The broader markets and real estate investment trusts closed in the red Tuesday, Dec. 5, as Brookfield Property reportedly struck a property stake deal with Blackstone and closed the purchase of the Houston Center.
The MSCI US REIT Index (RMZ) fell 0.83% to 1,153.91, and the SNL US REIT Equity Index ticked down 0.01% to 318.55. The Dow Jones Industrial Average slipped 0.45% to 24,180.64, while the S&P 500 lost 0.37% to end the day at 2,629.57.
Brookfield Property Partners LP reportedly agreed to sell a 49% stake in its One Liberty Plaza office building in lower Manhattan, N.Y., to Blackstone Group LP in a deal likely to be finalized by the end of 2017. The transaction values the 2.3 million-square-foot property at more than $1.5 billion, according to the New York Post, citing industry sources.
Separately, Brookfield Property closed on its purchase of the four-building Houston Center from JPMorgan Asset Management Ltd.-advised institutional investors, according to the Houston Business Journal. The mixed-use property was placed on the market in June and an $875 million deal was signed in September.
Brookfield Property shares declined 3.03% to close at $21.45.
Vornado Realty Trust priced a $300 million series M preferred stock offering and granted the underwriters a 30-day option to buy up to $45 million in additional preferred shares. The company will use the net proceeds to help fund a series G preferred share redemption, among other purposes.
Vornado shares fell 0.53%, closing at $76.91.
SL Green Realty Corp. and Bank of China Ltd. added $244 million in financing for the Industry City complex in Brooklyn, N.Y., expanding the loan on the property to $647 million. The additional financing will be used for the next phase of development of the six-acre property, according to the Commercial Observer.
SL Green shares dropped 1.29% to close at $102.61.
Boston Properties Inc.'s operating partnership raised estimated net proceeds of roughly $841.2 million from its just-completed $850 million senior notes offering. The net proceeds will go toward the redemption of certain senior notes.
Boston Properties shares slid 1.84% to close at $125.49.
Equinix Inc.'s ratings were affirmed by S&P Global Ratings after the company unveiled its plans to launch a €1.0 billion senior notes offering. The company's rating outlook was revised to positive from stable, which S&P said reflects positive momentum in Equinix's business, among other factors.
Equinix shares climbed 0.75% to close at $445.59.
Joseph Stilwell of the Stilwell Group and related entities nominated Stilwell himself and STOV Advisory Services LLC President and former D.A. Davidson & Co. analyst Paula Poskon for election to Wheeler Real Estate Investment Trust Inc.'s board. The nomination is for Wheeler's 2018 annual shareholder meeting and is intended to maximize shareholder value at the company, according to an ownership filing.
Wheeler REIT shares jumped 2.62%, closing at $10.56.
CorEnergy Infrastructure Trust Inc. is buying Prudential Insurance Co. of America's 18.95% stake in Pinedale Liquids Gathering System in a $32.8 million transaction expected to close by Dec. 31. Prudential Capital Group LP, which manages the asset, will provide $41 million in asset-level financing.
CorEnergy shares lost 0.56% to close at $35.80.
Summit Industrial Income REIT upsized its equity offering to 12,500,000 units from 11,120,000 units, for expected gross proceeds of roughly C$90.0 million. The proceeds will be used in part to help fund the company's planned acquisition of a four-property portfolio in greater Toronto for C$66.1 million and a potential C$72.0 million deal to buy a 10-property portfolio in the city.
Summit Industrial shares slipped 2.70%, ending the day at C$7.22.
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