Property

Capital Calls: Chinese hacking, Tencent

19 Jul 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Capital Calls: Bank of America, EU carbon prices

14 Jul 2021

Concise views on global finance: the U.S. lender beat earnings forecasts, despite a less-than-stellar performance in the activities that boosted rivals; and European Commission reforms should push up the cost of greenhouse gas emissions.

Fortress’ vows to Morrisons look flimsy and finite

6 Jul 2021

A consortium led by the private equity group secured the British grocer’s support for an $8.7 bln takeover by pledging to treat suppliers well and not sell real estate. Yet its promises are not legally binding and expire in a year. The target’s board should have pushed for more.

Shared-office buyout would need pandemic booster

29 Jun 2021

Private equity firm CC Capital briefly held talks with IWG over a $6 bln takeover, Sky says. Persuading founder Mark Dixon would require a big premium. And to get a decent return, a buyer would have to believe that flexible working will boom after the crisis. That’s a bold call.

Capital Calls: Genetic gold rush

28 Jun 2021

Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 Jun 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

Blackstone returns to China office at good time

17 Jun 2021

After mooted talks fell through last year, the U.S. private equity firm is back with a $3 bln bid for Soho China. Even with a generous premium, the implied return looks decent. With real estate assets hit by the pandemic, the deal is a sensible bet on the country’s recovery.

Capital Calls: Platinum Equity, FTC chair, Tui

16 Jun 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

Selfridges $6 bln deal would be rich bet on London

11 Jun 2021

The Weston family may sell the luxury department store. At nearly 5 times sales, the mooted price looks punchy. Given the dicey prospects for physical retail and the UK capital after Brexit, buyers will have to be more interested in owning a trophy asset than financial returns.

China’s Evergrande headache turns into a migraine

9 Jun 2021

Beijing wants lenders to stress-test their exposure to the developer, Bloomberg reports, which owes over $100 bln. In focus is troubled Shengjing Bank, but its tentacles stretch into larger institutions. With traders already anxious, a misstep by either side could upend markets.

Capital Calls: Medline’s money machine

7 Jun 2021

Concise views on global finance: Blackstone and partners’ purchase of a majority stake in the $34 bln medical equipment maker could generate a big windfall for its founding family, without the clan members handing over the keys to their empire.

German landlord tie-up risks political subsidence

25 May 2021

Property giant Vonovia is offering 18 bln euros for rival Deutsche Wohnen. CEO Rolf Buch gets 160,000 apartments at book value, but the financial rewards look modest. His company may now also become a bigger target for Berlin politicians opposed to rent hikes.

Ke founder bequeaths a governance mess

20 May 2021

Zuo Hui, the chairman of China’s $60 bln answer to Zillow, has died unexpectedly at 50. A “worsening of illness” was blamed, but the company never indicated he was sick. It is an investor’s worst nightmare from signing onto the concentrated power of dual-class shares.

Capital Calls: Retail sales’ wild ride

19 May 2021

Concise views on global finance: Some U.S. retailers are reporting better growth than others, but there’s still much to play for.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.

Evergrande breakup keeps banks’ fee party going

4 May 2021

The embattled Chinese developer paid Credit Suisse, UBS and others at least $275 mln since 2016, mostly to borrow heavily. That made it the region’s fourth most lucrative investment-banking client. Now its rush to cut debt by spinning off assets enables them to rake in more fees.

Capital Calls: Christine Lagarde, Bernie Madoff

14 Apr 2021

Concise views on global finance: The European Central Bank president’s quest for inflation will take a while to achieve its goal; investor gullibility will live on after the death of the Ponzi schemer in a U.S. federal prison.

Virgin Active gives landlords a post-virus sweat

14 Apr 2021

The pandemic-hit gym group founded by Richard Branson wants lower rents. It’s using a new restructuring tool to force the issue with support from other creditors. Faced with a wave of copycats, bruised property owners’ only option is to be more selective about future tenants.

Capital Calls: LVMH surges back to full health

13 Apr 2021

Concise views on global finance: The 300 billion euro luxury conglomerate’s first-quarter sales surpass pre-Covid-19 levels.