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

Friday, 27 October 2017

Latest KBS REIT to be Listed on Singapore Stock Exchange

A venture of KBS Realty Advisors and Keppel Corp. of Singapore is launching an initial public offering of shares for Keppel-KBS US REIT. The REIT already has agreed to acquire a portfolio of 11 office properties with a combined 3.2 million square feet from KBS Strategic Opportunity REIT Inc., a non-traded REIT sponsored by KBS Realty.

Commercial Real Estate Direct Staff Report

A venture of KBS Realty Advisors and Keppel Corp. of Singapore is launching an initial public offering of shares for Keppel-KBS US REIT.

Shares of the new REIT will be listed on Singapore's stock exchange and are expected to start trading on Nov. 9. KBS Realty, a Newport Beach, Calif., investment manager, and Keppel formed the venture last month.

The REIT will invest directly or indirectly in stabilized, income-producing office properties in the United States. It is seeking properties that will provide large distributions to shareholders over time by increasing occupancy rates, renewing existing leases at higher rates and signing tenants to leases that have rental increases over time. It plans on holding assets on a long-term basis, but could sell them if the REIT believes the properties have limited growth potential.

KBS Strategic Opportunity REIT Inc., a non-traded REIT sponsored by KBS Realty, has agreed to sell a portfolio of 11 office properties with a combined 3.2 million square feet to the new REIT for $804 million. Properties in the portfolio generated $44.6 million in net operating income last year. They had a combined occupancy of 88.1 percent as of the end of June.

Keppel-KBS US REIT will use proceeds from the IPO to purchase the 11 properties. KBS Strategic, meanwhile, will use the money to invest in opportunistic investments, fund capital improvements to properties in its portfolio and...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

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CMBS 2.0 Spreads

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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

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    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
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