
Zhang Yuliang, Chairman of Greenland Group
Even in the midst of one of China’s biggest property boom cycles ever, there are still those companies that can’t make money, as Greenland Group revealed this week in its interim financial report. Also in the news, GLP sells off four sheds in Japan, China gives the green light for converting farms into rental apartments, and R&F takes opportunistic strategies to a new level with the first reported Zimbabwean steel deal for a mainland developer.
Greenland Group Discloses Overdue Debt
Greenland Holdings Corp, China’s fourth-biggest developer by property sales, said it had overdue loans of 457.5 million yuan ($69.2 million) in some units in the northeast province of Liaoning at the end of June, underscoring concerns about the company’s debt problems.
Companies under Greenland’s unit in Liaoning had overdue short-term debt of 247.5 million yuan, as well as 210 million yuan in long-term obligations, according to Greenland’s interim report dated Aug. 25. The company told Bloomberg News last week its project in China’s northeast faced repayment problems due to the region’s weak real estate market. Read more>>
GLP Sells 4 Japan Logistics Facilities for $472M
GLP, the leading global provider of modern logistics facilities, continues its capital recycling strategy with the sale of four Japan wholly owned properties for JPY51.6 billion (US$472 million1). The four properties are 100% leased, single-tenant facilities comprising a total gross floor area of 206,000 square meters (“sqm”) (2.2 million square feet (“sq ft’)).
The sale price is 5%2 higher than the latest appraisal values and equates to a weighted average cap rate of 4.5%. GLP expects to receive net sale proceeds3 of US$266 million upon the scheduled completion on 1 September 2017. Read more>>
China Launches Program to Build Rental Housing on Farmland in 13 Cities
China will launch pilot programs in 13 major cities, including Beijing and Shanghai, to build rental housing in rural land, the land ministry said on Monday.
The programs are part of broad efforts to ease a housing supply shortage, the ministry said in a statement on its website. Read more>>
Changsha Solves Housing Cost Problem By Capping Land Sale Prices
One Chinese city is capping the bids that developers can make in three land auctions in September, the official Xinhua News Agency said on Monday, in an effort to rein in its still-surging home prices.
The ceilings will be imposed in Changsha, capital of Hunan province in southern China. Read more>>
New World Dept Store Privatisation Plan Flops with Shareholders
Plans by the parent firm of New World Department Store China to take it private for HK$934.5 million have failed, after not managing to garner enough support from independent shareholders for a full buyout of the operation.
By the end of its final closing date on Monday, New World Department Store had received valid acceptances representing 83.90 per cent of shares owned by independent shareholders, just shy of the 90 per cent required to proceed under company law. Read more>>
R&F Continues Overseas Spree With $1B Zimbabwe Steel Deal
Chinese firm R&F will invest $1 billion in Zimbabwe Iron and Steel Company (Ziscosteel), Industry and Commerce Minister Mike Bimha said yesterday, the latest attempt to revive the moribund steelmaker, once the largest integrated steel works in the region which shut in 2008. Bimha said steel output is expected to start within 18 months once negotiations have been completed.
“We are looking at an initial injection of over $1 billion and it will probably come to $2 billion when we proceed but it’s not a small project, it’s a huge project and a lot of work to be done…,” Bimha told journalists at State House where the R&F founder Zhang Li — whose net worth is $3.3 billion — met President Mugabe. Read more>>
Singapore Home Sale Surge Said Driven By Local Buyers
Private home sales have rebounded to levels not seen since 2013, in what is the clearest sign yet that the residential property market is emerging from its lengthy slump.
The rally that has marked the first seven months of the year is being fuelled by local, rather than foreign, demand, analysts say. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply