Holy Week was a good time to get deals done for some of the region’s biggest real estate investors, with Morgan Stanley’s Asia core fund buying a Melbourne asset from TH Real Estate, and Blackstone teaming up with a Chinese auto parts maker to buy an $850 million tower. Meanwhile in the UK, Wanda’s Wang Jianlin hopes for a $2 billion payday from a movie theatre IPO and there’s much more if you just keep reading.
Morgan Stanley Fund Buying Melbourne Tower Stake From TH
Morgan Stanley Real Estate Investing’s (MSREI) core Asia fund is buying TH Real Estate’s 50% stake in a Melbourne office tower for around AUD100m (€62m).
Sources confirmed that the parties have been negotiating and are due to close the deal today. IPE Real Estate understands that MSREI is acquiring the asset for its Prime Property Fund Asia, an open-ended core fund. Read more>>
Wanda’s Odeon Unit Aims for $2B London IPO
Exhibition giant AMC Theatres has started work on a potential London stock market listing of Odeon, the Britain-based European cinema chain it owns, Reuters reported Thursday, citing sources familiar with the matter.
Citi is working on an initial public offering with AMC of Odeon, which also includes Scandinavian exhibitor Nordic Cinema, which the company bought last year, with the stock market listing possibly coming by mid-2019, according to the report. It said it could value Odeon at more than $2 billion. Read more>>
Chinese Investment in US Dropped by 54% in 2017
Chinese investment in U.S. commercial real estate is falling, an ominous sign for landlords with buildings to sell.
After several years of breakneck deals around the globe, Chinese firms are slowing down as their regulators restrict overseas investment in an effort to curb speculative purchases and keep capital from flowing out of the country. In New York City, the biggest beneficiary of the shopping spree, Chinese companies bought just $3.4 billion of properties in 2017, a 54 percent decline from the prior year, according to a report Tuesday by Cushman & Wakefield. Read more>>
Blackstone Teams With China’s Wanxiang in Bid to Buy $850M Chicago Tower
The American arm of Wanxiang Group Corp., a Chinese multinational automotive components manufacturing company, is part of a joint venture with Chicago-based Sterling Bay and an affiliate of Blackstone Group that is planning to buy the 2.3 million-square-foot Prudential Plaza office complex in downtown Chicago. The price tag could top $850 million, according to CMBS documents related to the property.
SL PRU LLC, the current borrower for the Prudential Plaza loan, has asked its lender for approval to sell the building to an entity called Wanxiang Sterling Stetson Owner. The buyer would also assume the related debt on the property. Read more>>
Did Creative Accounting Help Sunac See 45% Gain on Wanda Assets in 6 Months?
The mania in China’s property market has implications far beyond its borders. The prolonged boom, and the glut of demand it generates, has been crucial in supporting commodity exporting economies, such as Brazil and Australia, in the post financial crisis era.
In 2016, according to the FT, property investment accounted for 10 per cent of the red state’s GDP. When steel, cement, glass, furniture and other property-related sectors are included, this number is closer to a whopping 20 per cent. Read more>>
CFLD Declares 35% Jump in Net Profit for 2017
According to the 2017 Annual Report issued by China Fortune Land Development (CFLD, 600340.SS) in the evening of March 29, the net profit attributable to the listed company’s shareholders totaled CNY 8.781 billion, with a year-on-year growth of 35.26%. The net profit margin reached 14.72%, a record high for the past three years.
Data shows that CFLD had a sales volume of CNY 152.212 billion in 2017, up 26.50% from one year earlier. According to CRIC, a leading real estate data service provider, CFLD’s sales volume ranks ninth in China in 2017. The company’s monetary funds peaked at CNY 68.105 billion, accounting for 18.12% of the company’s total assets and guaranteeing its operation and development. Read more>>
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