China’s new home prices extended a decline in May, falling by the most in nearly 10 years
China’s home price slide accelerated in May, despite government efforts to support the sector, with that story leading Mingtiandi’s headline roundup today. Also making the news is developer China Vanke, which saw its shares drop after taking out a $565 million loan, and Nomura Real Estate says it’s scaling up its overseas business.
China Home Prices Fell at Fastest Pace in a Decade Despite Rescue Effort
New home prices in China extended a decline in May, falling by the most in nearly 10 years as a massive rescue package has yet to make an impact.
Prices of new homes in 70 medium and large cities fell 0.7 percent in May from the previous month, the steepest since declining 0.8 percent in October 2014, according to data published by the National Bureau of Statistics on Monday. On a year-on-year basis, prices slumped 4.3 percent. Read more>>
Vanke Shares Fall After Struggling Builder Takes Out Seventh Loan in a Month
Shares of China Vanke fell after the troubled developer said it had secured RMB 4.1 billion ($565 million) from Postal Savings Bank of China, marking its seventh bank loan in less than one month.
Vanke was trading down 3 percent at RMB 7.70 as of the lunch break in Shenzhen on Monday. The loan is divided into two tranches, the Shenzhen-based company announced on Friday. Read more>>
Nomura Real Estate Eyes 15% Overseas Profit by 2031
Japanese real estate giant Nomura Real Estate Development aims to obtain over 15 percent of the group’s profits from its overseas business by fiscal 2031.
Nomura said that to achieve the target it plans to invest roughly JPY 550 billion ($3.4 billion) in its overseas business by the fiscal year ending March 2031. Read more>>
Evergrande Liquidation Law Firm Probing PwC, Others for Potential Claims
Lawyers appointed by the liquidators of China Evergrande are investigating some of the developer’s service providers, including former auditor PricewaterhouseCoopers, to potentially recoup losses for creditors, three sources said.
Evergrande, once China’s largest developer, was ordered to be liquidated by a Hong Kong court in January after it failed to deliver a concrete restructuring plan for its $23 billion worth of offshore debt deemed to be in default. Read more>>
Warburg Pincus, QIA in Talks to De-Risk Shriram Group Arm Investment
Leading US-based global growth investor Warburg Pincus is in discussions with multiple investors to de-risk the INR 46.3 billion ($554.1 million) acquisition of Shriram Housing Finance (SHFL).
The board of Shriram Finance Ltd (SFL) on Monday approved the sale of housing finance subsidiary SHFL to Warburg Pincus to focus more on its core operations and secure growth capital. Read more>>
Thailand’s Central Buys Rest of German Retail Business KaDeWe
Thai retailer Central Group agreed to acquire the assets it has not already secured in KaDeWe Group, a chain of landmark department stores in Germany, part of tycoon Rene Benko’s folded property empire.
Central purchased the eponymous Berlin luxury department store KaDeWe in April, saying at the time it would seek to also buy the two other stores of the portfolio, Alsterhaus in Hamburg and Oberpollinger in Munich. Read more>>
OUE REIT Completes $184M Inaugural Green Notes Issuance
OUE REIT has completed the issuance of its S$250 million ($184.8 million) inaugural green notes at a 4.1 percent fixed rate due in 2027.
The REIT’s manager announced in a bourse filing on Friday that the issuance attracted strong investor demand, with a final order book of S$425 million, indicating an oversubscription of 1.7 times over the final upsized offer. Read more>>
IMC Leases Mumbai Office in One of India’s Highest Rental Deals
In one of the highest rental transactions in India, IMC Securities, a subsidiary of global trading company IMC Trading, has leased an office complex in Mumbai’s Bandra Kurla Complex for INR 700 ($8.38) per square foot, documents accessed by Propstack show.
The space is located on the fourth floor of Maker Maxity 4 North Avenue building and the lease period is set to start on Sunday. The transaction was signed on 5 June, the documents show. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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