Tag Archives: investments

Immofinanz issuing €550m in convertible bonds

Immofinanz will be selling €550m in convertible bonds to help finance its bonds that come due between 2014 and 2107. If you own shares in the company, you’ll get first crack at the new issuance, whose conversion price could be 30-40 percent above the current share price, and whose coupon could be over 3%. This would allegedly complete the financial restructuring following the company’s descent into distress in 2009. Immofinanz was merged with Immoeast, reams of assets were sold and a totally reshaped management structure was installed. Proof of this could come at the end of 2011, as dividend payments to shareholders are now being hinted at.

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JLL stocks rise on earning report

Jones Lang LaSalle had a good day at the exchanges after it reported far better figures than expected. Fourth quarter revenues for Europe rose 11% compared to 2009 to a total of $237m. The company expects real estate investments to rise up to 25% in 2011 to $380bn.

Cannes conversations

Was talking to an agent of long experience in the market. As in, quite senior. He said his company’s job back in 2006 and 2007 was to help clients buy buildings, so the role of agents was simply to make that happen. To help find the price that would unlock that property. When asked if those prices were reasonable, sensible or advisable, he said “that’s a different question. That’s not the question they were asking.” Thinks a bit. “Remember, acquisition guys were getting a commission on how much they spent…” Was that generally true, we wonder? Comments welcome.
With that in mind, now that prime seems set on dipping below 7 in CE and below 5 in the UK, what would be useful and interesting to know is exactly what kind of questions are being asked.
Also, just for the sake of argument, when interest rates go up (don’t forget, interests not only do sometimes go up, but they will go up) what will happen to yields? Anybody thinking about that?
If you just want to see more pictures, click here.