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Dalian Wanda Commercial mulls HK$31.32B privatization; Anbang drops US$14B Starwood bid

Hong Kong fling

Alittle over a year after DalianWanda Commercial Properties Co. Ltd. took the record for Hong Kong'sbiggest IPO of 2014, billionaire Wang Jianlin is looking at the property unit in a dealworth at least HK$31.32 billion.

Thoughthe potential move is still in a preliminary phase, the announcement came outof blue and surprised market observers who believe the company's undervaluedshare price could be the major reason for the privatization. The mall developeris also expected to have a reduced need for capital expenditure going forwardas it adopts an asset-light strategy that relies on outside investors to fundprojects.

Ontop of these considerations, Dalian Wanda Commercial is planning to return tothe mainland for a separate listing. It submitted a 12 billion Chinese yuanA-share listing planat the end of 2015 and is awaiting Chinese regulatory approval.

M&A updates

* Aconsortium led by China's Anbang Insurance Group from its all-cash US$14billion bid to buy StarwoodHotels & Resorts Worldwide Inc., "various marketconsiderations." The abrupt withdrawal caps off a bidding war withMarriott International Inc.,which is offering to buy the hotel chain for US$13.6 billion.

*Over in Australia, DEXUS PropertyGroup's battle for InvestaOffice Fund continues. In a move that could help push the deal overthe line, unit holders of the listed fund will a special cash distribution of 7Australian cents if the takeover proposal by DEXUS becomes effective.

As aresult, the planned April 8 meeting to vote on the offer has been adjourned toallow unit holders to consider the implications of the additional payment. Thesweetener came after the court permittedMorgan Stanley to vote on the DEXUS proposal, a ruling that analysts could lead to thecollapse of the merger.

Outbound investment

*China Vanke Co. Ltd.'s$116 million acquisitionof a vacant nursing home in New York's Lower East Side is now under investigation,various mediaoutletsreported. The city comptroller Scott Stringer subpoenaed city hall for recordsof how a land-use rule on the 118-year-old Rivington House at 45 Rivington St.was changed to pave the way for Vanke and its two local partners to purchasethe former AIDS clinic for conversion into luxury condos.

Recordsshow that nursing care provider Allure Group bought the building in early 2015for US$28 million and paid the city around US$16.2 million months later toremove the deed restriction before it sold the property to the Vanke-led group.

*Greenland Australia, a subsidiary of China's Greenland Group, seeks to work ona 900-apartment project at a 1.53-hectare land parcel in Macquarie Park,Sydney, which will be spread across six mixed-use towers, The Australian Financial Review reported.The developer boughtthe site in 2015.

*Singapore's Frasers HospitalityTrust expanded its network in Indonesia with the launch of a thirdserviced residence in Jakarta. The 151-unit Fraser Place Setiabudi propertywill help bring the trust's portfolio in the capital city to a total of eightproperties with more than 1,300 units by 2019.

Rumor mill

*Private equity giant BlackstoneGroup LP is believed to be preparingto sell its A$220 million portfolio of homemaker centers on Australia's easterncoast, amid declining yields in the sector. The portfolio includes LoganMegaCentre near Brisbane and the Shepparton Homemaker Centre in Victoria.

*Middle Eastern-backed group World Trade Centres Holdings is believed to beinterested in acquiring the former Myer Megamart site in the central businessdistrict of Perth, as it plans to develop one of the tallest skyscrapers in theWest Australian capital, The Australianreported.The Beaufort Street site will house twin apartment towers valued at up to A$500million.

Owning a home in China

*Property companies in China will pay value-added tax instead of business taxstarting May 1, as the government carriesout the VAT pilot program. The current business tax on sales is at 5% andthe new policy's 3.3% actual tax rate will mean significant cost savings fordevelopers, The South China Morning Postreported,citing industry analysts.

*Local governments in China's first-tier cities are reining in the hot propertymarket with new cooling measures set to start immediately. Shenzhen authoritiesincreasedmortgage down payment requirements for first-time buyers who have taken outmortgages over the past two years and some second-time buyers to 40% from 30%.In addition, non-local buyers who want to buy properties in the city will onlybe qualified if they have paid income tax and social security premiums for thepast three years.

Meanwhilein Shanghai, local families with one property will have to paya minimum 50% down payment for a second home, with the down payment raised to70% if the house is either above 140 square meters or priced above 4.5 millionyuan and located within the inner ring. The new rules also restrictnonresidents from buying property if they do not have at least five years ofsocial security contributions in the city.

Eye on earnings

*Shimao Property Holdings Ltd.said its attributable profit dropped 24.5% year over year to around 6.12billion yuan for full year 2015.

*Longfor Properties Co. Ltd.'sattributable profit amounted to 8.99 billion yuan in the year ended Dec. 31,2015.

*Evergrande Real Estate Group Ltd.said its net profit dropped 3.8% year over year to 17.3 billion yuan in fullyear 2015.

Money ball

*Hopson Development Holdings Ltd.plans to an issue upto 15.00 billion yuan of domestic corporate bonds to qualified investors inChina.

*KWG Property Holding offering two typesof domestic bonds worth a combined 2.20 billion yuan.

*Future Land Development HoldingsLtd.'s unit issued3 billion yuan of nonpublic bonds as the second tranche of its 5 billion-yuanbond program.

*Greentown China Holdings Ltd.inked a deal to raiseUS$400 million through a securities issue.

*CapitaLand Commercial Trustissued HK$585.0 million fixed-rate notes due March 22, 2021, as part of thetrust's S$2.00 billion multicurrency medium-term note program.

Now featured

: Just 15 months after its rock star entryonto the Hong Kong listed market, Dalian Wanda Commercial Properties is lookingat a delisting through privatization.

: Now that Anbang Insurance Group isback in pole position to take over Starwood Hotels, the regulatory hurdles theChinese insurer must pass to close a deal have come under sharper scrutiny.

: SNL-coveredAsia-Pacific real estate companies traded at a 3.25% median premium to NAV asof March 23, up from a 2.73% premium as of year-end 2015.

: The April 1 editionof Asia-Pacific property news recap also features Kenedix Office's ¥15.55billion purchase of a Tokyo property and Frasers Hospitality Trust's thirdserviced residence in Jakarta.

: S&P Global Market Intelligence presentsa weekly rundown of recent significant management and board changes andpersonnel moves in the European and Asia-Pacific real estate industries.