In the U.S.:
- November Markit flash manufacturing PMI was 52.2 versus October’s reading of 51.3. Production, new orders and employment all gained.
Terreno Realty Corporation (TRNO) acquired an industrial property in Seattle, Washington on for a purchase price of approximately $2.9M. The 0.9-acre improved land parcel is adjacent to Terreno Realty Corporation’s property at 53 South Dawson and is adjacent to Seattle’s Port and SoDo District.
- In another week of conflicting reports over the state of the trade war negotiations, it seems both sides are back on track to negotiate a phase one deal. However, several issues still remain such as China’s insistence that some of the existing tariffs be removed and the US stance demanding specific agricultural purchase commitments from China.
- November flash manufacturing PMI edged up slightly to 48.6 versus October’s 48.4 reading. This marked the seventh straight month below 50 and indicated the strong possibility that Q4 GDP is contracting.
CDL Hospitality Plans to Invest S$800M in Two Singapore Hotels. The funds will be used for the proposed redevelopment of Novotel Singapore Clarke Quay on the Liang Court site and the purchase of the W Singapore hotel in Sentosa Cove.
- November Eurozone manufacturing PMI rose to a 3-month high of 46.6 versus October’s 45.9 reading. Although slightly better, the reading remains solidly in contraction as trade woes continue to affect the Eurozone economy.
- ECB President Christine Lagarde’s first keynote speech on policy was largely in line with her predecessor Mario Draghi. Ms. Lagarde pointed out that the ECB’s accommodative policy has been a key driver of the domestic demand recovery and emphasized that other accommodative policies may speed up the process with less risk.
After weeks of speculation and rumors in the press, London property specialist Capital & Counties Plc. (Capco) announced that it had agreed to sell the majority of its interests at Earls Court for £425 mn to a JV between Dutch pension advisor APG and real estate advisor Delancey. Since announcing plans last summer to demerge its Earls Court and Covent Garden estates, Capco has simultaneously been exploring a sale of Earls Court to monetize its investment and focus it activities around its unique and highly desirable interests at Covent Garden in the heart of London’s West End. While the price represents an approximately 16% discount to June 30,2019 book value, the discount is less than what many expected and less than what appears to be reflected in Capco’s current share price when comparing it to its closest peer in the public markets, Shaftesbury Plc.
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.