With the US presidential election still dominating the headlines, Asia’s real estate markets were a bit neglected this week, but that didn’t stop Singapore’s biggest developer from posting news of a 28 percent rise in profits, thanks to a boost from China. Also in the news, Evergrande increased its stake in China Vanke, just in time to be forced into selling it off, and Wang Jianlin may have joined Donald Trump in winning at the US ballot box.
CapitaLand’s third quarter profits soared 28.4% to $247.5 million thanks to strong Singapore and China residential businesses. Group revenue increased 27.7% to S$1,373.7m on the back of higher contributions from residential projects in Singapore and China, as well as higher rental income from its commercial portfolio in Singapore and serviced residence business.
The residential projects which contributed to higher revenue in the quarter include The Nassim and Cairnhill Nine in Singapore, Riverfront in Hangzhou, New Horizon in Shanghai and Vermont Hills in Beijing. Read more>>
Property developer China Evergrande Group bolstered its hand in a tussle for control of China’s largest home builder on Wednesday, spending more than $600 million to raise its stake in China Vanke Co Ltd to 8.29 percent.
The move by industry no. 2 Evergrande to buy a further 1.45 percent sent the latter’s shares sharply higher. While Evergrande said the deal was “an investment”, without further comment, analysts said it gave the highly acquisitive firm more bargaining power in a saga that has convulsed Vanke this year. Read more>>
The Shenzhen backdoor listing plan of property developer China Evergrande Group hinges on whether it will back out of a heated contest for control of leading home builder China Vanke Co. Ltd. and instead support a firm owned by the Shenzhen government, according to a source close to the city government.
The Shenzhen government agreed to support the reverse merger on condition that Evergrande sell its holdings in Vanke to Shenzhen Metro Group Co., a state-owned subway operator handpicked by Vanke executives as a potential “white knight” to save Vanke from a hostile takeover, according to the source close to the government. Read more>>
A decline in China’s traditional retail industry is set to continue amid sluggish sales and changing consumer habits, analysts say. The outlook for the sector – which includes department stores and other bricks-and-mortar shopping outlets – is negative, with demand likely to “remain muted” into 2017, a Fitch report said on Tuesday.
In the first nine months of the year, the top 50 domestic retailers saw sales fall 1.9 percent, representing a slowdown in growth of 2.6 percent compared to the same period of 2015, according to the China National Business Information Centre. Read more>>
Chinese outbound real estate investment remained strong in the first half of this year with robust growth in a number of key gateway cities, according to a report released today by international property services provider Knight Frank.
Between January and June, Chinese outbound capital invested in real estate totaled US$10.7 billion, a year-over-year decrease of 13.6 percent. The double-digit drop, however, should be considered in the context of some of the biggest real estate deals in Chinese outbound investment history early last year, such as the US$1.9 billion purchase of Waldorf Astoria Hotel in New York, the report said. Read more>>
Link Real Estate Investment Trust chief executive George Hongchoy said the company will seek better tenants to boost its competitiveness, as he has seen the retail market slowing recently. Link REIT’s retail rentals reversion rate fell 2.6 percent to 21 percent in the six months ended September 30 from the same period last year.
Hongchoy said extensions of retail rental contracts made during the half year were adjusted based on the contracts from three years ago. He said certain retail sectors were affected much more by the market, and he expects the new property cooling measures introduced last week to have a further impact on the retail market, such as on those selling furniture and home appliances. Read more>>
Beverly Hills voters on Tuesday soundly rejected a ballot initiative that would have allowed the Beverly Hilton to construct a 26-story condo tower. The result was a victory for Wanda Properties, the U.S.-based subsidiary of the Dalian Wanda Group, which poured $1.2 million into a campaign to defeat the rival Hilton project.
The Hilton’s owner, Beny Alagem, placed Measure HH on the ballot in an effort to circumvent the typical City Hall approval process. Opponents, including Mayor John Mirisch, argued that the 375-foot tower would be too tall for Beverly Hills. Read more>>
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