Hong Kong may be in the middle of a real estate slump but that doesn’t seem to have dampened the enthusiasm of some investors as five parties compete for a HK$1 billion luxury home and a luxury brand looks to expand its shop space to 10,000 square feet. Even the city’s second-richest man is getting aggressive, with BNP Paribas predicting that Lee Shau-Kee could take Henderson Land private. Read on for these stories and more.
Who Are the Five Bidders Competing for $129Mil Home in HK?
Developers of the Mount Nicholson luxury residential project received five bids yesterday for a house in the development that is likely to fetch over HK$1 billion.
It would be the second billion-dollar sale in a month after a company called Golden Sea bought a house at Headland Road, in Stanley, for HK$1.02 billion.
Property consultants said the high number of bids was the latest evidence of strong interest in super luxury property in Hong Kong, regardless of current economic uncertainties and volatile stock markets. Read more>>
Could HK’s 2nd Richest Man Take Henderson Land Private?
Henderson Land Development Co. Chairman Lee Shau-Kee’s streak of share purchases in the developer has fueled expectations that the second-richest man in Hong Kong may take the company private or restructure it.
Privatization of the builder is a possible scenario, as the firm is trading at about a 50 percent discount to BNP Paribas SA’s net asset value estimate, Hong Kong-based analysts Ricky Ng and Wee Liat Lee wrote in a note Thursday. Lee boosted his stake to 72.28 percent from 72.1 percent Jan. 28. Read more>>
How China Vanke Painted a Takeover Target on Its Own Back
The world’s largest home builder is scrambling to fend off a hostile takeover – but its own miscalculations left the door wide open for its unwelcome suitor, a look at the firm’s recent history shows.
Shenzhen-based property developer Vanke is battling a largely unknown firm, Baoneng Group, which last year launched a buying spree of its shares. Read more>>
Chinese Investors Could Continue to Take Aim at Manhattan
China’s cross-border investment in commercial real estate set a new record in 2015, with Manhattan a particular favorite. Chinese buyers spent a total of $30 billion, roughly double the previous year’s amount, on offices, hotels, retail and industrial space, and land for development worldwide, according to a study published on Wednesday by real estate consultancy Knight Frank.
China is experiencing the worst residential inventory glut in the past decade, said David Ji, Frank Knight’s head of research and consultancy for greater China. Read more>>
Hermes Seen Upsizing HK Shop Space During Downturn
International luxury brand Hermes will relocate to Prince’s Building, in Central, a move suggesting it plans to sell its flagship store at The Galleria at 9 Queen’s Road Central amid sluggish sales of luxury goods.
Hermes Asia Pacific told the South China Morning Post on Wednesday it had “just signed a contract with Hongkong Land for relocation of the brand’s flagship store in Prince’s Building”. Read more>>
Greenland Group to Pay $148M to Buy Mainland Construction Firm
Chinese developer Greenland Holdings Corp. plans to buy a controlling stake in Jiangsu Provincial Construction Group as the builder steps up its pace of acquisitions to fuel growth.
Greenland, the country’s second-largest developer by sales last year, will spend 963 million yuan ($148 million) to buy a 55 percent stake in Jiangsu Provincial Construction, Greenland said in an e-mailed statement Thursday. 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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