Capitalists and business to enter the real estate market

 

Downward real estate market is an objective fact , data released by the National Bureau of Statistics , as well as real estate markdowns cases , with some of the four-tier cities near collapse volume fell sharply illustrated this point .

 

Expectations down, does not mean that the real estate market will be coming to an end . From the perspective of real estate finance , market presents different strong eco expected downstream market value as long as there is the buyout fund arena.

 

According to Dealogic , so far this year, China’s real estate industry, the size of M & A activity reached $ 22.2 billion , a record high. A year earlier to $ 6.8 billion . ” Wall Street Journal ” reported that an investment company headquartered in Singapore APS Asset Management holdings Vanke shares doubled in recent weeks , but continue to hold the fifth largest in terms of sales China Poly Real Estate Company (Poly Real Estate Group Co. Ltd.) stock. The above two property stocks have rebounded more than the year ‘s low of 17% . This is based on the tightened after the Chinese real estate developers to raise the status of big expectations, more tightening market , the strength of the big developers, but is cheap Xihuo positive. And Fenghua Xing Yun , Haining Rucker real estate financing such high interest in deep mire of the company, the inevitable demise.

 

Some companies continue to be optimistic stimulating effect of urbanization in China on the property . Tony Hsu , portfolio manager at hedge fund Dalton Investments , said long-term trend of urbanization will continue to drive demand for high-priced Chinese mainland assets. This hedge fund holds a number of Hong Kong-listed property developer stocks, stock prices are higher than those of its net asset value per share of great discounts. Holdings in Hong Kong , mainland property stocks expected bad case of real estate , only proves that certain companies , certain assets have been returned to a reasonable price.

 

Wind information is data , real estate stocks price-earnings ratio reached a record 97.9 times in the third quarter of 2007 , then all the way down to the end of 2013 less than 12 times . Even Li Ka-shing and his son dumped goods are cheap , Richard ‘s PCPD to 928 million U.S. dollars ( about 5.75 billion yuan ) on disposal of Beijing Pacific Century , clearing the last major assets in the Mainland . Overseas buyers Gaw Capital private equity funds hit a record in the mainland’s largest single acquisition of the property .

 

Some people buy to sell on , indicating the market is also good, buyers and sellers are not stupid , each earned their deserved share of the profits . “21st Century Business Herald reported ,” said Gaw Capital raising equity has more than 3.8 billion U.S. dollars , the amount of assets managed of $ 8.5 billion , to invest in residential projects , retail centers, hotels and commercial real estate , LP has the world’s seven major sovereign wealth funds and endowment funds , pension funds and other institutional investors. October 2013 , Gaw Capital finished fourth only Chinese real estate to raise funds , raise share capital amounted to $ 1.025 billion . A month later invested $ 473.6 million ( HK $ 3.26 billion ) to Hutchison Whampoa and Cheung Kong Holdings acquired Liwan District of Guangzhou Metropolitan Plaza , about 29,000 yuan per square . The acquisition of Pacific Century same deal, only about 33,000 per square meter. Gaw Capital Managing Partner and China regional director Pengqing Bang said: ” 170,000 square meters of floor in the heart , priced at 33,000 ( RMB ) per square meter , in Beijing Third Ring Road is a reasonable price and , after leaving the Pacific Department Store , Pacific Century . central Business District section is empty. according to Gaw Capital style, we do enter the rectification, the potential for it to re- excavated so we acquired at reasonable prices . ”

 

This is the capitalists play, Lee earned a real estate spreads to first-tier cities in the heart of the commercial property to obtain a premium , while Wu Gaw Capital is led by fund acquisitions , upgrades, in order to understand the local market re- investment let PCG center rejuvenated . This is the usual means of mergers and acquisitions before the international financial crisis, the real estate market , the fund acquired valuable real estate , renovation tenements product phase or refresh formats, enhance performance , to make money by selling or later , or by the operator to make money.

 

In the country ‘s overall M & A market , real estate acquisition and how ? Is still a hot.

 

According to the data and Qing dynasties , the Chinese M & A market in the first quarter of this year, from the industry distribution, the completion of the distribution of 359 M & A transactions in real estate , energy and minerals , biotechnology / healthcare , machinery manufacturing, clean technology and other sectors 22 level . From the number of merger cases , real estate transactions in 52 cases , accounting for 14.5% of the score once again won the first prize ; followed last year has been the best-performing energy and mineral industries in the quarter from 35 cases were completed , accounting for 9.7 total transactions %. From the point of view the amount of mergers and acquisitions , real estate is still far ahead of other industries, to $ 5.549 billion turnover score ranked first , accounting for 23.9% ; followed by the financial sector, the quarter produced a total transaction amount of $ 3.591 billion , accounting for about 15.5%.

 

Market has its own direction of development, adhere to the mortgage if the central bank tightening , then the stream of private capital into the market to digest a secondary market , which is precipitated on the real estate market , but also the differentiation of the real estate market , no strength to develop some radical Manufacturers are forced to sell assets sadly out , the loss of some three or four lines of the population is too large bubble collapse city will experience pain , and some institutions have strength, with operating capacity will stand out.

 

To get rid of a regulation of the real estate market cycle of two to three years , or to relax the restriction , speaking from the market and interest rates of tax ; Or let financial regulation , let the market jungle , benign growth , without which no other way