Vanke is ready to float its property services unit on the Hong Kong exchange
In today’s roundup of regional news headlines, a property services unit of China Vanke lines up a billion-dollar IPO, Singapore-based GLP buys a California warehouse, and the Hong Kong bourse asks Evergrande to ensure management integrity before stock trading can resume.
Vanke Property Services Unit Targets Up to $1.5B in IPO
Onewo, the property services unit of developer China Vanke, has received the go-ahead from the Hong Kong stock exchange’s listing committee for an initial public offering and will start the investor education process this week, said a source close to the transaction.
The Shenzhen-based firm is aiming to raise between $1 billion and $1.5 billion, with a share sale scheduled for later this month, said the source, who is not authorised to speak publicly about the deal. Onewo’s IPO schedule could change, as it is subject to market conditions. Read more>>
GLP Buys California Warehouse for $158M
Singapore-based GLP is acquiring a southern California warehouse from Clarion Partners for $158 million, more than three times what Clarion paid for the property in 2016.
The 580,000 square foot (53,884 square metre) distribution centre, located on a 28 acre (11.3 hectare) site at 3900 Indian Avenue in the Inland Empire city of Perris, is fully leased to third-party logistics player Kenco Group. Read more>>
HK Bourse Asks Evergrande to Rule Out Risks to Management Integrity
The Hong Kong stock exchange has asked debt-laden China Evergrande to mitigate any risk to management integrity as part of the steps towards a resumption in stock trading, the company said Thursday.
The guidance comes weeks after the developer’s chief executive and finance head stepped down following a probe that found they were involved in siphoning loans secured by the property services unit to the company. Read more>>
Fund Managers Shun China Property Bonds on Default Risks
Fund managers are cutting their holdings in Chinese property bonds by half or even more as the sector lurches from crisis to crisis and blows a deep hole in asset managers’ performance.
According to Refinitiv data, 204 out of 242 dollar-denominated bonds issued by Chinese property firms are trading well into distressed territory below 50 cents on the dollar, hammering funds and limiting patience to wait for a recovery. Read more>>
Chinese Stocks Could Plunge by 20% if Real Estate Slide Continues
China’s struggling real estate sector could significantly drag down the economy and the stock market if authorities don’t provide enough support, Morgan Stanley analysts said in a report Wednesday.
The Shanghai composite has fallen by more than 12 percent so far this year. Several economists have slashed their China GDP growth forecasts to near 3 percent or less this year as COVID-19 controls and the property slump weigh on growth — officially targeted at around 5.5 percent this year. Read more>>
Chinese Property Developer Profits Slumped 87% in First Half
China’s property crackdown has sunk developers to lows not reached since the 2008 global financial crisis.
The 136 Chinese real estate companies that report their earnings to Hong Kong and mainland exchanges earned a total of $2.5 billion in annual profits in the first half of this year, according to Bloomberg calculations. That figure marks an 87 percent decline from the $19.2 billion in profits those same companies earned in the first half of 2021, and a 53 percent drop from the $5.3 billion in profits they earned in the latter half of last year. Read more>>
China’s Property Sales Extend Slump Amid Vicious Cycle
China’s beleaguered real estate market continued to slump in August, as government attempts to stabilise the sector failed to boost consumer confidence and demand.
Last month, sales of new properties by China’s 100 biggest developers totalled RMB 519 billion ($75 billion), down 32.9 percent year-on-year and 0.8 percent from July, according to data released by consultancy China Real Estate Information Corp on Wednesday. Total sales value in the first eight months of this year almost halved from the same period in 2021, logging a 47.4 percent decline. Read more>>
DigitalBridge, Equinix Vie for Time Dotcom’s Data Centre Unit
US digital infrastructure firms DigitalBridge and Equinix have been shortlisted into a final round of talks for the data centre business of Malaysia’s Time Dotcom, according to people familiar with the matter.
DigitalBridge and Equinix outbid other companies in the industry and investment funds, the people said, asking not to be identified discussing private matters. The two companies are seeking to sign a deal for the assets, known as Aims Data Centre, within the next few weeks, the people said. Read more>>
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