McDonald’s served up a $2 billion takeaway order for CITIC and Carlyle
Mickey D’s has decided that selling out may be its best mainland strategy in 2017 – especially as it involves taking in more than $2 billion from CITIC and Carlyle. Also in today’s headlines, developer CSI cashes out in Causeway Bay and Shanghai authorities shut the door on the latest scheme for getting around purchase restrictions. Read on for all these stories and more.
McDonald’s Flips China Business to CITIC and Carlyle for $2 Bil
McDonald’s Corp. was one of the first American brands to strike gold in China, becoming a symbol of the Asian giant’s opening to the West. Now as competition grows in China, the restaurant chain is handing over the reins to a Chinese state-owned enterprise, in a deal that would value the business at as much as $2.08 billion.
The Oak Brook, Ill., company said Monday it is selling an 80% stake in its China operations to a group that includes Citic Ltd., its investment-management arm Citic Capital Holdings and U.S. private-equity firm Carlyle Group LP. The Citic companies would own a combined 52% stake, while Carlyle would own 28%. Read more>>
CSI Sells Causeway Bay Projects for HK$1.7 Bil
CSI Properties announced on Monday that it has sold its J Plus hotel and an adjacent site in Causeway Bay for HK$1.7 billion to finance its new projects in Hong Kong and on the mainland.
The company said the asset disposal would reap a gain of HK$1 billion. Proceeds from the transaction would be reinvested in new projects, including the Oriental Crystal Building in Central, the Legendaire Residence in Beijing and the Richgate Shopping Arcade in Shanghai, according to a company statement. Read more>>
Sino Land Boss Hosts Dinner for HK’s Carrie Lam in Run-Up to Election
Chief Secretary Carrie Lam Cheng Yuet-ngor, who is believed to be joining the race for chief executive next year, attended a dinner hosted by Sino Group chairman Robert Ng Chee-siong and his son Daryl Ng Win-kong at their Mount Cameron home where the guest list included many second-generation tycoons and election committee members.
After the banquet, Lam did not respond to reporters’ questions about whether she was campaigning for votes, the Hong Kong Economic Journal reports. Read more>>
China’s Biggest Developers Stock Up on Sites During Downturn
Some of China’s leading developers are quickly snapping up plots of land at knock-down prices after new cooling measures effectively blocked their smaller competitors from bidding.
Under new policies introduced in October in several mainland cities, developers are barred from bidding for land using borrowed money. They now have to rely entirely on their own cash to buy land, which gives cash-rich property giants a distinct advantage over most small players. Read more>>
Shanghai Shuts Down Online Sales of Offices
The Shanghai municipal government has temporarily suspended online sales of commercial real estate designated for office use, after illegal modifications to allow for residential usage was uncovered.
Illicit marketing tactics by developers of some such projects have misled buyers and led to complaints, the city’s Urban and Rural Construction and Transportation Commission said in a statement on Saturday. Read more>>
Getting Ready for China’s Next Real Estate Slowdown
After more than a year of euphoria in China’s housing market, 2017 looks to be a perilous letdown.
Property prices in the Middle Kingdom surged 18% in the first 11 months of 2016, continuing the previous year’s rebound. The rally was kicked off by the biggest, so-called Tier 1 cities in 2015 but has since spread to smaller ones. Property prices in the southern metropolis of Shenzhen, for example, have doubled from two years ago, after rising by another 29% in 2016. Shanghai prices increased by 24%. Smaller, Tier 3 cities’ prices have gone up 9%—making 2016 the first year of gains in three years. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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