Wanda Sports Shares Fall 36% on Debut and More Asia Real Estate Headlines

A disappointing Nasdaq IPO leads the way in Mingtiandi’s roundup of Asia real estate headlines today with the news that a mainland developer’s sports and media arm saw its shares drop by more than a third after scaling back the size of the offering from $500 million to $308 million.

Over in the US, a condo project funded by the same developer has sold less than half of its units with only one year left before opening, while back on the mainland, bankruptcies among developers have risen by more than half this year.

Elsewhere, a Singapore REIT’s Q2 distribution per unit drops 24 percent, and a Japanese developer buys a second office in Vietnam.

Wanda Sports Falls 36% to Notch 2nd Worst US IPO of 2019

Wanda Sports Group fell 36 percent in its trading debut after its US initial public offering raised only $190 million, less than half its earlier goal for the listing.

The American depositary shares priced in the IPO at $8 and then opened at $6. The shares ended the day worth only $5.16 a share, valuing the Beijing-based company at $705 million after the second-worst debut on a US exchange this year. Read more>>

Wanda Chicago Tower Struggles After Chinese Buyers Disappear

A $17 billion drop in Chinese purchases of U.S. residential properties has real estate firms formerly looking for sales from China changing their pitch.

At Wanda’s Vista Tower, a 93-story Chicago condo development that once staked some of its sales future on Chinese buying, the Chinese pullback is “disappointing,” said Sean Linnane, a Magellan executive vice president who’s overseeing the Vista sales effort. “Given that we have this Chinese partner who has a pretty good reputation in China, we thought we would capture more sales to Chinese nationals.” Read more>>

Bankruptcies Among Chinese Developers Up By Half

The number of Chinese property developers going out of business as they find themselves struggling to borrow money amid a slowing economy has gone up by half, according to official figures.

So far this year, 274 builders have filed for bankruptcy, a rise of 50 percent from a year ago, according to the website of the People’s Court Daily, a state-owned publication. Read more>>

Sabana REIT Q2 DPU Falls 24.4%

Loss of income from a recently divested property, absence of a one-time recovery of costs for another, plus lower revenue and net property income (NPI) due to a challenging market, dampened results for industrial property owner Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) in its second quarter.

Distribution per unit (DPU) shrank to 0.62 Singapore cents from 0.82 Singapore cents in the previous year, while Q2 income available for distribution fell 24.1 percent to S$6.6 million ($4.8 million) from the previous year. Read more>>

Nomura Buys 2nd Office Property in Vietnam

Nomura Real Estate Development Co. has acquired a second office building in Vietnam in a fresh bid to boost its operations in Southeast Asia.

The major Japanese property developer announced the acquisition of full ownership of Zen Plaza in Ho Chi Minh City, which was owned and managed by Zen Plaza, for an undisclosed amount. Read more>>

Suzhou Tightens Property Restrictions for Fourth Time this Year

Suzhou, a city near Shanghai of interlocking canals and waterways, has tightened its real estate regulations for the fourth time this year, as the city’s overheating home market defied policies to bring affordability within reach.

The local government doubled the tax return period in the city – an eligibility criterion for immigrant buyers of Suzhou’s homes – to two years, and broadened its jurisdiction to the entire city, including the Kunshan and Taicang counties, according to a Wednesday announcement. Read more>>

Colliers Says Weakening Hong Kong Housing Market Will Recover

Mass demonstrations in Hong Kong in recent months will have only have a short-term impact on its housing market, with pent-up demand and a shortage of land expected to support prices, realtors said.

Real estate consultancy Colliers International forecast housing prices in one of the world’s most expensive property markets will fall 4 per cent in the second half, but still rise 6 per cent for the full year. Read more>>

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