Fosun Tourism Group went to market on Friday with its IPO, returning with a valuation of $2.44 billion, after pricing its shares at the low-end of the expected range. The lean listing for the owner of the Club Med resort chain comes just under four years after Guo Guangchang’s Shanghai conglomerate bought Club Med for the equivalent of $1.06 billion, as a wavering market, beset by US-China trade woes and wary of rising interest rates, spooked potential customers. But the Fosun deal was probably not the worst of the day. That honor went to beleaguered employees of a property agency in Zhengzhou, China, who reportedly were forced by the agency to buy property it owned through pay packet deductions. If that doesn’t lift your spirits for the weekend, keep reading…
Fosun Tourism Group said Friday that it raised $428 million in an initial public offering for its Club Med holiday business after it priced shares at the bottom of a marketed range, with negative market sentiment weighing heavily. Fosun bought Club Med in 2015 for 939 million euros.
Fosun Tourism, a subsidiary of conglomerate Fosun International, sold 214.2 million shares at HK$15.60 each, valuing the company at $2.44 billion, after . It had indicated a range of HK$15.60 to HK$20 on the sale. Fosun Tourism could potentially raise $492 million from the deal if a greenshoe option is exercised within one month of the first trading day. Read more>>
A mainland Chinese real estate developer has come up with a novel sales plan: forcing its staff to buy its property. The developer, Zhengzhou Zensun Real Estate, is reportedly deducting 60 percent of its managers’ monthly salaries and 30 percent from the wages of other lower-paid staffers in return for the right to own properties with a value of at least RMB 700,000.
The Zensun staff was also given a “discount” of 2 percent to 3 percent from the market price of the units. Financing was also included in the deal. Read more>>
The tender for a residential site, Lot No. 765 in Demarcation District No. 332 at South Lantau Road, Cheung Sha in Lantau Island, has been awarded to the highest tenderer Sino Land Company on a 50-year land grant at a premium of HK$203.89 million, the Lands Department announced.
The site has an area of about 2,692 square metres, with minimum gross floor area of 646 square metres and the maximum gross floor area that may be developed is 1,076 square metres. Read more>>
Singapore property developer Keppel Land has signed an agreement with Indonesia’s Metropolitan Land to cooperate on a 5 trillion Indonesian rupiah ($345 million) rupiah residential project. The deal, which was made through Keppel Land’s Indonesian subsidiary, calls for the injection of an equal amount of capital into residential projects.
Keppel and Metland are already developing a residential project comprising 500 homes in Tangerang in greater Jakarta, and are also exploring a residential site in East Jakarta. Read more>>
Resale prices of Housing Board flats rose by a slight 0.2 percent in Singapore in November, with the number of overall transactions dropping again.
So-called “Executive Condos” saw the biggest rise, with their average resale price rising 2.5 percent, according to SRX Property. Prices on three-room flats dipped 0.3 percent, and those of five-room units fell 0.5 percent. The number of transactions fell from 1,881 to 1,994 in October. Since a peak in April 2013, resale prices in Singapore have fallen 14.1 percent. Read more>>
Singapore start-up Propseller, a property agency comparison website, announced it had closed on $1 million of seed financing from a group of entrepreneurs including PJ Vandepitte, the COO of Foodpanda, and Erwin Mace, the founder of Muslim Pro.
Propseller said it would use the funds to enhance accelerate growth and develop new technologies that will boost the “transparency and accountability” of the sales process for property customers. Read more>>