The latest chapter in the WeWork drama is taking place on the New York stock exchange today as the shared office provider goes public through a SPAC arrangement, providing relief for investors who had bought in at valuations of as much as $47 billion and now may be glad to find a $9 billion exit.
Also, in the news, Mapletree Logistics Trust adds to its Korean portfolio, and the Evergrande credit crisis continues to unfold, with developer Modern Land delaying a bond payment today.
WeWork Inc. has completed its business combination with BowX Acquisition Corp., a special purpose acquisition company(SPAC), to become a publicly traded flexible space provider.
The combined company will now operate as WeWork Inc. and will begin trading on the New York Stock Exchange under the ticker symbol “WE” on October 21, 2021. Read more>>
Mapletree Logistics Trust (MLT) is acquiring a 2-year-old logistics facility in South Korea for 135 billion Korean won ($115 million) to boost its strength in the e-commerce market.
The property, Yeoju Logistics Centre, spans over 70,400 square metres in total gross floor area and sits on 56,200 sq m of freehold land. It has 2 blocks of 3-storey dry warehouses and is fully leased to one of South Korea’s largest online fashion platforms and a domestic third-party logistics service provider. Read more>>
China’s property market has taken another turn for the worse as developer Modern Land (China) has cancelled its plan to repay a portion of a $250 million junk bond and extend it just days before it was set to mature, joining China Evergrande Group and other peers in a financial mess.
At the same time, Chinese Estates Holdings, once Evergrande’s second-biggest shareholder, said it sold its holdings in high-yield bonds issued by another Chinese developer Kaisa Group Holdings at a loss. The sales this week at prevailing market rates came just days after Kaisa said it made an interest payment due on its debt last week. Read more>>
Debt-ridden property developer China Evergrande Group has secured an extension on the maturity of a US$260 million bond issued by its joint venture and which it guaranteed, financial information provider REDD reported on Thursday.
The bond issued by Jumbo Fortune Enterprise matured on Oct 3 and Evergrande reached the agreement with bondholders early this week after agreeing to provide extra collateral. Read more>>
Chinese property giant Evergrande’s shares plunged on Thursday after resuming trading in Hong Kong, with the failure of a unit sale deal deepening fears the indebted firm will collapse and send shockwaves through the world’s second-largest economy.
Evergrande had suspended trading on October 4 pending an announcement on a “major transaction” as it struggled with some US$300 billion of debt – with investors worried about the potential fallout from its predicament. Read more>>
Zongteng Group, a Chinese logistics service provider backed by GLP, is weighing an initial public offering as early as next year, people with knowledge of the matter said.
The Shenzhen-headquartered company has held discussions with banks about a potential IPO on the mainland or Hong Kong that could raise at least $500 million, the people said, asking not to be identified as the information is private. Zongteng Group could pursue a private funding round before an IPO, one of the people said. Read more>>
Hong Kong investment house JY Group has pounced on a half stake in one of Australia’s oldest suburban shopping centres, Roselands in Sydney’s southwest, in a $167 million above book value transaction that adds further momentum to the resurgence in retail real estate.
Roselands opened in 1965 and was once billed as the largest shopping centre in the southern hemisphere. The 63,500 square metre owned jointly by Challenger and ASX-listed Vicinity is well known to shoppers across Sydney’s southwest. Read more>>
THE Urban Redevelopment Authority (URA) has launched a residential site at Dairy Farm Walk for sale via public tender on Thursday (Oct 21).
Spanning 15,663.2 square metres (sq m), the parcel has a maximum gross floor area of 32,893 sq and an expected yield of about 385 units. Read more>>