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The week in global real estate - 27 July 2020

The week in global real estate 27 July 2020  hero

A weekly update of the biggest real estate news from around the globe.

Institutional investors / REITs

  • BH Properties has launched a $200M fund to acquire and finance real estate assets that are in receivership or facing bankruptcy. The fund has been set up to help commercial borrowers and landlords once the commercial eviction moratoriums and government assistance expires later this year. More info here.
  • Cohen Brothers Realty reportedly owes $1B in commercial mortgage-based security debt. Half of the loans have had missed payments since April. More info here.

Retail

  • The Gap has been ordered to continue to pay their landlord $3M in monthly rent for their 5,575 sqm space on Broadway in New York, and provide a further $5.8M bond to secure payment of rent arrears from prior months. More info here.
  • Simon Property Group and Authentic Brands Group have partnered to acquire bankrupt retailer Brooks Brothers for $305M. A hearing for the bid has been set for 3 August 2020, alongside a deadline for competing bids of 5 August 2020. More info here.
  • Kishin RK plans to create a network of 1,000 cloud kitchens across Asia, Europe and the US. Globally cloud kitchen revenue is expected to increase to $72B by 2027. More info here.
  • 40,000 tourism-related hospitality businesses have closed in Spain due to the coronavirus pandemic. This is expected to rise to 65,000 by the end of the year. More info here.

Office

  • WeWork is facing a vacancy crisis as its vacancy rate hits 20% in New York City. The firm has 176,516 sqm of space that is vacant or likely to become vacant in coming months. More info here.
  • Property developer V-leader is going ahead with their plans for a 40 storey ‘stacked tower’ in Melbourne. The development will include a hotel and 24,400 sqm of office space. More info here.
  • Beringea and Connect Ventures recently completed a study that found that 20% of start-up companies do not plan on returning to their offices post-coronavirus. More info here.

Industrial

  • Tesla has started construction at its new 890 ha Gigafactory in Austin. A drone video of the latest progress has also been released. More info here.
  • A joint venture between Captiva Partners, Avalon Investment Company and Westbrook Partners has acquired 17,559 sqm of creative office and industrial space in Los Angeles for $38M. More info here.

Hotels

  • Radisson Hotel Group has added six hotels to its African portfolio with new properties in Mali, Nigeria, Ghana, Ethiopia and two in South Africa. Radisson Hotel Group now manages approximately 100 hotels within 32 markets in Africa. More info here.

Housing

  • Agents are starting to market a new feature in houses: a 'zoom room' or area for video conferencing. More info here.
  • Ireland plans to extend their help-to-buy government subsidy for first home buyers beyond 2020. The scheme offers first home buyers a tax rebate of up to €30,000 or 10% of the value of a new property if purchased before the end of the year. More info here.

Related Experts

Renee Lintott

Strategic Analyst

Auckland

Renee was the recipient of the Blair Hargrave/Colliers  Scholarship in 2019 before joining the  Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing  her tertiary qualifications and joined full time in mid 2021. 

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