Diversification for China Overseas Land | Asia Property

Subscription Enquiries
Editorial Enquiries

This will be the secondary navigation

Diversification for China Overseas Land

Published on January 10th, 2014

Further diversification for China Overseas Land, as it plans to bid for more sites at Kai Tak, the site of Hong Kong’s old airport in Kowloon, as detailed here

It is notable that COL is planning to doubly diversify, seeking to increase the commercial part of its development portfolio to 20% in five years, from 5% now, as well as investing overseas. This is part of a wider pattern of China’s largest developers moving a portion of their business out of the domestic housing market that gave birth to them.

For example Greenland Group has signed deals for two billion dollar developments in London already this year.

The key question is whether these moves are a part of a natural progression as China’s major companies grow and go global, or whether they are simply a hedge against a collapse of the Mainland housing market.

For example, Singapore developers are also cropping up all over the world and this is a direct consequence of their homeland’s moribund housing market. There are no margins at home, so the developers are taking their capital and expertise overseas.

The other key question, which was put to me recently, is: “Are Chinese developers the new Japanese?” Thoughts please…


News in brief

Oxley’s S$311m bid secures Singapore residential complex Oxley Holdings has acquired Mayfair Gardens, an en-bloc Singapore residential complex, for S$311m ($230.8m), S$46m above the reserve price. Oxley will invest a...


Gaw leads HK23bn purchase of 17 Link Hong Kong malls

Gaw joins with Goldman Sachs, ADIA and Changcheng to win 2.2m sq ft portfolio A consortium led by Gaw Capital Partners has bought a HK$23bn ($2.9bn) portfolio of Hong Kong...

Company Profiles

Cromwell REIT

Responding to Asian investors’ demand for more core assets in the IPO portfolio allowed Australia’s Cromwell to execute a previously postponed flotation of a Singapore REIT owning European property Australian...