China Resources Land earnings rising 11.7 percent amid the mainland property crisis
One of China’s largest state-owned developers has posted double-digit profit growth for 2023, despite the troubles facing most of its competitors, with that story leading Mingtiandi’s roundup of real estate headlines from around the region. Also in the news, Blackstone and GIC have reportedly dropped talks for a sale of an India office portfolio and disgraced WeWork co-founder Adam Neumann is offering to buy out the office sharing company for $500 million nearly four years after being ousted by its board.
China Resources Land Posts 11.7% Profit Jump Despite Mainland Slump
China’s troubled property market is on track for a gradual return to stability despite the many challenges it still faces, China Resources Land said as it posted another profitable year in 2023, extending its streak through all crises since at least 1997.
Earnings at the nation’s fourth-largest developer rose 11.7 percent to RMB 31.4 billion ($4.4 billion) compared with 2022, according to a filing with the Hong Kong stock exchange on Tuesday. Read more>>
Blackstone, GIC Said to End Talks for Sale of India Office Portfolio
Talks between global asset manager Blackstone and GIC for a property sale broke down over valuation issues as the Singapore sovereign wealth fund was not prepared to meet the price that Blackstone had on the table. Sources said that both parties have walked away from the deal because they could not agree on the pricing.
Blackstone had put on the block half of the stake in some commercial real estate assets that it owns jointly with the Panchshil Group and Salarpuria Sattva, and its asking price was between $1.5 billion and $2 billion. Read more>>
Adam Neumann Bids Over $500M to Buy Back WeWork
Adam Neumann has submitted a bid of more than $500 million to buy back WeWork, the office-sharing company he co-founded and propelled to a $47 billion valuation before it fell into bankruptcy, a source familiar with the matter told Reuters.
It is not clear how Neumann is planning to line up financing for his bid, the source said, requesting anonymity as the discussions were confidential. Read more>>
Hong Kong Home Prices Slid Again in February to Lowest Since 2016
Hong Kong home prices in February fell for the 10th month to the lowest level in seven and a half years, after a sharper than expected month-on-month slump.
A widely watched gauge tracking lived-in home prices slipped 1.7 percent to 302.5 in February, the lowest since 296.2 in September 2016, according to data from the Rating and Valuation Department. The index eased 1.2 percent in January. Read more>>
IGIS Asset’s Mall of K Real Estate Fund Faces Default Risk
IGIS Asset Management’s real estate fund tied to the Mall of K, a shopping complex in Seoul, is facing an event of default due to insufficient funds for upcoming loan interest payments. The shopping complex is known for housing Konkuk University CGV.
An EOD is when an event occurs that allows the lender to demand early repayment of the loan before its normal due date. It is also commonly referred to as the event of “loss of the benefit of time” in a loan agreement. Read more>>
Andrew Left, Banned for Evergrande Warning, Wants an Apology
US short-seller Andrew Left wants an apology from Hong Kong’s market regulator — and a refund.
The founder of Citron Research was fined HK$1.6 million ($204,580) and hit with a five-year trading ban from a city tribunal in 2016 for questioning the financial soundness of China Evergrande Group years before the developer’s collapse. The verdict came after Hong Kong’s Securities and Futures Commission accused Left of market misconduct and making “reckless” allegations about Evergrande’s accounting and finances in a 2012 research report. Read more>>
Hong Kong Property Tycoons Are Selling Super Call Options
Consider Uptown East in Kowloon Bay, developed by Wong Sun Hing Ltd. Its latest pre-sales pitch included a so-called “super flex stage payment plan”, where buyers only need to put down 5 percent deposit, with the rest to be paid upon completion, expected in 2025. This payment plan was not available earlier this month.
Last week, Wong Sun Hing and its partner New World Development sold 50 of the latest 132 units on offer in the first 30 minutes. A recent survey by Bloomberg Intelligence shows that more than half of Hong Kong’s home buyers could accelerate their purchase plans over fears of price hikes. Read more>>
Orrick Closes in Shanghai, Taipei as Greater China Retreat Continues
US law firm Orrick Herrington & Sutcliffe will consolidate its China offering into its Beijing office after deciding not to renew its lease in Shanghai, a spokesperson has confirmed. It has also terminated its lease and operations in Taipei.
Two partners from the Shanghai office, Ethan Ma and Jeffrey Sun, along with two associates and one staffer, will be affiliated with the Beijing office. Eight other employees (including one associate and one consultant) will be offered market severance. Orrick currently has no resident lawyers in Taipei. 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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