Lehman's 200 million dollar rush to leave its assets in China

KPMG sees vacant Shanghai office, domestic brokers See more Abstract: 17th KPMG announced that, as the bankrupt Lehman Brothers liquidators, they quickly shot Lehman Asia Limited in China's real estate assets, it has disposed of 9 of Chinese property-related loans and 7 of the debt. Will Lehman's sell-off in China's real estate assets trigger a knock-on effect? CFP 17th KPMG, the bankrupt Lehman Brothers, quickly shot the property assets of Lehman Asia Limited in China, which has disposed of 9 of the 7 loans and bonds related to Chinese property, the firm announced. Lehman's sell-off reflected concerns about the prospects for overseas investors in Shanghai's commercial real estate.　　Domestic brokerages also have differences, the East China Sea Securities believe that the future of Shanghai commercial real estate has not seen a signal of recovery, Everbright Securities that Shanghai commercial real estate is about to hit the bottom of the future price bullish.　　KPMG's bearish Shanghai office says the real estate portfolio in Lehman Asia includes 44 loans related to hotels, residential, retail and commercial real estate, mainly in China and Thailand. From the media data can be seen in China's real estate investment, including: 2004 together with Morgan Stanley Real Estate Fund, joint participation in Shanghai Wing Yip Group Development of Shanghai Wing Yip Apartment Two, the respective shares of 25%. At the end of 2004, Lehman Brothers began working with China Sea property to set up a small property development fund, each of which contributed $50 million to develop a small 100,000-square-metre project in Longgang, Shenzhen. In November 2006, Lehman Brothers, together with the capital strategy of Hong Kong listed companies to invest in the establishment of the company, at 416 million yuan to the price of the Shanghai city of Hongkou in the Fuhai mansion building. More than 2007 years later, Lehman increased its investment in the Chinese real estate market, injecting $200 million into the Tianjin group. In May 2008, Alam, a affiliated company of Lehman Brothers, teamed up with China Railway (600528.SH), A shares listed company, to set up a joint venture in Chengdu, and Lehman Brothers financed about 150 million yuan, accounting for 49% of the joint venture.　　In addition, Lehman holds a 6% per cent stake in the Hong Kong-listed company, Hung Lung Holdings (1383.H K), and in July 2008 increased to 13%, and hung lung holdings mainly engaged in the development and leasing of mid-range real estate projects in Guangdong province. KPMG did not disclose exactly what the property investment was sold, but noted that the deals received a total of more than $200 million trillion in revenue and achieved a 80% per cent recovery for creditors. Most of these deals are sold to former lenders. 6 of the real estate investments Lehman has cleaned up are in Shanghai, where the "Fuhai Mall" project has just been sold, and the media reports that the partner has successfully purchased about HK $434 million of its subsidiaries ' outstanding annual loans at HK $236.5 million. Its takeover price is less than 55% of Lehman's loan assets.　Such a sell-off shows the urgency of Lehman's rush to sell.　Michael Lin, KPMG's partner in charge of the sale, explained why: "In early 2009, our market intelligence showed a risk of worsening commercial rents and capital values, especially in Shanghai's office space." We therefore feel the need for swift action. "[Page] whether to adjust the signal, the broker is very big differences between the liquidators of commercial real estate in Shanghai is there a basis for concern?"　　East China Sea Securities real estate analyst Guichang pointed out that although the Shanghai commercial housing market recently a clear rebound, but in contrast to Shanghai's commercial real estate in 2007 began to slump, do not see the recovery signal. The impact of financial crisis on commercial real estate is more obvious, because the small and medium-sized enterprises are faced with operating difficulties, the high rents of Shanghai office is unbearable, leading to the lack of commercial real estate demand in Shanghai.　　On the other hand, supply is on the increase, in the next 12 months, Shanghai will be a large number of new commercial real estate to be completed, thereby depressing rental yields and capital value. However, Everbright Securities real estate analysts, including commercial real estate, the overall prospects of the real estate industry, he said commercial real estate has almost bottomed out, and for Shanghai's real estate, due to the small amount of land supply in recent years, the overall real estate supply relatively small, at the same time the market liquidity adequacy,　　There is no other reliable investment channel, so real estate prices will still be bullish. Lehman's Sell-off, due to its limited size, has little impact on Shanghai's real estate market, but may be seen as a market signal. But while Lehman dumped Shanghai's real estate investment assets, a number of Hong Kong people marched into Shanghai's top-tier properties, a view that the market was divided over expectations of Shanghai's real estate industry. Qiang pointed out that Lehman's sale of property was likely to be only for capital needs. It is reported that in Lehman's history of the largest bankruptcy liquidation case, the current Lehman branch in Asia has received the most explicit orders to sell assets. Lehman's investment in China, which includes Ctrip and Baidu, is one of the top ten institutional shareholders of the two Chinese concept stocks, and the Chinese Investment Fund, which was formed in conjunction with IBM, bought about 7.7% of the software in 2007. Lehman also owns shares of Lenovo Group, Tencent Holdings, Kingsoft Software, China Telecom, Netcom, Chinese mobile, China Unicom and other listed companies, but the numbers are small.