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Glencore $GLEN, Qatar Acquire 19.5% Stake in Russia's Oil Giant Rosneft for €10.2B

Glencore $GLEN, Qatar Acquire 19.5% Stake in Russia's Oil Giant Rosneft for €10.2B

Glencore agreed to sell Glencore Rail (GRail) to Connecticut-based railroad operator Genesee & Wyoming’s (G&W) (NYSE: GWR) Australian subsidiary for A$1.14 billion (US$874 million). In April, Glencore agreed to sell a 40% equity interest in Glencore Agri to Canada Pension Plan Investment Board (CPPIB) for US$2.5 billion in cash. The deal valued 100% of the equity in Glencore Agri at US$6.25 billion. Photo: Ivan Glasenberg, CEO of Glencore.]]>

Deripaska's Rusal Sells AlPart of Jamaica to China's Jiuquan for $299M

Deripaska's Rusal Sells AlPart of Jamaica to China's Jiuquan for $299M

Forbes, and currently has a net worth valued at $3.3 billion. Rusal is the world’s second largest aluminum company. It was the largest until overtaken by China Hongqiao Group in 2015. UC Rusal accounts for nearly 9% of the world’s primary aluminum output and 9% of the world’s alumina production. The United Company Rusal was formed through the merger of Rusal, Sual, and the alumina assets of Swiss-based Glencore, completed in March 2007. The company operates in 19 countries over five continents and employs over 72,000 people. UC Rusal is incorporated in Jersey, where it has its financial center, and is headquartered in Moscow. Alpart is a large production complex in Jamaica, which uses its own bauxite mines to feed alumina production. Before the shut-down of Alpart from 2009 to 2015, annual production capacity of the complex was 1.65 million tonnes of cell-grade alumina and 4.9 million tonnes of bauxite. Rusal acquired a 65% stake in Alpart in 2007 as part of its merger with the alumina assets of Glencore, and acquired the remaining 35% stake in 2011. “We are very pleased with the achieved agreement,” said Rusal’s CEO Vladislav Soloviev. “The deal is of financial interest for us, in that it does not affect the vertically integrated production chain of the company. Eusal’s production facilities both in Russia and abroad fully satisfy the company’s alumina demand while the company-owned bauxite resources ensure our plants’ performance for the next 100 years and more. The deal also strengthens our relationship with our Chinese partners, opening new opportunities for the future co-operation in other areas.” The deal was undertaken under Rusal’s assets optimization and debt ratio reduction program, the company said. The deal has been approved by Rusal’s board of directors. The deal is also subject to approvals by the Government of Jamaica and a number of state bodies in China. After the closing, Jiuquan will become one of the top 10 producers of aluminum in China. Jiuquan Iron & Steel Co. was established in 1958 as a large-scale iron and steel producer, the first one strategically located in the North-West of China. Its products include wires and rods, rolled steel plates, and bars, with a production capacity of 8 million tons of crude and rolled steel annually. The company also has other business divisions including aluminum, electricity, and engineering technical services. Photo: Oleg Deripaska, Chairman and President of UC Rusal.]]>

Hines Global REIT Hires Lazard, Eying Sale of $5.5B Portfolio

Hines Global REIT Hires Lazard, Eying Sale of $5.5B Portfolio

Hines is said to have hired Lazard to explore a divestment of its $5.5 billion Hines Global REIT Inc. property portfolio, Bloomberg reported. Hines Global REIT is a diversified real estate investment trust sponsored by Hines that, as of December 31, 2015, held a portfolio of 43 high-quality core assets that is 96% occupied and valued at approximately $5.5 billion, the company said in a recent statement. “We are extremely pleased with the continued strong performance of the company’s high-quality and well-diversified portfolio,” said Sherri Schugart, the company’s president and CEO. Hines Global REIT’s portfolio — 62% located in the United States, with the remainder in Great Britain, Germany, France, Australia, Poland and Russia – consists of 16.9 million square feet of office, retail, industrial, mixed-use and multifamily assets as of December 31, 2015, the company stated. “We are evaluating various strategic alternatives to execute a liquidity event (i.e., a sale of assets or our portfolio, a merger, a listing of our shares on a national securities exchange, or another similar transaction),” the company said in a recent portfolio update, although there is no set timetable for the execution of such an event. “As the company gets closer to consideration of a potential liquidity event, management and the board of directors thought it appropriate to include an estimate of the closing costs in determining the new estimated NAV per share,” Schugart added. On March 3, 2016, Hines Global REIT announced a new estimated net asset value (NAV) per share of $10.241 as of December 31, 2015, a net increase of approximately 8.5% over its last valuation of $9.44 per share as of December 31, 2014. Schugart attributed the bulk of the share price increase to a 9.9% rise in the value of the company’s real estate holdings during 2015, offset by reductions to reflect the continued devaluation of the Euro, Australian dollar and British pound against the U.S. dollar as well as estimated closing costs related to a potential future liquidity event. The company engaged Cushman & Wakefield to provide appraised values of its domestic real estate property investments, and Knight Frank to provide appraised values of its international real estate investments. Hines also engaged Jones Lang LaSalle (JLL) to perform valuations of its Global REIT’s debt obligations. Among the Global REIT’s top 10 tenants and properties are Morgan Stanley’s 17-story office building at 25 Cabot Square in London’s Canary Wharf, designed by Skidmore, Owings & Merrill, and Gap Inc.’s Old Navy headquarters at 550 Terry Francois Blvd. in San Francisco. HGR_Q4-15_PortfolioUpdateHines is a privately owned global real estate investment firm founded in 1957 with a presence in 199 cities in 19 countries. The firm was founded by Gerald D. Hines, and today is run by his son, Jeffrey D. Hines. Hines is the sponsor of REIT and business development company (BDC) investment products sold through its broker/dealer affiliate, Hines Securities. The firm has $87 billion of assets under management, including $43 billion for which Hines provides fiduciary investment management services, and $44 billion for which Hines provides third-party property-level services. The firm has 104 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,100 properties, totaling over 346 million square feet. The firm’s current property and asset management portfolio includes 531 properties, representing over 186 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world.]]>