Frasers Lands Green Loan for Singapore Tower and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Singapore-based Frasers Property refinances a large loan coming due next month, and Hong Kong investor Eric Chu tries to dump assets in a weak market. Also making the cut are developers on the hook for billions owed to Chinese cities and Evergrande’s purported improvements to internal controls.

Frasers Property Secures Refinancing for $800M Green Loan

Singapore-listed Frasers Property has secured a S$1.08 billion ($800 million) five-year green term loan club facility to refinance its maturing term loan facility, due in September, for Frasers Tower.

The green loan received strong support from a consortium of seven banks, the group announced Tuesday. Frasers Tower is a 38-storey Grade A commercial building on Cecil Street in Singapore’s central business district. Read more>>

Hong Kong Investor Dumping Properties After Vietnamese Wife Arrested

A Hong Kong businessman whose wife was arrested in Vietnam has emerged as the latest desperate seller in the city’s increasingly turbulent property market.

Eric Chu is offloading properties ranging from a hotel to luxury apartments in Hong Kong, sometimes at a significant loss, after his Vietnamese wife became embroiled in one of the most high-profile scandals in the Southeast Asian nation. Read more>>

Chinese Property Firms Owed Billions by Cities: Report

Local governments in some Chinese cities owe developers RMB 1 billion to 2 billion ($140 million to $270 million) each in unpaid bills, according to a local media report, with pressure building on the authorities to pay their debt.

The outstanding amounts owed to the property firms include tax rebates and promised reimbursement of land sale fees, Economic Observer reported late Monday, citing unidentified executives at developers. Read more>>

Evergrande Says Improved Internal Controls May Address Listing Rules

Embattled developer China Evergrande said Monday that it was confident its internal controls and processes had improved and could meet the listing rules of the Hong Kong stock exchange.

Trading in the company’s shares was suspended on 21 March last year after it got sucked into a debt crisis. The company said trading will remain suspended until further notice. Read more>>

Sunac Tumbles to Become Hong Kong Penny Stock as Woes Deepen

Sunac China Holdings joined fellow developer Country Garden Holdings to become a penny stock after warning of a $2 billion net loss for the first half.

Shares of the Chinese builder slumped 13 percent in Hong Kong on Monday to HK$0.97 ($0.12), closing below HK$1 for the first time. After a 79 percent year-to-date decline, Sunac’s market value has shrunk to just $675 million, a fraction of its peak at $28 billion. Read more>>

Country Garden: Why a Default Isn’t the Worst Possible News for the Developer

While the cash crisis at Country Garden Holdings has stirred a range of concerns — about the developer’s future, other firms following suit and contagion risk — a default is not the end of the world, restructuring and property analysts said.

Once China’s biggest property firm, Country Garden is on the brink of default after missing two offshore coupon payments of $22.5 million earlier this month. Whether it can make these payments within a 30-day grace period, and repay on time the rest of its loans and coupons due next month, will determine whether the developer is truly in default. Read more>>

Rental Curbs, S$14,000 Income Cap on Resale Buyers for ‘HDB Plus’ Flats

The message put out with the introduction of Singapore’s new public housing model was clear: HDB flats are to be reserved and appropriately priced for those looking for a home to live in, not to invest in, and not to flip for quick capital gains.

An income cap of S$14,000 ($10,330) a month placed on resale buyers, that stays in place for subsequent owners. A ban on renting out the whole flat. A 30-month waiting period for private homeowners looking to buy a Plus flat after they sell their property — twice the time that such owners are currently required to wait out to buy a standard resale flat today. Read more>>

IWG Singapore Opens 25th Workspace in City-State at Harbourfront Tower 2

Flexible office provider IWG recently opened its 25th centre in Singapore at HarbourFront Tower Two. The new space was launched in a partnership with local investment firm Seraphim Holdings.

The new centre will be managed under IWG’s Regus brand. IWG’s other brands in Singapore are Signature, Spaces and No18. Read more>>

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