The European Commission is proposing that the European Securities and Markets Authority, which is in Paris, oversee the London Interbank Offered Rate and other benchmarks. The proposal is meant to create "a framework to supervise indices of reference, with sanctions for not respecting established principles," EU Internal Market and Services Commissioner Michel Barnier said. "Doubts about the precision and integrity of indices of reference could undermine market confidence, cause important losses for consumers and investors, and damage the real economy."
Overseas Union Enterprise in Singapore is feeling out market demand for a hotel REIT listing that would raise $800 million, sources say. This would be Singapore's third-largest IPO this year. The company also named a CEO to head the REIT and said it has received permission from the Singapore stock exchange for the REIT.
REITs are feeling the effects of rising interest rates. Previously they had been the beneficiary of investors desperate for yield. "A change in rates impacts their cost of capital, and it impacts their ability to acquire aggressively," according to David Toti, a REIT analyst at Cantor Fitzgerald.
RXR Realty is buying a 49% stake in New York Ciy's Worldwide Plaza. It will pay $660 million and receive an option to buy the rest of the Manhattan property. It is paying more for its half share than the entire building traded for in 2009, according to sources.
The merger between Colonial Properties Trust and Mid-America Apartment Communities will create the second-largest U.S. multifamily REIT, ranking behind Equity Residential.
It is a major development for this asset class and news of the deal has fueled speculation that more multifamily M&As will follow.