Soho saw the value of its commercial assets take a hit this year
The coronavirus appears to have claimed another victim with Soho China declaring that its proposed deal with Blackstone to privatise the company had fallen apart as real estate markets struggle with shifts in valuation.
While that transaction fell apart, fresh government numbers published late last week show that real estate investment across mainland China grew 3.4 percent in July compared to a year earlier, with average home prices inching up by 0.5 percent compare to a month earlier.
Soho China Announces End of $4B Sale to Blackstone
Beijing-based office developer Soho China, which was in talks with US private equity group Blackstone about a privatisation deal worth more than US$4 billion, said on Thursday that the deal was off.
The company, which is listed in Hong Kong and is famous for buildings designed by late British Iraqi architect Zaha Hadid, said in a filing to the Hong Kong stock exchange that: “All previous discussions with various investors have now been terminated and have not at this time resulted in the terms for a potential transaction being agreed.” Read more>>
China Home Price Growth Slows to 0.5% in July
China’s new home prices rose at a slightly slower monthly pace in July but growth remained steady, data showed on Friday, as consumer confidence continues to recover from the coronavirus crisis.
Average new home prices in 70 major cities rose 0.5% from July, compared with a 0.6% increase in June, Reuters calculations showed. Read more>>
Mainland Real Estate Investment Grew 3.4% in July
China’s real estate investment rose 3.4% in January-July from a year earlier, official data showed on Friday, quickening from a 1.9% uptick in the first six months.
Property sales by floor area fell 5.8%, according to data from the National Bureau of Statistics, narrowing from an on-year decline of 8.4% in the first six months. Read more>>
WeWork Gets $1.1B Cash Injection from Softbank
The owner of money-losing shared office provider WeWork told employees on Thursday it has slashed its cash burn rate almost in half from the end of last year and obtained a $1.1 billion commitment in new financing from majority owner SoftBank Group Corp.
The company said in an e-mail to employees that its second-quarter results show the coronavirus pandemic has hurt business but its financial position remains strong. Read more>>
Hong Kong Kerry Hotel in Co-Working Deal as Guests Disappear
The coronavirus pandemic is forcing a hotel and a co-working space operators to collaborate in a whole new way, one that involves profit sharing instead of the traditional tenant-landlord relationship.
Hong Kong-based co-working company theDesk is now occupying 6,600 sq ft in the Hong Kong hotel group Shangri-La’s Kerry Hotel in the city’s Hung Hom district. Read more>>
Alibaba Closes Shenzhen Grocery Stores as Virus Surges
Alibaba-owned supermarket chain Freshippo said on Saturday it has shut 21 of its Shenzhen stores and was requiring all its employees in the city to undergo tests for the novel coronavirus after three cases were found at one of its outlets there.
Freshippo said two brand promoters and one staff member who worked at its store in the IBC mall in Shenzhen’s Luohu district had tested positive for the virus, citing findings made by the city’s health authority. Read more>>
Mainland Landlord Dream Tested by Downturn
Not yet 30, Beijing office worker Li thought she was already on her way up China’s private property ladder with two apartments bought and rented out. Then came the new coronavirus, jobless tenants leaving town and a rent falloff.
She’s one of millions of Chinese landlords who have bought apartments to let in a highway to the country’s growing middle class, many now facing a first slump in rental income. Read more>>
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