CPN - September 2008 - (Page 6) BUZZWORTHY NEWS TRENDS Middle Eastern Sovereign Wealth Funds Find Riches Though oil prices leveled off in the middle of August, Middle Eastern sovereign wealth funds are not expected to fade from the scene anytime soon. They control some $3 trillion in assets,mostly in oil, according to Cushman & Wakefield Inc., and a panel at the National Association of Real Estate Investment Trusts’ June REIT Week event predicted that the number could triple over the next seven years. Given that the current U.S.credit crunch has left many unable to repay the loans they took out for large portfolio buys in the past few years, the funds may see these properties as low-hanging fruit. Recent U.S. activity has already included a number of big buys, most notably the Abu Dhabi Investment Council’s early July purchase of a 90 percent stake in New York City’s Chrysler Building for a reported $800 million. The Abu Dhabi Investment Council purchased a 90 percent stake in the Chrysler Building in July. Deal Trends Weeks earlier, Meraas Capital L.L.C. bought the General Motors Building, also in New York City, for $2.8 billion through a joint venture. But while the weak dollar and high market liquidity make U.S. assets naturally attractive to foreign investors, the United States is not ON THE RADAR the only market drawing interest. In August, Oman Investment Fund acquired a 50 percent stake in the Jurys Inns hotel chain, which has properties in the United Kingdom and Ireland, from Quinlan Private. And Dubai Holdings broke ground in late June on a 7 million-squarefoot Universal Studios theme park in the emirate’s $64 billion Dubailand. —Reach news writer & economic editor Adam Perrotta at adam.perrotta@nielsen.com. New York City: While New York City is always attractive, demand for area office space has been escalating. In July, Manhattan Commercial Realty leased office space totaling 15,000 square feet to five companies, and ADT Security Services Inc. signed a 10-year, 14,000-square-foot lease at 229 W. 28th St. Small leases are not the only ones happening; in early August, financial services firm BDO Seidman L.L.P. inked a 15-year lease for 121,000 square feet in SL Green Realty Corp.’s 100 Park Ave. International: Industrial giant ProLogis has been active in overseas leasing. In July, the firm rented out 100 percent of a 234,000-squarefoot distribution center in China to Anji-TNT Logistics and 205,000 square feet to Nittsu Sinotrans Logistics Dalian Ltd. And in France, it leased 252,000 square feet of distribution space to Schenker S.A and 277,000 square feet to Cedilec. —Reach staff writer Elena Gontar at egontar@cpngroup.com. Lenders Step Up to Fill CMBS Spot With credit markets still stalled as CMBS lenders sit on the sidelines, some firms have been stepping up to fill the resultant lending void. In late July, Perseus Realty Partners L.L.C.launched a $1 billion participating-loan program for office, retail, industrial and multi-family investments nationwide. The program will specialize in new developments, acquisitions for renovation and total recapitalizations. PKF Capital has also established a new financing program, this one focused on the hospitality sector, to orchestrate debt and equity financing for construction loans that can serve as a bridge to refinancings. In both cases, the firms are taking advantage of the dislocation in the lending market that resulted from the elimination of CMBS lenders. While many other types of lenders previously could not compete with CMBS financing, they can now get their money out. —Adam Perrotta Paid to the orde At Arbor, we take being your financial partner seriously.With our unsurpassed range of unique lending solutions, you can count on us for whatever you need, whenever you We’ll custom design your financing and fund it too.We believe in growing financial partnerships, that's why most of our clients are repeat borrowers. FANNIE MAE • FHA • CMBS • BRIDGE • MEZZANINE • PREFERRED EQUITY 1-800-ARBOR-10 • www.arbor.com http://www.arbor.com
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