Quote:
Originally Posted by viewguysf
According to late subscriber content in the SF Business Times today, that’s not logical or true. Oceanwide Center has one million square feet of office space to lease in the main tower. The second tower with the hotel and condos is ancillary. Big companies are concerned about the future lack of large blocks office space in the City.
|
It's under construction. Are you arguing they might stop midway if they don't soon lease the main tower? Otherwise, I don't get your or mt_climber's point. As a matter of fact, the point might make more sense to me if Facebook were still looking for a big lease and might consider Oceanwide--a negotiation on that would constitute "pressure" to keep the project going. As for any lack of other prospects looking for large leases now, the Facebook deal kind of came out of nowhere (except maybe for Jay Paul). Who knows what other potential tenants might be lurking out there? Both Salesforce and 181 kind of snared tenants no one expected when ground was broken.
And the "ancillary" tower is the one more or less leased up so they are even less likely to call a halt to it.
There is, however, a matter that has been concerning me:
Quote:
China may be crippling some of its largest companies with a crackdown on investment
Sophia Yan
Published 10:06 PM ET Thu, 24 Aug 2017 Updated 6:48 PM ET Sun, 27 Aug 2017
CNBC.com
China has tightened the purse strings on foreign investment, but the government's crackdown could completely backfire, hurting the very companies it's seeking to firm up.
Chinese companies had been on a massive shopping spree — outbound deals hit a new record every year since 2009, soaring 500 percent to a whopping $200 billion last year. But authorities grew worried about economic and financial risks. Cash flying offshore added more pressure to an already weakening yuan, and it was unclear how much debt firms were taking on to buy everything from luxury resorts to soccer clubs.
It didn't take long for Beijing to strengthen capital controls, and to issue rules on what kind of acquisitions would be banned, restricted and encouraged. Regulators are reviewing the debt involved at China's most acquisitive companies, along with purchases made. The government may even force firms to offload non-performing assets in a fire sale to improve financial health – but experts say Beijing is going to have trouble doing that.
"If Beijing now wants to employ a strategy of forcing companies to unwind the acquisitions ... they're going to run into some headwinds," said Chunshek Chan, global head of mergers and acquisitions and financial sponsors research at Dealogic . . . .
|
https://www.cnbc.com/2017/08/24/chin...nvestment.html
Oceanwide may have gotten its Chinese cash infusion just in time and talk of "unwinding" any of these deals is a little scary.
Prev
Linear Mode
