Tag Archives: ORL

Cash Balance of EVERGRANDE GROUP Reaches 64.03 Billion Yuan, Ranks No.1 in China; HuiKa Yan Announces Multiple Business Strategies

BEIJING, Aug. 26, 2014 /PRNewswire/ — On August 26th, The 2014 Midyear Achievement Announcement of EVERGRANDE GROUP was held at the Shangri La Hotel on Hong Kong Island, Hong Kong. The Group Chairman HuiKa Yan made a public announcement to the world: the EVERGRANDE GROUP will stand firmly to implement its multiple businesses strategies. An original report by Sina Leju follows:

He said that EVERGRANDE GROUP will stand firm to implement its multiple business strategies, which are announced to the public for the first time after long term and prudent investigation and survey. “After special research, we found that most of the World Top 500 Giant Enterprises would select multiple businesses strategies after they have developed to a certain size. As far as the size, team and brand of the Group are concerned, we will lose lots of development opportunities if we fail to implement multiple business strategies. Now, the Group has formally entered the strategic stage of “Multi + Size + Brand.”

What are the new industries which the Group will enter? When will the Group enter these industries? HuiKa Yan said that that depends on market potentials. They may be modern agriculture, dairy industry and stockbreeding, or maybe new products like EVERGRANDE grain and oil product, and EVERGRANDE baby milk powder will appear soon. For the first time, He revealed to the public, “the Group will take a seat in the World Top 500 Giant Enterprises next year. In terms of the main indexes such as sales amount (which are essential for appraisal of the World Top 500 Giant Enterprises), we are confident to reach that.”

Behind the new strategies, the achievement of multiple businesses had a big growth when compared with the same period of the last year, taking a lead in the industry. The mid-year data shows that, in the upper half of 2014, sales amount of the Group reached 69.32 billion yuan, a growth of 55.4 percent when compared with the same period of last year; with a net profit of 9.49 billion yuan, nearly double that of 4.81 billion yuan of WANKE Group; its total assets reached 421.65 billion yuan, a growth of 53.6 percent when compared with the same period of last year; as of June 30, the cash balance reached 64.03 billion yuan, a growth of 52.6 percent when compared with the same period of last year.

In addition, the other core indexes of the Group also witnessed a big growth when compared with the same period of 2013. By the end of June, the Group has completed 110 billion yuan, i.e. 63 percent of the annual goal, ranking top among real estate enterprises in China. The industry generally predicted that the last half year will see a warmer market. The Group may become the first real estate enterprise which fulfills the annual goal.

The fair achievement of the Group is due a lot to its size. As of June 30, the Group has 303 large projects in 147 cities in China, boasting a giant taking a lead in the industry in China. With the rapid growth of city expansion in China, there are growing demands for houses, and the Group has strived to provide houses of high quality and moderate prices to meet such demands, thus winning a return of increasingly growing achievement.

In addition, the cash balance of the Group is more than 64 billion yuan; the accumulated paid-in land payment has reached 175.26 billion yuan, showing strong financial strength. Steady and prudent financial policies have laid a solid foundation for the Group’s further development in the real estate industry, and give guarantee for expanding its multiple strategies.

Investment Volume Reaches New High Post-DSD; Capital Values Resilient to Cooling Measures

HONG KONG, July 29, 2014 /PRNewswire/ — Cushman & Wakefield, the world’s largest privately owned real estate services firm, today released a mid-year update on the Hong Kong investment and residential sales markets and the outlook for the second half of 2014.

Investment activity stabilizing, evidence of investors’ renewed confidence; capital values increase slightly in 1H 2014

The investment market ended the first half of 2014 on a high note, whereas second quarter investment volume totaled HK$22.7 billion, an increase of 61% quarter-on-quarter. First half investment volume across the five major property sectors including hotels totaled HK$36.8 billion, up from HK$26.9 billion in 2H 2013 or an increase of 37%. The rebound in investment volume in the second quarter was driven by investment in office properties, where the sale of One Bay East – East Tower to Citi for a record breaking HK$5.43 billion was accompanied by another large en bloc sale in Wong Chuk Hang (Cheung Kong’s project at 41 Heung Yip Road in Aberdeen). Office investment was also highlighted by purchases by end-users and the return of more long-term investors making purchases in Kowloon East and other non-core locations.

Investors have grown accustomed to the cooling measures, leading to stable investment in retail properties. There is a growing focus on non-core properties and emerging areas where upside potential is greater, especially in the midst of slower retail sales growth and easing rents in prime locations. Retail investment in the first half of 2014 was highlighted by the Link Reit’s disposal of four small-scale shopping centers and also strata sales of 8 Russell Street in Causeway Bay, which received a positive response from investors due its prestigious location. Sales of prime street shops slowed as the quarter progressed due to low yields and still high prices. Industrial investment also showed greater stability in the first half of 2014. After dropping slightly in 1Q 2014, industrial investment picked up in the second quarter as some pent-up demand was released due to improved investor sentiment. More investors returned to the strata market, while the sector is also seeing more purchases by long-term investors, end-users and those aiming to refurbish or convert the property’s use. Capital values of non-residential properties were relatively stable in the first half of 2014, whereas values of office, industrial and retail properties increased by 1% to 2%. Capital value growth was slightly higher in 2Q 2014 as compared to the previous quarter, attributed to the rebound in investor sentiment which has led to firmer asking prices. 

Kent Fong, Executive Director, Investment — Hong Kong, said, “More investors and owner-occupiers have adapted to the cooling measures and are making purchases for the longer-term. Rents for most properties are stable and interest rates remain low, meanwhile supply of quality assets is limited. Capital values have been resilient to the cooling measures and recent momentum in the residential sector, not to mention some record-breaking purchases in Kowloon East, is boosting investors’ confidence.”  

Residential sector resilient to cooling measures as sales reach a new high post-DSD; prices are on the rise

As the first half of 2014 came to a close, residential sales reached nearly 6,000 units in June, the highest monthly total since the introduction of Double Stamp Duty (DSD). Sales showed a steady improvement since April and after slight relaxation of DSD in May. Activity increases remained focused on primary properties with developers seeing brisk sales and some launches oversubscribed as they continued to offer discounts, stamp duty rebates and prices close to those of nearby second-hand properties. More recently, improved market sentiment has penetrated the secondary market, whereas more prospective buyers, including first-time purchasers, are targeting mid-priced flats. As a result, secondary homes sales also climbed to its highest level post-DSD in June, having reached 4,585 units. Secondary homes sales increased by 14% in the first half of 2014 as compared to the second half of 2013.

Strong sales in recent months has brought record high prices in some districts, notably in the New Territories. A new house in Tsuen Wan West transacted at HK$55,889 per square foot, while a flat at Mayfair by the Sea in Tai Po sold for HK$36,132 per square foot. Luxury residential prices dropped by 2.9% in the first half of 2014, but their decline has softened in recent months on the back of more stable demand. Outweighed by a quiet market in the first half of the second quarter, luxury residential prices dropped by 0.5% in 2Q 2014. Existing owners are still facing little pressure to sizably reduce prices due to their low holding cost and also more limited supply.   

Vincent Cheung, National Director, Valuation & Advisory — Greater China, said, “Developers will continue to expedite new launches in the second half of this year as the look to cash in on strong buyer sentiment and close the year with strong sales performance. Recently, owners in the secondary market have been more aggressive on asking prices, but buyers’ response has been more conservative. Overall home prices have been on the rise in recent months, proving resilient to the government’s efforts to cool the market. Strong demand for mid-priced flats will support further price growth of such properties in the second half of this year. Moving up the ladder to those properties priced at HK$10 million and above, I expect prices to be more stable.”

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About Cushman & Wakefield

Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 250 offices in 60 countries and more than 16,000 employees.  It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $3.7 billion in assets under management.  A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In Greater China, Cushman & Wakefield maintains seven market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hong Kong and Taipei. More information is available at www.cushmanwakefield.com.

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