1. Colombia: Sonesta Doubles Down on Latin America Hotel Expansion
Rising global tourism is spurring Sonesta International Hotels and its development partners to further expand Sonesta’s growing portfolio of Latin America properties, which already include seven in Colombia and five in Peru.
Sonesta Chief Development Officer Brian Quinn said the strategy is being implemented through moves including renewal of an ongoing franchise relationship with Bogota, Colombia-based GHL Hoteles, and the hiring of three lodging development leaders with experience in Latin America. “This really set us up for an Americas strategy,” Quinn said, noting the company is also positioning itself for growth in regions including Canada, Mexico and the Caribbean.
2. UK: Tram Extension Could Boost Edinburgh Development
Government and business leaders said a recently completed £207 million tram extension in Edinburgh, Scotland, could encourage commercial development and help breathe new life into the region’s economy.
Completion of the 2.9-mile, eight-stop route took more than three years and was delayed by challenges including a 13-week pause due to strict COVID-19 protections. Steve Jackson of project management firm Turner & Townsend said the tram’s benefits are expected to include increasing Edinburgh’s transport capacity and getting the city’s half-million people to use a greener mode of transport.
3. France: Office Properties Face Devaluation
High inflation and interest rates among other factors are expected to bring significant devaluation for office properties in France in coming months, according to analysts.
“As you have seen recently, all the indicators are in the red, although the nuances depend on the type of asset,” said Philippe Guillerm, chairman of the Institut français de l'expertise immobilière, during a recent investment conference. He and others cited factors including the explosion in construction costs, rising interest rates and new ways of working as disruptive factors for those involved in office property valuation.
4. Germany: Police Raid Investment Firm’s Offices
Police conducted a large-scale raid of German offices operated by development and investment firm Adler Group amid a probe of alleged accounting fraud, market manipulation and embezzlement.
The public prosecutor’s office in Frankfurt and the German Federal Criminal Police Office said they searched 21 properties in three cities on June 28, including offices, apartments and a law firm. Authorities said Adler Group, which denies the allegations, is charged in connection with alleged inflation of property values, stemming from incidents that took place at a real estate subsidiary between 2019 and 2020.
5. Canada: Ikea Plans $400 Million in Distribution Center Upgrades
Global home furnishings retailer Ikea is spending $400 million on projects aimed at expanding its fulfillment capabilities in Canada, including a planned new distribution center in the Toronto suburb of Hamilton, Ontario.
The Swedish retailer, with 389 stores in 32 countries including 14 in Canada, also plans to upgrade its distribution operations in the Vancouver area as it looks to minimize delivery times nationwide for in-demand products. Work is set to begin in 2025 on a new distribution center in Hamilton to support Ikea’s planned expansion throughout southwestern Ontario, with upgrades to existing facilities planned in Etobicoke and Vaughan in the Toronto region.
6. US: Florida Law Bans Property Ownership for Some Foreign Nationals
Some immigrants from seven countries will no longer be allowed to buy real estate, including houses and condominiums in certain cases, in Florida under a new law set to take effect July 1.
The law prohibits foreign nationals from China, Cuba, Iran, North Korea, Russia, Syria and Venezuela from owning agricultural land or any real estate in Florida near a military installation or critical infrastructure, such as airports, refineries, power plants and chemical manufacturing facilities. Republican Gov. Ron DeSantis signed the bill into law on May 8, making Florida the first state to enact such measures as other states consider similar moves. The legislation was deemed discriminatory by opponents including some Chinese citizens, civil rights groups and real estate brokers.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.