Real Estate is in a Real State judging by news flow from the sector this week. A Chinese Group pre Covid acquired an office building in Canary Wharf for £270m and yesterday it was sold out of receivership for £110m, bought by an Israeli. In every deal someone makes a mistake. The fact is that both buyer and seller come to London to ply their skills to make and lose their buck. London is their merry go round.
In this blog a few years ago it was said by me that We Work the office provider Won’t Work. The statement was made at a time they were valued at $47 billion. They shortly went bust though not before the founder Neumann took out $2 billion leaving his backer Soft Bank with soft egg on their face. Now Neumann wants to buy the Company out of receivership with the money he took out when it imploded. We Work is working for him but not for those that worked there. Another merry go round.
This morning the headline is that Barrett the house builders are buying Redrow another housing provider. It’s the only deal where no cash changes hands just paper in a share exchange. Another sleight of hand and a move to save through merger £90m pa in overheads. One of the Companies are making a mistake. Mergers rarely work and another merry go round.
Real Estate is a bit like another game called. ‘ pass the parcel ‘ and those left holding it leave the game. Like the guy selling a warehouse full of sardines eventually a buyer wants to eat one. He does and finds the sardine is off, complains to the seller who glibly says ‘ they’re for selling not eating you fool ‘.
qbitblogger 