SOHO Zhang Xin is betting that China’s startup companies will be an important source of rental revenue
Every day Mingtiandi scans the web and curates the day’s biggest stories for you. Here’s what we found today:
Land Prices Soar in China’s 1st Tier Cities as Hopes Rise for Future Boom
In the Chaoyang district of northeast Beijing, a nondescript wall covered in patriotic posters protects one of the city’s most valuable treasures: a dirt field containing nothing but a few scattered trees.
Last month the block sold for 3.3 billion yuan (US$515 million), according to Beijing Municipal Bureau of Land and Resources data, meaning the cost to the developer of each apartment built will be above the price at which nearby homes currently change hands, once a commitment to build a quota of affordable housing is factored in. Read more>>
Startups Get Some Landlord Love in Scramble for Office Tenants
Chinese real estate developers, struggling with a widespread glut of office space, are pursuing a new type of tenant: Startups seeking shared work facilities.
Soho China Ltd., which plans to expand the number of desks in its shared offices almost 10-fold in the next three years hosting companies such as Uber Technologies Inc., last week signed a deal with Greenland Holdings Corp. to help convert the latter’s properties into co-working spaces. Read more>>
Foreign Investors Still Searching for Distress in China Market
Industry oversupply and a continuing anti-graft campaign are pushing up expectations that a rising number of property firms, particularly those that are financially stretched, will have to sell assets cheaply in mainland China. But experts say foreign investors will still find it hard to take advantage of such opportunities.
They are keenly watching how US hedge fund Farallon Capital Management will push ahead with its recapitalisation of debt-ridden developer Kaisa Group Holdings, once a top redevelopment specialist in Shenzhen but now fighting for survival after local authorities banned presales of some of its property projects a year ago. Read more>>
New Platforms Hope to Pool Investments for HK Retail Space
As Hong Kong property prices continue to fall, one new player in the market is exploring a way to cash in by creating a collective investment scheme for street shops – a venture that a veteran property expert says requires skill to succeed in a traditionally high risk sector.
Bridgeway Group is a new Securities and Futures Commission-licensed asset management firm that specialises in collective investment schemes for street shop properties in Hong Kong. Read more>>
CIC Hires Mirvac to Manage Former Investa Portfolio
China’s sovereign wealth fund, China Investment Corp, has agreed to have its freshly purchased Investa assets managed by Mirvac Group, in a move that will further shake up Australia’s commercial office sector.
According to sources a deal is close to being finalised and Mirvac will make an announcement confirming the move shortly, the BusinessNow blog reported earlier. 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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