CommonWealth REIT, the property owner criticized by its largest shareholders for its corporate governance, will use proceeds from the sale of its Government Properties Income Trust stake to pay debt, a spokesman said.
CommonWealth REIT’s clash with shareholders over a stock sale is putting a spotlight on the company that manages it and four other real estate investment trusts after investors complained the structure erodes value.
Sales of single-tenant retail properties -- buildings leased to fast-food joints, pharmacies and other store operators -- have soared to a six-year high as investors seek real estate that performs better than bonds.
Mall owners including Simon Property Group Inc. and General Growth Properties Inc., the biggest in the U.S., are signaling they’re moving on from struggling retail centers as the economic rebound drives them to focus on the best-performing markets.
A Cerberus Capital Management LP-led investor group agreed to acquire Supervalu Inc.’s Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market grocery stores in a transaction valued at about $3.3 billion.
Brookfield Asset Management Inc. is keeping a tight grip on its stake in General Growth Properties Inc. in a bet the second-largest U.S. mall owner is better off as an independent company that will jump in value.
U.S. real estate investment trusts are trading at the biggest discount to the underlying value of their properties in more than two years, signaling it may be a good time for investors to buy shares in the companies.