PAG, Carlyle Scale Back Latest Buyout Funds and More Asia Real Estate Headlines

Worsening relations between China and the United States lead today’s headline roundup as geopolitics appear to be denting trans-Pacific investment fundraising with a pair of the world’s largest private equity firms scaling back their latest buyout strategies. Also in the news, Alibaba hopes to bring its groceries to market on Hong Kong’s stock exchange and Guangzhou’s Yuexiu Property gets a cool reception from investors for its planned rights issue.

PAG, Carlyle Asia Funds Said Hobbled by US-China Tensions

PAG and Carlyle Group Inc, alternative asset managers seeking to raise almost $9 billion each for Asian private equity deals, are falling victim to an increasingly contentious political climate between the US and China, people familiar with the matter said.

PAG, Asia’s biggest multi-asset manager, has slashed its target to $6 billion, while Carlyle has pushed back closing its new fund to April after originally seeking to get it done last year, the people said, asking not to be identified as they’re not allowed to discuss fundraising. Carlyle is targeting a first close at 35 percent of its $8.5 billion target this month. A successful fundraising in previous years would typically require achieving 50% of the target in an initial closing. Read more>>

Alibaba Tests Market for Grocery Division IPO

Freshippo, the Alibaba Group Holding Ltd. grocery chain known for selling cooked lobsters and grouper freshly chosen from fish-tanks in the store, has started preparations for a Hong Kong initial public offering, people familiar with the matter said.

The company is working with banks including China International Capital Corp. and Morgan Stanley to help prepare for the first-time share sale of the unit, known in Chinese as Hema, the people said. The plan is still at an early stage and a listing might not happen until next year or later, said one of the people, who asked not to be identified as the information is private. Read more>>

Guangzhou Yuexiu Shares Sink on News of $1.1B Rights Issue

Chinese developer Yuexiu Property Company Ltd. shares tumbled after the company said it plans to raise HK$8.36 billion ($1.1 billion) in a rights issue.

The Guangzhou-based builder proposed to issue 929 million rights shares at HK$9 apiece on the basis of 30 for every 100 existing shares, according to a statement to Hong Kong stock exchange. The shares sank as much as 18 percent to HK$10.28, the biggest drop since 2001. Read more>>

CDL Marketing 62 Strata Industrial Units in Singapore

A portfolio of 62 freehold strata industrial units in Citilink Warehouse Complex has been put up for sale en masse by City Developments Ltd (CDL) via an expression of interest (EOI) exercise. The properties are going for an indicative price of S$103 million, which translates to about S$997 per square foot over the total strata area that is for sale.

The 62 units range from about 947.2 to 2,884.7 square feet in Block 102E, with a combined strata area of about 103,301 square feet. The units represent about a 34 percent share of the development, said exclusive marketing agent Cushman & Wakefield on Thursday. Read more>>

Mainland Stock Exchanges Blast Evergrande Management

China’s two main stock exchanges have taken the China Evergrande group to task for breaching its listing obligations, after its major mainland property development unit failed to publish its accounts in time for shareholders and outside investors.

The onshore unit, Hengda Real Estate Group, did not published its annual report for 2021 by the April 30 deadline last year, prompting the Shanghai and Shenzhen bourse operators to chastise the developer and two of its top executives, according to filings late on Wednesday. Read more>>

Lakeside Towers En Bloc Sale Flops in Singapore

Owners at Jurong condominium Lakeside Towers will move into private treaty negotiations with potential buyers, following the closing of the collective sale tender on Wednesday. There were formal submissions and expressions of interest from local developers, but even the “best offer” fell short of the reserve price, sole marketing agent JLL told The Business Times.

Located a stone’s throw from Jurong Lake Gardens, near the upcoming Jurong Lake District (JLD), the 144-unit condominium was put up for sale at S$350 million on Feb 9. This is 14.8 percent higher than its 2018 reserve price of S$305 million. Read more>>

Credit Suisse Loans to Wanda, Vingroup Giving UBS Headaches

UBS Group AG’s top management has been busy after the bank’s shotgun marriage with Credit Suisse Group AG. Chief Executive Officer Sergio Ermotti is making big hiring and firing decisions, while wealth management head Iqbal Khan flies around the world to convince Credit Suisse’s rich clients to stay. Amid its rush to close the takeover as soon as late April, the Swiss bank also needs to make more mundane business decisions, such as what to do with some of the demanding and problematic corporate borrowers that come with the deal.

Across emerging Asia, Credit Suisse has built up an aggressive corporate loan book that UBS needs to sift through. The stricken bank has been backing Chinese mall operator Dalian Wanda Group’s ambitious turnaround plan and Vietnamese real estate giant Vingroup’s electric-vehicle manufacturing dream, among others. Read more>>

Former Beijing Developer Guo Wengui Denied Bail in US Fraud Trial

A self-exiled Chinese businessman charged in a $1 billion fraud case will remain behind bars after a federal judge rejected a proposed $25 million bail package Thursday, saying there was clear and convincing evidence he would remain an economic threat and a flight risk if he were freed.

Judge Analisa Torres said in a written order that she didn’t trust that Guo Wengui would obey court orders if released, even with strict bail conditions including GPS monitoring and a 24-hour guard. She noted that he faces a maximum sentence of over 100 years in prison if convicted. She said Guo has continued to promote fraudulent investment opportunities even after funds were seized from his businesses last year. Read more>>

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