Evergrande boss Xu Jiayin is still struggling to pay suppliers
Fresh trouble for flailing China Evergrande Group leads Mingtiandi’s headline roundup today as a construction firm controlled by the Shanghai government succeeds in having two sets of the developer’s assets frozen by courts.
Also in the news today, more consolidation could be on the way for Chinese developers as state-backed Grandjoy gets a $1.58 billion credit facility from China Merchants Bank and failed Singapore hospitality REIT EHT has closed on the sale of a Houston Hilton.
Chinese Courts Freeze $158M in Evergrande Assets
A Chinese court has ordered the freezing of RMB 640.4 million in assets held by a subsidiary of China Evergrande Group, according to a filing by contractor Shanghai Construction Group.
Separately, Shanghai Construction Group said last week a local court in Guangzhou has frozen RMB 361.5 million of assets of a different Evergrande unit in the central province of Jiangsu for overdue payments. Together the pair of legal moves by the Shanghai government-controlled builder have locked up more than RMB 1 billion ($158 million) in the mainland developer’s assets. Read more>>
State-Owned Chinese Developer Grandjoy Gets $1.58B M&A Facility
State-owned Chinese developer Grandjoy Holdings Group said it has signed a RMB 10 billion yuan ($1.58 billion) financing facility with China Merchants Bank to fund acquisitions in the country’s real estate sector.
State-owned property firms are expected to acquire more assets from cash-strapped private developers, as Beijing steps up efforts to stabilise and tighten control over a crisis-hit sector that accounts for a quarter of its economy. Read more>>
Eagle Hospitality Trust Completes Sale of Houston Hilton for $14M
Eagle Hospitality Trust (EHT) has completed the sale of the Hilton Houston Galleria hotel for $14 million on Feb 1, 2022, DBS Trustee said in a bourse filing on Wednesday 16 February.
The net proceeds from the sale were used to offset the outstanding principal balance of the Hilton Houston Galleria mortgage loan, but were understood to be insufficient to cover the approximately $15.6 million owed. In the same filing, DBS Trustee said that the Chapter 11 case for its subsidiary which holds the leasehold interest in the Queen Mary Long Beach hotel, has been converted to a Chapter 7 bankruptcy. Read more>>
Indian Data Centre Operator Web Werks Buys Bengaluru Building
Web Werks has announced the acquisition of an industrial building that will be converted for its first data center in Bengaluru. The new data center will offer 110,000 square feet of colocation space supported by a significant power capacity of up to 20 MVA of gross power with an expected IT load of up to 10MW of which half of the required power is already on site.
The first phase of delivery is expected to be completed by Q4 2022 with the company, which entered into a joint venture with Iron Mountain Data Centers in early 2021, aiming to meet the hosting, colocation, cloud on-ramp, storage, and network needs of businesses in the Southern India region. Read more>>
Shenzhen Second-Hand Home Sales Drop 60%
Shenzhen’s housing market has gone into deep freeze, as a mixture of anti-speculation measures and a slowing economy sent the market contraction into overdrive, causing sales of lived-in homes in the secondary market to plunge to a 15-year low.
Sales of second-hand homes plunged 60 per cent to 40,699 last year, from 95,273 transactions in 2020, according to data provided by the Shenzhen Real Estate Intermediary Association. Last year’s volume was the lowest since 2007. Read more>>
Mapletree Logistics Trust Buys Malaysia Logistics Site for $16M
Mapletree Logistics Trust has entered a deal to acquire two leasehold land plots for industrial properties in Subang Jaya, Selangor, Malaysia, for a total of 65.6 million ringgit, or around $15.7 million, the trust said in a filing to SGX Tuesday.
“The proposed acquisition offers a rare redevelopment opportunity for MLT to amalgamate the property with our existing adjacent properties Subang 3 and 4 for the development of the first modern ramp-up warehouse in Subang Jaya,” Ng Kiat, CEO of the trust’s manager, said in the statement. Read more>>
Mainland Developer RiseSun Asks US Court to Recognise Debt Restructuring
A unit of a Chinese real estate developer RiseSun Real Estate Development Co Ltd on Monday filed papers in a Manhattan bankruptcy court seeking legal protection in the U.S. as it pursues a debt restructuring in the British Virgin Islands.
The unit, RongXingDa Development (BVI) Ltd, owes $779.7 million in senior note debt. RiseSun primarily develops small-to-mid-sized residential properties in China. RongXingDa began exploring restructuring options after RiseSun struggled to pay down debts as a result of declining property sales in China and trouble accessing funding from capital markets, according to court papers. Read more>>
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