WeWork’s financial struggles continue to make the news
Over a year after its failed IPO, WeWork continues to make news with its financial struggles, as US credit rating giant Fitch warns that “default is a real possibility.”
Also in today’s real estate headlines, analysts have continued to point to encouraging prospects for Singapore’s commercial real estate market in the medium to long term, but so far this year rents have continued to slide, with office leasing rates falling 4.5 percent in the third quarter, compared to the previous three months.
Fitch Warns of WeWork’s Substantial Credit Risk, Potential Default
Fitch Ratings downgraded troubled co-working company WeWork and warned that the once high-flying start-up could default on its obligations.
On Thursday (Oct 22), the agency said it lowered the company’s long-term issuer default rating to CCC from CCC+. That indicates “substantial credit risk” and suggests “default is a real possibility,” according to Fitch’s rating scale. Read more>>
SG Office Rents Fall by Biggest Margin in 11 Years in Q3
Office rents in Singapore saw their steepest decline in 11 years in the third quarter, official data showed on Friday, as the COVID-19 pandemic hit leasing demand for commercial real estate in the regional business hub.
Rents for office space fell 4.5% on a quarterly basis in July September, data from the Urban Redevelopment Authority showed. That was the biggest quarterly decline since the April-June period in 2009, when rents fell by 7.7%. Read more>>
Singapore Retail Rents Fall by 4.5% in Q3
Rents of retail space in Singapore’s central region dropped 4.5 per cent in the third quarter of 2020, after declining 3.5 per cent in the previous three months.
However, the latest data released by the Urban Redevelopment Authority (URA) on Friday (Oct 23) also showed that prices of retail space in the central region rose by 2.2 per cent in the third quarter of 2020, after chalking up a 1.5 per cent decrease in the previous quarter. Read more>>
Xander Sells Stake in India Projects for $95M
Alternative investment firm the Xander Group Inc. has made around ₹700 crore ($94.8 million), or 2x its investment, by exiting two realty projects of the Rustomjee Group in Mumbai, said a person, requesting anonymity.
Xander’s private equity arm had invested around ₹370 crore in 2014 through non-convertible debentures in Rustomjee-owned Kapstone Constructions Pvt. Ltd, which is building a 127-acre residential township in suburban Thane and another in Juhu. Read more>>
Goldman Sachs Partners with Former Digital Realty Boss in Data Centre Venture
The Goldman Sachs Merchant Banking Division (GS MBD) has partnered with a management team, led by data centre industry executive Scott Peterson, to form Global Compute Infrastructure LP, a newly established global data centre infrastructure platform.
GS MBD initially committed to fund up to US$500 million of equity capital, primarily from its infrastructure fund, West Street Infrastructure Partners III, LP, to enable $1.5 billion in near-term investments deployed across North America, Europe, Asia Pacific and Latin America. Read more>>
Korean Real Estate Investors Shift From Europe to US
South Korean asset owners are showing resurgent demand for foreign real estate as the Covid-19 crisis eases, but are investing almost nothing into European property, a sector they were dominating until the pandemic struck.
They represented the largest single group of foreign investors into European real estate in 2019, allocating $12.5 billion, and they poured in another $2.2 billion in the first quarter of this year, according to Real Capital Analytics. Read more>>
PGIM Sells Osaka Office Building
PGIM Real Estate has sold the Toyobo Building, a 12-story office tower located in Osaka, Japan, on behalf of its investors, according to the private fund management division of US financial services giant Prudential.
PGIM Real Estate acquired the property in October 2017 from Toyobo Corporation, and implemented a capital improvement program to modernize the 40-year-old building. At the time of its acquisition, PGIM Real Estate signed a long-term agreement to have Toyobo continue leasing approximately 60% of the building, with the remaining space leased to third-party tenants. Read more>>
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