Is real estate finance among Wang Jianlin’s new business initiatives?
China’s biggest real estate transaction ever seems to also include one of the biggest loans ever as Dalian Wanda is said to be providing RMB 29.6 billion in financing for Sunac to buy a portfolio of hotels and theme parks. Also in the headlines today, a German fund house tests the market for an office tower at Singapore’s Raffles Place and mall owners shouldn’t get too optimistic. Read on for all these stories and more.
Wanda Loaning Sunac $4.35 Bil for Theme Park, Hotel Buyout
Dalian Wanda Group’s $9.28 billion sale of its theme parks and hotels to developer Sunac China Holdings Ltd. 1918 -0.12% has an unusual twist: Wanda is helping Sunac finance almost half of the deal.
Regulatory filings show that Wanda, the giant Chinese property and entertainment company, will take out a three-year bank loan of 29.6 billion yuan ($4.35 billion) and lend the money to Sunac. Sunac will use the borrowed funds to pay Wanda to gain ownership of its theme-park business, according to the documents filed by Sunac on Tuesday. Read more>>
Deka Immobilien Puts Singapore’s Chevron House on the Block for S$700M
Deka Immobilien GmbH, a unit of Germany’s DekaBank Group, is putting up an office building for sale in Singapore’s central business district, according to a person familiar with the matter.
The tower, Chevron House, could fetch about S$700 million, said the person, who asked not to be identified because the sale process is private. Deka acquired the property for around US$420 million (S$580.8 million) in 2010 from a property fund managed by Goldman Sachs Group, the company said at the time. Read more>>
SG Residential Site Brings Top Bid of S$701M
A unit of Chip Eng Seng Corp and Unique Real Estate has put in the top bid for a plum site in Woodleigh Lane. The Government land sales site tender attracted 15 bidders – close to what analysts had predicted – with offer amounts exceeding expectations.
The 99-year leasehold site launched on May 30 under the confirmed list for the first half of this year drew a top bid of $700.7 million from CEL Unique Development, which is 60 per cent owned by Chip Eng Seng Corp, and 40 per cent by Unique Real Estate. Read more>>
Henderson Heir Warns of Lost Decade for Mall Operators
Shopping mall operators on the mainland are bracing for a difficult decade as their retail tenants continue to lose market share to online vendors, suggesting little room to push up leasing rates in line with historic trends, according to a major Hong Kong based developer.
Henderson Land Development vice chairman Peter Lee Ka-kit, the eldest son of Hong Kong’s second-richest man Lee Shau-kee, said rental pressure on shopping malls would persist. Read more>>
Yanlord Said Joining Perennial in Bid for United Engineers
Yanlord Land Group Ltd., the China-focused developer, is partnering with Perennial Real Estate Holdings Ltd. in a bid for century-old Singapore property group United Engineers Ltd., people with knowledge of the matter said.
A consortium including Perennial and Yanlord plans to announce an agreement as soon as Thursday to buy Oversea-Chinese Banking Corp.’s stakes in United Engineers and its WBL Corp. subsidiary, the people said, asking not to be identified because the information is private. Read more>>
China Oceanwide LA Project to Include Park Hyatt Condos
More than 160-Park Hyatt-branded luxury condos are headed to South Park’s megaproject Oceanwide Plaza, developers Oceanwide Holdings announced Tuesday. The condos will share the 53-story tower with a Park Hyatt hotel.
Scheduled to go on sale in early 2018, the condos will range from one-bedrooms to duplexes and half-floor units that will measure up to about 8,700 square feet. All the master suites will include walk-in closets and floor-to-ceiling glass windows. Pricing information was not released. Read more>>
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