Zoe Hughes
The Japanese fund manager has reportedly handed over control of the Pacific Century Place building that it bought from billionaire Richard Li in 2006 after failing to reach an agreement with creditors.
The industry is preparing itself for the opportunity of a lifetime. But will the opportunity be as big as everyone believes? By Zoe Hughes
Distressed property owners will be allowed to talk to special servicers about restructuring securitised loans before imminent default without triggering tax penalties. The move has criticised for reinforcing the “extend and pretend” attitude of the financial industry.
The US government should introduce a programme to help commercial real estate investors with performing loans refinance debt that is coming due warning the asset class would be the “second shoe to drop”.
The Colony Capital-backed hotel owner, the largest in Europe, has sold a portfolio of budget hotelF1s in a €272m sale-leaseback deal.
The troubled private equity real estate firm has lost control of 120 Howard Street to mezzanine note holder, Prudential Real Estate Investors. PREI financed $23.2m in mezzanine loans at the time of the deal in May 2007.
The firm has agreed to buy up to 148 properties from Sunwest, which filed a pre-packaged Chapter 11 reorganisation plan in August. The SEC sued Sunwest for fraud in March after it almost devolved into a Ponzi scheme.
In the year to the end of June, Virginia Retirement System’s real estate portfolio returned -28.3% compared to a 19.8% benchmark. The pension has lost $12.2bn in value in 12 months.
The Los Angeles-based firm reportedly said it was looking to merge Japan Rental Housing Investments with other J-REITs. Oaktree said the industry was ripe for “consolidation", according to media reports.
Florida's state pension board has totally written off its $250m investment in Tishman Speyer's Stuyvesant Town/Peter Cooper Village deal, joining California's massive teachers' pension, which wrote its $100m investment in the deal to zero.