Property

Three’s a good crowd in Indonesia telecoms deal

17 Sep 2021

Combining CK Hutchison’s local 3 unit with Ooredoo’s Indosat produces a $6 bln No. 2 player and synergies of $400 mln. If past industry tie-ups in similar markets are a guide, the Hong Kong and Qatari groups’ deal will also lift rivals’ revenue and cut their costs too.

Capital Calls: Amazon’s wage rise

14 Sep 2021

Concise views on global finance: The e-commerce giant’s salary strategy could catch on.

Evergrande sprawl is complicating credit woes

14 Sep 2021

The desperate developer is struggling to sell stakes in auto and property management units, hurt by close ties to their parent. Like many tycoons, boss Hui Ka Yan revelled in spinning off subsidiaries without ceding control. The downside of such entanglement is becoming clear.

Capital Calls: Fake crypto news summons regulation

13 Sep 2021

Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.

China’s Ke would drag heavy baggage to Hong Kong

9 Sep 2021

The New York-traded online property broker may add another stock listing. Ke is a prime target in Beijing's tech and real estate crackdown, and its founder’s death left a governance mess. Even with shares 70% off their peak, there's plenty to dissuade investors from moving in.

Evergrande’s liquidity trap gets stickier

1 Sep 2021

The distressed Chinese real estate developer doubled first-half profit by dumping assets, but delayed paying suppliers so long it’s struggling to complete projects. As property restrictions tighten, finding buyers for what’s on the books will be harder. Contagion risk is rising.

Electric-car crash is double pain for Evergrande

30 Aug 2021

The Chinese property developer’s unit saw its equity value fall 90% in four months to just $8 bln. Founder Hui Ka Yan is adept at finding money when the going gets bumpy, but EV makers rely on high values to lure fresh funds. It represents a dead end for its indebted parent too.

Evergrande’s restructuring clock starts now

20 Aug 2021

The central bank has issued a rare warning to the troubled developer to reduce debt risks, a hint to speed up non-core asset sales. That should calm investors as founder Hui Ka Yan sheds stakes in electric cars, a bank, and more. What will be left, though, looks disappointing.

Capital Calls: Walmart plays both ends of the trade

17 Aug 2021

Concise views on the global economy: The U.S. retailer expects strong sales throughout the year despite a surge in Covid-19.

Evergrande’s hometown hero is rich and generous

11 Aug 2021

S&P has downgraded the developer’s credit to junk as it struggles to raise cash. Luckily its Shenzhen city asset manager is loaded, with over $600 bln in assets. It helped local champion Huawei, and could be Evergrande’s white knight too - but only if Beijing permits.

Review: WeWork’s debacle had many enablers

6 Aug 2021

Founder Adam Neumann led the hyping-up of the office-sharing upstart, once purported to be worth nearly $50 bln. But he was far from alone. “The Cult of We” by Eliot Brown and Maureen Farrell exposes how banks, return-chasing investors and the media danced around the red flags.

German property deal rejig risks messy stalemate

6 Aug 2021

Landlord Vonovia got the nod from regulators to submit a new $23 bln offer for peer Deutsche Wohnen. Its last bid was scuppered by hedgies hoping for a higher price. A skimpy premium means it may still not get enough shares to take full control, leading to a lengthy standoff.

Asia $5 bln property deal builds on a big pivot

5 Aug 2021

Hong Kong-listed ESR is buying fellow real estate manager ARA, its second big acquisition in months. It’s a bet that asset owners want to swap their offices and shops for exposure to fast-growing logistics and data centres. The region’s expanding REIT markets will help.

Evergrande’s fire sale risks too little too late

2 Aug 2021

The indebted developer sold stakes worth $418 mln in media unit HengTen to buyers including Tencent after its shares tanked. But it is also lending HengTen $260 mln for five years, interest-free. With its stock and bonds plunging, this deal looks both stubborn and desperate.

Capital Calls: China, Disney, Banks, P&G, Fintech

30 Jul 2021

Concise views on global finance: The SEC wants more disclosures on IPO risks related to Beijing regulators; plus Scarlett Johansson’s lawsuit, EU stress tests, consumer prices, and Qatar’s investment in an African fintech.

Evergrande’s downward spiral runs off the page

30 Jul 2021

Beijing managed the market impact when it allowed quasi-state entity HNA to slide into bankruptcy. It will face more complex problems if privately-run Evergrande folds. The longer authorities wait to signal support, the more pages it will need to add to its corporate disaster playbook.

Samsung scrambles signals out of Southeast Asia

29 Jul 2021

The Galaxy maker partly blamed Vietnam’s virus resurgence for a 24% decline in mobile unit sales from the previous quarter. Low vaccination rates are thwarting the region’s recovery and raise fresh questions about just how reliable it can be for suppliers shifting out of China.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.

Hedgie stumble takes German M&A to surreal heights

26 Jul 2021

Investors sank landlord Vonovia’s $21 bln Deutsche Wohnen offer, even though they wanted it to succeed. Too many sat on the shares, hoping for a fatter payout courtesy of Berlin’s odd takeover rules. While the deal may be salvageable, it’s a clear sign of the need for reform.

Reckoning looms for Chinese developers’ loan dodge

20 Jul 2021

Forced to cut interest-bearing debt, Chinese real estate companies like Evergrande borrowed $556 bln from their suppliers last year. Now they are struggling to repay, prompting a crackdown. Offloading land assets could raise cash quickly, but developers have cause to resist.