StuyTown may not be top of Tishman’s scrap heap 25 Jan 2010 Buyers including Wilbur Ross are lining up to buy the sprawling Manhattan residential complex after Tishman handed the keys over to lenders. But Tishman also overpaid for Archstone $22 bln worth of U.S. apartments. Of the two, Archstone looks the more promising investment.
Ski battle adds frisson of danger to winter games 25 Jan 2010 When Fortress and Lehman stood at the summit in 2006, ski resort operator Intrawest looked enticing. Now it's a dead property deal being fought over by these wounded participants. The tussle has dragged in the Vancouver Olympics, though that's probably just a sideshow.
DP World London listing could alleviate many woes 6 Jan 2010 The Dubai ports group is looking to take a UK quote that could see it join the FTSE100. A dual listing may address the poor liquidity of its domestic stock. Bluechip status should help the rating. For troubled parent Dubai World, which holds 80 percent, the benefits are clear.
China’s real estate may look more Japanese 5 Jan 2010 Recent curbs show Beijing has more power to cool down a property bubble than Japan did in the 1980s. But the difference may be overstated. True, leverage in China remains low. But falling savings rates, an ageing population and limited land supply mean familiar themes may appear.
US should pull the plug on ResCap 4 Jan 2010 Despite nabbing the bulk of the latest $3.8 bln infusion into GMAC, the car lender's mortgage unit is a mess. ResCap still may not pull through, and there's no reason for taxpayers to prop it up. Like its former subprime lending peers, it should be disposed of or allowed to die.
UK housing market between rock and a hard place 31 Dec 2009 The 2009 spurt in house prices looks to be waning as cashrich buyers see fewer bargains. If rates stay low in 2010, the weak economy will not support increased lending. If rates rise, arrears could jump, prompting forced selling. Don't bank on London being immune, either.
US forges risky new weapon for mortgage battle 29 Dec 2009 Despite the latest CaseShiller numbers, many reckon house prices are set for more declines next year as government supports wind down. Treasury's gift of almost unlimited support to Fannie and Freddie could offset that. But it would be costly, with no guarantee of success.
Walking away will gain cachet 23 Dec 2009 Why bother? That's the question more underwater Americans are asking themselves about their mortgages. Trapped in the abyss of negative equity, more will decide to quit paying. As they should.
Accor split will ease shareholders’ pain 14 Dec 2009 The French hotel group's board will decide this week to spin off the company's vouchers division. The timing is right, since the hotel branch can get by without the highly profitable division's cash flow. Opponents fear this might make Accor a takeover target. So what?
Dubai: what happens on Monday? 11 Dec 2009 That's when the $3.5 bln bond of Nakheel, the troubled property developer, matures. A full, timely repayment looks unlikely and creditors haven't yet agreed a standstill. But Nakheel will still have a 14day grace period. If nothing is done, things could then unravel painfully.
UK commercial property needs more Dubais 27 Nov 2009 Prime real estate yields are tightening fast. Historically low rates are inflating a bubble, because global demand for yield is chasing a shrinking stock of prime assets, bidding prices up. Indebted foreigners who need to sell rather than keep buying could relieve the pressure.
British Land’s merits look underplayed 17 Nov 2009 The UK commercial property group s results are the latest evidence of the realestate recovery. With the sector trading above book value, British Land s sticky rental contracts make it relatively attractive. If it spends its £1bn war chest wisely, that should be reflected.
China’s new imbalance: real estate addiction 12 Nov 2009 The Middle Kingdom s powerful recovery is too reliant on property investment. House prices are soaring. Local governments and developers are rushing to cash in. A USstyle meltdown is unlikely, but the bursting of this bubble could undo some of China s economic achievements.
UK commercial property has hit the bottom 22 Oct 2009 The market fell a long way very quickly. But UK commercial realestate prices probably won t drop any further. A wall of money chasing yield in a low interestrate environment should underpin valuations. Still, don t expect the market to bounce back as fast as it corrected.
Banks dodge mortgage loan-to-value caps 19 Oct 2009 The UK regulator trusts chastened lenders and tougher capital rules will prevent a resurgence of housing loans with low or no equity. This indirect approach may be justified for now. But the FSA should not be too afraid of imposing blunt rules if the market starts to heat up.
Beware the limits of UK house-price derivatives 16 Oct 2009 Contracts that enable traders to bet on where house prices will be years hence may express a market view on the direction of travel. But this year s predictions have been all over the place. Derivatives are a risky tool for divining future house prices.
FHA follows Fannie and Freddie down zombie path 14 Oct 2009 The US Federal Housing Authority is the smallest and healthiestseeming of the USsponsored mortgage giants. But it ramped up lending to counter housingmarket decline. Robert Cyran explains how the fallout could leave the FHA dependent on taxpayers, like its larger cousins.
Sale and leaseback makes timely comeback 6 Oct 2009 Recent weeks have seen a flurry of deals as confidence has started to return to the troubled commercial property sector in Europe. The immediate prospects for property may be mixed. But the real attraction for investors is the promise of longer term inflation protection.
UK housing recovery still work in progress 2 Oct 2009 House prices have risen for the fifth month in a row, says one big mortgage lender. But gains continue to be driven by a shortage of supply and ultralow interest rates. As the broader economy picks up, rising rates could upset those dynamics.
Too soon to call the bottom on Spanish property 2 Oct 2009 Some indices suggest house prices in Spain are stabilising at last. Things may be not be deteriorating so rapidly. But a recovery would require a turn in the labour market, which looks some way off. And as things stand, house prices still look too expensive.