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Digital Realty to merge with DuPont in $7.6B deal; NY tower obtains $430M refi

* The U.K.'s governing Conservative Party lost its parliamentary majority in elections June 8, but will remain the largest force, leaving the identity of the next government in doubt just as negotiations on the country’s departure from the European Union are about to commence.

The pound plummeted against the dollar as Prime Minister Theresa May's gamble on asking voters for a mandate to tackle Brexit talks backfired in spectacular fashion.

Commercial real estate

* Digital Realty Trust Inc. and DuPont Fabros Technology Inc. entered into a definitive agreement to merge in an all-stock transaction worth approximately $7.6 billion in enterprise value.

While the transaction has been unanimously approved by the boards of directors of both companies, closing of the merger deal, which is subject to the approval of the companies' shareholders, is slated to take place in the second half of 2017.

* Orda Management Corp. has obtained a $430 million refinancing package from Barclays, for its 225-233 Park Ave. South tower near Union Square, Gramercy Park and Madison Square Park in Manhattan, N.Y., Commercial Property Executive reported. The 10-year, fixed-rate, interest-only loan replaced a previous $217 million debt from the New York State Teachers' Retirement System, the report noted.

Facebook and BuzzFeed are among the tenants of the fully leased 675,000-square-foot, class A office building.

* InterContinental Hotels Group Plc and Brack Capital Real Estate are seeking more than $176 million for their boutique Hotel Indigo at 171 Ludlow St. in Manhattan's Lowest East Side in a deal that excludes the hotel's 10,400-square-foot retail space and 19,000-square-foot garage, The Real Deal reported.

Shai Shamir, CEO of Brack's U.S. operations, said he expects the 294-room hotel to fetch more than $600,000 per room, the report added. The partners purchased the property for $45 million in 2011.

* GGP Inc. filled its last vacancy on Manhattan's Fifth Avenue with a 896-square-foot lease at 685 Fifth Ave. to watchmaker Tag Heuer, TRD reported, citing a statement by CEO Sandeep Mathrani at NAREIT's annual REIT Week conference.

Mathrani also revealed that the company is forgoing acquisitions of new Manhattan spaces to focus on improving existing mall properties, the report added.

* Developer Friendship Baptist LLC will file a rezoning application with the City of Atlanta June 9 for a 17-acre site for its proposed $300 million mixed-use community project near the Mercedes-Benz Stadium, the Atlanta Business Chronicle reported, citing CEO Lloyd Hawk.

The project is expected to span more than two million square feet, including 1.76 million square feet of residential space, 134,700 square feet of commercial and 185,600 square feet of offices.

* Adler Group's plan for a $465 million mixed-use project on the north bank of the Miami River moved forward after the City Commission approved the appointment of a special estate counsel in Miami's proposed land swap deal with the developer, Miami Herald reported.

Under the deal, Adler Group would pay an estimated $335 million in rent and sales cuts over the duration of a 90-year ground lease on the city's two-acre property. It would also construct a new administrative building and parking garage in another location in the city, according to the report.

* Partners Real Estate Investment Trust agreed to sell a shopping center, commonly called Thunder Centre, in Thunder Bay, Ontario, for around $39.8 million, representing a gain on the property's current book value. The deal is slated for completion June 30.

* Condominium filings in Manhattan for April totaled 17 units for a total estimated sellout of $77.4 million, compared to the previous month's 133 units with a sellout reaching almost $200 million, as approved by the New York State Attorney General, TRD reported. The report noted that the drop is the lowest monthly count in the last year.

* JP Realty Partners is selling the 20-story Trinity Towers at Stemmons and Inwood Road in Dallas, The Dallas Morning News reported. The office tower, which covers more than 630,000 square feet of space, was bought by the company in 2015 for approximately $50 million. The tower is 97% leased and is being marketed by CBRE, the report added.

After the bell

* A joint venture between Douglas Emmett Inc. and sovereign wealth fund Qatar Investment Authority picked up a 10-story building at 9665 Wilshire Ave. in Beverly Hills, Los Angeles, for about $188 million, The Real Deal reported, citing unnamed sources.

* Omega Healthcare Investors Inc. named Craig Callen as its board's new chairman, succeeding Bernard Korman, who retired, effective immediately.

* Innovative Industrial Properties Inc. appointed Catherine Hastings CFO, succeeding Robert Sistek, who resigned as CFO and executive vice president of investments, effective June 7.

* Plymouth Industrial REIT Inc. priced its IPO of 2.9 million common shares at $19.00 apiece for about $55.1 million in expected gross proceeds.

* CalAtlantic Group Inc. announced that 10.0 million of its shares being offered by MP CA Homes LLC have been priced at $34.25 apiece.


* Owner Glenn Straub said that the former Revel casino in Atlantic City, N.J., will not be opening in June, Press of Atlantic City reported.

Straub said he will miss his self-imposed June 15 deadline for the opening of the 6-million-square-foot property, now called TEN, as he awaits a court decision for his petition to waive a casino license requirement for the company.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng fell 0.13% to 26,030.29, while the Nikkei 225 was up 0.52% at 20,013.26.

In Europe, around midday, the FTSE 100 was up 0.46% at 7,484.35, and the Euronext 100 had risen 0.19% to 1,019.55.

On the macro front

The wholesale trade report and the Baker-Hughes Rig Count report are due out today.

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