Some investors behind these PE firms have been hesitant to commit more capital, concerned that there may be little to no equity value remaining. — Bloomberg
WHEN Blackstone Inc bet on Hong Kong’s commercial real estate sector in 2014, it bought a 20,000-sq-ft retail space in the bustling Mong Kok district for HK$700mil (US$90mil) to target mainland Chinese tourists seeking brand-name wear.
Today, the space that once housed Forever 21 is valued at less than half that amount and Blackstone is in talks with Taipei Fubon Commercial Bank Co to renegotiate terms of a loan for that property, according to sources. The building’s high profile retail tenant has been replaced by 24/7 gyms and an outdoor gear store.
