| Rooms for improvement?
Investing in buy-to-let hotel rooms is potentially a smart concept. For investors looking to widen their portfolios, prospects look good. But there is a major stumbling block to future growth in the sector – mortgage lenders are cold to this emerging market. This is hampering brokers who could be providing much needed independent advice for investors wanting a slice of this new asset class. GuestInvest – the leading provider in buy-to-let hotel rooms in the UK – was launched two years ago. It had a recent widespread advertising campaign on London Transport using the caption: 'Earn money while others sleep'. Its launch hotel was Guesthouse West in Notting Hill, followed by the Nest Hotel in Paddington and, most recently, it announced a new development in the Barbican.
JAPAN: State's witness Miyauchi gets 20 months
The Tokyo District Court sentenced Ryoji Miyauchi, former Livedoor Co. chief financial officer, to 20 months in prison Thursday for falsifying financial statements at the Internet firm but let three other executives walk away with suspended terms. The court gave Fumito Okamoto, 39, former Livedoor director and president of Livedoor Marketing Co., and Osanari Nakamura, 39, former president of Livedoor Finance Co., suspended 18-month sentences, and former Livedoor Co. representative Fumito Kumagai, 29, a suspended one-year sentence for conspiring with Miyauchi, 39, to report a business 2003 pretax profit of 5 billion yen, when the firm had actually incurred a 300 million yen loss. The ruling came just six days after Livedoor founder Takafumi Horie was given a 2 1/2-year prison term by the same court.
Fund board rejects Finance settlement offer as 'too low'
The NMI Retirement Fund board has rejected the settlement amount offered by the Department of Finance, saying it is too low.Fund board chair Juan T. Guerrero said that Finance has offered to pay the government "less than $100,000 a month" to settle the central government's outstanding debt totaling some $120 million."It is very low. .The board rejected it," said Guerrero.He said the board tried to negotiate "for the outstanding contribution so we can invest that money."As a result of a failed settlement, the Fund would continue to pursue its case against the central government for non-payment of employer contribution, which amounted to $85 million as of April 2006. Including penalties and interests, the amount would total some $120 million to $125 million."The lawsuit continues. We're not stopping the lawsuit.
Real estate notes
El Centro Su Teatro paid $1.35 million last week for a building at 215 S. Santa Fe Drive it plans to redevelop as a theater. The Latino-run nonprofit is launching a $3.5 million capital campaign to pay for renovations for the Su Teatro Cultural and Performing Arts Center, which will include large indoor and outdoor performance spaces, a smaller black- box studio theater, gallery and office space. El Centro Su Teatro received a $1.5 million loan from the city and county of Denver to help with the project. Sharing Highlands Ranch After months of legal wrangling, Keller Williams agent Brian Petrelli has won the right to use the name Highlands Ranch to market real estate over the Internet. Under terms of a recent settlement with Shea Homes, Petrelli is able to use the domain names myhighlandsranch.com, highlandsranchcondos.net, highlandsranchtownhomes.net and highlandsranchtownhouses.net.
Daniel Corp. plans second phase of $1B Atlanta project
MetLife joined Daniel Corp. and Selig Enterprises in a joint real estate venture to develop the second phase of its newest project in Atlanta called 12th & Midtown. In November, the Birmingham Business Journal reported the plans for Birmingham-based Daniel and Atlanta-based Selig to partner and build the $1.1 billion mixed-use development spanning three blocks in Atlanta. .
Promoters of Indiabulls to infuse Rs 450 cr in realty arm
MUMBAI: The promoters of Indiabulls group will invest Rs 450 crore in Indiabulls Real Estate (IREL) in one of the largest fund infusions by a promoter in the real estate industry. Promoters Sameer Gehlaut, Saurabh Mittal and Rajiv Rattan will together buy 1.5 crore warrants of Indiabulls Real Estate (IREL) at Rs 300 per share, a 15% premium to IREL's Friday closing price of Rs 260.75. Their combined stake in the company will rise to about 35% upon conversion of the warrants into equity shares. The transaction is one of the largest fund infusions by any promoter in the real estate industry. Mr Gehlaut will invest Rs 225 crore, with the other two promoters infusing Rs 112.5 crore each. IREL was formed by the demerger of the real estate business of Indiabulls Financial Services (IFSL) last year.
Stock index futures still on hold
Although the technical system is already in place, experts say China's long-anticipated Stock Index Futures is unlikely to be officially launched any time soon. They say regulators are still seeking opinions on related rules. But in the mean time, the government has released a general regulation for the trade of Index Futures. The Regulation on the Trading of Futures released by the State Council is due to take effect on April 15, paving the way for the launch of the stock index futures. The regulation rules that funds mainly invested in stocks can also buy index futures. However, all of the index futures combined should not hold more than 10 percent of the fund's total net value by the end of a day. Meanwhile, the total trading value within one day should be no more than 100 percent of its net value.
Turnarounds with takeover appeal
In a recent review of large cap defensive stocks, the contrarian investor George Putnam III finds two stocks that offer attractive takeover potential. In addition to both being in the financial services arena, both stocks also share a similar trading pattern; both have underperformed the broad market since the 2002 low but show defensive characteristics by having outperformed during the prior 2000-2002 bear phase. The editor of the Turnaround Letter explains, "Stocks that lagged during the bull market and outperformed during the last bear market look pretty attractive to us right now." Fifth Third Bank (NASDAQ: FITB), he notes, is a $100 billion diversified financial services business operating from Cincinnati, Ohio. Putnam explains, "Fifth Third is generally held in high regard, but results faltered in 2004 and have yet to fully recover." He notes that last year's inverted yield curve raised borrowing costs and hurt profitability.
Hotel trust looks at cashing in on strong real estate prices
Vancouver-based Canadian Hotel Income Properties Real Estate Investment Trust is joining a growing list of hotel properties testing the hot real estate market. Canadian Hotel said Wednesday it has struck an independent committee to advise its board on ways to increase value to unit-holders -- including the possible sale of properties. Legacy Hotels Real Estate Investment Trust, which holds several landmark Fairmont Hotel properties such as the Hotel Vancouver and Victoria's Empress in its portfolio, put itself in play March 1. .
Ten Stock Picks From Barbara Marcin of Gamco Investors
Forbes Investor Advisory Institute hosted a Financial Roundtable on March 22, 2007 with a number of leading investment professionals. From the Roundtable, hosted by Wally Forbes, here's an excerpt from Barbara Marcin (pictured), a portfolio manager at Gamco Investors, Inc. where she manages the Gabelli Blue Chip Value Fund and the Gabelli Dividend and Income Fund: ............... I think there's a lot of value in general in the market. Just before coming here I looked at the largest 20 stocks in the S&P 500 just as another check. They're selling at a multiple of 13.5 on this year's earnings. And they're wonderful companies with good balance sheets and the cash flow and earnings to seed growth faster in growing areas overseas. So, I guess I could name a lot of stocks but I'll pick just a few.
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