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China's HNA to buy Carlson Hotels; Greenland Hong Kong launches US$8B fund with Kuwait


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China's HNA to buy Carlson Hotels; Greenland Hong Kong launches US$8B fund with Kuwait

HNA's shopping spree

Continuingthe run of overseas deals by Chinese firms, a unit of conglomerate HNA Groupagreed to buy Carlson Hotels Inc., the home to brands like Radisson and CountryInns & Suites, in a dealthat is believed to carry a US$2 billion price tag.

Thepurchase includes Carlson's majority stake in Brussels-based , which ispublicly listed in Stockholm and manages more than 450 hotels across Europe,the Middle East and Africa.

Theagreement was signed between Carlson Hospitality Group Inc. and HNA TourismGroup Co. Ltd.'s hotel management arm, HNA Hospitality Group, which operatesabout 500 hotels in China and other countries.

Includingthe US$6 billion buyout of Ingram Micro in January, the deal will mark HNA'sfourth cross-border transaction since the start of the year, London's Financial Times reported,citing data from Dealogic. Over the past 12 months, HNA has paid at leastUS$14.2 billion, making it one of the top drivers of cross-border ChineseM&A this year, the publication added.

HNA'slatest hotel purchase also comes after it bought a 15% stake in U.S. chain Red Lion Hotels mid-2015.

OtherChinese investors active in the global hotel investment scene include FosunInternational, which bought ClubMéd in 2015, as wellas Anbang Insurance Group, which acquired the Waldorf Astoria NewYork in 2014 and pursued StarwoodHotels & Resorts Worldwide Inc. earlier this year.

Outbound investment

*Greenland Hong Kong Holdings Ltd.,the subsidiary of China's state-backed Greenland Group, and Kuwait StrategicInvestor agreed to jointly establishthe Silk Road Integrated Real Estate Fund with a targeted size of US$8 billionand a term of eight years. The fund will invest in a range of high-endresidential and commercial properties and would begin "in-depthcooperation with several Middle East sovereign funds," according to astatement.

Inaddition, Greenland Hong Kong would issue 459,005,021 convertible preferredshares to Kuwait Strategic Investor's Al Waseet International. Conversion of theshares would make Kuwait Strategic Investor the second-biggest shareholder inGreenland Hong Kong. In exchange for the shares, Greenland Hong Kong wouldacquire a 41% effective interest in the luxury Project Lane real estatedevelopment located at Central Park South in New York.

*Singapore-listed Heeton Holdings Ltd. and KSH Holdings Ltd. made their firstforay in the Japanese property market with an acquisitionof a property in Sapporo, Hokkaido, for an undisclosed amount. The assetconsists of a 15-story hotel building and a 14-story building with residentialand retail units.

*Chow Tai Fook Jewellery Enterprises, the unlisted arm of tycoon Cheng Yu-tungwho controls New WorldDevelopment Co. Ltd., brokeground on a US$4 billion resort development in Quang Nam, Vietnam.The development will include a golf course, hotels and a shopping mall. Theproject is slated to open in early 2019, with full completion expected in 2035.

Taking control

*Evergrande Real Estate Group Ltd.plans to acquire a52.78% stake in Calxon Group Holdings Co. Ltd. for around 3.61 billion Chineseyuan. The mainland-listed and state-backed developer is mainly focused oncities in the Yangtze River Delta such as Shanghai, Hangzhou and Suzhou. Oncethe acquisition is finalized, Evergrande will have a listed domestic propertyplatform, which could be used as a shell for Evergrande's re-listing in China.

*Australian retirement group AveoGroup Ltd. is believed to be seeking full ownership of unlistedRetirement Villages Group, or RVG, as the former is understood to be innegotiations for REST Industry Super's 27% stake in RVG, The Australian reported.Aveo, which also manages RVG, already doubled its stake in the company in asurprise move recently, lifting its holdings to 73%.

Regulatory watch

*With an aim to contain housing market risks, the China Banking RegulatoryCommission's Shanghai branch ordereda one-month suspension on business between commercial banks and six real estateagencies including the local arms of Beijing Homelink Real Estate BrokerageCo., Pacific Rehouse Co. and Shanghai Hanyu Property Brokerage Co. The bankingregulator will also suspend the personal mortgage business for two months ofseven local branches of banks including Industrial & Commercial Bank ofChina, Bank of China Ltd. and HSBC Holdings Plc for violations of lendingrules.

* InAustralia, the Victorian government proposed stricter development rules onhigh-rise towers in Melbourne, including a smaller plot ratio for properties, The Australian Financial Review reported.The amended policy is believed to be an effort todiscourage the influx of large and "poorly designed" buildings in thecity.

Eye on earnings

*China Vanke Co. Ltd.'sfirst-quarter profit attributable to equity shareholders 28.14% year over year to 833.2million yuan, while revenue surged 63.08% to 13.71 billion yuan.

*Mapletree Greater ChinaCommercial Trust reported distributable income of around S$199.9million for the period from April 1, 2015, to March 31.

The money ball

*China Resources Land Ltd.entered into an 800million yuan term loan facility with an unnamed bank. The loan will maturethree years from the first advance date.

*Fantasia Holdings Group Co. Ltd.and certain of its subsidiaries entered into a purchase agreement with GuotaiJunan International and BofA Merrill Lynch pertaining to the issue of 600.0million yuan 9.5% senior notes due 2019. The estimated net proceeds of thenotes issue will total about 586.2 million yuan.

*KWG Property Holding Ltd.said its subsidiary's plan to issuenonpublic domestic corporate bonds worth not more than 6.50 billion yuan.

Now featured

: Betting on ever-increasing touristarrivals to Japan, Bain Capital-owned Ooedo Onsen Holdings is advancing a planto list as a REIT on a domestic exchange.

: With Hong Kong-listed Dalian Wanda Commercial Propertiespushing plans to decamp to a mainland exchange, industry observers arespeculating that Evergrande Real Estate Group could follow suit.

: The April 29 edition of theAsia-Pacific property news recap also features Wheelock & Co. receivinginterest from at least five mainland Chinese and offshore financialinstitutions to acquire its unfinished building in Hung Hom, Hong Kong, withthe offers reaching around HK$5 billion.

: 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.

:Manulife Financial revives its plans to list a REIT in Singapore while newsemerged of a new Spanish REIT in the works.