—— 421a Construction Deadline May Be Extended 4 Years; Blackstone BREIT Hits Redemption Cap; Adani Group Loses $90B in Market Cap; Porsche Lists $148K Car for $18K in Error; Brooklyn Luxury Sales Quadruple; Barclays Boosts Bond Trader Bonuses; Snap Revenue Stalls, Shares Plunge 15%
1. 421A施工截止日或延期4年
Today, New York Governor Kathy Hochul proposed extending the construction deadline for the now-expired 421a tax abatement program by four years, giving developers more time to complete eligible residential projects.
Previously, developers had to complete foundation work by June 15, 2022, and finish construction by June 2026 to qualify for the 421a tax break.
If Hochul’s proposal is approved, developers would gain additional time and flexibility to secure significant tax incentives, which could then benefit tenants or homeowners.
A report from the Real Estate Board of New York (REBNY) noted that approximately 32,000 residential units are unlikely to be completed by the 2026 deadline and may miss out on 421a benefits. Rising labor and construction costs have already caused some developers to abandon projects.
REBNY’s Basha Gerhards stated that New York City urgently needs more rental housing, especially affordable units. An incentive like 421a is crucial to promote development.
Hochul’s proposal to extend the 421a deadline to June 2026 may help many multifamily projects move forward more smoothly.
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2. Blackstone BREIT Hits Monthly Redemption Cap
According to a letter released this week by Blackstone, its BREIT real estate investment trust approved redemptions totaling 2% of net assets—approximately 25% of total investor requests. Bloomberg estimates that redemption requests exceeded $5 billion.
Blackstone’s popular BREIT fund holds marquee properties such as the Bellagio casino hotel in Las Vegas, student housing, and storage facilities. Its strong track record attracted high-net-worth investors.
However, market volatility and rising interest rates in 2022 led to a 13% drop in U.S. commercial property values. As investors sought to cash out, BREIT quickly hit its redemption cap.
In the letter, Blackstone emphasized BREIT’s after-tax performance and well-diversified portfolio.
As an industry leader, BREIT’s redemption challenges may trigger broader concerns.
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3. Adani Group Loses $90B in Market Cap
Gautam Adani, Asia’s richest man, saw his business empire rocked by allegations of fraud and stock manipulation from Hindenburg Research, prompting a mass selloff in Adani Group stocks and wiping out $90 billion in market capitalization.
On Tuesday, Adani Enterprises sold $2.4 billion in stock to broaden its investor base. Gautam Adani personally secured commitments from several Indian business moguls to support the sale.
Brokerage firms said the majority of buyers were high-net-worth Indian individuals, with retail investors making up just 12% of the total.
Rajat Sharma, founder of retail brokerage Sana Securities, said Adani cannot rely solely on wealthy investors to stabilize the market. Regaining retail investor trust is crucial for trading volume and liquidity.
Despite raising $2.4 billion, Adani Enterprises has not restored investor confidence.
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4. Porsche Lists $148K Car for $18K in Error
A Porsche dealership in Yinchuan, northern China, mistakenly listed the price of a Panamera model at ¥124,000 ($18,000) instead of its correct base price of ¥998,000.
Hundreds of eagle-eyed consumers quickly paid deposits hoping to claim the deal. Porsche later confirmed on Weibo that the dealer had listed the wrong price. The company has since contacted all deposit holders and will issue refunds within two days.
In the first half of 2022, Porsche generated $6.2 billion in China, selling 46,664 vehicles—30% of global sales.
The base price of the Panamera is ¥998,000, but buyers thought they had stumbled on a massive discount.
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5. Brooklyn Luxury Sales Quadruple
According to a new report from brokerage Compass, Brooklyn saw 13 home sales above $10 million in 2022—up from just 3 in 2021.
Compass agent Leonard Steinberg noted that while Brooklyn used to be a backup plan for buyers due to affordability issues, it is now a primary choice. Many no longer consider Manhattan, not because of price, but due to lifestyle and community.
Specializing in luxury properties, Steinberg said many wealthy families now prefer to leave big cities, as wealth preservation can be achieved elsewhere.
The most expensive deal was a brownstone in Brooklyn Heights, which sold for $18.3 million.
Brooklyn is increasingly preferred by affluent buyers for its peaceful neighborhoods and high quality of life.
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6. Barclays Boosts Bond Trader Bonuses
Barclays’ fixed income trading division posted record earnings in 2022, prompting the bank to consider increasing bonuses for traders—some may receive up to 15% more.
This year, fixed income revenues could rise another 49% to $7.07 billion, surpassing the previous record set in 2020.
In contrast, equity trading underperformed last year, and those traders may see up to 10% bonus cuts. Investment banking staff may see bonuses slashed by as much as 40%, similar to cuts at Goldman Sachs.
Underperforming employees may receive no bonus at all—an outcome the industry calls getting “a goose egg” or “a bagel.”
Volatility in 2022 benefited fixed income trading, fueling bonus increases.
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7. Snap Revenue Stalls, Shares Plunge 15%
Snap Inc. reported revenue of $1.3 billion for Q4, marking the first time since going public that its quarterly revenue failed to grow.
Worse, the company projected a 10% revenue decline in the current quarter. Shares fell 15% in response.
Apple’s privacy changes have made targeted advertising harder, affecting ad-driven firms like Google, Meta, and Snap.
In addition, worsening macroeconomic conditions have led consumers to spend less and advertisers to cut budgets.
Snap posted a Q4 loss of $289 million, including $34 million in severance-related expenses.
Google and Meta will report earnings later this week. Snap’s results serve as a warning to investors.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.