Alibaba’s Singles Day celebration next month is expected to move $10 billion worth of merchandise, but this year the annual shopping event will also include a Shanghai skyscraper, or at least 25 floors of one.
The inclusion of the residential section of the Tomorrow Square building near People’s Square leads Mingtiandi’s mainland China real estate news digest today, followed by a string of reports of asset-backed security sales and a management reshuffle at China Resources Land after a land sale was rigged.
On 27 October, an attempted auction of the 7th to 32nd floors of Shanghai’s Tomorrow Square on Alibaba’s online marketplace failed. There were 514 people who set up reminders and 53,862 people who signed up to follow the auction, but none registered to participate in the bidding.
Following the frustrated tender, a second attempt at an online sale for the serviced apartment property will be held during Alibaba’s Singles Day promotion on 11 November. The starting price for the asset will be reduced by 20 percent from RMB 2.57 billion ($380 million) to RMB 2.05 billion. Read more>>
According to the Hong Kong Stock Exchange on 26 October, the IPO of Sunac Services Holdings Co Ltd was officially approved by the bourse’s management.
Based on data collected, Sunac Services has provided property management services in China for more than 16 years, mainly in first- and second-tier cities. As of 30 June 2020, the company’s contracted total construction area under management was 232 million square metres (2.5 billion square feet), covering 127 cities in 29 provinces, autonomous regions and municipalities in China. Read more>>
Shenzhen SCPG Commercial Property Development Management Co Ltd, a retail real estate unit of China Vanke, together with investment bank CICC, have successfully marketed RMB 4 billion ($600 million) in commercial mortgage-backed securities carrying 4.4 percent interest rate.
The ABS, which were listed on the Shenzhen stock exchange, have a maturity of 18 years, with JLL having acted as valuer for the assets linked to the financing package. Read more>>
According to exchange documents, RMB 1.37 billion ($200 million) in securities, backed by the Shanghai Chengtou Building in Yangpu district, were issued on the Shanghai Stock Exchange on 22 October.
Shanghai Chenghong Real Estate Co Ltd is the issuer for the asset-backed securities, and the underwriter/manager is Western Securities. The valuer for the property was Cushman & Wakefield and the ABS carry an interest rate of 3.9 percent. Read more>>
According to local news reports, citing exchange documents, a set of asset-backed securities linked to Shanghai Baodi Plaza Phase I, a property of Shanghai Baodi Asset, was listed on the Shanghai Stock Exchange on 20 October. The ABS programme is worth RMB 1.67 billion ($250 million), and carries an interest rate of 3.5 percent.
The issuer is Shanghai Baodi Yangpu Real Estate Development Co Ltd, and the underwriter/manager is China Securities. The value for the asset was Cushman & Wakefield. Read more>>
Colliers recently released its Shanghai 2020 Q3 office market report, showing that rental demand for office buildings and industrial parks in Shanghai has continued to pick up and market confidence is steadily recovering.
Colliers believes that the office market will be more active in the fourth quarter of 2020, as market demand is gradually accelerating. But with the increasing pressure, the average rent may continue to fall until it stabilises and rises again in 2021. Read more>>
According to a local news report on 25 October, China Resources Land has reshuffled its management following a bid-rigging incident in Shanghai earlier this year. The Shanghai government cancelled the Hongkou district land sale after China Resources Land, China Overseas Land & Investment (COLI) and China Vanke had all placed the exact same minimum bid for the site.
Chen Gang, the general manager of China Resources Land’s East China Region, who was once investigated in the matter, has recently been recalled to group headquarters, although he retained the position of vice president. Wang Xinyi was shifted from Shenzhen to serve as vice president of China Resources Land’s East China Region. Read more>>