Edificios en Nueva York. Foto: DanielFoster437. PREI y L&L compran un conjunto de edificios de oficinas en Nueva York por 160 millones
In a $160 million joint venture, Prudential Real Estate Investors and L&L Holding Company, LLC, acquired 511-541 West 25th Street, three interconnected office properties in Manhattan’s Chelsea art gallery district, the companies announced. PREI, which is acquiring the properties on behalf of German institutional investors, is among the world’s largest real estate investment management and advisory businesses, and is a business of Prudential Financial, Inc.
Situated adjacent to the High Line – an elevated freight rail that was transformed into a public park – and two blocks from the Hudson River, the properties feature 200,000 square feet of space, including 300 feet of retail frontage on one of New York’s most prominent art gallery blocks. The buildings, which were constructed between 1910 and 1917 and renovated over the past two years, also have unobstructed views of the High Line.
“This acquisition is consistent with our investors’ strategy to own urban infill office properties in major cities,” said David Pahl, a managing director with PREI. “The unique location of these offices in one of New York’s most prominent art gallery districts, combined with the favorable market conditions, and the value L&L brings, made this an extremely attractive transaction for our investors.”
“This acquisition reflects our continuing efforts to seek out opportunistic and value-added opportunities in the New York metropolitan area,” said David W. Levinson, chairman and CEO of L&L Holding Company, LLC.
“The property offers exceptional upside potential, given the scarcity of office space along the High Line.”
CC-BY-SA-2.0, FlickrFoto: Johey24. Los promotores chinos salen fuera para saciar el apetito del inversor chino por bienes raíces en el exterior
Property firms have quickened their pace of offshore expansion to meet the appetite of Chinese consumers and find new opportunities beyond the tepid domestic property market.
In the first quarter of 2014, institutional investors’ offshore property investments rose 25 percent year-on-year to 2.1 billion dollars, while the sum going to residential property grew by 80 percent, according to Jones Lang LaSalle Inc, a global real estate services and investment management company.
The overseas residential property investment by China’s institutional investors in the quarter exceeded 1.1 billion dollars, smashing last year’s record of 600 million dollars. The real estate projects in Britain, Australia and the United States were most favored by Chinese investors.
Offshore expansion by Chinese investors gets more impressive than the domestic market because it has a higher potential profit, analysts say.
Wanda Group, one of China’s largest property developers, announced in January that it would invest up to 3 billion pounds (5.1 billion U.S. dollars) in British cities. Greenland Group also announced earlier this year that their overseas investment reached almost 35 billion yuan (5.6 billion U.S.dollars) in 2014.
Developers, abundantly liquid because of previous successes, are diversifying their portfolios, focusing on gateway cities, such as London, New York, Los Angeles and Singapore, according to Zhu Fei, researcher from Yuexiu Property Institution.
With the financial environment in foreign countries relatively benign compared to China, some property firms have gone public in Hong Kong or the United States, Zhu said.
Growing Appetite
The upsurge in overseas expansion can be attributed to the growing appetite of Chinese people for residential properties in pursuit of capital security, access to education and health care, permanent residency and citizenship, to name but a few.
Around 150,000 Chinese emigrate overseas annually, which is expected to generate a purchase demand for properties worth more than 75 billion yuan, said Li Qingwen, general manager of DTZ Real Estate Consultancy Company Guangzhou.
Traditional destinations of immigrants top the money flows, said Fu Zhenhuang, analyst from Deloitte, adding that investment has been most active in London, New York, Singapore, Sydney, Manchester and Hong Kong.
Statistics from Savills, a real estate agent, suggest that Chinese consumers invested 13.5 billion dollars in the overseas market in 2013, almost double that of 2012.
Huang Yuwei, executive CEO of an overseas property investment company, said his company sold less than 10 houses a year seven years ago, and now move 15 to 20 daily. “Investing in overseas property will be much more impressive in the next ten years,” he said.
Calculations based on the asset scale of the Chinese high net worth individuals suggest that 1,100 billion yuan will flow into overseas properties.
Foto: Gabriel Sanz. Cartica da otra vuelta de tuerca y demanda a Itaú para evitar la fusión con CorpBanca
Cartica Management, has amended its complaint in the matter of Cartica v. CorpBanca, Saieh, et al. to, among other things, include Itaú Unibanco Holding S.A. and Banco Itaú Chile (together, “Itaú”) as Defendants along with CorpBanca S.A. and Álvaro Saieh, its controlling shareholder. Other Defendants include CorpBanca’s Directors, its Chief Executive Officer, and its Chief Financial Officer; and Saieh’s holding companies (together, “CorpGroup”).
The complaint alleges Saieh, Itaú, CorpBanca and the other Defendants committed violations of anti-fraud provisions and disclosure requirements of the United States Securities Exchange Act of 1934. The complaint seeks to enjoin the closing of the proposed transaction. The case is pending in the United States District Court of the Southern District of New York.
Saieh, Itaú and CorpBanca are charged in the Amended Complaint with, among other things, continuing to withhold material information, and failing to correct material misstatements, even after Cartica filed its Complaint identifying multiple violations of U.S. securities laws. For example,
CorpBanca’s and Saieh’s two filings since Cartica commenced its lawsuit have been late and materially incomplete. First, a belated 20-F filing made by CorpBanca on May 15, 2014 provided incomplete and inconsistent additional disclosures, leaving the overall disclosures materially misleading. Second, on May 29, Saieh and CorpGroup filed a Schedule 13D that by CorpGroup’s own admissions in the Schedule should have been filed more than five years ago. Furthermore, the belated Schedule 13D failed to disclose that Saieh, Itaú, and CorpGroup had formed a group to hold shares for the purpose of effecting a change in control. The document also omitted any information regarding Saieh’s, CorpGroup’s and Itaú’s motivations for effecting a change-in-control at CorpBanca – even though the provisions of Section 13(d) require full and complete disclosures concerning, among other things, their intentions, agreements and acts related to the change in control at CorpBanca.
Saieh, CorpBanca and the other Defendants materially misstated to the market and their investors the size of the credit facility they entered in January 2014. They initially disclosed to the market that the credit facility was for US$950 million, and over the next four months they reiterated the US$950 million figure. Then, following Cartica’s filing of a lawsuit and increased pressure for additional disclosure, the Defendants’ most recent May 2014 disclosures revealed that the credit facility was for US$1.2 billion—a material misstatement of US$250 million.
Based on the most recent material misstatements and omissions made by Saieh, including the five-year delinquent and still-deficient Schedule 13D, it has become clear to Cartica that Itaú is actively working with Saieh to close the transaction, a transaction being supported by fraud. Cartica has therefore made the important decision to name Itaú as a defendant in the amended complaint filed yesterday.
“Our initial complaint made clear that Itaú and the Saieh entities had formed a group subject to the filing requirements of Section 13(d). We reasonably thought that Itaú would respond by belatedly complying with the law by jointly filing a 13D with the Saieh Group,” said Cartica’s Managing Director for Corporate Governance Mike Lubrano. “Unfortunately, Itaú decided to continue to flout U.S. securities law and regulations, and so we added Itaú as an additional Defendant and have asked the court to compel Itau to comply with US securities law.”
“The Itaú Transaction should be enjoined so that the Boards of CorpBanca, CorpGroup and Itaú, as well as the Boards of every other potential acquirer, receive the unmistakable message that any acquisition of CorpBanca must be fair and transparent,” said Cartica Managing Director Teresa Barger.
“Saieh’s, Itaú’s and CorpGroup’s failure to provide material information about this fraudulent deal is not mere oversight, it is a critical part of the plan to pull off this wrongful transaction,” Ms. Barger continued. “Saieh, Itaú and CorpGroup cannot fulfill their disclosure obligations without revealing to the public that they made a backroom deal to secure short term liquidity, cash and long-term benefits for Saieh and CorpGroup.
“The facts are that the piecemeal and delinquent disclosures remain incomplete, and every new disclosure raises new issues or reveals additional misstatements,” Ms. Barger said. “CorpBanca, Saieh and Itaú still have not disclosed many documents that would allow minority shareholders to make informed decisions about the proposed combination. Nor have they done anything to correct their omissions and misrepresentations or to end this wrongful scheme. Simply put: Saieh and the Defendants made or permitted misleading statements and omissions that led to the Itaú Transaction on its current unfair and undervalued terms, without CorpBanca’s minority shareholders having the opportunity to take any steps to protect their interests. Shareholders of U.S.-listed companies deserve better.”
Foto: Cobblucas, Flickr, Creative Commons. MiFID II supondrá para muchos profesionales independientes del mercado financiero el cese de su actividad
Jean Pierre Cuoni will step down as Chairman of EFG International in 2015 and is disposing of 30% of the Cuonis’ family shareholding in the company.
Jean Pierre Cuoni, Chairman of EFG International, has announced his intention to step down as chairman by not seeking re-election at the Annual General Meeting in 2015, the twentieth anniversary year of the company he co-founded in 1995. He has taken this decision on account of his age (77).
While he will be stepping down as chairman, the intention is that Jean Pierre Cuoni will remain a member of the board and will remain an active supporter of the business in an ambassadorial role. EFG International expects to announce a new chairman designate later this year.
EFG International is a global private banking group offering private banking and asset management services, headquartered in Zurich. EFG International’s group of private banking businesses operates in around 30 locations worldwide, with circa 2,000 employees. EFG International’s registered shares (EFGN) are listed on the SIX Swiss Exchange.
Photo: Norbert Aepli
. UHNW and HNW Clients will Continue to Value Propositions of Offshore Centers
Private wealth booked across borders reached $8.9 trillion in 2013, an increase of 10.4 percent over 2012 but below the increase in total global private wealth of 14.6 percent. As a result, the share of offshore wealth declined slightly from 6.1 percent to 5.9 percent, according to Boston Consulting.
Offshore wealth is projected to grow at a solid CAGR of 6.8 percent to reach $12.4 trillion by the end of 2018. The offshore model will continue to thrive because wealth management clients—particularly in the high-net-worth (HNW) segment, with at least $1 million in wealth, and in the ultra-high-net-worth (UHNW) segment, with at least $100 million—will continue to leverage the differentiated value propositions that offshore centers provide. These include access to innovative products, highly professional investment and client-relationship teams, and security (most relevant for emerging markets). Indeed, the latest tensions between Russia and Ukraine, as well as the escalated conflict in Syria, have highlighted the need for domiciles that offer high levels of political and economic stability.
In 2013, Switzerland remained the leading offshore booking center with $2.3 trillion in assets, representing 26 percent of global offshore assets. (See the accompanying exhibit.) However, the country remains under heavy pressure because of its significant exposure to assets originating in developed economies—some of which are expected to be repatriated following government actions to minimize tax evasion.
In the long run, Switzerland’s position as the world’s largest offshore center is being challenged by the rise of Singapore and Hong Kong, which currently account for about 16 percent of global offshore assets and benefit strongly from the ongoing creation of new wealth in the region. Assets booked in Singapore and Hong Kong are projected to grow at CAGRs of 10.2 percent and 11.3 percent, respectively, through 2018, and are expected to account collectively for 20 percent of global offshore assets at that point in time.
Overall, repatriation flows back to Western Europe and North America, in line with the implementation of stricter tax regulations, will continue to put pressure on many offshore booking domiciles. Reacting to these developments, private banks have started to revisit their international wealth-management portfolios. Some have acquired businesses from competitors—through either asset or share deals—while others have decided to abandon selected markets or to serve only the top end of HNW and UHNW clients. The goal is to exit subscale activities in many of their booking centers and markets, and in so doing to reduce complexity in their business and operating models.
Nonetheless, players that have decided to leave selected markets have not always obtained the results they hoped for. An alternative and potentially more effective course of action—one already embraced by some leading players—would be to establish an “international” or “small markets” desk that addresses all non-core markets.
The key to success is to clearly differentiate products and service levels by market and client segment. For core growth markets, full-service offerings that include segment-tailored products (including optimal tax treatment) should be featured. All other markets (and client segments) should be limited to standard offerings.
CC-BY-SA-2.0, FlickrFoto: RhysA. Aberdeen ya tiene sustitutos para Gary Marhsall al frente de las Américas
Aberdeen Asset Management announced the appointment of Mr. Andrew Smith and Mr. Bev Hendry as Co-heads of its business in the Americas, reporting directly to Chief Executive Martin Gilbert. Andrew and Bev will be based in Philadelphia, the firm’s headquarters in the Americas. The announcement was made this afternoon by Martin at the annual Aberdeen Investment Conference in New York City.
As previously announced, Gary Marshall, current Head of Americas, is returning to the United Kingdom, to serve as Chief Executive of Aberdeen’s recent acquisition, Scottish Widows Investment Partnership (subject to regulatory approval). During his four and a half years in the role, the business in the Americas region nearly doubled from $40 billion to $78 billion in assets under management.
Martin Gilbert, Chief Executive of Aberdeen Asset Management, comments: “Andrew’s and Bev’s combined expertise, experience and knowledge means they are well placed to lead Aberdeen’s business in the Americas, an important region for us. We have institutional, wholesale and closed-end fund investors located across the U.S., as well as significant footprints in Canada and South America. Our diverse range of investment capabilities in the equities, fixed income, property, alternatives and multi-asset investment areas means that we are positioned to continue to build our presence in the Americas.”
Bev Hendry is returning to Aberdeen from Hansberger Global Investors in Fort Lauderdale, Florida, where he has worked for six years as Chief Operating Officer. Bev established Aberdeen’s business in the Americas in Fort Lauderdale, moving from his home city of Aberdeen, Scotland, in 1995; he first joined Aberdeen in 1987. He left Aberdeen in 2008, when the company moved to consolidate its headquarters in Philadelphia, choosing to remain in Fort Lauderdale with his family. His return to his Aberdeen roots now that his family has grown, is a very welcome development for the firm. Bev is a Chartered Accountant and will serve as Co-head of Americas and Chief Financial Officer for Aberdeen’s business operations in the Americas.
Andrew Smith has been acting deputy to Gary Marshall during Gary’s tenure as Head of Americas, and Chief Financial Officer and Chief Operating Officer for Aberdeen’s Americas business. Having seen considerable growth in that business, it is appropriate that Aberdeen now split the two roles. Andrew will be Co-head of Americas and Chief Operating Officer for Aberdeen’s Americas business. He joined Aberdeen in 2000 via the acquisition of Murray Johnstone, a Glasgow-based fund manager, where he was operating in a senior capacity in that firm’s U.S. business. Originally from Glasgow, Scotland, Andrew has been living in the United States for 16 years; 4 of those were in Fort Lauderdale where he and Bev previously worked together.
Andrew and Bev will divide the various Head of Americas responsibilities between them, ensuring a clear allocation of duties while maintaining close cooperation and coordination. They will alternately chair Aberdeen’s weekly Executive Committee in the Americas.
Aberdeen has successfully integrated the Scottish Widows Investment Partnership (SWIP) team in the Americas. The SWIP acquisition, which was completed earlier this year, adds approximately $4 billion to the assets managed by the North American Fixed Income team.
Foto cedida. In de Wulf Named #1 Restaurant in Europe
Steve Plotnicki and Opinionated About Dining have officially unveiled this year’s list of the Top 100 European Restaurants featuring restaurants from 12 countries. More than 4,300 food enthusiasts contributed over 140,000 reviews as part of this year’s survey – the largest to date.
The 2014 list introduces a new “Top 10” with In de Wulf (Dranouter, Belgium) earning first place; La Maison Troisgros (Roanne, France) second; Quique Dacosta Restaurante (Denia, Spain) third; 41 Degrees (Barcelona) jumping from nineteenth to fourth; Le Louis XV-Alain Ducasse (Monte-Carlo, Monaco) fifth; Restaurant Amador (Mannheim, Germany) leaping from number nine to number six; noma (Copenhagen, Denmark) ranking seventh; The Fat Duck Restaurant (Bray-on-Thames, UK) eight; L’Astrance (Paris) ninth; and L’Arpege (Paris) rounding out the top 10.
“I anxiously await the trending styles and types of cuisine highlighted in the European list—it’s incredibly forward thinking and this year’s list is no different with our European voters showing they are on the cutting edge of the contemporary dining scene as illustrated by their voting In de Wulf to the top of the list,” explains Plotnicki. “There is also a resurgence of interest in restaurants featuring classical French cooking.”
New restaurants recognized this year include Azurmendi, Larrabetzu, Spain (19); Maaemo, Oslo, Norway (49); Andreas Caminada, Furstenau, Switzerland (54); Tim Raue, Berlin, Germany (62); Passage 53, Paris (71); Restaurant Bareiss, Baiersbronn, Germany (72); Oaxen Krog & Slip, Stockholm, Sweden (79); Marcus, London (97); and Yam’Tcha, Paris (100).
“This year’s list also features our first-ever ‘Just Missed’ list, which gives readers a look into the contenders for next year,” continues Plotnicki.
The OAD survey relies on tapping into the experience and opinions from diners who are passionate about where they eat. The methodology assigns a weight to each restaurant based on factors such as price point and the type of diners it attracts, and assigns a weight to reviewers based on the quantity and quality of restaurants a reviewer has visited.
Steve Plotnickiis the author of OAD blog and Opinionated About U.S. Restaurants 2011. He will be featured in the “Foodies” documentary, which focuses on the fine dining subculture of foodies, out later this year. He is working on producing a TV show that will showcase American ingredients and the chefs who prepare them.
Luis Trevino, managing director at Beamonte Investments. . Private Equity Veteran Luis Trevino will Run Mexican Businessmen Association (“AEM”) in Boston
The Asociacion de Empresarios Mexicanos (AEM) is pleased to announce that Luis Trevino has been appointed the new president of their Boston chapter. The non-profit organization, based in San Antonio, has been operating for 17 years. They expanded to include a Boston chapter in 2013.
The Asociacion de Empresarios Mexicanos is devoted to assisting Mexican investors and entrepreneurs to adapt to American business practices, along with helping them to understand American culture. They also assist Americans who wish to do business in Mexico. The organization holds a variety of workshops and conferences in order to achieve this goal. They also recognize members of the community who have helped to foster this understanding at an annual gala.
Trevino, managing director of Beamonte Investments, has had a long and productive career in his field. He is a pioneer in Private Equity, working with a team to open the first firm in Boston to invest in Mexico. Trevino is also head of the private equity division of Beamonte Capitol Partners, a program that focuses on Latin American business and investment opportunities. He also sits on the Board of Directors of CITEC, ING, a Mexico-based pharmaceutical company and is chairman of Kiwi Capital. Kiwi Capital is a lender who focuses on assisting medium-sized companies to create innovative credit products.
“I believe there is plenty of work to do regarding Massachusetts and Mexico relations. Many Mexican entrepreneurs come to school to Boston to setup operations in the city and we look serve Mexican entrepreneurs and business owners as they do business in the States,” said Trevino of his new position.
The Asociacion de Empresarios Mexicanos is a 21-chapter organization with more than 1,300 members. It operates in six states and two countries and looks to open additional chapters in the near future.
Photo: ESO. Man Group to Acquire Pine Grove AM to Strengthen its Fund of Hedge Funds Business
Man Group has agreed to acquire Pine Grove Asset Management LLC, a US-based fund of hedge fund manager specializing in the management of credit-focused hedge fund portfolios with approximately $1.0 billion of assets under management. The transaction is subject to customary closing requirements and is expected to close in the third quarter of 2014. Financial terms of the transaction were not disclosed.
Pine Grove is a credit-focused fund of hedge fund manager, founded in 1994, with offices in Summit, NJ and New York City. The firm is employee-owned, with senior investment professionals having on average 18 years of direct investment management experience. Since inception, the firm’s hedge fund selections and portfolio management have delivered attractive risk-adjusted returns across market cycles. Approximately two thirds of Pine Grove’s assets are from institutional investors, primarily US-based, with the remaining third from US high net worth individuals and family offices.
Pine Grove will enhance Man Group’s presence in the US and add to Man Group’s fund of hedge funds business, FRM. Pine Grove will also reinforce FRM’s efforts to offer clients a wide variety of investment opportunities including SEC-registered US 40 Act funds and complementary fund of hedge fund products.
After closing, Pine Grove’s investment philosophy, strategy and approach will remain unchanged, and the firm will benefit from Man Group’s robust institutional infrastructure. Matthew Stadtmauer, currently President of Pine Grove, will become President of FRM. Tom Williams, currently Pine Grove’s Chief Investment Officer will continue to be responsible for all investment decisions relating to Pine Grove’s portfolios and will join FRM’s Investment Executive committee.
Commenting on the transaction, Luke Ellis, President of Man Group, said, “FRM’s longstanding strategy has been to help investors use hedge funds to achieve their investment goals. Pine Grove has a long and accomplished track record of outperformance and is an excellent addition to the FRM business.” Michelle McCloskey, New York-based Senior Managing Director of FRM, said, “We look forward to working closely with our new colleagues with the aim to deliver positive risk-adjusted performance for our clients. The opportunity to expand FRM’s footprint in the US is extremely exciting.”
Matthew Stadtmauer, President of Pine Grove, stated, “Over the course of 20 years Pine Grove has built a well-received client-focused business model over multiple market cycles. We are now at the point in our evolution where the additional infrastructure, resources and support available at FRM will provide significant benefits to existing and future clients. We are delighted to be taking this highly progressive step for our business.”
Tom Williams, Pine Grove’s Chief Investment Officer, said “We are particularly excited about becoming part of FRM, which will provide us with world-class infrastructure, technology and resources, while allowing Pine Grove to maintain our entrepreneurial investment approach. This will enhance our business and add significant value for clients as we strive to create the optimal environment for our investment professionals to deliver performance.”
John Stopford, Co-Head of Multi-Asset at Investec Asset Management. How Will the Potential Move Away From Zero Interest Rates Influence Markets?
How will the potential move away from zero interest rates influence markets? John Stopford, Co-Head of Multi-Asset at Investec Asset Management, gives his view on the implications for high yield equities, income investors, emerging markets and more.
