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)
The post China’s Dalian Wanda to launch crowdfunding for new shopping malls
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