Property

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.

Buyout giants get an IPO warning from Down Under

24 Oct 2019

Bain, KKR and TPG have all pulled Aussie listings this month. With the local bourse just off historic highs and new entrants doing well, the finger of blame is starting to point at private equity. Friendlier terms and healthier balance sheets are needed to keep the exits open.

China rival offers WeWork half an office blueprint

22 Oct 2019

Like Adam Neumann's company, over-expansion at Beijing-based Kr Space caused a cash crunch. It turned itself into an office manager, reducing exposure to falling occupancy rates. A similar pivot to services can’t salvage WeWork's $47 bln valuation, but it may stem losses.

Hong Kong’s miseries enter self-perpetuating cycle

14 Oct 2019

Unhappy factors like property prices, living costs, and bankruptcies are pushing a Breakingviews index to historic highs. Demonstrators’ demands are political, not financial. But mounting economic stress on ordinary people sabotages government attempts to call a truce.

Hong Kong’s politics could knock down developers

27 Sep 2019

In a sign that protests have hit real estate, officials rejected offers for a plot at the former airport as too low. Things could get worse with perception growing in Beijing that property titans are partly to blame for the unrest. It heralds policy changes that crimp earnings.

Indian office towers rise above economic slump

25 Sep 2019

A Blackstone-backed $4 bln real estate investment trust has thrived since going public in April, outpacing local blue-chips and defying a broader slowdown. Developer debt woes and creative startups will open the doors wider to this hard-to-access and higher-yielding market.

Jardine maps a road to younger Asia for its peers

20 Sep 2019

The $41-bln conglomerate turned to the southeast when it moved out of Hong Kong ahead of 1997. It thrived, betting on cars in Indonesia and milk in Vietnam. Those economies have cooled of late but long-term prospects, plus uncertainty up north, will encourage more to follow.

WeWork value shrinks even further without an IPO

17 Sep 2019

CEO Adam Neumann postponed a float, which may have pegged his office-sharing startup’s worth at $10 bln compared with a $47 bln private price tag. Yet without an IPO, parent The We Company’s growth may stall. If so, WeWork’s true value could be half even its mooted listing price.