Newtown, Mass.-based Government Properties Income Trust (GOV), which specializes in leasing assets out to government tenants, will buy out First Potomac Realty Trust for $1.4B in cash and debt assumption. To finance the deal, GOV plans to sell some of its properties and issue both stock and additional debt. “The acquisition of FPO enables GOV to expand its business strategy to include the acquisition, ownership and operation of office properties leased to both government and private sector tenants in the metropolitan Washington, DC, market area,” GOV COO David Blackman said. First Potomac is headquartered in Bethesda, Maryland. (Via CoStar News)
The trend of commercial real estate investors entering secondary markets in search of yield took hold in 2016, and that strategy will continue in earnest this year, PGIM Real Estate says in June 2017 Global Outlook, its latest research report. “Investors will look to take on more location and sector risk in order to achieve higher returns,” notes PGIM Real Estate Global Head of Investment Research Peter Hayes. Although the outlook for the year remains positive, PGIM Real Estate says the cycle is setting into a period of lower returns. (Via Commercial Property Executive)
The real estate division of France’s largest bank, BNP Paribas, fell victim to the global cyberattack against businesses that reports say emanated from Ukraine on Tuesday. “The international cyber attack hit our non-bank subsidiary, Real Estate. The necessary measures have been taken to rapidly contain the attack,” the bank told Reuters. (Via Reuters)
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Amazon’s Attraction to Whole Foods’ Retail Footprint
New York REIT Continues $2.8B Liquidation, Will Sell Four Office Buildings