World Union Real Estate Consultancy, a Shenzhen-based real estate consultancy and brokerage service provider, is about to make a ground-breaking IPO.

The China Securities Regulatory Commission has approved World Union’s IPO application, allowing the company to list shares on the Shenzhen Stock Exchange.

Wang Jia, an Industrial Securities analyst said, ‘It is probably the country’s first property consultancy and brokerage firm to float A shares on a domestic bourse.’

Proceeds from the sale will be used to extend the company’s network, establish an integrated service management platform, train staff and increase its national brand awareness, an effort expected to cost RMB319 million ($46.5 million).

Established in 1992, World Union runs 23 branches across the country, expanding its operation primarily by forming strategic alliances with large real estate developers such as Vanke and Gemdale.
Source: Shanghai Daily

Glorious Property Holdings, a real estate developer in nine Chinese cities, may raise as much as $1.1 billion in a Hong Kong initial public offering, according to an e-mail sent to fund managers. But note that property IPOs are being canceled left, right and center so do not bet money on it going ahead.

The builder of apartments, townhouses, retail properties, offices and hotels is looking for sale of 2.25 billion shares, or a 30% stake. About 77% of that will be new shares sold by the company.

If successful, the sale could be the largest Hong Kong property IPO since the $1.9 billion offering by Soho China in September 2007, according to data compiled by Bloomberg.

At least three (my counting is five) property companies have delayed or canceled Hong Kong IPOs this year as stock markets slumped and on concern China’s government may curb the real estate industry so it happens when it happens.

Glorious Property has projects in Shanghai, Tianjin, Beijing, Wuxi, Suzhou, Nantong, Hefei, Shenyang and Harbin (seen in our illustration looking quite amazing during the annual ice festival) in eastern China. It has 15.9 million square meters (171 million square feet) of yet to be developed land in the country.

The company may begin taking orders from fund managers for the IPO in the next day or so. Stock trading is scheduled to start July 15. Deutsche Bank AG and JPMorgan Chase & Co. are managing the sale.

As an informed guess the writer believes that Glorious cannot, perhaps, get quite as much money as it wants/needs. So it will, possibly, settle for less.
Source: Bloomberg

First the news was property developer Longfor Properties would probably start a management roadshow in July to market a $1 billion initial public offering in Hong Kong. This despite market weakness and delayed IPOs on the same market.

Citi and Morgan Stanley were listed as the joint global coordinators of the offering and the Chongqing-based developer had also appointed Merrill Lynch and UBS to help market and distribute the issue.

Longfor, a high-end residential and commercial property developer, operates in Beijing, Shanghai and Xian, with revenue reaching RMB10 billion ($1.45 billion) last year.

Almost immediately that news item was published there was a follow-up which suggested that Longfor Properties and Fineland Group, two mainland-based property developers, were considering delaying their Hong Kong initial public offerings (IPOs) following the recent weak debut of Central China Real Estate.

Longfor had planned to raise a billion while Guangzhou-based Fineland Group planned to raise up to $200 million. Now it looks as if both are to be delayed.

The reason is the state of the market where Central China Real Estate ended nearly 3% below its IPO price on its trading debut.

For the property market this does not augur well. It suggests that IPOs would best wait for a strong market upturn.

The illustration comes from the Corporate Council Members of the Guangdong Human Resource Management Association of which Fineland is a member. Finding a precise and apposite image is dashed difficult.
Sources: Reuters and Interactive Investor

Central China Real Estate, the developer based in Zhenghou in Henan Province (shown in our illustration), may raise as much as $244 million through an initial public offering in Hong Kong.

The company plans to sell 500 million shares — about a 25% stake — at US$0.35-0.49 a share.

Singapore’s CapitaLand, the largest property developer in Southeast Asia, has a 36% stake in Central China. If the listing goes through, it will be the first share sale in Hong Kong by a Chinese real estate developer since Zhang An Real Estate’s US$461.55 million IPO in November.

The sale will test investor demand for Chinese property stocks after two developers shelved Hong Kong IPOs this year as shares slumped and the government sought to damp real estate investments and prices.

The price range values Central China at as much as $975 million, 40 percent less than its estimated net asset value this year, based on a May 10 report by BOC International which is helping manage the sale. At the end of March, Central China had land reserves of 4.8 million square meters with land use rights certificates, expected to be sufficient to cover its development needs for the next three to four years.
Source: Bloomberg

According to China Securities Journal Hangzhou Binjiang Real Estate , the real estate developer, is about to go for an IPO plan with the aim to raise as much as RMB 1.5 billion.

This will involve something like 60 million shares, which is 11.54% of its total capital stock.

The company develops luxury apartments as well as commercial properties.

The illustration is of part of the Golden Coast project in Hangzhou which was designed by Peddle Thorp Architects.

The company also owns the Friendship Hotel Hangzhou which is a 4 star-rated hotel newly renovated in 2006. It is also working with Greentown China Holdings to develop real estate on the Hangzhou Hushu project.

At the same time Accor has signed an agreement with Hangzhou Binjiang Real Estate to launch a 5-star Sofitel hotel in Zhejiang Province’s Qiaodaohu Lake Scenic Spot.

Since 1982, when it was first recognized as a scenic spot, Qiandaohu Lake has received about 11 million visitors a year, of which 600,000 are foreign tourists. During this past May Day Holiday, the scenic spot received 724,000 tourists, an increase of 26.57% over the same period of last year.

After the expressway between Hangzhou and Qiaodaohu Lake is opened at the end of this year, it will only take ninety minutes to get to Qiandaohu from Hangzhou.
Source: Research Oracle and research.