In the U.S.:
- President Donald Trump signed the Republican tax cut bill into law, marking the first big legislative win of his presidency. In addition, Congress approved a stopgap measure that would avoid a government shutdown and will maintain spending through January 19th.
CyrusOne, Inc. (CONE) announced the expansion to Atlanta with plans for a new 3 data center 44-Acre Campus, which will produce over 50Megawatts of critical power. Construction will begin in 1Q2018.
- Bloomberg, citing people familiar with the matter, stated that China was ready to support UN sanctions that sharply curtailed fuel shipments to North Korea. Deliveries of petroleum products such as diesel and kerosene would be cut by almost 90%.
- The BoJ kept monetary policies unchanged, leaving the short term rates at -0.1%. BoJ governor Haruhiko Kuroda stated that the BoJ would continue easing measures in light of weak inflation.
U.S. data center group Equinix Inc. (EQIX) announced that it was buying Australian data center company Metronode from the Ontario Teachers’ Pension Plan in an all-cash deal worth A$1.035B. Metronode operates internet and communications infrastructure facilities throughout Australia for some of the country’s largest corporations, government agencies, telecommunications and IT service providers.
- The separatists won the majority of seats in the Catalan election which was seen as a surprise given polls had predicted a closer run contest. The result marked a setback for Spanish PM Rajoy, with the anti-independence parties set to take just 57 of the 135 seat assembly. Madrid will continue to exert control as it has since the Article 155 process was implemented after the independence referendum.
Vonovia S.E., Germany’s largest listed residential real estate company, this week made an all cash offer of €29.05/sh for BUWOG A.G. BUWOG is an Austrian listed residential company with approximately 49% of its assets in Austria and the remainder in Germany. BUWOG’s has a gross asset value (GAV) of approximately €4.6M. If the transaction is completed, the combined GAV of the two companies would be approximately €36.2B. The offer represents an 18.1% premium to BUWOG’s last closing price prior to the announcement and an approximately 23.8% premium to its last reported EPRA NAV of €23.46/sh. BUWOG’s board has expressed full support of the transaction with payment and settlement of the transaction expected to occur sometime in the first half of 2018.
The views expressed in this update are as of the date of this blog entry. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The adviser disclaims any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies’ securities should not be regarded as investment recommendations or indicative of the Adelante products, strategies, or portfolios.