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Capitaland and related entities take control of 22 retail malls in China

Posted on 29 Sep 2009 | Comments Off

CapitaLand said on Tuesday that its related entities have embarked on an asset swap arrangement to take full ownership of 22 retail malls in China.

The firm said its sponsored funds, CapitaRetail China Development Funds, agreed to an asset swap arrangement with SZITIC Commercial Property (SCP).

Under the deal, the development funds will swap their 65 per cent equity stakes in 4 projects and 50 per cent interest in Shenzhen’s Xiangmihu Mall.

In return, they will get SCP’s 35 per cent equity stake in 16 retail projects and SCP’s 49 per cent stake in 6 projects.

No additional investment outlay is required for the transactions.

Following the asset swap, CapitaLand, together with its development funds and CapitaRetail China Trust, will have full ownership interest of the 22 malls.

The malls are anchored by US bigwig, Wal-Mart.

CapitaLand said the deal will ensure a better integration of its retail operations and investments in China.

With the move, CapitaLand’s retail portfolio in China will comprise 46 malls across 32 cities worth a total asset value of S$6.2 billion.

Source : Channel NewsAsia – 29 Sep 2009

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Posted in Developers, Overseas Property

Tagged Capitaland, China Property, Developers, SZITIC Commercial Property

Landlord ‘king’ sells before rate rise ‘slaughter’

Posted on 29 Sep 2009 | Comments Off

Fergus Wilson, the ex-mathematics teacher dubbed Britain’s buy-to-let ‘king’, says he is selling 700 rental properties before interest rate rises bring ‘slaughter’ to landlords in the UK housing market.

Mr Wilson, who together with his wife Judith rank among the 1,000 wealthiest Britons according to this year’s Sunday Times Rich List, said it was inevitable that interest rates would rise from a historic low, pummelling rental landlords.

‘You’ve got a lot of people who have taken out a mortgage and are right up to their throats’ in debt, said Mr Wilson as he settled into a black armchair at a hotel in Maidstone, south-eastern England. ‘As soon as rates go up, they’re going to be slaughtered.’

Rates are forecast to rise, hurting buy-to-let landlords in particular because they pay more than other mortgage borrowers. The Bank of England base rate, a benchmark for British mortgages, will reach 1.25 per cent by the end of next year from its current 0.5 per cent, according to economist estimates compiled by Bloomberg. Most landlord loans are already much more costly, at 4 per cent or higher, according to personal finance website Money facts.co.uk. The UK has about 1.2 million buy-to-let loans, 11 per cent of the total. Continue reading →