Hillhouse’s Zhang Lei hasn’t gotten his hands on Yum China just yet
Figuring out the value of China’s retail markets leads today’s roundup of real estate news from the region as the owner of the mainland’s KFC, Pizza Hut and Taco Bell outlets is said to have turned down a reported $17.6 billion buyout offer, and the country’s biggest seller of home appliances reports a RMB 457 million loss. The ongoing policy tightening of China’s residential markets also makes the headlines as developers in Sanya are told to lower previously approved pricing after average home prices dared to rise last month. Read on for the details on all these stories and more.
Yum China Said to Reject $17.6B Hillhouse-led Offer
Fast-food chain operator Yum China Holdings Inc (YUMC.N) has rejected a $17.6 billion buyout offer from a consortium led by Chinese investment firm Hillhouse Capital Group, quashing what would have been one of Asia’s biggest deals this year, people with direct knowledge of the matter said.
The Hillhouse-led consortium, which included regional investment house Baring Private Equity Asia, expressed an interest to offer $46 per share, or nearly 24 percent above Tuesday’s closing price, for the biggest fast-food chain in China, the people said. Read more>>
Gome Posts RMB 457M Loss on Restructuring
Gome Retail Holdings has posted a loss attributable to shareholders of RMB457 million for the first half of this year as it continued with implementation of its Home – Living strategic restructure. The loss was a contrast to the profit of RMB122 million in the same period last year.
Gome Retail chairman Zhang Da Zhong said the group accelerated its transformation into “a one-stop home solution provider. At the same time, it promoted the overall integration of its online to offline businesses, aimed at raising management efficiency and enhancing consumer experience. Read more>>
Chinese Developers Lose Lust for Land as Market Curb Take Effect
Last year China’s more aggressive property developers were willing to pay whatever it took to secure land banks, but today China is seeing a surge in failed land auctions. The trend has been especially noticeable in bigger cities since July as developers face reduced liquidity and thinning margins due to a prolonged tightening of government policy and a weaker macroeconomic environment.
On a single day this month, Jinan, a second-tier city in China’s northeastern Shandong province, saw eight plots of land go unsold at auction, 10 parcels change hands at the reserve price and one plot sold for a premium of less than 4 percent. Read more>>
Sanya Developers Told to Cut Prices, Hold Them Down for Six Months
Sanya, China’s southern tropical resort city, has introduced the country’s harshest home price cap yet, asking developers to lower prices and freeze them for six months, under heightened pressure from Beijing.
The city becomes the second city in Hainan province, often dubbed “China’s Hawaii”, to demand developers adjust pre-approved prices after provincial capital Haikou made the move on Sunday. The two cities were ranked as having the nation’s highest pace of price rises last month: 19 per cent and 16.5 per cent, respectively. Read more>>
Transplanted Chinese Developer Launches First Melbourne Project
Chinese developer Wonder Property is preparing to launch its first Melbourne project in Doncaster East, adding to its $150 million development pipeline with projects in Ivanhoe and Donvale.
The developer’s site in Doncaster East, 22 kilometres north-east of Melbourne’s CBD, was acquired last year for $18 million from the Uniting Church of Australia who owned the property for 35 years. Read more>>
Round-Edged Furniture Called Key to Micro-Flat Happiness
“Cosy”, in real-estate speak, often means someone’s renting out their broom cupboard. In Anne Choy’s 300 sq ft Wan Chai flat, the word has warmer connotations.
Filled with her collections of designer furniture, objets, books and wine corks, her new home is comfortable and doesn’t cramp her style. It also offers her an enviable work-play-rest balance – she walks to her office, returns for lunch with her cat and enjoys the city’s conveniences: the tong lau walk-up is moments from unique shops and cafes, but in a traffic-free enclave. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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