Property

Hong Kong office space gets unneeded bitcoin lift

23 Aug 2018

Cryptocurrency exchange operator BitMEX is paying a record $344 a square foot per year to rent in the world’s priciest commercial property market. Chinese capital controls and rising interest rates haven’t cooled things off. The city’s real estate is a safer bet than bitcoin.

Easing could re-inflate China’s housing bubble

9 Aug 2018

Beijing wants more active fiscal policy to buttress growth. A crackdown on shadow banking, plus mortgage curbs, have bit into frothy real estate. Unfortunately new money tends to pour into property. Recent rules might slow speculation, but a price rise looks hard to avoid.

IWG botched takeover leaves uncertain future

6 Aug 2018

The 2.2 bln pound office provider walked away from suitors having failed to agree a price. Its UK business is struggling with the fallout from Brexit, and the advance of rival WeWork poses a bigger threat. That leaves founder Mark Dixon having to borrow to invest at a risky time.

Hammerson tinkering reflects strategic impasse

24 Jul 2018

The UK landlord needed to atone for an Intu deal U-turn and its spurning of a Klepierre merger. A buyback and flogging 1.1 bln pounds of assets doesn’t quite do so. The problem is that even at their lowly valuation selling more UK assets looks hard to do.

IWG suitors need sparkle to make takeover work

18 Jul 2018

Four bidders circling the shared office provider are hoping to unlock the toppy valuation of rival WeWork. A 2.9 bln pound offer would allow founder and part-owner Mark Dixon to retire in style. But to get a decent return, buyers need leverage and a plan to ramp up earnings.

Hutchison’s $3 bln Italian buyout is a good call

3 Jul 2018

The Hong Kong conglomerate is buying Russian-backed partner Veon out of their Italian mobile JV, Wind Tre. That is a bold step amid political instability and intensifying competition. But the deal looks cheap, and could prove shrewd for new CK Hutchison boss Victor Li.

Caixabank wisely exits Spain property party early

29 Jun 2018

The lender has sold real estate assets worth 12.8 bln euros to Lone Star, at a better valuation than deals by Santander and BBVA. With prices recovering, Caixa could have got an even better outcome by waiting. Given the mess the sector has made, moving now makes more sense.

IWG profit flub takes heat out of bidding war

27 Jun 2018

The serviced-office provider said profit this year would be lower than expected because it needs to invest more and revamp drab space. The miss suggests competition from rivals like WeWork is hotting up. That will also give private equity bidders the upper hand in takeover talks.

Tangled loyalties complicate China Tower IPO

15 May 2018

The mobile mast company has filed for a Hong Kong debut that could raise $10 bln. China’s big three telecoms operators are both key clients and shareholders. New investors need to be convinced the trio won’t squeeze China Tower too hard as they try to keep their own costs down.

UK landlords apply band-aids to retail wounds

14 May 2018

Retailers like Maplin are failing and consumers deserting the high street. Yet the number of vacant shops isn’t rising. Funky leases that offer rent-free periods, or leave landlords on the hook for declining sales, are keeping doors open. That can only defer the pain for so long.

IWG suitors could use some WeWork magic

14 May 2018

The original shared-office provider has been approached by three private equity bidders. Though the shares are up 30 pct, its $3.8 bln market value is just over its 2017 revenue. Trendy upstart WeWork is valued at 20 times. Buyers will be hoping some of the sparkle will rub off.

Zoopla lures new twist on classic UK property punt

11 May 2018

Silver Lake has offered $3 bln for ZPG, owner of housing search firm Zoopla. The U.S. buyout group’s punt mirrors that of the property speculators that use the website. Leverage makes it look a better deal, but increases the risk if the market tanks.

Hong Kong mall deal feeds economic-hub dreams

9 May 2018

New World Development will invest $2.5 bln to build a sprawling retail centre by the city's remote airport. The pricey project goes beyond wooing flyers, though. It's a bold bet that troubled infrastructure initiatives to link mainland China, Hong Kong and Macau will pay off.

Higher rates are likely to calm Hong Kong property

8 May 2018

Interbank lending is getting pricier after a decade-long slump, as authorities defend the Hong Kong dollar. That implies costlier mortgages and slower growth in a frothy real estate market. This will be manageable for banks and developers, and welcome for renters and retailers.

Loans and fancy flats play Hanoi’s consumer boom

19 Apr 2018

Vietnam's Techcombank and Vinhomes could raise $3 bln through share sales. The lender looks a tad pricey in a frothy market, and doesn’t boast the impressive market lead of the top luxury developer. Still, both can excite investors in Southeast Asia’s fastest-growing economy.

Beijing sets off careless Wanda fire sale

19 Apr 2018

Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.

Hammerson’s M&A fumble leaves defences down

18 Apr 2018

The shopping centre operator ditched a 3.4 bln pound plan to buy rival Intu after shareholder pressure. The group will now sell assets and focus on posh malls, but the U-turn makes it vulnerable. The UK’s strict takeover rules give rejected suitor Klepierre a narrow way back.

Savory European fare feeds China’s M&A cravings

18 Apr 2018

Property developer Kam Fung may buy Spanish meat producer Incarlopsa, valuing it at 1.2 bln euros. Combining bricks and ham offers no clear benefits, and the price looks rich. But Beijing isn't guiding against food investing, and the Trump era forces a change of deal direction.

Hammerson has walked away from wrong deal

13 Apr 2018

The mall operator’s aversion to Klepierre’s 5 billion pound offer has driven away the suitor. The UK company is now free to pursue the takeover of a smaller rival in its home market. But the drawbacks of the plan and its clumsy defence risk irking investors.

Leaving Intu at till is first step for Hammerson

5 Apr 2018

The UK shopping centre owner is waiting to see whether rival Klépierre makes a formal bid before it commits to buying smaller Intu Properties. Shareholders have already turned down their thumbs at the Intu deal. A sweeter offer from the French group would be a better outcome.