Hong Kong’s struggles to tame its housing market have been good news for the city’s biggest homebuilder which saw earnings jump 57 percent in the second half of 2016. Also in the news today, two US private equity giants are said to be shortlisted in the battle for $9.5 billion in warehouses, and there’s much more if you keep reading.
Sun Hung Kai Properties Ltd., Hong Kong’s largest developer by market value, said half-year underlying earnings rose 57 percent, as sales benefited from a surging home market.
Profit excluding property revaluations climbed to HK$14.6 billion ($1.9 billion) in the six months ended Dec. 31, compared with HK$9.3 billion a year earlier, the firm said in a statement to the Hong Kong stock exchange on Tuesday. Sun Hug Kai’s shares rose 1 percent to HK$114.60 at 9:45 a.m. in Hong Kong trading. Read more>>
Private equity firms Warburg Pincus [WP.UL], Blackstone Group LP (BX.N) and Hopu Investment were among the bidders short-listed to present a potential offer for Singapore-listed Global Logistic Properties (GLPL.SI), people familiar with the process said on Tuesday.
GLP, as the company backed by sovereign wealth fund GIC Pte Ltd [GIC.UL] is called, has picked at least three groups to move to a second phase of the process and examine the company’s financials, added the sources, who declined to be named because the information is not public. The company has a market value of $9.2 billion. Read more>>
British Land PLC and Oxford Properties Group are close to completing the sale of a prominent London skyscraper in what would be one of the city’s biggest ever property deals.
The companies on Tuesday said they were in advanced talks to sell the Leadenhall Building, known as the Cheesegrater for its triangular shape. The building is a joint venture between British Land, one of the U.K.’s biggest landlords, and Oxford Properties, the real-estate arm of Canadian pension fund OMERS. Read more>>
Chinese developers continue to face hurdles in domestic bond sales amid government efforts to tighten credit to curb the speculative fervour in the property market.
Underscoring the credit squeeze in construction and real estate development, the corporate debt market appears to have ground to a halt for real estate companies in mainland China during February, as no debt was issued by a company in the sector last month, according to data from Haitong Securities. Read more>>
Relief appears in sight at last for China Vanke.
The country’s leading real estate company has been embroiled for more than a year in a hostile takeover bid by activist investors Baoneng Group and Vanke rival Evergrande Group. But regulators have cracked down on an important funding source used by the two groups: sales of life insurance policies structured like high-risk investment products.
By containing speculative trading of shares in major companies, the regulators seek to nurse the market back to health. Such speculative moves “harmed the profits of many ordinary investors in China,” said Liu Shiyu, chairman of the country’s stock market watchdog, the China Securities Regulatory Commission. Read more>>
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