichwere priced at99.811% of their principal amount.

* FirstCapital Realty Inc. said Sept. 22 that it a C$150 million bought-dealoffering of 3.604% series T senior unsecured debentures due May 6, 2026. Partof the net proceeds from the offering, set to close Sept. 29, will go towardplanned acquisitions.

Buying up

* RetailProperties of America Inc. said Sept. 20 that it is the One LoudounDowntown property in Ashburn, Va., in a deal worth as much as $163.1 million.The transaction is expected to close in phases from 2016-end through the 2017third quarter. Miller & Smith and North America Sekisui House LLC areselling the property, which is part of the 360-acre One Loudoun master plannedmixed-use community.

* Hines GlobalREIT II Inc. disclosed in a Sept. 22 filing that it is two adjacent shoppingcenters aggregating 600,071 square feet in Cincinnati. The company is forkingout $190.0 million, excluding transaction costs and working capital reserves,for the properties known as Rookwood Pavilion and Rookwood Commons.

Selling off

* SimonProperty Group Inc. unloaded three malls spanning about 2.8 million squarefeet in Louisiana, New York and Mississippi with an aggregate value of morethan $200 million. The buyer was a joint venture between Pacific Retail CapitalPartners LLC and an unnamed investment partner, according to a Sept. 19 release.

* LexingtonRealty Trust is reportedly nearing a deal to three land parcels in New YorkCity to BH Properties for more than $300 million. Acquired by Lexington for$302 million in 2013, the land parcels feature three hotels and are net-leasedto tenants through 2112 via ground leases, according to a Sept. 20 report from The Real Deal.

* WashingtonReal Estate Investment Trust announced Sept. 22 that it the sale of the51 Monroe andOne CentralPlaza properties in Rockville, Md., bringing in total proceeds of$128.5 million. The transaction caps off the company's sale of a six-buildingsuburban office portfolio in the state.

Stocking up

* ValueAct Capital Master Fund LP plans to as much as $250 millionof CBRE Group Inc.'sclass A common stock starting Sept. 19 through March 19, 2017. The fund, whichjointly owns a 10.3% stake in the company with its affiliates, engaged GoldmanSachs & Co. as the broker for the purchase of the shares, according to aSept. 19 filing.

Featured during theweek on S&P Global Market Intelligence

Data Dispatch:106 North American real estate companies increase dividends YTD:More than one-third of SNL-covered North American real estate companies hadraised their dividends through Sept. 16.

Data Dispatch:Farmland like data centers of yesterday — small but poised to flourish:The farmland REITs' still-small market caps are a limiting factor in a marketthat prizes liquidity, but observers see promise for further consolidation andgrowth in Farmland Partners' acquisition of American Farmland.

Recurring reports

Best of SNL: Real Estate, ; Real Estate, 

The Property Ledger: Duke Realty picks up Calif. development site; Terreno buys Calif.industrial facility; Griffin Capital buys SC research facility; Condor Hospitality sellsKy. hotel

Hires and Fires: Real Estate moves through Sept. 21, North America edition