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Real Estate Briefing - Archive | June, 2009

Credit, economic woes hammer REIT-indexed ETFs

Posted on 30 June 2009 by Laxman  |  Email |Print

From WSJ: Investors who purchased exchange-traded funds tracking real estate investment trusts in hopes of diversifying their portfolio against stock-market shocks have been sorely disappointed.

REITs, which let individuals invest in commercial real estate, have been thumped by the recession and tight lending markets. The companies manage specific types of properties such as shopping malls, apartments and storage facilities……..Full Article (Subscription Required) : Source

Experts disagree over which country will emerge first from the global real estate downturn

Posted on 30 June 2009 by Laxman  |  Email |Print

From Real estate analysts are now looking ahead to a recovery in global property markets but few agree on where the green shoots might appear first.

Global real estate investors, keen to snap up bargain assets, are keenly watching for signs of a sustainable recovery……..Full Article: Source

America’s best and worst cities for families

Posted on 30 June 2009 by Laxman  |  Email |Print

From Forbes: Metros where folks have enough money for everyday expenses, and spots where daily budgets eat up a sizable chunk of incomes.
If you’ve scaled back your summer vacation and swapped dining out for eating in, you’re not alone. Americans everywhere are sweating their daily expenses……..Full Article: Source

Burned U.S. banks may stay shy on real estate

Posted on 30 June 2009 by Laxman  |  Email |Print

From Reuters:The end of the decline in real estate is nowhere near, and yet U.S. banks may feel it shrewd to hold onto troubled loans in the sector rather than sell them or take losses.

“Many of them are remembering that the ’sit on the loan, wait it out, work it out’ strategy did pay off for those with the capability and patience to do that back in the early ’90s,” according to Jacques Gordon, global strategist at LaSalle Investment Management……..Full Article: Source

Optimism for US market

Posted on 30 June 2009 by Laxman  |  Email |Print

From A growing number of overseas property investors are optimistic about the future prospects for the USA property market, with the vast majority expecting to see an industry recovery by the end of the second quarter of 2010, according to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE).

Respondents estimated that USA property investment levels will soar moving forward……..Full Article: Source

U.S. ‘may be seeing bottoming’ of home prices, Lockhart says

Posted on 30 June 2009 by Laxman  |  Email |Print

From Bloomberg: Fannie Mae and Freddie Mac’s federal regulator said home prices may be “bottoming” in the U.S. as government efforts to bolster the market gain traction.

“We’re in a process where we may be seeing some bottoming,” James Lockhart, director of the Federal Housing Finance Agency, said in an interview on CNBC……..Full Article: Source

US property buyers downsizing as small and cheap becomes more popular

Posted on 30 June 2009 by Laxman  |  Email |Print

From Property buyers in the US are looking at smaller places and are increasingly seeking out smaller homes that are cheaper to furnish and heat.

As a result developers are looking to build smaller properties and make a point of offering well insulated homes and those with eco friendly features. They are also cheaper to build……..Full Article (Subscription Required) : Source

Blackstone closes 3rd Europe real estate fund

Posted on 30 June 2009 by Laxman  |  Email |Print

From Blackstone Real Estate Partners Europe III was closed at $3.1 billion, exceeding its $2.5 billion fundraising target.

This is the second real estate fund Blackstone Group closed this year. In April, Blackstone Real Estate Partners VI was closed at $10.9 billion……..Full Article: Source

Losses on UK commercial real estate could equal subprime

Posted on 30 June 2009 by Laxman  |  Email |Print

From FT Alphaville: BNP Paribas analysts are worried about the health of the UK’s commercial real estate sector.
In a note released on Friday, they warned that a “combination of rising vacancy rates, falling rentals and extraordinarily difficult financing conditions will almost certainly drive UK CRE losses higher.”…….Full Article: Source

UK house price falls: Is the worst over?

Posted on 30 June 2009 by Laxman  |  Email |Print

From A surge in buyers coupled with a shortage of new properties for sale is propping up house prices, it is claimed today.
The number of buyers registered with estate agents has risen by 36% in the last six months, while the number of homes on the market is up by just 6.4%……..Full Article: Source

UK’s social housing investment lift won’t help house builders

Posted on 30 June 2009 by Laxman  |  Email |Print

From Dow Jones: The U.K. government’s plan to treble investment in social housing to GBP2.1 billion in the next two years was welcomed by housing associations Monday, but analysts said it wouldn’t help the U.K.’s housebuilders, who remain in the doldrums following the collapse in U.K. house prices.

U.K. Prime Minister Gordon Brown Monday said the government will treble its investment in so-called social housing, to GBP2.1 billion from GBP600 million, enough to create 110,000 new affordable houses……..Full Article (Subscription Required) : Source

Commercial property GBP50bln in debt

Posted on 30 June 2009 by Laxman  |  Email |Print

From The commercial property sector in the UK is reported to be in negative equity of up to £50bn, says Savills.

William Newson, head of valuations at Savills commented that the amount of negative equity was estimated at around 22 per cent of the £225bn of debt outstanding to commercial property……..Full Article: Source

HGI launches two Italian real estate funds

Posted on 30 June 2009 by Laxman  |  Email |Print

From Henderson Global Investors SGR has launched two new real estate funds dedicated to the Italian real estate market. The investment vehicles, DSPF1 Italia and DSPF2 Italia, are closed-end funds reserved for institutional investors.

They will focus on offices, retail and logistics property, both existing assets and developments, all over Italy……..Full Article: Source

Romanian housing starts slumped in May on slowdown in lending

Posted on 30 June 2009 by Laxman  |  Email |Print

From Bloomberg: Romanian housing starts declined at a faster pace in May as wage growth and lending slowed and interest rates remained the highest in the European Union.

Housing starts slumped an annual 29 percent in May to 4,475, compared with a decline of 21 percent in April, the Bucharest-based National Statistics Institute said in an e-mail today. Warmer weather boosted starts 9.9 percent on the month……..Full Article: Source

Realty expects positive impact of Dubai 2020

Posted on 30 June 2009 by Laxman  |  Email |Print

From Hosting large-scale events such as the World Expo and the Olympic Games in 2020 will have a positive impact on the real estate sector, but developers must not over-build in anticipation, said real estate analysts.

“Dubai does have a lot of attributes in order to hold such large-scale events and the Government of Dubai is sending a strong message to the world by announcing the Dubai 2020 initiative……..Full Article: Source

Home prices rise in further hope for Dubai property

Posted on 30 June 2009 by Laxman  |  Email |Print

From Home prices in Dubai rose this month, showing more signs of stabilisation in a market that has seen prices fall by as much as 40 per cent since October, analysts said yesterday.

Average prices increased by about 6.5 per cent to Dh1,285 a square foot in 13 major locations around Dubai compared with the previous month, according to a report by Deutsche Bank……..Full Article: Source

Wave of property mergers expected

Posted on 30 June 2009 by Laxman  |  Email |Print

From The planned merger between Emaar Properties and three units of Dubai Holding is likely to unleash a wave of consolidations in a property sector beset by excess supply, shriveling demand and an abundance of developers, UAE property analysts say.

Mergers and buyouts could help real estate companies streamline their operations and trim payrolls and thus reduce their costs during the downturn, analysts said……..Full Article: Source

Abyaar to acquire Kuwait’s Sanam Real Estate

Posted on 30 June 2009 by Laxman  |  Email |Print

From Abyaar Real Estate Development is planning to acquire a real estate company listed on the Kuwait Stock Exchange, according to person familiar with the deal.

“There are talks for acquisition of Sanam Real Estate Company,” said the source……..Full Article: Source

Asia developers upbeat as home sales rebound

Posted on 30 June 2009 by Laxman  |  Email |Print

From Asian property firms are beginning to see light at the end of the tunnel and several are positioning for an upturn even as the world economy struggles to recover from its worst recession in decades.

The mood among US and European executives at the recent Reuters Global Real Estate Summit was glum, but Asian counterparts were more upbeat with some revealing plans for new projects in anticipation of an upturn later this year……..Full Article: Source

Malaysia: Further easing on property buying by foreigners expected

Posted on 30 June 2009 by Laxman  |  Email |Print

From Analysts believe Prime Minister Datuk Seri Najib Tun Razak will make announcements to further liberalise property ownership by foreigners and boost the attractiveness of Malaysia for investment at the annual Invest Malaysia 2009 conference today.

Following UBS Research’s bullish call on the property sector on June 19, HwangDBS Research yesterday also upgraded its call on the sector, on the back of potential positive policy changes to lift the sector, sales bottoming out, attractive incentive schemes and the resumption of new launches……..Full Article: Source

Japan REIT market hits 8-mth high, more gains seen

Posted on 30 June 2009 by Laxman  |  Email |Print

From Reuters: Japan’s real estate investment trust market climbed to an eight-month high on Monday as investors grew more optimistic about the sector’s financial health and analysts forecast more upside ahead.

Along with property stocks, Japan’s REIT market was hit hard as the global financial crisis pushed down property values and squeezed financing, driving investors out of the market……..Full Article: Source

Realty income: Excellent dividend growth REIT

Posted on 30 June 2009 by Laxman  |  Email |Print

From Realty Income is a superior company for a dividend strategy, whether the sub-strategy is current income or accumulating wealth through dividend growth.
The company has paid monthly dividends without a miss since 1970, and it has raised dividends for 47 consecutive quarters–almost 12 years……..Full Article: Source

Blackstone makes key hire in Asia

Posted on 30 June 2009 by Laxman  |  Email |Print

From Reuters: Private equity firm Blackstone Group has hired a Deutsche Asset Management executive to a new position running its capital raising and other operations across Asia Pacific, the firm said on Monday.

The hire comes as Blackstone, one of the world’s largest private equity companies, increases its presence in Asia. …….Full Article: Source

Willco companies to launch $100 mln real estate investment fund

Posted on 30 June 2009 by Laxman  |  Email |Print

From Willco Companies, a locally owned and managed commercial property development and investment firm founded in the early 1960’s with a five million square foot commercial real estate portfolio, will soon close the $100 million Willco Fund I LP.
This Fund, the first in the firm’s history, is targeting equity and debt investments in commercial office, multifamily residential, and industrial income-producing properties in the Washington, D.C. metropolitan area……..Full Article: Source

Henderson prepares for two-tier sustainability

Posted on 30 June 2009 by Laxman  |  Email |Print

From IPE: Henderson Global Investors is aiming to “future proof” its UK real estate assets against the emergence of a sustainability-led two-tier market, the fund manager announced today in its first responsible investment report (RPI).

The report follows the completion, in 2008, of a six-month sustainability portfolio analysis of Henderson’s £3.3bn UK portfolio, conducted by Jones Lang LaSalle subsidiary Upstream………Full Article (Subscription Required) : Source

NAI Global to offer over $250 mln in investment properties via online auction, sealed bids

Posted on 30 June 2009 by Laxman  |  Email |Print

From Approximately 75 properties valued in excess of $250 million will be offered for sale in NAI Global’s July Commercial Property PowerSale(TM), an ongoing series of national, multi-seller online auctions and sealed-bid sales.

Approximately 58 of the properties in the July Commercial Property PowerSale(TM) will be offered online via a timed auction format………Full Article: Source

Real estate gains from flight to safety

Posted on 29 June 2009 by Laxman  |  Email |Print

From For the richest people in the world, the proverbial flight to safety didn’t just mean flocking to fixed-income instruments or cash and deposits. It also meant increasing their allocation to real estate.

High-net-worth individuals (HNWIs) from the Middle East and Asia-Pacific ex-Japan, in particular, had the highest allocations to real estate. According to the latest World Wealth Report from Merrill Lynch and consulting firm Capgemini, real estate investments picked up in 2008, rising to 18% of total HNWI financial assets from 14% in 2007, when its share had dropped by 10 percentage points from the year before……..Full Article: Source

Real estate market may plunge U.S. into deeper recession

Posted on 29 June 2009 by Laxman  |  Email |Print

From The deepness of the recession is indicated by two sets of statistics that belie the happy talk of its ending.
For new housing sales there is little to indicate a rising sales volume and people who have been living in homes without making payments for 6 months to a year will receive foreclosure notices……..Full Article: Source

America’s most troubled luxury neighborhoods

Posted on 29 June 2009 by Laxman  |  Email |Print

From Forbes: Has the housing market scraped bottom? Not in some of the wealthier neighborhoods–places like New York City’s Greenwich Village, Santa Monica, Calif. and Chicago’s Lincoln Park. They held up nicely while the rest of the country slumped last year.
This year such Tiffany zip codes are on track to fall 15% to 25%……..Full Article: Source

Can Obama keep up with falling home prices?

Posted on 29 June 2009 by Laxman  |  Email |Print

From CNN: Good news or bad news? The National Association of Realtors reported Tuesday that 33% of May existing-home sales were distressed (read: foreclosures and short sales) and the median sales price is now $173,000.

If you’re employed by the glass-half-full NAR, you need to spin that as good news, and the eternal optimists did not disappoint. The trade association pointed out that the share of sales that were distressed has declined from the 45% rate in April……..Full Article: Source

British home prices held their value in June, Hometrack says

Posted on 29 June 2009 by Laxman  |  Email |Print

From Bloomberg: U.K. houses held their value for a second month in June as increased demand and a lack of supply supported residential prices, Hometrack Ltd. said.

The average cost of a home in England and Wales was 155,600 pounds ($257,000), the London-based property researcher said in an e-mailed statement today……..Full Article: Source

Lack of supply and rising demand - is the worst of the house price crash over?

Posted on 29 June 2009 by Laxman  |  Email |Print

From A surge in buyers coupled with a shortage of new properties for sale is propping up house prices, it is claimed today.

The number of buyers registered with estate agents has risen by 36 per cent in the last six months, while the number of homes on the market is up by just 6.4 per cent……..Full Article: Source

UK: House prices to leap 3.4 pc next year

Posted on 29 June 2009 by Laxman  |  Email |Print

From House prices will begin to rebound sooner than previously expected, according to a new report that forecasts a 3.4 per cent leap next year.

The prediction — in the BNP Paribas Real Estate housing report published today and compiled by Professor Patrick Minford, a former economic adviser to Margaret Thatcher — is in contrast to a ­Reuters poll of City economists this month which found prices would remain flat before returning to growth in 2011……..Full Article: Source

UK: House prices ‘will rise by next year’

Posted on 29 June 2009 by Laxman  |  Email |Print

From Telegraph: Confidence in the housing market is continuing to recover, with the majority of people believing that prices will rise over the next year.

A survey by found that 53pc of the 2,500 respondents thought house prices would increase by June 2010 – although only by 0.6pc……..Full Article: Source

Demand for offices in Prague is greater than in London

Posted on 29 June 2009 by Laxman  |  Email |Print

From The Q1 2009 take-up in Prague reached 73 % of the average quarterly take-up of 2005-2008 take-up.
Prague is rated the third best city in the European comparison of 16 cities according to the survey of global property adviser DTZ, despite the prevailing economic situation……..Full Article: Source

Frankfurt, Budapest and Prague top office commercial property market performance

Posted on 29 June 2009 by Laxman  |  Email |Print

From The commercial property market in Prague is performing well despite the prevailing economic conditions but analysts warn that it is still considerably down on last year.

The experts also point out that the relatively good results for Prague, and others in central and Eastern Europe could be due to a delay in the full impact of the global finance crisis……..Full Article: Source

Italy’s Toti Group to sell Roman retail gallery for EUR 180mln

Posted on 29 June 2009 by Laxman  |  Email |Print

From Italy’s Toti Group is in final talks with fund manager Sorgente SGR for the sale of the Colonna retail gallery in Rome for a price of around EUR 180-200 mln, Italian newspapers have reported.
The company has reportedly emerged as the preferred bidder for the prime shopping centre in Rome ahead of the Libian sovereign wealth fund Lafico (Lybian Arab Foreign Investment Company)……..Full Article: Source

Spain is most popular destination for Brits looking for property abroad

Posted on 29 June 2009 by Laxman  |  Email |Print

From British property investors are still showing considerable interest in buying real estate abroad despite the recession, according to the latest figures from an international search website.

Spain is the number one search destination, pushing France into second place, according to the latest figures from……..Full Article: Source

BNP Paribas Real Estate expands in Balkans

Posted on 29 June 2009 by Laxman  |  Email |Print

From Adviser BNP Paribas Real Estate, formerly AtisReal, has announced three new alliances in Albania, Bulgaria and Serbia with Danos & Associates, with whom BNP Paribas Real Estate has had a partnership with in Greece and Cyprus since May 2008.

The first services to be offered are transaction and valuation in commercial real estate (over 90%) and residential, (10%)……..Full Article: Source

Emaar, Dubai Holding merger to create real estate giant worth $ 52.8 bln

Posted on 29 June 2009 by Laxman  |  Email |Print

From Emaar Properties PJSC, the Middle East’s largest real estate developer, on Sunday said its merger with three Dubai companies would create a giant real estate group with an asset base of AED 194 billion (US$ 52.8 billion) and a debt of AED 13.4 billion, or roughly 7 % of the total assets.

In a letter posted Sunday on the Dubai Financial Market’s Web site, Chairman of Emaar Mohammed Al Abbar said its proposed merger with Dubai Holding subsidiaries Dubai Properties LLC, Samar Dubai LLC and Tatweer LLC would take up to four months……..Full Article: Source

Emaar merger to lift realty market

Posted on 29 June 2009 by Laxman  |  Email |Print

From The Dubai developer behind the world’s tallest building plans to merge with three rivals owned by the sheikdom’s ruler, in a consolidation aimed at better coping with a global meltdown fuelled weakness in the one-time Arab boomtown’s real estate sector.

In a statement posted Sunday on the Dubai Financial Market’s website, Emaar Properties said its proposed merger with Dubai Holding subsidiaries Dubai Properties, Samar Dubai and Tatweer would create a company with an asset base of 194 billion dirhams ($52.8 billion) and a debt of 13.4 billion dirhams, or roughly 7% of the total assets……..Full Article: Source

Emaar downplays debt burden of Dubai property merger

Posted on 29 June 2009 by Laxman  |  Email |Print

From Dubai real estate giant Emaar Properties said on Sunday that the debt of the entity to be created through its merger with three other property developers will not exceed 3.64 billion US dollars, seven percent of combined assets.

The listed company, which is mostly controlled by the government, and the government-owned Dubai Holding had said on Friday that they were in advanced talks to merge Emaar and three Dubai Holding property units — Dubai Properties, Sama Dubai and Tatweer……..Full Article: Source

Dubai real estate asking prices still unrealistic

Posted on 29 June 2009 by Laxman  |  Email |Print

From The four-way merger of Dubai property companies led by Emaar Properties, and the Nakheel led consolidation of Dubai World property interests is major progress towards sorting out the mess left by the Dubai real estate crash at the corporate level.

But down-on-the-ground in the property marketplace another problem is inhibiting recovery, aside from the continual dumping of massive amounts of newly completed property onto a declining market: sellers are still not being realistic about their asking prices……..Full Article: Source

Real estate prices in Dubai to be realigned further by metro network

Posted on 29 June 2009 by Laxman  |  Email |Print

From Dubai Metro seems to have rubbed on its magic to property sector as well.
Real estate properties in the near vicinity of Dubai Metro stations have started selling for unheard of prices……..Full Article: Source

BKME readies $111mln realty fund for Abyaar

Posted on 29 June 2009 by Laxman  |  Email |Print

From The Bank of Kuwait and The Middle East (BKME) said it has arranged a new KD32 million ($111.4 million) real estate financing facility for Abyaar Real Estate Development Company.

This facility follows the success of the KD14 million financing extended to Abyaar at the beginning of the year and is a landmark deal in the Kuwait financial sector especially in the wake of the global financial crisis, said a BKME official……..Full Article: Source

Asian property developers cautiously optimistic

Posted on 29 June 2009 by Laxman  |  Email |Print

From The general mood among US and European property executives who attended the Reuters Global Real Estate Summit was still somewhat subdued, according to a report from Reuters itself.
Asian delegates are, however, beginning to experience a more upbeat mood in response to a projected upturn in the property market later during 2009……..Full Article: Source

Economists: Chinese housing prices too high

Posted on 29 June 2009 by Laxman  |  Email |Print

From Economists at a financial forum in Ningbo city of Zhejiang Province say China’s housing prices are still high, and that the warming up of the property market has mainly been due to capital influx.

An economist and former vice chairman of the standing committee of the National People’s Congress, Cheng Siwei, says China’s financial system has suffered less from the global financial crisis than those in developed countries……..Full Article: Source

China denies easier rules for FDI in real estate

Posted on 29 June 2009 by Laxman  |  Email |Print

From China’s Ministry of Commerce (MOC) Friday denied media reports that claimed China might simplify and ease the foreign exchange registration procedures for foreign investment in real estate.

The Beijing-based China Times reported June 21 that the MOC had submitted a proposal to the State Council (Cabinet) listing 42 rules covering taxation, foreign exchange and regulatory supervision and advocated easier approval for foreign investment, especially in the real estate sector……..Full Article: Source

Nearly-completed Shanghai high-rise falls over

Posted on 29 June 2009 by Laxman  |  Email |Print

From A nearly-completed 13-storey Shanghai apartment building toppled over, killing a worker and raising concerns in China’s largest city over construction standards, state media reported Sunday.

Shanghai Mayor Han Zheng ordered a full investigation into the cause of the incident, which occurred Saturday in the southwestern part of the city, the Shanghai Daily reported……..Full Article: Source

India’s Unitech mops up $575 mln via private placement; buyers not known

Posted on 29 June 2009 by Laxman  |  Email |Print

From Real estate major Unitech has just raised $ 575 million (Rs 2,800 crore) through placement of shares with overseas investors at Rs 81 per share. This comes on the back of almost 9 times oversubscription for the mid sized IPO of Mahindra Holidays & Resorts which closed on Friday.

These two fund raising activities show that liquidity flows into India have not witnessed any setback as feared in some sections of the market who feel there is a deluge of qualified institutional placements (QIPs), more than what can be absorbed……..Full Article: Source

June 2009
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