Real Estate

Trump Jr. corrodes India’s anti-corruption efforts

23 Feb 2018

The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.

JPMorgan finally dresses the part

21 Feb 2018

Building a new New York headquarters may sound like exuberance on the part of boss Jamie Dimon. But the bank needs space and can afford it, and the city could gain too. Since JPMorgan is outperforming rivals with newer digs, it’s not just a case of keeping up with the Blankfeins.

Fannie, Freddie rear ugly heads from 10-year limbo

15 Feb 2018

The two are asking the U.S. Treasury for $4 bln after recent tax cuts dented fourth-quarter earnings. It’s not the rescue critics claim. But the awkward dependence on public coffers means next time, it could be. The politics of needed reform have only worsened since the crisis.

Google’s gray hair starts to show in Chelsea

6 Feb 2018

The search engine may be paying over $2 bln for a building in the NYC nabe. It sounds more a mark of urban elitism than creative disruption. In fact, buying prime real estate like Chelsea Market is rational – especially as new industries begin sharing the same needs as old ones.

Spain’s property party is looking bleary-eyed

6 Feb 2018

Ten years after the last crash, Spanish property deals and IPOs are seeing record volumes. A strong economy makes another bust unlikely. But investors can no longer rely on rising values to earn their crust. An interest rate jolt could bring the fiesta to an abrupt end.

Chinese hotelier delivers unexpected wakeup call

31 Jan 2018

Using a JV with TPG, China Lodging is buying two Beijing properties. It's a departure from the scary-sounding and lucrative "manachised" model. Managing and franchising – but not owning – hotels has generated big returns. The $200 mln deal led to $500 mln of lost market value.

Tricky startup key may unlock empty Chinese rooms

17 Jan 2018

Warburg Pincus expanded its shared-economy suite by leading a fresh $620 mln investment into Ziroom. The unicorn capitalizes on China's housing-boom crackdown by flipping fallow flats into rentals. It's a clever strategy, but one that will depend on lifting dismal profit margins.

Metrovacesa’s property fiesta is worth attending

11 Jan 2018

The Spanish real estate group is listing, a decade after imploding. A lack of planning permissions on its land bank warrants a discount to rival Neinor Homes’ recent IPO. Still, Metrovacesa’s domestic strength makes it a reasonable way to access a recovering Spanish market.

Wanda’s sports spinoff would help trim flab

5 Jan 2018

The Chinese conglomerate could float sports assets acquired in haste, including a sports marketer and a triathlon organiser, Reuters says. Fresh funds could help cover offshore debts. Streamlining might also persuade regulators to let the main property unit list onshore.

Xi’s tighter grip will tax Chinese real estate

26 Dec 2017

The president will sideline traditional policy shops, in particular the Ministry of Finance, and assign policymaking to opaque smaller groups. That will accelerate some reforms, in particular the long-discussed national property tax, which could squeeze the housing market.

Fannie and Freddie get band-aid instead of surgery

21 Dec 2017

The U.S. housing finance firms will be allowed to keep $3 bln in capital to absorb losses, just as their cushion was slated to go to zero. A draw on their $258 bln bailout fund could’ve also spooked markets. An overhaul is needed, but political will remains an obstacle.

Harvard fund helpfully expels star pupils

18 Dec 2017

The university endowment is spinning out its real-estate team to buyout firm Bain. Investment boss Narv Narvekar had promised to outsource more of the $37 bln portfolio. Pushing out one of the bits that’s actually turning in stellar performance is a reassuring sign he means it.

Sunac lays foundation for better balance sheet

15 Dec 2017

The highly-indebted Chinese property developer is raising $1 bln by selling discounted shares. Following a nearly 400 percent rise in the stock price, it's a good time to tap the market for cash. Given Chairman Sun Hongbin's deal history, he probably will need to do so again.

Hong Kong trophy tower flip could inspire copycats

13 Dec 2017

A Beijing firm plans to buy a $5.2 billion Hong Kong skyscraper almost entirely using debt, much of it at high rates. That might work if it can resell floors quickly. Success would fuel fresh speculation, and undermine attempts to stop state firms dabbling in overseas property.

Westfield’s $25 bln deal is mere retail therapy

12 Dec 2017

The mall empire led by Australian magnate Frank Lowy is selling itself to European property group Unibail-Rodamco. The combined structure is tangled and merger savings are scant. Given consumer shopping trends, the benefits of getting bigger may have a limited effect.

Hammerson finds cheeky cure for retail sickness

6 Dec 2017

The UK shopping centre landlord is buying smaller rival Intu for 3.4 billion pounds. The deal offers scale at a time when rents are under pressure from internet shopping and consumer demand. Intu’s lowly valuation also helps. Given the sector’s challenges, more deals are likely.

Wanda’s asset shuffle buys brief Beijing reprieve

5 Dec 2017

The indebted Chinese conglomerate is shuffling assets around, including a $470 million cash injection from its founder, as officials pressure firms to deleverage. The cash will help pay down $1.7 bln in offshore loans, but it will take more to escape the government penalty box.

WeWork labors to keep itself looking different

28 Nov 2017

The shared-office provider’s latest purchase is Meetup. The social network’s get-togethers might fill WeWork’s space at slow times. But like investing in a wave-pool firm, starting a school and opening a gym, the consistent theme is desperation to not be a real-estate firm.

Shopping mall operators turn buy signal into sell

13 Nov 2017

Brookfield’s offer to take property investor GGP private, valuing it at $22 bln, looks cheap or pessimistic. It’s probably both. The prognosis for U.S. real estate overall is poor, and in a sector where prices aren’t very transparent, a lowball bid for GGP would deepen the gloom.

Bumper listing in Vietnam sets speedy precedent

7 Nov 2017

Byzantine rules have discouraged flotations, subduing trading and deterring foreign investors. The faster, simpler structure used by Warburg Pincus for a $700 mln deal is a step towards changing that. More private equity-backed debuts could follow.