Sovereign-wealth funds, which have made a series of high-profile cash infusions into troubled U.S. banks in recent months, may next target real estate. "They could be a real partner in the growth and development of commercial real estate," said Guy Langford, an accounting principal in Deloitte LLP's mergers-and-acquisitions services practice. The funds have an estimated $875 billion in assets.
OMERS Realty Corp. acquired a 50% stake in the TD Canada Trust Tower in Toronto from Brookfield Properties Corp. for about $420 million. The building has 1.1 million square feet and is part of the 2.6 million-square-foot Brookfield Place office and retail complex.
Vornado Realty Trust and affiliates of Lawrence Ruben Co. received a six-month extension for a key deadline on plans for a 1.3 million-square-foot office tower that would rise above the Port Authority Bus Terminal in Midtown Manhattan.
Asian private-equity firms that focus on real estate have raised 32% more cash this year and have possibly helped fight off a property slump in the region. By comparison, private-equity funds as a whole in Asia saw the amount of funds raised fall by 21.5% during the first six months of 2008.
ING Real Estate unveiled a set of sustainability guidelines for future acquisitions. The company, which is the latest firm to announce a set of guidelines, based the rules partially on the U.S. Green Building Council's Leadership in Energy and Environmental Design program.