This week sees a flurry of new financial reports from the region’s property developers, with 2016’s winners and losers rapidly being sorted out. Also, a Blackstone joint venture in India announces plans for $745 million in office investments, while New World and Chow Tai Fook buy a site in Qianhai for RMB 4.2 billion. Read on for all these stories and more.
Kerry Properties, a Hong Kong-listed developer with property investments in both Hong Kong and mainland China, said its underlying first-half earnings fell 34 per cent to HK$1.43 billion as property sales in Hong Kong declined.
Net profit after property revaluation gains for the six months ended June 30 was HK$2.04 billion, or HK$1.41 a share, a decrease of 27 per cent from the same period last year. Read more>>
The world’s largest private equity manager Blackstone’s Indian real estate joint venture Embassy Office Parks will invest $750 million, or around Rs 5,000 crore, in the next three years as technology services boost office space absorption in cities such as Bengaluru, Hyderabad, Chennai and Pune.
The equal joint venture between Blackstone and property developer Embassy Group will build an additional 16.5 million sq ft of office supply across these four cities, mostly through debtfinancing, Mike Holland, CEO, Embassy Office Parks, told TOI. Robust demand and supply constraints have seen vacancy levels dipping to just 4.1% in Bengaluru and 5% in Pune. This stands in stark contrasts to Delhi and Mumbai markets where vacancy levels are at 32% and 19.5% respectively amid a supply glut, industry data showed. Read more>>
New World Development (0017) and Chow Tai Fook have splashed 4.21 billion yuan (HK$4.90) for a site in Qianhai, where they plan to develop their second commercial project.
Developing a financial and commercial complex on the site, they expect to invest a total of 8 billion yuan on this project, of which 4.5 billion yuan will be registered capital. Read more>>
Mainboard-listed First Sponsor Group said on Monday (Aug 22) it will partner China Vanke and Regent Land Investment Holdings to develop its Star of East River project in Dongguan city in China’s Guangdong province.
In a share subscription agreement and assignment agreement with subsidiaries of China Vanke and Regent Land, the two investors will take up 55 per cent and 15 per cent interest respectively in the project. First Sponsor said it will retain a significant 30 per cent stake, enabling it to “participate in any potential upside in the value of the project.” Read more>>
China Vanke Co., mired in a shareholders’ tussle for control, on Monday reiterated its preference for Shenzhen’s subway operator to become its owner, saying that Shenzhen Metro’s land bank around its subway network can help grow its business.
“We still believe if Shenzhen Metro becomes a major shareholder of Vanke, it can bring lots of benefits to the company’s growth,’ Vanke’s executive vice president Wang Wenjin told reporters in Hong Kong. Read more>>
K Wah International has posted a 276 per cent rise in its underlying profit for the six months to June 30 as property sales in Hong Kong and mainland China surged.
The mid-sized developer, chaired by property tycoon Lui Che-woo, said underlying profit before fair value gain of investment properties increased to HK$1.81 billion. Net profit rose 255 per cent to HK$1.89 billion.
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