China Property Market

[Boon]

Li Ka-shing Sells 2 Shanghai Buildings for $493 Million
Asia’s richest man continued to sell off his China real estate holdings last week when a property company controlled by Hong Kong billionaire Li Ka-shing was acquired by China’s Oceanwide Holdings.

According to a statement to the Shenzhen stock exchange dated November 7th, China Oceanwide, a listed real estate investment firm belonging to Chinese billionaire Lu Zhiqiang, agreed to buy Hutchison Whampoa’s 71.36 percent stake in Hutchison Harbour Ring Ltd for HK$3.8 billion ($621 million).

Hutchison Whampoa is one of Li Ka-shing’s primary holding companies, and Hutchison Harbour Ring Ltd owns two commercial buildings in Shanghai, Harbour Ring Huangpu Centre and Harbour Ring Plaza.

Following the transaction Hutchison Whampoa will have completely divested itself of its shares in Hutchison Harbour Ring Ltd, and Li Ka-shing will have sold off his fifth set of China real estate assets in the last fourteen months.

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Superman continues to cash out... Another vote of confidence for China property.

Ha-ha !

When ARA sells China assets, it is being reported as “LKS is exiting or selling down China assets”.

ADF-I of ARA has been in divestment phases since 2012 - all China assets divested by it had been reported as "LKS selling down China assets."

LKS owns about 53% of CKH (Cheung Kong Holdings)
CKH owns 7.84% of ARA
ARA has about 10% of equity stakes in most private funds it manages, including ADF-I
For every $1,000 million worth of China assets divested by ARA’s private fund, LKS stake = 0.53 x 0.0784 x 0.10 x 1,000 = $ 4.2 million (assuming no gearing – conservative)

So, it is true that whenever ARA sells, LKS sells.
Whenever ARA sold X million worth of China assets, LKS stake in it is less than 0.5%. Often, it is reported as LKS sold X million worth of assets.

Similarly, when ARA buys, LKS buys.

Indeed, CIP, another China specific private fund managed by ARA is in acquisition phase – has bought Ocean Tower in Shanghai and Dalian Tianxing Roosevelt Center in Dalian..

The truth is when ARA bought - it has not been reported as “LKS is buying China assets” – what a joke !


http://www.mingtiandi.com/real-estate/cr...7-billion/

http://www.thestandard.com.hk/news_detai...con_type=1