Sogo’s Tsim Sha Tsui Branch Closing Down in March and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Hong Kong’s retail slump claims another victim as Sogo prepares to close its Tsim Sha Tsui store after 18 years in business, and top mainland developer Country Garden reportedly secures funds to avert a January default.

Sogo to Close Tsim Sha Tsui Department Store After 18 Years

The Sogo department store in Hong Kong’s Tsim Sha Tsui district is set to close in March after 18 years, making it the latest prominent retail outlet to cease operations amid a retail slump that began in 2019.

The store is holding a “closing super sale” event in the first three weeks of January. A widely circulated brochure and a post on the Japanese-style luxury department store’s app announced discounts of as much as 50 percent on a wide array of items in the beauty, fashion, bedding, health and food categories. Read more>>

Country Garden Said to Have Secured Funds for January Dollar Bonds

Country Garden Holdings has told some investors that it has prepared funds to repay dollar debt due in January, according to people familiar with the matter, after a series of fundraising efforts.

The nearly $700 million in dollar bond principal and coupons coming due is the biggest repayment test in months faced by China’s top developer, according to Bloomberg-compiled data. The builder has a $617 million principal payment due on 17 January, as well as six coupons due in coming weeks. Read more>>

Fosun’s Key Subsidiary Is Close to Securing a $1.8 Billion Loan

A key subsidiary of Fosun International, one of China’s largest private conglomerates, is close to securing a long-awaited credit line from some of the nation’s biggest state-owned banks, people familiar with the matter said.

Shanghai Fosun High Technology Group is in advanced talks for an onshore loan totalling RMB 12 billion ($1.8 billion) with lenders led by Industrial and Commercial Bank of China, according to the people, who asked not to be identified. Read more>>

Singapore’s Manhattan House Up for Collective Sale at S$280M

Manhattan House near Singapore’s Chinatown has been launched for collective sale by tender with a S$280 million ($210.4 million) reserve price, sole marketing agent JLL said Tuesday.

This implies a land rate of about S$1,715 per square foot per plot ratio at a base gross plot ratio of 5.03875, after factoring in the lease top-up premium and a land betterment charge. Read more>>

Morgan Stanley Joins Goldman in Bullish Call on Chinese Assets

Morgan Stanley followed Goldman Sachs in ramping up bullish bets on Chinese assets as the swift dismantling of COVID-zero policies boosts the nation’s growth outlook.

The bank sees the yuan advancing to 6.65 per dollar by year-end, which amounts to a 1.8 percent gain from current levels, strategists including Laura Wang wrote in a 9 January note. Read more>>

Hong Kong Faces New-Home Glut in 2023

Hong Kong property developers are putting the finishing touches on the biggest stockpile of new homes in nearly two decades, a potential glut that could weigh down prices in 2023 as the market tries to pick up steam after the worst year for new-home sales in nine years.

As many as 119 new private housing projects could be ready for launch this year, with a total of 40,291 units, according to Ricacorp Properties. Read more>>

Dozens of Singapore Property Launches in Months Ahead

More new private property developments are expected in Singapore this year, with one — Sceneca Residence — already open for preview since 1 January.

After 21 projects were launched last year, analysts predict that at least 30 and perhaps more than 40 could be launched this year, adding 10,000 to 12,000 new homes to the market. Read more>>

APAC Realty to Acquire Further 22% of ERA Vietnam, Upping Stake to 60%

Property services provider APAC Realty is acquiring an additional 22 percent stake in ERA Vietnam and Eurocapital as it seeks to grow its business in Vietnam.

The move will take its shareholding in each of the companies to 60 percent. 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.