Wang Jianlin’s Wanda song may be sounding a bit off-key to some analysts
Some alert investment bankers have noticed that Dalian Wanda has no history of making money from services, Shenzhen developer Kaisa seems to have kissed and made up with the local government and a Chinese company turns one of Australia’s largest construction firms into a residential developer. All this and more if you just keep reading.
Could Asset-Light Mean Profit-Starved for Dalian Wanda?
The “asset-light” approach of Dalian Wanda Commercial Properties has come under fire from analysts who warn that the pioneering strategy that relies on management fees and other services income could negatively impact its bottom line.
Two investment banks lowered their target price for the company’s Hong Kong-listed shares, citing concerns over the strategy which relies solely on fees from services related to project management while working with a financial backer who will front capital and take full equity in the project. Read more>>
Kaisa Now Free to Sell Shenzhen Units as Ban Lifted
Kaisa Group said the local authorities had lifted a sales ban on the bulk of its properties in its hometown Shenzhen, a move that would help the indebted Chinese developer’s restructuring efforts.
Kaisa, which became the first Chinese developer to default on offshore bond coupon payments in 2015, said in a statement the project area blocked by Shenzhen authorities from sales dropped by almost two-third since November 10 and the area frozen by courts shortly after its financial difficulties became public has decreased by almost half. Read more>>
Kaisa Bonds Jump After Developer Makes Up With Shenzhen Govt
Kaisa Group Holdings Ltd.’s bonds jumped the most in two months after the Chinese developer said it aims to resume sales of four projects in Shenzhen that courts have blocked it from selling.
Its $800 million 8.875 percent notes due 2018 rose 1.4 cents to 66.1 cents on the dollar as of 4:05 p.m. in Hong Kong, set for the biggest advance since Nov. 9, according to data compiled by Bloomberg. Read more>>
Ping An Bank Announces Partnership With Kaisa
Real estate giant Kaisa Group Holdings has reached a comprehensive strategic cooperation agreement worth 50 billion yuan ($7.6 billion) with Ping An Bank, the 21st Century Business Herald newspaper reported Monday.
The newspaper cited an unnamed source as saying that Ping An’s senior management believes Kaisa has a reasonable strategic blueprint and the cities where it is active have good potential. Read more>>
Chinese-Owned Construction Firm to Develop Aussie Homes
Australia’s engineering and construction icon John Holland is set to diversify into residential development and hotel investments with a $1.1 billion budget funded by its new parent company, Chinese infrastructure and engineering behemoth CCCC International Holding.
John Holland will establish a new development and investments group which will generate new business in property development, infrastructure public-private partnerships, and merger and acquisition opportunities, a John Holland spokeswoman confirmed. Read more>>
Prologis Chief Remains Bullish on China
The fundamentals of real estate still hold up, even when there is an elephant in your warehouse. Supply and demand are favoring the U.S. industrial space, despite fears of China’s slowing economy sucking the wind out of the sector’s sails.
Prologis, the largest warehouse REIT in the nation, reported strong fourth-quarter funds from operations on Tuesday, beating expectations by 2 cents per share. Revenue of $643.2 million was considerably higher than expected, up 43 percent from one year ago. 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