At the top of the news, Wanda’s partner in Chicago says the 98-storey Vista Tower is progressing as planned, notwithstanding the mainland group’s proposed reshuffling of overseas assets. In other headlines, shared office giant WeWork is suing its similarly-named Chinese competitor for alleged trademark infringement, and People’s Daily is bashing Wanda and LeEco for their spendthrift ways. Also, China’s home sales grew at the slowest rate since March 2015 last month, and Hong Kong apartments are going micro as prices soar. Read on for all these stories and more.
Progress of Chicago’s Vista Tower Said Unaffected by Wanda Troubles
A Chicago developer said construction of the 98-story Vista Tower, which will be the third-tallest building in the city once completed, is unaffected despite major changes to the Chinese company that is backing the condominium and hotel project.
Magellan Development Group’s $1 billion East Wacker Drive skyscraper is one of several commercial real estate properties caught up in a Chinese government crackdown on high-leverage investments overseas. Read more>>
WeWork Files Trademark Claim Against Rival UrWork
WeWork Cos. has started legal action against shared-office landlord UrWork in London, accusing its fast-growing Chinese rival of infringing on its trademarks.
The world’s fifth-largest startup filed a claim with the U.K.’s High Court of Justice’s Chancery Division using London-based law firm Mishcon de Reya LLP on July 26. The New York-based office sharing company said its rival was “passing off”, which can take place when one business misrepresents their services as being the product of another. Read more>>
Party’s Over for Debt-Addled Conglomerates, People’s Daily Says
Chinese firms will face further pressure to deleverage, which has become the “new normal”, and conglomerates LeEco and Dalian Wanda Group were now bearing the consequences of their high borrowings, the People’s Daily newspaper said on Monday.
The mouthpiece of the ruling Communist Party said that recent leadership changes at LeEco and deals to sell Wanda’s hotels and tourism businesses showed that the era of relying on high debt to spur growth was over. Read more>>
30% of HK Apartments Being Built Are Mini-Flats
Three out of 10 units under construction right now in Hong Kong are micro-flats, sized less than 200 square feet, as prices for anything much larger soar beyond the reach of the average buyer.
More than 10,470 units in 26 private residential projects were approved by the Buildings Department to begin work in the first five months of the year, according to a survey by South China Morning Post. Read more>>
China Home Sales Grow at 4.3% in July, Slowest in Over 2 Years
China’s home sales grew last month at the slowest pace in more than two years amid regulators’ moves to rein in soaring prices.
The value of new homes sold rose 4.3 percent to 779 billion yuan ($117 billion) in July from a year earlier, according to Bloomberg calculations based on data released Monday by the National Bureau of Statistics. The increase is the smallest since March 2015, when the home market started to take off on policies to encourage demand from buyers. Read more>>
China Property Management Market To Reach $180B in 5 Years
China’s developers, facing the government’s heightened clampdown on the real estate sector, are increasingly focusing on long-term bets like property management even though these investments may take years to bear fruits.
Dozens of developers have spun off their property management businesses, while seeking to strengthen their financial muscles to compete in a fast-growing market that is expected to hit RMB 1.2 trillion (US$180 billion) in five years, according to research organisation, China Index Academy. Read more>>
Yucai Pays $19.5M for 909-House Melbourne Site
A Melbourne company backed by Chinese capital has paid A$25 million for a farm capable of being turned into 909 house blocks to Lara’s west. Soaraway Development, which is a local division of China’s Yucai Group, purchased the 79.59ha property at 285 Patullos Rd, Lara, recently.
The key to the property’s prospects was that Geelong’s council had completed its structure planning for the 389ha Lara West growth area that will eventually house 11,600 residents. The expressions of interest campaign attracted more than 100 bids from local, national and offshore buyers. Read more>>
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