(Bloomberg) -- Hong Kong property developer Hang Lung Properties Ltd. is looking to buy high-quality real estate from distressed peers in mainland China.
The company is interested in commercial property assets in tier one and tier two cities, Vice Chair Adriel Chan said in an interview with Bloomberg Television on Friday.
“I’ve been looking very closely at some of the opportunities that the market has presented itself,” Chan said. As for the scale of acquisitions, “the sky is the limit,” he said. “If somebody has a great asset for sale, we’re definitely willing to pony up for it.”
Chinese property developers are increasingly being forced to put assets up for sale to alleviate a liquidity squeeze that’s engulfing the industry following a crackdown on leverage. Shimao Group Holdings Ltd. is seeking buyers for 34 residential, office, commercial and hotel projects worth $12 billion, Caixin reported earlier this week.
“There’s clearly a lot more opportunities in the market for lowly geared companies and very resilient companies like us,” Chan said, adding that he will be “judicious.”
Hang Lung Properties reported earnings that missed analysts’ estimates on Thursday. The company’s full-year underlying profit for 2021 was HK$4.37 billion ($561 million), less than the HK$4.69 billion average of projections compiled by Bloomberg.
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