Real Estate Pain Is Showing Up in an Obscure Investment Product
An obscure investment product used to finance risky real estate projects is facing unprecedented stress as borrowers struggle to repay loans tied to commercial property ventures.
Latest Videos
The information you requested is not available at this time, please check back again soon.
An obscure investment product used to finance risky real estate projects is facing unprecedented stress as borrowers struggle to repay loans tied to commercial property ventures.
When Ken Griffin left Chicago, the billionaire listed several of his high-end properties in the Gold Coast, the city’s most exclusive neighborhood.
Vietnamese prosecutors sought the death penalty for real estate tycoon Truong My Lan, indicted in a $12 billion fraud case for her role in bribing government officials, violating bank lending rules and embezzling funds, VnExpress news website reported.
Bank of America Corp. is cutting some office space in its headquarters in Hong Kong’s Central district, according to people familiar with the matter, underscoring the headwinds for the city’s commercial landlords.
One word echoed across trading floors from Tokyo to Singapore as the Bank of Japan raised rates for the first time in 17 years — ‘finally’.
Dec 8, 2021
Bloomberg News
,(Bloomberg) -- RMZ Corp. is foraying into overseas markets to develop offices for its global clients as one of India’s largest builders bets on a jump in demand for working spaces
“Our customers need workspace solutions worldwide, which pushed us to look for geographies outside India,” RMZ Corp’s Chairman Manoj Menda said in an interview. “Our focus will primarily be the key gateway cities like London, Paris and New York for scaling up.”
The pandemic has created challenges for office developers worldwide as work from home or hybrid work culture gained prominence. While work from home would increase, Menda said that the demand for office space is set to jump globally.
The Bengaluru-based developer, which owns around $10 billion worth of income yielding commercial realty assets in the country, plans to establish offices in London and Dubai by next quarter and set up teams to acquire development rights and achieve financial closures by the third quarter of next year.
With more than 250 global lessees, the builder has been researching the key overseas markets for more than three years and is in talks with some of the large landowners and local developers in these cities for co-development. It also plans to tie up with strategic financial investors for co-investment.
The developer has two equal partnerships with Canada Pension Plan Investment Board, and Mitsui Fudosan Ltd. for development of commercial offices in India, with each likely to develop and own $2 billion worth of assets.
RMZ is looking at an annual capital deployment of $4 billion, of which 15% will be allocated for international expansion, according to Menda. With contributions from its partners, total investment in global foray is likely to be more than $1 billion.
“We will involve our existing partners for investments outside India as well as look at new partners in those geographies. That gives us more capital at play,” Menda said.
©2021 Bloomberg L.P.