Government Properties Income Trust is acquiring First Potomac Realty Trust in a $1.4 billion deal that includes Government Properties' assumption of First Potomac's debt. Government Properties is paying $11.15 per share in cash, which represents a 9.3% premium over First Potomac's 30-day average share price on April 24.
Market data indicate that investors began selling off government bonds and buying the euro after European Central Bank President Mario Draghi suggested that the bank might start winding down its bond-buying program. ECB Vice President Vitor Constancio hinted that investors might have overreacted, noting that there wasn't anything "different from, say, the previous two main [speeches] about monetary policy done by the president."
Brandywine Realty Trust has announced that it is putting an additional $5.6 million toward a mixed-use project in Philadelphia as part of its Neighborhood Engagement Initiative. The total value of the project, called Schuylkill Yards, is $3.5 billion.
The US retail vacancy rate increased to 10% in the second quarter from 9.9% in the previous quarter, research firm Reis reported. Net absorption, which gauges available retail space sold, fell to its lowest level since 2011.
The Mall at University Town Center in Sarasota, Fla., which opened three years ago, reportedly is the most recent major new shopping center in the US. The property, which is operated by Taubman Centers, is doing well, but limited demand for large, enclosed malls means that the property might not be emulated for some time, observers say.
Celebration at Six Forks, a 125,000-square-foot property on 11 acres in North Raleigh, N.C., has been sold for $19.1 million to FCA Partners. The 95%-leased property features a Dollar General, Fitness Connection and McDonald's.
Independence Center, a shopping center in Independence, Mo., that's more than 40 years old, is facing a default on its $200 million loan. Owner Simon Property Group hasn't commented, but residents worry about the future of the struggling property.
Retail inventory shrink hit $48.9 billion last year, up from $45.2 billion in 2015, and losses from theft and other forms of shrink grew to 1.44% of total sales, according to an annual report from NRF and the University of Florida. Retail spending on loss prevention was flat or down during the same period, the report revealed.
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