Real Estate

Corona Capital: Vaccines, Olive Garden, Oil

24 September 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 September 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 September 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 September 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.

Corona Capital: Amazon, NYC and Trump

14 September 2020

Concise views on the pandemic’s corporate and financial fallout: Amazon’s hiring boom highlights its weakness, and U.S. President Donald Trump could throw New York City a bone.

E-commerce is a life raft for sinking real estate

10 September 2020

The surge in digital sales from the likes of Walmart, Target and Amazon is driving up demand for warehouses. No wonder mall owner Simon is after the likes of J.C. Penney. Creating a fall back plan to turn malls into industrial space with higher rents has a decent payoff.

Apollo and Abu Dhabi scratch each other’s backs

2 September 2020

A consortium led by the private equity titan has struck a $2.7 billion deal for a 49% stake in a real estate company held by the emirate’s energy group ADNOC. Apollo-linked insurers snap up long-term secure assets. Abu Dhabi gets a cash injection from selling the family silver.

Home working will delay not kill office recovery

26 August 2020

Some big firms have declared remote working to be new normal. Such fervour is making big city property a buyers’ market, with shorter and cheaper leases and less new construction. But there are still good reasons to work in offices – more spacious ones than in pre-Covid days.

Hong Kong skyscrapers will scale new heights again

26 August 2020

Take the world’s priciest offices. Add the highest vacancy rate in 14 years, geopolitical tension, a weak economy and a broad work-from-home movement. It’s no wonder owners of IFC and other towers have suffered market slumps. There are good reasons, however, to expect a rebound.

China Evergrande pawns the family silver

17 August 2020

The country’s largest developer is again taking a quirky approach to a trend. As rivals float property management arms, Evergrande sold 28% of its own to 14 investors at a $10.7 bln valuation. They have a put option if there’s no IPO, but boss Hui Ka Yan now has options too.

New York City real estate bites

13 August 2020

Sure, Facebook just signed a lease in Manhattan but other businesses are scrambling to renegotiate contracts and residential vacancies have hit records. The Big Apple has proved incredibly resilient. But investors think New York is in for it. This time they could be right.

Realtor IPO overcharges for Chinese housing

13 August 2020

Tencent-backed KE’s U.S. debut could value it at $23 bln. Home sales in China are recovering on easier credit, and the company is growing fast. It’s an online play on a sector that has consistently proven sceptics wrong. The price, however, may cause buyers’ remorse.

Corona Capital: Telemedicine, Outdated movie rules

10 August 2020

Concise views on the pandemic’s corporate and financial fallout: Men’s wellness outfit Hims matches the online medical consultation trend with a financial one, namely blank-check companies; and Washington finally scraps a “Gone with the Wind”-era regulation.

Hammerson asks investors to catch a falling knife

6 August 2020

The UK mall operator will raise 825 mln pounds through a deeply discounted rights issue and sale. That should keep debt under control. However, the group must still sell assets when Covid-19 and online shopping are hurting stores and property values remain in flux.

Corona Capital: College mergers, UK property funds

3 August 2020

Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.

Investors lead the rush back into India’s offices

28 July 2020

Singapore’s state funds are top investors in the IPO of Blackstone-backed Mindspace, a $2 bln real estate investment trust. Work-from-home woes will prop up property demand as developers face a liquidity squeeze. The high yields on offer are a strong pull as interest rates fall.

Corona Capital: Disney/“Hamilton”, U.S. housing

6 July 2020

Concise views on the pandemic’s corporate and financial fallout: “Hamilton” reinvigorates Walt Disney’s digital-download challenge, and America’s stay-at-home rules may mean there’s pent-up demand for real estate and home improvement.

Corona Capital: U.S. recovery, Small-business aid

30 June 2020

Concise views on the pandemic’s corporate and financial fallout: White House virus adviser Anthony Fauci’s estimate that U.S. cases could breach 100,000 a day is bad news for the economy. Plus: Uncle Sam’s loan program for small businesses comes to an end with money in the bank.

Corona Capital: Carnival, Cheap funds, Salmon

18 June 2020

Concise views on the pandemic’s corporate and financial fallout: What lies on the horizon for the cruise operator; locking in cheap financing; and a fishy tale of coronavirus-related swings in demand.

Corona Capital: Make infrastructure great again

10 June 2020

Concise views on the pandemic’s corporate and financial fallout: Brookfield Asset Management CEO Bruce Flatt reckons national and local governments will start getting investors to help finance new roads, bridges and the like. That’s one way to plug deficits wrought by Covid-19.