The successor to China’s Anbang Insurance leads today’s list of headlines from around the region as the state-run finance firm looks for an opportunity to sell off part of a luxury hotel portfolio. Also in the news, Shanghai and Beijing conclude major land sales, Country Garden sees its sales fall by more than half during May, and Singapore’s ESR-Logos REIT finishes $109 million fund-raising.
Beijing-based Dajia Insurance Group is exploring a sale of some of its luxury hotels, seeking to cash in on surging travel demand even as rising interest rates make financing real estate transactions more expensive.
Dajia, which took over most of the operations of China’s Anbang Insurance Group, is tapping advisers for a potential transaction, said people familiar with the process. The hotels that could be sold include the Montage Laguna Beach in California and Four Seasons resorts in Jackson Hole, Wyoming, and Scottsdale, Arizona – a trio of properties that could bring in more than $1 billion, one of the people said. Read more>>
Shanghai’s first land auction of 2022 has generated a transaction value of nearly RMB 49.6 billion ($7.4 billion) as developers snatched up 20 of 36 housing sites on offer.
A site on Xietu Road in Xuhui district brought some of the most competitive bidding as it sold for 9.6 percent above the auction reserve prices and a project in Putuo district’s Changfeng area sold for the highest price at RMB 6.4 billion. Read more>>
Beijing’s second land sale of the year secured RMB 49.9 billion ($7.4 billion) for the local government at an average premium of 5.4 percent, according to the latest auction data.
Of the 14 parcels of land sold, seven were highly contested, with bidding rates reaching as high as 15 percent above the auction reserve prices. The bidding for one plot in Fengtai district in the south of the capital was so heated it had to be determined by drawing lots after the price rose to the upper limit. The other seven plots changed hands at their starting price and three remained unsold. Read more>>
Country Garden Holdings’ unaudited contracted sales in May dropped by 50 percent year over year to RMB 28.71 billion ($4.31 billion) from RMB 57.38 billion in 2021.
By GFA, the group’s contracted sales gross floor area attributable to shareholders decreased during the comparable period to approximately 3.57 million square metres (38,427,160.19 square feet), according to a Thursday disclosure. Read more>>
ESR-LOGOS REIT’s manager, ESR-LOGOS Funds Management, launched and priced a S$150 million ($109.4 million) offering of 5.50 percent subordinated perpetual securities at 100 percent of its principal amount.
The securities have no fixed final redemption date and will be drawn from the company’s S$750 million multicurrency debt issuance program, according to a filing on 2 June. Read more>>
Chinese developers are expected to accelerate project launches in the third quarter and keep prices competitive after most had met less than 30 percent of their annual sales targets by the end of May, industry experts said.
Most Builders were behind on their annual targets, China Real Estate Information Corporation (CRIC), one of the largest real estate brokers in mainland China, said on Wednesday. Read more>>
China’s easing of real estate regulations to help homebuyers and developers is likely to accelerate demand for mortgages, according to S&P Market Intelligence.
The government has eased mortgage costs through interest rate cuts, relaxed some rules on ownership of second homes and urged banks to lend more to buyers. Read more>>
Hong Kong’s property market picked up momentum in May, with deals hitting a 10-month high, building on the gains of the previous month as homebuyers returned after the fifth wave of COVID-19 was brought under control.
Total transactions, including residential, commercial and industrial properties as well as parking spaces, rose 63.8 percent month-on-month to 7,949 in May, according to data from the Land Registry. It was also the highest total since 9,957 deals were completed in July 2021. Read more>>