GIC Could Be Biggest Asian Loser From Brexit and More Asia Real Estate Headlines

Global real estate markets are likely to spend this week figuring out the impact of Brexit with Asian investors, including GIC facing some of the biggest worries, while agencies in Hong Kong are already reporting brisk sales of London projects from the bulls. Back in China, buyers are queuing up for McDonald’s sale of 2300 Hong Kong and mainland locations, while Vanke tries to figure a way out of its shareholding quagmire. Read on for all the details in what’s shaping up to be a busy summer week.

Singapore’s GIC Could Be Biggest Asian Loser From Brexit

Singapore sovereign investor GIC’s large investment in United Kingdom’s property sector will leave it the most exposed among Asian state investors after Britain’s shock exit from the European Union.

GIC Pte Ltd, which manages US$344 billion in assets according to the Sovereign Wealth Fund Institute (SWFI), has 7 per cent of its portfolio invested in the United Kingdom, according to its annual report or an estimated US$24 billion. Read more>>

Carlyle, Sanpower Among Leading Bidder for 2300 Greater China McDonalds

McDonald’s has received more than half a dozen bids for its China and Hong Kong stores, including offers from Beijing Tourism Group, Sanpower and ChemChina, in an auction that could fetch up to US$3 billion.

Sanpower Group, a technology and real estate firm, said it has submitted a joint bid with Beijing Tourism Group for the stores. Read more>>

Chinese Buyers Pounce on “Brexit Discount” for London Property

An 11 per cent fall in the British pound after the stunning Brexit result has aroused further ­Chinese interest in buying London investment properties.

Three London projects opened for sale in Hong Kong yesterday, the day after Britain ­voted to leave the European Union. Knight Frank, the agency of two London projects named Keybridge and City Wharf developed by Mount Anvil and FABRICA, said it had received five reservations for the two projects from mainland and Hong Kong investors. Read more>>

Vanke Share Sale Plan Said Facing Certain Rejection in Current Form

China Vanke’s US$6.9 billion (S$9.4 billion) share sale to link with a metro operator faces near-certain rejection in its current form after two of the developer’s biggest shareholders said they will oppose the deal.

Shenzhen Jushenghua and Foresea Life Insurance, units of little- known Baoneng Group, on Thursday said they were against the proposal to buy assets from Shenzhen Metro Group by issuing new shares as it will dilute existing share holders’ interest and Vanke’s profit. Read more>>

Vanke VP Says Share Sale Plan is “Life or Death” Matter

China Vanke Co, the developer whose $6.9 billion stock sale to a Shenzhen subway operator has drawn opposition from its two major shareholders, said completing the deal is a “life-or-death” matter as it seeks new ways to expand amid surging land costs.

“For our firm, the deal is not like icing on a cake, it’s a crucial matter for our future,” Vanke senior Vice-President Tan Huajie told investors, according to a recording obtained by Bloomberg News. “If we fail, we are left in an inferior position with respect to our competition.” Read more>>

Greenland Said Preparing Bid for 1000 Unit LA Project

joint venture that includes a prominent Chinese developer is looking to redevelop nearly 16 acres surrounding the North Hollywood Red Line station, an ambitious plan that could include retail shops, offices and more than 1,000 residential units.

The project, a public-private partnership with the Los Angeles County Metropolitan Transportation Authority, took a step forward Thursday when the agency’s board voted to enter into negotiations with Trammell Crow Co. and Greenland USA – a subsidiary of a Shanghai company constructing the massive Metropolis in downtown Los Angeles. Read more>>

Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.