Leading today’s roundup, Singaporean sovereign wealth fund GIC is reported to have sold the Arizona Biltmore hotel, part of Hilton’s Waldorf Astoria collection, to a Blackstone fund after acquiring the historic resort in 2013. Overseas investment is also in the news with Singaporean property firm Hwa Hong Corporation buying out a commercial building in London’s Midtown, as individual mainland investors are pulling back from the EB-5 investor visa scheme in the US, crimping funding for real estate projects. And competition for high-end apartments is heating up in Shanghai, where government pricing curbs have created some tempting bargains. Read on for all these stories — and more.
The Arizona Biltmore, the historic Phoenix resort that had hosted every U.S. president since Herbert Hoover until Barack Obama broke the streak, has been sold for $403.4 million.
The 740-room resort near 24th Street and Missouri Avenue was sold to New York-based Blackstone Real Estate Advisors, according to public real estate records. The deal closed Friday. Read more>>
The Chinese firm behind the iconic toy shop Hamleys is looking to seize a majority stake in department store chain House of Fraser.
C.banner International Holdings has entered into a memorandum of understanding with House of Fraser owner Nanjing Xinjiekou Department Store over buying a 51pc slice of the retailer. House of Fraser is 89pc owned by Nanjing, a subsidiary of China’s Sanpower. Read more>>
Baoneng Group has sold more China Vanke Co. shares, one week after starting to sell off its roughly 25% stake, as the company accelerates its disposal of part of its holdings after running afoul with regulators.
Baoneng’s subsidiary Shenzhen Jushenghua Industrial Development Co. reached a deal to dispose of 63.47 million Vanke shares, or 0.57% of those in circulation, through block trades for 1.86 billion yuan ($294.3 million), according to a filing (link in Chinese) to the Shenzhen Stock Exchange after the market closed on Tuesday. The filing didn’t identify the buyer. Read more>>
A wholly owned subsidiary of Hwa Hong Corporation said on Tuesday it has acquired the remaining 30 percent interest in a freehold commercial property in London. The investment holding company said that Vantagepro Investment had bought the remaining interest of the property, 20 Midtown, from Eagle House LLC, Langland Estates and other unrelated parties.
The deal is worth about £10.4 million ($14.5 million). It will be funded by the group’s internal cash resources. The 20 Midtown property has a total floor area of about 30,533 square feet and comprises five floors of office accommodation and street level retail shops. Read more>>
A big drop in Chinese applications for a US investor immigration programme is causing pain in sizeable American real estate projects as a source of affordable funding dries up.
The heyday for the Chinese EB-5 market seems to be ending as new applicants appear wary of heightened uncertainties surrounding the programme as well as immigration laws in general under US President Donald Trump. A growing backlog of Chinese applicants has further dampened interest in the programme and led to a significant dip in available capital. Read more>>
Developers of high-priced Shanghai residential projects have been overwhelmed by deep-pocketed prospective buyers as local government price controls turn the homes into bargains.
“Shanghai hasn’t seen new upscale home supply for several months,” said Lu Wenxi, analyst with Centaline Property’s Shanghai branch. “These projects were priced much lower than market expectation, in some cases even cheaper than surrounding second-hand homes. So the prevailing sentiment is ‘buying a flat equals winning a lottery.’” Read more>>