Property

West End foray breathes life into UK property M&A

1 Jun 2020

Capco, owner of much of London’s upmarket Covent Garden district, has bought a 26% stake in $2.4 bln Shaftesbury, which manages large swathes of the trendy Soho area. A merger could follow. The risky punt shows UK landlords are starting to think about life after the pandemic.

Corona Capital: Tech diversity, CNN’s middle age

1 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: As big U.S. technology companies’ CEOs speak out about racial inequality, working from home trends could give them a chance to make a real difference; and 24/7 news network CNN feasts on Covid-19 as it turns 40.

IWG war chest burnishes anti-WeWork credentials

28 May 2020

The UK office group raised 320 mln pounds to fund acquisitions. Unlike its troubled rival, IWG has little debt and is expanding when competitors are retrenching. CEO Mark Dixon’s plan still relies on the hope that companies will need as much real estate once the lockdown ends.

Corona Capital: Hockey, HBO, Minority businesses

27 May 2020

Concise views on the pandemic’s corporate and financial fallout: A plan to get pucks back on the ice offers a sporting template. Meanwhile, HBO’s streaming service may have missed its moment, and a survey shows minority-owned businesses have mixed feelings about life after Covid.

Virus will accelerate European mall king’s decline

11 May 2020

Unibail-Rodamco is facing a cash crunch as retail tenants withhold rent. Although the crisis looks temporary, the accelerated advance of online shopping is an existential threat to the 7 bln euro Westfield owner. Disposals may be the only way to shrink its 24 bln euro debt load.

Offices will get roomier when the virus passes

4 May 2020

Conventional wisdom seems to be that after the pandemic commercial landlords will be crushed as staff stay home. But there’s a counterargument that cooped-up workers will crave interaction, employers will need to space them further apart and put an end to unhealthy hot-desking.

Ritz sale suggests some assets are virus-proof

30 Mar 2020

The high-end London hotel has been sold to an undisclosed Qatari investor for 800 million pounds. While that may not be enough for some members of the feuding family of sellers, it’s what it might have fetched pre-coronavirus. London property remains a safe haven of sorts.

Virus leaves all landlords under same leaky roof

26 Mar 2020

Blackstone, British Land and Intu’s differing financial shapes mean they can cut coronavirus-hit firms varying degrees of slack on their rent. But major tenants like Primark are refusing to pay. If everyone follows suit, landlords won’t have much in the way of comeback.

China plays chicken with property market

26 Mar 2020

Indebted developer Evergrande warned 2019 profit could drop 50%, and is slashing prices as sales tank. Rivals are in trouble, too. A real estate crash poses an unprecedented economic threat, but Beijing is maintaining curbs on speculation. That hard line risks hobbling recovery.

Virus may leave deep scars on property investors

17 Mar 2020

UK retailers such as Debenhams are asking landlords for rent reductions to deal with the outbreak. It’s hardly surprising given many are already struggling. But healthier stores are also asking for cuts or for rent to be tied to sales. The danger is these terms become permanent.

Hong Kong property tycoon builds model buyout

28 Feb 2020

Peter Woo wants to take his $19 bln Wheelock empire private using cash and shares in subsidiaries. He’s shrewd to pull the plug on the discounted, thinly traded holding company while an epidemic threatens valuations. The 52% premium is fair, and a pleasant surprise for investors.

Blackstone bets big on Boris British housing hedge

26 Feb 2020

The private equity giant is buying iQ Student Accommodation for $6 bln from Goldman Sachs in what it calls the biggest private UK real estate deal ever. It’s a play not on whether Brexit is a boom or a bust – but rather the continuing global allure of a proper English education.

Spain tweaks the odds on Blackstone’s property bet

18 Feb 2020

The left-wing coalition led by Pedro Sanchez wants to control rents on residential property. The move may depress house prices, up by one-quarter since 2014 thanks to a booming economy. Investors like Steve Schwarzman’s firm may be tempted to take some chips off the table.

UK property mess reveals bleak high street outlook

12 Feb 2020

Landlord Intu lost a third of its value after an investor shunned its capital increase. A $6.1 billion debt load makes any rescue tricky. The bigger issue, for Intu and peers, is a lack of clarity over the value of retail assets, as punters desert bricks and mortar shops.

UK property’s crisis cash call tests Boris bounce

20 Jan 2020

Intu, the struggling landlord of retailers like Zara and Primark, is looking to raise equity to fix its $6.1 bln debt. Doing so would underpin the UK’s post-election property and stock market gains. But given the scale of what Intu needs, it may instead expose their fragility.

China’s Ucommune may have missed WeWork IPO memo

9 Jan 2019

The country's biggest shared-office outfit is gearing up to go public after its U.S. peer flamed out. A $2.6 bln private valuation implies a similarly punchy 13 times estimated sales. And like WeWork, Ucommune rents from its entrenched founder. A down-round or worse probably awaits.

UK takes small step to solving fund liquidity mess

17 Dec 2019

Bank of England Governor Mark Carney wants open-ended investment vehicles to offer redemption terms that match the cost of selling assets. The hope is to avoid blowups like M&G’s frozen property fund. Yet discounts could still encourage investors to run for the exit in a crisis.

UK property investors pay for watchdog blind spot

5 Dec 2019

The Financial Conduct Authority has passed up chances to ban real-estate funds that promise daily liquidity. Now investors are stuck in a $3.2 bln M&G vehicle that has suspended dealing. Their ire should be aimed at FCA boss Andrew Bailey for tolerating such illogical products.

Hong Kong property crash may hurt less this time

15 Nov 2019

The world's least affordable housing market is heading for a steep correction. The Asian currency crisis and SARS epidemic pushed prices down 69% from 1997 to 2003. But resilient local demand, a land shortage, fewer speculators and higher down payments might pad this downturn.

Viewsroom: WeWork’s future may lie in China’s past

24 Oct 2019

Beijing-based Kr Space switched from renting out space held on long-term leases to selling services after the shared-office market crashed. Following suit may help WeWork stem losses. Also: climate change and Canada’s election. Plus: the gloomy IMF and unrest in Latin America.