Vanke Continues Slimming Down with Asset Securitization

00:00

00:00/00:00

Listen to this article 1x

In July, Vanke said it expected to post a first-half loss of 7 billion yuan to 9 billion yuan

China Vanke Co. Ltd. (000002.SZ) is speeding up efforts to offload assets through securitization as it grapples with a worsening liquidity crunch.

On Wednesday, the Shenzhen-based builder said it had established a 2.23 billion-yuan ($311 million) fund in partnership with three other companies to acquire its interests in two shopping malls, in Beijing and Shenzhen.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China Vanke Co. Ltd. has established a 2.23 billion-yuan ($311 million) Pre-REIT fund to alleviate liquidity issues by offloading assets.
The fund, in collaboration with Taikang Life Insurance and Citic Securities, will acquire Vanke’s interests in Beijing Jiugong Vanke Plaza and Shenzhen Longgang Vanke Plaza.
Vanke's total maturing debts in 2024 amount to 32.2 billion yuan, and the company anticipates a first-half loss of 7-9 billion yuan for 2023.

AI generated, for reference only

Who’s Who

China Vanke Co., Ltd.: China Vanke Co., Ltd. is a Shenzhen-based builder facing a liquidity crunch and accelerating asset offloads via securitization. It recently formed a 2.23 billion-yuan fund with partners to acquire interests in two shopping malls in Beijing and Shenzhen. Vanke holds significant stakes and sees the Pre-REIT approach as a strategic way to generate cash flow and exit under favorable conditions. The company has substantial debts maturing by 2024 and expects significant first-half losses.

Taikang Life Insurance Co., Ltd.: Taikang Life Insurance Co., Ltd. is one of three companies partnering with China Vanke Co. Ltd. in a 2.23 billion-yuan ($311 million) fund to acquire interests in two shopping malls in Beijing and Shenzhen. Taikang holds a 35% stake in the fund, which is structured as a Pre-REIT.

Citic Securities Co., Ltd.: Citic Securities Co., Ltd., along with its wholly owned subsidiary Citic Goldstone Fund Management Co., holds an 8.95% stake in the 2.23 billion-yuan Pre-REIT fund established by China Vanke Co. Ltd. and serves as the fund's manager. The fund is structured to acquire Vanke's interests in two shopping malls located in Beijing and Shenzhen.

Citic Capital: The article mentions Citic Securities Co. Ltd. and its wholly owned subsidiary Citic Goldstone Fund Management Co. participating in a fund to acquire interests in two Vanke shopping malls. Citic Goldstone serves as the fund's manager. However, the article does not provide detailed information about Citic Capital specifically. For more details on Citic Capital, you may need to refer to additional sources.

AI generated, for reference only

What Happened When

February 2024：: Vanke sold its entire stake in Qibao Vanke Plaza, a Shanghai retail complex, to Link Real Estate Investment Trust (Link Reit) at a discount.

March 2024：: Ratingdog provided a report estimating the equity value of the Beijing Jiugong Vanke Plaza at 800 million yuan ($112 million) and the Shenzhen Longgang Vanke Plaza at 2 billion yuan ($279 million).

May 2024：: Vanke sold its stake in another Shanghai project to GIC Pte Ltd., the Singapore sovereign wealth fund.

July 2024：: Vanke expected to post a first-half loss of 7 billion yuan to 9 billion yuan. This indicates a sharp downturn from the first quarter of 2024, where the company reported a 362 million-yuan loss.

Wednesday, August 14, 2024：: China Vanke Co. Ltd. announced the establishment of a 2.23 billion-yuan ($311 million) Pre-REIT fund in partnership with three other companies to acquire interests in two shopping malls in Beijing and Shenzhen.

AI generated, for reference only