Scary cinema adventures lead today’s real estate headlines as a US unit of Dalian Wanda Group warns that it may never make it back alive from the marathon showing of Nightmare on COVID Street. Never long from the headlines, WeWork also gets some coverage today as a group of its investors file a class action suit against the company and its primary backer, Softbank.
In news closer to home a Kowloon hotel has hit the market, as the 160 room hostelry also falls victim to the coronavirus, and the tender for a flailing Singapore hospitality trust has hit a snag over an existing agreement with Far East Consortium.
AMC Theatres, the world’s biggest movie theater chain, said on Wednesday that it has “substantial doubt” it can remain in business after closing locations across the globe during the coronavirus pandemic.
The theater chain, which closed its theaters earlier this year, expects to have lost between $2.1 billion and $2.4 billion in the first quarter. Read more>>
In the latest lawsuit over WeWork’s scuttled IPO, investors say the company hoodwinked them by promoting a transformation of the concept of workspace in order to sell hundreds of millions of dollars worth of stock.
The complaint was filed as a class action on behalf of investors who bought shares in the privately held company for 2 1/2 years before the IPO was canceled in September and the value of WeWork plummeted. They allege that WeWork executives and board members overhyped the business plan and downplayed its losses as “strategic investment spending that would lay the foundation for profitability.” Read more>>
Hong Kong’s Shamrock Hotel, the favourite haunt of Bruce Lee’s family during the 1950s, will close after almost seven decades in business, bowing to a recession in the city that is leaving two in every three hotel rooms empty.
The nine-storey hotel, located on the corner of Bowring and Nathan roads near the Jordan subway station in Kowloon, will shut on June 14, according to staff contacted by South China Morning Post. Read more>>
The special committee taking charge of the restructuring and the strategic review of Eagle Hospitality Trust’s (EHT) business has had to abandon expressions of interest from “credible and reputable asset management companies and/or institutional investors” because of a letter of intent that EHT’s sponsor Urban Commons (UC) had signed with Hong Kong-listed property conglomerate Far East Consortium International (FECIL) providing for a 90-day exclusivity period that expires on July 14, 2020.
Because of this legal commitment, the special committee could not proceed with its initial intention of a request for proposal (RFP) process. Any change in control of the managers would require the consent of the shareholder of the managers, Howard Wu and Taylor Woods. Mr Wu and Mr Woods had resigned from the trust managers’ boards of directors effective from May 26, but continue to jointly own UC and the managers. Read more>>
Mapletree Industrial Trust will join the benchmark Straits Times Index (STI) from June 22, replacing Singapore Press Holdings (SPH), following the latest quarterly review of the STI by FTSE Russell.
The STI reserve list, comprising the five highest-ranking non-constituents by market cap, are mostly made up of real estate investment trusts (Reits). In order of size, they are Keppel DC Reit, Suntec Reit, NetLink NBN Trust, Frasers Logistics & Commercial Trust and Keppel Reit. Read more>>
Co-working major WeWork India, which is owned by the Embassy Group, on Friday said it has raised USD 100 million from WeWork Global for sustainable growth of its business. With this funding, US-based WeWork Global has reaffirmed its ts commitment to the Indian market, it added.
“WeWork India – the global platform for creators that provides collaborative workplace solutions, will receive USD 100 million financing from WeWork Global to help boost sustainable growth,” the co-working player said. Read more>>
As we move further into the Covid-19 crisis and transaction activity continues to dwindle, investors are becoming increasingly concerned about market liquidity. Given the long-term nature of commercial real estate investment one should expect a certain amount of cyclicality during the period of ownership. However, at times of extreme stress the need for liquidity becomes paramount in order to preserve cash and lock in performance.
Asia Pacific is the smallest of the three global zones in terms of transaction volume and home to some of the least transparent markets worldwide, so it is more susceptible to a rapid drop in liquidity and longer recovery periods. Read more>>