China is famous for its paperwork, but many Mingtiandi readers may not yet know about the three different purchase contracts often being used to buy housing in the country’s heavily regulated markets. Also in the news today, Starbucks goes super-venti for its latest Shanghai location, and Beijing will soon have much more housing – unless you’re a migrant. Read on for all these stories and more.
Mortgage Scams Add Fresh Excitement to China Credit Mix
When Zhu Chenxia bought a flat early last year from Lei Yarong in the up-market Nanshan district of China’s southern metropolis of Shenzhen, the two women drew up three purchase agreements to cover the deal. Only one was genuine.
In the legitimate contract, Zhu agreed to pay Lei 6.49 million yuan (about $980,000) for the 96-square-meter apartment near the city’s border with Hong Kong, according to records filed in a Shenzhen court. Read more>>
Starbucks Opens 2,800 SQM Roastery Store in Shanghai
Starbucks is making a big impression in Shanghai: a 30,000-square-foot impression. Opening Tuesday in the Chinese city is Starbucks’ second Reserve Roastery, a “megastore” that is more of a mecca for coffee lovers than a traditional cafe.
The locations, which feature small-batch roastings of rare and exotic coffees, are under the careful watch of former Starbucks CEO Howard Schultz. Schultz stepped down from his post in April to focus on those coffee bars and remained on as the company’s executive chairman. Read more>>
Beijing Nearly Quadrupled Land Supply in 2017
Potential homebuyers who missed out on the real estate boom in Beijing may get a second chance to get on the property ladder, as an aggressive government land sales programme over the past 12 months has fed the supply pipeline of new homes in the nation’s capital.
Recent data shows that Beijing’s residential land supply is on course to hit a four-year high in 2017, or nearly quadruple last year’s level. Read more>>
HNA Sells Bonds at 8.2% Yield in Tough Credit Market
Units of HNA Group Co. are stepping up fundraising in the local bond market even as borrowing costs soar, adding to concerns about the Chinese conglomerate’s debt burden.
Yunnan Lucky Air Co., a unit of Hainan Airlines Holding Co — HNA’s flag carrier — sold a 270-day yuan bond to yield 8.2 percent last week, the highest coupon rate ever for the Yunnan airline. Tianjin Airlines Co., another subsidiary of Hainan Airlines, issued similar-maturity notes at the highest coupon rate in five years in November. Read more>>
Shanghai’s Shimao to Issue $400M in New Notes
Chinese developer Shimao Property Holdings said it will issue an additional $400 million in senior notes with a fixed coupon of 4.75%.
The new notes, due to mature on July 3, 2022, are part of the same series under which the company issued a total of $600 million in senior notes in July, Shimao said in a filing to Hong Kong stock exchange on Tuesday. The Hong Kong-headquartered company will use net proceeds of $402 million to refinance debt and meet other business development and corporate purposes. Read more>>
Mori Goes Upscale with Latest Tokyo Condo Project
Mori Building Co. has started work on a luxury residential development in Tokyo that will include units priced from 1 billion yen ($9 million), betting there is untapped demand for the most upscale apartments in the city.
Japan’s biggest privately owned developer is constructing three buildings at a cost of about 400 billion yen in the central district of Toranomon, home to many of the capital’s office towers and embassies, Executive Managing Officer Hideto Oba said in an interview. The development, which includes a 54-level structure, is scheduled for completion in about 2020, he said. Read more>>
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