May 22, 2024
Property

Roundup: CICC, New China Life Set Up $1.4B Property Fund


China International Capital Corporation chief executive Zhaohui Huang

China International Capital Corporation chief executive Zhaohui Huang

State-owned New China Life and CICC have set up a $1.4 billion fund to invest in companies with real estate projects, with that story leading Mingtiandi’s roundup of headlines. Also in the news, mainland home sales continue their slide despite Beijing’s policy efforts and Shanghai-based CIFI sells a stake in a Nanjing project.

Chinese State-Owned Firms Establish $1.4B Project Mop-Up Fund

Two Chinese state-owned companies will establish a RMB 10 billion ($1.41 billion) fund to invest in companies with real estate project assets.

Under the agreement, New China Life Insurance will be the limited partner providing RMB 9.9 billion in capital and China International Capital Corp will act as general partner managing the fund, New China Life said late Monday. Read more>>

China Home Sales Fall Again as Policy Shifts Fail to Stem Decline

The slide in China’s home sales accelerated in December, underscoring the challenges to arrest the country’s property slump.

The value of new home sales among the 100 biggest real estate companies fell 34.6 percent from a year earlier to RMB 451.3 billion ($63.7 billion), compared with a 29.6 percent decline in November, according to preliminary data from China Real Estate Information Corp on Sunday. Read more>>

Shanghai’s CIFI Sells Stake in Nanjing Project

CIFI Group Holdings announced to the Hong Kong Stock Exchange on 29 December that it is selling its one-third stake in a Nanjing project to a joint venture controlled by private firm Shanghai Wanming Enterprise Management for RMB 313 million ($44 million).

The Shanghai-based developer has selling off assets after defaulting on offshore bonds more than one year ago and said in the statement that, “The Disposal will enable the Group to reallocate resources to other projects in the future key development regions and enhance the Group’s liquidity to ensure the delivery of properties and continuation of its business operations.” Read more>>

China New Home Prices Rose for 4th Straight Month in December

China’s new home prices rose for the fourth straight month in December, a private survey showed on Monday, buoyed by a slew of government support measures.

Prices rose 0.1 percent on average in December from the previous month after rising 0.05 percent in November, according to the survey by real estate research firm China Index Academy. Read more>>

Korea’s Finance Minister Vows to Manage Real Estate Risks

Korea’s new finance minister, Choi Sang-mok vowed Tuesday to strive to revive the livelihoods of the people and thoroughly manage risks regarding real estate project financing and other potential economic issues.

Choi delivered the message during his inauguration ceremony held online, four days after taking office Friday, according to the Ministry of Economy and Finance. Read more>>

Institutional Investments in India Real Estate Declined 37% in Q4

Institutional investments in India real estate fell 37 percent annually in the October-December quarter to $822.3 million as fund inflows were less in all asset classes, according to Colliers.

The consultancy’s data showed that institutional investments in real estate stood at $822.3 million during the fourth quarter of 2023, as against $1.3 billion in the year-ago period. Read more>>

Mumbai Property Deals Hit 11-Year High in 2023

Mumbai recorded the best in 11 years the total property sale registrations in 2023. This resulted in the best year since 2013 for property sales for this region surpassing last year’s peak by 4 percent, data compiled by real estate consultant Knight Frank India showed.

In 2023, the Mumbai city area which falls under Brihanmumbai Municipal Corporation jurisdiction, recorded total registrations of 127,139 real estate properties. Read more>>

Japanese Return to Overseas Real Estate With Lessons Learned From 1990s

Big Japanese investors stumbled disastrously into the US commercial real estate market in the late 1980s, when they bought high-profile properties like New York’s Rockefeller Center not long before the market fell hard.

Now some Japanese institutional investors and real estate companies are back — but this time it isn’t about flaunting trophy purchases. It is about diversifying portfolios for the long term and getting good bargains while the market is slumping. Read more>>

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.





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