Gemdale Sells Shenzhen Project for $463M and More Asia Real Estate Headlines

Gemdale chief executive officer Xu Jiajun

Mainland developer Gemdale is selling a commercial and residential complex project in Shenzhen for $463 million, with that story leading today’s collection of headlines from around the region. Also in the news, EC World REIT says three of its properties have been mortgaged without its manager’s knowledge and China’s Wanda Group sells a Shanghai mall.

Gemdale Sells Shenzhen Project, Raising $463M to Ease Funding Pressure
Shenzhen-based Gemdale Properties and Investment, along with its joint venture partner, have agreed to sell a project in the developer’s home city to a buyer controlled by the municipal government, garnering RMB 3.3 billion ($463 million) from the sale to help pay debt.

Gemdale will transfer its 51 percent stake, with its partner also exiting the combined residential, hotel and office project, in Shenzhen’s Futian district. Sales of the residential portion of the project began in September with just 34 percent of its 714 units having sold by 28 December. Read more>>

EC World REIT Says Three Properties Mortgaged Without Consent
Three properties owned by Anhui-based EC World REIT have been mortgaged without the consent or knowledge of its manager, according to a statement this week. The loans were in connection with the provision of rescue funds by the local government of Fuyang, Anhui province to Forchn Holdings, the sponsor of EC World REIT, which is based in the city.

The manager of EC World REIT said in a bourse filing on Tuesday that the properties — Fuzhou E-Commerce, Fu Heng Warehouse and Hengde Logistics — were mortgaged between 20 November and 24 November in favour of two Fuyang government-linked entities in China. Forchn Holdings chairman Zhang Guobiao is also chairman of EC World REIT. Read more>>

Wang Jianlin Sells Shanghai Mall as Asset Disposals Continue
Shanghai Jinshan Wanda Plaza, a mall in the southern reaches of China’s commercial capital, has been taken over by an entity linked to Beijing-based GSUM Fund Management as the shopping centre’s former owner, Dalian Wanda Group, continues to sell assets in a struggle for liquidity.

The sale of the Jinshan mall, which was reported by the Paper, citing official records, follows GSUM’s recent purchase of Wanda Plazas in the Jiangsu province cities of Taicang and Huzhou, as well as in Guangzhou’s Luogang district. Read more>>

Sunac Kunming Wanda City Project Fails to Sell at Government Auction
A court-ordered auction of land use rights and buildings in Sunac China Holdings’ Kunming Wanda City project failed to sell at the reserve price of RMB 560 million ($79 million), according to a local news report citing online records.

Valued at RMB 800 million, the project on Majie Street in the Yunnan provincial capital’s Xishan District had been listed on an Alibaba auction platform on 28 November and is among a set of 13 theme parks and 76 hospitality assets which Sunac acquired from Wang Jianlin’s Dalian Wanda Group in 2017 for $9.3 billion. Read more>>

China Injects $50B Into Policy Banks in Stimulus Push
The People’s Bank of China injected nearly $50 billion worth of low-cost funds into policy-oriented banks last month, suggesting the central bank may be ramping up financing for housing and infrastructure projects to support the economy.

The outstanding amount of the PBOC’s Pledged Supplemental Lending programme to policy banks climbed to RMB 3.25 trillion ($456 billion) at the end of December from RMB 2.9 trillion in the previous month, the central bank said Tuesday. The net injection of RMB 350 billion was the largest increase via the tool since November 2022. Read more>>

Central China Real Estate Replaces Auditor After KPMG Resigns
Central China Real Estate announced the resignation of its auditor KPMG with effect from 29 December.

Following the resignation, the company proposed ShineWing (HK) CPA Ltd as the new auditor to fill the casual vacancy and to hold the office until the conclusion of the next annual general meeting of the company. Read more>>

Hong Kong Property Deals Fell to 33-Year Low in 2023
Property transactions in Hong Kong descended to the lowest level in 33 years in 2023 as sentiment among potential homebuyers was submerged under a deluge of poor economic news and high interest rates, although December’s sales figures showed some rebound.

A total of 58,035 properties changed hands in the city in 2023, a 2.7 percent drop compared with 2022 and the lowest figure since 1991, according to Land Registry’s data released on Wednesday. The total value of transactions plunged 13.8 percent year on year to a 10-year low of HK$477.9 billion ($61 billion), the government data showed. Read more>>

Hong Kong Home Prices to Erode Another 10% in 2024
Hong Kong’s home prices will drop another 10 percent in 2024 as a looming supply glut and high interest rates continue to suppress investment sentiment even though the local stock market may rebound by midyear, according to Citigroup.

The US Federal Reserve will start cutting interest rates in July and reduce them by 0.25 percent at each subsequent meeting, for a total cut of 1 percent this year, the investment bank forecast on Tuesday. Read more>>

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