The CapitaGreen office tower in Singapore
While Shanghai may not have supplanted Hong Kong as Asia’s financial centre, it seems to be surpassing its southern neighbor for land values, judging by recent auction prices. Plus CapitaLand Commercial Trust doubles down on its own project in Singapore, and Kaisa finally strikes a deal with its bondholders after defaulting last year. Read on for all these stories and more.
Shanghai Land Prices Soar Past HK as Island’s Property Market Slides
Residential land prices in Hong Kong have fallen below the levels for some sites in mainland China, indicating the city’s property correction is deepening and the price gap with major cities like Shanghai is narrowing.
On Wednesday, a residential site in Zhoupu, a suburban area in the Pudong district of Shanghai, was sold for a higher-than-expected 5.45 billion yuan to Poly Real Estate. The price equates to 43,670 yuan per square metre, or 4,057 yuan per square foot. Read more>>
CapitaLand Commercial Trust Buys Tower Stake for $285M
CapitaLand Commercial Trust, Singapore’s largest office real estate investment trust by value, is buying the remaining 60 percent stake in CapitaGreen, an office tower in the city-state’s central business district.
CapitaLand Commercial will buy the stake for S$393 million ($285 million) from its partners, CapitaLand Ltd. and Mitsubishi Estate Asia Pte, the company said in a filing to the stock exchange on Monday. That compares with an average of two independent valuations for the 40-story tower of S$1.6 billion, or S$2,276 per square foot, over the remaining land tenure of 57 years. Read more>>
Kaisa Restructuring Approved by Bondholders
Kaisa Group, the Shenzhen-based property developer which defaulted on its US dollar-denominated bonds, has reached a milestone in its yearlong debt restructuring negotiations after a plan was formally approved by bondholders.
In a filing to the Hong Kong stock exchange on Sunday, the company said its offshore debt restructuring plan was “duly passed with the approval of the requisite majority of the Scheme Creditors,” at scheme meetings held by courts in Hong Kong and the Cayman Islands on May 20. Read more>>
Wang Jianlin Says He Feels Sorry for Wanda Commercial Shareholders
Billionaire Wang Jianlin, chairman of Dalian Wanda Group, spoke publicly over the weekend for the first time about the ongoing privatisation of his Hong Kong listed property arm.
In an interview with Chinese state-run CCTV on Sunday, Wang said Dalian Wanda Commercial Properties “must be taken private,” as its undervaluation in Hong Kong market makes Wang “feel sorry” to shareholders and investors. Read more>>
Fosun to Open $1.7B Sanya Atlantis Resort in 2017
Chinese conglomerate Fosun Group will invest some 11 billion yuan ($1.68 billion) in a large, high-end tourism property project in Sanya, South China’s Hainan province, sina.com.cn reported on Sunday.
The 530,000-square-meter Sanya Altantis, expected to open in 2017, will offer services ranging from hotel, dining, shopping to entertainment, exhibition and marine culture experience. Read more>>
Japan’s Cheapest Credit Triggers Biggest Building
Japan’s biggest real estate companies are borrowing record amounts of cheap cash to pay for the nation’s tallest skyscrapers yet.
Mitsubishi Estate Co. plans to build a 390 meter (1,280 feet) tower with 61 floors above ground in front of Tokyo Station, making it the nation’s biggest building. That and 27 other urban renewal projects in Japan’s capital will generate 10 trillion yen ($91 billion) for the economy, according to a government statement this month. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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