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WeWork parent may cut IPO valuation; Spirit MTA nears $2.4B asset sale

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

WeWork feels the heat

* The We Co., the parent of coworking giant WeWork Cos. Inc., is contemplating putting a price tag on its planned IPO that would value the company in the $20 billion range, down from the $47 billion mark where it last raised funds, The Wall Street Journal reported, citing unnamed sources.

Adam Neumann, the co-founder and chief executive of We, recently traveled to Tokyo to meet with one of the company's biggest backers, SoftBank Group Corp., to discuss a number of options regarding additional investment, the publication added, citing people briefed on the meeting.

The company also made its first property purchase in San Francisco through its ARK investment fund. We paid about $330 million to Bentall Kennedy for the 20-story, 360,000-square-foot office property at 600 California St., the San Francisco Business Times reported, citing public records and people familiar with the transaction.

Through the property world

* Single-tenant net-lease real estate investment trust Spirit MTA REIT received shareholder approval for the sale of almost all of its assets in a $2.4 billion all-cash deal to Hospitality Properties Trust, with closing expected Sept. 20. Spirit MTA shareholders also approved the company's voluntary liquidation plan.

* Singapore's sovereign wealth fund GIC Pte. Ltd. is in advanced negotiations for the acquisition of a majority stake in the Fairmont hotel portfolio of Oxford Properties Group Inc., Bloomberg News reported, citing people familiar with the matter. The portfolio comprises four hotels in Canada with over 2,200 rooms, with any deal expected to value it at about C$2 billion, the sources said.

* Certain CIM Real Estate Finance Trust Inc. subsidiaries agreed to sell a portfolio of 454 single-tenant properties for about $1.25 billion to Realty Income Corp. The majority of the deal is expected to close in the fourth quarter, with subsequent closings anticipated by the end of the second quarter of 2020.

* TA Realty LLC sold a 96-property logistics portfolio in two separate deals to AEW Capital Management LP and funds managed by private equity giant Blackstone Group Inc. for a total of $1.04 billion. The portfolio spans 8.3 million square feet across 14 high-growth U.S. markets. AEW Capital purchased the 28 Texas properties in the portfolio, while the Blackstone funds acquired the remaining properties spread across 10 high-growth markets.

* Separately, Blackstone sold the 396-acre JW Marriott Desert Ridge Resort & Spa in Phoenix for $602 million to a joint venture of Trinity Real Estate Investments LLC and Elliott Management Corp.-managed funds, according to Phoenix Business Journal. The property includes a 950-room hotel, 212,500 square feet of flexible meeting space, five pools, two golf courses and other amenities.

* Lodging REIT Host Hotels & Resorts Inc. completed its sale of six hotels for a total of about $415 million. The hotels include Scottsdale Marriott Suites Old Town and Scottsdale Marriott at McDowell Mountains in Arizona, Costa Mesa Marriott in California, Atlanta Marriott Suites Midtown, The Westin Indianapolis and Chicago Marriott Suites O'Hare.

* RioCan Real Estate Investment Trust purchased the 50% co-ownership interest in the nearly 1 million-square-foot Yonge Sheppard Centre mixed-use property in Toronto for approximately C$357.6 million, net of certain working capital adjustments, from its co-owner KingSett Capital Inc.'s KingSett Canadian Real Estate Income Fund.

Merging masses

* Lodging REIT Park Hotels & Resorts Inc. entered a $950 million unsecured delayed draw term loan agreement to support its proposed acquisition of Chesapeake Lodging Trust.

* Phillips Edison Grocery Center REIT III Inc. agreed to merge with Phillips Edison & Co. Inc. Under the deal terms, the weighted average merger consideration is $7.59 per share, based on Phillips Edison & Co.'s most recent estimated net asset value per share of $11.10.

* KBS Strategic Opportunity REIT Inc. agreed to acquire single-family-focused Reven Housing REIT Inc. for about $56.9 million in cash. The deal is expected to be completed by the end of October.

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