Upcoming AWS Coverage on CBRE Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 2, 2017 / Active Wall St. blog coverage looks at the headline from Paramount Group, Inc., (NYSE: PGRE) as the Company announced on February 01, 2017, an agreement to sell Waterview, a 24-story, 647,000 square foot, Class A office building in Rosslyn, Virginia for $460 million. Register with us now for your free membership and blog access at:

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One of Paramount Group's competitors within the Property Management space, CBRE Group, Inc. (NYSE: CBG), announced on January 11, 2017, that it will release its Q4 2016 financial results at approximately 6:59 a.m. ET on Friday, February 10, 2017. Management will hold a conference call to discuss these results at 8:30 a.m. ET on that same day. AWS will be initiating a research report on CBRE Group in the coming days.

Today, AWS is promoting its blog coverage on PGRE; touching on CBG. Get all of our free blog coverage and more by clicking on the links below:

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The Deal

Paramount pointed out that the Waterview property is 99% leased, and all of the office space is leased to a single tenant, whose lease expires in January 2028. The Company stated that it will report a financial statement gain of approximately $110 million and a tax gain of approximately $393 million, which will be deferred as part of a like-kind exchange for the acquisition of One Front Street. The transaction is expected to close in Q2 2017, subject to customary closing conditions.

"The sale of Waterview further advances our efforts to enhance shareholder value," stated Albert Behler, Chairman, Chief Executive Officer and President of Paramount Group, "by recycling the capital from this stabilized asset into our recent, more accretive, One Front Street acquisition, we believe shareholders will benefit from our team's ability to add value by capitalizing on expiring leases that are 20% below market."

Making Strategic Moves

Paramount has been active recently making strategic deals in order to strengthen its balance sheet and also acquiring new assets.

On January 24, 2017, GIC, Singapore's sovereign wealth fund, and Paramount Group formed a 95%/5% joint venture and acquired 60 Wall Street for $1.04 billion, or approximately $640 per square foot. In connection with the acquisition, the joint venture completed a $575 million financing of the property. 60 Wall Street is a 47-story, 1.6 million square foot, LEED Silver, Class A office tower in the Financial District of Downtown Manhattan. The property is 100% leased to, and serves as the US Headquarters of Deutsche Bank. Prior to the acquisition, Paramount Group managed and owned approximately 5% of the property through its ownership in certain private equity funds. Subsequent to the acquisition, Paramount Group will maintain its 5% ownership interest and continue to serve as the property's manager.

On January 20, 2017, Paramount Group completed a $975 million refinancing of One Market Plaza, a property with 1.6 million square feet of Class A office and retail space located in the South Financial District of San Francisco.

Paramount Group stated that the new seven-year interest-only loan matures in January 2024 and has a fixed rate of 4.03%. The net proceeds from the refinancing were used to repay the existing $873 million loan that bears interest at 6.12% that was scheduled to mature in December 2019. The Company's 49% share of net proceeds, after the repayment of the existing loan, closing costs and required reserves, was approximately $23 million.

"We took advantage of a robust credit market environment to further strengthen our balance sheet," said Wilbur Paes, Executive Vice President, Chief Financial Officer, and Treasurer of Paramount Group, "this refinancing allows us to lock in an attractive rate, extend maturities, and is another testament to the markets' confidence in our Class A portfolio."

Stock Performance

At the closing bell, on Wednesday, February 01, 2017, Paramount Group's stock fell 1.44%, ending the trading session at $16.45. A total volume of 1.04 million shares were traded at the end of the day, which was higher than the 3-month average volume of 858.30 thousand shares. In the last month and previous three months, shares of the Company have advanced 2.88% and 6.43%, respectively. Moreover, the stock gained 2.88% since the start of the year. The Company's shares have a dividend yield of 2.31%. At Wednesday's closing price, the stock's net capitalization stands at $3.64 billion.

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SOURCE: Active Wall Street