HNA Says It Will Sell $16B in Assets Before July and More Asia Real Estate Headlines

It’s traditional to get rid of things you don’t need and to pay off debts before Chinese New Year, and China’s HNA Group appears to be honoring this heritage with the revelation of a planned sale of $16 billion in apparently unwanted assets before the end of June. Meanwhile, China Evergrande is honoring its own history as the mainland’s most indebted developer by issuing nearly $3 billion in new perpetual securities, and a Shenzhen-based builder just picked up another US property. All these stories and more await you, if you just keep reading.

HNA Says It Will Sell $16B in Assets Before July

HNA Group, the indebted Chinese aviation-to-hotels conglomerate, told creditors it will seek to sell about 100 billion yuan ($16 billion) in assets in the first half of the year to repay debts and stave off a liquidity crunch, according to people familiar with the matter, who asked not to be identified because the discussions were private. Under the proposal, about 80 percent of that would be executed in the second quarter, according to the people.

The move is the latest in a steady drumbeat of news signaling the urgency of HNA’s liquidity situation. It also shows how after spending tens of billions of dollars gobbling up large stakes in everything from Deutsche Bank AG to Hilton Worldwide Holdings Inc., the company that once symbolized the country’s seemingly insatiable appetite for overseas assets is reversing course as China clamps down on what it describes as “irrational” investments. Read more>>

China Evergrande Levers Up Again With $3B in Perpetual Securities

China Evergrande Group, the mainland’s largest property developer by sales, is raising HK$23 billion (US$2.96 billion) from convertible perpetual securities at an indicative range of 3-4 per cent per year, according to terms seen by the South China Morning Post.

China Evergrande, which is based in Guangzhou in the southern Guangdong province, plans to use to the proceeds for refinancing existing debts and general corporate purposes, according to the preliminary term sheet. Read more>>

Gemdale Buys SoCal Apartment Complex for $46M

Shenzhen-based developer Gemdale is continuing to buy up US real estate, with news surfacing this week of the mainland China builder scooping up a 130-unit apartment house in Valencia, California for $45.9 million.

Less than one week after reports surfaced that Gemdale USA and its US partner, developer Lincoln Property Co, had put 500 Pine Street in San Francisco up for sale at an asking price of $75 million, representatives of brokerage Marcus & Millichap say the state-run mainland firm has purchased the multifamily development The Madison at Town Center in the Los Angeles county community of Valencia. Read more>>

Singapore-Listed Trust Buys 9 Aussie Warehouses for A$177.6M

Singapore-listed Cache Logistics Trust said it has agreed to acquire a portfolio of nine logistics properties located in the Australian states of Victoria, New South Wales and Queensland for A$177.6 million (S$188.3 million).

Including stamp duties and other expenses, the total acquisition cost will amount to A$191 million (S$203 million). With an initial net property yield of 6.4 per cent, this portfolio of nine properties span 142,103 sq m (1.53 million sq ft) in gross lettable area. Read more>>

Condo Complex on SG’s East Coast Hopes for S$288M Sale

Katong Park Towers has been put up for collective sale with a reserve price of S$288 million or about S$1,165 per square foot per plot ratio, according to Cushman & Wakefield, the appointed agent for the property.

The minimal development charge for the site is about S$5.6 million for the additional 10 per cent bonus balcony and an estimated lease upgrading premium of some S$51 million, Christina Sim, director of capital markets at Cushman & Wakefield, said on January 31^st. Read more>>

Mixed-Use Site Near Tanjong Pagar in Singapore Up for S$270M Sale

Chinatown Plaza near Singapore’s Tanjong Pagar MTR station has been put up for a collective sale with an asking price of S$270 million, according to the property’s marketing agent, Edmund Tie & Company.

The asking price equates to S$1,989 per square foot per plot ratio (psf ppr) of potential gross floor area with no development charge payable. The tender exercise will close at 12pm on March 15. Read more>>

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