Li Ka-shing seems happy with the opportunity for a new funding channel
In our latest roundup of regional news headlines, Hong Kong tycoon Li Ka-shing sets his sights on a SPAC for raising funds, the US government closes the sale of its Shouson Hill compound after a delay, and Singapore’s Straits Trading prepares to relist its ARA asset management arm.
Hong Kong’s Li Ka-shing Plans US SPAC
Li Ka-shing, Hong Kong’s richest property tycoon, is planning to raise funds for dealmaking by listing a special purpose acquisition company in the US, people with knowledge of the matter said.
A company backed by Li’s family is working with advisers on the potential SPAC IPO, according to the people, who asked not to be identified because the information is private. They are considering seeking around $400 million, though the exact terms haven’t been finalised, the people said. Read more>>
US Closes Sale of Hong Kong Consulate Property to Hang Lung
The US government has sold an exclusive Hong Kong property for $332 million, after a holdup while it sought permission from Beijing for the deal.
Hong Kong developer Hang Lung Properties said Thursday that it had closed its purchase of the former residential compound for US consulate staff. Hang Lung, which is controlled by billionaire Ronnie Chan, said last week that China had given the US its written consent. Read more>>
Straits Trading Shines Ahead of ARA’s Potential $6.4B Relisting
Already a majestic name on the Singapore Exchange, legacy trading firm Straits Trading is set to boost its regal splendour as its “crown jewel” ARA Asset Management prepares for relisting in 2021-22. With the real estate fund management business potentially worth $6.4 billion in the best-case scenario, the relisting is set to be a key catalyst for Straits Trading as ARA goes public once again.
“Since its delisting in 2017, ARA has grown at an astronomical pace and expanded its offering beyond real estate private funds and REITs, and now includes listed and unlisted REITs, private real estate equity and credit funds, and infrastructure funds in its staple of products,” said Chung Wei Le and Derek Tan of DBS Group Research. Read more>>
Hong Kong May Convert Five Kai Tak Commercial Sites to Residential
Five commercial lots in a key development hub in Hong Kong could be rezoned for private housing to help cope with a shortage of residential land, Financial Secretary Paul Chan revealed during his budget address on Wednesday.
The plots are located at the former international airport site in Kai Tak and include three that the government failed to sell over the past two years because property developers’ bids did not meet the undisclosed reserve price. They will yield about 5,800 private flats, according to officials’ preliminary estimate. Read more>>
Cromwell E-REIT Raises €100M in Private Placement
Cromwell European Real Estate Investment Trust has raised €100 million ($122.2 million) from a private placement of 232.6 million new units, its manager said on Thursday.
Cromwell E-REIT had sought to raise at least €90 million by placing out between 200 million and 209.3 million units. The placement was upsized following strong demand, the manager said. Read more>>
Shenzhen Housing Speculators Suffer as Govt Curbs Market
Shenzhen’s local government is seeking to stem a housing market bubble in the city by setting “reference prices” for lived-in homes at below-market levels, a move that is expected to squeeze mortgage financing for homebuyers.
The Housing and Construction Bureau on 8 February disclosed the indicative prices for 3,595 lived-in residential estates in the city dubbed as China’s Silicon Valley, following a series of administrative curbs last year to tame the market. Read more>>
Hong Kong Home Prices Edged Upwards in January
Hong Kong’s home prices snapped three months of decline in January, official data showed on Wednesday, starting 2021 with a modest gain amid a jump in launches and optimism that new vaccines will speed up the economic recovery.
Private home prices in one of the world’s most expensive markets climbed 0.13 percent last month, the data showed, compared with a revised 0.3 percent drop in December. Read more>>
Hongkongers Buying More UK Homes After New National Security Law
Hong Kong residents are buying more houses and apartments to lease out for income in Britain, property agents say, a trend that coincides with what many expect to be a wave of emigration after China passed a national security law last year.
Hongkongers became the fifth-largest foreign investor group in central London as of last August and have been driving up prices in some popular districts outside the UK capital. Read more>>
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