Vanke boss Yu Liang is getting investors excited about rental homes
It’s a new day in China’s real estate world, as Vanke announces plans to invest in low-yielding home rental projects and their share price surges. Also in the news, Wharf’s spinoff of Hong Kong commercial assets gets a warm welcome on the stock exchange, and Swire gets a leasing boost from KPMG for its Miami project. Keep reading for all these stories and more.
Vanke Aims to Lead China’s Rental Housing Market
China Vanke Co., the nation’s leading property developer, is repositioning its strategy to seek future growth from rental properties as the government encourages development of the fledging residential leasing market in a bid to rein in housing bubbles.
Yu Liang, Vanke’s chairman and chief executive officer, said Tuesday that the company has set its sights on becoming the leading player in the home rental market. Yu’s statement sparked a surge in Vanke’s Shenzhen-traded stock to a record 33.08 yuan ($5) a share during the day. The shares have recorded robust growth so far this year, rising 60% from the beginning of the year. Read more>>
Wharf REIC Shares Open Strong on HK Exchange
Shares in Wharf Real Estate Investment (REIC), which was spun off from The Wharf (Holdings), opened at HK$50.4 a share on their debut on Thursday. Wharf REIC’s key assets include investment properties such as Harbour City and Times Square.
“We believe its fair value is HK$48 per share, based on a 30 per cent discount on our estimated net asset value of HK$68 per share,” said Raymond Cheng, an analyst at CIMB Securities. Read more>>
Swire Miami Project Now Fully Leased
Swire Properties has fully leased its 260,000 square feet of office space at Brickell City Centre after signing leases with Interaudi Bank and accounting and advisory firm KPMG.
Filling up the two new office buildings at Brickell City Centre just over a year after they opened is a good sign for Miami’s office market. The downtown vacancy rate has been declining, and rents have reached new heights. The fairly rapid lease-up of this new space could make a good case for more office development to follow. Read more>>
Alibaba Invests $2.9B in Mainland Hypermarket Retailer
Internet giant Alibaba Group Holding Ltd (BABA.N) said on Monday it would invest HK$22.4 billion ($2.87 billion) for a major stake in China’s top hypermart operator, Sun Art Retail Group Ltd (6808.HK), part of a wider push into offline retail.
As part of an alliance with Auchan Retail S.A. [AUCH.UL] and Ruentex Group, Alibaba would buy the stake from Ruentex while Auchan Retail would boost its stake, the three companies said in a joint statement. Read more>>
Hong Kong’s K Wah Looks to China’s YRD, PRD Regions for Growth
K Wah International, the property developer chaired by casino magnate Lui Che-woo, aims to boost its land bank and chase lucrative acquisition targets as it looks to build premium residential and commercial projects in affluent regions of the mainland.
It is one of several Hong Kong-based developers taking advantage of favourable borrowing costs compared with those available to their mainland counterparts as Beijing tightens restrictions on the overheated property market. Read more>>
UOL Finishes Buyout of SingLand
UOL Group on Tuesday night announced the mandatory unconditional cash offer for all the shares in Singapore Land that it does not already own at S$11.85 each.
The offer for SingLand, 99.7% owned by UIC, was triggered under the chain rule of Singapore’s takeover code after UOL raised its stake in United Industrial Corp (UIC) to more than 50%, gaining statutory control of the latter. Read more>>
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