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SEOUL, Sept 1 (Reuters) - South Korea's Doosan Heavy Industries and Construction Co Ltd <034020.KS> said on Wednesday that it has won a $1.46 billion contract to build a freshwater generator plant in Saudi Arabia.

The company said in a statement to the Korea Stock Exhchange that it had been notified of winning the deal by Saudi Arabia's Saline Water Conversion Corp. (Reporting by Suh Kyung-min; editing by Chris Lewis)

HONG KONG -- Hong Kong shares got off to a modestly higher opening Wednesday as banks broadly advanced in the wake of positive economic data from the U.S. and China. The gains were capped by local property stocks, which declined after strong demand from developers in a land auction in the city Tuesday sparked fears of further government tightening. The Hang Seng Index was up 0.1% at 20,554.87 and the Hang Seng China Enterprises Index gained 0.4% to 11,448.40. Shares of HSBC Holdings PLC rose 0.9% and Industrial & Commercial Bank of China Ltd. added 0.2%. Sun Hung Kai Properties Ltd. fell 0.2% and Cheung Kong Holdings Ltd. fell 0.6% among property developers. China's Shanghai Composite dropped 0.1% to 2,636.08, giving up early gains.

Copyright © 2010 MarketWatch, Inc.

(Updates with Emeritus' intent to lease 26 of HCP's senior living communities; adds comments from Sunrise Senior Living. Updates stock prices.)

DOW JONES NEWSWIRES

HCP Inc. (HCP) agreed to pay Sunrise Senior Living Inc. (SRZ) $50 million to terminate management contracts on 27 of the 75 senior housing communities owned by the health-care real-estate investment trust but managed by Sunrise, as the companies also ended all litigation proceedings between them.

The companies had been locked in litigation regarding Sunrise's management performance. Following the news, Sunrise's shares jumped 15% to $2.55 in after-hours trading, while HCP's were up 0.3% at $35.32.

HCP said it will pay $40 million immediately and the remaining balance will be paid within the next year. For its part, Sunrise agreed to limit certain fees and charges associated with the remaining management contracts.

"We are pleased that we have restructured our relationship with Sunrise in a manner that will benefit both parties," said HCP Chairman and Chief Executive Jay Flaherty. "This transaction highlights the most recent examples of HCP's active approach to asset management as we continue to find ways in this economic environment to unlock additional value in our portfolio."

Later Tuesday, Emeritus Corp. (ESC), a provider of assisted living services to seniors, said it entered into an agreement with HCP to lease 26 of the senior housing communities, which are located in 13 states and consist of about 3,080 units. The initial terms provide for an agreement of 15 years with two available extension options of 10 years each. The transaction is expected to be finalized during the fourth quarter.

Flaherty expects the change will add to earnings in 2011 and 2012. He said the remaining 48 communities represent a portion of HCP's current Sunrise-operated portfolio that is "best suited for Sunrise's core operating focus."

For its part, Sunrise said it was pleased the agreement with HCP would provide additional capital to fulfill a number of financial obligations. The company made a $15 million principal repayment of its bank credit facility, which now stands at $8.4 million, down from $95 million at the end of 2008. Sunrise also agreed to use portions of the proceeds to pay down other debt obligations.

Sunrise said it will also work to restructure the leasing and management agreements of up to 35 other senior living communities with HCP, adding those talks wouldn't have a negative economic impact on the company.

Copyright © 2010 Dow Jones Newswires

DOW JONES NEWSWIRES

HCP Inc. (HCP) agreed to pay Sunrise Senior Living Inc. (SRZ) $50 million to terminate management contracts on 27 of the 75 senior housing communities owned by the health-care real estate investment trust, as the companies also dismissed all litigation proceedings between them.

The companies had been locked in litigation regarding Sunrise's management performance. Following the news, Sunrise's shares jumped 15% to $2.55 in after-hours trading, while HCP's were down a penny to $35.21.

HCP said it will pay $40 million immediately and the remaining balance will be paid within the next year. For its part, Sunrise agreed to limit certain fees and charges associated with the remaining management contracts.

HCP will enter into new agreements for the 27 communities that are anticipated to reflect "improved operating margins" in a manner similar to HCP's transition of 30 former Sunrise communities to new operators.

"We are pleased that we have restructured our relationship with Sunrise in a manner that will benefit both parties," said HCP Chairman and Chief Executive Jay Flaherty. "This transaction highlights the most recent examples of HCP's active approach to asset management as we continue to find ways in this economic environment to unlock additional value in our portfolio."

Flaherty said arrangement with new operators are at an advanced stage, and the company expects the move will add to earnings in 2011 and 2012. He said the remaining 48 communities represent a portion of HCP's current Sunrise-operated portfolio that is "best suited for Sunrise's core operating focus."

A Sunrise spokeswoman wasn't immediately available to comment on the agreement.

Copyright © 2010 Dow Jones Newswires

By Julie Haviv

NEW YORK(Reuters) - Interest rates on 30-year fixed-rate mortgages fell in the latest week, real estate website Zillow.com said on Tuesday.

Low rates on mortgages should continue to boost home loan refinancing activity and put more cash into consumers' hands to funnel into the economy. They also make homes more affordable as the housing market copes with slumping sales.

Mortgage rates on 30-year fixed mortgages, the most widely used loan, were 4.26 percent Tuesday afternoon, down from 4.29 percent at the same time last week, according to Zillow Mortgage Marketplace.

The rate was the lowest reported reported since Zillow Mortgage Marketplace launched in April 2008.

The 30-year fixed mortgage rate hovered near 4.27 percent for the majority of the week it then spiked to 4.31 percent on Monday, followed by a sharp fall to the current rate, Zillow said.

Interest rates on other types of mortgages were mixed.

Fifteen-year fixed mortgage rates were 3.82 percent, down from 3.85 percent the prior week. Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.29 percent, up from 3.26 percent the prior week.

Zillow's rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the website. They are not marketing rates, or a weekly survey.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities. Yields move inversely to price.

Treasuries have rallied as weak economic data caused investors to stampede into safe-haven long-dated U.S. debt.

TORONTO (Reuters) - Housing starts in Canada should rise moderately this year, the federal housing agency said Tuesday, while two research groups published reports to revive talk of a housing bubble but arrived at different conclusions.

Canada Mortgage and Housing Corp (CMHC) said in its outlook that it expects housing starts of 184,900 units in 2010, slightly ahead of its May outlook for 182,000 units.

There were 149,081 starts in 2009.

For 2011, CMHC forecasts 176,900 starts, down slightly from the 179,600 it forecast in May.

For the existing-home market, CMHC chief economist Bob Dugan forecast 450,000 to 485,700 resales in 2010, with a specific prediction of 463,800. For 2011, he sees 425,000 to 490,700 resales, with a specific forecast of 456,000.

CMHC did not provide a forecast for an average price but said it would "edge lower" through the end of this year then rise modestly in 2011.

The CMHC forecast follows data earlier this month that showed housing starts fell for a third straight month in July, while sales of existing homes fell 6.8 percent in the same month, offering further evidence the recently hot housing sector is no longer playing a starring role in the economic recovery.

The recent data, which followed the implementation of stricter lending rules and higher interest rates, has deflated talk of a housing market bubble.

THINK TANKS SQUARE OFF

But on Tuesday, the Canadian Centre for Policy Alternatives (CCPA) released a report saying there is still a risk of a housing bubble in six markets.

After examining trends in home prices in Toronto, Ottawa, Vancouver, Calgary, Edmonton, Montreal, between 1980 and 2010, the independent research group found price increases in those cities were "outside of a historic comfort level".

"The bursting of housing bubbles is a rare event in Canada, but the steep rise in house prices in so many cities displays all the hallmarks of an accident waiting to happen," says the report's author, David Macdonald, a CCPA research associate.

In a worst-case scenario, the report predicted homeowners in Edmonton and Montreal could be hardest hit, losing 38 percent and 34 percent, respectively, of their property value in under three years. Vancouver homeowners would be hit worst by dollar value, losing almost C$200,000 ($187,793).

The think tank found that house prices tended to hover within a narrow range of between 3 and 4 times the annual median income in the relevant province, before 2000. Currently, home prices are 4.7 to 11.3 times the median income, the CCPA report said.

Another think tank, the C.D. Howe Institute found that national housing policies have "worked well" and should help mitigate the risk of a massive wave of defaults in the future.

"To evaluate the likelihood of a U.S.-style housing market crash in Canada, one first needs to understand what caused the U.S. housing boom and bust," Jim MacGee, an associate professor of economics at the University of Western Ontario, wrote in the C.D. Howe report.

Tighter underwriting standards were a main factor that has protected the Canadian housing market, compared with the United States, which saw high-risk mortgages eventually lead to a rapid increase in foreclosures, the report argued.

"This difference in government policy has helped to discourage the build-up in Canada of a large number of high-risk mortgage loans," the report said, adding that policymakers would be well-served to remember these lessons should "pressures to relax underwriting standards reoccur in the future."

($1=$1.06 Canadian) (Reporting by Ka Yan Ng; editing by Rob Wilson)

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. consumer confidence edged up in August while prices for U.S. homes gained more than expected in June, providing a little relief for those concerned about a slowdown in the economic recovery.

Another report on Tuesday, however, showed business activity in the U.S. Midwest registered a slowdown in August, and was just shy of the pace economists expected.

The Conference Board, an industry group, said its index of U.S. consumer attitudes rose to 53.5 in August from an upwardly revised 51.0 in July.

The median of forecasts from analysts polled by Reuters was for a reading of 50.5. Forecasts ranged from 47.5 to 55.0.

The rise came as a relief to investors following a slew of weaker-than-expected economic reports in recent weeks. High unemployment and weak consumer spending are seen among the biggest hurdles for the recovery.

"This small improvement is encouraging. It suggests that even though consumers remain in a glass-half-empty mood, sentiment isn't getting any worse," said Zach Pandl, economist at Nomura Securities International in New York.

"We wonder if this level of confidence will sustain if the labor market deteriorates as we suspect," he said.

U.S. stocks turned positive following the confidence data, while U.S. Treasury debt prices pared some gains and the U.S. dollar trimmed losses against the yen.

The government's key monthly jobs report is expected on Friday, with a Reuters poll showing economists expect non-farm payrolls declined by 100,000 in August and the unemployment rate rose slightly to 9.6 percent.

HOME PRICE RECOVERY SLOWS

Also among the day's more upbeat economic news, the S&P/Case Shiller composite index of 20 metropolitan areas rose 0.3 percent in June from May on a seasonally adjusted basis.

The rise was better than the 0.2 percent increase expected by economists polled by Reuters, though slower than the 0.5 percent rise in May.

However, the gain reflected the lingering boost from homebuyer tax credits that ended in April, and economists agree the effects of buyer tax credits have largely filtered through. They say home prices will be hard-pressed to sustain these gains with unemployment still near 10 percent.

Tuesday's data also showed the Institute for Supply Management-Chicago business barometer dropped to 56.7 in August. The reading was 62.3 in July, and economists had forecast an August reading of 57.

The employment component of the index fell to 55.5 from 56.6 in July. New orders fell to 55.0, from 64.6. A reading above 50 indicates expansion in the regional economy. (Additional reporting by Lynn Adler, Ann Saphir, John Parry, Rodrigo Campos and Wanfeng Zhou)

LONDON -(Dow Jones)- The U.K.'s largest real-estate investment trust, Land Securities Group PLC (LAND.LN), Tuesday said it sold its 320,000 square-foot Stratford Centre retail development to the Catalyst European Property Fund as part of a deal worth GBP91.5 million.

The price represents a net initial yield to the purchaser of 7.25%.

The center is located on Broadway in the London suburb of Stratford, opposite the new Olympic park, and is fully let to some 60 retailers including pharmacy chain Boots, fashion retailer New Look Group PLC (NEW.LN) and supermarket chain J Sainsbury PLC (SBRY.LN).

The disposal also includes Morgan House, an adjoining 113,000 square-foot office building, which currently is vacant, and a development site, at a price of GBP5 million.

"We are pleased with the sale, which has benefited from the limited amount of stock currently available in the investment market," said head of retail investment for Land Securities Gary Sherwin. "The funds from the sale will be channeled into other activities, including more immediate development opportunities previously outlined by the group."

Jones Land LaSalle acted for Land Securities and Lunson Mitchenall for the purchasers. Finance will be provided by Deutsche Pfandbriefbank.

Copyright © 2010 Dow Jones Newswires

* Seen fading on tax credit end, unemployment, foreclosures (Adds quotes, details, byline)

By Lynn Adler

NEW YORK (Reuters) - Prices of U.S. single-family homes gained more than expected in June and rose in the second quarter, reflecting the lingering boost from homebuyer tax credits that ended in April, Standard & Poor's/Case Shiller home price indexes showed on Tuesday.

The effects of buyer tax credits have largely filtered through and home prices will be hard-pressed to sustain these gains with unemployment still near 10 percent, economists agree.

"This is the last hurrah for the tax credit," said Gary Shilling, president of A. Gary Shilling & Co. in Springfield, New Jersey. "The data we've seen for July suggests considerable weakness in both sales and prices."

The S&P/Case Shiller composite index of 20 metropolitan areas rose 0.3 percent in June from May on a seasonally adjusted basis. The rise was better than the 0.2 percent increase expected by economists polled by Reuters, though slower than the 0.5 percent rise in May.

Unadjusted, the 20-city index gained 1 percent following May's 1.3 percent jump. In the year, prices rose 4.2 percent, surpassing the Reuters forecast of 3.9 percent.

S&P, which publishes the indexes, also said home prices nationally rose 4.4 percent in the second quarter after a 2.8 percent drop in the first quarter.

Prices rose in 17 of the 20 metro areas in June, S&P said, adding that in the first half of the year 15 of the 20 areas had positive annual growth rates. The housing market is in better shape than a year ago, S&P said.

Most cities posted smaller price gains in June, though, and the annual growth rates slowed in 14 of the metro areas.

"The worry starts when you remember that the Homebuyers' Tax Credit has expired, foreclosures are still at high levels, and July data on home sales and starts were very, very weak," David M. Blitzer, chairman of the index committee at S&P, said in a statement.

"The inventory of unsold homes and months' supply data were particularly troubling," he said, adding that "if this relative weakness in demand continues, it will likely filter through to home prices in coming months."

Home prices in the 20 metro areas tracked by S&P remain 28.4 percent below the peak set in mid-2006.

July sales of existing homes eased to the slowest pace in 15 years and new home sales dropped to the slowest pace on record, the latest evidence that tight lending and the loss of home equity have stifled buying and mobility.

Unemployment and foreclosures help make housing a ship that will be painfully slow to turn around.

The recent home price improvement "doesn't say that housing is back on firm footing, and we're a long way from that," said Hugh Johnson, chief investment officer at Hugh Johnson Advisors LLC in Albany. "There is still need for help, and that help probably will come from the federal government." (Additional reporting by Ryan Vlastelica and Caroline Valetkevitch; Editing by Andrea Ricci)

BEIJING -(Dow Jones)- China's banking regulator will firmly curb speculative investment in property market but will support construction of lower-end public housing as long as the risks are under control, the official Xinhua News Agency reported Tuesday, citing a senior official at the regulator.

Ye Yanfei, a deputy director at the statistics department of the China Banking Regulatory Commission, said the property market and property loans are crucial to the national economic development and also important to the stability of the banking industry, the report said.

His comments are largely a reiteration of the CBRC's long-standing stance toward the property market development. The report didn't elaborate.

China's government has taken a series of measures this year to curb overly fast property prices rise in some cities amid concerns about bursting asset bubbles.

-Victoria Ruan contributed to this article, Dow Jones Newswires; 8610 8400 7799; victoria.ruan@dowjones.com

Copyright © 2010 Dow Jones Newswires