Shimao boss Xu Rongmao is showing off his market influence in all the wrong ways
In today’s roundup of regional news headlines, Shimao is the latest mainland developer to be hit with downgrades by key ratings agencies, shareholders baulk at Joseph Lau’s privatisation offer for Chinese Estates, and Singapore’s CDL acquires a residential development site in Britain.
Shimao Downgraded by Fitch, Moody’s
Two credit rating agencies downgraded Shimao Group Holdings on Friday, highlighting the growing stress at the embattled Chinese property developer.
Shimao lost its investment-grade status at Fitch Ratings, which lowered its assessment of the firm for the first time since 2012, citing weak sales and unfavourable financing conditions. Moody’s Investors Service cut Shimao deeper into junk on increased refinancing risks. Read more>>
Chinese Estates Privatisation Offer Flops With Shareholders
The offer to take Chinese Estates Holdings private by Hong Kong magnate Joseph Lau’s family was too low to accept, some shareholders said Friday before a special general meeting where they were to vote on the offer.
Trading in the company’s shares was halted on Friday afternoon, according to a filing with the Hong Kong exchange. Chinese Estates dropped 0.5 percent to HK$3.78 ($0.48) at the morning session close. Read more>>
Singapore’s GIC Eyes Chinese Property Assets
Singapore’s $744 billion sovereign wealth fund sees potential opportunities to do deals and buy debt in China’s battered real estate sector, confident Beijing won’t let things “spiral out of control” after several defaults.
“We continue to have confidence that it is a good investment market for us,” said Lim Chow-Kiat, chief executive of GIC. “We are not moving away from being involved in the Chinese real estate market.” Read more>>
CDL Acquires Birmingham Apartment Site for £6.5M
City Developments Ltd has acquired a 250-year leasehold site in Birmingham, England for a purchase consideration of £6.5 million ($8.6 million) to develop an octagonal-shaped residential skyscraper.
Called Octagon, the 49-storey tower will comprise 370 build-to-rent units and have an estimated total development cost — including land cost — of £110 million. Read more>>
Singapore Govt to Boost Land Sales in Tandem With Cooling Measures
Along with the latest cooling measures announced late Wednesday night, Singapore’s government will boost supply in both the private and public housing markets. The number of units available under the confirmed list of the H1 2022 Government Land Sales Programme will rise 40 percent from H2 2021, Minister for National Development Desmond Lee announced.
Taken together, the measures are aimed at both demand and supply to support a stable property market for the medium term, as well as to keep housing affordable for Singaporeans, he said. Read more>>
Singapore Property Curbs May Be Short-Term Fix for Market
Singapore’s move to introduce property cooling measures may slow demand and prices in the next six months. But this may just be a short-term fix in a market with an insatiable appetite for homes.
Home sales and values are likely to pick up once the market gets used to the latest curbs — just like they did after the last round in 2018, analysts said Thursday after the government raised levies and tightened some lending limits. Read more>>
Chinese Property Tycoons Lose $46B in 2021
The richest bosses behind China’s property firms have lost more than $46 billion combined this year, according to the Bloomberg Billionaires Index, a ranking of the world’s 500 richest people that started in 2012. China Evergrande founder Xu Jiayin’s wealth alone has plunged by $17.2 billion, one of the biggest slumps for 2021.
China’s financial regulator is coordinating negotiations between Shimao Group and some trust firms for loan extensions, according to people familiar with the matter, a sign that authorities want to prevent a cash crunch at the embattled developer. Shimao’s shares rebounded on Thursday after a four-day, 35 percent rout, rising 4 percent in their biggest jump in two weeks. Read more>>
GLP Launches $471M Mainland Logistics Fund
Singapore-based logistics real estate investor GLP has partnered with Chinese state-owned insurer China Life and agribusiness player China Co-Op Group to set up a modern logistics industry fund with a debut size of nearly RMB 3 billion ($471 million).
The fund, dubbed GLP Co-Op Development Fund, targets up to RMB 20 billion in capital commitments. Read more>>
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