Foreign Property Investors Targeting U.S. Net Lease Assets in Greater Scale

CBRE | July 12, 2019

Foreign Property Investors Targeting U.S. Net Lease Assets in Greater Scale
According to new research from commercial property consultant CBRE, the global search for yield and portfolio diversification is driving more foreign investors to the U.S. net-lease real estate market.
  Foreign investment in net-lease assets comprising office, industrial and retail properties reached $1.9 billion in Q1 2019, up by 6.6% from Q1 2018's total. International investors accounted for an even larger share of net-lease investment (15.1%) in Q1 2019 than the same period last year (12.9%). Global investment in net-lease properties has averaged more than $8 billion annually over the past four years from approximately $3 billion annually between 2011 and 2014.

Spotlight

This is why our people are also our best ambassadors for sustainability at Hines. Sustainability means something different in each of the 19 countries—and 185 cities—where we actively develop real estate and manage properties around the world.

Spotlight

This is why our people are also our best ambassadors for sustainability at Hines. Sustainability means something different in each of the 19 countries—and 185 cities—where we actively develop real estate and manage properties around the world.

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INVESTMENTS

Columbia Property Trust to Be Acquired by Funds Managed by Pacific Investment Management Company LLC in a $3.9 Billion Transaction

Columbia Property Trust, Inc. | September 07, 2021

Columbia Property Trust, Inc.announced that it has entered into a definitive agreement to be acquired by funds managed by Pacific Investment Management Company LLC, one of the world’s premier global investment management firms, for $3.9 billion including Columbia’s proportionate share of consolidated and unconsolidated debt. Under the terms of the agreement, which has been unanimously approved by Columbia’s Board of Directors, PIMCO will acquire all of the outstanding shares of Columbia common stock for $19.30 per share in cash. This represents a premium of approximately 27% over Columbia’s unaffected closing share price on Friday, March 12, 2021. During this time period the high barrier office sector has traded down 5%. This transaction with PIMCO is the culmination of a comprehensive strategic review process undertaken by Columbia’s Board of Directors which was publicly announced in the spring of this year. As part of this process, Columbia’s Board and advisors invited nearly 90 potential counterparties to participate, including strategic acquirers, private equity firms and other investment management firms. Constance Moore, Chair of the Columbia Board of Directors, said, “The Board of Directors is pleased to have reached this definitive agreement with PIMCO. This transaction provides Columbia shareholders with immediate and certain cash value at a significant premium to the Company’s public market valuation, and we are confident it represents the best outcome for all Columbia shareholders.” “We continue to believe that high-quality office buildings in major U.S. cities offer long-term value for our clients and Columbia has assembled a modernized, well-located portfolio of assets that we expect will perform well in the years ahead,” said John Murray, PIMCO Global Head of Private Commercial Real Estate. Francois Trausch, PIMCO Managing Director and Chief Executive Officer of Allianz Real Estate, added, “This is an exciting transaction and a great example of the strength of relationships within PIMCO’s global real estate platform.” The transaction is expected to close as early as year-end, subject to approval by Columbia’s shareholders and the satisfaction of other customary closing conditions. Upon completion of the transaction, Columbia’s common stock will no longer be listed on the New York Stock Exchange. Columbia shareholders will be entitled to receive the previously announced third quarter dividend of $0.21 per share payable on September 15, 2021. Thereafter, Columbia will not pay additional quarterly dividends during the pendency of the transaction. Due to the pending acquisition, Columbia will not be holding a conference call for its third quarter 2021 business results after it releases earnings information. Morgan Stanley & Co. LLC is serving as lead financial advisor to Columbia and Wachtell, Lipton, Rosen & Katz is serving as legal advisor. Eastdil Secured LLC and J.P. Morgan are also acting as financial advisors to Columbia. Goldman Sachs & Co. LLC is serving as lead financial advisor to PIMCO and Latham & Watkins LLP and Milbank LLP are serving as legal advisors. Deutsche Bank Securities Inc. is also acting as a financial advisor to PIMCO. Cushman & Wakefield is acting as a real estate consultant to PIMCO. About Columbia Columbia creates value through owning, operating, and developing storied properties for legendary companies in New York, San Francisco, Washington D.C., and Boston. The Columbia team is deeply experienced in transactions, asset management and repositioning, leasing, development, and property management. It employs these competencies to grow value across its high-quality, well-leased office portfolio of 15 properties that contain more than six million rentable square feet, as well as four properties under development, and also has more than eight million square feet under management for private investors and third parties. Columbia has investment-grade ratings from both Moody’s and S&P Global Ratings. About PIMCO PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 50 years since, it has continued to bring innovation and expertise to its partnership with clients seeking the best investment solutions. Since launching its first opportunistic credit vehicles over 15 years ago, PIMCO has significantly expanded in alternative credit and private markets. The firm invests globally across commercial and residential real estate equity and credit, performing and distressed corporate credit, and specialty finance markets – actively managing investments across the capital structure. In 2020, PIMCO and Allianz Real Estate combined their commercial real estate platforms, making it one of the largest in the world. On a combined basis, PIMCO manages over $180 billion in commercial real estate assets globally. Today PIMCO has offices across the globe and professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

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MARKET OUTLOOK

Majid Al Futtaim Properties Selects Newgen for Automating Enterprise-wide Document and Records

Newgen Software | September 20, 2021

Newgen Software, a global provider of digital transformation platform, is pleased to announce that the Dubai-based Majid Al Futtaim Properties has selected Newgen to digitize its records and documents, as part of its enterprise-wide strategic digital transformation initiative. Majid Al Futtaim Properties will use Newgen's document management system (DMS)—part of the contextual content services platform to manage business-critical records while maintaining security and ensuring regulatory compliance. Newgen will help them build a central repository for enabling remote, secure, and easy access to content. This will ensure end-to-end management of enterprise content from creation to disposal, thereby optimizing workforce collaboration and productivity. With Newgen, Majid Al Futtaim Properties can bridge information silos and facilitate anytime-anywhere access to documents and records. We look forward to supporting their current and future digital transformation initiatives. - Vivek Bhatnagar, VP EMEA, Newgen Software. Newgen's DMS built on a low code digital transformation platform—enables end-to-end management of both physical and electronic records, while retaining integrity and authenticity. The software manages the complete record lifecycle, from creation, usage, storage, and maintenance to preservation all in line with the organization's policies. About Newgen Software Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, and communication management capabilities. Globally, successful enterprises rely on Newgen's industry-recognized low code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries.

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REAL ESTATE INVESTMENT

Walker & Dunlop Completes $156 Million Sale of Long Beach, CA Apartment Community

Walker & Dunlop | January 24, 2022

Walker & Dunlop, Inc. announced today that it facilitated the $156,000,000 sale and $91,260,000 financing of Volta on Pine , a 271-unit, core multifamily property with 1,300 square feet of ground floor retail space in the heart of Downtown Long Beach, California. Historically tied to aviation since the days of Amelia Earhart's 1920s explorations, Long Beach is now coined "Space Beach" and is rapidly becoming the epicenter of the aerospace industry. Startups including SpinLaunch, Rocket Lab, and Relativity Space have chosen the area as their headquarters since 2019, providing for a highly active job market in Long Beach. Volta on Pine will benefit from the recent uptick in Long Beach's booming job market and provide commuting renters with access to the approximately 950,000 jobs offered throughout Long Beach, Beach Cities, Downtown LA, and Irvine. Delivered in early 2021, the property is a collaboration between North America Sekisui House ("NASH") Holland JV and MVE + Partners Architects, which both have an expansive presence primarily in the Western Region's high-growth markets. Walker & Dunlop's Blake A. Rogers, Alexandra Caniglia, Kevin Sheehan, Hunter Combs, and Javier Rivera represented the sellers, Holland Partner Group and NASH and in the disposition to the buyer, Gelt, Inc. Mark Grace, John Montakab, and Trevor Fase arranged the financing from Nuveen on behalf of Gelt. Volta on Pine is ideally situated in the heart of Long Beach's Downtown, offering residents access to shopping destinations, world-class restaurants, breweries, and various grocery stores. Local attractions also include the Aquarium of the Pacific, Long Beach Convention & Entertainment Center, Long Beach Jazz Festival, Museum of Latin American Art (MOLAA), Lions Lighthouse, and the Long Beach Grand Prix. The property's outstanding community amenities include a rooftop terrace with ocean views and barbecue stations, executive meeting rooms, a 24-hour state-of-the-art fitness center, sky lounge, pool, and spa. The apartment homes feature best-in-class luxury interior features, including gourmet chef's kitchens with stainless steel appliances, quartz countertops, spa-inspired bathrooms, and spacious bedrooms. Walker & Dunlop is a leader in multifamily property sales, having completed $10 billion in volume from the first through third quarters of 2021, up 203% from the same period in 2020. In Los Angeles County alone, the team completed sales of over $1 billion with a total of 17 transactions in in 2021. The firm was also the top provider of capital to the U.S. multifamily market, originating $31 billion in transactions and lending over $24 billion for multifamily properties in 2020. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way.

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