PWC’s Greater China business will have fewer developer audits to worry about
In today’s roundup of regional news headlines, accounting firm PwC is reportedly set to stop auditing private Chinese developers, Soho China incurs a fine for electricity gouging in its home patch of Beijing, and Dyson officially opens its global headquarters in Singapore with the promise of a billion-dollar investment over four years.
PwC Plans to Stop Auditing Private Chinese Developers
PricewaterhouseCoopers plans to gradually exit auditing Chinese private property developers, according to a REDD report citing two sources from two private developers that hired PwC as their auditor, and two sources close to PwC.
After China Evergrande’s troubles last year, PwC became cautious about signing off on the 2021 annual financial statements for some developers, REDD said, citing three of the sources. PwC has resigned from auditing several developers’ 2021 financial results, including Powerlong Real Estate, Ronshine China and Hopson Development. Read more>>
Soho China Fined $18M for Gouging Beijing Tenants
Fifteen Beijing-based property management firms under office developer Soho China were fined a combined RMB 115 million ($18.1 million) on 21 March for charging their clients electricity rates higher than the normal tariff, the Beijing market regulator said.
Chinese law states that “no businesses or individuals may levy an electricity surcharge on consumers”. The company’s Shanghai subsidiaries were penalised RMB 86.64 million last December for the same offence. Read more>>
Dyson Opens Singapore HQ, Vows Major Investment
Dyson will invest S$1.5 billion ($1.1 billion) in its Singapore operations over the next four years, the technology company announced at the official opening of its new global headquarters at St James Power Station on Friday.
“Dyson’s expansion here is possible because of the wonderful inventiveness and enthusiasm of the young Singaporean engineers and scientists who have joined us,” founder and chairman James Dyson said at the event. “You can feel the ambition of this ingenious country. It reaffirms our belief that Singapore is the right place for high-tech, research-intensive businesses such as Dyson.” Read more>>
China Builders Face Worst Earnings In Decade
Investors in Chinese developers are bracing for one of the worst earnings seasons in more than a decade — and even then, they’re unlikely to get the full picture right away.
At least nine property firms, including defaulters China Evergrande and Kaisa Group Holdings, expect to miss this month’s deadline for reporting audited annual results — the first round of earnings since a credit crunch sent shockwaves through the industry and triggered a wave of defaults. Read more>>
Singapore’s QIP Targets Japan Multifamily Housing
Viewed as a stable asset class that is uncorrelated to pandemic-related risks, Japan’s multifamily housing sector provides resilient income and attractive risk-adjusted returns with rising demand, according to real estate private equity firm Q Investment Partners.
Due to Japan’s stable inflationary environment and reliable macroeconomics, the multifamily housing sector has been seen as very attractive to institutional and sophisticated investors alike, said QIP co-founder and CEO Peter Young, citing Blackstone and Allianz Real Estate as examples. Read more>>
China’s Shandong Ruyi Exits Aussie Agricultural Land Investment
China’s multibillion-dollar textile giant Shandong Ruyi has finally exited its once controversial holding in Australia’s largest irrigated cotton property, Cubbie Station, selling its 51 percent interest to funds controlled by Macquarie Group.
The Chinese company had a decade-long involvement with the station and in its early years of ownership came under political pressure to sell down its longtime 80 percent stake to 51 percent. Read more>>
Indian Real Estate Giant Hiranandani Raided in 3 Cities
India’s income tax department on Tuesday searched 25 premises of the Hiranandani Group, one of the country’s largest developers, in an operation that began early in the morning and spanned three cities: Mumbai, Bengaluru and Chennai. The searches, according to sources, were carried out over suspected tax evasion by the group.
Officials searched offices, sales galleries and residential premises belonging to top officials working for the group, including the chief financial officer. Read more>>
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