Lack of money? The Li Ka Shing familys sale of Chengdu project is expected to benefit HK $3.8 billion

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 Lack of money? The Li Ka Shing familys sale of Chengdu project is expected to benefit HK $3.8 billion


It is worth noting that in this transaction between Changshi group and Yuzhou group, both parties provided loans to each other.

The interest rate of US dollar loan provided by Changshi to Yuzhou is 5.5% per year.

Hutchison Whampoa real estate (Chengdu) Co., Ltd. is mainly engaged in property development and holds investment in development projects. Prior to the completion of the transaction, the company was an indirect wholly-owned subsidiary of the company. Upon completion of the transaction, the company is no longer a subsidiary of the company and the company no longer holds any of its shares or equity interests.

The project for sale is the commercial and residential project of Chengdu Nancheng Duhui, including residential, commercial projects and parking lots from phase 1 to phase 8. There are 23253 households (including residential buildings and shops) in Chengdu Nancheng Duhui project. 16503 households have been sold in the previous sales activities, and the latest part involves the remaining 6750 households and some parking spaces.

As at 30 June, the net asset value of the company holding the project was HK $2495 million.

Changshi group will retain a director in the project company, who will assist in the operation of the project, and the residential project will be launched after the fine decoration and upgrading.

For example, in October 2019, Changshi group sold Dalian (real estate) Xigang project to rongchuang China with a total transaction price of more than 4 billion yuan; in October 2016, Changjiang industrial real estate Co., Ltd. announced that it sold Shanghai Lujiazui shijihui complex for 20 billion yuan, which is also the largest property sold by Li Ka Shing in the mainland; in November 2014, Li Jiacheng sold it for 3.91 billion yuan Chongqing metropolis.

On the one hand, he frequently sold domestic projects; on the other hand, Li Ka Shing invested heavily in the UK.

Recently, the construction of convoys Wharf in East London, a large property project invested by Li Ka Shing for 1 billion pounds a decade ago, has finally been approved by the British government.

In August 2019, Li Ka Shing paid 4.6 billion pounds (about 39.3 billion yuan) to buy greenking, the largest bar operator in the UK.

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Profit of HK $3.8 billion from the sale of Chengdu Project

Since 2013, Changhe Department has continued to shrink the front in the mainland property market. For example, in 2013, it sold Guangzhou Xicheng Dushui Plaza and Shanghai Dongfang Huijin center; in 2014, it successively transferred Nanjing International Financial Center building, Changyuan group equity, Beijing Yingke center, Chongqing metropolitan and Shanghai Shengbang international building; in 2016, it sold 50% equity of Lujiazui Century Plaza; in October last year, Changshi group transferred Dalian Xigang project to rongchuang, with a total transaction price of more than 100% Over 4 billion yuan. According to incomplete statistics from the financial press, since 2013, the Li Ka Shing family has sold properties in the mainland and Hong Kong, China for several times, with a cash out amount of more than HK $115 billion.

Part of the projects transferred by Changhe department have been developed for a long time and reached its investment expectation. Therefore, the reason why it is expected that the property market will continue to grow conservatively is related to the fact that some projects in the mainland will continue to grow in a conservative manner. Although it has sold some projects, it still has a lot of assets in the mainland. Lu Wenxi said in an interview with reporters.

According to the investment manager of a foreign-funded real estate agency in Shanghai, Li Jiachengs family often considers giving priority to the disposal of assets that are not easy to realize, such as commercial projects.

Due to the large amount of commercial assets involved, there are few buyers who can take over in the market, so they often choose to sell them when the market is still in the rising period. The other is the commercial and residential retail projects which are in the end of development and need to invest a certain amount of funds in the follow-up. A lot of funds have been recovered in the early stage of these projects, and a certain amount of energy and financial resources should be invested in the closing stage. If the projects are not located in the core location of the first and second tier cities, they may choose to transfer the equity of the projects for cash out. Said the real estate investment manager.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Source of this article: surging news editor: Dai Lili_ NN4994