Liquid real estate: What's next in Sam Zell's sights
Sam Zell is full of surprises. Having just realized huge returns for shareholders in his Reit by selling it in the biggest ever LBO, he says that if he had owned the whole thing he would have kept it. He argues that the take-private deal is a vindication of public indirect share ownership of real estate, not a retreat from it. He warns new leveraged buyers to be careful when the property market turns, and extols the defensive qualities of Reits. And even while their shares are being de-listed, he predicts the sector will only get bigger. Peter Lee reports on how Zell’s vision for the business has been fulfilled.
Published: 09/03/2007
Bank profile
Klaus-Peter Müller’s exquisite timing
Commerzbank was a fading but still powerful force. Eurohypo was establishing a strong foothold in real estate. Their marriage came as a surprise, but the firms’ combined talents are shaking up the real estate investment banking market. Phil Moore reports.
Published: 08/03/2007
Developer profile
Developer profile: How Hines went global
Hines is a graphic illustration of the rate of growth – and potential – in the real estate industry. Today it is as much an investment manager as a developer. It is present across the globe. And its latest focus is on developing markets, notably in the Middle East. Julian Marshall reports.
Published: 09/03/2007
Corporate Finance
M&S shows how to release property value and keep it too
Marks & Spencer’s innovative deal to use the value of its real estate to fund its pension deficit without relinquishing control of any properties will intrigue many companies. Many are carrying more hidden value in their property than in their core business. And while they all want to cash in on that, most would rather not cede ownership of the buildings that they need to operate from and which are rising in value. Peter Lee reports
Published: 09/03/2007
Features
Property derivatives: Market at last begins to fulfil its promise
Real estate derivatives volumes are growing at a staggering pace, and there is still plenty of scope for growth. The UK is leading the way but the European, Asian and US markets are picking up too. Market participants speak optimistically of real estate derivatives being the next credit default swap market.
Published: 09/03/2007
Alternative investment: US hedge funds look to short side
The number of funds with a dedicated real estate strategy is only slowly growing. Dominated by long-biased funds, the market will expand only if managers prove that shorting can be profitable. Helen Avery reports.
Published: 09/03/2007
Asia-Pacific: Australia offers a glimpse of the future
The issuers and investors building nascent Reit markets from Hong Kong to London must pause occasionally to picture what these new markets might look like in the future. What sort of issuance, innovation, consolidation and retraction might they see in the years ahead? Australia could have some of the answers. Chris Wright reports.
Published: 09/03/2007
Deal architect
Anthracite breaks new ground in Europe
Given that the US CRE CDO market saw over $34 billion issued in 2006, it is not surprising that substantial time and effort have been invested in trying to establish this asset class in Europe.
Published: 08/03/2007
First French property swap learns from UK
Published: 08/03/2007
First China CMBS unlikely to start a dynasty
The current size of China’s real estate market, let alone its growth potential, is enough to whet the appetite of any CMBS banker. So when Citigroup Global Markets Asia and Macquarie Bank issued Dynasty Assets (Holdings)’ $145 million series 2006-1 secured floating rate notes in October, the first CMBS issue backed by mainland Chinese properties, there was reason for all banks to cheer. A closer look at the transaction however, gives cause for a more sober assessment of the potential of the market.
Published: 08/03/2007
Long awaited Bluebonnet swamped with interest
If ever there was an eagerly anticipated deal, it is Bluebonnet Finance. The €1.34 billion securitization of a portfolio of non-performing German loans was launched in December 2006 but had been in the works ever since Lone Star Funds bought a €3.6 billion pool of NPLs from HypoReal Estate in late 2004. Securitization was always the planned exit from the investment, but getting from A to B was a lengthy process.
Published: 08/03/2007
Building blocks
CapitaLand makes further REIT push in Asian markets
Singapore group takes stakes in two Japanese trusts.
Published: 08/03/2007
New launch lays claim to being the first ‘global’ fund
But diversity may not match necessary scale.
Published: 08/03/2007
Real estate sukuks reach record levels of issuance
European demand drives up volume of issuance.
Published: 08/03/2007
Latin MBS issuance to continue rapid pace of growth
Structured finance in real estate is growing at 50% a year in Brazil and Mexico and at 20% a year in Argentina, according to rating agency Standard & Poor’s.
Published: 08/03/2007
Orn Capital prepares for property derivative take off
Fund hopes to expand ex-UK investments quickly.
Published: 08/03/2007
Chicago exchanges face derivatives clash
CME and CBoT adopt separate strategies ahead of merger.
Published: 08/03/2007
News in brief: GFI launches property derivative pricing software
Published: 08/03/2007
News in brief: Barclays adds US sub-prime originator
Published: 09/03/2007
News in brief: Deutsche to invest in Emaar-MGF?
Published: 09/03/2007
News in brief: First Asia-Pacific property fund launched
Published: 09/03/2007
European investment records tumble
European real estate achieved record volumes of investment in 2006. Some €242 billion flowed in, representing a 39% increase on 2005. That increase, of €68 billion, was another record. In 2007, real estate markets are expected to remain strong, and could well grow further.
Published: 09/03/2007
Virtual real estate hits Asia
For a region that has had a long-term love affair with property, Asia’s first property derivative could mean the start of a beautiful new relationship. In February, ABN Amro and Hong Kong broker, Sun Hung Kai Financial executed Asia’s maiden property derivative based on Hong Kong residential properties.
Published: 09/03/2007
ABN and Merrill complete industrial swap
ABN Amro and Merrill Lynch have executed the property market’s first ever industrial sector swap. The two banks have taken a position of £10 million. The trade is the latest development in a continuously evolving swaps business. For ABN Amro, it completes the set of sector-specific property swaps.
Published: 09/03/2007
Moving on
DSP Merrill Lynch spearheads drive into Indian real estate
Investors believe market remains full of potential.
Published: 08/03/2007
Marcuse moves to UBS Gam
Departure heralds new appointments at Axa Reim.
Published: 08/03/2007
Wachovia talks big in German real estate
String of hires made to take on the big players.
Published: 08/03/2007
Multi confirms asset management shift
Published: 08/03/2007
Moving on: News in brief
Published: 08/03/2007
Foundations - Data and analysis
UK Reits: Reflected performance
by Gareth Lewis, director of finance and investment, British Property Federation.
Published: 09/03/2007
UK Reits: Conversion has been priced
by Edmund Craston, managing director, head of European real estate investment banking, Lehman Brothers
Published: 09/03/2007
Property derivatives: Spreads narrow
by Nick Mansley, Morley FM.
Published: 09/03/2007
Property derivatives: Softening sentiment
by Tom Frost, vice-president, ICG, Deutsche Bank.
Published: 09/03/2007
Property derivatives: Is this panic?
by Kanak Patel, Magdalene College, Cambridge.
Published: 09/03/2007
CRE CDO: Collateral composition
by Angus Duncan, Cadwalader, Wickersham & Taft
Published: 09/03/2007
CRE CDO: Booming market
by Brian Lancaster, managing director, head of structured products research at Wachovia Capital Markets.
Published: 09/03/2007
League tables and performance data
Published: 09/03/2007
Research guide
The 2007 guide to Property derivatives
Until recently, the commercial property market remained virtually untouched by the derivatives revolution that has taken place in other asset classes.
Published: 01/03/2007