The rise in the prices of industrial products exceeds that of other sectors; Paramount rejects takeover offer

S&P Global Market Intelligence offers our top picks of real estate news released throughout the week.

Industrial asset prices rose 28.5% in February, the fastest of any major commercial real estate sector and the highest rate of increase since its record began, according to RCA CPPI data.

The U.S. National All Property Index climbed 19.4% year-on-year and 0.8% month-on-month, it said in its U.S. report.

Office prices have diverged by location. Assets in the central business district rose 4.7% year-on-year, after falling for much of 2021, the report said. Suburban office buildings fell 10.1% after a streak of growth in recent months.

Apartment asset prices rose 23.2%, the fastest annual price increase recorded in the sector, while the 21.1% increase in retail asset prices was the highest ever recorded by CPPI RCA for the sector.

Mergers & Acquisitions

* Paramount Group Inc. board of directors denied Monarch Alternative Capital LP’s application Tender offer of $12.00 per common share. The unsolicited, non-binding proposal undervalues ​​the office real estate investment trust and ignores the company’s potential for future value creation, the board said.

* Switch Inc. is considering its strategic options, including a sale, Bloomberg News reported, citing people familiar with the matter. The data center operator is working with advisers, according to the report.

Goods

*A subsidiary of the global credit arm of The Carlyle Group Inc. has completed the $3.07 billion acquisition of the portfolio of net rental assets owned and managed by iStar Inc. The portfolio spans 18, 3 million square feet and includes institutional-grade office, entertainment, and industrial space spread across the United States.

* CBRE Group Inc., The William Warren Group Inc. and StorQuest Self Storage purchased a 64-property self-storage portfolio from World Class Holdings for $588 million. Assets span over 4.1 million leasable square feet across Texas, Ohio, Illinois, Colorado, Missouri, Mississippi, Tennessee, Indiana, New York and Nevada.

Over 95% of US stock REITs are trading at a discount to price target estimates

59% of US REITs beat analysts’ FFO per share estimates in Q4 21

34 U.S. REITs Announce Dividend Increases in February 2022

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