Ralph Lauren is cutting back its Greater China footprint
Ralph Lauren may be an American legend, but his Hong Kong flagship store will soon be a local memory as the US fashion brand adapts to the city’s struggling luxury market. Also in the news today, Savills Investment Management disposes of another Asian asset, and fugitive billionaire Joseph Lau gets $125 million richer. Read on for all these stories and more.
Ralph Lauren Closes HK Flagship Store Amid Luxury Letdown
“We are in the midst of transforming our presence in China, a region that we believe will become an important driver of growth for us over the long term,” Ralph Lauren said in 2012 after the fashion conglomerate of which he was then chief executive announced plans to open 60 stores in greater China by 2015.
A year later, Ralph Lauren launched its first men’s flagship store in Asia in the Landmark Prince’s in Hong Kong’s Central district, and in October 2014 it opened an enormous “mansion” store at the Lee Gardens complex, presenting accessories, watches and jewellery as well as men’s and women’s fashions. Read more>>
Perennial, SPH Buy Out SIM Stake in Singapore Mall
Units of Perennial Real Estate Holdings and Singapore Press Holdings are acquiring a 60 per cent stake in Perennial Chinatown Point for $92.6 million.
Perennial Chinatown Point owns Chinatown Point, comprising a mall and four strata office units in an integrated development.
Perennial said in a statement on Monday (Nov 28) that it will take a 40 per cent stake for $61.8 million that will be funded by external loans. Read more>>
Tycoon Joseph Lau $125M as Chinese Estates Sells Assets
Joseph Lau Luen-hung increased his personal wealth by some HK$970 million on Tuesday, as shares in his Chinese Estates Holdings soared, the day after the firm agreed to sell two properties to his long term partner, and his son, for a combined HK$1.55 billion, and plans to issue a special dividend.
Chinese Estates shares had risen 7.05 per cent at one point, before closing the day at HK$15.58, up 4.7 per cent from Monday. Read more>>
China’s Dahua Builds A$1 Bil Project Pipeline in Australia
Chinese property heavyweight Dahua Group has outmuscled local developers to snap up a billion-dollar land pipeline in a buying spree that has handed a wealthy family, a syndicate of landowners and two young property players a $347 million windfall.
Dahua Group’s purchase of three large land parcels in Point Cook in Melbourne’s west for $347 million mirrors a year-long buying spree in Sydney’s south-west that had the Shanghai-based group spend more than $400 million on a three growth area sites in Bardia and Menangle Park. Read more>>
Top HK Developers Cut Loan Costs by 40%
The latest round of financing being raised by Hong Kong real-estate developers Wheelock & Co. Ltd and Sun Hung Kai Properties Ltd is likely to drive down loan pricing further as banks compete to lend to corporates by lowering interest rates and fees.
Despite the recent imposition of a new stamp duty, and expectations that rate hikes will curb home-buyer demand, developers are asking for 20% to 40% discounts on loan pricing compared to what they paid for similar financing in the first half of the year, knowing that banks are flooded with liquidity and craving quality assets. Read more>>
McDonalds to Keep 25% Stake in China Shops
McDonald’s Corp (MCD.N) is looking to raise $1 billion to $2 billion with the sale of its China and Hong Kong stores after the U.S. fast-food chain decided to keep “a significant minority stake in the business,” a person with direct knowledge of the plans said on Tuesday.
The company has picked a consortium led by private-equity firm Carlyle Group LP (CG.O) and Chinese conglomerate CITIC Group Corp [CITIC.UL] to buy the stores and its decision to retain a stake of up to 25 percent lowered the price tag for the business from up to $3 billion expected previously, said the person, who declined to be identified because details of the deal are not public. Read more>>
Germany’s Metro Shifts Mainland Model in Face of Rising Property Costs
Twenty years after opening its first wholesale store in Shanghai, German retail giant Metro Group has started what may be its largest-ever business transition in China.
The retailer has previously stuck rigidly to a policy of building and holding its own Metro Cash & Carry stores instead of renting from third-party landlords, a model that set it apart from competitors. 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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