Some Asian investors see Brexit as a time for London bargain-hunting
Half a dozen UK property funds have already suspended trading, but for some Asian investors the Brexit crisis is bargain hunting time, according to a recent report. Plus, officials in Beijing are getting just as tired of the Vanke custody battle as the rest of us, a mainland logistics developer moves forward with a a $433 million IPO and much more. And it’s all here waiting.
Asian Investors Seen Shopping for Brexit Bargains
Some Asian institutions and wealthy investors are eyeing London property despite turmoil in the market following Britain’s decision to leave the EU, with the subsequent plunge in sterling among the factors making prized assets more attractive.
Panicking retail investors concerned about a possible meltdown in British commercial real estate prices tried to pull money out of property funds, triggering the suspension of 18 billion pounds ($23.4 billion) of such funds this week, the biggest since the 2008 financial crisis. Read more>>
Beijing Officials Said to Raise Concerns Over Vanke Battle
A boardroom battle at China’s leading property developer is into its seventh month, exposing tensions between state control and market forces, and Beijing now appears to have had enough, executives and market experts say.
Late last year, financial conglomerate Baoneng amassed around a 24 percent stake in China Vanke Co Ltd (000002.SZ) (2202.HK), a $30 billion homebuilder for the middle classes, prompting speculation of a hostile bid. It has since added more shares and sought to oust Vanke’s board. Read more>>
China Logistics Predicted to Price $433 Million IPO at Top End
China Logistics Property Holdings Co., the warehouse developer backed by Carlyle Group LP, is poised to raise about $433 million in its Hong Kong initial public offering, according to people familiar with the matter.
The Shanghai-based company plans to price its sale of 1.04 billion shares at HK$3.25 apiece, the people said, asking not to be identified as the information is private. China Logistics Property offered the shares at HK$2.55 to HK$3.25 each, according to terms for the deal obtained by Bloomberg earlier. Read more>>
CITIC Telecom Plans Two New Mainland Data Centes
CITIC Telecom International CPC, a subsidiary of CITIC Telecom (1883) that provides information and communications technology solution services, said it is to open two more data centers in the mainland this year.
The firm currently runs 27 data centers around the globe, of which eight are located in the mainland. A new Guangdong center will be opened in September and another one in Beijing by the end of the year. Read more>>
HK Retail Landlords Offering Lower Rents on Shorter Leases
Hong Kong’s retail property market is now experiencing some of weirdest phenomena of recent times, as landlords of ground-level shops not only slash rents significantly, but also offer extremely short tenancy periods, even in prime locations.
The trend comes at a time when the battered retail sector, which heavily relies on tourism spending, is showing few signs of recovery. Read more>>
Poly Plans AVIC Acquisition as Consolidation Continues
The latest restructuring of two state-owned property companies, announced this week, signals renewed momentum in the consolidation of the real estate industry, according to analysts.
Poly Real Estate Group Co and AVIC Real Estate Holding Co have become the latest state companies to announce merger plans, amid President Xi Jinping’s campaign to “forge bigger, and stronger SOEs“. 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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