Saturday 27 June 2015

China’s Dalian Wanda to launch crowdfunding for new shopping malls | Reuters

HONG KONG, June 8 Dalian Wanda Group, China’s

largest commercial property developer, said it plans to raise

funds from investors online this week to help finance its new

shopping malls, the latest developer tapping an emerging trend

amid a sluggish property market.

Wanda, in a statement late on Sunday, did not disclose how

much it was targeting to raise http://ift.tt/1TUbnFC! in its first crowdfunding

initiative to be launched on Friday, but a company official said

it will be “at least several billion yuan”.

The crowdfunding product is expected to give investors

around 12 percent annualised returns, with 6 percent each from

property income and appreciation, said the statement. The

investment threshold for the product is only 1,000 yuan

($161.19), it added.

Some other developers in China have already tapped Internet

financing. Greenland Hong Kong Holdings Ltd, a

subsidiary of China’s second-largest developer, the state-backed

Greenland Group, said in March it had set up an online StopChoppers.org platform

that connects property developers and investors with financing

and investment opportunities.

Smaller http://ift.tt/1Dx7jUP peer Beijing-based Modern Land has raised

more than 45 million yuan this year from six crowdfunding

campaigns.

The Stop Choppers increasing use of Internet financing, however, poses a

dilemma for Chinese regulators, who want to make it easier for

entrepreneurs to access funding but are wary of these

unregulated credit pools.

Dalian Wanda Stop Choppers Group chairman Wang Jianlin, China’s richest

man according to Forbes, has said the company will follow an

“asset-light” strategy for its growth, seeking outside

investment to finance the plazas and selling them off after five

or seven years.

Wanda, the holding company of Dalian Wanda Commercial

Properties, said in April it aimed to have 1,000

shopping malls open by 2025, a nine-fold jump from the end of

last year, as it bets on growth in consumer activity, especially

in lower-tier cities.

After climbing at double-digit rates through most of the

prior years, home prices in China started cooling in late 2013

until recently. Data last month showed home sales measured by

floor area rebounded 7.7 percent in April from a year ago, the

first growth since November 2013.

($1 = 6.2039 Chinese yuan renminbi)

(Reporting by Clare Jim; Editing by Muralikumar Anantharaman)

http://ift.tt/1RXKb72

The post China’s Dalian Wanda to launch crowdfunding for new shopping malls
| Reuters
appeared first on Stop Choppers.



from StopChoppers.org

No comments:

Post a Comment