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Show Speculative Scrambling American Real Estate Lures Foreigners ' By Carter B. Horslev Kew York Times Writer NEW YORK The Japanese are doing it. The British are doing it. The Arabs and Belgians and Germans are doing' it buying American real estate. T, I V1 Foreign of acquisitions g property in the United States, while not a new phenomenon, have recently grown so frequent that they have become the subject of intense rumor and speculative scrambling. Income-producin- ' Kuwait and Saudi Arabia in several American real estate trusts, and the Deprnna Building on Fifth Avenue was purchased last month by the Central Park South for $11 million. It will become the first American associate of the Penta Hotel chain, which is owned by a consortium of British, Italian, German and Swiss Airlines and banks. Stems From Dollar Much of the impetus behind foreign real estate investment here stems from recent devaluations of uie American dol Pahlevi Foundation, representing the Royal Family of Iran. The Lambert Brussells Real Estate Corp. and members of the Loeb Rhoades Investment Banking Co. have acquired the Barbizon-Plaz- Hotel on a lar, which prompted those with large dollar holdings to seek to convert them into more stable assets. The imposition of negati'-- interest" a commission on foreign bank deposits, togoth- -r with the halting of interest payments, by some European banks, notably in Switzerland, was an added incentive. foreign investor and American developer is often arranged through the foreign office of a large commercial bank. Overinvestors seas approach American property with philosophies considerably dilfer-en- t from those of their American counterparts, according to a number of bankers and con- sultants. The initial contact between St. At The total of scuh investments is not known, partly because the tradition' of secrecy in real estate neogtiations has been compounded by political and diplomatic discretion. g J Agree on Influx Beal "estate consultants and developers agree, however, that jnarks, francs and yen are - arriving in substantial numbers and that the influx will become greater. t. Money Expert Sees Discount Boosts In his weekly comments on credit for Salomon Bros.. Kaufman also forecast a more significant tightening of credit reins" later in September, either in the form cf another increase in reserve requirements or specific measures to slow expansion of the volume of certificates of deposit Either of the latter moves would be designed to reduce the ability of banks to make Washington Post Writer WASHINGTON Another increase in the Federal Reserve Systems discount rate - presently 7Vz is percent predicted by New York money market expert Henry Kaufman. s Balt falff fribrntr Utwincss H Houses Forte, Ltd., of England recently made an offer to acquire TraveLodge International, Inc., the motel chaim The offer follows an unsuccessful attempt by the British Land Company, Ltd., to.. buy the Uris Buildings Corp. for $125 million. The company is reported to be seeking other major acquisitions.; ijhist business loans. . Tuesday Morning, September 4, 1973 Second Section Page 33 British Active Bank Urges Hike In Prime Rate '5 British interests have been active here for a long time, having backed the Pan Am Building and the General Building and having put Mo-to- , - office buildings in Buffalo and Haven and a shopping center in Bridgeport, Con. N?. There is from money Singapore Attracts II.S. Firm vn aP 1 SINGAPORE (AP) Bache one of the largest U.S. brokerage houses, plans to open an office here soon, concentrating initially on commodi- & Co., ty transactions. local spokesman said the office would function as a Southeast' Asian base for Bache and would offer a full range of investment services, tie said Bache was sending in a commodities expert from London, E. A Cowley, to help start operation of the office, probably sometime in September. ;A He said the U.S. firm had considered setting up a branch in Singapore a few years ago but made the decision only at this stage in view of the governments recent foreign exchange relaxation which now enables Singaporans to invest in foreign securities. The old OFF1CBTIQURS Policy Unchanged Kaufman said the Feds policy of restraint has been essentially unchanged since lc le June, while the board has been trving to assess the impact o. the policy on financial markets and economic activity. There is now enough evi- dence to support a move toward greater monetary restraint, Kaufman said. The disintermediation in progress does not yet compare, in its impact on credit availability, with that ofl969-7(Disintermediation is the Service Chicago A large ChicaCHICAGO go Loop bank is calling for an immediate boost in the prime interest rate to an astounding Sun-Tim- 114 percent Exchange National Bank is urging the huge increase, it says, to break the current vicious circle of rising interest rates. The prime now stands at a historic high of 9 percent. Government pressures to keep the prime rate lower than market forces dictate are, ironically, forcing interest rates even higher, the bank contends. Artifically small and gradual hikes in the key loan charge are analogous to insufficent doses of an antibiotic. They' simply permit the disease develop an immunity to their desired effect. A substantial prime rate adjustment would be required to break the vicious circle, Exchange National says in its September issue of Economic Forecist. The Chicago bank makes its plea at a time when commecial banks are borrowing more money from the Federal Reserve System than they have in half a century to meet heavy loan demands. tr loss of funds by financial insti- tutions to other investments or other uses). Bit Record Kaufman pointed out that savings and loan associations have increased their borrowings from the Federal Home Loan Bank Board by a record $4.3 billion in the first seven months of this year. r 't ? 1 gt t 4 SALE PRICE'? SR-1- VJW9 sWU Util Motor Unit Special to The Tribune . BACCHUS Kenneth W. Swertfeger, Sandy, has been named superintendent of proc- - ess engineer-in- g .at r y , case-windin- the g M facility of Bac-chus Works of -- A Hercules, Inc. V The plant, located at Clearfield, manufactures chambers for - Swertfeger solid- York Stock Exchange broker and to share in the overall commission by receiving a 40 percent discount. The commission decision was anounced in a letter from SEC Chairman Ray Garrett Jr. to the president of the stock exchange, James J. Needham. New propellant- The dment, amen- proposed Garrett wrote, implies that a money management relationship between a nonmember borker and an institutional customer creates such an .identity of interest that transactions for the account of that customer should be 'deemed ineligible for this discount The SEC chairman said that no basis ha? been presented between for distinguishing members and nonmembers in this regard. ; 5 SPEED QUEEN COIN OPERATED WASHERS & DRYERS w loctnnicS PARKS, - Rule 95 Thb Week Only FEATURES: Reciprocals Squares and Square Root Scientific Notation Sign Change Rechargahle Battery Complete with AC Adapfer-Chory- end r warranty one-ye- ar Other models available . Luvujcou 1086 East 2100 South. 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PCA TEXAS INSTRUMENTS - Plant Taps Aide in ed, t tJlklj Stanley Peters, Mgr. jMock needs-te- stock, equioment. (801) of The Electronic 0 Let Call ; tor yoor production successful. Not an Import ELECTRONIC CALCULATOR jkS Livestock 55 Loans The Council on Environmental Quality will hold its hearings on the exploratory drill TEXAS INSTRUMENTS V - In Stock Discount Thus, says Kaufman, Substantial further increases in advances should not be unexpected if savings inflows remain meager or worse. Kaufman said that most sectors of the bond market scored strong net gains for the third consecutive time last week, with corporate bonds registering the best ' overall improvement for the year. . I e Mm t "The problem," he said, Is to convince the public that these drilling rigs are not going to be in their backyards. Theyll be so far offshore that you cant see them, the gas wld be delivered underwater, and the first consumers will see it will be when it shows up in their stoves or air conditioners, or whatever. first raised the question of Atlantic Coast drilling earlier this year, when it suggested that the Atlantic Coast offshore area could provide a lot of natural gas and oil to help alleviate East Coast energy shortages. the beer, Advertising Barth said, has featured its old world origins, but has made it clear that t is a naturalized" Dane, not an . import. ; beerAmerican "Most WASHINGTON (AP) The investors of a special 40 perin now done front is Securities and Exchange Comcent commission discount for drinking want television. of the People mission has rejected a New of firms that are not members to spend the evening viewing York Stock Exchange proposal the stock exchange. TV and drinking beer. So even to curtaf use by institutional The stock exchange contendif they wanted the imports ed the proposed rule change and could afford them, they was intended primarily to, could be falling asleep in front allow' small nonmember broof the TV by 9 p.m. if they ker dealers to transact busidrank the stronger foreign ness for their clients through a brews." January-Jul- y 'eBoEitsBoftERS I hue; In relating Tuborgs development, Robert 0. Barth, Carling's executive vice president for marketing, said that since its introduction last NoTubvember, American-mad- e org has been "exceptionally SEC Rejects Move The largest previous increases was $1.75 billion in 1969. The total amount of thu FHLBB advances to the institutions, although it tops the crunch peri- od of 1970, is still only 5.5 per- cent of savings deposits, com- pared with 7.7 percent in 1970. will be good. The U.S. Geological Survey gnmod fha beer a of foreign glamour w ithout the import cost. Tell me, whos In charge around here? Paul Feine of the American Gas Assn.s- - public relations department said the AGA booklet is part of a campaign to help convince people that drilling off the Atlantic Coasjt The booklet is designed to reassure anyone who worries that offshore drilling could turn the East Coast into another Santa Barbara oil spilL Obtains Right Rather than take the expensive route of originating a new premium brand, Carling obtained the right to produce a new under the name Tuborg, a Danish beer in European and world export Id opinion by April, 1974, One group, the America Gas Assn., (AGA), has already started its program with a booklet called Action in the Atlantic. ing, Carling executives decid(Copyright) 0. , , - YORK question of "What's in a name? can be answered by the Carling Brewing Co. with one word: "Profits." Last year, with sales slump- well-know- By Hobart Rowvn Recent investments run the real estate gamut. The Japanese-have bought Fifth Avenue Office buildings. A Park Avenue resorts in hotel, Hawaii and California, and acreage in Colorado and Florida They have also entered join ventures with several American groups. tit. New York Times Writer NEW ing question early next month, and is supposed to issue an Knight News Wire For those who like to know what to expect next in the energy game, get ready for a sizeable campaign to promote oil and natural gas drilling off the Atlantic Coast. ed they needed premium" beer to capitalize on the trend of sales into slightly higher priced brands. -. V Profits Spur Gas Group Pushes Brand For Atlantic Drilling Beer Firm Main Office: '35 South Main Sheet Other offices in Bountiful, Granger, Murray, Orem and Trolley Square. |