WeWork staff will be reflecting on their former boss’ $1 bil exit package
Mass redundancies lead the way in Mingtiandi’s roundup of Asia real estate headlines today with the news that an out-of-control co-working giant is shedding 17 percent of its workforce as the company scrambles to stem losses.
In other news around the region, credit ratings agency Moody’s has downgraded the rating of a Singapore commercial trust to negative after the closure of its largest asset, while Europe’s richest man is forking out $1 billion to lure Chinese shoppers to his department store in Paris.
Elsewhere, a court has lifted a ban on the son of a mainland property tycoon from buying luxury goods after he racked up $21 million in debts.
WeWork Laying Off 2,400 Staff as CEO Walks Away with $1B Exit Package
Troubled office-space startup WeWork said it would shed around 2,400 jobs following its botched initial public offering in an effort to reduce mounting losses.
We Co, as its parent company is formally known, said Thursday that the layoffs are necessary to create a more efficient organization. The job cuts, which represent about 17 percent of its workforce, began around the globe weeks ago and spread this week to employees in the US, the company said. Read more>>
Moody’s Downgrades Mapletree North Asia Commercial Trust
Credit rating agency Moody’s Investors Service has changed its outlook on Mapletree North Asia Commercial Trust to negative from stable.
The downgrade reflects the uncertainty surrounding the earnings and operating performance of the trust’s largest asset, a mall in Hong Kong, said Jacintha Poh, a Moody’s vice-president and senior credit officer. Read more>>
Bernard Arnault Spending $1B on Paris Store to Lure Chinese Shoppers
Europe’s richest man, Bernard Arnault, is spending $1 billion on renovating a Parisian department store to lure in Chinese shoppers hunting for luxury brands.
Arnault, who is the CEO of LVMH, and is worth $101 billion, is hoping the department store will attract Chinese shoppers in search of luxury brands. Read more>>
Son of Dalian Wanda Boss Freed From Spending Ban
Wang Sicong, the high-profile son of one of billionaire Wang Jianlin, was released from a court order barring him from luxury consumption due to debts owed to creditors, according to information from a governmental disclosure database.
Last month, a court in Shanghai banned Wang from making pricy purchases, such as staying in luxury hotels, flying first-class and visiting nightclubs, as a result of a lawsuit involving a gaming streaming platform he invested in. Read more>>
Walmart Plans 500 New Stores in China
Walmart, the world’s largest brick-and-mortar retailer, is to step up its expansion in China by opening 500 new outlets and cloud-based warehouses over the next five to seven years, an senior executive told Yicai Global today.
The US hypermarket chain will be looking at retail formats that include large shopping malls, compact physical stores, outlets in residential communities and Sam’s Club, a membership-only bulk retailer, according to James Ku, senior vice president of China realty at Walmart. Read more>>
Mapletree Logistics Trust Bags First Sustainability Loan
Mapletree Logistics Trust has made its first move into sustainable financing with a S$200 million ($147 million) sustainability-linked loan from OCBC Bank to be used for general working capital, the manager said in a statement on Thursday.
The six-year committed revolving credit facility is designed with reference to MLT’s rooftop solar installation programme for its logistics properties in Asia-Pacific. Read more>>
Chinese Property Buyers Heading Back to Toronto
Wealthy Chinese are once again establishing themselves as a major market force in Toronto’s luxury residential real estate sector, according to a recent analysis by RE/MAX.
“Buyers from Mainland China are also slowly making their way back into the GTA’s high-end market, this despite the non-resident speculation tax and limited access to funds, as the Chinese government restricts investment outside of the country,” RE/MAX stated. Read more>>
Flexible Workspace in India to Hit 140 Million Sq Ft by 2025
Demand for flexible workspace in India is estimated to grow fivefold to 130-140 million square feet (12-13 million square metres) by 2025, accounting for one-third of global co-working inventory, according to a report released by property consultant Cushman & Wakefield.
The NYSE-based consultant has estimated the global flexible workspace inventory at about 125 million square feet, of which nearly 27 million square feet is located in India. Read more>>
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