High land costs in Beijing are forcing even the biggest developers to balk
Every day Mingtiandi scans the web and curates the day’s biggest stories for you. Here’s what we found today:
High Prices Force China Development Giants Out of Beijing Land Deals
China Resources Land Ltd. and China Merchants Land Ltd. backed out of purchasing a plot in Beijing they won at auction after the final price exceeded their budgets, underscoring rising pressure Chinese developers face from surging land costs.
The move follows a similar decision two weeks ago by Country Garden Holdings Co., which decided not to proceed with purchasing two Beijing sites it won at auction with co-bidding developer China Jinmao Holdings Group Ltd., after the final prices surpassed their agreed ceiling by as much as 18 percent. Read more>>
Broker Alert! WeWork Searching for Office Sites in Shanghai
After opening locations in the U.K., Israel and the Netherlands, WeWork has its sights set on a new and potentially massive international market: China.
The coworking giant, fresh off a $10 billion valuation, is actively searching for locations to set up shop in Shanghai, a source with knowledge of the company’s plans told The Real Deal. Read more>>
China Home Price Growth Slows at Peak of High Season
More mainland cities reported month-on-month falls in new home prices last month and the average pace of growth slowed, in what was the sixth consecutive month of rising prices.
Analysts had expected a stable outlook on the back of strong end-user demand and declining new starts, which would help support the mainland’s slowing economy. Read more>>
Bankrupt EB-5 Centre in Washington Leaves Path of Financial Ruin
Path America’s finances and business affairs are so intertwined with other companies controlled by former CEO Lobsang Dargey that it’s impossible right now to know exactly where investors’ money went, a court-appointed receiver said Wednesday in his first report.
Nearly a month has passed since a U.S. District Court judge appointed a receiver to run Everett-based Path America and stripped Dargey, 42, of Bellevue, of control of the firm that fueled his remarkable rise, leaving in limbo active real-estate projects in Seattle, Everett, Shoreline and Kirkland. Read more>>
Goodwin Gaw Says HK’s Growth Potential Makes Intercon Deal Work
Goodwin Gaw, 47, has made a career out of investing in real estate. In 2005, he co-founded the private equity real estate fund management firm Gaw Capital Partners, with his younger brother Kenneth to bring foreign capital into the mainland Chinese property sector.
More recently, Gaw was in the spotlight as his family controlled company Pioneer Global led a consortium to purchase the InterContinental Hong Kong in Tsim Sha Tsui for HK$938 million in July. 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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