Spanish property stocks in freefall 24 Apr 2007 All it took was jitters over minnow property stock Astroc, which has tanked over 60% in a week. Spanish property stocks were due a correction. But how big will it be?
Sacyr launches E9.5bn hostile bid for Eiffage 19 Apr 2007 The Spanish firm had been trying to get on the board of the French company for over a year, but was consistently rebuffed. Eiffage s move to strip voting rights from some Spanish investors was the last straw. So now it is going for the whole thing.
Unibail turns to Dutch for E21bn merger 10 Apr 2007 The French commercial real estate developer will combine with Rodamco. Unibail becomes less French, and Rodamco gets more new projects. Unibail s shares have been flying for the last nine months. It is taking advantage of the gains in this allshare deal.
Lenders push back on Apollo’s Realogy deal 30 Mar 2007 The normally tame lapdogs of leveraged finance reared up on their hind legs in response to a real estate broker s LBO. Forcing Realogy to pay more was not a tough call. But at least it shows lenders haven t completely lost sight of risk.
Russian real estate is fraught with risk 28 Mar 2007 Office rents may be only second to London, but with yields twice those in the rest of Europe, Russian property is still attractive, right? Not necessarily. It depends how fussy you are about property rights. Investors should be careful with the raft of Russian real estate IPOs.
Off-balance liabilities could ensnare US homebuilders 26 Mar 2007 They re not just facing falling sales and land values. They also have pricey commitments to local governments. Walking away would be costly. But so would the alternative continuing to build. Whichever option they choose, the homebuilders look overvalued.
China’s new Socialism – designed by Adam Smith 19 Mar 2007 The People s Congress has passed a law giving private property equal rights in a basic economic system of socialism . Call it what you will, private property is a good idea. It will help peasants and protect foreign investors from expropriation.
Hedge funds win either way in Countrywide deal 5 Mar 2007 The funds that locked buyout firm 3i out of the UK estate agent are supporting Apollo s bid because they're being offered an equity stake. Stub equity is rarely popular with investors. But Apollo securing a recommended bid puts 3i back in the frame. Either way, hedge funds win.
Metrovacesa shareholders settle their feud 19 Feb 2007 The Sanajuha and Soler/Rivero families have decided to split the company in two to settle a longrunning battle for control. This sounds sensible in principle. But the details are fuzzy and it s not clear what it means for minority shareholders.
Credit crunch threatens housing stocks 16 Feb 2007 Housing stocks are up since August, yet starts are dropping. They plunged 14% in January alone. Subprime mortgage losses are making lenders cautious. If the marginal buyer cannot get finance, the marginal house is dead inventory.
Indian real estate still offers opportunities 13 Feb 2007 Foreign money is pouring into India s booming real estate market, driving down yields in the major cities and raising fears of a bubble. But there are still plenty of cities where yields remain attractive. And the scale of India s development means demand is soaring.
Home Depot can salvage something from Supply 12 Feb 2007 The US home improvement retailer spent $8bn buying wholesale supply businesses, which diluted its overall profitability. But if Home Depot can attract a privateequity buyer to pay a premium, it might just fetch $10bn and net a decent profit.
No shop can beat go shop 8 Feb 2007 An increasing number of LBOs include go shop provisions which allow boards to seek out better offers but few succeed. By contrast, EOP extracted $3bn after agreeing to a no shop . More critical than the shopping label is the size of the break fee.
Has Steve Schwarzman gone an office too far? 7 Feb 2007 Vornado s white flag means Blackstone has won the $39bn battle for Equity Office in the biggest LBO in history. But the valuation looks toppy by almost any measure an impression that Vornado s withdrawal further reinforces.
Overlapping shareholders may sway EOP battle 2 Feb 2007 The company has a $22.4bn cash offer from Blackstone and a $23.2bn cash/stock offer from Vornado. Shareholders may be tempted to take cash. But not so fast. Vornado s stock might appeal to EOP s top investors, who own 44% of the shares and are also the biggest backers of Vornado.
Belgravia outstrips Upper East Side 22 Jan 2007 House prices in prime areas of London and NYC are booming compared to the UK or the US in general, driven by bankers bonuses. But London is pulling away from NYC. That s partly a reflection of its momentum as a financial centre. But the extra cost is also a worry.
Could 666 be the mark of the top? 7 Dec 2006 That s the number of the Fifth Avenue building which has sold for a recordbreaking $1.8bn. It s a reminder that US commercial property is soaring ahead, fuelled by the remarkable growth in securitized lending.
Indian property fever keeps burning 5 Dec 2006 The central bank has warned of overheating. But $4bn of real estate IPOs in the pipeline suggests few are listening. True, demographics are favourable. But not enough to justify 300% price increases in three years. It looks like another financial bubble.
Wall Street goes a bridge too far in LBOs 24 Nov 2006 First Boston s bridge loan demise 15 years ago appears to have been erased from the securities industry s collective memory. How else to explain the willingness of Blackstone s bankers to commit $3.5bn in a record equity bridge financing for its EOP buyout?
Warburg Pincus taps strong demand for property 30 Oct 2006 The US private equity group's $1.2bn global real estate fund is its first dedicated property fund,reflecting demand for alternative assets. Investors want exposure to fastgrowing Asia, which could make up 50% of the fund. But emerging markets carry higher risks.