Li Ka-shing sees HK home prices continuing to rise this year
Hong Kong’s richest man predicts the city’s home prices will continue to climb in 2017, despite government curbs and a surge of supply. Also in the news today, a Chongqing developer hopes to make a £500 million deal in London, and GLP buys a Japan site for $1.1 billion. Read on for all these stories and more.
Li Ka-Shing Sees HK Home Prices Rising Despite Curbs
Hong Kong’s richest man Li Ka-shing expects property prices in the city will rise “a little bit” this year, even as the government takes steps to cool the world’s costliest real estate market.
The government in November increased the stamp duty to 15 percent for all residential purchases, excluding first-time buyers who are permanent residents. The curbs initially sent developer stocks tumbling – including shares of Li’s Cheung Kong Property Holdings Ltd. — as investors assessed the effect the new rules would have on turnover and value. Read more>>
Mainland Clamp Down Could Slow Hong Kong Acquisitions
Sales of top quality commercial buildings costing multi-billions of Hong Kong dollars are expected to fall this year as Beijing’s tightened capital controls could stall mainland corporates acquiring overseas assets.
The latest policy will reduce the number of deep-pocketed mainland enterprises making property purchases in Hong Kong, which has emerged as a favoured investment destination. Read more>>
Chongqing Developer Bids for £500 Mil Stake in London Cheesegrater
A Chinese tycoon is making a daring bid to buy a £500 million stake in the Cheesegrater — the Square Mile’s tallest tower — the Standard understands.
Joint developer British Land launched a secretive sale of its 50% share in the landmark building late last year through agents Cushman & Wakefield, aiming to funnel the proceeds into other projects. But the auction of the trophy asset — as well as a post-Brexit plunge in the pound — has heightened the attraction of London as a home for overseas cash, particularly from Asia and the Middle East. Read more>>
Mainland Oil Baron a Key Backer of Evergrande Re-Listing Plan
In an eye-catching deal, China Evergrande Group (03333.HK) introduced eight strategic investors who will contribute 30 billion yuan for a combined 13.16 percent of the enlarged equity interest in the firm’s property unit Hengda Real Estate.
The transaction values Hengda at 228 billion yuan (US$33.3 billion), surpassing top developer China Vanke’s (02202.HK) 224 billion yuan market capitalization. Read more>>
GLP Buys Greater Tokyo Site for $1.1 Bil
GLP, the leading global provider of modern logistics facilities, has secured a strategic land parcel for long-term logistics facilities development in Greater Tokyo. GLP Sagamihara will be developed in phases and ultimately provide over 655,000 square meters (“sqm”) (7 million square feet (“sq ft”)) of total gross floor area across six buildings. GLP expects to commence the first phase of construction in 2020 following a sale-and-leaseback arrangement with the seller. The total investment cost of GLP Sagamihara is JPY133 billion (US$1.1 billion1). GLP intends to undertake this development within its fund management platform.
Sagamihara has emerged as a major logistics hub driven by a lack of quality logistics space and available land parcels in metropolitan Tokyo. Market absorption in this sub-market has been strong, with two of GLP’s recent developments in the area – GLP Atsugi II and GLP Ayase – fully pre-leased approximately a year prior to completion. Read more>>
Sino Land in HK$3B Hotel JV With Walter Kwok’s Empire Group
Sino Land (0083) said yesterday the development cost of its joint venture Ocean Park Fullerton Hotel project is estimated at HK$3 billion, with the group forking out HK$1.8 billion. The balance will be shouldered by Empire Group Holdings, founded by former Sun Hung Kai Properties (0016) chairman Walter Kwok Ping-sheung.
The hotel project is being undertaken by their joint venture vehicle Parkland, held 60 percent indirectly by Sino Land and 40 percent by Empire Group. Read more>>
Singapore’s Perennial Takes Call Option on 20% Stake in £1B London Project
Singaporean developer Perennial Real Estate has secured a call option to acquire a 20% stake in the £1bn development at 1 Undershaft, EC3.
The property and healthcare company has struck a deal to secure a right to acquire the stake in Aroland Holdings, the British Virgin Islands-incorporated company which owns the existing building and has received planning consent for a new 1,000 ft tower. 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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