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Brookdale's takeover tale; 2 IPOs press forward

S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Merger monitor

* Brookdale Senior Living Inc. was reported this week to be in exclusive negotiations for a $3 billion potential takeover by Zhonghong Zhuoye Group Co. Ltd. Such a deal would be the biggest Chinese buyout in the U.S. senior care sector, according to Reuters. Ventas Inc. and Blackstone Group LP were reported earlier in 2017 to be potential suitors of Brookdale.

Stifel analysts said Brookdale's potential sale makes sense and would unlock currently unrecognized value in the company's stock. The prospective deal, however, will need to clear two hurdles: U.S. and Chinese regulatory clearance and lease change of control approvals from Brookdale's landlords, the analysts said.

* Kennedy-Wilson Holdings Inc. revised its initial all-stock offer to acquire Kennedy Wilson Europe Real Estate to add a cash component. The new cash-and-scrip proposal includes a roughly £288 million cash consideration and would change the post-merger ownership ratio to 76%-24% from 64%-36% in favor of Kennedy-Wilson Holdings.

On the road to IPO

* Safety, Income and Growth Inc. set the target price of its IPO at between $19 per share and $21 per share. The new real estate investment trust, established by iStar Inc., plans to issue 10,250,000 common shares in the IPO and also granted the underwriters an option to buy 1,537,500 additional shares.

* Four Springs Capital Trust, which disclosed plans to go public as a REIT in May, projects its IPO will price in the range of $17 per share to $19 per share. The company targets single-tenant retail, industrial, medical and other office properties.

* WeWork Cos. Inc. CEO Adam Neumann revealed at a lunch event in New York that an IPO of the company is imminent, although when or where it will take place is still undecided, according to Reuters.

Changing course

* Forest City Realty Trust Inc. finalized the elimination of its dual-class share structure following shareholder approval. The move was part of a deal that would ensure the board nomination of Ratner family members through 2021. Activist investor Scopia Capital Management LP pushed for the elimination of the dual-class structure in August 2016.

* Aiming to limit its focus to net-lease investing for its balance sheet, W. P. Carey Inc. unveiled plans to exit its retail fundraising platform. The company will cease all nontraded retail fundraising activities conducted by its broker-dealer arm, Carey Financial LLC, as of June 30.

Movers and shakers

* Three members of Granite REIT's board stepped down, while three candidates nominated by unit holder activists FrontFour Capital Group and Sandpiper Group were elected at the company's June 15 unit holder meeting. The move follows the unit holders' call and proxy adviser recommendations against the election of the three Granite nominees.

* Meanwhile, Taubman Centers Inc. continues to face pressure from activist investor Land & Buildings Investment Management LLC, which intends to call a special meeting to prod the company's board to act on "promised and much-needed governance enhancements." Taubman recently prevailed in its proxy fight with Land & Buildings, with all of the REIT's director slate elected.

Done deals

* Healthcare Trust of America Inc. wrapped up the acquisition of 44 assets from Duke Realty Corp. for about $1.4 billion and the integration of the latter's healthcare development and construction platform. The completed transactions were part of a $2.75 billion cash deal between the parties that was disclosed in May.

* AvalonBay Communities Inc. sold the 283-unit AVA University District apartment property in Seattle to American Campus Communities Inc. for $112.1 million, according to the Puget Sound Business Journal. Separately, AvalonBay expects to lower its funds from operations for the second quarter and full year to reflect certain yield maintenance penalty from its planned prepayment of roughly $556.3 million of debt.

Billboards and casinos

* Gateway Casinos & Entertainment Ltd. is hammering out a potential sale-leaseback deal with investors in Asia and North America for three Vancouver properties worth more than C$500 million. A deal could be reached by the third quarter, Gateway Executive Chairman Gabriel de Alba said in an interview with Reuters.

* OUTFRONT Media Inc. acquired a digital billboards portfolio in Canada in a $94.4 million cash-and-stock deal.

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