Zhouda Group got widespread media attention for its 3 hour home building demo
Every day Mingtiandi scans the web and curates the day’s biggest stories for you. Here’s what we found today:
High-Tech Robbery: Investors Bilked of $1.6B By 3D House Printer
A fast-growing Chinese developer who claimed to be able to build cheap, renewable 3D-printed houses that take just three hours to assemble has attracted plenty of media attention and investor cash in recent months in China.
Zhuoda Group raised about 10 billion yuan ($1.57 billion) from more than 400,000 Chinese investors by selling financial products linked to these homes that guarantee annual returns as high as 30%, Watching, a digital publication owned in part by Alibaba, reported this month (link in Chinese). But at least one of the company’s supposed backers does not exist, and its financial products don’t have any underlying assets to support those returns, Watching reports. Read more>>
Kaisa Rebuffs $1.03B Offer From US Hedge Fund
Kaisa Group Holdings Ltd. rebuffed a proposal from U.S. hedge fund Farallon Capital Management LLC to recapitalize the Chinese developer, questioning its commercial viability and saying it has remote chances of passing regulatory hurdles.
The Farallon plan, which was submitted on a non-binding basis on Nov. 19, undervalued the Shenzhen-based developer compared with its market capitalization of more than HK$8 billion ($1.03 billion), Kaisa’s senior adviser Tam Lai Ling said in an interview with Bloomberg News. Read more>>
Chinese Developers Finding Funding Cheaper Onshore
Mainland China developers have seen offshore financing costs reduced significantly amid a relaxed domestic lending environment that has prompted more issuers to issue debt at home.
Mid-sized developer Powerlong Real Estate on Friday priced its US$200 million, three-year senior notes at 7.625 per cent, a 3 per cent saving from the rate on the senior notes it issued in 2014 — the lowest rate the company has ever paid on offshore bonds. Read more>>
Developer Shenglong Walks Away From £195m London Acquisition
Shanghai-based private property conglomerate Shenglong last month pulled out of a £195m deal to acquire Thames Court office tower, just one week after a London-based trade newspaper, Costar, revealed its identity as the buyer.
Established 15 years ago, Shenglong, which is controlled by the billionaire developer Lin Yi, has been making waves in the United States and Australia with a string of high-profile purchases. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
Leave a Reply