Russian oligarchs, for example, have been known to use more high-brow, esoteric
avenues to launder their dirty money, according to congressional probes and the
FinCEN files. A case in point: Two powerful brothers with close ties to
Vladimir Putin have allegedly used the art market to reportedly launder millions
of dollars. 

“Art has long been a good way to launder money because of
the lack of transparency in the art trade and the secretiveness of many buyers
and sellers,” Louise Shelley, the George Mason professor, told me. “Two
Russian oligarchs, the brothers Arkady and Boris Rotenberg, close to Putin and
presently under sanctions, have been investigated by the U.S. Senate for
laundering over $18 million through American art markets.” 

Oligarchs seem to have made a sport of buying up U.S. real
estate at suspicious prices in recent years.

Anders Aslund, a Russia and Ukraine expert at the Atlantic Council, noted that
the FinCEN files showed that, although the U.S. had sanctioned the two brothers
in March 2014, they “continued to maintain bank accounts for their companies
and move millions of dollars through Barclays in the U.S. and U.K. until 2017.”
He added, “The U.S. Treasury labeled the Rotenbergs ‘members of the Russian
leadership’s inner circle,’ but they could continue to move millions of dollars
in the U.S. and probably still do so.”

The Rotenbergs have big competitors in the Russian money laundering game. “The
‘Russian Laundromat’ case, where more than $20 billion was laundered by
kleptocrats out of Russian banks to Western banks, is a good example of the
depth of the enforcement problem,” Pelletier told me. “The elaborate
scheme, initiated by Vladimir Putin’s cousin, relied on shell companies to
launder the corrupt funds into European Banks utilizing corrupt Moldovan
judges. Ninety-nine percent of the dirty money moved freely without detection
into reputable international financial institutions such as HSBC, Deutsche
Bank, Barclays, Standard Chartered, CitiBank, Bank of America, JP Morgan Chase,
and Wells Fargo. Something is obviously and terribly wrong.”

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Investcorp Holdings BSC is targeting larger private equity deals in North America as it seeks to boost assets under management to $50 billion.

A bird flies over a view of One World Trade Center along the waterfront in Jersey City, New Jersey,

The biggest private equity and alternative asset manager in the Middle East sees buyouts in that region representing one of its best avenues to growth, David Tayeh, head of North America Private Equity, said in an interview. The firm is also looking at more co-investments as a way of participating in bigger deals, he said.

“We want to grow our capacity to invest and broaden the top of the funnel of investments that we can look at from a size perspective,” said Tayeh. “At the moment there are deals that we really like that we don’t pursue because they’re outside our size range.”

Investcorp, which counts Abu Dhabi sovereign wealth fund Mubadala Development Co. as a major investor, outlined a plan to double its assets under management from about $25 billion in 2018 within seven years. It is targeting a combination of acquisitions and boosting its existing private equity, real estate and alternative investments units.

The firm now manages assets of $35.4 billion. Built on funneling money from rich Middle East families and sovereign funds into the U.S. and Europe, Investcorp is now expanding into Asia while looking to manage more cash for Western investors.

It raised about $1 billion for a new North American buyout fund to help book bigger deals, people familiar told Bloomberg in March. Tayeh declined to comment on the new fund.

Investcorp currently focuses on mid-market deals in the U.S. of companies with an enterprise value of up $750 million, he said. That number could gradually increase to up to $3 billion, he said without giving a time-frame.

Established in 1982, the asset manager is already the Gulf’s largest private investor in U.S. real estate. It partnered with Trilantic Capital Partners last month to acquire acquired RoadSafe Traffic Systems Inc. for about $500 million, people familiar said at the time. The firm spent $330 million buying apartment properties in U.S. suburbs in January.

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Lakehaven Apartments, located at 732 Bluff Street in Carol Stream, DuPage County, IL, was constructed in 1984 and is the newest apartment community in this mature suburban township. The property, while close to major employers and highways, also benefits from its pastoral setting surrounded by 100 acres of park land and lakes. The 492 apartment homes are spread across 41 buildings and feature a mix of 1-, 2-, and 3-bedroom layouts ranging in size from 700 to 1,100 square feet with an average unit size of 868 square feet. Amenities include a clubhouse, resort-style pool, fitness room and fenced dog park.

Leading the acquisition were Adam Short, Senior Vice President of Acquisitions; Ania Najder, Director of Acquisitions; and Kristin Nason, Regional Portfolio Manager, all from Golub & Company, and Chris Lord, Principal of Petiole Asset Management. The seller, Lakehaven Apartments LLC, was represented by JLL’s Marty O’Connell, Danny Kaufman, Wick Kirby and Kevin Girard.

“Lakehaven has recently undergone an in-unit and amenity repositioning program yet offers new ownership the ability to incrementally improve upon the previously completed program to offer top-quality amenities and unit finishes,” said Short. “From the perspective of the submarket there has been very limited new supply which we believe will bode well for occupancy over the long-term,” he added.

Founded in 1960, Golub & Company is a multi-generational developer, operator and investor of commercial, residential and mixed-use properties. Its current projects are located across core U.S. markets including Chicago, Minneapolis, Denver, and South Florida. Petiole Asset Management AG (formerly The Family Office) is a Zurich-based asset management firm with a track record of managing $2B in alternative investments.

“The value-add potential and strong market fundamentals make this an attractive acquisition opportunity,” said Michael Newman, President and CEO of Golub & Company. “After completing successful office acquisitions of 111 W. Washington Street in the Central Loop and International Tower in the O’Hare market, we are thrilled to partnering once again with Petiole Asset Management on this exciting project.”

About Golub & Company
Since its in 1960, with three generations of professionals working in the business, Golub & Company has built a strong reputation as a trusted co-investor and developer with its many institutional and private capital partners. It’s a reputation based on track record; Golub and its affiliates have owned, leased or managed more than 50 million square feet of commercial, mixed-use and multifamily real estate properties, including 45,000 residential units, valued in excess of $10 billion located across the United States and internationally. Access more information by visiting www.golubandcompany.com. 

About Petiole Asset Management
Petiole Asset Management, previously operating as The Family Office (TFO), is a boutique asset manager that provides investors diversified investment programs targeting direct and co-investment transactions with $2 billion in AUM. Our clients benefit from tailored alternative solutions, a rigorous investment process and a dedicated team specialized in private market investments. Petiole USA Limited, operating out of the New York office, targets value-add and core-plus real estate acquisition opportunities in addition to real estate debt and structure equity opportunities. The team has acquired 12,000 multifamily units and 4.4 million square feet of U.S. real estate in the past decade. Access more information by visiting www.petiole.com. 

MEDIA CONTACT
Aimee Val
Vice President, Marketing & Communications
Golub & Company
[email protected]

SOURCE Golub & Company

Related Links

https://golubandcompany.com

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TOKYO — Mitsubishi Estate aims to build seven U.S. data centers near Washington by around the end of the decade at an estimated cost of 200 billion yen ($1.83 billion).

The Japanese developer sees data centers as a prime growth business considering the increasing demand from tech giants like Google and Apple. Mitsubishi Estate will construct the first two centers by February 2024 in a joint investment with equipment leaser Tokyo Century.

Operation of the centers will be handled by the businesses that lease the sites. Mitsubishi Estate will become the first Japanese real estate company to invest in a U.S. data center business.

The seven data centers are planned for northern Virginia, among the first areas to benefit from a fiber-optic network developed by the U.S. government. Northern Virginia also experiences few earthquakes or other natural disasters, a factor contributing to the region becoming a global hub for data centers.

Mitsubishi Estate will create a real estate investment trust dedicated to data centers in about two or three years. The vehicle will draw capital worldwide to fund the construction of the remaining facilities, as well as other pursuits.

The American data center market has doubled during the past four years in terms of electricity consumption, U.S. real estate services firm CBRE says. The market is expected to climb by another 14% this year.

Data centers are projected to be the largest investment target in the next several years behind only fulfillment centers, which are expanding on e-commerce demand. Japan also offers strong opportunities for constructing data centers. Daiwa House Industry is developing a massive complex in Chiba Prefecture near Tokyo. Mitsubishi Estate is considering building data centers in Japan as well.

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NEW YORK, May 3, 2021 /PRNewswire/ —

Global Gate Capital acquired a light industrial portfolio located in Moorestown and Burlington Township, New Jersey, in a recapitalization with owner/operator Brennan Investment Group. The 1.1 million square foot portfolio consists of 22 buildings and is located 12 miles east of Philadelphia, predominately in the Moorestown West Corporate Center. Brennan will continue as operating partner and will be supported by The Flynn Company for property management and leasing. 

Rudy Sayegh, CEO of Global Gate Capital, said: “We are pleased to complete this investment which represents our 3rd US transaction in the industrial sector in the last 20 months. We are bullish on the sector and are excited to continue to grow our portfolio.”

Philip Tager, Head of US Real Estate at Global Gate Capital, said: “I have had a 25+ year business relationship with Michael Brennan and I am thrilled to be teaming up with Brennan Investment Group on this project, the first of what we hope will be many transactions pursued with Global Gate Capital.”

Michael Brennan, Chairman and Managing Principal of Brennan Investment Group, said: “Brennan Investment Group is looking forward to working alongside Global Gate Capital on this portfolio.  We are grateful for their trust in us as an operator.”

Chris Massey, Managing Principal of Brennan Investment Group, said: “We are very excited to be partnering with Global Gate Capital on this project at a time when the southern New Jersey industrial real estate market is increasingly desirable for institutional investors.  We are confident in our competitive advantages and intend to continue to provide excellent quality light industrial space to the marketplace.”

Global Gate Capital is an investment and wealth management firm that invests in multiple asset classes including real estate, private equity, credit, and listed securities. Global Gate has been investing in real estate since its inception and has deployed significant AUM in the asset class. With offices in Geneva, London, New York, Düsseldorf, and Dubai, Global Gate has grown its assets under management to over $4.5bn since its founding in 2013.

Brennan Investment Group, a Chicago-based private real estate investment firm, acquires, develops, and operates industrial properties in select major metropolitan markets throughout the United States. Since 2010, Brennan Investment Group has acquired over $4 billion in industrial real estate. The company’s current portfolio spans 29 states and encompasses 44 million square feet. Brennan Investment Group’s management team is among the most accomplished in its industry, having invested in over 4,000 properties covering more than 60 cities throughout the United States, Canada and Europe.

Contact: Ursula Walendzewicz, [email protected]

SOURCE Brennan Investment Group, LLC

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We believe investing is smart because history shows that stock markets go higher in the long term. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the Saul Centers, Inc. (NYSE:BFS) share price is up 27% in the last year, that falls short of the market return. In contrast, the longer term returns are negative, since the share price is 16% lower than it was three years ago.

View our latest analysis for Saul Centers

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year, Saul Centers actually saw its earnings per share drop 21%.

Given the share price gain, we doubt the market is measuring progress with EPS. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

We haven’t seen Saul Centers increase dividend payments yet, so the yield probably hasn’t helped drive the share higher. The slightly diminished revenue is not particularly impressive, at a glance, so that doesn’t explain the share price boost.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NYSE:BFS Earnings and Revenue Growth April 28th 2021

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Saul Centers, it has a TSR of 36% for the last year. That exceeds its share price return that we previously mentioned. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Saul Centers shareholders are up 36% for the year (even including dividends). But that return falls short of the market. On the bright side, that’s still a gain, and it is certainly better than the yearly loss of about 1.2% endured over half a decade. So this might be a sign the business has turned its fortunes around. It’s always interesting to track share price performance over the longer term. But to understand Saul Centers better, we need to consider many other factors. Even so, be aware that Saul Centers is showing 2 warning signs in our investment analysis , and 1 of those doesn’t sit too well with us…

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Development in Cypress, Texas. Image courtesy of Crown Holdings Group

Crown Holdings Group will be acquiring and building workforce housing in the Southeast and Texas with funds from a $250 million joint venture with Stern Resources Inc.

Crown Holdings Group, which has invested about $1 billion in the Southeast over the past 10 years, will be expanding its multifamily portfolio with the JV investment and also deploying additional capital into its subsidiaries and additional development projects.

“The primary focus of the JV will be new developments, though that may change if market conditions change,” Meir Matana, Crown Holdings Group principal, told Multi-Housing News.

About 30 percent of the JV funds will be spent in the Atlanta MSA, where the privately-owned firm plans to build additional workforce housing. Another area of focus will be Houston, where the JV has started to make its first acquisition, a 276-unit multifamily property.

“The first investments will be in workforce housing in the Houston MSA, in areas which have an insufficient supply of workforce housing,” Matana said. “We believe there are very strong merits to investments in the Houston area and are planning to focus resources in that area for the time being.”

Matana said other acquisitions are expected shortly in the Houston area as well as in Melbourne, Fla., and Bradenton, Fla. The joint venture is also planning to invest the funds in residential and resort developments in Florida.

Asked if that meant the JV would be looking at hospitality or condominium developments that could be used as vacation rentals, Matana said funds could potentially be targeted for both uses “depending entirely on specific locations in Florida and market conditions.”

Multifamily Investments

Noting that multifamily is among the most sought-after U.S. real estate investment opportunities, Crown Holdings Group said in a prepared statement the joint venture will represent a lower risk to investors. The firm stated multifamily as an asset class is in increasing demand by U.S. and international investors “who wish to preserve their wealth while making a safe return.”

Hartadinata Harianto, head of Stern Resources Private Capital Group, said in prepared remarks the joint venture with Crown Holdings Group “fits seamlessly with Stern Resources’ strategy of partnering with talented investment companies and management teams in assets that when developed, are stable, well positioned in attractive markets and poised for continued growth.”

Since its inception, Crown Holdings Group has acquired 37 multifamily projects totaling 11,800 units; eight mixed-use properties with 7.5 million buildable square feet; 2,000 residential lots and 20 retail shopping centers with more than 2.5 million square feet of leaseable area.

In November 2019, a Crown Holdings Group affiliate Marquis Investments received a $25.5 million Fannie Mae DUS loan to refinance Woodgate Apartments, a 257-unit community in the Atlanta suburb of Chamblee, Ga. Marquis Investments acquired the asset in 2017 for $20.7 million.

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SUNNYVALE — REI Co-op will open a new store in Sunnyvale on the site of a shuttered toy outlet through a lease that marks a relocation and expansion for the famed specialty outdoor retailer.

The new REI store in Sunnyvale will emerge at the site of a former Toys ‘R Us near the corner of East El Camino Real and Saratoga Sunnyvale Road, REI Co-op confirmed in response to a question from this news organization.

REI Co-op will exit its existing Mountain View store and relocate to the new Sunnyvale store, the retailer told this news organization.

“Our store team is incredibly excited about the relocation and eager to get more involved with the Sunnyvale community,” said Kirk Peterson, REI regional director for Northern California.

The new REI store in Sunnyvale is expected to open its doors this fall, the retailer said.

“The Sunnyvale location will provide more than 1.4 million lifetime REI members in Northern California with the gear and resources to enjoy the outdoors in the South Bay,” Peterson said.

REI has leased 37,000 square feet, the retailer said. That’s 7,000 square feet more than the space REI now occupies in Mountain View at a store on Charleston Road.

REI Co-op store in Mountain View on Charleston Road. // Google Maps

The larger space will enable REI to offer customers a wider choice of gear and expertise for the South Bay’s most popular outdoor activities.

REI Sunnyvale will also feature an expanded professional bike, ski, and snowboard shops, as well as a new community space, the retailer said.

Broker Ryan Warner of Meacham/Oppenheimer, a commercial real estate firm, helped to arrange the REI lease in Sunnyvale.

Future site of an REI Co-op store at 130 E. El Camino Real in Sunnyvale, a former Toys ‘R Us location. // George Avalos / Bay Area News Group

REI was founded in 1938 as a cooperative after Seattle-based outdoor enthusiasts Lloyd Anderson and Mary Anderson became dissatisfied with the prices and availability of an array of equipment. The Andersons believed they were paying too much at local retailers for items such as ice axes.

The concept spread and in 1938, 23 people formed a cooperative retailer that became the basis of the current organization that is now the nation’s largest consumer co-op. REI has more than 20 million members and operates 168 stores in 39 states.

“REI History: It started with an ice axe,” the company states on its website.

REI limited-edition ice ax is a reminder of the motivation of the founders of REI to launch the co-op in Seattle in 1938. // REI Co-op

REI’s other Northern California stores are in Berkeley, Concord, Corte Madera, Dublin, Folsom, Fremont, the Monterey County city of Marina, Roseville, Sacramento, San Carlos, San Francisco, San Jose, Santa Rosa, and Santa Cruz, which is slated to open in the fall of this year.

Wide-ranging construction work was underway this week inside the big Sunnyvale store.

“We are looking forward to welcoming the community into the new space and have the opportunity to connect, inspire, and enable a life outside for even more people,” Peterson said.

 

 

 

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The IRS proposed allowing foreign investors with gains from real estate and certain other business activities in the United States to avoid tax withholding when putting those profits into a tax-advantaged opportunity fund.

Foreign individuals are subject to withholding on gains “effectively connected” to a U.S. business and, under a 1980 law (Public Law 96-499), gains from U.S. real estate. But proposed rules (REG-121095-19) released Monday would allow foreign investors who want to put their gains into an opportunity fund to bypass normal withholding on profits from their sales of U.S. real estate or “effectively connected”…

Originally Appeared On: https://news.bloombergtax.com/daily-tax-report/irs-opens-doors-for-foreign-investors-in-opportunity-zones