Real Estate

China property IPOs face a problem of plenty

12 Nov 2020

Developers from Sunac to Evergrande are listing management units in Hong Kong, offering exposure to real estate without the usual policy risk. That only goes so far to justify towering valuations as the scarcity value of these asset-light, fast-growth businesses is fading fast.

Corona Capital: Lyft, Vaccine minefield, Peru

11 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: The U.S. ride-hailing company is tempted by food delivery; Pfizer could face high demand for its coronavirus vaccine; and Peru gets another leadership shuffle just as Covid-19 cases soar.

Corona Capital: Salvatore Ferragamo

10 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.

Activists shove Unibail towards chastening Plan B

10 Nov 2020

French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.

Corona Capital: Warren Buffett, Burger boost

9 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Rising share prices take the sting out of Berkshire Hathaway’s Covid-19 profit hit; and McDonald’s reports a good quarter for American nugget-lovers.

Corona Capital: Cars, Kalashnikovs, Houses

6 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Japanese carmakers put their feet down thanks to China’s bounceback; Russia’s Kalashnikov gets a new owner; and rich-country housing markets look surprisingly cheery.

Corona Capital: Ferrari, E-commerce, Fox

3 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Ferrari leaves its auto rivals in the dust; Russia’s online marketplace Ozon heads for a New York IPO; and Fox avoids the virus-induced advertising drought.

Corona Capital: Friendly’s and Dunkin’ Donuts

2 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Two Massachusetts casual-dining chains change hands, one in bankruptcy. Friendly's found Covid-19 even more unfriendly than did Dunkin' Brands.

Homes deal offers rare price higher than pre-Covid

19 Oct 2020

Ares and Pretium want to buy U.S. residential landlord Front Yard at a higher value than a pre-pandemic deal that was terminated. Housing looks surprisingly healthy despite economic woes. It helps that typical consumers – and investors – are hurting less than previously assumed.

Unibail activist riot leaves leaky roof exposed

15 Oct 2020

Telecom mogul Xavier Niel and the mall operator’s former CEO want to block its $4 bln rights issue. Their plan to sell the U.S. business instead would save money but is trickier if Covid-19 persists. Doubling down on Europe also leaves the group more at risk from online shopping.

Corona Capital: Black Friday, JPMorgan’s new tower

14 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.

Corona Capital: NBA, Polish e-commerce, Tesco

12 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: A major basketball bake-off fails to pull in the online crowds; Poland’s biggest e-commerce company flies from the shelves; and UK grocer Tesco wrestles with supply chain problems.

Canary Wharf’s Plan B: turn workers into dwellers

9 Oct 2020

Four-fifths of the 120,000 workers usually based in London’s financial hub are at home, and tenants like Morgan Stanley may jump ship. Its owners plan to turn a third of the estate into residential apartments. Even if they can pull it off, there could be bumps in the road.

Corona Capital: Bankers, Virus vices, Student digs

8 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Japan’s Mizuho tries to get its employees to take it easy; smokers and gamblers struggle to kick the habit during lockdown; UK landlord Unite Group finds even student property is not immune to Covid-19.

Evergrande’s debt scares creditors into submission

7 Oct 2020

The stressed property giant persuaded investors owed nearly $15 bln to convert their obligations to unlisted shares. Details are scant, but it’s another miraculous escape for founder Hui Ka Yan. The deal looks crummy, and it highlights how real estate has trapped policymakers.

Corona Capital: U.S. jobs, Real estate

2 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Americans slowly get back to work; New York City real estate sales fly to Florida.

Corona Capital: Vaccines, Olive Garden, Oil

24 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Vaccine concerns are bad for the economy; cravings for never-ending pasta bowls return; and oil practitioners tell sad truths.

U.S. mortgage deals build on shaky foundations

23 Sep 2020

Public markets are luring two big mortgage firms as low rates and resilient house prices send loan demand to record levels. But 2020’s pandemic-skewed market is wacky, risky and unsustainable. Taking more share from banks could justify investor hype, though is hardly guaranteed.

Unibail’s self-bailout highlights property dilemma

17 Sep 2020

The shopping mall owner plans to raise $4 bln from investors and flog buildings worth nearly $5 bln. Bolstering its balance sheet protects its credit rating even if real estate values fall further. But the rescue depends on buyers and shareholders taking a less gloomy view.

China Evergrande stands to win a price war

16 Sep 2020

Unwritten credit rules circulated by Beijing have prompted the $29 bln property developer to offer discounts of 30% or more. That will eat further into profit and make it harder to cut debt. The aggressive gambit by Chairman Hui Ka Yan may, however, cripple the competition.