Forest City and QIC Complete Mall JVs

Forest City Enterprises, is a national real estate company with $10.7 billion in total assets, announced this week that it has completed and partly closed its joint ventures with QIC Global Real Estate, the real estate arm of Australia-based Queensland Investment Corp., to recapitalize and invest in a portfolio of eight of Forest City's regional retail malls. According to a GlobeSt.com report, the deal brings QIC GRE a 49% equity interest in the properties at a cost of $435.6 million, with the portfolio valued at $2.05 billion.

"This strategic capital partnership with QIC is our largest such initiative to date, and an exciting opportunity to work with an experienced global investor to enhance these already strong retail centers," said David LaRue, Forest City president and chief executive officer. "We look forward to building a mutually beneficial, long-term relationship that creates value for both of our organizations."

"The US portfolio clearly has the scope to be a very large presence for us," said QIC Global Real Estate managing director Steve Leigh in an interview with The Australian. "US retail sales are growing by about 7% per annum compared with Australia where it is essentially flat - zero to 1%,. In regional malls - the type of malls we would invest in - there is a universe of around 1200 in the US, and they trade more frequently."

The eight properties being joint ventured are Victoria Gardens in Rancho Cucamonga, California, Charleston Town Center in Charleston, West Virginia, Mall at Robinson near Pittsburgh, Pennsylvania, Promenade in Temecula, California, Galleria at Sunset in Henderson, Nevada, Antelope Valley Mall in Palmdale, California, Short Pump Town Center in Richmond, Virginia, and South Bay Galleria in Redondo Beach, California.

For more news and information visit Blumberg Capital Partners.

JV Purchases Two Office Properties in Florida

A joint venture between Chicago-based Stage Equity Partners and Middleton Partners has acquired two medical office buildings in southwest Florida. The new JV paid roughly $125 per square foot for the buildings, which total approximately 70,000 square feet of space. According to a National Real Estate Investor Online article, the properties were acquired from a publicly traded healthcare REIT in an off-market transaction.

Located in Bradenton, Florida, the buildings were reportedly 95% occupied at the time of sale. A subsidiary of HCA Healthcare, one of the region's largest healthcare providers, leases roughly 60% of that space.

For more news and information, visit Blumberg Capital Partners.

JLL Arranges $140M Industrial JV

Jones Lang LaSalle's Capital Markets and Industrial Services experts announced this week the arrangement of a programmatic joint venture equity vehicle between Sitex Realty Group (SRG) and State Teachers Retirement System of Ohio (OSTRS). The new venture will seek to acquire more than $140 million of industrial real estate over the next 24 months, targeting the metropolitan regions of Chicago, New Jersey, and New York. The venture will be led and operated by SRG, commencing June 1.

"While programmatic joint ventures have been tough to come by in this new cycle, we were very fortunate to find the cross section of needs between a boutique industrial owner/operator focused on value-add assets, and a national pension fund system in search of an efficient way of investing in that very same product. It was a perfect match," said JLL Executive Vice President James Tramuto.

Regional Managing Director Keith Stauber added, "Both SRG and OSTRS have been long time clients and it was great to be able to introduce them to one another. This program allows SRG to expand its very successful and targeted strategy while enabling OSTRS to partner with one of the best local operators in the country."

For more news and information visit Blumberg Capital Partners.

Tishman Speyer Forms New JV for Office Portfolio

Tishman Speyer Australia Limited, in its capacity as responsible entity of Tishman Speyer Office Fund (TSOF), announced that it has entered into an agreement to be acquired by a new joint venture between Tishman Speyer and a large pension fund. Tishman completed the transaction on April 3 with the new JV taking majority ownership interests in a portfolio of 16 U.S. office properties.

The joint venture holds a 100% stake in four properties - three Class A properties in Beverly Hills, California and a three-building suburban complex in Northern Virginia according to a Citybizlist New York article.

• Lakeside Complex (Loudon County, VA)
• Maple Plaza (Beverly Hills)
• 407 North Maple Dr (Beverly Hills)
• Beverly Mercedes Place (Beverly Hills)

The JV also holds a majority stake in a portfolio including the 12 properties listed below (the minority interest in this group of assets will continue to be held by an affiliate of the Government of Singapore Investment Corporation).

• 300 Park Avenue (NYC)
• CitySpire (NYC)
• Greenwich American Centre (Greenwich, CT)
• Bala Plaza (Bala Cynwyd -- suburban Philadelphia)
• Franklin Center - 227 W Monroe (Chicago)
• Franklin Center - 222 West Adams (Chicago)
• Plaza East I & II (Milwaukee)
• 520 Pike Tower (Seattle)
• One Bush Street (San Francisco)
• 595 Market Street (San Fran)
• Bayside Towers (Foster City, CA)
• 400 Castro St (Mountain View, CA)
• Lakeside Complex (Loudon County, VA)
• Maple Plaza (Beverly Hills)
• 407 North Maple Dr (Beverly Hills)
• Beverly Mercedes Place (Beverly Hills)

"This transaction marks the disposition by TSOF of its assets on terms that represent a successful outcome for all stakeholders," Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said in a joint statement. "Looking forward, we are very excited about the formation of this joint venture and we’re pleased that our partner recognizes the value of this portfolio of premium properties and has joined us in making this significant investment."

For more news and information visit Blumberg Capital Partners.

UDR and Kuwait JV Make $154M DC Acquisition

UDR Inc. announced this week that it had acquired, in a joint venture with Kuwait Finance House (KFH), 1301 Thomas Circle in Washington, DC for $154 million. According to a National Real Estate Investor Online article, The acquisition is being funded through a five-year, 2.99%, $90 million interest-only loan from Fannie Mae, a 70% equity contribution by KFH of $44.8 million and a 30% equity contribution by UDR of $19.2 million. Since its formation in 2009, the joint venture has invested $281 million in metropolitan Washington, D.C. through the acquisition of three operating communities containing 660 homes.

1301 Thomas Circle is a ten-story building constructed in 2006 located just minutes from the Mt. Vernon Square and McPherson Metro Stations. Additionally, it is just a short walk from two of the Company's other operating communities, Andover House and View 14, as well as its development project, 2400 14th Street. Following the close of this transaction, the Company will own, or have an ownership interest in, 21 communities consisting of 5,934 apartment homes in the metropolitan Washington, D.C. market.

For more news and information visit Blumberg Capital Partners.

15 Properties in Japan Sold for $1.6B to JV

Global Logistic Properties Limited (GLP) and China Investment Corporation (CIC) have entered into a 50-50 joint venture to acquire 15 modern logistics facilities in Japan from LaSalle Investment Management for JPY122.6 billion (or $1.6 billion) in one of the biggest-ever property deals in Japan according to a Wall Street Journal report. This purchase marks the first collaboration between GLP and CIC with each company initially investing about $272.9 million. GLP will act as the asset manager of the acquired properties.

In a statement, LaSalle Investment Management said the deal marked the sale of all but two properties held by its US$1.6 billion Japan Logistics Fund, and reaps "strong returns" for the fund's institutional investors. "Global money has returned to Japan in a big way," said Masahiro Mochizuki, an analyst at Credit Suisse Group AG in a Businessweek article. "This transaction means that real estate prices in Japan have fallen to an attractive level."

GLP chief executive Ming Z Mei said: "Demand in Japan continues to come from companies working to become more competitive and are focused on ensuring they have more efficient warehouses. Companies are also rethinking how their supply chains are managed so they can minimise any risk of disruption. As a result, demand for quality modern warehouse space is on the rise, while there remains a lack of supply of modern warehouses. The properties we are acquiring come with a strong tenant profile - 67% of the space is utilised by large third-party logistics service providers and 13% is leased by e-commerce companies."

The portfolio of 15 properties to be acquired will have a Gross Floor Area (GFA) of 770,989 sqm with more than 90% of the GFA located within the Greater Tokyo and Osaka areas. The current occupancy of the properties is 98.3% with a weighted average lease expiry of 5.6 years. The portfolio comprises modern facilities with a weighted average building age of only 6.9 years.

For more news and information visit Blumberg Capital Partners.

JV Picks Up $215M in Defaulted Debt

A joint venture led by Area Property Partners with McDowell Properties has acquired a portfolio of defaulted loans worth $215 million according to a CoStar report. The JV assumed the portfolio of defaulted loans secured by 17 apartment complexes with 4,733 units in four states. Seven properties are in Austin, Texas with three other properties in Dallas, two properties in Phoenix, three in Tulsa, Oklahoma and one each in Tampa and Jacksonville, Florida. The overall occupancy rate for the portfolio is 84%, providing strong upside potential when leased to market occupancy.

"The transaction represents the rare opportunity to acquire a portfolio of assets in this dynamic high growth market at an attractive discount to the current debt basis," said Steve Wolf of Area Property Partners. "The business plan calls for taking fee title to the assets and repositioning each asset, including exterior renovations, landscaping improvements, amenity upgrades, and interior renovations. These assets will be able to compete with newer complexes in their submarkets while offering a much stronger value within their rent levels."

"These assets are being acquired at substantial discounts to replacement cost while multifamily fundamentals continue to improve. Under new ownership, we will implement a focused renovation plan combined with intensive asset management to maximize the value of the assets," said Patrick McDowell, president of McDowell Properties.

For more news and information visit Blumberg Capital Partners.

JV Investing up to £200M in London's West End

A joint venture between Grosvenor Fund Management and the Canada Pension Plan Investment Board (CPPIB) has formed this summer to invest up to £200 million in London's West End office market over the next two years according to a Benefits Canada article. Grosvenor will invest £10 million and lead asset sourcing and management activities while CPPIB will invest the remaining £190 million.

Wenzel Hoberg, Canada Pension Plan Investment Board's managing director and head of European real estate investments, said, "This venture with Grosvenor Fund Management provides us with an entry into an attractive, niche commercial real estate market in West End London. This investment aligns with our existing European real estate investment strategy and introduces us to a well-respected partner in Grosvenor Fund Management, which has a unique knowledge of the West End office market and strong active management and refurbishment expertise."

Mervyn Howard, Director Grosvenor Fund Management, said: "We are delighted to have formed this venture with CPPIB who share our belief in the future strength of the central London office market. Grosvenor and Grosvenor Fund Management have been active in the London office market through many cycles. We have the in-house skills to execute the strategy of the Partnership and believe the timing is right."

For more news and information visit Blumberg Capital Partners.