Real eState
Massive Montreal real estate deal would include several malls for $5.7 billion – CTV News Montreal
MONTREAL —
A major real estate company has made a deal to buy and privatize, for $5.7 billion, the major real estate fund Cominar, which holds some of Montreal’s biggest shopping malls, among other properties.
Cominar owns Place Alexis Nihon, Rockland Centre, Complexe de la Gare Centrale and several other malls in Laval, Longueuil and elsewhere in Quebec.
Overall, it owns 310 office, commercial and industrial buildings in Montreal, Quebec and Ottawa.
In a press release issued Sunday evening, Cominar announced it has entered into a purchase agreement with Iris Acquisition II LP, an entity created by a consortium led by Montreal-based Canderel Real Estate Property.
As part of the consortium arrangement, Groupe Mach Acquisition, based in Montreal, would acquire commercial and office buildings valued at approximately $1.5 billion.
Under the agreement, the buyer proposes to pay $11.75 per share, which is a premium of 16.3 per cent over Cominar’s volume-weighted average price per unit for the 20-day period that ended Friday.
It also represents a premium of 63.2 per cent over the closing price on September 15, 2020, the day before the announcement of a strategic review process by Cominar.
The transaction has the unanimous support of Cominar’s board of trustees and of the special committee of the board, which is made up of independent trustees, it said.
“We believe that this transaction provides significant value, certainty and liquidity to our shareholders, and we’re convinced that it is in the best interests of Cominar,” said René Tremblay, Chairman of Cominar’s Board of Trustees, in the press release.
Canderel CEO Brett Miller says the transaction would also benefit Cominar tenants as it would “leverage the resources of the Canderel platform and a group of investors led by Quebecers with the long-term view of opening up opportunities for growth and development in the communities where Cominar operates.”
Groupe Mach, for its part, sees an opportunity to increase its “leadership position in Quebec in all categories of real estate assets” by adding buildings from Cominar.
“The acquired properties will be incorporated into Groupe Mach’s integrated operations and management system with the goal of preserving the long-term interests of the various stakeholders,” says its president and founder, Vincent Chiara.
The parties say they believe the transaction could close in the first quarter of 2022.
This report by The Canadian Press was first published in French on Oct. 24, 2021. With files from CTV News.
Real eState
Celebrity real estate agent Mauricio Umansky explains when housing prices will come down – Fox Business
Real eState
Real Estate Stocks Fall As Mortgage Rates Rise To 4-Month Highs: 'Inflation Is Proving Tougher To Bring D – Benzinga
Real estate stocks slid at Wednesday’s market open, weighed down by the latest disappointing data on housing starts and a spike in mortgage rates, darkening the outlook for the sector.
By 9:00 a.m. EST, the Real Estate Select Sector SPDR Fund XLRE had dropped by 0.3%. This marked its fourth consecutive day of losses and set a course for its lowest close since the end of November 2023.
The fund has also slipped below its 200-day moving average, a critical long-term benchmark, signaling that investor sentiment has turned negative.
The average interest rate for 30-year fixed-rate mortgages with loan balances up to $766,550 climbed by 12 basis points to 7.13% for the week ending Apr. 12, 2024, according to the latest figures from the Mortgage Bankers Association. This rate is the highest recorded since early December.
On Wednesday, the yield on a 30-year Treasury bond, a key benchmark for long-term mortgage rates, traded at 4.75%, at the highest since mid-November 2023, as Fed Chair Powell admitted that there has been a lack of progress in the disinflation trend.
Chart: Real Estate Stocks Fall Below Key Long-Term Moving Average As Inflation Bites Again
Weaknesses In Multifamily Segment Continue
Joel Kan, MBA’s Vice President and Deputy Chief Economist, explained the rise in rates, stating, “Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down.”
Despite the uptick in mortgage rates, there was a 3.3% week-over-week increase in the Market Composite Index, which measures mortgage loan application volume.
Kan further noted, “Application activity picked up, possibly as some borrowers decided to act in case rates continue to rise. Purchase applications were the primary driver of this increase, although they are still about 10% lower than last year’s levels. There was a slight uptick in refinance applications, mainly due to a 3% rise in conventional applications.”
Chart: US 30-Year Mortgage Rates Rose To The Highest Level Since Late November
The real estate market’s challenges are linked to affordability and a shrinking availability as the supply of new homes falls.
Andrew Foran, an economist at Toronto Dominion Securities, commented on the trend in home building, “Homebuilding activity moderated in March as weakness in the multifamily segment persisted and the single-family segment gave back most of its considerable gain from the prior month.”
Data revealed a 14.7% month-over-month decline in housing starts in March, with the figures dropping to 1.32 million annualized units, significantly below the anticipated 1.49 million.
Both the single-family and multifamily sectors experienced declines, with single-family starts down by 12.4% (or 145,000 units) and multifamily starts plummeting by 21.7% (or 83,000 units). This retreat in multifamily starts marked the lowest level since April 2020.
Additionally, residential permits decreased more than expected in March, falling by 4.3% month-over-month to 1.46 million annualized units. This included a 5.7% drop in single-family permits—the first decline in fifteen months—and a 1.2% reduction in multifamily permits.
Rising & Falling
The weakest performers among real estate stocks with a market cap of at least $1 billion on Wednesday were:
Name | 1-day %chg |
---|---|
Prologis, Inc. PLD | -6.55% |
First Industrial Realty Trust, Inc. FR | -3.33% |
STAG Industrial, Inc. STAG | -2.89% |
EastGroup Properties, Inc. EGP | -2.89% |
Rexford Industrial Realty, Inc. REXR | -2.35% |
Those showing the highest gains were:
Name | 1-day %chg |
---|---|
SL Green Realty Corp. SLG | 3.18% |
Opendoor Technologies Inc. OPEN | 2.55% |
Medical Properties Trust, Inc. MPW | 2.49% |
eXp World Holdings, Inc. EXPI | 2.32% |
Vornado Realty Trust VNO | 2.25% |
Now Read: Best REITs to Buy in April
Image: Midjourney
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Real eState
Toronto real estate agent puts comical spin on promoting burnt-down house – NOW Toronto
A Toronto real estate agent posted a picture of a $799,000 house that appears to be burnt down on TikTok saying it’s perfect for first-time homebuyers on a budget.
The agent, Ruthie Miller, was half joking.
Miller’s real estate career has run parallel to being a stand-up comedian. She found the run-down house as she was trying to look for a place to invest in herself.
Though she wasn’t the seller of the house, she thought posting the entertaining video on TikTok would attract more buyers to it.
The Yorkdale-Glen neighbourhood home is placed on a 25 x 130 ft. lot and the listing includes pictures of burnt down areas in the home.
Miller posted the video a week ago, but now the price is currently over $1 million on Realtor.ca.
“This house did have a fire and probably needs a lot of work. If you’re anything like me and you think to yourself, ‘Oh, I can fix him. All he needs is a little bit of TLC. He’s just had some bad relationships in the past,’ then you might be into this one,” Miller said in the video.
Some viewers were confused and wondered if the video was a parody.
“LOL genuinely can’t tell if this is a joke or not … a budget? Your gonna need another 200k to fix it it’s not even livable,” one person commented.
When asked if she thought her comedic approach to real estate could mislead people, Miller said, “I don’t know.”
Miller told Now Toronto that she was joking about some parts, especially about the house being suitable for a first-time homebuyer because of the structural issues.
Miller believes she’s bringing attention to real estate regardless of the method and people are going to look at the listing and request more information if they want to.
“I’m a comedian also, so why not mesh the two? It’s a clever way of doing it,” Miller challenged.
Miller believes Toronto’s real estate market always has room for humour.
“I personally like it. I hope I’m not breaking any rules with my professionalism. I like blending comedy with real estate. It’s easy to make fun of realtors because they’re usually advertising multi-million dollar properties when most of the city can’t afford rent.”
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