Fosun CEO Liang Xinjun isn’t saying which assets the company will sell
One of China’s biggest cross-border investors says it may try some divestment, although Guo Guangchang’s Fosun isn’t yet saying what assets it might put on the block. Also in the news today, Vancouver is already feeling the impact of a new 15 percent tax on overseas homebuyers, while mainland developers continue their Shanghai land-buying frenzy. Read on for all these stories and more.
Fosun Preparing to Sell $6B in Assets
Fosun Group, one of China’s most acquisitive conglomerates, is preparing to sell as much as 40 billion yuan ($6 billion) in assets as it focuses on raising its credit rating to above junk.
After announcing more than $15 billion in overseas acquisitions since 2010, the group plans to disclose the disposals between now and the end of 2017, Liang Xinjun, chief executive officer of flagship unit Fosun International Ltd., said in an interview aired on Bloomberg Television on Monday. Read more>>
Tax on Foreign Home Buyers Shakes Up Vancouver Market
The house market in Greater Vancouver in west Canada is in chaos as an extra 15-percent tax on foreign buyers takes effect on Tuesday.
It is still unknown how many deals have already collapsed, but Fraser Valley realtors in Greater Vancouver said foreign buyers are indeed backing out of agreements because of the tax. Read more>>
Developers Sign Up for RMB 5.26B in Shanghai Land at Single Auction
Three land parcels in Shanghai’s western Qingpu District fetched high prices again today, latest evidence that real estate developers’ appetite for land parcels remained strong.
Country Garden, one of the largest developers in China, paid 1.4 billion yuan (US$211 million), or a premium of 101 percent to the reserve price, for a 23,450-square-meter residential piece in outlying Qingpu. Another 30,730-square-meter housing parcel was sold to Beijing Capital Land Co for 1.9 billion yuan, or a premium of 108 percent. Read more>>
ISS Backs Wanda Share Buy-Back
Institutional Shareholder Services Inc. recommended shareholders support Wang Jianlin’s $4.4 billion buyout plan for Dalian Wanda Commercial Properties Co., adding momentum to the billionaire’s campaign for Hong Kong’s biggest-ever privatization deal.
The influential shareholder advisory firm’s endorsement, dated Aug. 1, comes days after rival Glass Lewis & Co. gave the same recommendation. China Life Insurance Co. and Kuwait Investment Authority, the two biggest holders of Wanda Commercial’s listed shares, last month said they would vote in favor of the deal. Read more>>
Minmetals Pays HK$4B to Turn HK Industrial Site into Residential
Hong Kong-listed mainland developer Minmetals Land has paid HK$7,000 per square foot for a residential site in Yau Tong, a record price for a traditional industrial area.
The Lands Department announced the mainland developer had secured the government site for HK$4.0 billion after defeating 12 competitors, including Sun Hung Kai Properties, Cheung Kong Property, Sino Land, Wheelock Properties and a joint venture formed by New World Development and Vanke Property (Overseas). Read more>>
HK Property Sales Fell 11% in July
Overall property sales in Hong Kong fell 11.3 per cent last month from June — but industry experts still expect buyer interest to improve, driven by positive sentiment which is encouraging more developers to speed up their marketing of new projects.
The number of sale-and-purchase agreements for all properties, including apartments, shops, industrial units and car parks, reached 5,354 last month, according to data released by the Land Registry yesterday. 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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