SoftBank looks to take over WeWork, NYC investigates WeLive: Daily digest

first_imgEvery day The Real Deal rounds up New York’s biggest real estate happenings, from breaking news and scoops to announcements and deals. We update this page throughout the day, starting at 9 a.m. Please send any tips or deals to [email protected] page was last updated at 6:25 p.m. Adobe is expanding to 109,000 square feet at 1540 Broadway. The software company renewed its 27,323-square-foot lease on the 17th floor of the building and added 81,972 square feet on the 18th, 19th and 20th floors, according to Real Estate Weekly. Colliers represented Adobe in the deal, and CBRE represented the owner EDGE Fund Advisors on the new 10-year lease. [REW] An effort to turn a former women’s prison into a community hub is dead. The NoVo Foundation, co-founded by Warren Buffett’s son, abruptly announced on Friday that it would no longer work to develop the project, known as the Women’s Building, at 550 West 20th Street. The organization said it made the decision after deciding that it would be better to spend the hundreds of millions of dollars it would take to repurpose the building on supporting groups that could help marginalized communities faster and more directly. The building is under state control, and its future is now unclear. [The City] Saks has teamed up with Authentic Brands to bid roughly $270 million for Barneys. Saks, which Hudson’s Bay Company owns, would launch Barneys departments in 41 of its stores, take over the website of the bankrupt retailer and possibly take over some Barneys locations. Barneys had filed for bankruptcy over the summer, and at a court hearing on Friday, a lawyer for the high-end fashion retailer said the company needed more time to solidify a possible deal that would keep it alive. [WSJ] An early Facebook employee and venture capitalist wants to sell his Manhattan penthouse for $29.5 million. Matt Cohler has listed his Nolita penthouse, as he wants to move to the Upper East Side to be closer to his family. His firm Benchmark has made lucrative investments in companies including Instagram and Dropbox, but he doesn’t expect to make a big profit on his penthouse, which he bought about a year ago for $29.95 million. [WSJ] Masayoshi Son (Credit: Getty Images)SoftBank might take full control of WeWork. The co-working giant is trying to figure out how to improve its finances after pulling its plans for an initial public offering, and the deal from SoftBank represents one possible solution. SoftBank — which already owns a third of WeWork — would invest several billion dollars worth of equity and debt into the company and assume Neumann’s voting power, giving it a bigger role in turning around the company. [WSJ] The city is investigating WeLive’s Financial District location. Officials are looking into whether units that were supposed to be long-term apartments are instead being advertised as hotel rooms. It’s the latest piece of bad news for WeWork’s co-living division, which hasn’t expanded beyond its initial two locations and failed to grow into India and Israel. [NYT] Ken Griffin bought two more units in 220 Central Park South. The billionaire set a record with his $238 million condo purchase in the building and has now purchased a pair of adjacent apartments on the 20th floor for $1.89 million and $2.06 million as well. The units seem to be either for guests or staff and bring the total value of Griffin’s purchases in the building to about $244 million. [NYP] There were 11 luxury contracts signed for about $77.5 million in Manhattan last week. This was a decrease in sales and dollar volume from the week before, when 14 contracts were signed for about $118 million. The properties spent an average of 411 days on the market and had an average discount of 6 percent from the original asking price. The deals included six co-ops and five condos, marking the first week since June 17 to 23, 2013 when co-ops outsold condos. [Olshan] Brooklyn’s luxury market saw 19 contracts signed last week for a total of roughly $55.3 million. Both figures were up from the previous week’s 16 contracts signed for about $44.7 million. The average contract went for about $2.9 million, and the properties spent an average of 169 days on the market. [Compass] Joel Schreiber (Credit: Shir Stein and Wikipedia)WeWork’s first investor is getting sued by his lenders. A pair of lawsuits allege that Joel Schreiber has defaulted on almost $3.3 million, according to The Real Deal. A lawsuit from plaintiffs Vikram Kuriyan accuses Schreiber of using his stake in WeWork to back loans that he later defaulted on. The suit comes at a time when the value of Schreiber’s stock in WeWork has plummeted. [TRD] Another 100 Sears stores are going to close soon. The closures amount to roughly a quarter of the 425 stores that financier Edward Lampert bought out of bankruptcy. The company filed for bankruptcy a year ago, but it has continued to struggle since then with declining sales and losses as online shopping became more and more popular. [WSJ] A Bronx property is seeing a boost in interest thanks to the Opportunity Zone program. The Benedetto family, which owns the building at 40 Bruckner Boulevard in the South Bronx, is taking bids on a 99-year lease for the property and will announce the winner at the end of the month. [The City] Nicolai Ouroussoff and Cecily Brown with 125 East 10th Street (Credit: Columbia GSAPP via Flickr, Wikipedia, and StreetEasy)Architecture critic Nicolai Ouroussoff bought an East Village townhouse for $7.75 million. Ouroussoff bought the house with his wife Cecily Brown, and it is located near the intersection of Stuyvesant and East 10th Streets. It was designed in the 1850s by James Renwick and hit the market in February with an $8.3 million asking price. [TRD] This content is for subscribers only.Subscribe Nowlast_img read more

Shenzhen signs Line 4 deal

first_imgHONG KONG metro operator MTR Corp signed a 30-year agreement in principle on January 15 to extend and operate Line 4 of the metro network in neighbouring Shenzhen. The BOT deal was signed by MTR Chief Executive Chow Chung-Kong and Liu Jiasheng of the Shenzhen Municipal Development Planning Bureau.Under the corporation’s first investment project outside the Hong Kong region, an MTR subsidiary company will build the second phase of Line 4 and operate the entire route after this is completed at the end of 2008. Ownership of the line will pass to the city government at the end of the concession period.The 4·5 km first phase is expected to open later this year, and will initially be run by Shenzhen Metro Corp. It runs south from Shaoniangong to the Hong Kong border crossing at Huanggang, where it will provide interchange to KCR’s Lok Ma Chau spur. The 16·5 km second phase will run north from Shaoniangong through the Shenzhen Special Economic Zone to Longhua New Town, bringing the total number of stations to 14. The 6bn yuan extension will be funded by the project company, whose equity of 2·4bn yuan will be provided by MTR. Other strategic investors may be sought, although MTR would retain a controlling stake. Up to 60% of the funding will come from ‘other sources’. The project company has been allocated land along the route for development, and plans to build up to 26000 apartments with a total floor area of 269400m2.last_img read more

Baylin to Acquire Alga Microwave for $27 Million

first_img Strategic acquisition expected to generate revenue and cost synergies Enhances one of Baylin’s faster growing segments, Satellite Connectivity Products: the Kirkland acquisition represents a unique and strategic opportunity to expand its radio frequency and microwave components business, which the Company entered into with its acquisition of assets from Advantech Wireless Inc in January 2018 Expected to be accretive to 2018 earnings per share Immediate cost savings identified Baylin Technologies will be acquiring all of the issued and outstanding shares of Alga Microwave for total consideration of $27 million. Alga Microwave designs and develops RF and microwave components, and is a leading supplier of radio frequency and microwave solid state power amplifiers, pulsed amplifiers for radar applications, transmitter and transceiver products as well as radio frequency passive components and systems. The company has a fast development cycle for its products, which has been a key success factor. Alga’s product offering covers all major frequency standards.Expected benefits of the acquisition for Baylin include: Michael Perelshtein, President and CEO of Alga to take on role of Chief Operating Officer of Alga, with oversight of both Advantech and Alga operations. He spent the majority of his career at Alga, and has previous work experience at Wavesat Telecom and C-Mac / Selectron. He holds countless relationships with OEMs and has significant business development experience. Frank Panarello, COO of Alga to take on role of Vice President Operations of Alga, with oversight of both Advantech and Alga operations. Frank is an experienced operations and finance professional who has a decade of experience at Alga and previously worked at Nortel Networks. The acquisition will also include Alga’s principals to take on executive positions at Baylin, adding further depth and experience: The closing of the acquisition is subject to a number of closing conditions including the approval of the Toronto Stock Exchange and is expected to close on or about July 16, 2018.The total amount consists of of up-front cash consideration of $21 million, $4 million in Baylin shares and $2 million in deferred consideration, as well as a related agreement to purchase Alga’s operational facilities in Kirkland, Quebec for $6.2 million.In connection with the acquisition of the Kirkland facility, Baylin has entered into an agreement on a bought-deal basis with a syndicate of underwriters led by Raymond James Ltd. for an offering of 6,451,613 subscription receipts of the company at a price of $3.10 per Subscription Receipt (Subscription Receipt Price) for gross proceeds of $20 million and $15 million principal amount of 6.5% extendible convertible unsecured debentures of the Company at a price of $1,000 per Debenture for aggregate gross proceeds of $35.0 million.Baylin is to purchase all of the outstanding shares of Alga, through a newly incorporated subsidiary, for up-front consideration of $25.0 million (Share Purchase Price), subject to customary adjustments. The Share Purchase Price will be satisfied by the payment of $21.0 million in cash and $4.0 million in common shares in the capital of the company (Common Shares) at a price of $3.40 per share. The vendors may also receive up to an additional $2.0 million in earn-out payments if certain criteria are met over the two year period post-closing of the acquisition.last_img read more