Leading today’s roundup, e-commerce giant JD.com is ramping up its logistics investments by bagging a 10 percent stake in China’s second-largest warehouse developer. The residential arm of Vietnam’s Vingroup is believed to have raised about $1.35 billion in its initial share listing on the Ho Chi Minh City Stock Exchange — falling well short of the expected maximum of $2 billion. A Chennai-based warehouse builder is angling to raise cash from the Indian logistics venture of Logos Group and Assetz Property Group, and Joy City’s latest commercial project has been unveiled in Shanghai. Read on for all the details.
JD.com, China’s second-largest e-commerce company, has bought a 10 per cent stake in China Logistics Property Holdings for HK$898.99 million (US$114.55 million) through a subsidiary, JD Subscriber, according to a filing with the Hong Kong stock exchange on Friday.
Proceeds from the sale will be used for the development of logistics park projects and as general working capital. “JD.com is the largest tenant of the group and its investment will ensure a high occupancy rate of the logistics facilities. It will also reduce the company’s debts,” said Kenneth Cheuk, chief financial officer and executive director of CNLP. Read more>>
An initial equity offering of Vinhomes JSC, the residential property development unit of Vingroup JSC, raised about $1.35 billion in Vietnam’s biggest ever issue after being priced at the top of an indicative range, sources said on Monday.
The company is betting on rising home sales to drive its business at a time when foreign and local investors are pouring money into the country, attracted by strong economic growth and a slew of sales by state-owned and private companies. Sources had previously said Vinhomes’ flotation could raise up to $2 billion. As the issue was not sold to retail investors, bankers refer to it as an initial equity offering. Read more>>
Warehousing firm Casagrand Distripark Pvt. Ltd (CGD), a developer and operator of industrial and warehousing parks, is in talks to raise around $100 million from Logos India, a warehousing and logistics investment platform, said two people aware of the development.
In August, Logos Group and Assetz Property Group, based in Sydney and Singapore, respectively, partnered to set up a logistics and warehousing platform that would invest to build and manage specialized logistics and industrial parks in India. Read more>>
A major commercial complex was launched in Putuo District over the weekend to help promote shopping and tourism in northwest downtown. The Changfeng Joy City, featuring the city’s first rooftop sports park, officially opened to visitors on Saturday afternoon as a new commercial landmark in Putuo. Over 70,000 customers rushed to the site as of 5pm on its first official opening day on Saturday.
The shopping complex covering 120,000 square metres near the Suzhou Creek was renovated from a former less popular shopping plaza. The operator added a glass dome as well as indoor gardens and decorations within the complex. Over 200 new brands have been introduced in the new site. Read more>>
The net property income of Singapore’s four largest office real estate investment trusts (REITS) dipped 3.4 percent YoY to S$48.5 million, according to data compiled by investor portal SGX My Gateway. These include CapitaLand Commercial Trust (CCT), Suntec REIT, Keppel REIT and Frasers Commercial Trust which have a combined market cap of S$18 billion.
In a breakdown, Frasers Commercial Trust reported the reported the largest decline in NPI levels which plunged 25.3 percent to S$22.4 million. The other three performed more strongly as Keppel REIT’s NPI inched by a marginal 0.6 percent to S$31.2 million whilst Suntec REIT rose 1.9 percent to S$63 million. CapitaLand Commercial Trust was the outperformer in the pack after NPI levels rose 10.5 percent YoY to S$77.2 million. Read more>>
Disposable income in urban areas averaged about RMB 36,000 ($5,533) last year, compared with RMB 24,000 for personal consumption. This difference of RMB 12,000, combined with the roughly 810 million people living in Chinese cities, should produce up to RMB 9.7 trillion in cash left over last year. But property payments apparently consumed RMB 8.6 trillion — 88 percent of the total.
Such a ratio tops the record set in 2013. The figure fell to the 70 percent range in 2014 and 2015 but surged the following two years. Devoting this large share of income toward home loans leaves less money for other spending. Sales of consumer goods declined sharply when the real estate spending ratio increased in 2011, 2013, 2016 and 2017 — and recent statistics suggest a continuing downturn in Chinese consumer spending. Read more>>