Term Sheet: Steady base rates shifts focus to 10-year Treasuries; CDPQ outlines Otera and Ivanhoé Cambridge integration; REC USA’s latest issue...
PERE Credit
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Unchanged rates shifts focus to 10-year Treasuries, REC USA hears; Caisse de dép?t et placement du Québec (CDPQ) strategy shift includes the internalization of lender Otera Capital as well as property company Ivanhoé Cambridge ; February-March edition of Real Estate Capital USA magazine debuts with central focus on all-weather managers; and more in this week's Term Sheet.
They said it
“There are assets that have declined in value and you’re in a world where there is limited, if any, financing available”?
David Roth, co-head of New York-based private equity firm Ares US Real Estate, speaking to Real Estate Capital USA about the office sector’s continued struggles and need for gap capital, especially for Class A- and B+ properties.
What’s new
Holding course
The Federal Reserve this week opted to keep interest rates unchanged at its January 31 meeting, a move that surprised only the most optimistic lenders in the commercial real estate market. “We are not declaring victory at all at this point. We think we have a ways to go,” said chair Jerome Powell during the January 31 press conference. The central bank intends to maintain interest rates between 5.25 and 5.5 percent until the US economy is sustainably moving toward the Fed’s 2 percent inflation target, he added.
Canadian combination
The Caisse de dép?t et placement du Québec has become the latest Canadian state pension provider to determine it is better to run a real estate business internally than be the parent of an externally managed organization. Read more...