EMEA Real Estate Correspondent
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Dec 12, 2010

CSC rejects Simon Property’s offer as ‘impracticable’

LONDON/NEW YORK, Dec 12 (Reuters) – Capital Shopping
Centres (CSCG.L: Quote, Profile, Research, Stock Buzz) has slammed as “incapable of implementation
and completely impracticable” an alternative funding offer
from its shareholder and would-be bidder Simon Property Group
Inc (SPG.N: Quote, Profile, Research, Stock Buzz), who quickly responded, urging CSC to postpone a
vote on its planned acquisition of Trafford Centre mall.

Earlier on Sunday, Simon Property had pitched to CSC’s
board a plan to help fund the UK firm’s 1.6-billion-pound
($2.53 billion) mall acquisition, which it argues offers
better terms while potentially lifting Simon’s stake in CSC to
up to 27 percent.

Dec 12, 2010

Simon offers alternative proposal to CSC board

LONDON/NEW YORK, Dec 12 (Reuters) – Simon Property (SPG.N: Quote, Profile, Research, Stock Buzz)
has pitched an alternative plan to help fund Capital Shopping
Centres’ (CSCG.L: Quote, Profile, Research, Stock Buzz) 1.6-billion-pound ($2.53 billion) UK mall
acquisition, which it argues offers better terms while
potentially lifting Simon’s stake in CSC up to 27 percent.

Simon, which now owns 5.1 percent of CSC, had last week
objected to CSC’s plan to partly fund its purchase of the
Trafford Centre mall in Manchester with shares and convertible
bonds that gives seller Peel Group a 19.9 percent stake in
CSC.[ID:nLDE6B707Q]

Dec 3, 2010

Property investors bullish on emerging Asia, Latam

LONDON, Dec 3 (Reuters) – Property investors are extremely
bullish about the outlook and total returns available in Asia’s
developing markets and Latin America, preferring their economic
growth prospects over those of Europe, a survey said on Friday.
About 100 delegates at the annual Thomson Reuters Global
Property Outlook conference were asked, in a computer survey,
what real estate markets they felt most bullish about in terms
of total returns over the next five years.

Developing Asia, home to economic giants China and India,
was by far the top pick with 43 percent of the votes, while 18
percent of respondents chose Latin America, the second most
popular region.

Dec 3, 2010

Commercial prop. debt squeeze to benefit REITs, JVs

LONDON, Dec 3 (Reuters) – Well-capitalised listed property
companies in Europe could come into their own next year,
benefiting from the lack of debt financing that continues to
plague their unlisted peers, real estate experts said on Friday.

Listed entities, such as real estate investment trusts
(REITs), have an advantage in their ability to issue corporate
bonds or shares, said John Carrafiell, managing partner of
GreenOak Real Estate, at the annual Thomson Reuters Global
Property Outlook conference.

Dec 1, 2010

Inflation seen lifting UK property investment

LONDON (Reuters) – Investment volumes in prime-grade UK commercial property could get a boost in 2011, as the rental outlook for the sector warms and investors seek refuge from poor gilt returns eroded by high inflation.

UK commercial property values fell 44 percent during the 2007/09 global financial crisis, and since then a 15-month, 15 percent rebound in prices has lost steam, sparking fears the broader market may be on the cusp of a double-dip downturn.

Nov 25, 2010

Corrected: CSC’s mall deal spurs Simon bid interest

LONDON (Reuters) – Capital Shopping Centres’ (CSCG.L: Quote, Profile, Research, Stock Buzz) plan to buy a big UK mall has flushed out major U.S. shareholder Simon Property (SPG.N: Quote, Profile, Research, Stock Buzz) as a possible bidder for CSC, which analysts estimate now has a price tag of more than 3 billion pounds ($4.7 billion).

CSC said it received a potential offer from Simon Property on November 24 that tried but failed to have the mall acquisition postponed, promising “a potential cash offer for the company at an unspecified premium to NAV.”

Nov 16, 2010

Inflation to hit European retail property in 2011 – report

LONDON (Reuters) – Rising inflation caused by surging commodity prices could negatively impact European retail property markets next year, causing occupier demand to weaken and prompt further tenant defaults, a report said on Tuesday.

“One of the key destabilising risks on the horizon is rising inflation … as raw material prices are increasing globally, retailers will invariably pass on the cost to consumers,” the report by property consultancy King Sturge said.

Nov 10, 2010

HK catching up on London for world’s priciest offices

LONDON, Nov 10 (Reuters) – Hong Kong’s central business
district (CBD), a gateway to China’s booming economy, is fast
catching up with London’s West End as the world’s most expensive
place to rent an office, a bi-annual survey showed on Wednesday.
Occupancy costs in Hong Kong’s CBD jumped 20 percent to
$184.21 per square foot per year in the six months to Sept. 30,
more than thrice the speed of growth in the West End, to remain
the second-costliest market, CB Richard Ellis (CBG.N: Quote, Profile, Research, Stock Buzz) said.

Prime offices in the West End, home to the bulk of Europe
hedge funds and also swanky embassies, still costs the most to
rent per square foot, rising 6 percent to $193.69 in the same
period, CBRE said in a statement.

Nov 5, 2010

Hammerson seeks pre-lets for $565mln London office

LONDON, Nov 5 (Reuters) – Anglo-French property investor
Hammerson (HMSO.L: Quote, Profile, Research, Stock Buzz) plans to develop a 350 million pounds ($565
million) office project in London’s City financial district by
2014, and is already seeking pre-lets for part of it.

Hammerson has applied for consent to develop the twin
buildings, totaling 500,000 square feet, at London Wall Place.
When complete they would house trading floors and offices, the
company said in a statement on Friday.

Nov 5, 2010

Banks stall on property strategy as doubts abound

LONDON (Reuters) – Backsliding performances and constant threats of break-up by regulators are forcing banks to rethink their property usage strategies, stoking fears of an office oversupply in Europe’s key business hubs from 2014.

“Banks are trying to do all they can to avoid taking on new lease commitments while the outlook for their revenues remains hard to call,” said Matthew Pullen, CB Richard Ellis’ CBRE.L (CBG.N: Quote, Profile, Research) head of global corporate services EMEA.

    • About Daryl

      "I am Reuters real estate correspondent based in London, covering Europe, Middle East and Africa. I cover global listed and unlisted real estate markets, real estate finance and banking, and write interviews, analysis, and other stories on both the sell-side – listed real estate investment trusts, developers, investment banks; and the buy-side – private equity, pension and insurance, and sovereign wealth funds. I have a special interest in European real estate financing, government interventions in Europe and its effects, emerging Europe and China’s booming but haphazard property markets."
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