Source: Securities Times.
On the evening of June 5th, Vanke released an announcement.
On March 7, 2019, Vanke's wholly-owned subsidiary, Vanke Real Estate (Hong Kong) Co., Ltd. disclosed an announcement about the issuance of $600 million 4.20% medium-term notes due in 2024 on the Hong Kong Stock Exchange. The notes will mature on June 7, 2024. As of June 5, 2024, the principal amount of the notes outstanding, together with accumulated interest up to the maturity date, totaling approximately USD 613 million, has been fully remitted to Vanke Real Estate (Hong Kong) Co., Ltd.'s overseas bank account. The company will deposit the relevant amount into the designated bank account of the agent bank on June 6, 2024, to fully repay the principal and interest of the maturing notes.
According to analysts, leading real estate developers are liquidizing funds through project sales and asset disposals, while gradually improving their liquidity through policy loans and bailout funds.
Recently, Vanke's sales brief report for May 2024 indicated that Vanke achieved a contracted sales area of 1.871 million square meters and contracted sales amount of RMB 23.33 billion. From January to May 2024, Vanke's cumulative contracted sales area reached 7.425 million square meters, with a cumulative contracted sales amount of RMB 102.21 billion. At the same time, Vanke is also promoting the activation and trade of bulk assets such as self-owned commercial business properties.
Recently, according to the announcement of the Shenzhen Public Resources Trading Center, Shenzhen Metro Group and Shenzhen Baishuo Yinghai Co., Ltd. jointly won the land use right of T208-0053, a super headquarter base of Vanke in the Shenzhen Bay area, at the listed price of RMB 2.235 billion. Vanke stated that this transaction is one of the measures to implement the company's package plan of streamlining and strengthening. Completion of the transaction will help reduce the impact of non-core assets on funds and focus on doing the three main businesses better and stronger. Shenzhen Metro Group's participation in the bid for the project's land use rights reflects the strong support of major shareholders for Vanke in a market-oriented and rule-of-law manner.
Yan Yuejin, director of the E-House Research Institute, said that there are both a peak debt period and a sales downturn period in the current real estate industry, which objectively puts some pressure on repaying debts. However, the current low threshold, low house prices, low down payment, and low interest rates have, to a large extent, attracted home buyers and boosted confidence in the real estate market, which plays a positive role in destocking for real estate companies and increasing cash flow.
Foreign capital is also constantly looking at A-share real estate sector. Recently, Griffin Chan, a Citigroup real estate analyst, pointed out in a report released this week that the A-share real estate sector is stabilizing, with the industry's health improving and new land supply decreasing due to accelerated policies. Credit support and continued destocking are also optimizing the supply-demand structure. It is expected that house prices will stabilize in 6-9 months.
Editor/ruby