Poly Property seeks 2.3b yuan for JV projects

Poly Property (0119) is asking for 2.3 billion yuan (HK$2.66 billion) for its stake in 12 project companies with Country Garden (2007), according to data from China Beijing Equity Exchange.

Poly listed the stake of 12 subsidiary companies as a bundled transfer - all joint ventures between Poly Property and Country Garden.

The listed companies are real estate developers located in various tier one to three cities in the mainland, including Nanjing, Chongqing, Zhuhai and Taizhou.

A part of the corresponding projects have been sold while some areas are still available for sale.

Many of the subsidiary companies recorded losses in their financial statements until December 31, 2022, including a Nanjing-based developer which had a net loss of 880,850 yuan in 2022 and 105 million yuan in 2021.

Meanwhile, Poly's contracted sales more than doubled year-on-year last month to 4.9 billion yuan.

The contracted sales area was around 175,000 square meters, with an average contracted selling price of 27,990 yuan per sq m.

China Overseas Land & Investment (0688) said its January contracted property sales fell by 10.8 percent from the previous year to 13.2 billion yuan.

The gross floor area sold was around 711,200 sq m - a 14.1 percent decrease compared to the previous year.

Additionally, as of January 31, the group recorded subscribed property sales of roughly 12.7 billion yuan - anticipated to be transformed into contracted sales in the upcoming months.

Agile Group Holdings (3383) also reported a 12.7 percent drop in January's contracted sales, totaling 6.44 billion yuan, with a gross floor area of 419,000 sq m. The selling price was 15,348 yuan per sq m on average.

Meanwhile, local government financing vehicles snapped up more than half of residential land sales last year, spending 2.2 trillion yuan, according to a tally by Guangfa Securities (1776).

Last month, Antan Credit Rating, a Hubei-based company, reported that 79 percent of the land purchased by LGFVs at auctions was at the reserve price, indicating that the transactions were largely aimed at stabilizing the market.