GIC and Yanlord form investment JV
GIC Real Estate, a unit of the Government of Singapore Investment Corp, has agreed to form a JV with Yanlord Land Group Ltd in China. Yanlord will own 60% of the JV while GIC will own 40%. It will invest in residential and commercial development projects in Chinese cities. GIC Real Estate’s president, Seek Ngee Huat, said: “We are confident of China’s long-term growth potential and will work with like-minded partners, such as Yanlord, to seek out investments which deliver strong results.”
Mandatory e-records for second-hand buyers
Shanghai’s housing administrator will require online records for all second-hand property transactions from January 2007. A new regulation issued by the Shanghai Municipal Housing, Land and Resource Administration Bureau states that online records will be obligatory for any second-hand property so that sale or rent contracts can be recorded in the official database. Properties with more than one agent will only get one online record in order to avoid repeat sales. An official with the bureau said the rule will offer further protection to house buyers as houses with false information will not be in the official database.”
Henderson invests in housing project
Henderson Land Development plans to invest US$386 million to develop a housing project in Changsha city, Hunan province. The project’s first phase will offer more than 120,000 square meters, while the completed project will have a gross floor area of nearly 1 million square meters. Prevailing price s for Changsha apartments range from US$384-447 per square meter, according to a Henderson official.
Portman Holdings sets up JV in Shanghai
Atlanta-based Portman Holdings has created a JV in China to develop Jian Ye Li – a 139,598 square meter luxury mixed-use project with high-end residential, serviced apartments and retail space in Shanghai’s Xuhui district. The US$105 million project is slated to open in the first quarter of 2009. “There are tremendous opportunities in development in the Far East due to the phenomenal economic growth taking place,” said Thomas Arasi, president of Portman Holdings. “With these additional boots on the ground, Portman is well positioned to source a pipeline of attractive, large-scale deals and deploy the expertise to capitalize on opportunities.”
CapitaLand acquires second Foshan site
CapitaLand Ltd has secured a residential site in Foshan City, Guangdong Province, for US$72 million in a government land tender. The site comprises two land parcels with a total land area of 164,124 square meters. “We will build an elegant residential project with an estimated 1,000 units, comprising low-rise apartments, townhouses and semi-detached homes,” said Lim Ming Yan, CEO of CapitaLand China. The first phase of apartments is expected to launch by the first quarter of 2008, with the entire development expected to be completed by 2010. This is CapitaLand’s second residential site in Foshan Municipality. It already has a 40,142 square meter mixed-use site, where it will build 470 apartments and 7,000 square meters of retail space.
Ascott to expand its China operations
The Ascott Group, the serviced residence unit of property developer CapitaLand Ltd, said it intends to expand into selected secondary Chinese cities, with regional hubs in Beijing, Shanghai, Guangzhou and Chengdu. Properties with a minimum 8% yield are being targeted for acquisition and eventual transfer to the group’s pan-Asian real estate investment trust (REIT) unit, Ascott Residency Trust (ART). Ascott International managing director for China, Lucas Loh, said “growing foreign direct investment flows, rising tide of business travel and a shift in preference of business executives for home-style accommodations in the mainland all bode well for the serviced residence sector.” Ascott currently has 3,480 serviced residence units in eight Chinese cities and plans to expand to 25,000 units by 2010.
Frasers wins management contract
Frasers Hospitality, the serviced residence management arm of Singapore-listed F&N, has agreed to manage Fraser Suites Top Glory in Shanghai. The deal marks the company’s first steps into one of China’s most influential financial and commercial markets. Fraser Suites Top Glory will open in 2007 and sits on a prime location along the Huangpu River in the city’s Pudong district. “Drawing strength from its strategic economic position within China, Shanghai is singled out by numerous MNCs as a vital location for regional head offices,” said Choe Peng Sum, Frasers’ chief operating officer. “[It] is therefore, a crucial network link for Frasers in extending our global footprints.”