SL Green Realty announces sale of 49% interest in 220 East 42nd Street » 09:1407/2207/22/21
SL Green Realty announced…
SL Green Realty announced that it has sold a 49% interest in 220 East 42nd Street to a real estate fund managed by Meritz Alternative Investment Management for gross consideration of $790.1M. SL Green retained a 51% interest in the property and will continue to oversee management and leasing of the building. The transaction generated net cash proceeds to SL Green of $136.1M. "This transaction demonstrates the continued global demand for core New York City office properties, particularly those that are well leased on a long-term basis to credit tenants," said Harrison Sitomer, Senior Vice President of SL Green. "With the new joint venture, 220 East 42nd Street will continue to provide SL Green shareholders with steady contractual cash flow. We are thrilled to be partnering again with Meritz on this historic asset."
SL Green Realty reports Q2 FFO $1.60, consensus $1,63 » 16:3107/2107/21/21
Reports Q2 revenue…
Reports Q2 revenue $218.1M, consensus $189.61M.
On the Fly: The Week in SPAC News » 08:3207/1807/18/21
RTPY, AUR, UBER, IVAN, GM, HYMTF, SES, SLAM, CBAH, CBRE, AMPS, RICE, LFG, MRAC, ENJY, DCRB, NGAC, TWCB, CLAQ, UPTD, JATT, ARYE, GWII
In SPAC news this week,…
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Boston Properties assumed with a Neutral at Mizuho » 07:1907/1407/14/21
Mizuho analyst Haendel…
Mizuho analyst Haendel St. Juste assumed coverage of Boston Properties with a Neutral rating and $115 price target following an analyst departure. The rating and price target are unchanged.
Boston Properties, CPP and GIC announce co-investment pact for future deals » 07:1107/1407/14/21
Boston Properties, Canada…
Boston Properties, Canada Pension Plan Investment Board. CPP, and GIC Canada Pension Plan Investment Board and GIC announced today that they have established a co-investment program for future acquisitions of office properties in the United States. Through the program, the partners intend to selectively acquire and operate office properties in BXP's core markets - Boston, Los Angeles, New York, San Francisco and Washington, DC, as well as Seattle. The partners have targeted an aggregate of $1.0B of equity to the program, with BXP and CPP Investments each allocating $250 million and GIC allocating $500 million. The partnership expects to employ leverage allowing for an initial investment capacity of approximately $2.0B. With these capital commitments, BXP expects to be able to accelerate the pace at which it can pursue acquisition opportunities and extend its investment capacity. "We are delighted to expand our relationship with CPP Investments and to begin a new relationship with GIC, two highly respected and experienced real estate investors," said Owen Thomas, CEO of BXP. "This new co-investment program underscores the attractiveness of Class A office investment opportunities in our markets and BXP's track record of creating long-term value at the property level." Under the agreement, over the next two years BXP will provide CPP Investments and GIC with exclusive first offers to form joint ventures with BXP to invest in acquisition opportunities that meet the target investment criteria of the program, subject to certain exclusions . BXP will act as general partner and provide customary property management, leasing and other services.
Altus Power announces combination with CBRE Acquisition Holdings » 06:3407/1307/13/21
Altus Power and CBRE…
Altus Power and CBRE Acquisition Holdings (CBAH) announced a definitive agreement for a business combination that would result in Altus Power becoming a public company listed on the New York Stock Exchange under the new ticker symbol "AMPS". CBAH is a special-purpose acquisition company sponsored by CBRE Group (CBRE), the world's largest commercial real estate services firm. The transaction is anticipated to generate gross proceeds of up to approximately $678M of cash, assuming no redemptions by CBAH's public stockholders, which will be used to fund the company's growth initiatives and strengthen the combined company's balance sheet. Proceeds include a $275M fully-committed common stock PIPE, anchored by CBRE Group, Inc. and existing investors, including Altus Power management and Blackstone Credit, as well as new investors, including ValueAct Capital, Liberty Mutual Investments and other leading institutional investors. The pro forma implied equity value of the combined company is $1.58B at the $10 per share price in the transaction, and assuming no redemptions by CBAH's public stockholders. The transaction has been unanimously approved by the board of Altus Power and unanimously approved by the board of CBAH after receiving the unanimous recommendation of its special committee. Completion of the proposed transaction is subject to customary closing conditions, including the approval of CBAH's stockholders, and is expected to occur in the fourth calendar quarter of 2021.
Empire State Realty downgraded to Market Perform from Outperform at BMO Capital » 04:5207/1207/12/21
BMO Capital analyst John…
BMO Capital analyst John Kim downgraded Empire State Realty to Market Perform from Outperform with a $13.50 price target. The analyst cites valuation for the downgrade with the shares providing a 32% total return year-to-date. Further, Kim is tempering assumptions on the Empire State Building Observatory visitors given the slower recovery of international tourism in New York City, which he notes accounts for approximately two-thirds of the visitors to the Observatory. The analyst sees more attractive value elsewhere in the sector.
SL Green Realty completes $3B refinancing of One Vanderbilt Ave. » 07:3606/2806/28/21
SL Green Realty announced…
SL Green Realty announced that it has closed a $3B 10-year, fixed-rate financing of One Vanderbilt Avenue, which is owned in a joint venture between SL Green, National Pension Service of Korea and Hines Interests, LP. The loan was securitized in a single asset, single borrower agented CMBS transaction. The agents were a consortium of financial institutions, led by Wells Fargo Bank, N.A. and Goldman Sachs Bank USA, that also included Bank of America N.A., Bank of China, Bank of Montreal, Deutsche Bank, JP Morgan Chase Bank, N.A., Barclays Capital Real Estate Inc. and Citi. The new financing carries a stated coupon of 2.855 percent, equivalent to a rate of 2.947 percent inclusive of hedging costs, and replaces the previous $1.75B construction facility with an outstanding balance at the time of payoff of approximately $1.54B. One Vanderbilt is currently 89 percent leased.
SL Green Realty price target raised to $77 from $66 at Deutsche Bank » 06:4906/2506/25/21
Deutsche Bank analyst…
Deutsche Bank analyst Derek Johnston raised the firm's price target on SL Green Realty to $77 from $66 and keeps a Hold rating on the shares. The return to office post pandemic is gaining focus as companies and employees prepare to return en masse in September, Johnston tells investors in a research note. Office real estate investment trusts have traded higher as earnings remained largely intact, except for ancillary income such as parking, retail and any hotel revenues, which largely remain under pressure, says the analyst. He believes the return of ancillary revenues will aid earnings growth and "fill the earnings hole afflicting the Office REITs."
Boston Properties price target raised to $120 from $107 at Deutsche Bank » 06:4806/2506/25/21
Deutsche Bank analyst…
Deutsche Bank analyst Derek Johnston raised the firm's price target on Boston Properties to $120 from $107 and keeps a Hold rating on the shares. The return to office post pandemic is gaining focus as companies and employees prepare to return en masse in September, Johnston tells investors in a research note. Office real estate investment trusts have traded higher as earnings remained largely intact, except for ancillary income such as parking, retail and any hotel revenues, which largely remain under pressure, says the analyst. He believes the return of ancillary revenues will aid earnings growth and "fill the earnings hole afflicting the Office REITs."