China’s big buyout week continues to dominate the headlines today as a Shanghai-based developer plans a $2 billion buyback of its Hong Kong-listed shares. That deal comes as Dalian Wanda and Sunac trade places near the top of the mainland’s most-indebted list, and an institutional investor that looks a lot like BlackRock offers up a $260 million stake in China Vanke. Read on for the details on all these stories and more.
Developer Future Land Halts Trading for $2B Buyout Bid
Chinese homebuilder Future Land Development Holdings Ltd said before the market opened Monday it’s preparing to announce a possible privatisation bid for the company, which has a market value of $2 billion.
Based in Shanghai, the developer went public in Hong Kong in 2012 and also has a listed subsidiary, Future Land Holdings, in Shanghai. The company has developed residential and commercial projects in 26 Chinese cities, mostly in the Yangtze River Delta, such as Shanghai, Nanjing, Changzhou, Suzhou and Hangzhou. Read more>>
Sunac’s Sun Hongbin May Be China’s New Debt King
As some Chinese tycoons slow acquisitions to focus on digesting their massive debt loads, one property billionaire is moving the other way.
Sunac China Holdings Ltd. Chairman Sun Hongbin over the past year oversaw an acquisition spree that culminated with Monday’s $9.3 billion purchase of hotel and tourism assets from Dalian Wanda Group Co. While the deal set a record for China’s property industry, it also may bring Sun’s company another claim to fame: the title of China’s most indebted developer. Read more>>
Sunac’s Wanda Deal Adds to Real Estate Industry Consolidation
A $9 billion deal by billionaire Sun Hongbin’s Sunac China Holdings Ltd. adds to the trend of Chinese property developers swallowing up rivals and their land at a record pace. Sunac’s purchase of hotels and projects, announced by Dalian Wanda Group Co. on Monday, comes amid what Citigroup Inc. predicts will be a “mega-consolidation” in the industry.
Developers spent a record 96.7 billion yuan ($14 billion) in the second quarter on acquiring competitors or their assets, according to data compiled by Bloomberg. Read more>>
Is BlackRock Selling $260M Stake in China Vanke?
An unnamed institutional investor launched a selldown worth about $260 million in China Vanke Co Ltd , China’s second-largest property developer, IFR reported on Friday, citing a term sheet of the transaction.
The investor is offering 92 million shares in an indicative range of HK$22.60 to HK$23.20 each, equivalent to a discount of up to 4 percent from Friday’s close of HK$23.55, added IFR, a Thomson Reuters publication. The shares are equivalent to 7 percent of the Hong Kong-listed stock, the terms showed. Read more>>
SOHO China Counts on Co-Working to Expand Office Leasing into More Cities
Prime office real-estate conglomerate SOHO China said it will expand its office-leasing business into smaller cities by tapping existing properties in those cities and repackaging them for further leasing to small and medium-sized companies.
Pan Shiyi, chairman of SOHO China, announced the new strategy of his company during a press conference on Friday. He said that the office-leasing business will be marketed under SOHO 3Q, a community-focused shared office space sub-brand launched by SOHO China in 2015, in order to “make the most of existing properties.” Read more>>
LOGOS Buys A$50M Warehouse in Melbourne
Macquarie-backed property funds manager LOGOS has swooped on a $50 million warehouse facility in Melbourne’s western suburbs, as it continues to push into the city’s industrial growth corridor.
The group has contracted to buy a 10,000 square metre warehouse on a five-year lease to a private group in Altona. The site includes development land that could house up to 32,000 square metres of logistics warehousing. Read more>>
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