Take a few pictures, buy a few buildings, and then its back on the tour bus
Leading today’s headlines, the number crunchers at KPMG have taken a closer look at mainland investment in Australia, and discovered that Chinese like property. Meanwhile, up in Hong Kong, Baring Private Equity has lined up a banking consortium to back its $4.3 billion buyout of private school operator Nord Anglia, and over in Japan old office buildings are finding new life as hotels and homes. Read on for all these stories and more.
Chinese Invested $4.2B in Aussie Commercial Property During 2016 Says KPMG
The Chinese continue to pour money into Australian businesses, infrastructure, resources and real estate to the tune of A$15.36 billion in 2016.
The figure is the highest it’s been since 2008 when Chinese direct investment reached its peak of A$21.6 billion, according to a report from KPMG and the University of Sydney.
Commercial real estate was still the favourite place for the Chinese to invest, making up 36 per cent of direct investment in Australia. Read more>>
Deutsche Bank, HSBC Lead Consortium Backing Baring PE Asia’s $4.3B Nord Anglia Buyout
Four banks have underwritten a debt financing backing the acquisition of publicly listed Hong Kong-based international schools operator Nord Anglia Education , banking sources said.
Nord Anglia said it would be taken private by Canada Pension Plan Investment Board (CPPIB) and Baring Private Equity Asia on April 25, in a deal that values the company at US$4.3bn, including debt. Read more>>
Hong Kong’s Uber-Rich Buy More Homes, Pay Less Tax
Hong Kong’s uber rich barely break a sweat whenever they snap up multiple apartment units, even as the majority of the city’s residents struggle to own a single unit in the world’s most expensive city.
But paying a higher duty on the property purchases is a different story.
Such was the case for Juliana Chao Pik-chun, the daughter-in-law of Dragonair’s founder Chao Kuang-piu. It was also the case for the chief of the Broadway retail chain Li Chi-leung, and actor/songwriter Aarif Rahman. Read more>>
Japan’s Unloved Office Buildings Converted to Hotels and Homes
American real-estate developer Seth Sulkin thought the surge of tourism in Japan meant the time was right to build more hotels, but he was having trouble finding empty lots in the country’s packed cities.
One answer: Buy office buildings and convert them. This November, in a 10-story building that once housed offices, a 205-room hotel under Marriott International Inc.’s MAR 1.59% boutique Moxy brand is set to open near the temple in Asakusa, a top Tokyo tourist destination. Read more>>
Tokyo Goes on Real Estate Bubble Watch – Again
In the nation that spawned the mother of all modern real-estate bubbles three decades ago, market conditions these days feel slightly familiar.
Real-estate loans are at a record, and top buildings are selling for more than 30 times their annual income. Developers are racing to put up more office towers even though the population is declining. Read more>>
Sunac China Ups Stake in Jinke Property to 5%
Two units of Sun Hongbing’s Sunac China Holdings have bought 266.5 million shares in Chongqing-based developer Jinke Property.
Sun’s Tianjin-based firm bought up this latest stake between Dec 9, 2016 and April 28, 2017, and now holds a combined 25 percent of the total issued share capital of Jinke, according to an announcement to the Hong Kong stock exchange. Read more>>
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