German state-owned bank HSH Nordbank AG said it may seek as much as 30 billion euros ($37.6 billion) from the German Financial Markets Stabilization fund.
The stabilization fund, known as SoFFin, and HSH Nordbank agreed on the terms today, HSH said today in an e-mailed statement. The Hamburg-based bank also may sell some assets.
Banks worldwide were forced to seek help from shareholders and governments after the September bankruptcy of Lehman Brothers Holdings Inc. froze credit markets. German state-owned bank WestLB AG of Dusseldorf has also said it would ask for debt guarantees and consider requesting capital from the state. Commerzbank said Nov. 3 it will get 8.2 billion euros of capital from the state, making it Germany's first publicly traded lender to get cash from the rescue fund.
``This decision is a clear signal: it strengthens our bank and creates sufficient flexibility for the further development of our business model,'' HSH Chief Executive Officer Dirk Jens Nonnenmacher said in the statement. ``We are working on a set of concrete measures, with which we will advance the future strategy of HSH Nordbank.''
The bank is also considering selling assets and expects that these measures will help increase the company's capital to at least 8 percent, according to the statement. ``Shareholders and management will discuss the exact arrangements over the coming weeks,'' HSH said.
By Nadja Brandt, Nov. 21, 2008, Bloomberg
Saturday, November 22, 2008
A Good Example as a Neighbor?
For several years, tenants at Manhattan House, the huge landmark white brick apartment complex at 200 East 66th Street, have complained bitterly about noisy construction, dust, debris and environmental hazards as many of the 581 apartments in five connected towers were renovated and converted to condominiums.
In the last few weeks, even as dozens of new owners closed on apartments, tenants have been considering whether to go to court again about damage they say was deliberately done by sponsors to drive tenants out.
But perhaps there is room in this tough Manhattan street brawl for a kinder, gentler approach. Property records filed last week show that in early November, Jeffrey Hollender, a businessman who travels the country lecturing business leaders on corporate responsibility and cooperation, and his wife, Sheila Hollender, paid $2.2 million for a 12th-floor two-bedroom apartment at Manhattan House.
Mr. Hollender, a native New Yorker, moved to Vermont where he developed a business, Seventh Generation, a company that describes itself as selling “authentic, safe, and environmentally responsible products for a healthy home.” The company, of which he is the president and “chief inspired protagonist,” did about $100 million in sales last year.
What matters most in business, Mr. Hollender says, is not growth, quarterly profits and shareholder value, but good corporate citizenship.
“We must ensure that the practice of corporate responsibility is spread to every sector of society,” Mr. Hollender said in a statement a few weeks ago. “Now is not the time to retreat in fear, but forge ahead to create a better and brighter world for all.”
Rafael Urquia II, a lawyer who has led a Manhattan House tenant group through several bumpy years, said of his neighbor-to-be, “There’s some irony in that.”
Mr. Hollender had speaking engagements on the West Coast last week and did not respond to several requests for comment.
Adam Leitman Bailey, a lawyer for the tenants’ group, would not comment on the conflict.
Dolly Lenz, the broker at Prudential Douglas Elliman who heads the sales effort at Manhattan House, said that the developers had been acting responsibly in carrying out the conversion.
She said she didn’t think the complaints were “anything at all unusual.” “It is the tenant-owner thing that always happens in a conversion,” she said.
By Josh Barbanel, Big Deal, New York Times
November 23, 2008
In the last few weeks, even as dozens of new owners closed on apartments, tenants have been considering whether to go to court again about damage they say was deliberately done by sponsors to drive tenants out.
But perhaps there is room in this tough Manhattan street brawl for a kinder, gentler approach. Property records filed last week show that in early November, Jeffrey Hollender, a businessman who travels the country lecturing business leaders on corporate responsibility and cooperation, and his wife, Sheila Hollender, paid $2.2 million for a 12th-floor two-bedroom apartment at Manhattan House.
Mr. Hollender, a native New Yorker, moved to Vermont where he developed a business, Seventh Generation, a company that describes itself as selling “authentic, safe, and environmentally responsible products for a healthy home.” The company, of which he is the president and “chief inspired protagonist,” did about $100 million in sales last year.
What matters most in business, Mr. Hollender says, is not growth, quarterly profits and shareholder value, but good corporate citizenship.
“We must ensure that the practice of corporate responsibility is spread to every sector of society,” Mr. Hollender said in a statement a few weeks ago. “Now is not the time to retreat in fear, but forge ahead to create a better and brighter world for all.”
Rafael Urquia II, a lawyer who has led a Manhattan House tenant group through several bumpy years, said of his neighbor-to-be, “There’s some irony in that.”
Mr. Hollender had speaking engagements on the West Coast last week and did not respond to several requests for comment.
Adam Leitman Bailey, a lawyer for the tenants’ group, would not comment on the conflict.
Dolly Lenz, the broker at Prudential Douglas Elliman who heads the sales effort at Manhattan House, said that the developers had been acting responsibly in carrying out the conversion.
She said she didn’t think the complaints were “anything at all unusual.” “It is the tenant-owner thing that always happens in a conversion,” she said.
By Josh Barbanel, Big Deal, New York Times
November 23, 2008
Tuesday, November 11, 2008
HSH Nordbank Chief Berger Resigns, CFO Takes Over
HSH Nordbank AG, the only German state bank partially owned by private investors, said Chief Executive Officer Hans Berger resigned, a week after the lender asked for government help.
The Hamburg-based bank accepted the 58 year-old CEO's offer to step down and will ask Chief Financial Officer Dirk Jens Nonnenmacher, 45, to take charge until further notice, HSH Nordbank said today in an e-mailed statement.
``The management board failed to foresee the degree of intensity and duration of the crisis and the risks for the bank's earnings that have come to light,'' Berger said in the statement. HSH Nordbank will post a ``negative result'' this year and ``I take responsibility for this,'' he added.
HSH Nordbank announced Nov. 3 that it will seek 30 billion euros ($38.6 billion) in debt guarantees from the government amid the worst financial crisis since the Great Depression.
Banks from UBS AG in Zurich to New York-based Citigroup Inc. are being forced to seek government rescues after the September bankruptcy of Lehman Brothers Holdings Inc. froze credit markets.
The bank last week reported a nine-month loss of almost 360 million euros after writedowns of 720 million euros. The lender said at the time that it may seek a capital injection from the government, as part of the country's 500 billion-euro financial industry rescue package.
Berger became HSH Nordbank's head in January 2007, having previously worked as deputy CEO. Nonnenmacher assumed the position of CFO in October 2007.
Georg Funke resigned Oct. 7 as CEO of Hypo Real Estate Holding AG after the German commercial property lender needed a 50 billion-euro bailout.
By Jann Bettinga, Nov. 10, 2008, Bloomberg
The Hamburg-based bank accepted the 58 year-old CEO's offer to step down and will ask Chief Financial Officer Dirk Jens Nonnenmacher, 45, to take charge until further notice, HSH Nordbank said today in an e-mailed statement.
``The management board failed to foresee the degree of intensity and duration of the crisis and the risks for the bank's earnings that have come to light,'' Berger said in the statement. HSH Nordbank will post a ``negative result'' this year and ``I take responsibility for this,'' he added.
HSH Nordbank announced Nov. 3 that it will seek 30 billion euros ($38.6 billion) in debt guarantees from the government amid the worst financial crisis since the Great Depression.
Banks from UBS AG in Zurich to New York-based Citigroup Inc. are being forced to seek government rescues after the September bankruptcy of Lehman Brothers Holdings Inc. froze credit markets.
The bank last week reported a nine-month loss of almost 360 million euros after writedowns of 720 million euros. The lender said at the time that it may seek a capital injection from the government, as part of the country's 500 billion-euro financial industry rescue package.
Berger became HSH Nordbank's head in January 2007, having previously worked as deputy CEO. Nonnenmacher assumed the position of CFO in October 2007.
Georg Funke resigned Oct. 7 as CEO of Hypo Real Estate Holding AG after the German commercial property lender needed a 50 billion-euro bailout.
By Jann Bettinga, Nov. 10, 2008, Bloomberg
Friday, November 07, 2008
Elliman partner buys at Manhattan House with only 10% down payment
Elliman retail partner buys at Manhattan House
By David Jones, The Real Deal, November 7, 2008
Joseph Aquino, executive vice president of retail leasing and sales at Prudential Douglas Elliman, has closed on a $1.48 million apartment at Manhattan House, the controversial Upper East Side condominium that his firm is marketing, according to sources and government records.
The deal makes Aquino one of the first buyers at the 200 East 66th Street tower, which just began closing apartment sales last month following a year-long conversion process.
“He bought when the offering was first presented,” said Faith Hope Consolo, chairman of the retail leasing and sales division at Elliman and Aquino's long-time business partner. “He’s very happy. It’s a wonderful building.” Aquino was not immediately available for comment.
The move comes at a time when several major commercial banks, including Citibank, have decided not to underwrite mortgage loans at Manhattan House or have asked buyers for down payments of up to 50 percent. JPMorgan Chase officials said they were only following guidelines set by Fannie Mae and Freddie Mac, which call for banks to lend in new condo conversions only when more than half of available units are sold.
As of this week, more than 120 apartments in the 583-unit building are under contract, and 15 deals have closed. About six apartments were sold for cash, with the remaining were financed with down payments of at least 25 percent, according to sources and city records. The building has another 190 rent-stabilized and 35 market-rate rental tenants.
Manhattan House officials have been under pressure to boost sales at the building. The sponsor, O’Connor Capital Partners, lost a December 2007 court battle to evict existing 31 market-rate tenants, which left him with fewer available units to sell. The building's Germany-based lender, HSH Nordbank was forced to assume the risk on the Manhattan House loan after a deal to syndicate it fell apart.
Aquino and his wife Suzanne closed on their apartment, unit A1107, late last month. The 1,113-square-foot, one-bedroom apartment was originally listed at $1.48 million and was taken off the market nine months ago after the Aquinos signed a contract, according to Streeteasy.com and records filed with the city Department of Finance.
City records show that JPMorgan underwrote one mortgage for $1.1 million and a second mortgage for $234,142 for the Aquino unit, leaving a down payment balance of about 10 percent.
Prudential Vice Chairman Dolly Lenz, who leads the Elliman brokerage team selling units in Manhattan House, confirmed that Aquino bought a unit at Manhattan House, but declined to offer any other details about his purchase or the overall pace of sales at the building.
“We can confirm that Mr. Aquino has bought in Manhattan House and the relationship with our buyers prohibits us from providing purchase details with the media.”
One high-profile buyer, according to published reports, is Manchester United manager Sir Alex Ferguson, who has signed a contract to buy a three-bedroom apartment at Manhattan House. Retired Miami Dolphins legend Dan Marino previously shopped around for apartments at Manhattan House. CNBC superstar Maria Bartiromo is a former Manhattan House resident, but sources say she moved out after the conversion process began in 2007.
By David Jones, The Real Deal, November 7, 2008
Joseph Aquino, executive vice president of retail leasing and sales at Prudential Douglas Elliman, has closed on a $1.48 million apartment at Manhattan House, the controversial Upper East Side condominium that his firm is marketing, according to sources and government records.
The deal makes Aquino one of the first buyers at the 200 East 66th Street tower, which just began closing apartment sales last month following a year-long conversion process.
“He bought when the offering was first presented,” said Faith Hope Consolo, chairman of the retail leasing and sales division at Elliman and Aquino's long-time business partner. “He’s very happy. It’s a wonderful building.” Aquino was not immediately available for comment.
The move comes at a time when several major commercial banks, including Citibank, have decided not to underwrite mortgage loans at Manhattan House or have asked buyers for down payments of up to 50 percent. JPMorgan Chase officials said they were only following guidelines set by Fannie Mae and Freddie Mac, which call for banks to lend in new condo conversions only when more than half of available units are sold.
As of this week, more than 120 apartments in the 583-unit building are under contract, and 15 deals have closed. About six apartments were sold for cash, with the remaining were financed with down payments of at least 25 percent, according to sources and city records. The building has another 190 rent-stabilized and 35 market-rate rental tenants.
Manhattan House officials have been under pressure to boost sales at the building. The sponsor, O’Connor Capital Partners, lost a December 2007 court battle to evict existing 31 market-rate tenants, which left him with fewer available units to sell. The building's Germany-based lender, HSH Nordbank was forced to assume the risk on the Manhattan House loan after a deal to syndicate it fell apart.
Aquino and his wife Suzanne closed on their apartment, unit A1107, late last month. The 1,113-square-foot, one-bedroom apartment was originally listed at $1.48 million and was taken off the market nine months ago after the Aquinos signed a contract, according to Streeteasy.com and records filed with the city Department of Finance.
City records show that JPMorgan underwrote one mortgage for $1.1 million and a second mortgage for $234,142 for the Aquino unit, leaving a down payment balance of about 10 percent.
Prudential Vice Chairman Dolly Lenz, who leads the Elliman brokerage team selling units in Manhattan House, confirmed that Aquino bought a unit at Manhattan House, but declined to offer any other details about his purchase or the overall pace of sales at the building.
“We can confirm that Mr. Aquino has bought in Manhattan House and the relationship with our buyers prohibits us from providing purchase details with the media.”
One high-profile buyer, according to published reports, is Manchester United manager Sir Alex Ferguson, who has signed a contract to buy a three-bedroom apartment at Manhattan House. Retired Miami Dolphins legend Dan Marino previously shopped around for apartments at Manhattan House. CNBC superstar Maria Bartiromo is a former Manhattan House resident, but sources say she moved out after the conversion process began in 2007.
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