Leading the news today, Dalian Wanda Group continues to unwind its overseas property empire, with reports emerging that the Chinese conglomerate is close to selling its flagship Australian projects — and the buyer could be a controversial mainland developer. Things aren’t shaping up well for other Chinese real estate firms that ventured into India back when outbound investment was still smiled upon. But there’s good news too, because another pair of en bloc housing sites are going on sale for a combined $193 million in Singapore, and Korean institutional investors are discovering a passion for property debt. Read on for all these stories and more.
Billionaire Wang Jianlin’s Dalian Wanda Group Co is close to reaching an agreement to sell two Australian luxury property projects — one in Sydney and one on the nation’s Gold Coast, according to people familiar with the matter.
The buyer is of Chinese origin, said two of the people, who asked not to be identified because discussions are private. A deal could be announced in the coming days, the people said. Beijing-based Wanda declined to comment on Wednesday. Read more>>
Chinese property developer Yuhu, headed by mainland political insider Huang Xiangmo, which was linked to a donations scandal that engulfed the Labor Party last month is understood to be in talks to buy two landmark property sites in Sydney and the Gold Coast in a deal that could top A$1 billion. Read more>>
China’s Country Garden, Wanda Group, China Fortune Land Development Co (CFLD), and Fosun were actively perusing business opportunities India until last year. In 2016, CFLD signed a memorandum of understanding (MoU) with the Navi Mumbai planning authority, Cidco, to build townships. CFLD was also looking to build townships and city infrastructure in other parts of Maharashtra.
When contacted, Cidco Vice-Chairman and Managing Director Bhushan Gagrani said, “CFLD has not shown any interest after signing the MoU. In fact, we wrote to them but have not received any communication from them.” Talks between Country Garden and the Wadhwa Group to pick up stakes in three to four residential projects in Mumbai are also said to be on the back burner following a clampdown by the Chinese government. Read more>>
Two sites in the prime District 10 area have been put up for sale as the collective sale fever shows no sign of abating. Hollandia is up for sale at an indicative price of over S$163 million ($123 million), at a land rate of S$1,515 per sq ft per plot ratio. Located in the Holland residential neighbourhood, the property is about 700m from Holland Village MRT station, and can be developed into a building of up to 12 floors, with an allowable gross floor area (GFA) of 107,688 sq ft.
The second site is Balmoral Gardens in Balmoral Road. The freehold site can be developed into a building of up to 12 storeys and the owners expect offers over S$92 million ($70 million). All the owners have given approval for the sale, which means approval from the Strata Titles Board for the sale is not required. Read more>>
The number of foreign buyers in Montreal increased 36 per cent between August 2015 and 2016. According to Geneviève Lapointe, an analyst with Canadian Mortgage and Housing Corp (CMHC), most of the recent growth has come from Chinese investors.
China is now one of the top-three sources of foreign investment in real estate here, along with the United States and France. But according to Lapointe, the median price of a home purchased by someone from China was significantly higher: C$700,000, compared to C$465,000 for Americans and C$390,000 for the French. Read more>>
South Korean institutions are among the largest investors in real estate debt as they find the asset class less risky compared to equity. South Koreans have been investing in mezzanine debt or preferred equity, and they are more exposed to the US markets, says National Director for JLL’s Global Capital Markets Miyeon Lee.
According to Preqin, which compiles data for alternatives assets, South Korea-based investors make up the largest proportion (30 percent) of real estate debt investors in Asia-Pacific, followed by Australia (23 percent) and China (16 percent). Read more>>