Shimao Services Aims for HK$9.8B IPO And More China Real Estate Headlines

Today, Mingtiandi is trying out a new content type, with our introduction of a digest of mainland China real estate news stories curated from the local press.

We lead off today’s collection of headlines from around China, with an update on a Hong Kong IPO for Shimao’s property services spin-off, and a move by Evergrande to reduce its debt through early redemption of overseas bonds. We welcome your feedback on this new service.

Shimao Services Aims for HK$9.8B IPO

Shimao Group Holdings is aiming for a HK$9.8B ($1.3 billion) IPO for its Shimao Services spin-off, according to local news reports.

The share offering for the property services company, which is being led by CICC and Morgan Stanley, has been priced at HK$16.6 per share, according to mainland news site Guandian. Shimao intends to use the proceeds to expand its business, upgrade its technical capabilities, to develop value-added services and for general operating funds. Read more>>

Evergrande Opts for Early Redemption of HK$12B in Senior Notes

Evergrande announced on October 23rd that it had redeemed 11% of its senior notes due in November, worth a total of HK$12.13 billion ($1.57 billion). So far, Evergrande has repaid all of its bonds due in 2020.

Evergrande stated that this early repayment of bills is to reduce debt levels and financing costs while indicating that the redemption will not have a significant impact on the company’s financial status. Read more>>

Tmall Takes Aim at Beike with Singles Day Campaign

Alibaba’s Tmall Haofang spin-off has ramped up its online home-listing services to compete with local rival Beike, one of the biggest property platforms in mainland China. According to Tmall Haofang, more than 3,000 value-added properties are now online at discounts of up to 50 percent.

Among the major developers partnering with Tmall Haofang to set up official stores are Country Garden, Zhongnan Group’s Zoina Land, Poly Development, R&F Properties, Sunac China and more. Read more>>

Jing’an Mixed-Use Site Attracts Just Two Bidders

Currently only two developers have registered to bid for a mixed-use site in the Tianmu area of Shanghai’s Jing’an district, with the auction deadline set for 29 October.

The 28,300 square metre (304,619 square foot) commercial, cultural and residential property near the Shanghai railway station is being made available at an auction reserve price of RMB $4.16 billion ($620 million). Read more>>

Tahoe Group Records RMB 2B Jan-Sep Net Loss

On October 23rd, Tahoe Group announced its third quarter report, which revealed that the developer had achieved revenue of RMB 2.8 billion ($420 million) during the first nine months of this year — which is a year-on-year decrease of 86.75 percent.

Net profit attributable to shareholders of the Shenzhen-listed company was negative RMB 1.97 billion marking a year-on-year decrease of 193 percent. Read more>> 

Xiamen’s Tallest Building Marked Down 25% in Resale Effort

On October 25th, information from an auction site operated by Alibaba showed that Xiamen’s tallest building, the Xiamen International Center, and the adjacent Baojia Center are being lined up for a second auction attempt at a 25 percent markdown.

According to Guandian, the valuation of the dual property asset is nearly RMB 5.2 billion. The starting price for this latest auction is RMB 2.91 billion, which is a decrease of RMB 728 million from an earlier auction attempt on 21 and 22 October. Read more>>

China Land Purchases Fall to 3-Year Low in September 

Expenditures on land acquisitions by China’s 50 largest real estate developers sank to their lowest level in three years during September, after surging in the second quarter, according to a recent report by E-House Enterprise.

The analysis shows that the amount of land purchased by China’s real estate giants totalled RMB 150 billion ($22.4 billion) last month, which was some 42 percent less than the monthly average amount acquired during the second quarter. Read more>> 

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.