Gaw’s backing of the Cityplaza deal is said to be awaiting approval from Swire
Hong Kong’s glamorous Gaws lead the region’s real estate news again today as sources confirm that a deal to back an HK$15 billion acquisition of a pair of Quarry Bay buildings is moving forward. JD.com makes another of its frequent appearances as well, as China’s second-largest ecommerce player starts listing real estate online and Evergrande’s investment in Faraday Future is going from fender-bender to totalled as the electric car maker starts laying off staff. Read on for all these stories and more.
Gaw Capital Said Moving Forward With Cityplaza Deal
Hong Kong private equity fund Gaw Capital Partners is in talks to fund a HK$15 billion (US$1.91 billion) buyout of two commercial towers in the city, after Beijing’s tightened capital controls forced their original mainland Chinese buyer to look for financing elsewhere.
Gaw Capital is in talks with Chen Changwei to fund the acquisition of Cityplaza Three and Cityplaza Four in Taikoo Shing on eastern Hong Kong Island. Under a proposed arrangement, Gaw Capital will have the right to convert its loan into less than 50 per cent ownership equity in the office towers. The deal also allows it the right to raise its stake and become the largest owner of the towers, according to two sources familiar with the matter. Read more>>
JD.Com Starts Selling Homes in China
E-commerce giant JD.Com has kicked off a second-hand housing business with its first data-sharing allies including Chinese property firm 5i5j Real Estate Brokerage. The partnership is deemed to improve customer experience with verified listings.
Beijing’s 5i5j Real Estate Brokerage opened its shop on JD.Com yesterday, Chinese news outlet Guangming Online reported today. Users may find house leasing through the platform which ensures that listings, as well as their terms and prices are accurate. Read more>>
Faraday Future Lays Off Staff, Cuts Salaries 20%
Struggling California-based electric carmaker Faraday Future said on Monday it would implement a 20 per cent salary cut across the board and start laying off staff, as a dispute with largest shareholder Evergrande Health Industry Group over withheld investment rumbles on.
The company said all employees would see their annual base pay cut by 20 per cent with immediate effect, and that it would start laying off staff members to shore up finances. It did not say how many people would be laid off. Read more>>
HNA’s Hainan Airlines Offering 12% Interest on Bonds
HNA-affiliated Hainan Airlines – China’s fourth-largest carrier – is offering to pay 12 percent interest to borrow in U.S. dollars in a sign of the financing strains felt by units of the indebted Chinese conglomerate.
The deal comes as HNA Group is in the process of selling some $20 billion of assets, according to Reuters calculations and media reports, following a $50 billion acquisition spree. Read more>>
Carlyle Pull-Out From China Makes US Pension Fund Think Twice
Sacramento County Employees’ Retirement System (SCERS) is monitoring its investments in Chinese real estate after The Carlyle Group recently revealed plans to spin off its Asian real estate business.
The pension fund, which has three commitments to Chinese real estate strategies managed by Carlyle, is putting the fund manager on watch, according to a board meeting report. Read more>>
800 Hong Kong Homes Hit the Market in Next Two Days
More than 800 homes at three projects in Hong Kong’s New Territories will go on sale on Thursday and Friday in a rare move that will flood the market with flats targeting first-time homebuyers.
The release of 817 units by three different builders will mark one of the biggest two-day sales of new properties the city has seen in several years. It comes as developers rush to offload their projects amid growing signs that the city’s famous property bubble may be about to burst. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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