KWG now has one less asset in Ningbo
Guangzhou developer KWG has sold its 50 percent stake in an eastern China residential project to Midea Real Estate, with that story leading Mingtiandi’s collection of real estate headlines today. Also making the news, South Korean leaders aim to boost the country’s housing supply and a Hong Kong investment firm sells its stake in a hotel in Shanghai’s Caohejing area.
Distressed Developer KWG Sells 50% of China Residential Project to Midea Real Estate
KWG Group Holdings Limited announced on Wednesday that it has agreed to sell a 50 percent stake in a residential project in Ningbo, Zhejiang Province, for RMB 400 million ($56.4 million).
Midea Real Estate Holding made its own announcement of its acquisition of the 118,677 square-metre (1.3 million square foot) residential project just days after it was reported to have taken over Dalian Wanda Group’s stake in a Guangdong mall. Read more>>
South Korea President Vows to Ease Regulations to Boost Home Supplies
South Korea’s President Yoon Suk Yeol on Wednesday vowed to relax tax rules on multiple homeowners and ease rules governing the reconstruction of apartment buildings in a bid to curb housing costs and boost supplies.
His comments come three months ahead of general elections in April. Despite a recent property downturn, housing costs remain stubbornly high in the country and are cited as a key reason for discouraging marriage and childbirth. Read more>>
ITC Properties Sells Stake in Shanghai Hotel
Hong Kong-headquartered investment holding company ITC Properties Group announced on Wednesday that it is selling its 49 percent stake in the Renaissance Shanghai Caohejing Hotel.
The stake in the Xuhui district hotel is being acquired by Yang Yan, a private individual who is an existing shareholder in the joint venture, for a consideration of HK$50 million ($6.4 million) with Yang holding 99 percent of the venture upon completion. Read more>>
China Credit Woes Ease as Big Borrowers Reveal Payment Plans
Stress in China’s credit market is showing signs of ebbing, after two major property developers and a large car dealer unveiled repayment plans for maturing debt.
China Vanke Co briefed creditors Tuesday on its plans for repaying three offshore bonds due this year worth $1.4 billion. Rival Longfor Group Holdings Ltd said it will sell new bonds and secure more loans to meet refinancing needs. At the same time, China Grand Automotive Services Group Co pledged to pay a dollar note maturing this month. Read more>>
Sembcorp Collaborates With Japanese Developers on Vietnam Warehouse Projects
Singapore’s Sembcorp, alongside Japan’s Hankyu Hanshin Properties Corp and CRE, has completed warehouse projects in Vietnam, namely Sembcorp Logistics Park in Quang Ngai and Sembcorp Logistics Park in Nghe An, according to an announcement on Wednesday.
The projects are the ninth and 10th completions under Temasek Holdings-backed Sembawang’s Sembcorp Infra Services joint venture with the two companies. Read more>>
China Evergrande Rebuffs Report Claiming It Was Never Profitable
China Evergrande Group stood by audited annual reports from 2021, rejecting claims by financial analysts that changes to its accounting methodology suggested the debt-laden property developer was “never profitable” in its years of operations.
“The company’s financial statements for the previous years were audited by PricewaterhouseCoopers and received standard unqualified opinions,” executive director Shawn Siu said in a stock exchange filing on Tuesday. “In PricewaterhouseCoopers’ resignation letter, the revenue recognition in previous years was not questioned.” Read more>>
Global Fund Manager Sees Bottom in China Property
Global fund giant Loomis Sayles & Co is turning more positive on China’s battered real estate sector, saying recent restructuring is bearing fruit and improved sentiment may result in a faster-than-expected bounceback.
Investors who wait too long may miss out on the rebound, according to Matt Eagan, a fund manager at Boston-based Loomis Sayles, which oversees $303 billion. Fellow asset manager Fidelity International also senses an opportunity, saying history shows investing in the surviving developers of a housing downturn can be very profitable. Read more>>
Rental Apartment Operator Blueground Enters Japan with Mitsubishi Deal
US-based furnished flexible rental operator Blueground has entered into its first-ever franchise agreement with real estate developer Mitsubishi Estate Co, Ltd to establish its brand in Japan.
The franchise agreement is part of Blueground’s new strategic partnership model and involves Mitsubishi Estate develop a network of 13,000 furnished apartments across major Japanese cities. Read more>>
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