James Packer is concerned enough over the China arrests to dump his Macau operation
Bankruptcies, gambling busts and co-working booms fill the headlines today as Asia’s real estate world refuses to go quietly into the final days of 2016. James Packer is selling off his Macau operation as key members of his China team remain in mainland jails, while the owners of Hong Kong’s New World Group may be bailing out CSCEC by taking over a failed $3.5 billion Caribbean resort. Read on for all these stories and more.
Crown Resorts to Sell $1.18B Stake in Macau Casino After China Arrests
Crown Resorts Ltd. said it would reduce its exposure to the Chinese market by selling part of its stake in a Macau casino operator, a move that comes as China is pursuing criminal charges against some employees for gambling offenses.
Crown said it would sell shares in Melco Crown Entertainment Ltd., raising 1.6 billion Australian dollars (US$1.18 billion) and lowering Crown’s stake in that company to 14% from 27.4%. Crown said it plans to use the proceeds to reduce debt, fund a special dividend and pay for a share buyback, and that it is “exploring potential options” for part of its remaining holding. Read more>>
Chow Tai Fook Takes Over Bankrupt $3.5B Bahamas Resort
Chow Tai Fook Enterprises Limited (CTFE), a leading Hong Kong-based global conglomerate with a diversified business portfolio – including extensive hospitality experience with resort and mixed-use developments worldwide – today announced it has signed an agreement to own and operate Baha Mar Resort. The signed share purchase agreement (SPA) allows for the acquisition by CTFE of all issued capital from Perfect Luck Assets Limited (Perfect Luck), including those Baha Mar Resort assets previously transferred to the company.
Said Graeme Davis, President, CTFE’s Bahamas subsidiary, “CTFE will dedicate significant, ongoing investment and resources towards the pre-opening and opening of Baha Mar Resort. We will also ensure that the Bahamian people and the region benefit fully from the project, which will create tremendous job and economic stimulus opportunities.” Read more>>
Blackstone Joins With Mirae to Invest $60M in Korean Logistics
New York-based global private equity and alternative asset manager, will acquire two logistics centers in South Korea’s key geographic location in Gyeonggi Province for about 70 billion won ($60 million), a milestone property investment by the world’s largest PEF in Korea after its high-profile purchasing of Capital Tower in Seoul five months ago.
According to sources on Sunday, Blackstone in cooperation with Korea’s Mirae Asset Global Investments Co. recently signed an agreement to buy Anseong Core Logis and Yongin Able Logis. Blackstone, and Mirae Asset will complete the payment by January. Read more>>
US Extends EB-5 Investor Visa Through April
Congress extended the EB-5 program until April 28, marking yet another short-term renewal of the controversial visa program.
The program, which grants foreign investors green cards after they invest at least $500,000 in job-producing ventures, was set to expire on Friday. EB-5 was included in the continuing resolution Congress passed. Ronnie Fieldstone, an Arnstein & Lehr attorney who represents EB-5 regional centers and developers, said the extension will give more time to get a new bill passed. Read more>>
Keppel Land in Share Swap for Vietnam Projects
Subsidiaries of Keppel Land have engaged in a share swap arrangement with a Vietnamese real estate company that will end up with the two of them swapping full ownership of two units.
Keppel Corporation, the parent of Keppel Land, said in a filing to the Singapore Exchange on Tuesday night that one of the deals will see the Singapore conglomerate’s VN Investment Pte Ltd buy a 40 per cent stake in the charter capital of Riviera Cove Joint Venture Limited Liability. Read more>>
Chinese Developers and Financiers Race to Invest in Co-Working Boom
Real estate developers and financial investors are capitalizing on fast-rising demand for leasing of “co-working” spaces in China, as Beijing encourages startups and small businesses in a bid to offset slowing growth at traditional industries.
Developers, including China Vanke (2202.HK), Soho China (0410.HK) and Singapore’s CapitaLand (CATL.SI), are renting out property space that hordes of self-employed persons or small-sized companies then share, company executives said. The lease deals with the startups are usually short-term and are done mainly through specialized operators. 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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