Leading today’s headlines, one of Hong Kong’s biggest developers hopes to cash in on the city’s hunger for commercial space by fostering a new commercial hub in Kowloon West, while one of China’s biggest developers of homes now hopes to be the world’s largest builder of warehouses. Also, Shui On Land shows it hasn’t forgotten how to make money, and there are still more stories if you just keep reading.
New World Development is planning to invest an estimated HK$25 billion (US$3.2 billion) to create an “emerging industrial cluster” that will feature co-working concept developments in Kowloon West designed to woo innovative technology start-ups.
The developer, chaired by Hong Kong’s third richest family of Henry Cheng Kar-shun, unveiled the plan after it successfully acquired a business site for HK$2.97 billion (US$397.2 million) in Cheung Sha Wan by government tender last week, raising its land bank in the area to 2.1 million square feet. Read more>>
China Vanke said on Friday it aims to become the world’s largest logistics property developer after investing a 21.4 percent stake in Asia’s biggest warehouse operator Global Logistic Properties (GLP).
Vanke, the second-largest developer by sales in the country, has been diversifying into commercial businesses and new businesses such as rental housing as the residential sector struggles under policy cycles and fierce competition. Read more>>
Shui On Land, chaired by Vincent Lo Hong-shui, says it remains cautious on the company’s outlook, despite having already locked up more than half of this year’s 21 billion yuan (US$3.2 billion) sales target.
The company had achieved contracted sales of about 14 billion yuan , or 66 per cent of the full year target in the first seven months of this year, said Lo, after the company posted a 13 per cent rise in core earnings for the first half of 2017, compared with the year-earlier period. Read more>>
Chinese investors are showing greater interest in logistics and port assets in Southeast Asia as the government steps up efforts to discipline companies’ foreign buying, according to analysts at the PricewaterhouseCoopers (PwC) consulting firm.
Chinese companies are expected to launch more major investment deals next year targeting port operations, logistics and transportation companies in Malaysia, Singapore, Indonesia and other Southeast Asian countries, said Waikay Eik, the South China and Hong Kong markets leader of the PwC Deals Advisory practice. Such transactions would be consistent with President Xi Jinping’s ambitious Belt and Road infrastructure investment initiative. Read more>>
Lotte Tour Development Co., promoters of the upcoming Jeju Dream Tower Casino Resort on Jeju Island (pictured above) in South Korea, have raised 40 billion Wons (US $35.4 million) towards the project by issuing convertible bonds through a third party placement, Asian casino industry newsletter GGRAsia reports. According to the promoters, the money will be used to buy a “foreigners-only casino license” but also as operating capital.
The bonds issued were non-guaranteed convertible bonds that carry a 1% yield to maturity, 3-year duration, a 0% coupon and a conversion price that equals 8,300 KRW, without discount. The five backers that helped Lotte Tour raise the capital were: IBK Asset Management (1.5 billion KRW); KB Securities (3 billion KRW); Shinhan Investment (5 billion KRW); Pine Asia Asset Management (8.5 billion KRW); and Timefolio Asset Management (22 billion KRW). Read more>>
Mainboard-listed Thakral Corporation said on Friday (Aug 25) that it has accepted a successful bid of HK$420 million (about S$74.1 million) for the group’s warehouse properties in Hong Kong at a public tender which closed on Thursday.
The bid price represents a significant premium of HK$205.1 million over the net book value of the properties, which is HK$214.9 million. Read more>>