Category:Jewellery

Thursday, March 25, 2010

The government of Dubai announced that it intends to provide $9.5 billion to Dubai World to allow the government-owned investment company to restructure its debt.

The announcement comes as part of Dubai World’s plan to restructure more than $23 billion of debt, including converting nearly $9 billion of debt into equity, after its collapse last fall. The package includes $8 billion of funding to Nakheel, Dubai World’s real estate subsidiary, as well as $1.5 billion to Dubai World as a whole. The restructuring plan also seeks to, within eight years, repay all of Dubai World’s creditors.

According to the government of Dubai, $5.7 billion of the aid was from a former $10 billion loan to Dubai World, with the remainder being internally funded. The plan would transfer ownership of Nakheel, formerly a subsidiary of Dubai World, to the direct control of the Dubai government.

Response to the deal was largely positive, with one analyst saying the move “boosts sentiment because this is a strong commitment.” Christopher Davidson, author of books on Dubai and Abu Dhabi, said that while the new funding would “keep the wolves outside the gates a little longer,” the government could not be the sole funder of Dubai World and Nakheel.

Sunday, June 26, 2005

The median house price in the United States plunged 6.5% in May to $217,000. In February of 2005, the median price of a home was $237,300.

The Economist newspaper said in its June 16th issue; “In other words, it looks like the biggest bubble in history.” by way of reference to what is happening with housing prices in the USA and much of Europe.

Japan provides an example of how a boom can turn to bust. Property prices have dropped for 14 years in a row (40% from their peak in 1991); and yet, the rise in prices in Japan during the decade before 1991 was less than the increase over the past ten years in most of today’s “housing boom” countries.

The total value of residential property rose by more than $30 trillion over the past five years in developed economies, an increase equivalent to 100% of the combined GDPs of those countries. This increase dwarfs all previous house-price booms and is greater than the global stockmarket bubble in the late 1990s. Much of the recent housing activity is being driven by speculative demand. The National Association of Realtors (NAR) reported that 23% of all American houses bought in 2004 were for investment, not for owners to live in. Another 13% were bought as second homes. NAR also found that 42% of all first-time buyers made no down-payment on their home purchase last year.

Many investors are buying solely because they think prices will keep rising, which is a warning sign of a financial bubble. In Miami, Florida, as many as half of the original buyers resell new apartments even before they are built, and properties can change hands two or three times before somebody finally moves in.

Britain’s Royal Institution of Chartered Surveyors (RICS) reported prices have been falling for ten consecutive months. Forty nine percent of their surveyors reported falling prices in May. This was the weakest report since 1992 during Britain’s previous house-price bust.

Tuesday, June 14, 2011

The BBC Television Centre has been placed up for sale by the corporation. Plans to sell the centre originally came forward in 2007 but the BBC only appointed Lambert Smith Hampton, a commercial property consultant, in November of last year. The building which is based in Shepherds Bush, London was opened in 1960 and is the home of BBC News and BBC Vision.

The BBC stated they were interested in preserving parts of the building while setting up a “hub for creative businesses and a visitor destination.” According to the head of BBC Workplace, Chris Kane, “With high investor demand for commercial property in London and a shortage of landmark sites as distinctive as Television Centre, we anticipate strong competition for both conventional and innovative proposals.”

The property has been valued between £150 million to £300 million but is expected to fetch around £200 million.

5000 staff are currently based at the centre which BBC bosses hope to be empty by 2015. The BBC is creating a new development in Salford, Greater Manchester. Several departments including BBC Sport, BBC Breakfast, and children’s shows are moving to Salford while BBC News is being relocated within central London.

Wednesday, June 13, 2007

After a pay rise of over 40% last year, BT’s chief financial officer, Hanif Lalani, has become one of the very few UK financial directors whose remuneration exceeds £1 million.

Said to be endowed with an ‘enterpreneurial spirit’, Lalani has been a key contributor to BT plc, whose core strategy in recent years has been to reduce its dependence on traditional voice revenues and instead obtain an increasing portion of its turnover from so-called New Wave revenues. At the heart of this strategy is BT Global Services, which has won many significant contracts in the commercial and public sectors, in part through its portrayal as a “momentum story”.

There is, however, increasing disquiet among analysts that the annual growth of the Global Services business has been unimpressive, and that BT has been using prior year adjustments to achieve favourable growth figures, for example in page 24 of http://www.btplc.com/News/ResultsPDF/q307release.pdf .

Take the quarter ended 30th September 2005, for example. At the time, BT said the external revenues of its Global Services division were £1,740m. However, a year later, BT revised this figure downwards to £1,703m. This enabled BT to claim growth of 3.5%, instead of the dismal 1.3% it would have been forced to announce if it hadn’t adjusted the prior year’s figures.

BT has made a habit of adjusting the previous year’s revenue figure every quarter. Only once in the past year has BT adjusted the figure upwards rather than downwards, and then it was by a tiny amount.

BT does not provide a justification for these prior year adjustments in its quarterly reports, but there can be no doubt that it is using these adjustments to make anaemic growth figures look acceptable. It could be an opportune moment for City analysts to ask Lalani some searching questions.

Thursday, July 17, 2008

North America’s oldest retailer, Canada’s Hudson’s Bay Company (HBC), will be transferred from one American owner to another. NRDC Equity Partners, LLC, owners of U.S. department store Lord & Taylor, will purchase HBC from the estate of Jerry Zucker, who died in April.

In 2006, the fate of HBC was first in doubt when Zucker bought it for $1.1 billion from another American owner. The businessman wanted to convert The Bay into a more upscale department-store chain.

Zucker had also begun remodeling the company’s Zellers chain to imitate the Target Corporation, creating wider aisles, expanding outlets, and selling at prices that matched those of the Wal-Mart Canada Corporation.

NRDC plans to introduce up to 15 Lord & Taylor stores in Canada by converting some of HBC’s existing properties, which include stores such as The Bay, Zellers and Home Outfitters. Under the deal announced on Wednesday, NRDC will support a newly-established holding corporation, the Hudson’s Bay Trading Company, with $500 million in funding.

The Hudson’s Bay Company was established in 1670 to support trade and development throughout the northern North American territory that is now Canada.