Blackstone and GIC could win a bigger piece of India’s real estate market
Some of the world’s biggest real estate investors may be competing for a rare chance for a $1.8 billion stake in one of India biggest property developers, while back in China the government is setting out new rules for foreign institutions to play a bigger role in the local investment scene. In Hong Kong, buyers are continuing to show an appetite for new homes, despite falling prices, and there are many more stories if you just read on.
Blackstone, GIC Among Likely Bidders for $1.8B India Deal
India’s largest realty firm DLF Tuesday said it has shortlisted few potential investors to sell promoters’ stake in rental arm and expects the proposed deal, estimated at Rs 12,000 crore (US$1.8b), to be signed by early October.
Last October, DLF had announced that its promoters would sell 40 per cent stake in DLF Cyber City Developers (DCCDL). They would be reinvesting a significant part of the amount realised from this deal into DLF Ltd. “We received multiple bids from sovereign funds and global private equity firms. We have shortlisted few,” DLF Senior Executive Director (Finance) Saurabh Chawla told analysts in a conference call. Read more>>
China’s Central Bank Issues New Rules on RQFII
China’s central bank on Monday outlined rules on investment quotas under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme.
RQFII investors seeking investment quotas will be given quotas no greater than a certain proportion of the asset’s size, if they qualify for the scheme, the People’s Bank of China said in a notice on its website. Read more>>
HK Project Sells Out 300 Apartments Despite Property Slump
A China Overseas Land & Investment Ltd. project restricted to Hong Kong residents sold out all 300 apartments on the first day, the company said, while two other developers launched new projects as prices rebounded from earlier this year.
China Overseas’ One Kai Tak project, located near the site of the former Hong Kong airport in Kowloon, was bought in a government land tender in 2013 for HK$4.5 billion ($580 million), under an initiative known as “Hong Kong Property for Hong Kong People,” designed to prevent overseas buyers from bidding up prices. Read more>>
Evergrande Real Estate Debt Payments Rise 60%
Building up the second-biggest corporate debt pile in China does come at a cost.
China Evergrande Group 333.HK, the nation’s No.2 real estate developer reported last week that its borrowings grew to $57 billion by the end of June, including so-called perpetual bonds. Only state-owned Petrochina (0857.HK) owes more.
The crushing impact of that burden became clear in its first-half results as despite reporting a 12.6 percent jump in sales, Evergrande said that income attributable to shareholders slumped 74 percent to 2.46 billion yuan ($368 million). Read more>>
Carlyle, TPG Partner with Local Players in $2B Bid for China McDonald’s
Private equity firms Carlyle Group (CG.O) and TPG Capital have teamed up with two separate Chinese state companies to bid for McDonald’s (MCD.N) outlets in China and Hong Kong in a deal worth between $2 billion and $3 billion, four people familiar with the matter said.
The sources said the global buyout firms are pairing up with strategic bidders that more closely fit the profile McDonald’s has said it is looking for; long-term partners, rather than private equity firms, which typically cash out after a few years. Read more>>
Chinese Developer Greaton Wins Approval for $198M Sydney Project
Chinese developer Greaton, formerly known as Zhengtang Group, has won approval for its A$260 million ($198M) residential project in Sydney’s northwestern suburb Epping, joining other Chinese players such as Poly and Chiwayland in an area popular with Asian buyers.
The company purchased the 5170sq m site from Australian private developer Grocon in January, for a reported $60m. Greaton has also emerged as the buyer of Grocon’s $700m hotel project The Ribbon, at Sydney’s Darling Harbour. Read more>>
Goldin Forms HK$20B JV with Chairman to Buy More Sites
Goldin Financial Holdings on Monday announced it would form a joint venture with its chairman to acquire land in Hong Kong and China through government tenders at a budget of HK$20 billion.
In a filing to the Hong Kong stock exchange, the company said it would take a 60 per cent stake in the joint venture while chairman Pan Sutong holding the remainder. 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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