The WPJ
Sri Lanka Investor Plans $500 Million Offshore Redevelopment Fund

Sri Lanka Investor Plans $500 Million Offshore Redevelopment Fund

» Featured Columnists | By Alex Finkelstein | October 5, 2012 9:30 AM ET



Marine-Drive-Downtown-Mumbai-India.jpg Private Equity PE, the investment arm of Housing Development Finance Corp. (HDFC) of Colombo, Sri Lanka, sees a niche in the redevelopment and commercial development of India cities Mumbai, Chennai, Pune, Bangalore and Delhi.  PE announced it plans to raise $500 million by the end of this year for those projects.

According to DealCurry.com, PE already is lining up joint venture partners in Singapore, Qatar, Japan and the U.S. The fund has a net Internal Rate of Return (IRR) target of over 20%.  Sri Lanka is an island country in the northern Indian Ocean off the southern coast of the Indian subcontinent in southeast Asia. It was formerly known as Ceylon.



Senior Living Facilities in the UK Sold for $250 Million

Pramerica Real Estate Investors, the European arm of Newark, NJ-based Prudential Financial Inc. (NYSE: PRU), announced it has sold a portfolio of five senior living facilities in the United Kingdom for 154 million British pounds ($250 million US; 191 million euros). The buyer was a subsidiary of HealthCare REIT Inc. (NYSE: HCN).

The five properties, all opened in 2009, have a total 522 beds. The facilities were the final five communities held in two separate joint ventures between Sunrise Senior Living Inc. (NYSE: SRZ) and institutional funds managed by Pramerica. Those funds were set up in January 2005 and January 2007.  Sunrise will continue to operate the facilities.



Toronto Firms Sign $173 Million International Healthcare Properties Deal

GT Canada Medical Properties Real Estate Investment Trust (TSX-V:MOB.UN) and private equity firm NorthWest Value Partners Inc. announced they have signed a non-binding letter of intent for GT to purchase a portfolio of international healthcare real estate in Australia, New Zealand, Brazil and Germany. The deal also includes GT's acquisition of the NorthWest international healthcare platform from NorthWest and its affiliates. Buyer and seller are based in Toronto.

The companies say the total deal is valued at $170 million Canadian ($173 million US).  The deal will be funded through equity of $123 million Canadian (125.4 million US) at $1.87 per unit.  GT will also assume NorthWest's debt load of about $47 million Canadian. One Canadian dollar currently equals 98 cents US).



Boston's One Channel Center Receives $170 Million Construction Loan

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One Channel Center, Boston

One Channel Center, an under construction, 500,000-square-foot, 11-story office building in Boston's Seaport District has received a $170 million construction loan to complete the project by early 2014.  The Boston office of HFF arranged the loan but didn't disclose the lender's name.

When completed, the class A building and the adjacent 960-space parking garage will be leased entirely by 220-year-old State Street Corp. (NYSE: STT) on a long-term lease. The joint developers are New York City-based AREA Property Partners and Commonwealth Ventures of Boston.



Loan on 24 California Buildings Sold for $148 Million

A non-performing loan with an unpaid balance of about $148 million has been sold in the Los Angeles and San Diego office markets. The Irvine, CA office of HFF arranged the transaction but didn't disclose the names of buyer and seller.

The loan is secured by eight office properties and 16 other commercial buildings totaling about 900,000 square feet. The combined properties are about 60 percent leased.



Investcorp Buys Six Office Properties Valued at Over $140 Million

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Herb Myers

New York City-based Investcorp has expanded its real estate holdings with equity and debt investments in six high-quality office properties across key markets in the U.S. The buildings have over 900,000 square feet of leasable space and are valued at over $140 million, according to Investcorp. They are in the Raleigh-Durham area of North Carolina; Frisco, TX; and Denver, CO.

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Christopher Hoeffel

Herb Myers, a managing director in Investcorp's real estate group, said the properties were selected for their "strong tenant histories, locations in economically flourishing metropolitan communities and attractive 'going in' projected cash yields."

Myers' colleague, Christopher Hoeffel, says "Office properties (today) n growing markets with strong demand generators are on the rebound and can be purchased at better valuations than similar properties in major gateway cities."



Retail Center Cash Sale of $85 Million is Southern California's Largest Deal in 10 Years

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Riverside Plaza, CA

New York City private equity firm Vestar paid $84,844,000 cash to Lake Forest, IL-based Westminster Funds for Riverside Plaza, a 475,211-square-foot shopping center on 35 acres in Riverside, CA.  The California office of HFF, which represented the seller, said the sale was the largest of its kind in Southern California's Inland Empire region in the past 10 years. HFF didn't disclose the property's current occupancy level.

Vestar did the deal in a joint venture with a fund advised by UBS Global Asset Management of New York City. Vestar manages more than 22 million square feet of retail properties in the western U.S.



Florida Firms Merge in $40 Million Cash and Stock Deal

Believing that the real estate capital markets are opening again, Liberty International Holding Corp. of Fort Lauderdale, FL and Planet Five Development of Jacksonville, FL, have merged in a $40 million cash and stock deal.  The merged firms say they plan to build a $1 billion real estate investment platform over the next 12 to 18 months.

"The timing was right" to do the merger, says Planet Five president Paul Rohan. "We believe joining forces will provide a solid platform for new capital - capital that recognizes the real estate market is quickly gaining traction towards recovery."

Liberty president and CEO Christopher Anzalone, says the deal was primarily done "to aggressively increase shareholder stock value and implementation of future dividend payments."This merger makes that objective tangible, not only by leveraging our strategic ownership of boutique properties in places like South Beach, but also in defensive bread and butter shopping plazas."



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