Business looked so promising at Zhongliang’s 2019 IPO
In today’s roundup of regional news headlines, Zhongliang Holdings has become the latest Chinese developer to seek extension for debt repayment as the property downturn persists in China and investors have deserted the Hong Kong office sector during the first four months of 2022. Also in the news is a decline in home sales for Chinese developers during April and Indonesian developer Sinar Mas Land is teaming up with a few friends to launch a property technology and smart-city solutions fund.
Zhongliang Holdings Seeks Extension for $729M in Bonds
Chinese developer Zhongliang Holdings (2772.HK) is scrambling to secure bondholder approval to extend the repayment on notes worth $729 million ahead of a key deadline next week, joining peers desperate to avoid offshore debt defaults.
The Shanghai-based company has struggled to sell enough houses amid a sustained property downturn in China or secure refinancing to pay investors who are due full redemption on their bonds in May and July. Read more>>
Foreign Investors Snub Hong Kong Offices Early in 2022: RCA
The office sector in Hong Kong failed to secure a single cross-border investment in the first four months of 2022 as the city continues to feel the impacts of the COVID-19 pandemic and persistent social unrest, according to Real Capital Analytics.
The sector recorded a mere $200 million in total investment over the period. This was a lower amount than the hotel, industrial and retail segments — the first time this has happened — according to New York-based RCA, which monitors deals worth at least $10 million. Read more>>
April Sales for 13 of China’s Largest Developers Drop 52%
The aggregate sales for 13 of China’s largest real estate developers, including China Vanke, Country Garden and Sunac China, fell 52 percent year-over-year in April to RMB 203 billion ($29.91 billion) as the country’s property sector continues to feel the impacts of the COVID-19 pandemic.
From January to April, sales at these companies tumbled 41 percent to RMB 899.8 billion. Only one of the developers had sales decline by less than 30 percent and eight experienced a slump of over 40 percent during the four-month period. Read more>>
Frasers Property H1 Profit Falls 42.6% as Revenue Grows 7.5%
Singapore-based Frasers Property recorded a 42.6 percent year-on-year decline in its profit after tax and minority interests for the six months ended 31 March to S$158.2 million ($113.4 million) as its revenue for the comparable period jumped 7.5 percent to S$1.68 billion.
The decline in earnings is because of a one-off item in the developer’s accounts for the 12 months to September. A portfolio of industrial and logistics properties in Australia and Europe was reclassified from properties held for sale to investment properties, which is in line with the property group’s strategy to grow its industrial and logistics asset base. Read more>>
Sinar Mas Land, Partners Launch Proptech, Smart-City Fund
Indonesian property developer Sinar Mas Land has launched an early-stage fund for startups offering property technology and smart-city solutions.
The company will manage the fund alongside VC firms East Ventures and Redbadge Pacific, as well as infrastructure and investment firm Prasetia Dwidharma. South Korean construction and development company GS E&C will also be part of the fund as an investor and strategic partner. Read more>>
Local Tycoon Buys Hotel, Shophouses in Singapore for $69.8M
Singaporean tycoon Lim Chin Huat has acquired a 45-room hotel and three shophouses in the Lion City for S$97.4 million ($69.8 million).
Straits Construction sold the shophouses at 47, 49 and 51 Kreta Ayer Road for more than S$44 million. Hilltop Capital previously owned the hotel at 12, 14 and 16 Teck Lim Road. Read more>>
Colliers Reports 1% Uptick in Singapore Industrial Rents in Q1
Industrial rents in Singapore rose 1 percent in the first three months of 2022 compared with the previous quarter, marking the sixth consecutive quarter of rental hike, according to a Colliers report.
Prices in the industrial segment also performed well, climbing 3.1 percent during the comparable period, marking the strongest quarterly price growth since the first quarter of 2014. “Due to previous construction delays, most of the industrial supply pipeline is coming onstream this year, with the majority being factories,” Colliers said. Read more>>
Nobel Prize Awardees Offered $1.5M in Housing Aid in Wuxi
The city of Wuxi in China is offering Nobel Prize winners up to RMB 10 million ($1.5 million) in housing subsidies in an effort to lure top talents to the country as it moves towards innovation-driven development.
In recent years, big cities across the mainland, including rising tech hubs in its interior, have rolled out incentives such as tax cuts to university graduates in a fierce grab for talent to upgrade their respective economies. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply