Washington Prime Acquires Glimcher in $4.3B Deal

Washington Prime Group Inc., a spinoff of Simon Property Group, announced this week that it had completed the acquisition of Ohio-based REIT Glimcher Realty Trust. The $4.3 billion acquisition was approved by shareholders of Glimcher Realty Trust in a special meeting on Sunday. According to a report from The Columbus Dispatch, the combined real-estate investment trust will be called WP Glimcher and will own and manage about 120 U.S. malls that contain about 68 million square feet of leasable space. Under the terms of the agreement, Glimcher shareholders will receive, for each Glimcher share, $10.40 in cash and 0.1989 of a share in WP Glimcher common stock.

"We are very pleased to have completed our acquisition of Glimcher so quickly, which will allow us to begin taking advantage of the strengths of the combined company, including a broad and diverse group of strong cash flowing assets and a strong platform in Columbus as a foundation for growth," said Mark Ordan, Executive Chairman of WP Glimcher. "We are focused on reducing leverage, including through joint ventures and possible asset sales, maintaining our investment grade rating, strengthening our asset base through development and redevelopment opportunities, and strategically acquiring new properties in both enclosed and open air large format shopping centers that have a long term place in their markets."

Citi is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal advisor, to Washington Prime. Willkie Farr & Gallagher is serving as legal advisor to Washington Prime in connection with the sale of the two Glimcher properties to Simon. GreenOak Real Estate US and Morgan Stanley & Co. are serving as financial advisors, and Simpson Thacher & Bartlett is serving as legal advisor to Glimcher. WP Glimcher expects to issue fiscal year end 2014 earnings in late February, which will provide updated financial information and guidance for the newly combined company.

For more news and information visit Blumberg Capital Partners.

Premium Point Investments Acquires Majority Interest in RCM

Premium Point Investments LP, a New York-based institutional asset manager, announced this week that it had acquired a majority interest in Residential Capital Management ("RCM"), an Atlanta-based landlord and property manager as the U.S. home-rental industry. Citi advised Premium Point on the transaction; terms of the deal were not disclosed.

Founded in 2010, RCM provides a combination of investment management services, including acquisitions, construction, property management, property preservation, leasing, title and disposition services. RCM has offices in Marietta, Georgia and Nashville, Tennessee plus three offices in Florida, in Orlando, Tampa and Boca Raton. As of June, RCM had acquired, renovated, and managed over 7,200 homes since it was founded.

"We see great synergies between our businesses, and significant opportunities in the single-family rental market," said Anilesh Ahuja, CEO and chief investment officer of Premium Point. "In RCM, we have a partner that is a best-in-class operator with a proven track record of investing for large institutional clients."

For Premium Point, the partnership represents an opportunity to add to its investment platform across the residential markets in a proven institutional asset class. "Some groups have focused more on home price appreciation or discount to replacement cost looking for a shift in the market," said Lance Popp, president of RCM. "People who are entering now are trying to figure out how to operate as efficiently as possible and get the most out of every asset."

For more news and information visit Blumberg Capital Partners.

Citigroup Buys $700M Hong Kong HQ

In what's been reported as the largest single-block office purchase in Hong Kong, Citigroup has committed to pay HK$5.425 billion (or $700 million US) for a twenty-one story building to be completed next year. Wheelock Properties developed and sold One Bay East at 83 Hoi Bun Road, Kowloon East to Citi; full terms of the deal have not yet been disclosed. CBRE Group Inc. acted as adviser on the sale. The purchase price marks a 20% appreciation as compared to the price of the property's twin West Tower, adjacent to the East Tower, which was sold for HK$4.5 billion to Canada-based insurer Manulife last April, according to a report from The Standard.

"We are delighted that two leading global financial corporations have chosen One Bay East as the strategic base for their business operations. The significant and long term investments by top class multinationals show their continual deep confidence in Hong Kong," said Steward Leung, Chairman of Wheelock Properties.

"Our decision to purchase the East Tower of One Bay East underlines our belief and confidence in Hong Kong's continued growth as a leading global financial center and hub for some of our core regional businesses," Stephen Bird, chief executive officer for Citi in Asia Pacific said in a statement.

The 512,000 square foot tower will serve as the Asian headquarters building for Citi in the Asian financial hub. The building is about 40 minutes via public transportation from the main business district in Kowloon, Hong Kong, known as Central, where Citibank Plaza and many of the bank's executives are now located.

For more news and information visit Blumberg Capital Partners.

HCP Acquires $6.1B Portfolio

HCP entered into a definitive agreement this week to acquire the real estate assets of HCR ManorCare for $6.1 billion in what's become the largest deal involving a real estate investment trust in three years according to a New York Times article. HCR ManorCare, owned privately by management and equity funds managed by The Carlyle Group, is unloading 338 post-acute, skilled nursing and assisted living facilities in 30 states, with the highest concentrations in Ohio, Pennsylvania, Florida, Illinois and Michigan. The transaction is being made via $3.528 billion in cash, $1.72 billion reinvested from the payoff of HCP's existing debt investments in HCR ManorCare (original cash investment of $1.49 billion), and $852 million in HCP common stock issued directly to the shareholders of HCR ManorCare (a fixed 25.7 million shares).

HCP has obtained a commitment for a bridge loan in an amount up to $3.3 billion that will be available to complete the HCR ManorCare acquisition. HCP intends to issue debt and equity securities in lieu of any borrowings available under the bridge loan. "This transaction reinvests our substantial debt investment in a secure long-term, growing income stream that will be highly accretive to HCP's funds from operations and funds available for distribution," said Jay Flaherty, HCP's Chairman and Chief Executive Officer. "The acquisition is consistent with our '5x5' business model and an important milestone for our Company. Pro forma for this transaction, HCP will have $19 billion in assets comprised of a well-balanced portfolio of 1,000 properties." CSCA Capital Advisors, LLC acted as lead financial advisor with Citi, UBS and Wells Fargo also advising. Skadden, Arps, Slate, Meagher & Flom LLP acted as HCP's legal advisor. In connection with the transaction, J.P. Morgan Securities LLC is HCR ManorCare's exclusive financial advisor and Latham & Watkins LLP is their legal advisor.

For more news and information visit Blumberg Capital Partners.