Blackstone Seeks Buying Opportunities in China's Commercial Property Market -- Update
DOW JONES & COMPANY, INC. 2:48 AM ET 8/26/2015
Symbol Last Price Change
BX 32.4 0 (0%)
QUOTES AS OF 04:05:40 PM ET 08/25/2015
HONG KONG-- Blackstone Group LP(BX) is looking for buying opportunities in China's commercial property market amid slowing growth and market turbulence in the world's No. 2 economy.
Christopher Heady, head of the private-equity firm's closely watched Asia real-estate business, said employment remained high and the service sector healthy in certain Chinese markets despite the broader slowdown in growth. "People are still spending money and standards of living are improving," he said in an interview Wednesday. "We see over the medium to long term this trend as continuing."
That means choice properties in top-tier markets such as Beijing and Shanghai as well as in second-tier cities remain attractive, Mr. Heady said. The fund is less focused on less developed Chinese cities, which are more likely to be dependent on a single industry, he said.
"Volatility can be your friend if you have a medium to long term perspective," he said. "In public capital markets, when prices come down in theory that should create opportunities."
Blackstone is a property heavyweight in Asia and abroad. Blackstone's Asia property fund, Blackstone Real Estate Partners Asia, is the region's largest, raising a total of $5 billion over four closings since 2013, according to industry data tracker Preqin. It has counted as partners major investors such as major domestic developer China Vanke Co. and the State Administration of Foreign Exchange, China's currency-exchange agency.
Other developers have sounded cautious notes about the Chinese economy, which is set to grow at its slowest pace in 25 years. Those fears have sparked a global market selloff in recent days.
"You get pretty spooked by what's been happening. Could this trigger a wider issue in global financial markets?" said Mark Gabbay, chief executive at LaSalle Investment Management. "It hasn't impacted the real-estate market just yet, but it's a yellow flag."
Volatility is making it difficult to sell assets in China now, Mr. Gabbay said, adding that risk premiums are rising as well. "Are we in crisis zone? Yes, but not long enough to make material changes to our portfolio," he said, adding that LaSalle Investment Management had already moderated its exposure in China to around 10% of its Asia portfolio in recent years as Japan and Australia looked more attractive.
Such volatility can lead to bottom-fishing opportunities, but only in select markets, said Goodwin Gaw, chairman of Hong Kong-based investor Gaw Capital Partners. Mr. Gaw echoed Mr. Heady in describing volatility as a "friend," adding that Gaw Capital has been cautious in China in the past few years as it focused on only select "trophy assets" and specific niche sectors such as logistics.
"If the recent volatility results in distressed situations with forced sale opportunities, then funds availability will actually increase rather than decrease," said Mr. Gaw. "U.S. is actually getting quite healthy and Europe stabilizing so China weaknesses could provide a window for Western investors to increase exposure into China."
China's commercial property market is slowing, according to Chinese government statistics.
Investment in office-building development rose more than 13% to 326.4 billion yuan in the first seven months of 2015 from a year earlier, compared with growth of more than 21% for all of 2014.
Office-building construction starts fell nearly 15% to 32.96 million square meters in the first seven months of this year from the year-ago period, compared with 6.7% growth for all of last year.
Blackstone's Mr. Heady said recent market turmoil---which knocked China's main stock index down by more than one- fifth in four trading days alone---and a surprise devaluation of the yuan this month have had only a limited impact.
"More relevant to us is the real economy. There, frankly, we haven't seen a tremendous change over the past few months or at least in last couple of weeks of volatility," Mr. Heady said. "Our views remain fairly consistent as it relates to China. The economy is slowing down and I don't think that's a big surprise to anybody."
Blackstone is focusing on real-estate plays that focus on middle-class consumption, he said.
"There's going to be a series of bumps along the road as the economy transitions away from heavy fixed asset investment, which over time will have a diminishing return on investment," Mr. Heady said. "The result of that transition is the growth rate is overall slowing down. It's almost as if there's two-speed economy. Some parts are growing slower than others. The old economy sectors like industrials, commodity and heavy industries are suffering considerably right now."
China makes up around 40% of Blackstone's real-estate investments in Asia, with the rest in India, Japan, Australia and Singapore.
Nearly $250 billion has been invested into Chinese real estate from overseas in the past decade, of which development sites accounted for 75%, according to a recent report by investment management firm TH Real Estate, citing data from Real Capital Analytics. Investors from the U.S., including Blackstone, make up 7% of the inbound investment, the third-largest group behind Hong Kong's 70% and Singapore's 15%.
Tired of all of you.. even putting PT is the message gets you on IGNORE... you add nothing to the board that is NEW and relates to BX....
I am off to England spending some time at Merton College in Oxford with my school University of Virginia.. Anglophile here...I only post information on BX.. and most here are involved in personality fights, etc.. I am not posting here.. ciao.. this is more interesting than this board.....http://alumni.virginia.edu/learn/program/english-gardens-architecture-time-thomas-jefferson/
SOFTBANK GROUP CORP
(Last) (First) (Middle)
(Street) MINATO-KU TOKYO M0 105-7303
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
SPRINT Corp [ S ] 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable) Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person
X Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 08/26/2015 P 7,550,000 (1) A $ 4.69 (2) 3,231,459,097 (3) I See Footnote (3)
Common Stock 08/27/2015 P 5,684,582 (1) A $ 4.97 (4) 3,237,143,679 (3) I See Footnote (3)
Common Stock 08/28/2015 P 3,561,400 (1) A $ 5.19 (5) 3,240,705,079 (3) I See Footnote (3)
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
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Here's a look at some of the stocks that Goldman recommends in its "High Quality Stock basket."
Sentiment: Strong Buy
sam_0534 • 0 seconds ago Remove0users liked this postsusers disliked this posts0 ReplyI just spoke to the new CFO Domenic Penna ...I was a stock broker with E. F.Hutton after being an engineer from UVA and working on the J2 rocket engines for the moon vehicle at Rocketdyne.....I completely trust IPCI and management... Penna has bought the stock and he is confident about IPCI and you can see the insiders transactions at this site...Canadianinsider, using the symbol I......The FDA threw a wrench with that last announcement...but I believe it will conclude in IPCI favor......I have no agenda against management and will continue to hold and support my investment..
Normal trading today.. people with little and odd number of shares just want to sell..I got 64 shares and will hold but it is meaningless in my holdings.. Own BX and BXMT.. I think it will do OK
IntelliPharmaCeutics Intl Inc (USA) (NASDAQ: IPCI) shares are down 48 percent year-to-date, plunging in August, and continuing a downward trend in September.
Brean Capital’s Jonathan Aschoff maintained a Buy rating on the company, with a price target of $8.
Although Focalin sales in Q3 were weak, Aschoff believes that the potential lay in its branded value.
Intellipharmaceutics reported its FY3Q15 revenue at $0.8 million and EPS at $(0.08), missing the consensus expectations of $1.1 million and $(0.05), respectively. The company’s total revenue for the quarter was contributed by licensing revenue from Par for the commercial sales of 15 and 30 mg generic Focalin XR.
Analyst Jonathan Aschoff said that although Intellipharmaceutics had 43 percent share of the market for total generic prescriptions of the 15 and 30 mg strengths combined, its revenue came under pressure due to pricing conditions as well as seasonality, with overall Focalin use declining during the summer months.
Intellipharmaceutics indicated that it expects to complete the NDA filing for Rexista in 1H16. Aschoff said that this could be the next catalyst for the company’s shares.
“If not the Rexista NDA filing, we believe the next catalyst is when partner Par launches the 5mg strength, as the 5mg Focalin XR dose represented a branded value of about $73 million for Novartis (NVS, Not Rated) in its annual 2014 sales, and it was about 10% of all Focalin XR sales,” the Brean Capital report noted.
Intellipharmaceutics had $2.8 million in cash at the end of the third quarter, which appears sufficient to fund operations through YE15. The company also has $9.5 million on its ATM facility.
Aschoff believes that the company would require more funding than this to conduct clinical trials with either Rexista or Regabatin XR, “which could come from a capital raise or partnership, should a potential new partner license one, several, or all of the outstanding ANDAs.”
The EPS estimates for FY15 and FY16 have been reduced from $7 to $4.10 and from $17.60 to $12, respectively.
Latest Ratings for IPCI
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FDA delays ruling on Collegium's opioid painkiller
REUTERS 2:14 PM ET 10/12/2015
Symbol Last Price Change
COLL 20.09up -0.58 (-2.81%)
PTX 3.34up +0.085 (+2.61%)
EGLT 10.71down -0.44 (-3.95%)
KMPH 18.27down -0.56 (-2.97%)
PTIE 1.96up -0.03 (-1.51%)
ACUR 2.68down +0.03 (+1.13%)
QUOTES AS OF 04:00:00 PM ET 10/12/2015
Oct 12 (Reuters) - Collegium Pharmaceutical Inc(COLL) said the U.S. Food and Drug Administration said it would not be able to complete its review of the company's opioid painkiller by Monday.
The company's shares fell 8 percent in extended trading.
Collegium did not say if the FDA had given any reason for not being able to complete the review by the set date of Oct. 12 or when it expected the review would now be completed.
Collegium's long-acting experimental oral opioid painkiller, Xtampza, is meant to be taken after a meal for maximum effect.
A panel of outside advisers to the FDA had unanimously voted in favor of the drug on Sept. 11. But, two days before that FDA staff had said that if the drug was taken without food, it could give insufficient relief, which could lead to overdosing.
The abuse of opioids - a class of drugs that include heroin and prescription painkillers - has long been a concern. An overdose of such drugs can produce euphoric highs and even disrupt parts of the brain that control breathing.
The FDA's ruling on Xtampza will be keenly watched by other developers of abuse-deterrent versions of painkillers.
These include Pernix Therapeutics Holdings Inc(PTX), Egalet Corp(EGLT), KemPharm Inc(KMPH), Pain Therapeutics Inc(PTIE) and Acura Pharmaceuticals Inc.(ACUR)
Collegium's shares were trading at $18.25 after the bell. They closed at $20.09 on the Nasdaq. (Reporting by Rosmi Shaji in Bengaluru; Editing by Savio D'Souza)