Growth in Chinese property investment is cooling down
The latest numbers on mainland property investment and homes sales are in, with the Chinese real estate market showing signs of cooling down after a torrid first half. Meanwhile, the region’s biggest REIT goes green for a $500 million bond, plus all the latest details on where Baoneng Group came up with all the cash for its Vanke takeover attempt.
China Property Investment Slows to 6.1% in June
Growth of investment in China’s real estate sector slowed in first half of 2016, raising expectations that more stimulus may be injected over the rest of the year to boost sales – especially in smaller cities experiencing a persistent glut.
The slowdown in property investment growth was out of step with China’s overall economic growth which held at a steady 6.7 percent in the second quarter – even though private investment fell to a new record low. Read more>>
Mainland New Home Sales Taper in June
Purchases of new homes climbed by a slower pace in China in the first half of this year, the National Bureau of Statistics said in a statement yesterday.
New homes worth 4.18 trillion yuan (US$626 billion), excluding government-subsidized affordable housing, were sold during the six-month period through June, a year-on-year jump of 44.4 percent. Read more>>
Link REIT to Issue $500M “Green” Bond
Property investment giant Link Reit, which has faced a torrent of criticism from politicians and government officials on its profit-driven practise of pushing up rents and driving out small retailers, has become Hong Kong’s first issuer of a so-called green bond to finance projects that help protect the environment.
The US$500 million issuance is a landmark deal for the city, which is catching up on a global trend for green finance. Read more>>
Portman Holdings Plans $500M India Real Estate Fund JV
Mumbai-based investment bank Ambit Holdings Pvt. Ltd is in talks to form a joint venture with US-based real estate developer and investor Portman Holdings Llc for a real estate fund, according to two people aware of the development who did not want to be identified.
The joint venture will leverage the expertise of Portman in real estate investing and Ambit’s local fund-raising abilities. “The two plan to raise a real estate fund north of $500 million in third-party capital,” said one of the two people. This person added that Ambit and Portman would each hold a 50% stake in the fund. Read more>>
Baoneng Pledges Vanke Shares to Brokers to Gain Cash
China Vanke Co Ltd said its top shareholder, financial conglomerate Baoneng, has pledged some of its stake to brokers in return for funds – a disclosure that has fuelled concerns about Baoneng’s financing and its potential to launch a hostile takeover bid.
In a rare high-profile corporate power struggle for a mainland Chinese company, Baoneng began building up its stake of 25 percent last year. Fearing a hostile bid, Vanke has announced a $6.9 billion deal with Shenzhen Metro Group, which would dilute the holdings of Baoneng and No. 2 shareholder China Resources. Read more>>
Get to Know Baoneng Boss Yao Zhenhua
Until late last December, Baoneng Group was largely a little-known Guangdong business.
But since then, it has very quickly emerged from the corporate shadows, after launching an unsolicited bid to take control of China’s largest housebuilder, China Vanke, triggering what has now become one of the country’s most intriguing and dramatic takeover battles. 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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