Interesting article on Chairman Koo of NTP from 9/2013
Nam Tai chairman stands to make a fortune from his factory site in Shenzhen, thanks to the city government's rezoning project for Qinghai
Monday, 02 September, 2013,
Nam Tai Electronics chairman Koo Ming-kown, nicknamed the "electronics king", earned his first pot of gold by selling calculators before moving on to the assembly of high-end electronic components for original equipment manufacturer customers.
His company now stands to make an unexpected fortune from property.
Nam Tai, founded by Koo in 1975, plans to redevelop a plant close to Shenzhen's Qianhai special economic zone to take advantage of a rezoning project by the city government. The 52,600-square-metre factory site, bought by Koo's company in 1993 for 30 million Yuan, will be turned into a complex offering more than 300,000 square meters of commercial, serviced-apartment and hotel space, with the project valued at nine billion Yuan (HK$11.3 billion) to 12 billion Yuan.
"This is a gift from heaven as we never dreamed of earning money from property but now we are forced to earn such a fortune," Koo said.
Koo, 69, said redeveloping the factory was not his idea, but a result of a Shenzhen government plan to turn areas close to Qianhai into commercial use to support the zone's development as a financial centre. The special economic zone was designated last year as a testing ground for the freer transfer of Yuan.
Land prices in Qianhai and nearby have surged, with China Resources Land, the property flagship of China Resources (Holdings), paying 10.9 billion Yuan last month for the third commercial site in the zone, making it Shenzhen's most expensive land.
Koo said the factory would be moved to other land the firm owned at Shenzhen's Guangming Hi-Tech Industrial Park.
China Grants Approval for First Public REIT Offering
June 9, 2015 — 4:21 AM EDT
China’s securities regulator granted approval for the first public sale of units by a real-estate investment trust, broadening financing channels for developers facing a prolonged housing market slump.
The China Securities Regulatory Commission on Monday approved the REIT managed by Penghua Fund Management which will list in Shenzhen following the offering, according to a person at the company who asked not to be identified. The trust will be made up of commercial properties from China Vanke Co. in the southern city of Shenzhen and receive cash flows from rental income, the developer said in an e-mailed statement.
Chinese developers are looking to raise cash as home sales remain weak after a more than yearlong housing market slump. China Resources Land Ltd. and Evergrande Real Estate Group Ltd. are among listed Chinese homebuilders that raised funds in Hong Kong through share sales last month.
Vanke has been exploring different asset management models, including REITs, Vanke President Yu Liang said at a May 14 briefing in Beijing. The builder tapped the bond market in December after regulators allowed more property companies to access the onshore note market.
The approval came after China’s housing ministry in January called for active pushing ahead on trial of REITs, amid a housing market slowdown dragging on the economy. In countries including the U.S. and the U.K., REITs enable both developers to diversify portfolios and investors to gain exposure to the kinds of real estate that would otherwise be too expensive.
REITs are positive for developers with high investment properties as they can enhance return on equity, Du Jinsong, Hong Kong-based analyst at Credit Suisse Group AG, wrote May 3.
China approves first REIT listing of Vanke properties
HONG KONG, June 9
China has approved its first real estate investment trust (REIT) public offering, which will consist of office properties owned by China Vanke and managed by Penghua Fund Management, the country's largest property developer said on Tuesday.
The REIT will list on the Shenzhen stock exchange, another source with knowledge of the matter said, and aims to raise several billion yuan.
REITs, common in most developed markets, give developers a new way to raise funds as property sales slow in an oversupplied market.
The approval from the China Securities Regulatory Commission came on Monday, a Vanke spokeswoman said, and the office properties packaged in the REIT are in the Shenzhen free trade zone. She did not give more details. Penghua was not immediately available for comment.
China's largest commercial property developer, Dalian Wanda Commercial Properties, and state-backed China Resources Land have also expressed an interest in launching REITs. (Reporting by Clare Jim; Editing by)
Nam Tai Property Inc. (NYSE:NTP): The 1.95% of the US long portfolio NTP stake was increased by more than one-third in Q1 2014 at prices between $5.59 and $7.27. Last quarter saw an about-turn as the position was reduced by 21% at prices between $4.18 and $6.07. This quarter saw minor additional trimming. The stock currently trades at $5. The original position was a ~2% (~400K shares) stake established in 2001.
Note: Kahn controls 6.85% of the business through his ownership of just over 2.9M shares of NTP.