Longfor boss Wu Yajun is braving an anxious market with her property management IPO
In today’s roundup of regional news headlines, Chinese developer Longfor reportedly lines up backers for a $1 billion Hong Kong IPO of its property management arm, an Ikea-anchored mixed-use project is planned for the New Delhi area, and cash-strapped Kaisa proposes an extension for a dollar bond nearing maturity.
Longfor Hopes for $1B Property Management IPO in Hong Kong
Longfor Group Holdings is considering an initial public offering for its property management business in Hong Kong that could raise as much as $1 billion, people with knowledge of the matter said.
The Chinese real estate developer is working with China International Capital, HSBC and JPMorgan Chase on the proposed first-time share sale, said the people. The listing could take place as soon as the first half of 2022, the people said, asking not to be identified discussing private information. Read more>>
Ingka Centres to Build $449M Ikea Mixed-Use Project in India
Ingka Centres, part of the Ingka Group (which includes Ikea Retail and Ingka Investments), will develop a major new Ikea-anchored mixed-use project in Gurugram, a city southwest of New Delhi, in the state of Haryana.
The development, with a gross building area of 130,000 square metres (1.4 million square feet), will complement the company’s plans announced for Noida earlier this year. Read more>>
Kaisa to Propose 18-Month Extension for Bond Due in December
Cash-strapped Chinese developer Kaisa Group plans to propose an extension of one-and-a-half years for its $400 million US-dollar bond maturing on 7 December, financial intelligence provider Redd reported, citing two sources briefed on the matter.
Redd said that the plan, which is expected to be released to bondholders as early as this week, might not carry any upfront cash or additional credit enhancement. Read more>>
China Oceanwide’s Retail Investors Look to Blackstone Deal for Hope
Chinese private investors were nervous about the news when US private equity group Blackstone announced in June that it would acquire Massachusetts-based media and research firm International Data Group.
The $1.3 billion transaction, which closed on Wednesday, will transfer funds to China Oceanwide Holdings, a former owner of IDG and a real estate developer with an international footprint and a range of outstanding debt. Read more>>
Major Chinese Cities Cut Land Sale Prices by Up to 20%
Major cities in China are slashing the price of land they are auctioning off in an effort to attract bids from cash-strapped property developers facing a market downturn.
Beijing put 12 parcels of land on the market on 19 November, including two in eastern Chaoyang district with a combined reserve price of RMB 4.8 billion ($750 million), 15 percent lower than they were priced in September. Read more>>
Shanghai Imposes Cap on Rents for Affordable Housing
China’s financial capital, Shanghai, will cap rental increases for low-cost housing at 5 percent per year, to officially limit how fast rents can climb in one of the country’s most expensive cities to live in.
Rents for affordable housing should also be no more than 90 percent of the rental value of other housing types in the same location, Shanghai’s vice-mayor, Tang Zhiping, told a news conference on Tuesday. Read more>>
Veteran Investors Snapping Up Hong Kong Retail Assets
Hong Kong’s retail property assets are attracting a slew of domestic individual buyers, suggesting that the year-long market fallout induced by the COVID-19 pandemic and recession may be bottoming out, according to industry experts.
Local investors accounted for all of the 15 retail transactions last quarter, according to Colliers International, based on deals above the HK$100 million ($12.8 million) threshold. They made up only 20 percent in the second quarter and 80 percent in the first quarter, with corporate and institutional investors picking up the rest. Read more>>
Mindspace REIT Sees India Office Rentals Rising on Supply Crunch
Mindspace Business Parks REIT, which runs office complexes across four big Indian cities, expects rentals to rise on tighter supply of new high-quality office assets, according to the company’s chief executive.
The company is witnessing an increased volume of leasing by technology, financial services and fintech firms, CEO Vinod Rohira said in an interview with Bloomberg TV on Tuesday. Read more>>
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