Archive for Real Estate

China’s Looming Real-Estate Bubble

BY SHIKHA DALMIA AND ANTHONY RANDAZZO

American enthusiasts of more stimulus have been urging this country to look to China for guidance on how to beat a recession. As they see it, while our politicians debated and dithered and fell short, China’s wise autocrats moved quickly to inject a massive stimulus and restore robust growth.

Despite the global downturn, China’s economic growth rate remains above 10%. But there is mounting evidence that Beijing has misallocated vast amounts of capital, touching off a real-estate crisis that could yet drag the world’s second-largest economy down to earth.

When the global marketplace went into meltdown mode two years ago …

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Posted by admin on August 24th, 2010

RMR Asia Pacific Real Estate Fund Announces Special Distribution to Common …

NEWTON, Mass., Aug 20, 2010 (BUSINESS WIRE) –
RMR Asia Pacific Real Estate Fund
/quotes/comstock/14*!rap/quotes/nls/rap
(RAP
16.78,
+0.09,
+0.54%)
today announced a
special distribution of previously undistributed net investment company
taxable income to common shareholders. The distribution of $0.41 per
common share will be paid on or about September 14, 2010 to holders of
record of common shares as of the close of business on August 30, 2010.

In compliance with Section 19 of the Investment Company Act of 1940, RAP
will provide a notice to shareholders of any distribution that does not
consist solely of net investment income. Such a notice will be for
informational purposes only, and will disclose, among other things,
estimated portions of the distribution, if any, consisting of net
investment income, capital gains and return of capital. No such notice
is included with the distribution announced today because, based upon
information currently available to RAP, RAP believes this distribution
consists solely of net investment income. Shareholders should not use
the information provided in this press release or any notice delivered
in compliance with Section 19 of the Investment Company Act of 1940 in
preparing their tax returns. RAP will send shareholders a Form 1099-DIV
for the calendar year indicating how to report distributions received
from RAP for Federal income tax purposes.

RAP is a closed end investment company advised by RMR Advisors, Inc.

WARNINGS REGARDING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE
BASED UPON RAP’S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR NUMEROUS REASONS, SOME OF
WHICH ARE BEYOND RAP’S CONTROL. FOR EXAMPLE, THIS PRESS RELEASE STATES
THAT RAP BELIEVES THE DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE
CONSISTS SOLELY OF NET INVESTMENT INCOME. IN FACT, A PORTION OF THE
DISTRIBUTION DESCRIBED IN THIS PRESS RELEASE MAY CONSIST OF CAPITAL
GAINS AND/OR RETURN OF CAPITAL. FOR THESE AND OTHER REASONS, INVESTORS
SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

SOURCE: RMR Advisors, Inc.

RMR Advisors, Inc.
Timothy A. Bonang, Vice President, Investor Relations, or
Carlynn Finn, Manager, Investor Relations
617-796-8253
www.rmrfunds.com

Copyright Business Wire 2010

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Posted by admin on August 24th, 2010

Hypo Real Estate, BNP, SocGen Hold Most Greek Sovereign Debt

Hypo Real Estate, BNP, SocGen Hold Most Greek Sovereign Debt
August 20, 2010, 10:56 AM EDT

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By Niklas Magnusson

Aug. 20 (Bloomberg) — Germany’s Hypo Real Estate Holding AG and France’s BNP Paribas SA and Societe Generale SA have the biggest holdings of Greek sovereign debt among European Union banks, according to a European Commission report.

Hypo Real Estate held 7.9 billion euros ($10 billion) of Greek government bonds in March, the Commission said in a report today, citing data from the EU’s bank stress tests published last month. BNP Paribas held 5 billion euros of debt and Societe Generale had 4.2 billion euros.

Hypo Real Estate was one of the seven out of 91 EU banks that failed the stress test because they lacked adequate reserves to maintain a Tier 1 capital ratio of at least 6 percent in the event of a recession and sovereign-debt crisis. European banking stocks, including BNP Paribas and Societe Generale, have fallen this year amid concern Greece may default.

“Not only would debt restructuring come at very high costs for Greece, also other euro-area countries would suffer high costs,” the commission said. “French, German and British banks are most exposed in nominal terms, although claims on Greece represent a relatively small fraction of their balance sheets.”

The following is a table of the top 10 banks by gross sovereign exposure to Greece, according to Committee of European Banking Supervisors stress test data, which was compiled by the European Commission. The numbers are in billions of euros.

–Editor: Dylan Griffiths, Christiane Lenzner.

To contact the reporter on this story: Niklas Magnusson in Stockholm at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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Posted by admin on August 22nd, 2010

Ray Lewis forms commercial real estate company

Ray Lewis is venturing into the real estate business.

The Baltimore Ravens All-Pro linebacker has formed RL52 Realty, a commercial real estate advisory firm, designed to help clients buy or sell, lease and manage properties.

Lewis, entering his 15th NFL season, recently opened the firms first office in Boca Raton, Fla.

The South Florida market was an ideal location because its the fifth-largest metropolitan region, Lewis said in a statement.

We believe this area currently offers one of the most opportunistic commercial real estate environments in the country, Lewis said, adding his team of workers already has deep ties to the market.

The company plans to open additional offices in high value metro markets.

RL52 Realty will officially kick off at the International Council of Shopping Centers (ICSC) conference Aug. 22-24, 2010, in Kissimmee, Fla.

Other business ventures for Lewis include MVP Entertainment, a 63,000-square-foot family entertainment venue set to open at the Hunt Valley Towne Centre. Lewis was previously the namesake of a shuttered barbecue restaurant in Canton.

Lewis was also part of a development team slated to build a mixed-use project south of Mamp;T Bank Stadium, now the proposed site of a future Baltimore City slots parlor.

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Posted by admin on August 22nd, 2010

The Oil Spill Is Hurting Gulf Coast Real Estate

The Deepwater Horizon oil spill has left behind more than environmental damage. Floridas already-ravaged real estate market took another knock after oil began to seep onto its beaches. In the Florida Panhandle and on Alabamas southern coast in particular, the market is suffering. Even in areas that will never be affected by the spill, like Houston, Tex., uncertainty about the oil market is slowing sales.

In a report released today by ClearCapital, a real estate data provider, 24% of real estate brokers said the spill negatively affected their market. They report that homes in their markets have fallen in price by 5% to 15% since last year.

Balls of tar washing up on the beach would make any real estate deal tougher. But in many cases, slowing sales have as much to do with perception as reality.

A scant 3.2% of respondents in the survey reported that the spill had actually damaged their property. In St. Petersburg, Fl., hundreds of miles from the spill and with clean water that is likely to stay that way, home sales had been climbing up until the spill began. By June, however, year-over-year sales had fallen by 8%, according to ClearCapitals data.

This is further proof of how volatile sand state real estate still is. Even in Florida cities that were starting to see a fragile housing recovery, a relatively distant environmental catastrophe was enough to tip the market in the opposite direction.

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Posted by admin on August 21st, 2010

Atlantic Station shops, office tower under contract

By Rachel Tobin

The Atlanta Journal-Constitution

One of Atlantas biggest real estate trophies — a crucial retail section of Atlantic Station — is under contract, according to a person with knowledge of the deal. The Atlanta Business Chronicle also reported online Friday that the 5-year-old retail project has a lead buyer.

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Posted by admin on August 21st, 2010

Did real estate agent play while owner was away?

Adam Bunge, an attorney, and his wife, Sarah Bunge, a Lutheran pastor, put their Maple Grove home up for sale and headed off to London this year for a four-month &"work holiday.&"

While they were gone, they allege in a lawsuit filed last week, their real estate agent used their house and possessions for &"unauthorized sexual escapades,&" staining their sheets, couch, carpet and other surfaces.

Coldwell Banker Burnet spent more than $7,000 to clean the home and replace sullied furniture, sheets, towels, the couple’s robes and her negligee. But the family says they were repulsed by the intrusion and can’t stay there anymore.

&"It feels like we have been violated in every sense of the word,&" Adam Bunge said in an interview.

The suit also alleges that the agent, Steven Curtis Skar, or someone on his behalf, accessed credit card information on the Bunges’ home computer and bought things online. Skar denies the suit’s allegations, according to his attorney, Francis Rondoni.

Coldwell terminated Skar over the allegations, said Pat Ginsbach, a group leader with the agency and Skar’s former supervisor. And just a week ago, the state Commerce Department revoked Skar’s real estate license, saying he engaged &"in non real estate-related activities for over four hours without permission, knowledge or consent of the homeowner, resulting in various repair and replacement costs.&" Skar waived his right to a hearing, according to a department memorandum.

‘Gross, nasty’ scene

Bunge said he first learned of a problem when his next-door neighbor e-mailed him in England, &"saying there was some weird stuff going on at our house the night before.&" A group of neighbors had noticed a bedroom light on and knocked on the door to investigate.

Skar answered and explained that he was cleaning for an open house the next day and would be gone in 15 minutes, the neighbor told Bunge. Skar left the house with another man, according to neighbors, Bunge said.

The neighbors sensed something wasn’t right. With Bunge’s permission, a neighbor and one of Bunge’s relatives entered the house the next day and found the mess, which they reported to him. He called Coldwell’s Ginsbach, who drove to the house with her husband.

Ginsbach said that in 35 years in real estate, she’d never seen anything like it. A brown leather sofa, two nearby chairs and two end tables appeared to have been recently stained or soiled. A stairway rug was similarly soiled, as were the sheets in the master bedroom.

&"It was gross, nasty,&" said her husband, Marvin Silverman, a retired real estate agent.

Used towels were strewn around the bathroom. An open bottle of lotion was in the kitchen.

Bunge said that in addition, $1,300 was charged to his American Express account by someone using his home computer.

Ginsbach said that Skar denied any unauthorized activities, insisting he’d gone to the house simply to clean. Coldwell fired him May 10.

The Bunges’ suit against Skar and Coldwell, filed in Hennepin County District Court by St. Paul attorneys Kelly Hadac and Daniel Haws, says Coldwell acknowledges the &"unauthorized sexual escapades&" and spent $7,482 to change the home’s locks, hire professional cleaners and replace all soiled items.

Maple Grove police Capt. Keith Terlinden said his department is actively investigating allegations about what went on at the house, and &"we will not name a suspect at this time.&"

Had to move

Attorney Rondoni said in an e-mail that Skar &"denies that any sexual relations took place at the plaintiffs’ home and also denies that any financial information was taken, used or accessed in any way.&" Rondoni said the Commerce Department made no findings of sexual activity or financial irregularity.

&"Many others had access to the plaintiffs’ home,&" Rondoni wrote. &"The sensational nature of the plaintiffs’ allegations are better resolved in court rather than played out in the media.&"

Leonard MacKinnon, marketing director for Coldwell Banker Burnet in Minnesota, said, &"We don’t comment on pending litigation.&"

Bill Gerst, vice president of public affairs for the Minneapolis Area Association of Realtors, said, &"This association has 7,800 agents, and this would clearly be an isolated incident.&" Christopher Galler, chief executive officer of the Minnesota Association of Realtors, said the group has a code of ethics more stringent than state law.

Bunge said Skar is a brother-in-law of one of his wife’s cousins, a Duluth real estate agent who recommended him. Bunge said Skar seemed to be &"a nice guy.&"

Since returning home in June, the family has tried to sleep in the house but found they couldn’t stomach it. Instead, they’ve stayed with friends and relatives and are closing on a new house next week. &"It doesn’t feel like it’s our home anymore,&" Bunge said.

The lawsuit alleges that gay sex occurred in the house, but Bunge said the kind of sex isn’t an issue.

&"I don’t care what anyone does in their bedrooms,&" he said. &"My wife and I have marched in gay pride parades in Chicago. She was in her Lutheran pastor collar. I would have been repulsed if this was a heterosexual couple doing the things that they were apparently doing in my marital bed.&"

Staff librarian Sandy Date did research for this report. Randy Furst • 612-673-7382

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Posted by admin on August 16th, 2010

Hypo Real Estate’s Quarterly Loss Narrows as Bad-Loan Provisions Decline

Hypo Real Estate Holding AG, the
only German lender that failed the European Union’s banking
stress test last month, reported a smaller second-quarter loss
as it set aside less money to cover bad loans.

The pretax loss narrowed to 395 million euros ($509
million) from 664 million euros a year earlier, the Munich-based
lender said in an e-mailed statement today. Provisions for risky
loans declined to 194 million euros from 881 million euros.

Hypo Real Estate, led by Chief Executive Officer Manuela Better, reiterated that it doesn’t expect to be profitable in
2010. The bank may provide guidance for 2011 toward the end of
this year, once the planned transfer of non-strategic assets and
risk positions to a so-called bad bank has been concluded.

In the second-quarter, “the lion’s share of the loan-loss
provisions was recognized on real estate loans, reflecting the
strained situation still present on real estate markets,” Hypo
Real Estate said in today’s statement.

The lender said on July 8 that it received approval to
establish a bad bank to transfer as much as 210 billion euros of
investments, representing as much as 55 percent of Hypo Real
Estate’s total assets at the end of June. The assets have to be
moved to the new entity, named FMS Wertmanagement, before the
end of the year.

Hypo Real Estate, fully owned by the government’s Soffin
bank-rescue fund, failed the EU stress test in July while 13
other German banks passed. The rescue fund took over the lender
in 2009 following a squeeze-out that forced minority investors,
including US investor J. Christopher Flowers, to sell their
remaining shares.

Expenses for Soffin’s “liquidity support” totaled 120
million euros in the quarter, Hypo Real Estate said today.

To contact the reporter on this story:
Oliver Suess in Munich at
osuess@bloomberg.net

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Posted by admin on August 15th, 2010

Real-Estate Brokers Press Feinberg for BP Fund to Compensate Their Losses

Realtors are pressing Kenneth Feinberg, who runs the $20 billion claims fund for victims of
the BP Plc oil spill, to reimburse them for their lost business
in states along the Gulf of Mexico.

Feinberg, who has called real-estate agents a “major
political force,” met yesterday in Washington with the National
Association of Realtors, a trade group, and with industry
representatives from Texas, Louisiana, Mississippi, Alabama and
Florida to discuss the pleas for aid, said Malcolm Young,
president of the Louisiana Realtors association.

The spill’s effects on Realtors may provide an early test
of Feinberg, who must determine who was most affected by the
biggest US oil spill. Feinberg will have to sort out effects
on a housing market already in crisis and weigh claims for lost
sales and rentals in areas never tarred by the oil.

“You’re talking about lots of money” if “subjective
claims” of lost business all along Florida’s west coast are
included, Wendell Davis, president of the Florida Realtors, said
in an interview. Claims solely from the state’s northwestern
Panhandle, where beaches were directly affected and property
sales are down 45 percent from previous years, may reach $30
million, he said.

Amy Weiss, a spokeswoman for Feinberg, declined to comment
on yesterday’s meeting.

The Realtors and Feinberg are close to agreeing to a set of
criteria he will use, Davis said.

“Our focus has been getting a seat at the table and making
sure we are treated fairly,” he said.

1.2 Million Realtors

The National Association of Realtors, a Washington-based
membership organization of real-estate agents, has 1.2 million
members, according to Lucien Salvant, a spokesman.

The organization spent $8 million lobbying in Washington
during the first six months of this year, more than AARP, the
group that advocates for people 50 and older on issues such as
health care, according to the Center for Responsive Politics in
Washington.

Feinberg, a Washington lawyer who previously administered
claims for victims of the Sept. 11 attacks, has commented on the
Realtors’ persistence and their influence.

“I’m hearing from them constantly” and they are a “major
political force,” Feinberg said in testimony before the House
Judiciary Committee on July 21.

While Feinberg questioned the legal standing of some claims
from brokers and agents, he said they made a “credible
argument” that “something should be done for them.”

The Gulf Coast Claims Facility that Feinberg will
administer is scheduled to start operating on Aug. 23. The fund
was created by BP and the Obama administration.

Negative Image

The negative image created by the oil spill could damage
real-estate markets for years, Davis said.

“That threat is not going to go away for a very long
time,” he said.

The spill cost Molly McKinnon, a Realtor based in
Pensacola, Florida, a commission of $8,750 on a property near
Biloxi, Mississippi, she said in an interview.

A client canceled the contract, saying she didn’t think
she’d be able to rent out the condo. According to McKinnon, BP
officials have said the claim she filed on June 28 must “wait
on Feinberg to decide what to do.”

She said she has had to cancel her health insurance and her
own home is close to foreclosure.

“I’m just broke, like a bunch of other Realtors,”
McKinnon said.

To contact the reporter on this story:
Jim Snyder in Washington at
jsnyder24@bloomberg.net.

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Posted by admin on August 15th, 2010

Jefferies Adds U.S. Head of Real Estate Investment Banking

NEW YORK, Aug 12, 2010 (BUSINESS WIRE) –
Jefferies today announced the addition of John P. Ockerbloom, who joins
as a Managing Director and U.S. Head of Real Estate Investment Banking.

“Providing Jefferies’ full range of financing, M&A, and distribution
capabilities to corporate real estate clients and real estate private
equity firms represents one of our largest opportunities in investment
banking,” said Benjamin D. Lorello, Global Head of Investment Banking
and Capital Markets at Jefferies. “We are excited to have John join our
team, as he brings the experience and client relationships to lead this
effort for our firm.”

Mr. Ockerbloom brings to Jefferies more than 13 years of real estate
investment banking experience. He joins Jefferies from Morgan Keegan
where he served as Head of Real Estate and Lodging Investment Banking.
Prior to this, Mr. Ockerbloom spent three years at Wachovia Securities
as a Managing Director in the Real Estate Investment Banking Group, and
nine years at Bank of America, most recently as a Managing Director in
the Real Estate Investment Banking Group. Prior to Bank of America, Mr.
Ockerbloom practiced real estate and securities law for six years at
Sherburne, Powers & Needham. He received his JD from Northeastern
University School of Law and his BA from Westfield State College.

Jefferies, a global securities and investment banking firm, has served
companies and their investors for more than 48 years. Jefferies &
Company, Inc. is the principal operating subsidiary of Jefferies Group,
Inc.
/quotes/comstock/13*!jef/quotes/nls/jef
(JEF
23.36,
-0.14,
-0.60%)
.

SOURCE: Jefferies

Jefferies
Tom Tarrant, 203-708-5989
ttarrant@jefferies.com
or
Jefferies
Desiree Maghoo, 44 20 7029 8085
dmaghoo@jefferies.com
or
CJP Communications
Josh Passman, 212-279-3115, x203
jpassman@cjpcom.com

Copyright Business Wire 2010

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Posted by admin on August 14th, 2010