Evergrande boss Xu JIayin seems determined to maintain his spending spree
China’s most indebted developer continues its expansion campaign by taking a stake in a Shenyang bank, while mainland developers buy up new projects in Brooklyn and Sydney as profits back home take a beating. Read on for all these stories and more.
Evergrande Pays $500M for Stake in Shenyang-Based Bank
A subsidiary of Evergrande Real Estate Group Ltd. has paid HK$3.89 billion ($500 million) for a 5.59 percent stake in Shengjing Bank Co., in the latest purchase by the Chinese developer that is piling on debt for acquisitions.
Guangzhou-based Evergrande acquired 324 million shares, it said in a statement to the Hong Kong stock exchange on Monday. It bought 314 million shares through block trades and 10 million shares on the open market, according to the statement. Read more>>
China Vanke JV Buys Brooklyn Site for $116M
A venture including one of China’s most active real-estate investors in New York has purchased a development site on the Lower East Side, in a sign that Chinese appetite for property hasn’t been curbed by that country’s economic slowdown.
The U.S. unit of China Vanke Co., together with Slate Property Group and Adam America Real Estate, paid $116 million for 45 Rivington St. The group plans to convert the 118-year-old building, designed by Charles B.J. Snyder as a grammar school, into luxury condominiums, according to Martin Nussbaum, co-founder of Slate. Read more>>
China Real Estate Slowdown Drives Developers into Global Megaprojects
In 2015, Chinese groups spent more than $9 billion on development sites around the world, up 50% from $6 billion in 2014 and up more than 100 times from a mere $87 million in 2009, according to data from real-estate services firm JLL.
They started with cities such as London and New York before broadening out to emerging markets and launching joint ventures with local companies, said Sigrid Zialcita, managing director of Asia Pacific research in Singapore at real-estate services firm Cushman & Wakefield. Since then, “it morphed into something bigger,” she said. “This is one trend that is here to stay. If anything it will grow.” Read more>>
China Poly Group Snaps Up Sydney Site for $57M
Chinese conglomerate and property heavyweight China Poly Group Corporation has joined the stampede of developers rushing into Sydney’s St Leonards South residential precinct when it snapped up another coveted development site for just under $80 million.
The massive 7414-sq-m site between Berry and Park Roads in Sydney’s lower north shore is an amalgamation of 19 houses sold in one-line. Read more>>
Yuexiu Property Watches Net Profit Fall 59%
Guangdong-based developer Yuexiu Property saw net profit fall 59 per cent last year due to foreign exchange losses and the decline in fair value of a commercial complex in Guangzhou.
The state-owned developer posted a core profit (excluding one-off items and fair value changes) of 1.24 billion yuan (HK$1.47 billion) in 2015, down 21.2 per cent year on year. It recorded a net profit of 10.1 billion yuan. 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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