Hong Kong’s Gaw Capital Raising US$500 Mil to Invest in US Real Estate – and more of Today’s China Real Estate Links | September 5, 2013

Here is a list of the day’s latest China real estate news collected from around the web:

• Hong Kong’s Gaw Capital Raising US$500 Mil to Invest in US Real Estate

  Gaw Capital Partners, a Hong Kong-based private equity real estate company focused on Greater China and Asia, said on Tuesday said it had formed a company that intends to raise up to $500 million to invest in U.S. commercial real estate.

  Timothy Walsh, the former chief investment officer and director of New Jersey Division of Investment, the state’s $74 billion public pension fund, was named president and chief operations officer of Gaw Capital US, Gaw Capital Partners said.

• Beijing ranks first in number of int’l retailers

  Beijing ranks first in China in the number of retail stores for international brands, according to a recent report released by commercial real estate services firm CB Richard Ellis (CBRE).

  China’s total retail sales of social consumer goods have seen two-digit growth for years, and retail property market has also witnessed rapid development. The report shows over the past five years, increase of total stock of retail properties more than doubled.

  By the end of the second quarter of 2013, total stock of the retail property market in Beijing, the commercial center of China, has exceeded 7 million square meters. Beijing is one of China’s most mature retail property markets. Over the past seven years, the city’s property market has experienced three peak supplies, said Chen Hongfei, director of CBRE.

• E-commerce hitting China’s big cities first

  Mainland developers are being forced by booming online sales to come up with new strategies to make their retail outlets attractive to buyers who are turning increasingly to the internet to do their shopping.

  Management consultancy Bain & Company reported last month that China is set to overtake the United States as the world’s largest e-commerce market by the end of this year.

  “The popularity of online shopping has affected the businesses of supermarket chains such as Walmart and Carrefour, as well as retailers of mobile and electronic appliances and lower-end fashion,” said Steve Chen, head of retail at property consultant DTZ in Greater China. “About 10 per cent of the business done in their stores has been taken over by online shopping.”

• SouFun Continues Climb On JPMorgan Initiation

  China online real estate company SouFun Holdings (SFUN) stock was up 10% in midday trading Tuesday, at an all-time high, building on Friday’s gains after JPMorgan analysts initiated coverage with a rating of overweight, or buy.

  SouFun stock was trading near 46 midday in the stock market Tuesday, after rising 7.4% on Friday. The stock is in the eighth week of an eight-week hold rule after breaking out at 27.90 in July and quickly rising more than 20% past the buy point. The stock jumped in early August after its Q2 results beat expectations, as IBD reported.

• Chinese Insurers Have $14 Billion to Buy Overseas Real Estate

  Chinese insurers could spend about $14.4 billion on overseas commercial real estate, aided by a stronger local currency and easier regulations amid a limited supply of prime properties at home, CBRE Group Inc. said.

  The insurers are seeking high-quality office investments in international gateway cities such as London, New York and Toronto, according to an e-mailed release from CBRE. Asian markets with similar cultural backgrounds such as Singapore, Hong Kong and Malaysia will also be major destinations, it said.

• Real estate sector propels market rally

  After Monday’s anemic rise, stock markets on the Chinese mainland hit the throttle Tuesday as rumblings on the policy front pulled investors off the sidelines.

  The Shanghai Composite Index picked up 24.66 points, or 1.18 percent, to finish at 2,123.11; while the Shenzhen Component Index advanced 124.46 points, or 1.51 percent, to 8,368.04.

  Combined turnover totaled 218.59 billion yuan ($35.71 billion), holding steady with Monday’s 218.46 billion yuan.

  Rural reform expectations catapulted agriculture stocks ahead by an average of 4.71 percent. The implications of possible reforms acted as a catalyst for several other of the market’s weightiest sectors.

• HSBC China August Services PMI Rises

  The HSBC China Services Purchasing Managers’ Index rose to 52.8 in August, hitting a five-month high and rising from 51.3 in July, HSBC Holdings PLC said Wednesday.

  A reading above 50 in the gauge of nationwide service-sector activity indicates on-month expansion.

  The HSBC China Services PMI accelerated in August thanks to the growth of new business, HSBC’s chief economist for China, Qu Hongbin, said in a statement.

This list is updated daily, so tune in again tomorrow for more up to date information.

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