Australia and New Zealand Banking Group, DBS Bank and Standard Chartered have been hired by Fortune Real Estate Trust to arrange and underwrite a $180 million loan for the REIT, according to a source. The three banks will look for other investors for the three-year loan, which includes a revolving credit facility. Fortune REIT plans to use the proceeds to acquire two properties in Hong Kong.
Whitestone REIT has acquired its first Dallas-area retail property, paying $15.7 million in cash for the Shops at Starwood. It also bought an adjacent 2.73-acre undeveloped parcel of land for $1.9 million. The REIT, which could add up to 36,000 square feet of retail and executive office space to the development, funded the land purchase through a loan.
Colonial Properties Trust has completed the repurchase of 1 million preferred shares for $47.5 million. It expects to record approximately $1.2 million in proceeds from the buyback for the fourth quarter of 2011.
Congress began 2011 with plans to reduce the government's role in mortgage finance. Instead, the government is more involved. For example, a payroll-tax cut extension is funded by diverting increased fees from Fannie Mae and Freddie Mac.
Industrial REITs have returned to normal operations, says Ben Butcher, CEO of STAG Industrial, as they are no longer feeling the impact of the poor economy. "We're seeing reasonably strong results in the field," Butcher said.