In the U.S.:
- As expected, the Fed held the benchmark rate at 1.50% to 1.75%. The policy statement was nearly unchanged, reiterating that job gains have been solid, and that inflation is still near target.
The FTC has granted Equinix, Inc. (EQIX) antitrust clearance of its proposed purchase of Packet. Equinix can now focus on integrating Packet’s platforms to accelerate the development and delivery of its interconnected edge services.
- The number of coronavirus cases now exceeds the SARS 02-03 epidemic at near 10,000 cases internationally. The WHO declared the virus a “public health emergency of international concern” as quarantine measures increased across the globe to try and curb the spread of the virus.
- The decision to release the radioactive water from the damaged Fukushima nuclear plant into the ocean took a step forward this week as a government panel roughly accepted the draft proposal. Local fishermen and surrounding territories fear the release will cause health problems and hurt both the fishing and farm industries in the area.
Singapore REITs with exposure to China have taken a hit as the coronavirus shutters businesses and travel cancellations soar. Jefferies reported that hotel operators Ascott Residence Trust and CDL Hospitality Trust were expecting cancellations to grow due to the travel ban on Chinese travelers, which make up approx. 19% of visitor travel YTD.
- The UK formally leaves the EU on Friday opening a new chapter in the UK’s history. For the time being, most rules will stay the same as negotiations continue between the UK and EU member nations.
- The BOE left policy rates unchanged at 0.75% as post Brexit uncertainty looms. The central bank stated that signs of global stabilization led the committee to hold off on any additional stimulus.
London office property specialist Derwent London announced this week that it was under contract to acquire a 53,750 sf office building in Brixton for £38 mn or £710/sf. While a relatively small transaction, the deal is notable in that Brixton, which lies to the south of Central London, represents a new submarket entry for Derwent. Rents in Brixton are well below those in London’s West End, while offering easy access into the West End via public transit including the Victoria Line in London’s Underground transit system. As is typical for Derwent acquisitions, the property offers excellent redevelopment opportunities over time with increased density a possibility and low in-place rents that have significant upside with a redevelopment.
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.