German Real Estate Firm Adler Reaches Agreement With Lenders
Troubled German real estate firm Adler Group SA has reached a non-binding agreement with bondholders, according to a company statement released on Thursday morning.
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Troubled German real estate firm Adler Group SA has reached a non-binding agreement with bondholders, according to a company statement released on Thursday morning.
The deep freeze that’s gripped Europe’s real estate markets since borrowing costs jumped worsened at the start of the year as deals plunged to their lowest levels since 2011.
Investors are looking for the next policy domino to fall in Asia amid an escalating campaign against a resurgent dollar, after Indonesia used a surprise interest rate hike to defend the rupiah.
Vietnamese billionaire Pham Nhat Vuong pledged to invest at least another $1 billion of his personal wealth into VinFast Auto Ltd., providing the capital needed for expansion of the struggling electric vehicle maker.
Macrotech Developers Ltd., a real estate firm that operates under the brand name Lodha, expects pre-sales to grow about 20% in the year to March after reporting its highest ever quarterly revenue.
Dec 3, 2021
People who buy a home in Canada aren't merely owning a place to live, but rather controlling a seemingly ever-appreciating asset class, as the cost of housing in many Canadian cities continues to soar, according to Bay Street economist David Rosenberg.
"Housing has become not just a place to live in Canada, it's become like an asset class, and probably too much of an asset class," said Rosenberg, chief economist and strategist at Rosenberg Research and Associates Inc., in an interview on Friday. "We've deviated way too far in terms of pricing and where nominal growth is in the economy."
Rosenberg's comments come as the price of a house in Toronto soared to a record $1,163,323 in November, up nearly 22 per cent from a year earlier, according to Toronto Regional Real Estate Board data released Friday. Toronto wasn't the only city in Canada to report steep housing price hikes in November, with the average price of a home in Vancouver climbing 16 per cent to $1,211,200, while Calgary prices were up nine per cent to $461,000, according to those city's respective real estate boards.
Cooling Canada's housing markets has been a debate years in the making, with some analysts pointing to the Bank of Canada raising interest rates as a way to make homes more affordable for the average Canadian. Based on forward overnight index swap rates, investors expect the Bank of Canada to raise rates five times over the course of 2022, according to Bloomberg data.
However, Rosenberg cautions that rate hikes are unlikely to move at that pace, given the amount of outstanding debt Canadians have taken on. Statistics Canada said in August that Canadian households carried approximately $2.5 trillion in debt one year into the COVID-19 pandemic, about two-thirds of which was tied to mortgages.
“We had a mountain of debt before the [COVID-19 pandemic] that prevented a normal policy move in the last cycle. Now we're choking on even more debt," Rosenberg said. "Central banks might want to raise rates (but) they won't raise them as much as what the markets got priced in."
Rosenberg - who rose to prominence through a series of bearish market calls during his time as a Merrill Lynch economist in 2007-2008 - expects the Canadian economy to underperform next year. He’s predicting equity valuations will be "quite weak" and that the housing market landscape will be much different from what homeowners are seeing currently.
"When I tell this tale, people say 'Well, you're like the boy who cried wolf.' To which I say, 'Just remember that the wolf shows up at the end of the story,'" he said.