1. Dominican Republic: Developers Struggle To Meet Caribbean Luxury Resort Demand
Big hotel brands continue to expand their luxury property across the Caribbean and larger Latin American region to meet rising consumer demand, exploring higher-end, all-inclusive resorts and ultra-luxury hotels in addition to traditional luxury resorts with and without branded residences.
At a Caribbean hotel investment conference, company executives shared their plans for balancing demand for high-end resorts with the challenges of developing and staffing in the region. Bojan Kumer, vice president of Caribbean and Latin America development for Marriott International, said 40% of Marriott’s project signings in the region during the past five years were for luxury products, and of those, the vast majority came with luxury branded residences attached. Marriott has been increasing its presence in Caribbean regions including the Dominican Republic.
2. UK: BlackRock Raises Funds for Big European Investment
BlackRock has raised €774 million (US$844 million) in initial investor commitments for its BlackRock Europe Property Fund VI, as the global investment giant looks to capitalize on demographic and other “mega forces” it said will drive the European economy and future occupier demand.
New York-based BlackRock said capital was provided by a diverse set of global institutional investors as the company anticipates the best real estate buying opportunity to emerge in Europe since 2008, with target regions including the United Kingdom, France, Germany, Spain and Nordic countries. The company said European real estate markets have recently repriced more swiftly than other regions amid stabilizing interest rates and inflation, as its latest value-add fund seeks to take advantage of an “attractive entry point.”
3. France: More Property Sales Withdrawn Before Completion
The number of pending French property sale offerings withdrawn from the market has been rising since mid-2022, spurred by disagreements between sellers and prospective buyers.
Sources told Business Immo that these deals presented to the French market, then withdrawn because no takers were found, could amount to about €15 billion by the end of 2023. That includes at least €10 billion in offices, €2.5 billion in retail property and a similar level in logistics/light industrial real estate.
4. Germany: Investment Firm Signa Removes CEO
Struggling investment and development firm Signa removed chief executive officer Timo Herzberg after seven years leading company operations, citing alleged violation of his executive duties.
The decision was made during an extraordinary meeting of the company’s supervisory board, with chairman Alfred Gusenbauer describing the action in a statement as a “hard measure” and Herzberg not immediately commenting to media outlets. Signa officials said restructuring expert Erhard Grossnigg will take over leadership of divisions including Signa Prime Selection and Signa Development Selection, continuing a restructuring begun by Herzberg in a climate of high interest rates among other challenges.
5. Canada: Toy Retailer Mastermind Finds Buyer for Stores
Educational toy retailer Mastermind GP Inc. reached a deal to sell a majority of its 66 stores after being placed into receivership last month.
Toronto-based Mastermind Toys, Canada’s largest independent specialty toy and children’s book retailer, said it entered into an asset purchase agreement with Unity Acquisitions Inc., owned by Canadian retail pioneers Joe Mimran, Frank Rocchetti and David Lui, though no price was immediately disclosed. Mimran co-founded Club Monaco in 1985 and developed the popular private clothing label Joe Fresh, which is sold in Loblaw Companies Ltd. stores.
6. US: WeWork Keeps Major Manhattan Location While Rejecting Others
Flexible office space provider WeWork said it is rejecting about 70 leases since filing for bankruptcy protection last month, but it is hinting at the kind of locations it aims to keep, including a large space near New York City’s high-profile Times Square.
In the first lease assumption announcement since its Chapter 11 filing, New York-based WeWork said it is retaining its unexpired lease at 1440 Broadway near West 40th Street, after reaching a deal to shorten lease terms and reduce rent. The company said that space is among WeWork’s largest, spanning 300,000 square feet across 10 floors, and WeWork will be announcing more locations where it intends to continue operating post-bankruptcy.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.