Anbang makes more money selling itself as a PE investor than it does selling insurance
$14 billion generates a lot of attention and now the world will see if Anbang Insurance can withstand the scrutiny as questions arise regarding where the mainland financial investor gets its cash and whether it will every see a return on its investments. Oh, and raising downpayments in Shanghai from 40 percent to 70 percent has slowed the housing market a bit. Read on for all the details.
How Did Anbang Overcome 3 Failed Bids for Starwood Last Year?
Chinese insurer Anbang Insurance Group Co., which just upped the ante in a bidding war for Starwood Hotels & Resorts Worldwide Inc., made three unsuccessful offers last year to purchase the same U.S. luxury hotel chain.
Each time, Anbang and its chairman, Wu Xiaohui, were pressed by Starwood and its bankers for details on how they would pay for the deal, according to public filings by Starwood. On the third attempt on Nov. 3, Anbang withdrew its offer in the middle of a meeting with Starwood executives, the filings say, after Starwood told the Chinese insurer it wouldn’t be able to proceed without financing details. Read more>>
Marriott Seen as Unlikely to Top Anbang Bid for Starwood
Marriott isn’t likely to offer another sweetener to its bid for Starwood Hotels, an analyst said Tuesday, clearing the path for rival bidder Anbang to step in.
David Loeb, a senior research analyst at Robert W. Baird, told CNBC that a further increase from Marriott would imperil the logic of the deal.
“I just think Marriott is too disciplined to pay more than what they’ve already offered,” Loeb told CNBC’s “The Rundown”. Read more>>
Anbang Buying Spree Fuelled by Leverage
Anbang has raised the stakes in the bidding battle for Starwood Hotels & Resorts with its latest $14bn offer — but its reliance on high-cost borrowing carries plenty of risks, analysts have warned.
Such funding has fuelled Anbang Insurance Group’s global shopping spree — including its $2bn purchase of the Waldorf Astoria — and seen it evolve from an obscure Chinese car insurer into a $290bn global conglomerate with investment strategies more akin to the world of private equity. Read more>>
Ping An JV Launches First Aussie Project
The first project under a new joint venture between Mirvac and China’s Ping An will not only be a test of the new relationship, but also the Sydney apartment market.
The $200 million The Finery project at Waterloo will comprise about 226 apartments along with 1,000 square metres of retail space. Full details and pricing are expected to be released shortly. Read more>>
Shanghai, Shenzhen Home Sales Plummet on Rule Changes
Home transactions in Shanghai and Shenzhen fell sharply over the weekend as the cold winds of tighter policy measures buffeted buyer sentiment.
Shanghai home sales measured by floor area fell to 59,200 square metres overnight on Saturday, a day after new local government cooling policies were announced, according to data complied by consultant China Real Estate Information Corporation. On Sunday, the sales volume fell further to 41,500 sq metres. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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