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Pensions up REIT allocation; Cominar goes private in C$5.7B deal

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Pensions up REIT allocation; Cominar goes private in C$5.7B deal

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

The largest 200 U.S. retirement plans' allocation to real estate investment trusts has outpaced investments in private real estate.

REIT allocation grew 22% to $34.2 billion, while investment into private real assets grew 13.4% in the year ended Sept. 30, 2021, according to Nareit, which cited the 2022 Pensions & Investments annual survey of pension plans.

Nareit is the U.S.-based trade association for REITs and publicly traded real estate companies.

REITs have generated returns that are on average around 2 percentage points higher per year than private real estate in more than two decades, Nareit said. REITs are also leading in environmental, social and governance performance metrics while also actively driving innovation in commercial real estate.

Company trades

* Cominar Real Estate Investment Trust completed its C$5.7 billion delisting from the Toronto Stock Exchange. A consortium led by a Canderel Management Inc. affiliate purchased Cominar's entire issued and outstanding units or C$11.75 apiece in cash.

* Cedar Realty Trust Inc. agreed to sell the company and its remaining assets to Wheeler Real Estate Investment Trust Inc. at a valuation of $291.3 million. Cedar will sell a portfolio of 33 grocery-anchored shopping centers to a joint venture between a fund managed by DRA Advisors LLC and KPR Centers for $840.0 million.

* Seritage Growth Properties' board started a process to review a broad range of strategic alternatives to enhance shareholder value. Barclays was tapped to act as financial adviser to the special committee overseeing the process.

Hotel trades

* Host Hotels & Resorts Inc. is selling its 1,780-room Sheraton New York Times Square hotel in New York City for $356 million, Green Street's Real Estate Alert reported. MCR Investors LLC will buy the 51-story property at 811 Seventh Ave.

* Xenia Hotels & Resorts Inc. will buy the 14-story W Nashville hotel in Nashville, Tenn., for $328.7 million. The hotel has 346 rooms and was opened in October 2021.

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