Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Sunday, 12 August 2007

Mission West Deal Victim of Capital Market Turmoil

Written by 
Rate this item
(0 votes)

Mission West Properties Inc., which in July announced that it was in talks to be acquired by a private equity fund in a deal valued at $1.8 billion, said it was "unlikely" to close a deal with that prospective buyer because of the "withdrawal of their primary and secondary lenders from the market."

The Cupertino, Calif., REIT said it has since notified three other potential investors who wouldn't be subject to external financing conditions. It is in talks with those investors, who are now conducting due diligence on the company, to see if they can meet Mission West's hoped-for price.

Although the company had never disclosed the prospective buyer's identity, it has been widely believed to be Starwood Capital Group.

In an announcement early this morning, Mission West said the prospective buyer had completed due diligence and agreed to terms of an agreement, but its lender, which it described as "one of the top five U.S. banks," decided to back away from a previously agreed-upon financing package. Mission West said, "The buyer has acted in good faith and made every effort to find alternative solutions, but, in this very difficult debt market, has been unable to do so."

Mission West said that in the meantime, it was continuing to run its business in a normal manner and said it expected profits and revenue to climb for the remainder of this year and next year as new leases with higher rents are signed.

The company manages 110 research and development properties in the Silicon Valley region with 7.8 million square feet.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mergers & Acquisitions (M&A)
  • Company: Monmouth Real Estate Investment Corp.
  • Valuation: More than $150 million
Read 412 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage