Evergrande boss Xu Jiayin is focusing on finishing homes and paying workers since the government stepped in
China Evergrande seems to be receiving new levels of government support, but whether that support is being extended to the company’s offshore bondholders is the region’s top story as the defaulting developer faced $255 million in coupon payments today, with no reports of distributions having emerged by press time.
Also in the news today, Shimao Group’s mainland unit says it will start selling assets as it struggles to meet bond obligations of its own and Singapore’s expats face their own challenges as apartment rents hit a six-year high.
Evergrande Shares Rose 10% Despite Deadline on $255M in Debt
China Evergrande Group’s bondholders may soon be short another $255 million as the embattled developer focuses on delivering homes and paying workers instead.
Coupons on two dollar notes were due Tuesday, both with a 30-day grace period before a default can be declared. The developer was labelled a defaulter by international ratings firms for the first time earlier this month after it failed to repay liabilities on time. Read more>>
Shimao in Talks to Sell Assets as Bond Deadlines Loom
Chinese developer Shimao Group’s flagship unit said it plans to use its own capital to make onshore bond payments due in the next three months, and it is in talks to sell its commercial and hotel assets.
Shanghai Shimao Co also said it will be difficult to meet its RMB 38 billion ($6 billion) full-year sales target, as sales in the first 11 months were RMB 28.2 billion. The firm published the comments made to investors in a filing on Monday. Read more>>
Singapore Condo Rents Hit Six-Year High
Private housing rents in Singapore have climbed to a six-year high, and analysts anticipate further increases as demand outweighs supply. That is adding to costs for expatriates at a time when inflationary pressures are building.
The COVID-19 pandemic can be blamed for much of the gains: a shortage of migrant workers has contributed to construction delays, forcing people to lease while waiting for apartments to be built. Younger Singaporeans have been moving out of the family home in search of more space to work remotely. And homeowners returning from stints abroad are taking back their units, reducing the rental stock and pushing tenants into the market. Read more>>
Brighter Days Seen for Singapore Office Landlords
Brighter days may lie ahead for office landlords in Singapore. Commenting on the outlook for its office portfolio, which is concentrated in the central business district, the manager of Suntec REIT said in its third-quarter update that rent recovery will continue, supported by limited new supply and demand from growth sectors such as technology, media, telecom, financial services and healthcare.
Office landlords likely cheered Singapore’s easing of its current default work-from-home stance, by allowing 50 percent of those who can work from home to return to the office starting from 1 January. Read more>>
India’s Motilal Oswal Targets $201M Closing for Real Estate Fund
Motilal Oswal Real Estate Fund, the private equity arm of the Motilal Oswal Financial Services Ltd, is planning a final close to its fifth fund, India Realty Excellence Fund V, by April 2022. IREF V, initially launched with a target of INR 800 crore, was subsequently increased to INR 1,500 crore ($201 million), considering the demand and buoyancy in the real estate sector. The fund will be investing primarily in residential real estate projects.
The first close — of the fifth real estate fund — was achieved earlier this year and it received commitments to the tune of INR 650 crore. By December, IREF V achieved its third close at INR 1,085 crore and made five investments. Read more>>
Vietnam Banks Market Distressed Properties as Market Recovers
Vietnamese banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of Vietnamese dong, to recover debts amid the recovery of the realty market.
Vietcombank has just announced the sale of many properties as collateral to recover debts worth nearly VND 1.2 trillion ($52.5 million). The assets include more than 70,000 square metres (753,000 square feet) of industrial park land and factories attached to the land in the Viet Nam-Singapore 2 and VSIP industrial parks in Binh Duong province. Read more>>
Mumbai, Bengaluru, Hyderabad Pegged to Lead 2022 India Real Estate Recovery
Bengaluru and Hyderabad are expected to lead India’s residential real estate recovery in 2022 at a time when home purchases have picked up pace in the wake of record-low home loan interest rates in the last 15 years and record-low affordability driven by stable real estate prices, according to Housing.com.
While these three cities have seen increased homebuyer activity after the second wave of the coronavirus pandemic, the Tier II cities like Surat, Jaipur and Patna are the ones that have recorded the highest increase in online property search volume in 2021. The index also lists its “cities to watch out for building-up residential demand”, which include Tier II cities like Surat, Jaipur, Patna, Mohali, Lucknow and Coimbatore. Read more>>
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