Fort Lauderdale-based Stiles and Prudential Real Estate Investors (PREI) announced the acquisition of 200 East Las Olas (also known as “New River Center”), a 20-story trophy Class A office tower located directly on Las Olas Boulevard in the heart of Fort Lauderdale’s bustling central business district. Developed by Stiles in 1990, this institutional quality asset is currently 86% leased and encompasses 281,713 rentable square feet of some of the most desirable office and ground-floor retail space in the vibrant South Florida region.
The Property was acquired from Invesco Ltd. for $108 million, or $383 per square foot, by a joint-venture between Stiles Property Fund (SPF) and PREI. SPF is a discretionary value-added real estate fund that invests in office and retail properties throughout Florida. PREI, among the world’s largest real estate investment management and advisory businesses, is a business of Prudential Financial, Inc. New River Center was marketed through commercial real estate and capital markets services firm HFF, L.P. Hermen Rodriguez, senior managing director at HFF L.P., led the sale effort along with Ike Ojala, Jorge Portela and Tracey Goo.
“We are proud to once again partner with Prudential Real Estate Investors, one of the nation’s top commercial and residential investment groups,” said president of Stiles Doug Eagon. “As its original developer, we have come full circle with New River Center. Given our deep knowledge of the asset, the property’s upside potential and the robust market outlook, this acquisition fit well with our investment strategy.”
New River Center is positioned on 1.4 acres and includes unparalleled views of the New River and downtown Fort Lauderdale. The property consists of a 12-story office tower above an eight-story parking garage with 675 spaces, as well as nearly 15,000 square feet of ground-floor retail. It is currently leased to “blue chip” tenants, including: Fifth Third Bank; Akamai; Yum! Brands; Brinkley Morgan; and Stearns Weaver.
Following the acquisition, Stiles plans to implement its asset management best practices to drive further upside and additional synergies at New River Center. Stiles Leasing and Management will be engaged exclusively to handle the asset.
“The opportunity for SPF to acquire prime office real estate on Las Olas Boulevard with upside potential made this investment very attractive,” said SPF Fund Manager Kyle Jones. “We are looking forward to executing our business plan and creating further value at the Property utilizing Stiles’ diverse range of services.”
While Stiles has a long history of real estate transactions, New River Center is the first office transaction the Company has made through SPF, which it launched in 2011. Previous SPF acquisitions have targeted retail shopping centers throughout Florida and have included: Ormond Beach Mall, a 102,170-square-foot Publix grocery-anchored center in Ormond Beach; Market at Southside, a 95,135-square-foot center in Orlando; the former PGA Design Center, a 145,500-square-foot mixed-use property in Palm Beach Gardens; and Galleria Plaza, a 29,443-square-foot center in one of the most visible and affluent retail corridors of Fort Lauderdale.
According to Eagon, Stiles remains very active in Broward and especially the central business district of Fort Lauderdale, which is characterized by an urban lifestyle that has helped to drive concentrated growth in the downtown area.
“The 24/7 environment in downtown Fort Lauderdale is contributing to a thriving market with strong employment growth and lower vacancy rates,” commented Eagon. “Most of the new jobs being created are in the downtown urban areas of South Florida, including Brickell Avenue and Coral Gables.”
Stiles track record on Las Olas goes back to 1951 when the company was first established. Stiles has since developed 43 million square feet of real estate throughout Florida and more than 3.5 million square feet of projects in downtown Fort Lauderdale with uses ranging from office and retail to residential and associated parking. Responding to market demand for urban living, Stiles is currently underway with an ultra-luxury 254-unit apartment high-rise one-block from Las Olas Boulevard.
Photo: Dennis Harvis. India’s Prospects Brighter as Modi Gets Serious about Reforms
The Dreyfus Corporation launched earlier this month the Dreyfus Emerging Markets Debt U.S. Dollar Fund, an actively managed mutual fund. The fund’s objective is to seek to maximize total return by investing in emerging market bonds and other debt instruments denominated in U.S. dollars including debt issued from government, government-related and corporate issuers.
«The expanding prominence of emerging economies caused by powerful demographic trends and fundamental improvements has attracted increasing global interest as investors seek enhanced income, growth and diversification opportunities,» said Kim Mustin, BNY Mellon Investment Management’s Head of North American Distribution. «Advancements in the asset class have created distinct investment opportunities for U.S. dollar and locally-denominated debt. We are pleased to add the new U.S. dollar-denominated fund to our existing emerging market debt products, such as the Emerging Market Local Currency Debt Fund and Opportunistic Emerging Markets Debt Fund.»
The Fund is sub-advised by Standish Mellon Asset Management Company LLC, and is managed by Alexander Kozhemiakin, head of the emerging market debt team and senior portfolio manager at Standish and Cathy Elmore, emerging market debt portfolio manager at Standish.
The Fund’s portfolio managers are supported by a dedicated team of traders and research analysts with an average of more than 14 years of industry experience and responsibility for managing approximately $12 billion in dedicated emerging markets assets. The Fund’s managers employ an active investment process that uses in-depth fundamental country and credit analysis. A «top down» analysis of macroeconomic, financial and political variables guides country allocation, while a «bottom-up» analysis of the fundamental measures of an issuer’s creditworthiness guides securities selection.
«We are encouraged by long-term growth prospects and moderate indebtedness of many emerging market countries as well as by business prospects of their companies,» said Kozhemiakin. «In general, we believe the asset class offers attractive risk/return opportunities. However, careful selection of sovereign and corporate opportunities is key, as different emerging market issuers have different credit trajectories.»
«We believe that the Fund will be attractive to investors who are looking for a diversified way to seek to take advantage of quality sovereign and corporate opportunities in emerging markets, without subjecting themselves to the heightened volatility generally associated with local-currency exposures,» Kozhemiakin concluded.
Santiago de Chile. Foto: Alobos Life, Flickr, Creative Commons. El regulador de Colombia aprueba la fusión Corpbanca-Itaú
Itaú Unibanco Holding ha anunciado esta mañana que la Superintendencia Financiera de Colombia ha aprobado la fusión de Itaú Chile y Corpbanca, decisión condicionada a la aprobación por parte de la Superintendencia de Bancos e Instituciones Financieras (SBIF) de Chile.
La decisión del regulador colombiano se suma a la aprobación concedida el 15 de octubre de 2014 por el Banco Central de Brasil.
En un comunicado, recogido por Diario Financiero, la entidad dijo que la conclusión de la fusión sigue estando sujeta al cumplimiento de la aprobación por parte de las juntas de accionistas de Banco Itaú Chile y de CorpBanca, así como las aprobaciones regulatorias en Chile por parte de SBIF, en Panamá por la Superintendencia de Bancos (SBP) y Superintendencia del Mercado de Valores (SMV) y, en Colombia, por la Bolsa de Valores de Colombia (BVC).
Con estos antecedentes, y sumado a la reciente decisión de IFC, miembro del Banco Mundial con foco en el sector privado, de apoyar la fusión entre Itaú Chile y Corpbanca, «la fusión avanza de acuerdo a lo planificado previendo su materialización durante el tercer trimestre de 2015», explican desde Itaú.
Wells Fargo has tapped longtime Florida banker Kelly Madden to lead Commercial Banking operations in Florida. A Jacksonville resident, she will continue to be based here.
Madden, who previously served as executive vice president for Wells Fargo Commercial Banking in North Florida, will succeed Howard Halle, the longtime Wells Fargo Florida leader who recently announced plans to retire at year-end. Under Madden’s leadership, the North Florida Commercial Banking team, covering 36 counties, grew by more than 50 percent since 2010.
In Florida, Wells Fargo Commercial Banking has grown to 10 offices and more than 140 team members throughout the state, most recently expanding to Gainesville.
“A well-respected part of our Wells Fargo team and the Florida business community, Kelly was the clear choice to succeed Howard,” said Paul Kalsbeek, head of the company’s Southern Division of Commercial Banking. “Her success in North Florida reflects Wells Fargo’s commitment to serving our middle-market customers at a local level where they live and work. Under Kelly’s leadership, we’re poised for continued growth throughout the state.”
Prior to joining Commercial Banking, Madden was the North Florida region president and Retail Bank director for Greater North Florida with Wells Fargo predecessor Wachovia Bank. She began her career at First Union National Bank in 1988, where her positions included commercial sales director, relationship manager, and credit risk review officer.
Madden serves as trustee and past chair of the Gator Bowl Association, member and past chair of the Jacksonville Regional Chamber of Commerce board, member of the Jacksonville Civic Council executive committee, and advisor for the Baptist Foundation board. She also serves member of and advisor for the Tom Coughlin Jay Fund and the Jacksonville University Public Policy Institute. Madden has been honored with the Women of Distinction award from the Jacksonville Business Journal, the Woman of Influence award from Girl Scouts of the U.S.A., Top Women in Leadership from United Way, and the MS Hope award from the National Multiple Sclerosis Society.
David Azcona, nuevo responsable de asset allocation y gestión de multiactivos de MoraBanc AM. David Azcona, nuevo responsable de asset allocation y gestión de multiactivos de MoraBanc AM
David Azcona se ha incorporado a MoraBanc Asset Management como nuevo responsable de asset allocation y gestión de multiactivos. Licenciado en Economía por la Universidad Pública de Navarra, máster en Banca y Finanzas y Chatered Financial Analyst, David Azcona llega de Caja España Fondos, donde llevaba cinco años en el cargo de director de Inversiones. Su carrera profesional destaca por su amplia experiencia en la gestión de fondos de todo tipo y sicavs.
Con la llegada de Azcona, el grupo refuerza su equipo de gestión de multiactivos, tanto en la gestión discrecional como la de fondos mixtos o perfilados; una gama de productos que MoraBanc Asset Management ampliará durante 2015, informa MoraBanc AM a través de un comunicado.
«David Azcona se suma a un equipo de profesionales especializados que ha ido creciendo en los últimos años y consolida la estrategia de MoraBanc Asset Management para ofrecer gestión de primer nivel a sus clientes», reza el texto de la firma.
Brazil’s Comissão de Valores Mobiliários (CVM) has published new regulations that will make international investing by local investors much more accessible to individual investors.
The two instructions – which broaden international investment limits by local funds, reset the criteria for qualified investors and also create the figure of the professional investor – are seen by the global asset management community as game-changers in their approach to Brazil, since important segment of the onshore market will become addressable – at least after July 1, 2015, when the rules take effect.
1. Via Instruction 539/13, the CVM now allows for natural and legal persons to be considered “professional investors” when they possess financial investments greater than BRL 10 million (USD 3.75 million), while “qualified investors” must possess financial investments in excess of BRL 1 million (USD 375,000). Importantly, the instruction also wipes out onerous rules requiring qualified investors to make a high minimum investment – for example BRL 1 million in a single fund – a non-starter for the wealthy in Brazil.
2. Via Instruction 555/14, which replaces Instruction 409/04 as the regulatory framework governing the creation, administration, operation and information-disclosure of mutual funds, the CVM has extended the limits for overseas investment:
– Equity and fixed-income funds for retail investors: the limit has doubled to 20%;
– Multimarket funds (hedge funds): the limit is kept the same at 20%;
– Funds exclusively designed for qualified investors: the upper limit is set at 40% but can reach 100% if certain rules are observed.
– Funds exclusively designed for professional investors: there is no limit.
The CVM said that investments made in funds under the previous framework need not be redeemed, but the sponsors of the funds observe the new framework when soliciting new investment.
Latin Asset Management anticipates that the rule changes will provoke many global fund managers to establish a local presence in Brazil, and encourage many others to establish distribution relationships with local players. The vehicle of choice appears to be funds of funds, so that it’s likely that many cross-border managers will launch proprietary products allocating to funds investing globally, while others will avoid setting up a local manager and simply seek allocations from onshore Brazilian fund firms.
Photo: Raysonho . Scotiabank Peru to Acquire Citibank's Retail and Commercial Banking Operations in Peru
Scotiabank, el tercer banco más grande de Canadá por activos, ha acordado la compra de las operaciones retail y comercial de Citigroup en Perú, una compra sujeta a aprobación regulatoria, tal y como confirmó en un comunicado el banco canadiense.
Citigroup cuenta con ocho sucursales y más de de 130.000 clientes en Perú, en donde mantendrá su negocio institucional y banca privada en Perú. El acuerdo contempla que los empleados de Citigroup sean transferidos a Scotiabank Perú. Citibank ha estado operando en Perú sin interrupción desde 1920 y lo seguirá haciendo con especial foco en banca corporativa e institucional, así como a través de sus servicios de banca privada internacional.
Scotiabank cuenta con operaciones comerciales y retail en más de 55 países en América Latina, el Caribe y Asia. En Latinoamérica está presente en 11 países, con especial atención a Perú, México, Colombia y Chile. Los resultados de la banca internacional de la entidad canadiense del cuarto trimestre cayeron un 31% respecto al mismo periodo del año anterior.
Scotiabank está presente en Perú desde 1997 y desde entonces sus activos han crecido hasta los 15.700 millones de dólares. La entidad da servicio a 1,3 millones de clientes retail, corporativos, comerciales e institucionales. Recordar también que a través de su compañía de gestión de fondos de pensiones, Profuturo AFP, Scotiabank sirve a más de 1,8 millones de clientes y tiene unos 10.000 millones de dólares en activos bajo gestión.
“Estamos muy contentos con esta compra porque nos permitirá profundizar en la relación con nuestros existentes clientes, servir a nuevos clientes e incrementar nuestra participación en el mercado de tarjetas de crédito y préstamos personales en Perú”, dijo en un comunicado Dieter Jentsch, jefe de la banca internacional de Scotiabank.
Foto cedida. Goldman Sachs completa la venta de Metro International Trade Services
El Grupo Goldman Sachs anunció este lunes que ha completado la venta de Metro International Trade Services a una filial de Reuben Brothers, una empresa suiza de capital riesgo, private equity, inversión y desarrollo de bienes raíces y recursos naturales. Los términos y las condiciones de la transacción no se dieron a conocer.
De esta forma, Goldman Sachs se deshace de su polémico negocio de almacenamiento de metales. Goldman compró Metro por unos 550 millones de dólares en 2010. Bajo una feroz presión política y regulatoria, la entidad fue instada a ceder la operación con sede en Detroit en medio de acusaciones de que había alentado el acaparamiento de suministro, inflando los precios de los metales, una versión que ha sido negada por Goldman, informa Reuters.
Entre las inversiones de Reuben Brothers figuran centros de data, compañías de pubs, aeródromos, tecnología y data. Actualmente cuentan con inversiones en energía, cargueros y una cartera de commodities en aumento. Asimismo, cuenta con una cartera de bienes raíces muy diversificada, en donde figuran oficinas, hoteles, inmuebles residenciales y propiedades de infraestructura en todo el mundo.
Goldman Sachs es una compañía líder en servicios de banca de inversión y gestión de títulos valores e inversiones, que brinda una amplia variedad de servicios financieros a una importante y diversa base de clientes que incluye corporaciones, instituciones financieras, gobiernos y particulares con alto patrimonio neto. Fundada en 1869, la firma tiene su sede central en Nueva York y sucursales en todos los centros financieros más importantes del mundo.
ETFGI has announced that Deborah Fuhr, Managing Partner & Co-founder of ETFGI, is the 2014 William F. Sharpe Indexing Lifetime Achievement Award winner. She was honored at IMN’s 19th Annual Global Indexing & ETFs conference at the JW Marriott Camelback Resort & Spa in Scottsdale, Arizona on December 8th. This distinguished award recognizes the most accomplished innovators and practitioners in the indexing industry, and was presented by The Journal of Index Investing.
Deborah is considered one of the leading global experts on ETFs with over 20 years industry experience in financial products, 15 of which have focused on exchanged traded funds and exposures. Currently she is the managing partner and co-founder of ETFGI, an independent research and consultancy firm established in early 2012 to provide analysis on the global ETF and ETP industry. The firm is focused on providing thought leadership, publishing independent research on industry trends, the eco-system, institutional users, products, applications, and competitors, and providing education and assistance to investors on product comparison, asset allocation implementation, as well as offering customised research and consulting.
Prior to ETFGI Deborah was the Global Head of ETF Research and Implementation Strategy at BlackRock/Barclays Global Investors from 2008 to 2011, and was a Managing Director and Head of the Investment Strategies Group at Morgan Stanley for 11 years prior to that.
Deborah commenced her career at Greenwich Associates and has lectured extensively on ETFs and other exchange traded exposures. She has served on several industry bodies and is a consultant to investors, promoters, distributors, stock exchanges, trading platforms and national- and supra-national regulatory bodies.
She was recently named as one of the Top 100 women in European Finance in 2014 by Financial News. She has an MBA from the JL Kellogg Graduate School of Management, Northwestern University, and Bachelor of Science from the University of Connecticut.
Previous William F. Sharpe Lifetime Award recipients include Harry Markowitz, William Brodsky, Joanne Hill, John C Bogle, and Robert Arnott, among others.
It can be refreshing to encounter optimism as an Emerging Markets economist, given its rarity in these straitened times. Certainly, there is plenty of it to be found in Turkey. Despite, or perhaps because of, the country’s status as one of the original “Fragile Five” and the continued focus on its macroeconomic fundamentals, officials and private sector economists remain defiantly bullish about prospects overall. To be diplomatic, we are slightly more cautious.
Central to investor concerns, and a driver of lira weakness, has been the country’s external balance sheet position. The country is a clear outlier in terms of its reliance on external financing flows, with very high levels of short term external debt (approximately 25% of GDP). Within Turkey, comfort is drawn from the fact that the bulk of this borrowing is conducted by banks, who deposit dollars at the central bank to obtain lira liquidity. In essence, the high external financing requirement is not seen as a problem.
It is true that Turkish banks have managed to rollover debt without problems since 2001, even during the global financial crisis. But the loan to deposit ratio now stands at 113% following years of 20-30% credit growth, so some domestic activity at least is dependent on foreign financing. Even if Fed rate hikes do not bring a sudden stop, or reversal, of capital flows, the cost of borrowing will increase and drag on growth. Particularly as the central bank is targeting, among other things, a flat yield curve; Fed rate hikes will push up yields at the long end of the curve and necessitate hikes by the Turkish central bank.
“Central bank independence” is a phrase met with a polite cough at best in Turkey. The common perception, borne out by recent actions, is that the central bank will cut whenever possible in support of growth, despite inflation far above the 5% target. Happily, a combination of base effects, cheaper oil (Turkish energy imports totalled $55 billion in 2013), and reduced exchange rate pass-through will see inflation fall back sharply next year. However, a rebound is likely as the effects fade and as further rate cuts feed through.
Domestically saving is regarded as Turkey’s real problem, being relatively low at 15% of GDP (and only 12% in the private sector). This is the result of demographics, a low central bank rate, and economic and political uncertainty. A low savings rate helps fuel demand for foreign capital and limits domestic investment, so recently announced plans to boost saving and create an institutional investor base are welcome. However, with a 5-10 year timeframe, clearly a rapid turnaround is not in the offing.
In addition to this drag on performance, the trade outlook is not especially positive. Turkish producers are still not competitive enough, particularly when compared to Asian counterparts. Turkey is still very dependent on Europe as a market at a time when the Eurozone seems to be slowing. Meanwhile, the government has said it will reduce import dependency it is not clear how it plans to do so. It is difficult to see the current account deficit falling below 5% next year.
Politically, Erodgan appears to remain firmly in control, and a victory for his ruling party in next year’s elections seems assured. It is less clear that Erdogan’s party would survive him, however, and this dependency on one man represents something of a risk. Meanwhile, although ISIS is all but knocking on Turkey’s door, for now the country seems secure and is demonstrating no desire to enter into a regional war. Public opinion is against intervention, the Kurdish minority notwithstanding, and none of the analysts we spoke to saw ISIS as the main concern. If the West wants Turkey involved, they will need to commit their own troops first.
Following a recent trip to Istanbul, Craig Botham, Emerging Markets Economist at Schroders, shares his views on the Turkish economy.
