Gross Lease – BCN Stay http://bcn-stay.com/ Mon, 21 Nov 2022 06:13:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bcn-stay.com/wp-content/uploads/2021/06/icon-2-150x150.png Gross Lease – BCN Stay http://bcn-stay.com/ 32 32 Macy’s debt upgrade on performance boost https://bcn-stay.com/macys-debt-upgrade-on-performance-boost/ Mon, 21 Nov 2022 04:26:05 +0000 https://bcn-stay.com/macys-debt-upgrade-on-performance-boost/ S&P Global Ratings has upgraded the issuer credit rating of Macy’s Inc. as the department store chain reported strong operating results and deleveraging despite a challenging U.S. retail environment. Macy’s raised its issue-level rating on Macy’s Retail Holdings LLC senior unsecured notes to “BB+” from “BB”. The Company’s commercial paper rating remains “B”. The stable […]]]>

S&P Global Ratings has upgraded the issuer credit rating of Macy’s Inc. as the department store chain reported strong operating results and deleveraging despite a challenging U.S. retail environment.

Macy’s raised its issue-level rating on Macy’s Retail Holdings LLC senior unsecured notes to “BB+” from “BB”. The Company’s commercial paper rating remains “B”.

The stable outlook reflects faster-than-expected debt reduction, along with good inventory management through fiscal 2022 and prudent capital allocation priorities.

S&P said in its analysis, “Macy’s has made meaningful progress toward improving liquidity and operating performance while maintaining credit metrics well below our 3x upside leverage threshold, even in this volatile year for apparel and department store companies.The company today released its third quarter ended October 29, 2022, reaffirming its sales guidance and increasing its earnings forecast for 2022. We expect a festive season moderate but profitable, with the inclusion of Toys R Us and own merchandise positions.

“Although the performance of the pandemic in 2020 was weak, it also brought more activity to the company’s e-commerce platform, perhaps in the long term, as did the operational improvement strategy Company Polaris. We expect adjusted lease leverage to remain below 2x for the fiscal year ending January 2023 (fiscal year 2022) and low leverage of 1x based on reported debt for 2022, given that more 60% of the debt is leases.

“We expect flat sales but gross margin compression of 150 basis points (bps) in fiscal year 2022. We expect approximately 300 bps of reported EBITDA margin compression for full year 2022 , but note that the past year has been exceptionally strong for the company, and that brings the company back to more normalized pre-pandemic levels.

“We expect fourth quarter 2022 EBITDA to decline 35% from the prior year period. We believe it would take a much steeper decline in the next quarter to achieve leverage 3x adjusted for S&P Global Ratings leases in FY2022 This would be a material miss which we view as unlikely We expect a milder holiday amid recessionary pressures with some downsides, but don’t think this will be an unseen season compared to last year.We also note that while third quarter adjusted EBITDA by company is down to $439 million from $765 million a year ago, that number was $159 million in Q3 2020.

“We believe management is committed to staying well below S&P Global Ratings’ adjusted lease leverage of 3x in fiscal year 2023 and beyond, with a leverage target of 2x or less on its adjusted basis. Macy’s has made significant progress in deleveraging its balance sheet in recent years. We believe it will repay more of its notes if debt to EBITDA exceeds 2x in 2023. We expect that the company will have at least $700 million to $800 million of cash on the balance sheet this year and next.

“We note that Macy’s completed approximately $600 million in share buybacks in the first quarter of 2022. It has $1.4 billion authorized for the year and today said its outlook does not take into account the impact of any potential future stock repurchases associated with its current stock repurchase authorization.

“The company’s capital structure is now predominantly unsecured and we understand management’s priorities in order are liquidity, deleveraging, organic and Polaris growth, mergers and acquisitions (M&A), dividends, then share buybacks We note that the company has proactively managed its debt maturity profile with no major maturities over the next 5 years.

“We also expect Macy’s to continue to outperform many peer retailers this year, with a disciplined approach to inventory management. Inventory turnover for this third quarter of 2022, on a twelve-month basis, was relatively stable until 2021, while many competitors’ inventories increased by double digits this year compared to previous ones. We believe the company is planning inventory very conservatively for the first two quarters of 2023. Due to this strong operational efficiency, we have revised our management and governance score down one notch to fair.

“The stable outlook reflects our view that Macy’s will be able to navigate successfully through a potentially challenging 2023 fiscal year, capitalizing on its strong commodity and capital allocation strategies and maintaining S&P lease-adjusted leverage. between 2x and 3x over the coming year.”

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Practical provisions of commercial leases in the face of changing times https://bcn-stay.com/practical-provisions-of-commercial-leases-in-the-face-of-changing-times/ Fri, 18 Nov 2022 17:54:00 +0000 https://bcn-stay.com/practical-provisions-of-commercial-leases-in-the-face-of-changing-times/ Rental conditions November 18, 2022 – Over the past two years, standard attorney lease language has been tested by natural disasters, the pandemic, and drastic changes in the way people work. To adapt to changing times, lawyers should consider incorporating a variety of practical provisions into their corporate leases regarding term, base and additional rent, […]]]>

Rental conditions

November 18, 2022 – Over the past two years, standard attorney lease language has been tested by natural disasters, the pandemic, and drastic changes in the way people work. To adapt to changing times, lawyers should consider incorporating a variety of practical provisions into their corporate leases regarding term, base and additional rent, liability insurance, premises rights and force majeure.

Tenants are asking for longer, not shorter, terms to protect against market uncertainties, including inflation. But tenants are also trying to hedge their bets, remembering how Covid-19 affected their businesses.

There are a few legal tools for tenants to solve this problem. The first is to include one or more termination options in favor of the tenant, at fixed times. The second concerns the exclusion provisions. These allow the tenant to terminate the lease if a government-declared disaster or health emergency results in external conditions or a government order that reasonably renders the tenant unable to conduct business for a specified period of time.

Basic rent

Lawyers should consider incorporating pandemic and accident provisions, as well as addressing the effects of inflation, into the base rent terms of a lease.

Tenants remember the delicate negotiations that took place during the pandemic, where landlords often authorized a combination of rent reduction, rent reduction and rent deferral. Now, tenants are trying to negotiate covenants that incorporate one or more of these elements upon the occurrence of specific events in the future, such as a declared health emergency that results in a government order that reasonably renders the tenant unable to conduct business. . trade in the rented premises.

Most often, it is a rent deferral business for an extended lease term. The landlord will, for example, authorize a 30% reduction in the base rent in exchange for the tenant’s commitment to repay the deferred amount over a longer lease term than that initially provided for in the lease, thus allowing the landlord to recover his lost money returned.

What about the effects of a catastrophic casualty like a major hurricane? This falls under business interruption insurance. Landlords and tenants should ensure that the party who is required to carry property/casualty insurance is also required to carry business interruption insurance. If that party is the tenant, the lease must clearly state that the tenant’s rental obligations continue despite any loss.

Inflation is another current social/economic trend causing landlords and tenants to take a closer look at rent increases based on the Consumer Price Index. Leases often cap CPI increases in base rent. Landlords facing inflation rates of 7 or 8% now regret those 2% or even 5% caps, and future leases are less likely to contain such limits on rent increases.

Renters, on the other hand, see the importance of having limits on CPI increases. Strong tenants will seek low caps on CPI increases.

Damage insurance

More severe natural disasters have taught us not to take P&C provisions for granted. There are many questions to consider in order to answer the myriad of issues that can arise.

What determines if a claim is so severe that termination of the lease is permitted? Is it based on the duration of the restoration, the cost of the restoration or the percentage of the total square footage of the leased premises and/or furnishings that is damaged? Other factors to consider include a lack of access to the premises and whether the premises have otherwise become unsuitable for the intended uses.

Who has the right of termination, owner, tenant or both? If termination is not permitted, what are the possible pitfalls in getting the premises restored? Is the owner only required to make repairs to the extent of available insurance proceeds? It’s a problem if the owner’s lender takes the product instead, or if the owner’s insurer is late in paying or underpaying. The tenant could be protected by a right of termination linked to these issues.

What if the owner experiences extended delays in completing the restoration? To solve this problem, the tenant could try to negotiate a termination right after a specified period of time. In this case, the tenant should be prepared to give the landlord specific notice that the tenant intends to terminate, with additional time to remedy, to allow the landlord to expedite the work.

Which party is obligated to take out damage insurance? It must be the same party that is obligated to restore the premises.

Who is required to insure what? Often, the landlord is required to insure the envelope of the building, and the tenant is required to insure its “capital gains”. As part of this arrangement, it is essential to define what constitutes “improvements” and the building envelope.

These damage insurance provisions must also be coordinated with the provisions relating to rights and remedies after the occurrence of a claim.

Also keep in mind that business interruption insurance is only available to the party that has P&C insurance. If the landlord is the party required to purchase damage insurance, but the tenant is required to pay rent despite the occurrence of a claim, the tenant could be left with no insurance product with which to pay rent.

Finally, we have learned from COVID-19 that a pandemic does not constitute “damage” for the purposes of triggering damage and business interruption insurance. Therefore, tenants should pay particular attention to whether they are required to continue paying rent in this case.

Additional rent

Recent events have surprised landlords and tenants on the generally prosaic subject of the tenant paying their proportionate share of the landlord’s operating expenses.

Tenants are often surprised to learn that the landlord’s deductible under the landlord’s damage insurance is part of the operating expenses for which the tenant must pay their proportionate share. A catastrophic hurricane, combined with a 3-5% hurricane deductible, can result in a multi-million dollar deductible.

In addition, rising vacancy rates have drawn attention to the “95% mark-up” provision found in most leases. This provision generally provides that, where the operating costs of the building will be passed on to the tenants on a proportional basis but the building is not yet fully occupied, the landlord may “mark up” or overestimate his operating costs. operating variables as if the building were 95% occupied to reflect the expenses the owner will incur once occupancy increases.

In an office lease with a reference year, this clause is essential for a new tenant. Vacancies can cause a landlord’s current expenses to be underestimated, and when occupancy rates rise, increased operating expenses in the low base year can be a problem for the tenant.

In a commercial or industrial lease, on the other hand, the landlord usually passes on all operating costs, so a tenant of a building that is only 50% occupied could end up paying almost double the costs that would be allocated. to its space based on a pure percentage. The tenant therefore wants to try to negotiate a cap on variable charges.

Premises and neighboring rights

The popularity of remote work is pushing tenants to seek flexibility in the size of their spaces. This has led to provisions allowing a reduction in the size of premises at specified time intervals. Likewise, more flexible hours mean tenants want the option to reduce the parking spaces they pay for – and perhaps increase them, if trends change.

force majeure

It is more important than ever to review force majeure provisions, as they must be coordinated with any new rental provisions described in this article.

First, each party to a lease must determine whether or not the force majeure clause grants relief from monetary obligations like paying rent. Landlords say “no” and tenants try (but almost always fail) “yes”.

Certain force majeure events, such as a hurricane, will also be covered by the loss provisions of the lease. Thus, the provisions on these two subjects, including the rent abatement, must be coordinated.

The force majeure provision should also clarify what does or does not constitute force majeure. Regarding an event like COVID-19, there are two questions a lawyer should ask. First, does it have to be a government-declared health emergency? Second, is it the existence of this emergency (the pandemic or epidemic) itself that is the force majeure event, or is it the government order (quarantine or stay-at-home order) that follows ?

A cautious tenant may also wish to add specific language defining force majeure to include utilities and access.

Here are two examples:

(1) “Utility disruption or failure preventing use of all or substantially all of the premises for XX consecutive days”; and

(2) “Physical conditions preventing access to all or substantially all of the premises for XX consecutive days.”

Conclusion

Leases are long term and should be flexible documents. The good news is that lawyers can incorporate provisions now that will give parties guidelines for determining their rights and remedies, regardless of changes in the future.

The opinions expressed are those of the author. They do not reflect the views of Reuters News, which is committed to integrity, independence and non-partisanship by principles of trust. Westlaw Today is owned by Thomson Reuters and operates independently of Reuters News.

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]]> American Eagle Outfitters: Effective and Inexpensive (NYSE: AEO) https://bcn-stay.com/american-eagle-outfitters-effective-and-inexpensive-nyse-aeo/ Sun, 06 Nov 2022 07:48:00 +0000 https://bcn-stay.com/american-eagle-outfitters-effective-and-inexpensive-nyse-aeo/ wdstock American Eagle Outfitters, Inc. (New York stock market :AEO) is far from recession proof, in fact, it is very economically sensitive. Clothing is consumer discretionary, one of the first categories to be cut when people cut back on spending, and in general consumers are fickle with brands. With the economy no sounding too sound, […]]]>

wdstock

American Eagle Outfitters, Inc. (New York stock market :AEO) is far from recession proof, in fact, it is very economically sensitive. Clothing is consumer discretionary, one of the first categories to be cut when people cut back on spending, and in general consumers are fickle with brands. With the economy no sounding too sound, these are the main risk considerations when investing in AEO. That said, the management is, in my opinion, among the most talented in the clothing retail industry. They executed their growth strategy, maintained efficient operations and inventory management to support margins. It is very easy for a retailer to overstock merchandise that may require significant markdowns to restock shelves with the correct SKUs. Without clearing inventory fast enough and at the right price, stores become unprofitable and, if protracted, require closure depending on other factors such as leases.

Overall, however, AEO has done quite well in this regard with limited store closures and significantly increasing its store footprint from 1,047 locations in FY17 to 1,133 in FY17. fiscal year 21 and 1,141 in the second quarter of 2022. , and now a looming recession as consumer sentiment slumps to multi-decade lows:

Chart
Data by Y-Charts

Despite the efficiency of American Eagle’s stocks relative to the competition, it is not immune to broader economic pressures. In September, the company said it was actively eliminating inventory, cutting capital spending and eliminating its dividend. This is strategically sound given that the company’s margins and cash flow were under pressure, especially as cash and equivalents fell to a new low.

Chart
Data by Y-Charts

Fortunately, the company remains profitable and its cash flow is positive, which eliminates any liquidity risk. Although consolidated revenues were essentially flat or slightly up year-over-year, operating profit compressed in all three segments due to markdowns, higher transportation costs and the minor loss of Quiet Platforms.

In 2021, AEO completed two supply chain related acquisitions including Quiet Platforms and AirTerra to form its “Supply Chain Platform”. Management explained that these decisions were driven by the goal of achieving scale and greater efficiency to compete with large retailers. For example, AEO sought to improve customer service by offering same-day and next-day delivery like Amazon (AMZN). Although some net losses have been incurred so far, management has already relayed lower shipping costs, fewer shipments per order and faster delivery times. Given AEO’s already strong inventory management capabilities, such integrations should result in improved sales, operating margins and cash efficiency over the long term.

In the near term, management indicated that gross margins will fall to the low of 30 in the fourth quarter of 2022, which will be the lowest mark since the COVID pandemic.

Chart
Data by Y-Charts

However, I believe that once the business gets through this excess inventory cycle, gross margins will normalize and cost savings will bring operating margins back to their historical average. My estimate is that operating margins should return to an average range of 7-10%, similar to the trend seen in recent non-COVID years.

Chart
Data by Y-Charts

Another growth opportunity for AEO is its plans to open two flagship stores in Japan. AEO already has an online presence in Japan, but if this reopening is successful in those places, there could be another stage of organic growth for the company.

I think AEO’s sales will eventually top $6 billion or more, but it’s certainly possible that growth will falter for a while around its $5 billion TTM revenue. If we combine this estimate of revenue and operating margin, AEO can generate $350 million in bottom-end operating profit. Factoring in its total interest expense of $16 million and an effective tax rate of 25% generates about $250 million of net income or about $1.39 of EPS. This equals 8 times the winnings. If we take the blue sky scenario of $6 billion in sales and an operating margin of 10%, that’s a much better EPS of $2.43, or 4.5 times earnings. Arguably, a cyclical retailer shouldn’t trade more than 8x earnings, except AEO is not your typical retailer. Again, AEO demonstrates a fairly consistent ability to generate organic revenue growth, particularly by always having a lead with Aerie, and further optimizing its supply chain. It also has limited financial leverage.

Taking these factors together, I think there’s a strong case for AEO to be revalued toward a total enterprise value of $3 billion, or about $16 per share. This price target equates to almost 50% upside from current prices.

Chart
Data by Y-Charts

Downside concerns

The main downside risk considerations are that the economy and/or consumer confidence could remain much weaker than expected, which would negatively impact sales and margins. Also note that when sales and margins tend to fall, the market tends to overreact and valuation multiples could drop further.

Second, but less relevant, AEO suspended its dividend. While I believe this decision is in the best interests of shareholders to preserve the balance sheet, some investors are invariably disappointed. This is the second suspension in recent years, so it can be frustrating to own this stock for income. However, I think it is far better to own a stock whose management fundamentally cares about the financial health of the company than to appease a certain class of shareholders. In other words, if management cares about the shareholders, it will care about the company first. Regardless, I believe that once this large excess inventory is absorbed and/or the economy stabilizes, management will have more clarity and eventually reinstate the dividend.

Conclusion

I generally caution against bottom-picking, which is very difficult. Investors should be cautious about holding positions given fourth quarter inventory and gross margin forecasts. Performance might get uglier before it gets better. Management still seems cautious about the apparel industry and the economy in general. Although I expect some volatility and lower prices over the next few quarters, I fall into the bullish camp at today’s prices. AEO’s management team will continue to execute its growth strategy and further improve operational efficiencies through its supply chain acquisitions. The company’s valuation, which is trending towards multi-year lows, is another attractive factor, which I believe will lead to a long-term upside. How do you think AEO will work? Let me know in the comments section below. As always, thanks for reading.

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Workforce housing proposed on municipal land | https://bcn-stay.com/workforce-housing-proposed-on-municipal-land/ Sun, 30 Oct 2022 05:15:00 +0000 https://bcn-stay.com/workforce-housing-proposed-on-municipal-land/ Members of the Roswell City Council Legal Committee heard about a proposal that would add 70 additional units of workforce rental housing to the city during their meeting on Thursday. Stephen Crozier, founder and CEO of Tierra Realty Trust in Santa Fe, proposed the use of vacant city-owned land at 500 S. Richardson Ave. for […]]]>

Members of the Roswell City Council Legal Committee heard about a proposal that would add 70 additional units of workforce rental housing to the city during their meeting on Thursday.

Stephen Crozier, founder and CEO of Tierra Realty Trust in Santa Fe, proposed the use of vacant city-owned land at 500 S. Richardson Ave. for 45 units. The Yucca Leisure Center was located on this site until its demolition in 2018.

The remaining 25 units would be on East and West Alameda streets that Crozier said he has available for such use.

All of these units are referred to as “Alameda Flats”. These units would make up a total of 72,000 gross square feet.

The plans for the two local sites would be to use simple materials that would be easy to maintain. The design would be modern and “promote privacy, security, connection to the outdoors, and residents’ sense of community”, while creating “a strong street presence”, the written project proposal stated.

It would take about 2.5 to 3 years to build the unit and get it ready for tenants to start moving in, Crozier said.

For this development, tenants would earn no more than 60% of the Chaves County Area Median Gross Income (AGMI). The median income of people residing in the county, as of 2020, is $46,254 and 60% of that amount is around $27,750, according to the US Census Bureau.

Some potential tenants could qualify for units while earning 30% AGMI. Other tenants should earn 50% or 60% of the AGMI.

About 25% of the dwellings would be intended for use by families.

Starting monthly rents would range from $650 to $850.

The rents paid for these units would remain limited for 40 years, Crozier pointed out.

Crozier’s company was involved in a series of other construction projects. Several of these involved the use of public property or public funds and are considered affordable housing, such as Playa Escondida in Hobbs and Hotel Clovis in Clovis. The Clovis project involved renovating the hotel – a National Register of Historic Places site – into approximately 31 lofts as well as 29 new units.

In Roswell, the city-owned site on Richardson Avenue has not been sold or given to anyone at this point, according to the city.

However, Mayor Timothy Jennings said on Thursday that the owner of a business near the South Richardson site had also expressed interest in developing that property.

City staff later said Bruce Gwartney of J&G Electric, which is located in the 500 block of South Main Street, is the other interested party.

After committee members heard about Crozier’s plan and discovered that someone else was monitoring the site, it was decided to hold a public meeting. Scheduled for 6 p.m. Nov. 7 at the Roswell Convention Center, city officials will listen to public opinions regarding the use of city property.

Members of the legal committee will hear information about site plans from Crozier, who made a presentation to the committee on Thursday, and J&G Electric at their Nov. 10 meeting.

Crozier explained that in order for him to meet the mid-January deadline, city councilors would need to approve a resolution for the land donation to Crozier by November 21 so that he can meet the deadline of the mid-January to apply for funding from New Mexico. Finance Authority.

He described the funding source as “very competitive”.

The estimated cost to complete Alameda Flats is more than $17.5 million, Crozier also told committee members.

Sites associated with the Alameda Flats are zoned R-3 residential.

Another item on the committee’s agenda was seeking board approval to approve the request for proposals for a strategic plan for Roswell Air Center.

Two other points dealt with potential changes in the city’s administrative code regarding the powers of those in managerial positions, such as the city manager and city clerk, as well as changes in the resolutions that created the Roswell Airport Authority. Commission (RAAC) that would clarify the procedures and what topics they will cover, said city prosecutor Hess Yntema.

A possible future joint powers agreement between Roswell and Chaves County for the airport would likely mean that those actions — if ultimately approved — would become moot.

Work will continue on amending Chapter 2 of the city code regarding city appointees, officers, and department directors, while proposed amendments for RAAC resolutions will be submitted to the Roswell City Council.

These revisions to the code and resolutions were launched in early September, shortly after Yntema began working as a city attorney.

Other elements of the airport included the authorization of an airport operations lease with Aersale, Inc., a lease with Ascent Aviation for the use of airport building No. 117, a lease with Clean Up Enterprises for Airport Building No. 67 and a lease with J&S Mechanical for Airport Building No. 61.

An article that would have set a public hearing on a draft ordinance that would regulate massage establishments has been postponed.

Reporter Terri Harber can be reached at 575-622-7710, ext. 308 or journalist03@rdrnews.com.

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SPEAR REIT LIMITED – Announcement of disposal of category 2 – 15 on Orange – SENS https://bcn-stay.com/spear-reit-limited-announcement-of-disposal-of-category-2-15-on-orange-sens/ Mon, 24 Oct 2022 06:45:00 +0000 https://bcn-stay.com/spear-reit-limited-announcement-of-disposal-of-category-2-15-on-orange-sens/ Category 2 Disposal Announcement – 15 On Orange SPEAR REIT LIMITED(Incorporated in the Republic of South Africa)(Registration number 2015/407237/06)Share Code: SEAISIN: ZAE000228995LEI: 378900F76170CCB33C50Approved as a REIT by the JSE(“Spear”) CATEGORY 2 DISPOSAL ANNOUNCEMENT – 15 ON ORANGE 1. INTRODUCTION 1.1. Shareholders are advised that on 24 October 2022 (“Signature Date”), Spear, throughits wholly-owned subsidiary Spear […]]]>
                            

Category 2 Disposal Announcement – 15 On Orange

SPEAR REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/407237/06)
Share Code: SEA
ISIN: ZAE000228995
LEI: 378900F76170CCB33C50
Approved as a REIT by the JSE
(“Spear”)

CATEGORY 2 DISPOSAL ANNOUNCEMENT – 15 ON ORANGE

1. INTRODUCTION

1.1. Shareholders are advised that on 24 October 2022 (“Signature Date”), Spear, through
its wholly-owned subsidiary Spear Holdco Proprietary Limited (“Spear Holdco”),
entered into a sale of shares agreement (“Agreement”) with Erf 18 Zimbali Coastal
Resort Proprietary Limited (“Purchaser”) (beneficially owned by Resrev Malta
Limited), in terms of which Agreement, Spear will dispose of 100% of the issued shares
(“Sale Shares”) in its wholly-owned subsidiary Blend Property 15 Proprietary Limited
(“Blend 15”), to the Purchaser for a disposal consideration of R246 000 000, as
adjusted in accordance with paragraph 3 below (“Disposal Consideration”)
(“Disposal”).

1.2. Blend 15 is the owner of the immovable property comprising –

1.2.1. Section No 1,000 in the scheme known as 15 on Orange (“Scheme”), which section
is used for purposes of providing serviced business and hospitality premises;

1.2.2. Section No 2,000 in the Scheme, which section is used mainly for retail purposes;

1.2.3. Section Nos 201 to 342 (inclusive) in the Scheme, all comprising parking bays,

together with an undivided share in the common property in the Scheme apportioned
to the said sections and includes the right to certain exclusive use areas in the Scheme
(“Property”). During 2021, Blend 15 concluded a lease agreement in respect of the
Property (“Lease”), with The Capital Apartments and Hotels Proprietary Limited
(“Tenant”), which is an associate of the Purchaser, who leases the Property to conduct
its business, being the provision of hospitality, serviced apartments, restaurant and
conference related services.

1.3. In addition to the Lease, Blend 15 concluded an option agreement (“Option
Agreement”) with The Capital Apartments and Hotels Group Proprietary Limited
(“Capital Hotels Group”) which is an associate of the Purchaser and the Tenant, in
terms of which Blend 15 granted Capital Hotels Group a call option to purchase the
Property, together with (i) the Lease, (ii) all movable assets owned by Blend 15 and
situated on the Property, and (iii) all of Blend 15’s rights, title and interest in and to the
name “15 on Orange” (“Call Option”), details of which were announced on SENS by
Spear, on 18 March 2021. The Call Option has not been exercised and the parties
have agreed that the Option Agreement will be cancelled upon the implementation of
the Disposal.

2. RATIONALE FOR THE DISPOSAL

2.1. The disposal of the Property will be the culmination of Spear’s stated strategy to exit
the hospitality sector, as advised to the market in 2019, following a disciplined
approach by Spear’s management in this regard.

2.2. Spear’s portfolio composition, following the implementation of the Disposal, will be fully
aligned with managements strategic objectives of owning fixed income producing
Western Cape assets comprising industrial, retail, commercial and mixed use assets.

2.3. The Disposal Consideration represents a 7% discount to the Call Option price of
R265 000 000, as agreed in terms of the Option Agreement. The discount was
acceptable to the board of directors of Spear, given the fact that the Disposal will be
implemented prior to the expiry of the period within which the Call Option could have
been exercised and taking into account the opportunity cost of not concluding the
Disposal in light of the current macro-economic environment, rising interest rates and
the alternative investment opportunities available to Spear, which align with its
investment strategy.

3. DISPOSAL CONSIDERATION

3.1. The Disposal Consideration is an amount equal to –

3.1.1. the sum of R246 000 000;

3.1.2. plus (if the amount is positive) or minus (if the amount is negative) an amount equal
to the net working capital of Blend 15 as at the Closing Date (as defined below),
which amount is estimated to be the (positive) sum of R6 875.82;

provided that the Disposal Consideration will not exceed a maximum amount of
R247 000 000.

3.2. The Disposal Consideration will be provisionally determined by Spear prior to the last
business day of the month in which the last of the Conditions Precedent (as defined in
paragraph 5 below) is fulfilled or waived (“Closing Date”), based on pro-forma financial
information of Blend 15 as at the Closing Date (“Provisional Disposal
Consideration”). The Provisional Disposal Consideration shall be paid by the
Purchaser to Spear in cash on the Closing Date.

3.3. The Disposal Consideration will be finally determined after the Closing Date, based on
the financial statements of Blend 15 as at the Closing Date. If the Disposal
Consideration is determined to be more than the Provisional Disposal Consideration,
the Purchaser shall pay the difference to Spear. If the Disposal Consideration is less
than the Provisional Disposal Consideration, Spear shall pay the difference to the
Purchaser.

4. APPLICATION OF THE DISPOSAL CONSIDERATION

4.1. Since the Property is not financed and there is no related debt which needs to be
settled as a result of the Disposal, the full Disposal Consideration will be received by,
and be available to, Spear.

4.2. The Disposal Consideration will be utilised to grow Spear’s portfolio in a strategy-
aligned manner, following a value investment approach. Whilst such strategic
investment and growth opportunities are being pursued and finalised, a portion of the
Disposal Consideration will be applied to settle certain of the existing debt facilities of
the Spear group permanently and the remaining portion of the Disposal Consideration
will be held in Spear’s existing debt facilities, to reduce interest costs, in line with
Spear’s strategic objective to maintain the Spear group loan to value (“LTV”) ratio
within the target range of between 38% and 43%. The application of the Disposal
Consideration will reduce the group LTV by 298 bps and the forecasted Spear group
LTV, following the implementation of the Disposal, will be 38%.

5. CONDITIONS PRECEDENT

5.1. The Disposal is subject to the fulfilment of the following outstanding conditions
precedent (“Conditions Precedent”) that –

5.1.1. the Purchaser shall have concluded a written loan agreement with a South African
financial institution, in respect of the financing of the Disposal Consideration;

5.1.2. Nedbank Limited has provided Blend 15 and the Purchaser with a written,
irrevocable undertaking to release Blend 15 from certain guarantees and
suretyships with effect from the Closing Date and to cancel the mortgage bond
registered over the Property in its favour as soon as is reasonably possible after the
Closing Date;

5.1.3. the Disposal has (to the extent necessary) been unconditionally approved by the
applicable competition authorities in terms of the Competition Act, No. 89 of 1998,
or conditionally approved on conditions which are acceptable to the parties; and

5.1.4. transfer of ownership of Section 15 in the Scheme, being a residential unit, together
with certain parking bays, a storeroom and a balcony (‘Section 15”), which is
excluded from the Disposal and which was sold by Blend 15 to Spear Holdco prior
to the Signature Date, is registered in the name of Spear Holdco in the Cape Town
Deeds Registry Office.

5.2. The Conditions Precedent must be fulfilled by not later than 31 January 2023, which
date may be extended by the parties in writing.

6. EFFECTIVE DATE OF THE DISPOSAL

The effective date of the Disposal will be the Closing Date, which is anticipated as being
on or about 31 January 2023.

7. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT

7.1. The Agreement contains representations and warranties by Spear, in respect of
Blend 15 and the Property, in favour of the Purchaser which are standard for a
transaction of this nature.

7.2. Subject to such warranties, the Sale Shares are sold “voetstoots”.

7.3. Capital Hotels Group is a signatory to the Agreement and by its signature thereto
agrees that the Option Agreement is cancelled, with effect from the Closing Date.

8. THE PROPERTY

Details of the Property are as follows:

Property Geographical Sector Gross Weighted
Name and Location Lettable Area Average Net
Address (m2) Rental / m2
15 on Orange, Cape Town, Hospitality 15 946 R104.51
Corner of Western Cape
Orange Street
& Grey’s Pass,
Gardens

Details regarding the Property, as at the Signature Date, are set out below:

Disposal Yield Weighted Average Weighted Average Vacancy % by
Attributable to Escalation Lease Duration Gross Lettable
Shareholders (years) Area
8.13% 5.00% 5.83 0.00%

Notes:

a) In addition to the Disposal Consideration, the costs associated with the Disposal are
estimated at R250 000. No agents’ commission is payable in respect of the Disposal.
b) The Disposal Consideration payable in respect of the Sale Shares in Blend 15, which
holds the Property, is considered to be its fair market value, as determined by the
directors of Spear. The directors of Spear are not independent and are not registered
as professional valuers or as professional associate valuers in terms of the Property
Valuers Profession Act, No. 47 of 2000.

9. FINANCIAL INFORMATION

9.1. As at 28 February 2022, being the date of the last published audited consolidated
annual financial statement of the Spear group (including Blend 15), the value of the net
assets attributable to Blend 15, excluding the value of the net assets attributable to
Section 15, was R265 000 000.

9.2. The audited profit after tax attributable to Blend 15 for the financial year ended
28 February 2022, excluding the profit after tax attributable to Section 15, was
R13 214 966, based on the last published audited consolidated annual financial
statement of the Spear group (including Blend 15), which were prepared in terms of
IFRS.

10. CLASSIFICATION OF THE DISPOSAL

The Disposal Consideration represents more than 5% but less than 30% of Spear’s
market capitalisation as at the Signature Date and accordingly the Disposal constitutes a
category 2 transaction in terms of the JSE Limited Listings Requirements.

Cape Town
24 October 2022

Sponsor Legal Advisor
PSG Capital Cliffe Dekker Hofmeyr

Date: 24-10-2022 08:45:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.

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Increase in Boeing Wide Body orders (NYSE: BA) https://bcn-stay.com/increase-in-boeing-wide-body-orders-nyse-ba/ Mon, 17 Oct 2022 15:36:00 +0000 https://bcn-stay.com/increase-in-boeing-wide-body-orders-nyse-ba/ Ryan Flecher While Boeing (NYSE: BA) does not quite meet expectations for single lane deliveries. I remain optimistic about their recovery trajectory. More importantly, this is driven by the return of the Boeing 787 to the delivery mix, which is priced around three times higher than a single-aisle jet. In this report, I will review […]]]>

Ryan Flecher

While Boeing (NYSE: BA) does not quite meet expectations for single lane deliveries. I remain optimistic about their recovery trajectory. More importantly, this is driven by the return of the Boeing 787 to the delivery mix, which is priced around three times higher than a single-aisle jet. In this report, I will review orders, deliveries and other changes in Boeing’s order book in September.

For this report, I will be using the evoX Order and Delivery Monitor developed by The Aerospace Forum. For those who have been following the monthly order and delivery reports I write for Airbus and Boeing, you might notice that this monitor is completely different. So I wanted to briefly introduce this new product which I will occasionally use as a backbone for investor updates. Over time, our data analysis capabilities have grown significantly. With that comes new ideas on how to do things better. As a result, I launched evoX, which combines front-end efforts and back-end improvements to improve our data analysis tools.

The evoX platform introduces a whole new look to interactive monitors, but it doesn’t stop there. We have consolidated various monitors and pages into one, making more data accessible with one tool and from the same data we present more information to you. Thus, we better leverage the hundreds of thousands of data points we have obtained, which allows us to better highlight the data-driven approach of the analysis.

As before, using these tools we are able to analyze orders and deliveries and see where manufacturers are falling short, meeting or exceeding expectations.

Boeing orders climb

Boeing Orders and deliveries September 2022

Boeing Orders and deliveries September 2022 (The Aerospace Forum)

In September, Boeing booked 96 orders worth $9.7 billion, including 51 single-aisle jets and 45 widebody jets, marking a sequential increase of 66 orders:

  • BBAM Aircraft Management has ordered 2 Boeing 737 MAX.
  • Fifteen Boeing 767-2Cs, base aircraft of the KC-46A, have been ordered.
  • China Airlines has ordered 16 Boeing 787-9s.
  • An unidentified customer has ordered 7 Boeing 737 MAX.
  • An unidentified customer has ordered 2 Boeing 777Fs.
  • An unidentified customer has ordered 12 Boeing 777Xs.
  • WestJet has ordered 42 Boeing 737 MAXs.

During the month, the following changes were made to the backlog:

  • Air China has been identified as a customer for 5 Boeing 777Fs.
  • All Nippon Airways has been identified as the customer for 1 Boeing 787-9.
  • A/S Maersk Aviation Holding has been identified as a customer for 1 Boeing 767-300F.
  • CES Leasing Corporation has been identified as a customer for 1 Boeing 777F.
  • Aviation Capital Group has been identified as a customer of 12 Boeing 737 MAX.
  • Ethiopian Airlines Group has been identified as a customer of 5 Boeing 777Fs.
  • Five Boeing 787-8 orders previously listed under Boeing Capital Corporation have been transferred to American Airlines (AAL).
  • Alaska Air has canceled orders for 5 Boeing 737 MAXs.
  • An unidentified customer has canceled an order for 1 Boeing 787-9.

Cargolux Boeing 777-8F

Boeing

In terms of orders, September was a good month for Boeing. Boeing has booked a large order from WestJet for the MAX 10, which I have discussed in more detail in a separate report and there has been a flurry of widebody orders, including an order for the Dreamliner from China Airlines (Taiwan ) and an order for 12 Boeing 777X aircraft. Ten of those orders have now been awarded to Cargolux and it will be interesting to see who is the customer for the other two aircraft. There were also orders for Air Force tankers, meaning all significant widebody orders received orders, which is certainly not something that happens every month. What’s also nice is that the orders were almost evenly split between single-aisle and widebody orders, and while it’s too early to make any definitive statements, we might see the appetite for wide-body aircraft reborn.

In September, Boeing booked 96 gross orders, worth $9.7 billion, while it removed six orders worth $407 million from the books, bringing net orders to 90 orders. worth $9.3 billion. A year ago, the US aircraft manufacturer recorded 27 orders and 5 cancellations, bringing its net orders to 22 units with a net order value of $2.0 billion. So we see that the net inflow of orders has increased significantly.

Year-to-date, Boeing has recorded 542 gross orders and 114 cancellations, bringing net orders to 428 units with a net order value of $32.2 billion. In the first nine months of 2021, Boeing recorded 710 gross orders and 302 net orders with a net worth of $24.4 billion. So gross orders have tended to be lower year-over-year, but net order value is more positive, and the improved mix is ​​giving Boeing year-over-year growth in order value.

Boeing has also updated its ASC606 adjustment tally, which is a tally in which Boeing groups orders that have a purchase agreement but also several other checkboxes that must be checked in order to count aircraft orders or not. in the order book. During the month, we saw the count increase as 49 737 MAX aircraft were added and three Dreamliners were removed from the count. Although the name of the customer is not disclosed by Boeing, I expect the 737 MAX additions to the tally to come from Akasa Air and Aerolineas Argentinas. Akasa Air may be more inclined to lease planes than to buy directly at this stage and it is highly likely that the order for seven aircraft will compensate for a possible cancellation by the Argentine carrier.

If all of the ASC 606 adjustments result in cancellations, which is certainly not always the case, Boeing would have to strike an additional 882 planes off its books.

Pickup of Boeing deliveries

American Airlines Boeing 787-8

American airlines

In September, Boeing delivered 51 aircraft compared to 35 the previous month. The jetmaker delivered 37 single-aisle jets and 14 jumbo jets with a combined value of $3.9 billion:

  • A total of 37 Boeing 737s have been delivered, including one Boeing P-8A and 36 Boeing 737 MAXs.
  • Boeing has delivered five Boeing 767 family aircraft consisting of one Boeing 767-2C and four Boeing 767-300Fs.
  • Boeing has delivered two Boeing 777Fs.
  • Boeing has delivered seven Boeing 787s; three -8s, two -9s and two -10s.

In September, deliveries rose to 51 units from 35 a month earlier. Delivery numbers were in line with June numbers but with a more attractive mix as the Boeing 787 is back in the game. Additionally, we found that MAX deliveries exceeded the production rate, indicating that inventory has decreased in September. However, it should also be noted that in the last month of the quarter, deliveries tend to be higher to meet quarterly targets or release as many aircraft as possible and this is not necessarily an indication of a sustained inventory reduction. In previous months, I haven’t been impressed with Boeing’s delivery numbers, but this month is different. We have seen the Boeing 737 MAX and the Boeing 787 perform well in terms of deliveries.

Compared to last year, shipments increased by 16 units while the value of shipments increased by $1.3 billion, reflecting a better shipment mix. Year-to-date, Boeing has delivered 328 planes worth $22.1 billion, up from 241 planes worth $18.5 billion last year. Year-to-date figures show Boeing deliveries are significantly higher, thanks to the Boeing 737 MAX program. Boeing 787 totals have yet to catch up to last year, but this program will also be a positive factor in increasing revenue this year.

The order-to-bill ratio for the month was 1.9 on a unit basis and 2.5 on a dollar value basis. For the first nine months of the year, the gross ratio of orders to invoices is 1.7 in terms of units and 1.8 in terms of value, while the cancellation rate is 21% and 2.4% compared to the order book. The book-to-bill ratio for the year looks extremely strong. This is due to a strong influx of orders, but also disappointing delivery figures due to supply chain issues. So, order-to-bill ratios above one show balanced or oversold positions in general, but in this case they also reflect big challenges in increasing production.

Conclusion: Boeing keeps its promises, now its share price must keep its promises

Boeing had a good month in terms of orders securing a large order from WestJet for the MAX and also securing widebody orders for passenger, freighter and base tanker aircraft. We could see the first signs here that the appetite for widebody orders is back and if so, the Boeing 787 is back just in time. However, it’s also worth bearing in mind that when the Dreamliner stopped delivering, which attracted significant negative attention, airlines were unlikely to be willing to make headlines with orders for it. type, even if significant discounts could have been obtained at the time.

After being somewhat bearish for months on current deliveries while emphasizing the improving outlook for future deliveries, I have finally become more positive on deliveries. Boeing has yet to show sustained inventory reductions for the MAX, which means deliveries are exceeding productions, but its Dreamliner delivery stream looks promising.

Last month, I pointed out that if you liked Boeing last year, you’ll probably like it even more now as delivery flows improve. Boeing is now getting close to what I like to see and the next step is for stock prices to start delivering to investors. The 4% gain from a 2% market decline since the previous order and delivery report could be the start of an improvement in Boeing stock performance.

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US Senator Padilla visits Fresno to celebrate $88 million funding https://bcn-stay.com/us-senator-padilla-visits-fresno-to-celebrate-88-million-funding/ Fri, 14 Oct 2022 21:08:24 +0000 https://bcn-stay.com/us-senator-padilla-visits-fresno-to-celebrate-88-million-funding/ From left, Carole Goldsmith of the State Center Community College District, Fresno Mayor Jerry Dyer, Scott Anderson of the Penstar Group, Senator Alex Padilla and Fresno State Chairman Saúl Jiménez-Sandoval review building plans of the Bank of Italy. Photo by Gabriel Dillard published on October 14, 2022 – 14:00Written by Gabriel Dillard U.S. Senator Alex […]]]>

From left, Carole Goldsmith of the State Center Community College District, Fresno Mayor Jerry Dyer, Scott Anderson of the Penstar Group, Senator Alex Padilla and Fresno State Chairman Saúl Jiménez-Sandoval review building plans of the Bank of Italy. Photo by Gabriel Dillard

published on October 14, 2022 – 14:00
Written by Gabriel Dillard

U.S. Senator Alex Padilla and Assistant Secretary of Commerce Alejandra Castillo were joined by a who’s who of elected officials and state and local dignitaries Friday morning to celebrate $88 million in federal grants coming to the Central Valley through the Fresno-Merced Future of Food Innovation (F3) and Build Back Better initiatives.

They were greeted at a press conference outside the city center Bank of Italy building on Fulton Street, which is envisaged as the future home of the iCREATE technology center as part of F3.

After a tour of the Yo’Ville Community Farm near Edison High School, the band spoke at a press conference to applaud the Central Valley Community Foundation and Fresno County Economic Development Corp. – Applicants to the two grants totaling $88.1 million from the US Economic Development Administration.

“This will change our world forever,” said Lee Ann Eager, president and CEO of Fresno EDC, which has secured $23 million for its Central Valley Built 4 Scale initiative to train 2,500 residents for jobs. in industry, transport and logistics.

Assistant Secretary of Commerce Alejandra Castillo
Deputy Commerce Secretary Alejandra Castillo speaks during a news conference Friday morning. Photo by Gabriel Dillard

The F3 Coalition has secured $65.1 million to create an agriculture and food technology innovation cluster led by local universities and community colleges. Ashley Swearengin, president and CEO of Central Valley Communication, said the effort will result in a 40% increase in regional gross domestic product.

The theme of the event: Fresno and the Central Valley has become a national and even global economic force.

“It’s time for the region that feeds the nation to be the nation’s priority,” Swearengin said.

Part of the F3 initiative would be the creation of the Innovation Center for Research and Entrepreneurship in Agribusiness Technology and Engineering (iCREATE). The event took place in front of the vacant Bank of Italy building, which is envisaged as the future headquarters of iCREATE.

That would be a long way off, as no lease has been signed for the 35,000 to 40,000 square feet that the innovation center may eventually take up residence at the Bank of Italy.

Erected in 1917 by the San Francisco-based Bank of Italy, which became Bank of America in 1930, the eight-story structure was once the center of Fresno’s financial universe. It became vacant in the early 1970s and was acquired by Fresno developer Tom Richards in 2009.

He sought a marquee tenant since it would spur a full-scale renovation of the building.

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Miami voters to decide Knight Center redevelopment plan https://bcn-stay.com/miami-voters-to-decide-knight-center-redevelopment-plan/ Tue, 11 Oct 2022 20:40:00 +0000 https://bcn-stay.com/miami-voters-to-decide-knight-center-redevelopment-plan/ This rendering shows the view looking east along the Miami River, with the design of a redeveloped Hyatt/Knight center complex on the left. Architecture The James L. Knight Center complex and downtown Hyatt Regency could be transformed into a large skyscraper complex that would add to Miami’s skyline and create a new riverside promenade, if […]]]>

This rendering shows the view looking east along the Miami River, with the design of a redeveloped Hyatt/Knight center complex on the left.

This rendering shows the view looking east along the Miami River, with the design of a redeveloped Hyatt/Knight center complex on the left.

The James L. Knight Center complex and downtown Hyatt Regency could be transformed into a large skyscraper complex that would add to Miami’s skyline and create a new riverside promenade, if voters approve the plan. private redevelopment of public waterfront lands.

The developers are hoping to secure a 99-year extension on an existing lease of city-owned land for the major redevelopment, called Miami Riverbridge, which would come with a $25 million contribution to the city for affordable housing. City of Miami voters are expected to approve the broad terms of the deal on Nov. 8. Under the city charter, voter approval is required for a long-term lease of public land on waterfront property, and any changes to existing leases as well. need voters to sign.


This story is a subscriber exclusive

Hyatt Hotels Corp. leased city-owned property near the mouth of the Miami River at 400 SE Second Ave. since 1979. Hyatt, Gencom and Arquitectonica proposed a $1.5 billion plan to build a three-tower structure that would include 615 hotel rooms, 1,500 market-priced apartments, 190,000 square feet of Class A meeting space and a public riverside promenade. The project would add approximately 480 feet of beautified space to the Miami Riverwalk.

The existing concrete block complex, completed in 1982, would be replaced by rounded, glassy facades. Two 61-story towers would include apartments, hotel rooms and extended-stay units. A third would rise over 1,000 feet with 860 residential apartments. A “skybridge” with a restaurant would connect two of the three towers, offering a view of the city from 700 feet above the ground.

The skyscrapers would rest on a pedestal spanning a large driveway that the architects said would ease traffic in the area. The meeting space would replace the 612-room hotel, convention space and 4,500-seat auditorium on the four-acre site. which usually hosts concerts and graduation ceremonies.

Under the current terms of the lease, Hyatt would have the option in 2027 to renew the lease for an additional 45 years. If the ballot passes, the lease would be extended for 99 years. Hyatt and Gencom have also pledged to give the city $25 million for affordable housing.

IMG_hyatt_2_1_AGBSK6HB_L328078188.JPG
The Hyatt Regency and the James L. Knight Center in downtown Miami. Miami Herald file

The Downtown Neighbors Alliance, a resident association of condo dwellers, supports the project but has concerns about traffic flow and quality of life, according to group president James Torres. Developers meet with downtown residents this week.

Ernesto Cuesta, president of the Brickell Homeowners Association, said he supported the plan after his group received a presentation.

“It’s a no-brainer,” Cuesta said. “This is going to be huge for our community. This redevelopment is long overdue. »

The Downtown Development Authority and the Miami River Commission also expressed support for the plan.

Hyatt has spent years trying to redevelop the site under lease extensions. Previous proposals stalled in 2017 and 2018 when too few commissioners backed the question posed to voters. In July, commissioners voted 4-1 to hold the referendum on the current plan. Commissioner Joe Carollo was the only no to vote, citing traffic issues in the area.

Cuesta said he was satisfied with the plan to use a large circular multi-lane driveway, concealed by the base of the complex, to prevent long lines of cars from stretching out on congested downtown roads.

“This project will reconfigure arrivals and departures from this site,” Cuesta told the Miami Herald.

Voters who live within the city limits will see the following question on the ballot:

Should the Miami charter be amended authorizing the city to amend the Hyatt lease with HRM Owner LLC, including the Knight Center property, extending to 99 years, waiving the auction and requiring, at no cost to the city:

▪ Riverside public green space;

▪ New Hyatt hotel, additional parking, convention space and apartments;

▪ Increase in annual rent to the city from $250,000 to a minimum of $2,500,000 or 2.5% of gross revenue, whichever is greater;

▪ Minimum contribution of $25,000,000 to affordable housing;

▪ Extended public river promenade?

Hyatt Downtown Miami_perspective5_02.05.2022.jpg
This rendering shows a design proposal for a revamped river walkway, part of plans to redevelop the current downtown Hyatt Regency and James L. Knight Center site with three towers, including a “supertall”. Architecture

This story was originally published October 11, 2022 4:40 p.m.

Joey Flechas covers government and public affairs for the City of Miami for the Herald, from votes at City Hall to neighborhood news. He won a Sunshine State Award for exposing a Miami Beach political candidate’s ties to an illegal campaign donation. He graduated from the University of Florida.

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EPF invests in the development of a pre-leased logistics hub in Klang https://bcn-stay.com/epf-invests-in-the-development-of-a-pre-leased-logistics-hub-in-klang/ Thu, 06 Oct 2022 04:58:17 +0000 https://bcn-stay.com/epf-invests-in-the-development-of-a-pre-leased-logistics-hub-in-klang/ EPF will invest up to 70% of the capital of the joint venture, ALP BR (Malaysia) Sdn Bhd. KUALA LUMPUR (6 Oct): The Employees Provident Fund (EPF) is investing in the development of a 100% pre-let logistics center in Bukit Raja, Klang. In a press release published Thursday, October 6, EPF announced that it had […]]]>
  • EPF will invest up to 70% of the capital of the joint venture, ALP BR (Malaysia) Sdn Bhd.

KUALA LUMPUR (6 Oct): The Employees Provident Fund (EPF) is investing in the development of a 100% pre-let logistics center in Bukit Raja, Klang.

In a press release published Thursday, October 6, EPF announced that it had entered into a shareholders’ agreement with Ally Logistic Property Co Ltd. (ALP) for the logistics hub.

EPF will invest up to 70% of the capital of the joint venture, ALP BR (Malaysia) Sdn Bhd. (ALP BR).

The remaining 30% will be held by ALP.

The fund said the hub will be located on 27 acres of freehold land and equipped with ASRS (Automated Storage and Retrieval System) technology, providing increased efficiency and flexibility for tenants.

He said the hub is expected to be completed by the third quarter of 2024, with a gross floor area of ​​over 1.8 million square feet and 100,000 pallet locations in the shared ASRS area.

Once construction is complete, ALP BR will lease the entire warehouse to ALP under a 15-year head lease agreement.

EPF Managing Director Datuk Seri Amir Hamzah Azizan said the asset will provide EPF with the opportunity to invest in top quality logistics assets and generate stable rental income for EPF and the ALP.

“Our selection of ALP as an investment partner for logistics real estate was motivated by ALP’s reputation and knowledge as a global specialist in the sector, with a high quality portfolio.

“This partnership presents a strategic opportunity for EPF to take advantage of the growth of the logistics sector, which is expected to continue to accelerate, further driven by the dynamism of the e-commerce market and the diversification of the supply chain by the main players,” he said.

Meanwhile, ALP co-founder and CEO Charlie Chang said the company sees Malaysia as a starting point to introduce its modern logistics infrastructure.

“Our partnership with EPF will be long term in Malaysia and beyond,” he said.

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