Graham Winfrey
The $21bn Austin-based retirement system will increase its overall real estate portfolio from 2% to up to 8% as part of a long-term diversification strategy, investing up to $600m in the next two years.
Usual suspects London, Hong Kong and Tokyo still top the most expensive list, according to a survey by CB Richard Ellis. Global rents have fallen 4.6% from one year ago.
The current demand for assets is not an indication of a return to “normal” but merely a reflection of how little product exists in today’s market, according to CBRE Investors Capital Partners president Ethan Penner.
Newly-formed Mountain Real Estate Capital, the acquisition and investment affiliate of lending group Mountain Funding, has closed its first five acquisitions. The group will focus on distressed assets and providing equity capital in joint ventures.
The real estate arm of the European insurance company, Allianz, will own the Porta di Roma shopping centre – the largest mall in Italy – in a JV with Italian investment firm Corio. Allianz sold a 50% stake in the retail asset to Corio.
The threat of a New York City doorman strike raised some interesting questions for roughly 1m residents. PERE magazine May issue 2010
An €8.5bn French civil service pension fund will reportedly invest €100m per year in commercial real estate in France, in an attempt to diversify the fund.
The vice president of Canadian pension Ontario Municipal Employees Retirement System Philip Haggerty said there is a need for American institutions to make large real estate and infrastructure investments directly, and that Canada is ‘opening the door for partnership’.
Starwood CEO Barry Sternlicht, speaking at the Milken conference in Los Angeles, said the US economy is recovering better than he thought it would – but that an increase in interest rates is inevitable, which will create more distress after the November congressional elections.
US REIT Chatham Lodging Trust has bought six hotels from the Bethesda, Maryland-based hotel investment firm in an all-cash deal.