C&W Leads China’s Big Brokerage Deals of April 2017

Today Mingtiandi rolls out the first monthly edition of our series covering the biggest transactions brokered by the largest property consultancy firms operating in China.

With asset values continuing to climb, our team of researchers gathered the details on the top brokers handling more than RMB 6 billion ($878 million) worth of properties during the month of April alone.

Read on for all the details on who sold what to whom for how much money, and who were the brokers that helped them get the deal done.

Investment Brokerage

Cushman & Wakefield successfully advised on the sale of Metropolitan Plaza in Guangzhou to Hong Kong’s Link REIT for RMB 4.1 billion. Alvin Yip, Co-Head of Investment and Advisory Services for China at C&W led the property consultancy’s team in facilitating the signing of an agreement between the sellers — funds managed by Gaw Capital Partners and Morgan Stanley Real Estate Investment — and Link REIT in early April, according to a statement by the Hong Kong-listed trust. A final closing for the deal was announced in May. This was the second time that Cushman & Wakefield’s team had advised on the sale of the 88,726 square metre shopping centre, after assisting Cheung Kong Properties in selling it to Gaw and Morgan Stanley in 2013.

Colliers International’s Capital Markets and Investment Services team advised Hong Kong Shanghai Alliance on the RMB 1.37 billion sale of Shanghai Central Park to BlackRock. Betty Wong, Head of Capital Markets and Investment Services for China led the Colliers team in successfully marketing the 31,700 square metre office building on Changshou Road to the US asset management giant.

Colliers International announced in late April that it had successfully brokered the sale of the Dongfang Chunyi Building (东方纯一大厦) developed by Shanghai Chun Yi Industrial Co. The 40,000 square metre grade A office complex in Lujiazui, consisting of a 30-storey tower and two separate commercial buildings, was sold to IDG Capital for an undisclosed sum.

JLL assisted both the buyer and the seller when Shanghai Chengli Properties sold two blocks of the Belgravia Place serviced apartment property in Shanghai to a unit of Hong Kong-listed CIFI Group in April, according to a statement by the company. Head of Capital Markets for China, Johnny Lu Shao was assisted by broker Winnie Yao in the 10,538 square metre transaction on Xingfu Lu in the city’s former French Concession. According to local media reports the space traded at approximately RMB 70,000 per square metre in an offshore transaction.

CBRE acted as the sole agent for Zhongrong Holdings Group (中融集团) on the sale of a portfolio of assets in Shanghai, including strata-title floors in the Zhongrong Jasper Tower and Zhongrong Hengrui International Plaza in Pudong’s Lujiazui Financial District, according to the company’s WeChat channel. The buyer for the portfolio was Shanghai Bulls Fund Management, according to local media reports.

Sole Agency Appointments

In early April, mainland commercial agency CRG announced that it had been appointed as the sole agent for the sale of the China Merchants Tower, a 103,000 square metre, 211-metre tall grade A office building in Shenzhen’s Nanshan district, according to the company’s WeChat channel.

Financial Advisory

In early April, JLL announced via its WeChat channel that it had successfully brokered the first set of commercial mortgage-backed securities (CMBS) issued by SOHO China. The securities, which sold for a total of RMB 381 million were handled via the Shanghai Stock Exchange.

Leasing Brokerage

In early April, Savills announced via its WeChat channel that it had been appointed to offer commercial agency service for Chengdu Magic Cube (大魔方), a 1 million square metre mixed-use complex developed by Chengdu Zhongye Wentou in the southern part of Chengdu’s Hi-Tech District.

In mid-April, Knight Frank announced via WeChat that it had been appointed as the sole agent for the leasing of a 29,400 square metre standard warehouse located in Shanghai’s Pudong district.

About Mingtiandi’s Big Brokerage Deals

The information in this report is gathered from Mingtiandi’s direct survey of the top commercial brokerages operating on the mainland, and supplemented with reports from the local press and social media.

Watch out next week for the Hong Kong edition of this report with a Singapore version on the way next month, and our May mainland report will be on its way to you soon.

If you or your company have recently scored a major investment, financial advisory or leasing win, or have landed a new appointment, we invite you to share the details with us, and you may see your name here in Mingtiandi.