Carlyle Group is planning to build a portfolio of homes for the elderly in Japan. The portfolio could be valued as much as $1 billion and may eventually be spun off into a real estate investment trust. "Once the portfolio reaches a size of around $500 million or $1 billion, there should be an opportunity for us to potentially transform it into a senior housing J-REIT," said Rio Minami, head of Carlyle Japan Real Estate.
Morgan Stanley acquired the Japanese headquarters of rival Citigroup Inc. for $444 million. The sale comes as Citigroup tries to unload assets to counter write-downs from the subprime mortgage market mess.
Macquarie MEAG Prime REIT Chief Executive Franklin Heng said the Singapore-listed REIT may merge or sell its assets to another real estate investment trust in a bid to raise the its value. The disclosure fueled speculation that Singapore's once-hot REIT market may see further consolidation as larger trusts buy out smaller rivals.
Las Vegas-based nightclub operator Light Group sold a 50% stake in its operations to Zabeel Investments of Dubai. Terms were not disclosed. The deal comes as Light Group tries to expand into the hotel business.
A panel of experts addressing Coldwell Banker Commercial brokers in Orlando, Fla., said opportunities for commercial real estate investment remain plentiful in markets that might have been previously overlooked. Secondary and tertiary metropolitan markets across the country offer the best opportunities in the current market. "Capital is going to flow to the opportunities," said Glenn Mueller, a real estate investment strategist with Dividend Capital Group.