12.08.22 | This week we recognized 4 capital-related transactions with a disclosed value of $29.5 Billion USD.
Additionally, we recognized 1 leadership change within the industry.
Summary of Transaction Headlines
CoStar | “Kroger, Albertsons to Merge in $24.6 Billion Deal”
The proposed $24.6 Billion acquisition-merger between supermarket giants Kroger and Albertsons could result in a national wave of store closures and selloffs as the grocers look to head off regulatory concerns about competitive balance. The shakeouts could be most pronounced in California, home to three brands in the deal with long histories and large footprints. CoStar and company data show Kroger and Albertsons combined operate more than 1,000 stores in California, including multiple brands among the 667 Albertsons-owned locations and 356 Kroger-owned stores.
Bisnow | “Kushner Lands Backing From Investment Giant For Attempted $4.3 Billion Veris Takeover”
A major investor has gotten behind an unsolicited bid by Kushner Cos. to take over apartment owner Veris Residential. Fortress Investment Group sent a letter to Veris last week expressing a willingness to finance the $4.3 Billion bid to take over the 7,700 units owned by Veris, the Wall Street Journal reported. The move values the primarily New Jersey-based Veris Residential at $16 per share and would grow Kushner’s portfolio by roughly a third. Veris rejected rival Kushner’s offer, arguing that the bid lacked debt and equity backing and “grossly” undervalued the firm, per the Journal. On Tuesday, Charles Kushner, chairman of the family firm, sent a note to Veris saying the real estate investment trust “no longer has the financing excuse,” the Journal reported.
The Guardian | “John Lewis Agrees £500 Million ($609 Million USD) Deal with Abrdn to Build 1,000 Rental Homes”
The John Lewis Partnership has struck a £500 Million ($609 Million USD) deal with the investment firm Abrdn to build 1,000 residential rental homes, redeveloping three sites already owned by its Waitrose and eponymous retail store chains. The group intends to redevelop Waitrose shops in Bromley and West Ealing, and a vacant John Lewis warehouse in Reading, as the first part of a plan to build a total of 10,000 new homes over the next decade.
Connect CRE | “SVN | SFR Capital Management and Marketplace Homes Forms JV to Acquire, Operate Single Family Rentals”
Build-for-rent commercial real estate investment firm SVN | SFR Capital Management, headquartered in New York City, has entered into a joint venture agreement to acquire, own and operate rental homes with Marketplace Homes, a national brokerage and property management company. The JV will operate under the Curbside Residential brand and integrate Detroit-based Marketplace Homes’ end-to-end property management, asset management, leasing, maintenance and resident service solutions with SVN | SFR’s national BFR acquisition and SFR/BFR operating platform, enhanced by new construction builders and SFR/BFR asset management support.
Commercial Observer | “JLL Appoints Kristy David as SVP to Clean Energy and Infrastructure Practice”
JLL has added Kristy David as a senior vice president with the firm’s Clean Energy and Infrastructure advisory team, based in Washington, D.C. “I found several aspects of this role compelling, including JLL’s commitment to sustainability and the resources it has to back that commitment, the breadth and depth of the CE&I team’s experience in advising clients to achieve their energy sustainability goals, and Josephine Tucker’s leadership of and vision for the practice,” David told Commercial Observer. “In addition, JLL’s dedication to corporate social responsibility, diversity and ethics also aligned with my values.”
