Hong Hong’s shopping strips could do with some revenge spending
Plunging retail sales lead the way in Mingtiandi’s roundup of Asia real estate headlines today as shoppers continue to stay away from the high streets in one Asia retail hub, triggering a 36 percent drop in purchases.
In other news around the region, developers may not stump up the asking price for the prime property the US government is looking to sell, while a Singapore asset manager has submitted plans for $544 million office tower in Australia.
Elsewhere, the CFO of a Chinese insurer has snapped up a pad in a luxury development in Hong Kong.
Shoppers Stay Away from HK’s High Streets
Hong Kong’s retail sales fell by 36.1 percent in April from a year earlier, hammered by the outbreak of the new coronavirus that has sent many retailers to the brink of collapse.
Sales dropped to HK$24.1 billion ($3.11 billion), government data showed on Monday, the fifteen consecutive month of decline. March plunged 42.1 percent and February’s fall was 44 percent. Read more>>
Hong Kong’s Downturn Could Dampen Demand for US Govt Residences
A prime Hong Kong property put on the market by the US government has hardly generated any excitement among the city’s developers, as they weigh the sector’s prospects amid a difficult economic and political climate, while market observers expect the sale may not live up to its top billing.
Last Saturday, the US government invited tenders for six multi-storey mansions at 37 Shouson Hill Road with stunning views of Deep Water Bay. However, market observers said the plot with an area of over 90,000 square feet may not fetch the estimated value of between HK$3.1 billion ($400 million) and HK$5 billion. Read more>>
ARA Planning A$800M Office Project in Melbourne
The Australian arm of Singapore-headquartered ARA Asset Management has lodged plans for an A$800 million ($544 million) 21-storey office tower at Melbourne’s landmark Southgate site.
The tower will add 39,000 square metres (419,793 square feet) of net lettable area to Melbourne’s large supply pipeline of office stock, with the asset set to come online in June 2024. Read more>>
Deloitte Sues Shanghai HNA Unit for HK$4M in Unpaid Fees
A unit of debt-laden Chinese conglomerate HNA Group has been hit with a lawsuit by Deloitte Advisory (Hong Kong), which is suing for HK$4 million ($515,952) in unpaid service fees, according to a court document.
Deloitte Advisory, a consultancy unit of “Big Four” international accounting firm Deloitte, submitted a writ on Friday to the Court of Instance at Hong Kong’s High Court against HNA Technology, formerly known as HNA Logistics Group, a Shanghai-based unit of the conglomerate. Read more>>
Luckin Boss to Exit UCAR after Coffee Scandal Infects Stock Value
Charles Lu Zhengyao, the former billionaire co-founder of scandal-hit Luckin Coffee, appears set to exit from China’s largest car rental firm after agreeing to sell his remaining interest in the company to Beijing Automotive Group.
UCAR, an investment unit controlled by Lu, plans to dispose of all its remaining 21.26 per cent stake in Hong Kong-listed Car Inc to Beijing Automotive for an undisclosed price, according to an exchange filing on Monday. The stake is worth about HK$999 million (US$129 million) based on the firm’s current market value. Read more>>
Uzbekistan Sells Hotel Stake to Singapore-based Firm
Uzbekistan has sold a controlling stake in its most famous hotel to a firm based in Singapore as Tashkent tries to breathe new life into the Soviet-era Brutalist landmark.
The sale of Hotel Uzbekistan, which once featured regularly on postcards of the capital, comes as the central Asian country seeks to draw foreign investment and tourists. Singapore-based Bashan Investment Group has acquired 80 per cent of the huge hotel for $23.2 million in a competitive auction, Uzbekistan’s state assets management agency said. The state will retain a minority stake. Read more>>
Ping An CFO Buys Hong Kong Pad for HK$45M
Ping An Insurance (2318) chief financial officer Jason Yao Bo bought a 1,215 square foot flat at the Grand Austin, a joint venture luxury project in Tsim Sha Tsui for HK$45 million ($6 million).
The selling price for the unit jointly built by New World Development and the MTR was 30.3 percent higher than what the vendor had paid for the home in 2014. Read more>>
Tune in again soon for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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