THE INTELLIGENT INVESTOR
April 24, 2013, 12:25 p.m. ET
Here Comes the Next Hot Emerging Market: the U.S.
By JASON ZWEIG
The investment visionary who coined the term "emerging markets" and helped launch the first funds to invest in developing countries thinks he has spotted what you might call the next great emerging market.
It is called "the United States."
http://online.wsj.com/article/SB10001424127887324763404578432832232151840.html
Thursday, April 25, 2013
Samsung SRA Asset Management and Cushman & Wakefield Investors acquire 30 Crown Place in the City of London
SAMSUNG SRA ASSET MANAGEMENT AND CUSHMAN & WAKEFIELD INVESTORS ACQUIRE 30 CROWN PLACE IN THE CITY OF LONDON
24 Apr, 2013, London
Samsung SRA Asset Management ('Samsung SRA') through Cushman & Wakefield Investors ('CWI') has acquired 30 Crown Place, London EC2, on behalf of South Korean institutional investors from a fund managed by Hannover Leasing GmbH & Co. KG.
http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Language=EN&repId=c59700005p&Country=GB
24 Apr, 2013, London
Samsung SRA Asset Management ('Samsung SRA') through Cushman & Wakefield Investors ('CWI') has acquired 30 Crown Place, London EC2, on behalf of South Korean institutional investors from a fund managed by Hannover Leasing GmbH & Co. KG.
http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Language=EN&repId=c59700005p&Country=GB
Distressed Debt Buyers Eye European Market
Distressed Debt Buyers Eye European Market
Apr. 24, 2013
Beth Mattson-Teig
Investors hunting for higher yields are turning their attention to Europe, where a substantial pipeline of distressed commercial real estate debt is poised to hit the market.
http://nreionline.com/private-equity/distressed-debt-buyers-eye-european-market
Apr. 24, 2013
Beth Mattson-Teig
Investors hunting for higher yields are turning their attention to Europe, where a substantial pipeline of distressed commercial real estate debt is poised to hit the market.
http://nreionline.com/private-equity/distressed-debt-buyers-eye-european-market
Tuesday, April 23, 2013
Top of Mind: Bond Bubble Breakdown
Top of Mind: Bond Bubble Breakdown
Published April 22, 2013
Hi all, just out with a new Top of Mind: Bond Bubble Breakdown. Near multi-generational low bond yields, driven at least in part by US Federal Reserve asset purchases, has pushed the question of whether or not the bond market is a bubble to Top of Mind.
Published April 22, 2013
Hi all, just out with a new Top of Mind: Bond Bubble Breakdown. Near multi-generational low bond yields, driven at least in part by US Federal Reserve asset purchases, has pushed the question of whether or not the bond market is a bubble to Top of Mind.
Monday, April 22, 2013
Docklands: Shifting the market dynamic for Melbourne CBD office
Docklands: Shifting the market dynamic for Melbourne CBD office
Australia ViewPoint
SUMMARY
Docklands has been the engine room of growth in the Melbourne CBD office market over the last decade or so and based on existing development will continue to be over 2013 and 2014. The historical strong growth has been well absorbed against a backdrop of strong conditions in the office occupier markets, which saw the Melbourne market outperform other capital cities in terms of space growth and yield. With occupier conditions now materially weaker, forthcoming supply in Docklands poses clear risks to CBD vacancy. To date, the market seems to be digesting this as part of a cyclical slowing, a rebalancing or “normalisation” after a period of strength, rather than posing a material risk to the long run performance of the Melbourne market. Yields have been relatively stable, particularly for premium assets. We think that is likely to remain the case through 2013 and 2014.
Download full report
Australia ViewPoint
SUMMARY
Docklands has been the engine room of growth in the Melbourne CBD office market over the last decade or so and based on existing development will continue to be over 2013 and 2014. The historical strong growth has been well absorbed against a backdrop of strong conditions in the office occupier markets, which saw the Melbourne market outperform other capital cities in terms of space growth and yield. With occupier conditions now materially weaker, forthcoming supply in Docklands poses clear risks to CBD vacancy. To date, the market seems to be digesting this as part of a cyclical slowing, a rebalancing or “normalisation” after a period of strength, rather than posing a material risk to the long run performance of the Melbourne market. Yields have been relatively stable, particularly for premium assets. We think that is likely to remain the case through 2013 and 2014.
Download full report
Tuesday, April 16, 2013
ZEW: Poor data cause concern among analysts
Commerzbank Corporates & Markets
Economic Research
https://research.commerzbank.com
Economic Briefing
ZEW: Poor data cause concern among analysts
The ZEW Index for economic expectations in Germany tumbled from 48.5 to 36.3 in April, which was a stronger fall than expected by most analysts. The camp of economic optimists has clearly shrunk. This was probably caused by the decline in sentiment indicators in March and the poor data from German industry. Even so, we still expect the German economy to pick up considerably in the coming months. This is likely to be confirmed by the purchasing managers’ index and the Ifo business climate – due next week – that should recover from March-setbacks.
Analyst:
Ulrike Rondorf
Economic Research
https://research.commerzbank.com
Economic Briefing
ZEW: Poor data cause concern among analysts
The ZEW Index for economic expectations in Germany tumbled from 48.5 to 36.3 in April, which was a stronger fall than expected by most analysts. The camp of economic optimists has clearly shrunk. This was probably caused by the decline in sentiment indicators in March and the poor data from German industry. Even so, we still expect the German economy to pick up considerably in the coming months. This is likely to be confirmed by the purchasing managers’ index and the Ifo business climate – due next week – that should recover from March-setbacks.
Analyst:
Ulrike Rondorf
Eco Analysis - German ZEW survey fell in April (H. Amourda, B. Hilliard)
Eco Analysis - German ZEW survey fell in April (H. Amourda, B. Hilliard)
■ German ZEW survey fell in April
Waiting for the WEO of the IMF, some key economic data were released this Tuesday. The German ZEW survey (economic sentiment) fell for the first time since November 2012, from 48.5 to 36.3 in April. On the inflation side, the final euro aggregate CPI inflation confirmed the flash estimate at 1.7% yoy while the UK CPI printed at 2.8% yoy in March. Looking ahead, we will watch closely the UK labour data and MPC minutes due to be released on Wednesday.
The German ZEW survey reported a fall in both current situation (down 4.4 points to 9.2) and economic sentiment (down 12.2 points to 36.3). The Cyprus bail-in and questions on the euro area crisis management probably affected investors' sentiment. However, the balance of answers is still positive and points to an improvement of the economic growth in the next six months. Moreover, it is too early to expect a continued downward trend in sentiment given some recent positive hard data, but confirms our view of weaker growth in Q2.
■ German ZEW survey fell in April
Waiting for the WEO of the IMF, some key economic data were released this Tuesday. The German ZEW survey (economic sentiment) fell for the first time since November 2012, from 48.5 to 36.3 in April. On the inflation side, the final euro aggregate CPI inflation confirmed the flash estimate at 1.7% yoy while the UK CPI printed at 2.8% yoy in March. Looking ahead, we will watch closely the UK labour data and MPC minutes due to be released on Wednesday.
The German ZEW survey reported a fall in both current situation (down 4.4 points to 9.2) and economic sentiment (down 12.2 points to 36.3). The Cyprus bail-in and questions on the euro area crisis management probably affected investors' sentiment. However, the balance of answers is still positive and points to an improvement of the economic growth in the next six months. Moreover, it is too early to expect a continued downward trend in sentiment given some recent positive hard data, but confirms our view of weaker growth in Q2.
Chile – Consumer confidence retreats in March.
Chile – Consumer confidence retreats in March.
March consumer confidence fell to 56.8 from 58.1 in February. This was the lowest confidence level since a 53.4 print reached in November. However, compared with last March, consumer confidence improved 22.9%. We continue to expect a gradual moderation in domestic demand during the year, helping to keep inflation in check and the policy rate steady.
March consumer confidence fell to 56.8 from 58.1 in February. This was the lowest confidence level since a 53.4 print reached in November. However, compared with last March, consumer confidence improved 22.9%. We continue to expect a gradual moderation in domestic demand during the year, helping to keep inflation in check and the policy rate steady.
Monday, April 15, 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
Economics Research | Asia Ex-Japan
15 April 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
The surprisingly weak Q1 GDP data in China have led to the important question: will the government loosen policy to stimulate the economy as it did in 2009 and 2012? We believe policy easing is not likely. An article published today by the newly-elected Minister of Finance Lou Jiwei reinforces our view.
15 April 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
The surprisingly weak Q1 GDP data in China have led to the important question: will the government loosen policy to stimulate the economy as it did in 2009 and 2012? We believe policy easing is not likely. An article published today by the newly-elected Minister of Finance Lou Jiwei reinforces our view.
SBA 504 Loan
SBA 504 Loan
The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.[1] As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses. The 504 program works by distributing the loan among three parties. The business owner puts a minimum of 10%, a conventional lender (typically a bank) puts up 50%, and a so-called Certified Development Company (CDC) puts up the remaining 40%. Certified Development Companies are established under the 504 code as non-profit corporations set up to support economic growth in their local areas. There are a few hundred such CDCs nationwide.[2] The maximum amount of the loan is $5 million ($5 million for meeting SBA-defined policy goals, and $5.5 million for manufacturers and some energy-related policy goals), and if the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.
Eligibility
In order to qualify for the program, the borrower must meet the SBA's definition of small business and must plan to use over half (51%) of the property for its own operations within one year of ownership; if the building is to be newly constructed the borrower must use 60% at once and plan to occupy 80%. The borrower may form a real-estate holding company that lease 100% to the operating business, which then subleases surplus space (up to 49%). To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company.[3] As of 2009, the 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:[4]
- The company's average net income cannot surpass $5 million after taxes for the preceding two years.
- The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
- Does not have a tangible net worth in excess of $15 million.
Structure
There are three partners in an SBA 504 loan—the borrower, a bank or other regulated lender, and a CDC. Typically the borrower must contribute 10% of the total project cost; their bank lends 50% at their own rate and term (as long as the term is at least 10 years), and has a first lien on the assets being financed; and the CDC lends 40%, with a second lien. If the financing is for real estate, as most 504 loans are, the CDC's loan is for twenty years at a fixed rate of interest. The fully amortized rate for loans funding in August 2010 was 4.931%. The funds for these loans are raised through a monthly auction of bonds that are 100% guaranteed by the U.S. Government. If the financing is for long-lasting fixed equipment such as printing presses, commercial laundry equipment, manufacturing equipment, etc., the 504 loan term is 10 years.
If the borrower's company has less than two consecutive years of operating history or if the building or assets to be financed are considered "special purpose" (e.g., gas stations or some medical clinics), the borrower must increase their contribution by 5% for a total of 15%, and the CDC lends 5% less for a total of 35%-- in cases where the borrowers meet both of these conditions, they must increase to 20%, and the CDC lends 30%.
Total project costs can include the costs for land and existing building or equipment; hard construction/renovation; fixtures and equipment; certain furniture; professional fees including appraisals and environmental investigations; soft costs; and closing costs. Project costs can usually be financed in their entirety with a 504 loan, whereas most commercial bank loans only finance a percentage of the purchase price/appraised value and borrowers would have to come up with closing and soft costs out of pocket. If borrowers later decide to sell their property, 504 loans are assumable.
References
[1]^ Vance, David E. (2005). Raising Capital. Springer. p. 64. ISBN 978-0-387-25319-0.
[2]^ Tyson, Eric; Jim Schell (2008). Small Business for Dummies (3 ed.). Wiley. p. 88. ISBN 978-0-470-17747-1.
[3]^ http://sba.gov/
[4]^ http://www.sba.gov/financialassistance/borrowers/guaranteed/CDC504lp/index.htm
External links
CDC/504 loan program at the SBA
The Small Business Administration's Website
http://en.wikipedia.org/wiki/SBA_504_Loan
The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.[1] As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses. The 504 program works by distributing the loan among three parties. The business owner puts a minimum of 10%, a conventional lender (typically a bank) puts up 50%, and a so-called Certified Development Company (CDC) puts up the remaining 40%. Certified Development Companies are established under the 504 code as non-profit corporations set up to support economic growth in their local areas. There are a few hundred such CDCs nationwide.[2] The maximum amount of the loan is $5 million ($5 million for meeting SBA-defined policy goals, and $5.5 million for manufacturers and some energy-related policy goals), and if the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.
Eligibility
In order to qualify for the program, the borrower must meet the SBA's definition of small business and must plan to use over half (51%) of the property for its own operations within one year of ownership; if the building is to be newly constructed the borrower must use 60% at once and plan to occupy 80%. The borrower may form a real-estate holding company that lease 100% to the operating business, which then subleases surplus space (up to 49%). To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company.[3] As of 2009, the 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:[4]
- The company's average net income cannot surpass $5 million after taxes for the preceding two years.
- The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
- Does not have a tangible net worth in excess of $15 million.
Structure
There are three partners in an SBA 504 loan—the borrower, a bank or other regulated lender, and a CDC. Typically the borrower must contribute 10% of the total project cost; their bank lends 50% at their own rate and term (as long as the term is at least 10 years), and has a first lien on the assets being financed; and the CDC lends 40%, with a second lien. If the financing is for real estate, as most 504 loans are, the CDC's loan is for twenty years at a fixed rate of interest. The fully amortized rate for loans funding in August 2010 was 4.931%. The funds for these loans are raised through a monthly auction of bonds that are 100% guaranteed by the U.S. Government. If the financing is for long-lasting fixed equipment such as printing presses, commercial laundry equipment, manufacturing equipment, etc., the 504 loan term is 10 years.
If the borrower's company has less than two consecutive years of operating history or if the building or assets to be financed are considered "special purpose" (e.g., gas stations or some medical clinics), the borrower must increase their contribution by 5% for a total of 15%, and the CDC lends 5% less for a total of 35%-- in cases where the borrowers meet both of these conditions, they must increase to 20%, and the CDC lends 30%.
Total project costs can include the costs for land and existing building or equipment; hard construction/renovation; fixtures and equipment; certain furniture; professional fees including appraisals and environmental investigations; soft costs; and closing costs. Project costs can usually be financed in their entirety with a 504 loan, whereas most commercial bank loans only finance a percentage of the purchase price/appraised value and borrowers would have to come up with closing and soft costs out of pocket. If borrowers later decide to sell their property, 504 loans are assumable.
References
[1]^ Vance, David E. (2005). Raising Capital. Springer. p. 64. ISBN 978-0-387-25319-0.
[2]^ Tyson, Eric; Jim Schell (2008). Small Business for Dummies (3 ed.). Wiley. p. 88. ISBN 978-0-470-17747-1.
[3]^ http://sba.gov/
[4]^ http://www.sba.gov/financialassistance/borrowers/guaranteed/CDC504lp/index.htm
External links
CDC/504 loan program at the SBA
The Small Business Administration's Website
http://en.wikipedia.org/wiki/SBA_504_Loan
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