Elan Paradise Nirvana Country commercial project in Gurugram
Asia’s real estate markets start out the week with Hong Kong private equity firm PAG upping its India investments and a set of unhappy Singapore homeowners blocking an en-bloc sale. Also in the news, a suit by BNY Mellon is leading to the wind up of a mainland developer and Singapore is running out of homes to sell.
PAG Commits Additional $60M to Developer Elan India
India’s Elan Group has received a $60 million follow-on investment from Hong Kong-based private equity firm PAG, according to statements by the developer’s leadership as cited in the India media.
PAG’s new commitment will be to support current debt and accelerate the development of Elan’s latest luxury housing project, “The Presidential,” in Gurugram. The Hong Kong firm led by financier Shan Weijian had invested $50 million with Elan in August, Mingtiandi reported at the time. Read More>>
Chuan Park Project Sale Blocked by Unhappy Homeowners
The collective sale of Chuan Park was met with a stop order by Singapore’s Strata Titles Board (STB) on Friday, after a group of six minority owners did not withdraw their objections to the transaction.
The stop order came after three rounds of mediation. The collective sale committee (CSC) representing the majority owners has 14 days to apply to the High Court to seek approval for the sale. Read more>>
China’s Sinic Holdings Ordered to Wind Up After BNY Mellon Suit
Chinese builder Sinic Holdings Group Co. has received a court order to be wound up after the firm was sued over a missed offshore bond payment.
The order was issued during a Hong Kong court hearing Wednesday morning. Bank of New York Mellon’s London branch filed the winding-up petition against Sinic, according to an August-dated court record. The case was linked to a private bond, the builder said in an exchange filing. Read more>>
Singapore’s Stock of Unsold Homes Hits 15-Year Low
Singapore’s stock of unsold private housing under construction has been dropping for nine straight quarters to where it now stands at a 15-year low and is not expected to increase in the new year.
Based on an independent study, the stock of unsold private housing units has been on the decline from the second quarter of 2020 to through the third quarter of this year, with the city-state now having available just 5,320 new homes. With remaining strong and developers balking at high land and construction costs, private housing prices are predicted to remain elevated in 2023. Read more>>
SGX-Listed EC World REIT Reassures Investors After Exchange Queries
EC World REIT has released a slew of responses to investor questions ahead of its 16 Dec extraordinary general meeting, which was called to ask shareholders to approve the divestment of two of the REIT’s properties in China.
The REIT’s manager will divest its indirect interests in Stage 1 Properties of Bei Gang Logistics and Chongxian Port Logistics for a consideration of RMB 1.37 billion ($196.4 million). The divestment comes after the REIT faced queries from the Singapore Exchange regarding efforts to refinance its offshore loans in June. Read more>>
Hong Kong Bank Rolls Out Buy-Now-Pay-Later Scheme for New Homes
The popular buy now, pay later (BNPL) business model has reached the Hong Kong property market, with virtual lender Fusion Bank and Midland Realty teaming up to offer the scheme to Hongkongers.
Under the scheme, tenants can apply to Fusion Bank for loans for monthly rent payments. One-off loans can then be used for lump-sum prepayment of leases. It is expected that on the basis of sure payments to landlords, tenants can negotiate for better rents, as the landlords will not have to worry about missed payments. Read more>>
China New Home Sales Improve After Policy Reversals
New home sales in 16 Chinese cities picked up last week, reflecting an improvement in consumer sentiment due to government support policies and the easing of Covid-19 restrictions, China Index Academy said on Monday (Dec 12).
New home sales measured by floor area in 16 Chinese cities including Beijing and Shenzhen rose 4.9 per cent for December 4 to 10, compared with the week before, up from a 0.1 per cent gain the previous week, the research firm said. Read more>>
China Property Stress Far From Over
China’s property stocks are starting to enjoy the country’s reopening rally. But a closer look at the nation’s home sales data provide a reality check that the recovery will likely be a slow process.
China property stocks and their bonds have been rallying with mainland property shares still trading deep below book value, at only 0.2 times price-to-book. However, falling demand for new homes in China has seen prices decline for 14 consecutive months, with market data showing the sector is still in distress. Read more>>
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