Archinect - News

China will build replacement for Gensler soccer stadium design in Guangzhou following Evergrande debt scramble

2024-03-19T11:51:00-04:00

Chinese state-owned construction contractor will build China’s largest soccer park in Guangzhou on the site where struggling Chinese property developer China Evergrande Group was supposed to build its soccer stadium. China Construction Fourth Engineering Division won the engineering procurement construction contract to build the Guangzhou Football Park with a CNY2.4 billion (USD328 million) bid, the unit of China State Construction Engineering announced on its official WeChat account yesterday.

The site was originally meant for a 100,000-seat stadium designed by Gensler. Evergrande, the developer now embroiled in a Lehman Brothers-like freefall, had already begun construction before the project was halted and eventually taken over by the government in 2021. The new design from the Guangdong Architectural Design and Research Institute has a reduced capacity of 73.000, making it still the largest soccer-only stadium in China.

Previously on Archinect: One of China's largest property developers is roiled in a Lehman-esque debt spiral

The estimated cost of the original design it replaces was $1.7 billion. Gensler, meanwhile, has begun preliminary work assessing the potential for a new stadium on the site of a disused Westfield shopping center in its hometown of San Francisco.

Adam Neumann is attempting to buy his way back into WeWork

2024-02-06T20:00:00-05:00

Five years after driving WeWork into the ground, co-founder and ousted CEO Adam Neumann has now hatched a plan to buy it out of bankruptcy. In a letter to WeWork’s advisers obtained by The New York Times, Neumann and his new real estate business, Flow Global, express interest in buying the co-working space solution — but claim WeWork has been ignoring attempts to get more information so they can come up with a bid.

WeWork, meanwhile, is beginning to walk away from even more properties under the direction of new CEO David Tolley after announcing an initial list of 40 that would be relinquished in November.

Neumann had cited outside scrutiny as his main reason for leaving the company in September 2019. His attempts since December to purchase the company through his new housing startup Flow Global constitutes the second such push since Bay Area financier Dan Loeb funded the project in August 2022. The return-to-office downturn is being cited as their principal motivation. In a letter to WeWork advisers, Neumann's attorney said it would be a "value-maximizing transaction for all stakeholders."

WeWork currently owes about $18.6 billion in debts, according to their Chapter 11 bankruptcy filing from November.

China Evergrande ordered into liquidation after $300 billion debt spiral

2024-01-30T19:15:00-05:00

A court in Hong Kong has ordered the winding up of Evergrande Group, the world’s most indebted property developer, dealing another blow to investor confidence as China’s ailing real estate sector continues to weigh on its economy. The liquidation order, made by the city’s High Court on Monday, comes after the embattled Chinese real estate giant and its overseas creditors failed to agree on how to restructure the company’s massive debt during talks that lasted for 19 months.

Evergrande’s liquidation could also set the stage for an unprecedented political showdown between Hong Kong and the mainland, as Reuters speculated on Monday.

The company had amassed over $300 billion in public and private debts since being ordered into negotiations in 2021. Overseas creditors are currently owed a reported $25 billion. Dexter Roberts, a senior fellow at the Atlantic Council, was one of several experts to compare its collapse to the failure of Lehman Brothers in the American market in 2008.

AIA releases study on student debt and its impact on demographic groups within the industry

2022-12-07T12:30:00-05:00

The American Institute of Architects (AIA) has released a new study examining the impact of student debt across different demographic groups in the architecture industry.

The organization used the research company Ipsos to conduct an interview survey of over 700 members who provided insights on how everything from employment to life choices was affected by the repayment of educational loans.

AIA EVP and CEO Lakisha Ann Woods said: "This data provides critical insight into how student debt is harming the profession. Through a better understanding of how debt impacts different demographic groups among our membership, this data will help us break barriers to the profession that disproportionately impact Black, Indigenous, and people of color. Our goal is to propel all architects to new professional heights."

Among other data, the survey found:

Nearly three-quarters (73%) of all AIA membe...

WeWork is cutting back as losses continue into Q3

2022-11-14T17:02:00-05:00

WeWork said Thursday that it was going to close roughly 40 “underperforming” locations in the United States and tempered its revenue forecast for the year, highlighting the challenges the co-working company still faces after its near collapse and subsequent bailout in 2019.

The company reported a pre-pandemic level matching 71% occupancy rate for Q3 but will fall short of previously projected revenue values for the year owing to “lower than expected” growth in the U.S., Canada, and Japan. Its own S9-designed Dock 72 corporate offices in Brooklyn were also reduced as a result of the financials. In an earnings call, CEO Sandeep Mathrani pointed to the “headwinds in the office sector” as a potential advantage as it looks to rebound and pay back debts to SoftBank and JPMorgan before 2025.

39 buildings on a massive Chinese manmade island have been ordered to be demolished

2022-01-04T20:31:00-05:00

Evergrande Group, the world’s most indebted developer, was last week ordered to demolish 39 buildings on Ocean Flower Island, a project comprising three man-made islands developed by the company in China’s southern Hainan province, within 10 days.

The developer was recently forced to hand over control of its $1.7B football stadium in Guangzhou after spending much of the past year attempting to stave off creditors looking to collect on the company’s reported $310 billion in liabilities, which has recently led to another round of public protests.

The massive development in Hainan province is one of the world’s largest manmade islands and has been the recipient of over $13 billion in Evergrande funds since breaking ground in 2015. The recent order by the Danzhou municipal government stated that Evergrande had illegally obtained building permits to the 435,000-square-meters of development in question, and follows up on a November promise from the city to sell any properties owned by the overleveraged company, according to a report in The Guardian.

Chinese government takes control of incomplete, $1.7 billion Evergrande Guangzhou Football Stadium

2021-12-06T19:11:00-05:00

Chinese authorities have taken over the Gensler-designed, under-construction Evergrande Guangzhou Football Stadium, commissioned by indebted property developer Evergrande, which was due to become the world’s largest football stadium by capacity, according to Reuters.

The Chinese government will either sell or take over the stadium via the state-owned Guangzhou City Construction Investment Group. As reported by Reuters, construction on the stadium has been halted for at least three months, in which Evergrande has been struggling to meet repayments on over $300 billion of debt.

Previously on Archinect: One of China's largest property developers is roiled in a Lehman-esque debt spiral

The Gensler-designed, 100,000-capacity soccer stadium was planned to be the home ground for professional club Guangzhou Evergrande. Work on the arena began in April 2020, with an estimated cost of $1.7 billion. It was set for completion by the end of 2022.

One of China's largest property developers is roiled in a Lehman-esque debt spiral

2021-10-19T16:54:00-04:00

Worries about the giant developer’s ability to repay its debt and a total of $300 billion in liabilities have put global investors on edge. Beyond the company itself, there are worries about a potential spillover into the rest of China’s real estate industry or economy.

Evegrande missed another round of payments last Monday, setting it back again ahead of Wednesday’s scheduled $47.5 million interest payment. Investors are blindly looking for a government bailout, but financial experts remain uncertain as to its prospects. The company says it plans to go forward with a 12 billion yuan ($1.86 billion) football stadium project from Gensler in spite of the huge debts it owes to more than 250 different institutions worldwide.

Evergrande was recently behind the financing for Harvard GSD’s HouseZero initiative. Currently, the company has an estimated 800 projects underway in mainland China in addition to plans announced earlier in the year that would provide 268 individual units in a $4 billion “Versailles-like” villa along Hong Kong’s Yueng Long wetland.

New York's subway system could be broke by 2025 as remote work continues

2021-09-29T20:40:00-04:00

New York’s Metropolitan Transportation Authority, the largest U.S. mass-transit provider, is running on borrowed time, facing budget and revenue challenges as federal aid is set to tap out in 2025, State Comptroller Thomas DiNapoli, said in a report Tuesday.

The announcement comes on the heels of a rough summer for the MTA, which is only now seeing its ridership climb past 50% of pre-pandemic levels as it weighs a controversial congestion pricing plan that would add $1 billion in revenue a year beginning in 2023.

Interim boss Sarah Feinberg stepped down in late July, creating a leadership vacuum for the agency, which is now projecting $3.5 billion budget deficits that will run into 2024 and 2025. The MTA currently owes about $48 billion in debt.

The MTA will now have to grapple with the ramifications of the remote work revolution. According to the state’s report, annual fare revenues could decrease by $500 million if the typical rider adopts a three-to-four-day telecommute.

A New Advocacy Group, "Architecture is Free," is Pushing for Reforms as Architecture Continues to Feel Pressure from Within and Without

2021-04-14T13:23:00-04:00

With the advent of the "new normal" beginning to see its effects in the Architecture world, one newly formed industry non-profit is seeking to capitalize on this transition in order to enact a slate of changes it hopes will impact the design community for years to come.

Under the monicker "Architecture is Free" the 40-member group offers a host of initiatives aimed at students and younger professionals it views as part of a growing cadre of people within the industry who have been systemically undercut in their efforts to join ranks with professionals a generation or two their senior whose success and accomplishments, they feel, are unattainable under the current "clubbish" atmosphere that plagues the field.

Many prominent names in the field have spoken out about necessary reforms over the past decade or so, including Denise Scott Brown, who serves as one of AIF's board members.

Learning from 'Learning from Las Vegas' with Denise Scott Brown, a 3-part interview series previously pub...

Fabricator of Louvre Abu Dhabi's lattice dome declares insolvency due to the project

2018-11-27T18:48:00-05:00

Waagner-Biro, the Austrian steel engineering company that built the dome of the Louvre museum in Abu Dhabi, has announced its insolvency and is fighting to save parts of its business by selling off subsidiaries. Austrian press reports say that delays in payment and spiralling costs of the Louvre project were chiefly to blame for the company’s struggles.

Established in 1854 as a locksmith, Waagner-Biro has played a significant role in architectural steel engineering. Some of their high-profile projects include the spiraling roof of the Great Court in the British Museum, the dome of the Reichstag in Berlin, and a stage system for the Sydney Opera House, to name a few.

The housing crisis isn't sparing smaller cities in Middle America

2018-08-08T18:31:00-04:00

Ten years after the housing collapse during the Great Recession, a new and different housing crisis has emerged. Back then, people were losing their homes as home values crashed and homeowners went underwater. Today, home values have rebounded, but people who want to buy a new home are often priced out of the market. There are too few homes and too many potential buyers.

NPR takes a closer look at the impact of the housing affordability crisis in midsized, fast-growing cities, like Des Moines, IA, Durham, NC, and Boise, ID—far away from the usual, well documented housing hot spots of the big coastal cities.

Only $90 for Frank Gehry's wisdom?

2017-02-21T13:32:00-05:00

Don't tell grad students carting around six-figure debt, but those who wish to learn from one of the masters of architecture can now do so for $90. MasterClass, a San Francisco-based educational video company, is now taking pre-orders for an online class taught by none other than Frank Gehry himself. Students can sign up for the class, which offers "video lessons from the instructor, interactive exercises, course materials, peer interaction, and more." Watch the trailer below to see what you'll likely learn as Frank winds his way through his model archive (and memories of nearly six decades of professional practice)...

The hedge fundification of American universities

2016-03-11T14:27:00-05:00

Have you heard the latest wisecrack about Harvard? People are calling it a hedge fund with a university attached [...] Though the exact figure is hard to determine, experts I consulted estimate that over $100 billion of educational endowment money nationwide is invested in hedge funds, costing them approximately $2.5 billion in fees in 2015 alone. The problems with hedge funds managing college endowments are manifold, going well beyond the exorbitant...fees they charge for their services.

"The time has come for students to connect the dots between ballooning student debt, the poor treatment of campus workers, and the obscene wealth of hedge fund oligarchs."

A rallying cry for a divestment movement to oppose hedge funds and their involvement with academia, the article discusses the relatively new relationship between universities and high risk investing. Not only are money managers – and often university trustees – making off with obscene profits, the finance industry has actively lobbied against policies "designed to curb inequality."

For more on the implications and ramifications of academia's historically-unprecedented flirtations with finance, check out these links:

Greek museums can't afford to keep the doors open

2015-07-09T13:51:00-04:00

Major public cultural institutions in Greece are on the point of collapse, say leading Greek art professionals, as concerns mount that the country faces insolvency after 61% of the population rejected bailout proposals earlier this week made by international creditors.

Architecture in crisis: reports from Greece

2015-07-06T17:00:00-04:00

The dust is yet to settle in Greece, as the pronounced “No!” of yesterday’s referendum reverberates across Europe. The vote marked a clear rejection by the Greek people of enforced austerity as the price for staying in the Eurozone. It also signaled continued confidence in Alexis Tsipras and the Syria government, despite hope from the leaders of Europe’s surplus economies for a regime change.

With reports from Athens detailing a grim scene of shuttered ATM’s and closed factories, the country’s future remains uncertain.

Many have compared the current situation to the great depression of the 1930’s, and it’s clear that no economic sector is immune to its ramifications – let alone architecture, a field markedly tethered to economic undulations. Archinect reached out to a couple of its members to get a pulse on what’s happening, as well as what it’s been like to live under austerity for nearly a decade.

“The future of architecture in Greece if the economic crisis is not handled,” wrote C...

Sydney architecture intern underpaid almost $7000

2015-03-18T15:49:00-04:00

A student was underpaid almost $7000 during an internship with a Sydney firm of architects, a Fair Work Ombudsman investigation has found. The student was completing a masters degree in architecture when he was paid $12 per hour for six months of full-time work. His duties included architectural drawing, consulting with clients and and conducting site visits...the student, aged in his 20s,... was short-changed $6830.

According to Australian labor laws, the student was performing work that was not part of his architectural education and should have received minimum wage payment. Australia's minimum wage is $16.88 (in comparison, the US minimum wage is currently $7.25/hr) and after the student's graduation his payment should have risen to $21.19 an hour.

This news is the latest in a gathering storm surrounding the abuse of intern labor in architecture and other fields. For example, former interns at the publisher Condé Nast recently won a lawsuit against the firm, collecting a total of $5.8 million for unpaid labor (divided among 7,500 people).

The issue is part of a larger, systematic problem that inhibits young people at the nascence of their careers. In conjunction with the massive loans need to get educated, un- and underpaid internships are an impossible burden to shoulder for many aspiring architects, yet are often presented as a normal and necessary aspect of getting into the profession. For...

Greece protests over government plans to sell off historic national buildings

2014-03-19T20:55:00-04:00

Greece's cultural gems have become the focus of renewed protest on the streets of Athens following the cash-strapped government's announcement of plans to include prime properties around the Acropolis, and other landmark buildings, in its privatisation programme. Furious opponents marched through the city centre at the weekend to denounce the "illegal sale" of the country's heritage.

In Detroit, half the street lights could go dark

2012-05-25T14:02:00-04:00

The city is deep in debt; it's got a state-appointed board managing its finances, so it's gotta cut services it can't afford. Services that it can't afford in part because it's a city built for two million people that's now home to just over 713,000. So street lights could be a luxury Detroit can't completely afford.

Obama only 8 years out of student loan debt #dontdoublemyrate

2012-04-24T20:07:00-04:00

For the first eight years of our marriage, [Michelle and I] were paying more in student loans than what we were paying for our mortgage. So we know what this is about. And we were lucky to land good jobs with a steady income. But we only finished paying off our student loans—check this out, all right, I’m the President of the United States—we only finished paying off our student loans about eight years ago.

#dontdoublemyrate