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China’s richest man Wang Jianlin commits $1.7 billion to Australian real estate; China's appetite for overseas property is insatiable
Topic Started: 13 Aug 2014, 10:52 AM (3,317 Views)
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China’s richest man Wang Jianlin commits $1.7b to Australian real estate

Matthew Cranston

China’s richest man, Wang Jianlin, has committed $HK12.5 billion ($1.7 billion) to invest in Australian real estate including the construction of a $900 million beachfront resort on the Gold Coast.

Property experts say the deal could herald a new dawn of Chinese property investment in Australia.

Mr Wang, the chairman of the Hong Kong-listed Wanda Group, took over the top spot on the Forbes China Rich List for the first time last year after a rebound in property prices.

In a statement to the Hong Kong Stock Exchange Wanda Group said it would pay for the new resort, known as The Jewel, through internal resources and a mixture of debt and equity.

Mr Wang’s Wanda has already been on a global buying spree picking up London high rises as well as US movie chain AMC Entertainment and ­Sunseeker yachts.

The Jewel has state approval for up to three high-rise buildings containing a resort hotel, apartments, office and recording studio, restaurants and cafes. The site can accommodate a total building area of up to 147,000 square meters.

The decision by Wanda represents the financial power of the Chinese investors and their expectation of ­exponential growth in Chinese tourists over the next decade.

Tourism & Transport Forum chief executive Trent Zimmerman said the number of Chinese visitors to ­Queensland grew faster than the national average in 2013, rising by 16 per cent to more than 300,000.

“Importantly, spending by Chinese visitors to Queensland grew even faster, up about 28 per cent on the previous year,” he said.

“These are critical factors in the decisions we are seeing from ­Chinese investors.”

Read more: http://www.afr.com/p/special_reports/opportunityasia/china_richest_man_wang_jianlin_commits_WSirVvMD2twh22GDgkZVQP
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cokatoo56
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investing $1.7 billion in property in Gold Coast

.

I don't understand what is going on anymore :?:
Are they trying to export their ghost cities model to Australia ?
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Black Panther
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cokatoo56
13 Aug 2014, 11:03 AM

.

I don't understand what is going on anymore :?:
Are they trying to export their ghost cities model to Australia ?
Whats not to understand. Its the Transmutation.
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Jim
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Foreign money is the very definition of hot money and will be out the door before you can blink as soon as this turns. Its amazing how quickly history repeats itself and how quickly people forget, I distinctly recall back in the 80′s there was another Asian nation which had grown exponentially due to innovation and new production methods. It had abundant external reserves but there were concerns around the transparency and solvency of its banking system. It too spent much of its new found wealth on golf courses and resorts in Queensland right around the same time Australia was experiencing great commodity prices. Around the same time Australian banks had lent heavily to commercial property too and I’m sure we saw similar comments on how the market was sound and that the unbroken bliss would continue.

Then this Asian country ran its course. Its trade and manufacturing miracle wasn’t so great after all and had been propped up by collusion, inefficiency and fraud in its banking sector. Its currency fell sharply, its exports were impacted and many of its banks were insolvent and had to be bailed out and merged. Those savvy investors sold their Gold Coast golf resorts at firesale prices. Those Australian banks exposed to commercial property very nearly went bankrupt with Mr Packer stepping in to bail one out.

Sound familiar? China is Japan repeating itself all over again. And our country are the idiots thinking ‘this time is different’.
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Massive
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unless they change the design its not going to be so great for the neighbours.. all that faceted glass reflecting the queensland sun all about the place...

hard to get away building towers like this in a major urban center in china anymore due to all the compensation claims for sunlight pollution. Had 'mirror wars' that occured in beijing with property owners reflecting sun back on faceted glass towers with mirrors in the windows of their apartments.


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edit:no problem with this level of invesment into large scale projects though..
Edited by Massive, 14 Aug 2014, 02:11 PM.
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skamy
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Jim
14 Aug 2014, 12:11 PM
Foreign money is the very definition of hot money and will be out the door before you can blink as soon as this turns. Its amazing how quickly history repeats itself and how quickly people forget, I distinctly recall back in the 80′s there was another Asian nation which had grown exponentially due to innovation and new production methods. It had abundant external reserves but there were concerns around the transparency and solvency of its banking system. It too spent much of its new found wealth on golf courses and resorts in Queensland right around the same time Australia was experiencing great commodity prices. Around the same time Australian banks had lent heavily to commercial property too and I’m sure we saw similar comments on how the market was sound and that the unbroken bliss would continue.

Then this Asian country ran its course. Its trade and manufacturing miracle wasn’t so great after all and had been propped up by collusion, inefficiency and fraud in its banking sector. Its currency fell sharply, its exports were impacted and many of its banks were insolvent and had to be bailed out and merged. Those savvy investors sold their Gold Coast golf resorts at firesale prices. Those Australian banks exposed to commercial property very nearly went bankrupt with Mr Packer stepping in to bail one out.

Sound familiar? China is Japan repeating itself all over again. And our country are the idiots thinking ‘this time is different’.
Australia did vey well out of all that Japanese investment and it will do well out of Chinese investment in our tired and jaded tourism sector.

Australia is way behind the game in luxury tourism yet it has huge popularity as a destination. Millionaires in Asia are used to better hotels and resorts than we can provide at the moment. Wang Jianlin is not stupid to have confidence in the tourism potential of the Barrier Reef. Far from it with all the new wealth in Asia, and the recovery now well underway.
Massive
14 Aug 2014, 01:45 PM
unless they change the design its not going to be so great for the neighbours.. all that faceted glass reflecting the queensland sun all about the place...

hard to get away building towers like this in a major urban center in china anymore due to all the compensation claims for sunlight pollution. Had 'mirror wars' that occured in beijing with property owners reflecting sun back on faceted glass towers with mirrors in the windows of their apartments.


Posted Image


This design is awful though, this must push planning regs too much, it is ugly and out of scale. Hope the Gold Coast are not so desperate they accept that.
Edited by skamy, 14 Aug 2014, 02:14 PM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Mike
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Only the tip of the ice berg to what is going to happen in coming decades.

Do you really think one of the richest most under populated countries in the world just south of the most densely over populated regions in the world would last forever. Get used to it, Australia is part of Asia wether people like it or not. We all need to share this planet and it's resources one way or another, we'd do not live here in isolation from the rest of the world.
http://mike-globaleconomy.blogspot.com.au/
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newjez
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Massive
14 Aug 2014, 01:45 PM
unless they change the design its not going to be so great for the neighbours.. all that faceted glass reflecting the queensland sun all about the place...

hard to get away building towers like this in a major urban center in china anymore due to all the compensation claims for sunlight pollution. Had 'mirror wars' that occured in beijing with property owners reflecting sun back on faceted glass towers with mirrors in the windows of their apartments.


Posted Image

edit:no problem with this level of invesment into large scale projects though..
Didn't the shard cause fires?

Couldn't find that, but though this was funny
http://www.bbc.co.uk/news/uk-england-london-23930675
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Admin
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China's appetite for overseas property is insatiable

Peter Cai

When China’s richest man, Wang Jianlin, came to Australia for a whirlwind visit in June, he was feted by the most senior political figures in the country -- from Prime Minister Tony Abbott, to Trade Minister Andrew Robb and NSW Premier Mike Baird.

Just two months later, his property conglomerate Wanda, which is listed on the Hong Kong Stock Exchange, announced that it would invest $HK12.5 billion, or $A1.7 billion, in the Australian real estate sector, including building a $900 million tourist resort on the Gold Coast.

Wang, one of the most powerful property tycoons in China, is no stranger to mega overseas deals. He made his debut as a global player in 2012 when he snatched up AMC Theatre, the second largest cinema chain in the US for $2.6bn. It was the biggest US acquisition ever by a private Chinese company.

Over a short period of time, Wanda has committed to 80bn yuan, or $A14bn worth of overseas projects including a pledge to splurge between £2-3bn to rejuvenate British cities after his meeting with the British Prime Minister David Cameron.

Wanda’s aggressive offshore expansion is one example of Chinese property developers marching overseas. According to Caixin media, Chinese property developers invested in 35 major projects worth over $US37bn, or $A40bn, in the first half of 2014.

“Chinese outbound property investments beyond Asia really took off in 2009, and they reached a record $US9bn in 2013. We believe more Chinese developers will look overseas to support the needs of their clientele,” says Terence Tang, managing director of Capital Markets and Investment Services at Colliers International.

Chinese buyers’ insatiable appetite for overseas property is one of the major driving forces behind the aggressive investment strategy of major developers. Chinese real estate buyers have become a major force to be reckoned with at several major Western countries, such as the US, Canada and Australia.

In the US, cashed-up Chinese are the biggest buyers of high-end luxury real estate in New York and they have outspent their main competitor, the Russian oligarchs. China has replaced Canada as the leading foreign buyer of American properties. According to the National Association of Realtors, Chinese account for 24 per cent of total foreign buying activity, up from 19 per cent.

Australia is also another perennial favourite for Chinese investors. China replaced the US as the largest investor in Australian properties last year. Chinese interest is driving an apartment construction boom in major cities in Australia such as Sydney and Melbourne. Credit Suisse estimates that Chinese buyers are currently purchasing around 12 per cent of new houses in Australia.

Greenland is another major player in the rapid expansion of Chinese property developers abroad, including Australia. The company is building the largest residential tower in Australia at Sydney CBD. The company also announced the largest ever foreign project in Malaysia, which is estimated to be around 20bn yuan or $A3.5bn.

Another major force driving Chinese property developers to look abroad for opportunities is the downturn in the domestic market, which has been under pressure recently as the economy cools down, with home sales down 10.5 per cent in the first seven months of the calendar year. Many analysts describe the real estate sector as the largest risk for the country’s economy.

The chief executive of Vanke, the country’s largest developer, said the “golden age” for the industry was over. Many developers, and even second-tier ones, are looking abroad to increase their returns as well as diversify their risks from a slowing domestic market. According to an article posted on the Ministry of Commerce website, analysts estimate that some overseas projects could earn 100 per cent more than their projects in China.

Chinese property developers are driving a new wave of investment abroad, which has increased 230 times since 2008. This new wave will bring with it both opportunities and challenges for host countries like Australia. The new money will bring fresh opportunities for construction, tourism and other related industries.

But at the same time, there is already considerable community disquiet and opposition to further Chinese investment in the real estate sector -- and especially the new projects that are aimed at attracting Chinese buyers. These new projects may add to the tension in the community.

Read more: http://www.businessspectator.com.au/article/2014/8/14/property/chinas-appetite-overseas-property-insatiable
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Leodwald of Portsburgh
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Mike
14 Aug 2014, 03:15 PM
Only the tip of the ice berg to what is going to happen in coming decades.

Do you really think one of the richest most under populated countries in the world just south of the most densely over populated regions in the world would last forever. Get used to it, Australia is part of Asia wether people like it or not. We all need to share this planet and it's resources one way or another, we'd do not live here in isolation from the rest of the world.
Dipshit.

Australia is part of Oceania last time I checked or is Russia part of Asia too? Why are we in any way responsible for the overpopulation of other countries? F you borderless world fools, grow a set and protect your country.
Edited by Leodwald of Portsburgh, 14 Aug 2014, 06:33 PM.
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