Real Estate

More AWOL China bosses flag unique key-man risks

24 August 2018

Casino operator Landing has lost half its market value amid news that its chairman is unreachable. It’s the second such case in three days. Overdependence on top executives continues to plague many Chinese companies, and they’re exposed to hazards uncommon in other markets.

Hong Kong office space gets unneeded bitcoin lift

23 August 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 August 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.

Sale can’t erase mark of 666 from Jared Kushner

6 August 2018

Selling the troubled New York skyscraper lifts financial pressure off the family of Donald Trump’s son-in-law but not the stain. The president’s young adviser layered conflict-of-interest concerns on an inflated investment. Buyer Brookfield brings adult supervision to the plot.

Brookfield pays dearly to enter the home

1 August 2018

The $16 bln infrastructure investor is making a detour to pick up Canada’s Enercare. A renter of residential water heaters and air-conditioning systems sits oddly inside an owner of utilities, roads and railways. Its steady growth is valuable, but a 53 pct premium is extravagant.

Activists finagle deal in toppy real-estate market

31 July 2018

Brookfield is buying Forest City, owner of a hodge-podge of assets including the New York Times building, for $11.4 bln. The 27 pct premium allows Starboard to exit with a profit. Rising rates and other heady markers mean the deal may signal a peak in property values, too.

IWG suitors need sparkle to make takeover work

18 July 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 July 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.

IWG profit flub takes heat out of bidding war

27 June 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.

College dorms play host to financial keg party

25 June 2018

Greystar is paying a reasonable-sounding $3.1 bln for Education Realty’s student-bunking business. The astronomical cost of college is prompting changes to the market, though, such as kids telecommuting to class. It could deprive university real estate of its youthful glow.

UK estate agents wounded by taxes and technology

25 June 2018

Britain’s largest real estate broker, Countrywide, has become the latest to warn earnings will fall as transactions dwindle. Higher taxes have hit amateur landlords while online property companies are squeezing fees. Given high fixed costs, agents will struggle to plug the gap.

Zell has financial reason to speak better of women

15 June 2018

The real estate mogul made tone deaf comments about women at a conference – not for the first time. Sam Zell has a history of speaking off the cuff, offset by a reputation as a skillful asset trader. His female-run REIT, an outperformer, shows why he ought to rein in his speech.

SoftBank and WeWork co-create rocketing valuation

14 June 2018

The giant Vision Fund may inject more cash into the loss-making shared-office provider at nearly double its previous $20 bln worth. WeWork is growing fast, but that was already priced in. One test is whether SoftBank puts a lot of money where its mouth is, or only a little.

CKI’s $10 bln bid can snare Australian prey

13 June 2018

The Hong Kong giant is circling Australia's top gas pipeline firm. A 33 pct premium ought to satisfy APA’s board, especially as tougher rules bite. The odds are good for Victor Li’s first big deal since he took over from father Li Ka-shing at parent company CK Hutchison.

USG pokes hole in U.S.-Europe trade drywall

11 June 2018

The building products outfit agreed to a $6.1 bln takeover by German rival Knauf. It did well to get a 5 pct top-up given 31 pct owner Warren Buffett was already on board. In the wake of a rancorous G7 it shows companies can still transact when politicians keep out of the way.

Blackstone relives Hilton on a boutique scale

21 May 2018

The buyout firm offered $3.7 bln for hotel operator LaSalle, wading into a bidding war just after it sold its remaining stake in Hilton. That earlier deal took more than a decade to close out. With riskier properties and a higher valuation, this new foray will be tougher.

Hadas: WeWork blather is call to rework accounting

16 May 2018

The office-rental outfit’s “community-adjusted EBITDA” is ridiculous, but it gets at a real problem: valuing fast-growing firms. Standard measures would benefit investors more than company-defined ones. Accountants can help – once they learn to deal with the post-factory economy.

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.

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.

California helps Paris send solar message

11 May 2018

The most populous U.S. state is making panels mandatory on most homes built after 2020. It will cut emissions only a little. But the clean-energy focus will push other states along. Fossil-fuel producers will have fewer excuses to ignore the renewable writing on the wall, too.