Zhenro has joined the defaulting mainland developer club
In today’s roundup of regional news headlines, Chinese developer Zhenro announces its first default after missing interest payments on two offshore bonds, Vanke founder Wang Shi files for a Hong Kong-listed SPAC, and mainland banks suspend mortgage payments for borrowers in COVID-hit Shanghai.
Zhenro Properties Defaults on Two Offshore Bonds
Zhenro Properties Group defaulted for the first time after the debt-laden Chinese developer said it was unable to pay interest on two US dollar bonds before a grace period ended on Saturday.
The builder, which in February asked holders of about $1 billion in bonds set to mature this year for more time to repay, said in a Hong Kong stock exchange filing on Sunday that it did not pay a combined $20.4 million in interest on two dollar bonds. That has resulted in events of default, according to the company. Read more>>
China Vanke Founder Applies for Hong Kong SPAC Listing
Wang Shi, the founder of developer China Vanke, filed an application to list his special-purpose acquisition company in Hong Kong, riding on a boom in the city’s newly available form of fundraising.
The Cayman-incorporated Destone Acquisition Corp, which is 65 percent controlled by Wang through a wholly owned unit, with the rest owned by Asia Investment Fund Management, will be engaged in mergers and acquisitions mainly in the green energy and consumer industries, according to the firm’s prospectus published on the website of Hong Kong Exchanges and Clearing. Read more>>
China Banks Allow Mortgage Payment Holiday in COVID-Hit Shanghai
China’s largest banks are allowing residents in Shanghai to delay their mortgage payments as part of the nation’s broader efforts to support the financial hub in its COVID fight.
Lenders including ICBC and Bank of Communications are offering Shanghai clients a payment holiday on their mortgage loans for as long as three months. China Construction Bank is allowing clients to delay their payment on both mortgage and consumer loans for up to 28 days, while Bank of China said any records of overdue payment due to the pandemic will be removed. Read more>>
Edge Centres Raises $9M, Plans Edge Facilities In Malaysia
Australia’s Edge Centres has closed an A$12 million ($9 million) Series A funding round and is planning to roll out data centres in Malaysia and other areas within APAC.
Edge Centres provides modular “off grid” data centres powered by on-site wind and/or solar power and connected to the main grid as backup. The company says the sites can produce more electricity than they use. Read more>>
Freehold Singapore Commercial Building Up for Sale at $36.7M
A four-storey freehold commercial development at 381 Joo Chiat Road, complete with an attic and basement carpark, has been put up for sale at an indicative price of S$50 million ($36.7 million).
Zoned commercial under the Master Plan 2019 with a plot ratio of 3.0, the sale of the 5,708 square foot (530 square metre) site will be conducted through an expression of interest exercise. Read more>>
Philippine National Bank Brings Forward Property Unit Listing
Billionaire Lucio Tan’s Philippine National Bank brought forward its plan to list its property unit, now aiming to float the asset by the end of this year to boost capital.
That puts the listing of PNB Holdings ahead of the original 2023 schedule and will generate about PHP 10 billion ($190 million) of additional capital, president and chief executive Wick Veloso said. Read more>>
China Bond Exodus Quickens, Developer Stocks Jump
Global funds slashed their holdings of Chinese bonds by the most on record last month amid the nation’s dwindling yield advantage over the US and geopolitical uncertainties posed by the war in Ukraine.
Meanwhile, Chinese real estate stocks rallied anew Friday, with a Bloomberg gauge jumping as much as 4.6 percent amid JPMorgan Chase’s upbeat assessment of the sector’s equity outlook. Read more>>
Keppel DC REIT Targets APAC Data Centre Hubs
Keppel DC REIT may be headed for more equity fundraising, as the data centre investor looks to pick up more assets after an active acquisition spree in the past year.
“Anything above S$100 million ($73.3 million) would be a nice deal size, and the larger it is, of course, it would be a lot more needle-moving,” Anthea Lee, chief executive of the trust’s manager, told the Business Times. Read more>>
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