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SNOW WON'T STOP FOREIGN INVESTMENT

SNOW WON'T STOP FOREIGN INVESTMENT
We're proud many of you are at work, showing your DC colleagues how to handle some snow. Of course, sometimes we need to hear about outside the NY bubble, thus we dropped by Savills’ Lexington Ave office for a more worldly view from CEO John Lyons.
Savills CEO John Lyons.
He tells us that foreign and sovereign wealth fund investors are speaking to the firm about opportunities to buy large, Class A office product located on US soil. A combination of their liquidity, a weak dollar, and sellers’ discounts are providing opportunities to acquire assets not typically available. These investors are still cautious, however, regarding the stability and creditworthiness of Class A tenants. Elsewhere, there’s discreet activity going on, particularly in workouts and restructurings. He tells us this bustle has Savills seeking expansion; it’s particularly looking for investment bankers to support its Asia and London offices, coordinated from New York.
Savills' Kenneth Spears and John Wilcox
Savills also is witnessing an increase in debt and equity business, so we stopped down the hall to visit Kenneth Spears and John Wilcox. Most people are in some sort of trouble these days, they say, so its Strategic Advisory Group has been helping borrowers weather the storm, whether it’s buying back mezz and senior notes, helping the client find JV partners, or assisting in loan workouts. It’s a matter of figuring out how to stay alive, they say, and lenders are willing to work with borrowers to avoid foreclosure. Expect an increase in debt maturity issues this year and next, they warn.
Related Topics: John Wilcox, Kenneth Spears