Reading this on a mobile device? Try our optimized mobile version here: http://r.smartbrief.com/resp/kybQhMrCCpdfwFoZDn

May 1, 2008 Sign up Forward Archive Advertise The daily source on REITs and real estate investment   Top News  CalPERS may lose big on L.A. land investment The California Public Employees' Retirement System may take a bath on one of the biggest land deals to fall victim to the housing bubble. CalPERS is part of an investment entity that put $970 million into thousands of acres of undeveloped residential land north of downtown Los Angeles. The downward spiral of housing prices may force CalPERS to give up the well-located land to creditors and possibly lose much of its investment. The Wall Street Journal (tiered subscription model) (5/1)   Capital Markets  Fed signals pause after seventh rate cut in eight months The Federal Reserve cut interest rates for the seventh time in eight months Wednesday, lowering the rate for overnight loans from 2.25% to 2%. The central bank, however, signaled it may be ending one of its most aggressive rate-cutting campaigns in nearly a generation. "If they keep handing out more rate cuts they're likely to feed inflationary expectations," said Arun Raha, senior economist at Swiss Re. ClipSyndicate/Bloomberg (4/30), The Washington Post (5/1), The Wall Street Journal (tiered subscription model) (5/1) Maguire bid gets boost with Brookfield offer Brookfield Properties Corp. offered to purchase Maguire Properties Inc.'s Los Angeles properties for nearly $750 million. The offer helps efforts by Robert Maguire III to buy a sizable portion of the company he founded. An offer to buy 75% of the company had been rejected by a board committee. The Wall Street Journal (free content) (4/30) Banks' return to profitability delayed as crunch continues The credit crunch has further to run, as evidenced by recent capital raisings by large banks. On Wednesday, Citigroup Inc. sold $4.5 billion in stock. A report by Morgan Stanley analyst Betsy Graseck said any assumption of a return to normal profit levels is about three years too early. The Wall Street Journal (tiered subscription model) (5/1) Bank of England says worst of crisis over The Bank of England's twice-yearly Financial Stability Report says it believes the worst of the world economic crisis may have passed. The view reverses the bank's 2006 and 2007 warnings that risk was underpriced. It predicts that financial institutions will soon see that some assets now "look cheap." Financial Times (free content) (5/1), The Times (London) (subscription required) (5/1), BBC (5/1) Paulson says credit crisis closer to end than beginning Treasury Secretary Henry Paulson maintained his forecast for growth in the U.S. economy as he predicted that the credit crisis is more than half over. Paulson also reiterated his confidence in Hope Now's efforts to help the housing market and his support for a strong dollar. On the topic of recession, Paulson said he would prefer to not "enter into a technical debate" about the term. Bloomberg (5/1) Other News Brokerage plans to launch rate system to challenge Libor The Wall Street Journal (tiered subscription model) (5/1)   Investment News  Tight office vacancy rates boost Australian REITs The basic fundamentals of the domestic property market in Australia remain unchanged, according to a commentary by the Australian. Office vacancy rates in the country remain tight, helping to boost REITs that invest in the sector. "The implication for Australian REITs is likely to be a focus on protecting portfolios, maintaining investor confidence and securing debt funding, and of course conserving cash," the newspaper said. The Australian (4/30) After tough times in housing boom, AvalonBay rebounds AvalonBay Communities, which builds properties instead of buying them, is being aided by the housing bust after struggling through the boom. The collapse in home prices is pushing people toward apartments, which AvalonBay continues to build. At the same time, the number of people in the prime renting ages of 20 to 34 will rise from 61 million to 65 million in the next five years. Forbes (5/19)   Real Estate Marketplace  Melco plans five high-end ski resorts in China Melco China Resorts plans to develop world-class destination resorts at five locations in the northeastern provinces of Heilongiiang and Jilin. Sun Mountain Yabuli in Harbin tops the list of properties being targeted by the largest ski portfolio owner in China for its portfolio. "Our move into the burgeoning mountain resort business in China enables our expansion in the mainland and provides an exceptional range of new experiences to address the growing need for up-market recreational activities among the country's fast-growing middle and upper classes," said Lawrence Ho, Melco's chairman and CEO. GlobeSt.com (4/30) Walnut Street proposes 1,500-foot tower in Philadelphia Walnut Street Capital made an informational presentation to the Philadelphia City Planning Commission Tuesday for its proposed 1,500-foot, mixed-use American Commerce Center at 1800 Arch St. The tower would be one of the 10 tallest buildings in the world and dwarf the 975-foot Comcast Center at 1701 John F. Kennedy Blvd., which is currently Philadelphia's tallest building. GlobeSt.com (5/1)   NAREIT News  Track performance of U.S. and global real estate markets Updated daily, the FTSE NAREIT U.S. Real Estate Index Returns and the FTSE EPRA/NAREIT Global Real Estate Index Returns provide index performance data, industry segment returns and comparisons against other major market benchmarks. Learn more about NAREIT ->   Join NAREIT |  Policy & Politics |  NAREIT Events |  Publications   Policy Watch  Trade group denounces Cuomo appraisal business overhaul Plans by New York Attorney General Andrew Cuomo to reorganize the appraisal business were panned by the Mortgage Bankers Association. The trade group said the plan conflicts with federal regulatory guidance and should be scrapped or modified. "The overwhelming response to the agreement has been a positive one, with almost everyone agreeing that significant reform is needed," Cuomo said. The Wall Street Journal (tiered subscription model) (5/1)   SmartQuote  An eye for an eye will make the whole world blind." --Mahatma Gandhi, Indian political and spiritual leader     Subscriber Tools       Print friendly format | Web version | Search past news | Archive | Privacy policy Advertise Associate Publisher:  Susan W. Kim (202) 407-7877 Download Media Kit   Read more at SmartBrief.com A powerful website for SmartBrief readers including: Industry Home Readers' Choice Search Archive Get this RSS Feed Publish your Press Release       Recent Real Estate Investment SmartBrief Issues: Wednesday, April 30, 2008 Tuesday, April 29, 2008 Monday, April 28, 2008 Friday, April 25, 2008 Thursday, April 24, 2008     Lead Editor:  Sean McMahon Contributing Editor:  Dave Copeland | Devlyn Ray     Mailing Address: SmartBrief, Inc.®, 1100 H ST NW, Suite 1000, Washington, DC 20005     © 1999-2011 SmartBrief, Inc.® Legal Information