China Aoyuan chairman Guo Ziwen in happier days (Getty Images)
In today’s roundup of regional news headlines, developer China Aoyuan sells its controlling stake in a Zhuhai project as mainland-listed builders report their worst earnings in at least seven years.
Aoyuan Completes Disposal of 60% Stake in Zhuhai Project for $86M
China Aoyuan has sold a 60 percent stake in 14 parcels of development land in Guangdong’s Zhuhai to a state-controlled firm for RMB 584.4 million ($86.2 million).
Aoyuan expects to recognise a loss of RMB 312.5 million from the disposal, chairman Guo Zi Wen said in a stock exchange filing. Read more>>
China Developers Flag Worst Earnings in Years on Historic Slump
China’s unprecedented housing slump and construction halt led to the worst earnings for developers in at least seven years, according to Bloomberg estimates.
Among 60 mainland-listed property firms that made profit alerts by a 31 January deadline, 60 percent expected losses for last year, when a credit crunch sent shockwaves through the industry and triggered defaults, Bloomberg calculations based on public data show. Only 5 percent of firms turned profitable, while another 5 percent saw net income growing from a year earlier. The rest said profit fell. Read more>>
Hanwha and SKS Credit to Invest in Green Data Centres in South Korea
South Korean group Hanwha is to invest in “green” data centres.
Hanwha Solutions has signed a memorandum of understanding with SKS Credit, an ESG professional manager, for joint development of data centres and logistics centres linked to new and renewable energy. Read more>>
GIC and Oak Street Complete $15B Acquisition of Store Capital
Singapore sovereign fund GIC and real estate investment firm Oak Street have completed their acquisition of all of the outstanding shares of Store Capital for $32.25 per share in an all-cash transaction valued at $15 billion, including assumed debt.
Store Capital, a REIT focused on single-tenant operational real estate, has investments in more than 3,000 property locations across the US. Read more>>
Public Storage Bids for Rival Life Storage in Unsolicited $11B Offer
New York-listed Public Storage has made an $11 billion unsolicited offer for Life Storage, ramping up an effort to buy its smaller rival after an earlier bid was rejected.
Public Storage said it sent a letter to Life Storage’s management on Sunday detailing its all-stock proposal, worth about $129 a share, confirming an earlier report by the Wall Street Journal. Life Storage shares closed Friday at $110.58. Read more>>
Wilkinson Road Bungalow on Sprawling Site on Market for S$55.5M
An old house on a sprawling freehold site of 25,680 square feet (2,386 square metres) along Wilkinson Road in Singapore’s District 15 is being sold for S$55.5 million ($41.9 million). The price works out to S$2,161 per square foot on the land area, which agents say is the highest land rate fetched in District 15 for a landed housing plot of such a large size.
Such big plots are rare. The Wilkinson, Branksome and Goodman roads locale is one of the most sought-after areas for landed residential properties in District 15. “This is the Nassim Road of the east,” quipped Jack Tok of Knight Frank Property Network, who was not involved with the Wilkinson Road transaction. Read more>>
Singapore Luxury Property Deals Dipped in Q4, but Outlook Strong: Huttons
Sales of Singapore’s luxury condominiums and Good Class Bungalows waned in the fourth quarter of 2022 amid a year of aggressive tightening by the US Federal Reserve to rein in inflation.
According to Huttons, an estimated 73 non-landed luxury homes were sold in the last three months of last year, down 33.6 percent from the previous quarter. Read more>>
Shanghai Malls Poised for Surge of New Tenants Amid ‘Revenge Spending’
Owners of shopping malls in Shanghai can expect a rebound in occupancy rates as retail and catering brands step up to tap a wave of “revenge spending” now that China has abandoned its harsh COVID-19 curbs, analysts said.
At least 13 global chain-store operators have already set up or plan to open their first mainland Chinese shops in Shanghai, the country’s commercial hub, this year, betting that the country’s reopening after three years of restrictions will spark a spending spree on food, clothing and cosmetics. Read more>>
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