We’re Chinese burned

Crackdown in Beijing sees $40m pulled from deals

UNCERTAINTY around policy changes in China has already stalled Gold Coast property deals worth at least $40 million as jittery China-backed groups leave the negotiating table.

Chinese investment in foreign casinos and defence technologies has been banned by its government, while capital for film production, sport, property development, theme parks and hotels has been classified as “heavily restricted”.

Knight Frank agent Mark Witheriff said he knew of at least two major deals, totalling about $40 million, that had fallen over after Chinese interests withdrew from negotiations.

“I suspect there will be a slowdown until people see the lie of the land in terms of property,” he said.

“There is still interest from Chinese groups but they may not be as bullish as they were.”

Mr Witheriff said Sydney and Melbourne were likely to be harder hit than the Gold Coast.

“The Coast is still relatively cheap and there is still significant interest from Australian groups and from Southeast Asia – Singapore and Malaysia.”

The policy changes may mean ASF Group has lost its chance to build an integrated resort and casino.

State-owned China State Construction Engineering Company is a key funding partner of ASF Group, whose representatives declined to answer questions about their future.

The policy changes capped off a horror August for the ASX-listed group, whose $3.5 billion casino plan at the Spit was scuttled a fortnight before it lost a multibillion-dollar bid to develop a 10ha site at London’s Royal Docks.

ASF remains in discussions to develop a major road tunnel at Castle Green in the English capital.

Dalian Wanda group, a partner in the Gold Coast’s Jewel development, offloaded hotels and theme parks worth $12 billion last month and backed out of a $760 million land deal in London last week after the crackdown from Beijing on “irrational overseas investment”.

It last month transferred its 60 per cent share of the Jewel project from one of its Hong Kong-listed companies to its China-based Dalian Wanda Commercial, which is majority owned by billionaire Wang Jianlin and his family.

In response to the Gold Coast Bulletin’s questions, Wanda’s China-based managing director of Global Communications David Liuhang declined to answer directly, instead giving a “background statement of facts” that could not be attributed to the company or to him.

The local partners in Jewel, Ridong Group, have maintained it is business as usual.